Legislative and Policy Actions
HB 3630 directs ODOE to recommend legislation or changes to policy necessary to implement the state energy strategy.11 The previous sections presented strategies and policies to align decisions with direction needed to meet our energy policy objectives. This section identifies near-term actions that build on existing policy frameworks, serve to overcome barriers, will lay a foundation for continued progress over time.
Oregon faces several immediate challenges that affect the state’s ability to meet its energy goals. These include:
Increasing demand for electricity at a pace and scale that threatens to potentially outstrip supply
A shift in federal funding and policy that has resulted in cuts to key programs and policies
Extreme weather events exacerbated by climate change
Erosion of federal support for social services
Economic uncertainty
These challenges will affect Oregon’s economy and state budget and require that near-term actions operate in a context of competing priorities and heightened uncertainty and risk.
In identifying actions, ODOE staff focused on actions needed to overcome near-term barriers to addressing our energy policy objectives. This work was informed by Tribal coordination and collaboration and by engagement with working groups, the Advisory Group, Inter-Agency Steering Group, and public forums. In identifying near-term priorities, and building on inputs from engagement, staff sought to answer the following questions:
Does the action address a critical near-term barrier to achieving one of the five strategies and related policies?
Might the action support longer-term needs to achieving the strategies and policies?
What are the benefits and risks of the action, accounting for both energy and non-energy considerations?
Does the action improve, worsen, or make no change to existing disparities. How can we address benefits and/or unintended consequences for environmental justice communities?
How would the action affect affordability and reliability in the state?
The recommended policy actions have been informed by engagement, technical analysis, and evaluation of existing policy frameworks and energy trends. This includes engagement with Tribes and with other state agencies, the Policy Working Groups, Advisory Group, public forums, and written comments. The technical analysis includes the energy strategy modeling and complementary analyses summarized earlier in this document. Evaluation of existing policies and trends was undertaken by ODOE staff and informed by resources and perspectives shared during public engagement and comment periods. Actions do not necessarily represent consensus among the Advisory Group or Working Groups, and there may be actions that members of these groups do not agree with.
The 42 near-term actions that ODOE recommends for consideration by the Governor’s office, legislators, and by state agencies. Actions are presented by sector (cross-cutting, transportation, buildings, industry, electricity, and fuels). Each sector begins with a description of the vision for that sector, near-term priorities, and longer-term outlook, followed by actions.
Each action advances one or more pathways and policies, and requires application of one or more actions from the equity and justice framework. To help see these connections, each action is followed by italicized headings identifying the pathways, policies, and equity and justice approaches that relate to that action.
Some actions will involve agencies advancing actions that are within their authority and resources. In others, implementation may require legislation to support agency resources or to create new programs, policies, or authorities.
Actions by Sector
Cross-Cutting Actions
These actions advance progress in more than one sector.
Transportation Actions
The transportation sector includes on-road vehicles like cars, trucks, and buses; industrial and agricultural vehicles and equipment; and modes such as aviation, marine shipping, and rail. It includes personal vehicles and public transportation, as well as infrastructure for active transportation, including sidewalks and dedicated bicycle lanes.
Buildings Actions
The buildings sector includes residential and commercial buildings. Within these designations are single- and multi-family homes, commercial buildings like stores, hotels, and warehouses, and public buildings like hospitals, schools, and universities.
Industrial Actions
Oregon’s industrial sector needs policy direction and support to comply with state decarbonization targets while remaining competitive in a world of rising energy costs.
Electricity Actions
Electricity actions cover investment in the electricity sector, from utility-scale generation, storage, transmission, and distribution to distributed renewable resources that include customer-sited generation and storage. They also include load flexibility as an increasingly important resource.
Low-Carbon Fuels Actions
Low-carbon fuels include both liquid fuels such as ethanol, renewable diesel, and biodiesel, primarily used for transportation, as well as gaseous fuels, such as renewable natural gas and hydrogen, used for heating, manufacturing, and other direct uses.
Implementing the Energy Strategy
The process of developing a state energy strategy will be complete with submission of this final report to the Governor and Legislature. However, this is just the beginning of the Oregon Energy Strategy.
Moving forward, decision-makers can now consider the policy and legislative actions outlined in Part Two and identify next steps. In some cases, this will involve agencies advancing actions that are within their authority and resources. In others, implementation may require legislation to support agency resources or to create new programs, policies, or authorities.
After the Oregon Energy Strategy is published, ODOE will work with partner agencies, the Governor’s office, and other interested parties to plan for how to advance these actions and determine next steps. In some cases, this will involve agencies advancing actions that are within their authority and resources. In others, implementation may require legislation to support agency resources or to create new programs, policies, or authorities. Recent developments have made certain actions more urgent. While ODOE considers each of the 42 actions important, the energy strategy includes a smaller set of actions that would contribute to addressing near term, immediate challenges such as reliability and affordability.
Actions Focused on Electricity System Reliability and Resilience
Electricity system reliability and resilience are increasingly urgent as load growth threatens to outpace construction of new resources and severe weather increasingly strains the electricity system. The power system has already come close to having insufficient resources in recent years. Events that disrupt reliability cause widespread economic harm, adverse health effects, the loss of human life, and disproportionately impact people of color, low-income households, and people who are medically vulnerable. The actions here focus on advancing reliability now and accelerating resource development in the next 5-10 years.
