The Future of the Oregon Department of Energy

CUB recently testified in support of a bill that would change the structure and focus of the Oregon Department of Energy. The bill – HB 2020 – calls for five key changes:

1. Change the name of the Oregon Department of Energy to Oregon Department of Energy and Climate;
2. Create an Oregon Energy and Climate Board as that Department’s oversight and advisory group;
3. Establish an Interagency Climate Coordinating Committee;
4. Develop a Climate Census Report; and
5. Abolish the existing Global Warming Commission.

First, some background…

During 2016, the Joint Interim Committee on Department of Energy Oversight met 10 times for a comprehensive review of the functions and future of Oregon’s only state agency with a sole focus on energy. Controversy regarding ODOE administration of certain renewable energy tax credit programs triggered this legislative review, but the oversight committee learned about ODOE’s important history and functions.

Created in 1975, the Oregon Department of Energy (ODOE) has four divisions:

• Energy Development Services
• Energy Facility Siting
• Energy Planning and Innovation
• Nuclear Safety and Emergency Preparedness

By the final hearing on December 13, 2016, oversight committee members reached consensus to retain ODOE as an independent state agency. The group also agreed on several recommendations for changes, one of which would move some financial incentive programs to a different state agency. However, the committee did not reach consensus on expanding the agency’s scope to address climate change.

For more information, check out this report authored by the oversight committee’s co-chairs, Representative Paul Holvey and Senator Lee Beyer. You can also see alternative recommendations prepared by Senator Alan Olsen here.

Now back to the March 27 hearing at which CUB offered brief testimony. While not the only bill introduced from the oversight committee’s recommendations, Representative Holvey’s HB 2020 caught CUB’s attention because of its climate change focus. We also appreciate the creation of the Oregon Energy and Climate Board to advise the re-named Oregon Department of Energy and Climate.

CUB’s testimony focused on four key points:

1. CUB applauds the Department’s mission to reinforce the connection between energy and climate;
2. Provision 4 in Section 3 achieves an important good-governance goal by avoiding undue conflicts of interest;
3. Provision 3c in Section 3 ensures a residential energy presence on the Board;
4. It is prudent for the Board to operate in an advisory role and, therefore, not establish budgets or unilaterally develop policy.

Stay tuned for updates on HB 2020 and/or other Oregon Department of Energy reforms.

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