Energy in Oregon

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. ​

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.
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​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. ​​

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​​LECPPP Interactive Website​

​​ LECPPP Conservation Project Application (Step-by-Step Instructions)

2024 Fee Increase Memo​

 

20​21 Legislative Updates​

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​ ​Contact ODOE:

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  503-378-4040
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  800-221-8035
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  askenergy@oregon.gov

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