Green energy bill passes through Oregon House

A bill to require the state’s largest electric utilities to draw 25 percent of their power from renewable resources like the wind, sun and waves by 2025 won approval Wednesday in the Oregon House.

Supporters said the proposal sets the stage for the state to embark on one of the nation’s most aggressive renewable energy programs that will generate income for rural economies and place Oregon at the forefront of the emerging clean energy economy.

“This is a complex bill that sets a long-term direction for our energy policy,” said Rep. Jackie Dingfelder, D-Portland, a chief sponsor of the bill. “This bill is about taking control of our energy future and using homegrown renewable resources to do so.”

Opponents say they support efforts to reduce the state’s dependence on foreign oil, but are against Senate Bill 838 because it doesn’t offer enough consumer protections.

The bill allows utilities to increase rates so they can invest in renewable energy sources, which are generally more expensive than traditional fossil fuels such as natural gas and coal. But the actual economic cost to consumers is still unclear.

“I’m not challenging the nucleus of this policy… I just want to have a backstop for the ratepayers,” said Rep. Chuck Burley, R-Bend, who voted against the proposal. “We have asked repeatedly what is it going to cost. The press has asked what it is going to cost. We don’t know.”

While the potential cost to consumers is unclear, supporters say the bill could be a boon to rural parts of the state as utilities look to expand wind and geothermal production across Oregon.

“Oregon produces almost no fossil fuel but it has current and potential renewable energies in abundance,” said Rep. Greg Macpherson, D-Lake Oswego. “[The bill] is saying let’s buy here in Oregon from our farmers, our timber owners and our other producers of renewable [energy].”

The proposal requires the state’s largest utilities to draw 5 percent of their power from renewable sources of energy-like waves, sunlight and wood-by 2010. The requirements would increase incrementally until the figure is 25 percent in 2025.

Medium and smaller-sized utilities must meet lower standards.

Opponents included some Republicans and Rep. Mike Schauffler, D-Happy Valley, who is the only Democrat to oppose the measure. They said they were concerned about the potential rate hikes to customers and asked the body to consider further changes.

Burley said he wanted to insert a rate cap into the bill to protect electricity consumers from utility rate hikes above 2 percent.

The current bill stipulates that if utilities have cost increases greater than 4 percent they are not required to meet the renewable standards, but critics said the cap was too high.

Oregon’s two largest utilities, Portland General Electric and PacifiCorp supported the bill. At least 23 other states have set standards that utilities draw certain amounts of electricity from renewable energy sources.

The proposal was vigorously opposed by a coterie of industry groups and some of Oregon’s largest employers who worried the mandates will result in higher electricity rates. Intel–a company that boasts about its commitment to the environment–opposed the initiative.

But some lawmakers said renewable energy is a good deal for ratepayers.

“Even if it is slightly more expensive, it stabilizes rates,” Dingfelder said.

The Portland Democrat said none of the other states that have passed renewable mandates have experienced significant rate increases.