CUB Lobby Day 2011

On Wednesday, May 4 CUB board members, staff, interns and volunteers headed down to the state capitol to speak to our representatives about three important issues currently in the Oregon legislature. CUB Lobby Day is a way for the staff and board of CUB to meet their legislative representatives, to better understand CUB’s role in Oregon’s policy making process and to help our representatives better understand CUB’s position on bills that are making their way through the current session.

CUB folks were able to meet with over 20 state senators, representatives and legislative staffers from our districts and speak to them about some important bills that CUB is endorsing.

Senate Bill 967 – Utility Tax Law Reform

This bill reforms existing statutes governing adjustment of public utility rates to account for taxes paid by electricity and natural gas utilities. This bill will override SB 408, which passed in 2005 with CUB’s support. Here is CUB’s analysis of the bill from 2005. Unfortunately, the implementation of SB 408 has proven to be incredibly complex and the “true-up” adjustments—originally intended to make sure that companies are not overcharging customers for taxes—are causing utilities to add surcharges to utility bills that are unrelated to phantom taxes. In April, we published a detailed blog digging into why CUB Supports Utility Tax Law Reform.

The representatives we spoke with were very interested in discussing CUB’s position on the bill. Representative Mitch Greenlick from District 18 requested more information from CUB, emphasizing that he is weary of any bill that is too complicated for people to understand. CUB is making sure to follow up with a clear explanation of our support for SB 967 so that we can ensure it passes in the house.

SB 967 is supported by CUB, state regulators, utilities and industrial customers because all parties agree that the current true-up mechanism has unwanted, unintended consequences. CUB believes that we can get rid of the mandate of an annual true up but still retain the original goal of SB 408 – ensuring that taxes paid by consumers reflect the amount of taxes that a utility pays to state and federal governments. SB 967 passed the House Business and Labor Committee, which is responsible for preparing it for the House floor vote. The bill already passed in the Senate unanimously.

Senate Bill 863 – Utility Bill Assistance for Low Income Families

This bill is a temporary fix to ensure that low-income families can receive utility bill payment assistance during hard economic times. Oregon faces losses up to $20 million in federal funds to support utility bill assistance, and this legislation would address those losses. The bill requires that electric utilities collect an additional $5 million per year for two years from residential ratepayers in order to support funds that are necessary for low-income Oregonians to keep their lights and heat on over the winter.

SB 863 is only a two year temporary fix and an important measure to support during a time of high unemployment, reduced incomes and higher bills. The bill also requires appointment of electric utility representatives and CUB representatives to an advisory committee on energy in the state. In January, 2014, when the provision sunsets, CUB will work hard to find and promote a more sustainable solution.

SB 863 is currently in the Senate Finance and Revenue Committee. It already passed the Senate Business, Transportation and Economic Development committee unanimously.

House Bill 2960 – Cool Schools - Increased Energy Efficiency in Schools

On April 27, 2011 we posted an update about HB 2960 and outlined why CUB supports this important legislation. In summary, the Cool Schools bill requires the State Department of Energy to establish a pilot program and a clean energy deployment program that supports energy efficiency and clean energy projects in public schools. This bill is not based on establishing a new tax credit; instead, it enables school districts to utilize existing public purpose funds. The bill changes the Loan Offset Grant Fund to the Jobs Energy and Schools Fund. If passed, school districts will be able to apply for loans or grants for energy projects including weatherization, upgrades and retrofits to their school buildings.

Energy efficiency is the least cost energy that is available. Investments in energy efficiency reduce costs for the utility and all its customers, avoiding the need to generate more expensive power.  The Cool Schools proposal will not only benefit all utility customers by reducing costs, it will have the additional benefit of reducing the cost of heating our schools and allowing school districts to use that savings to improve education programs.  CUB strongly supports this bill and encourages our members, followers and partners to contact your representative to offer your support. To find your legislator’s contact information, you can go to: https://www.oregonlegislature.gov/findyourlegislator/leg-districts.html.

HB 2960 is currently in the Ways and Means committee.

Overall, CUB Lobby Day was a success and a great opportunity to talk to our representatives about the issues that are important to us, Lobby Day helps us, and you, understand the state legislative process and support CUB’s critical legislative efforts. We will make sure to keep you updated as the 2011 Legislative Session continues.

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