2024 Program Update
Due to a variety of factors, including rising costs and less participation than in earlier years, the current two percent program administration fee is not fully recovering the Oregon Department of Energy's costs per statutory requirements. To bring the program back into statutory compliance, ODOE will
raise the program fee to four percent on July 1, 2024.
What is the LECPPP?
Senate Bill 1149, adopted
in 1999, directed Oregon's two largest utilities, Portland General Electric and Pacific Power,
to collect a public purpose charge from
their customers to fund energy conservation and renewable projects in
the state. Large
electric consumer sites that used over 8,760,000 kWh in the prior year may be
eligible for the Large Electric Consumer Public Purpose Program, also known as
the Self-Direct Program. Approved sites may
self-direct the renewable portion of their public purpose charge and cost-effective
energy efficiency funded through rates, rather than pay the utility
directly. Cost-effective energy efficiency recovered through rates has essentially replaced the conservation portion of the public purpose charge, which no longer exists effective January 1, 2022 after House Bill 3141 was passed by the Oregon Legislature during the 2021 session.How it Works
The
Oregon Department of Energy reviews applications and approves sites that meet
eligibility criteria to become Self-Direct consumers. Certified sites can
submit energy efficiency and renewable project applications including Green
Tags (REC) contracts to ODOE through the interactive
LECPPP website. Once ODOE receives
all required deliverables, including the program administration fee, staff
review applications and pre-certify eligible energy efficiency and renewable
project applications and approve Green Tags contract applications. Sites then
spend their own funds to build pre-certified projects. Once the project is
complete, they submit an application for credit to ODOE. ODOE reviews and
approves the eligible project costs, which includes the program fee. Certified
project costs add to the energy efficiency or renewable credit balance, and the
credits do not expire.
Each month when a site has an energy efficiency or renewable credit balance,
they can offset the monthly cost-effective energy efficiency amount
included in rates and the renewable portion of the Public Purpose Charge,
meaning they do not pay the utility that portion of the PPC. The available
credit balance is reduced by the monthly energy efficiency and renewable offset
amount. Funds spent on certified energy efficiency projects, Green Tags (also
known as Renewable Energy Certificates), distribution system-connected
technologies projects, and the associated program fee increase the site credit
balances while monthly offsets reduce them.