Background

In 2023, HB 3630 directed the Oregon Department of Energy to develop a state energy strategy and to submit a final report to the Governor and Legislature by November 1, 2025.

As outlined in the bill, the report must:

(1) summarize the state energy strategy and pathways to achieving the state’s energy policy objectives;

(2) describe the department’s engagement process and how perspectives informed the energy strategy; and

(3) recommend legislation or changes to policy necessary to implement the state energy strategy.

This is the first Oregon Energy Strategy. It has been informed by technical analysis, policy evaluation, and robust engagement, and serves to guide Oregon in advancing toward its energy policy objectives of clean, reliable, and affordable energy.

The Oregon Energy Strategy has been developed during a time of significant change, including changing federal policies and priorities, a limited state budget, increased incidences of extreme weather and wildfires, rapidly growing electric loads, and continuing innovations in clean energy technologies. The energy strategy endeavors to provide long-term guidance and near-term solutions to advance energy policy objectives in this context, and to encourage capturing synergies between energy policy objectives and related areas including resilience, public health, and economic growth.

HB 3630 directs ODOE to periodically update the energy strategy. ODOE recommends updating the energy strategy every four years to track progress, account for changes and developments that arise, and to provide opportunities to learn new information and evolve the strategy to meet Oregon’s need as they change over time.

You can view the Oregon Energy Strategy in its entirety, read a summary, or use this website to explore the strategy.

Fifty years ago, Oregon leaders created the Oregon Department of Energy following the oil crisis of the early 1970s. The statute creating the agency noted that continued growth and demand for non-renewable energy poses a serious and immediate – and future – problem... It’s only fitting that now, after 50 years serving Oregon, we embrace our origins and proudly present a new state energy strategy that will serve as a north star for making decisions and taking action to achieve an affordable, equitable, and reliable clean energy future.
— ODOE Director Janine Benner

Why an Energy Strategy?

Energy is the foundation of modern life. It powers cars, heats homes, and supports our economy. Building and maintaining energy infrastructure requires investment, and that infrastructure affects local communities, cultural resources, and the environment. The energy sector is responsible for most of Oregon’s greenhouse gas emissions, which negatively affect air quality and public health. These effects have disproportionately impacted some more than others — environmental justice communities in particular — and continue to do so today.

The Strategy’s Pieces

Making the Strategy: Engagement

The Oregon Energy Strategy has been a major undertaking and wouldn’t have been possible without the expertise and guidance from our consulting partners, the Clean Energy Transition Institute and Kearns & West; government-to-government engagement with Oregon’s nine federally recognized Tribes; our partner state agencies; members of our Advisory Group; several policy and technical working groups; and the Oregonians who joined us for webinars and information sessions. Feedback received throughout the process, including during the draft strategy review period in August-September 2025, helped finalize the energy strategy.

Nine Federally Recognized Tribes: Feedback and Themes emphasizes the importance of coordination and engagement with Tribes in Oregon about energy. It summarizes key themes that ODOE heard, which informed development of pathways, policies, and actions in the energy strategy.

The Equity and Justice Framework for Decision-making and Program Implementation is meant to inform how legislators, agencies, and implementers can create just and equitable outcomes when developing energy policies, actions, and metrics. The framework serves to guide meaningful involvement with those who have been historically and are currently excluded from decision-making processes to ensure Oregon’s energy policies meet the needs of specific communities. The Framework is referenced throughout the report to demonstrate ways to apply it across the pathways, policies, and actions.

Pathways and Policies

The five pathways outlined in the Oregon Energy Strategy – energy efficiency, electrification, clean electricity, low-carbon fuels, and resilience – may not seem surprising. Oregon has long been a leader in these areas, from adopting advanced building energy codes to supporting transportation electrification to developing clean energy resources. Yet until now, Oregon has not had a clear vision for how these pathways can come together to achieve our bold energy and climate objectives.

The pathways set the tone as guiding principles, and a set of policy recommendations for each pathway outlines steps Oregon can take to make progress toward a clean energy transition. We know the cheapest and best energy resource is energy efficiency, so one recommendation is to improve efficiency and conservation in buildings and prioritize households with high energy burden. We also recommend expanding efforts to electrify the transportation sector – the largest contributor of greenhouse gas emissions – while removing barriers to ensure all Oregonians can participate. As the state’s energy demand grows, we want it to be as clean and renewable as possible, with enough infrastructure to move energy where it needs to be. We need infrastructure not just for electricity but also for low-carbon fuels, which will be necessary to ensure that the hardest-to-electrify sectors can be part of the clean energy transition. As Oregon’s energy system decarbonizes, it’s also important to fund resilience measures in communities to strengthen Oregon’s ability to adapt to climate change and mitigate other risks like a Cascadia Subduction Zone earthquake. In developing the Oregon Energy Strategy policies and potential actions, we asked the tough questions – including who benefits and how we ensure equity and justice are at the heart of decisions, what could hinder progress, how to balance land use and development, the cost of inaction, and opportunities to bolster the state’s economy and energy workforce.

Each pathway is accompanied by several policies to deploy the pathways. Policies are directional, and along with pathways are meant to guide actions and decisions over time.

Legislative and Policy Actions

The actions build on existing policy frameworks, identify barriers, and provide a foundation for continued progress over time. Each action advances one or more pathways and policies, and calls for application of one or more approaches from the Equity and Justice Framework.

Modeling and Technical Analysis

The modeling conducted by the consultants to the Oregon Energy Strategy examined potential pathways to reach Oregon’s energy and climate objectives while maintaining reliability across the energy system. ODOE worked with consultants to develop the model using an analysis of existing policies, energy and integrated resource plans, energy-related studies and data analysis, and state energy policy objectives.

The modeling divided energy demand into sectors. The following are some examples of the types of demand that falls within each sector. Transportation includes things like cars, trucks, ships, and planes. Residential refers to energy use in homes, including for lighting, heating, cooling, and cooking. Industry and agriculture covers areas like manufacturing and energy used to power tractors or greenhouses. The Commercial sector includes shops, laundromats, and distribution centers. Tech loads include data centers and chip manufacturing. They can be considered commercial or industrial, but here are broken out due to their large energy demand.