The Oregon Public Utility Commission, in coordination with the Department of Energy, should commission an expert review of balanced wildfire utility liability solutions that enable both utility accountability and ongoing customer cost containment, reliability, and decarbonization investments.
Increasingly frequent and intense wildfires have affected many Oregonians and represent a growing risk for households and businesses. They further threaten utilities’ ability to finance and build utility-scale electricity infrastructure, which raises reliability and cost concerns for ratepayers. It is important to consider policy options to mitigate these impacts.
Review and share key findings with the Legislature regarding near-term transmission needs and opportunities, and identify opportunities for the state to support transmission. ODOE would lead this work and build on it to inform the role that a state transmission entity may play in enabling investment.
The pace of transmission expansion along existing and new corridors is creating a critical bottleneck to meeting reliability, affordability, and clean energy goals. This action would consider ways to advance siting and investment, and identify changes to policy that might be needed.
Prioritize measures in energy efficiency incentive programs that relieve pressure on the power system. In the near term, maintain – and where possible accelerate – building weatherization, replacement of less efficient electric heating with efficient electric heat pumps, rooftop solar and storage, and expand demand flexibility.
Oregon has utility and state programs supporting energy efficiency and demand response. This action serves to double-down on these efforts as the fastest way to secure system reliability. Progress on this action will also save money for many energy consumers.
Expand the Oregon Department of Energy’s statewide energy infrastructure resilience programs, including increasing funding for and amending the Community Renewable Energy Grant Program to support projects that improve energy resilience.
If current trends continue, it is likely that some communities will lose power at some point in the next four years due to extreme weather, causing events like downed power lines and public safety power shutoffs. Rural and coastal communities in particular face more frequent and longer duration outages. Oregon must remain focused on resilience to protect communities throughout the state.
Facilitate the sharing of data and joint planning to enhance energy resilience and reliability. The Oregon Department of Energy should identify relevant actions that support the Oregon Energy Security Plan.
One of the keys to energy reliability is ensuring coordination between electricity and gas systems around extreme weather events. As the 2024 ice storm illustrated, coordination in this area must be a priority.
Actions Focused on Protecting Affordability and Access to Clean Technologies
Record disconnections and the loss of federal support for heating assistance and basic needs are deepening an affordability crisis, which disproportionately affects environmental justice communities. Energy efficiency measures can reduce costs for consumers, increase their resilience, and deliver benefits to the electric grid. It is essential to prioritize programs that provide the needed upgrades and technologies to improve health and affordability for Oregon’s most vulnerable residents.
Establish and identify a source of funding for a revolving loan fund to provide a stable source of low-cost and no-cost loans to support the energy transition and resilience.
The energy transition will require significant investment in new technologies and infrastructure. A revolving loan fund can provide a stable and growing pool of money to support the adoption of clean energy technologies that reduce energy demand, such as electric vehicles and heat pumps, particularly for low- and moderate-income households. It can complement areas where direct funding support continues to be needed.
Prioritize existing incentive programs offering essential energy efficiency and weatherization improvements, particularly those focused on low- and moderate- income households.
Continue utility ratepayer-funded programs and restore or expand state programs that provide essential support for household energy efficiency, weatherization, emergency appliance replacement, and installation of high efficiency equipment and appliances.
Earmark flexible funding for deferred maintenance measures necessary to enable low- and moderate- income homes to install efficiency and weatherization technologies and measures.
The need to address deferred maintenance measures, such as a new roof or replacing rotting walls, is often a prerequisite to weatherization or other energy efficiency improvements. There is a lack of funding for these kinds of upgrades, including in owner-occupied and rental housing, creating a barrier to new technologies. Supporting these measures is essential to ensuring equitable access to health- and bill- saving energy efficiency measures.
Update energy efficiency and demand response programs to promote strategic electrification.
This action is essential to provide access to efficient electric technologies, particularly among low- and moderate- income households, while helping to reduce household bills and support reliability.
Review Oregon’s transportation funding mechanisms, recommend strategies for alignment with the state’s energy and climate policy priorities, and identify new revenue sources – particularly to support the deployment of ZEVs and ZEV infrastructure – through a Climate Aligned Transportation Funding Task Force.
The Task Force is essential to enabling Oregon’s transportation system to meet the demands of the 21st century, including addressing climate change. The state must maintain reliable funding for system maintenance and operations while increasing investments in transportation electrification and multimodal infrastructure. The Task Force will evaluate these dual priorities and offer recommendations for legislative or administrative measures that align transportation funding with climate goals and expand resources for climate-focused investments.
Expand local governments’ authority to generate and direct transportation revenues toward climate-aligned transportation infrastructure that meets local needs and priorities.
Many local governments are constrained by limited authority to raise and direct transportation revenue for transportation infrastructure. Expanding authority gives communities the flexibility to meet the scale and urgency of climate and equity-driven transportation challenges. With greater autonomy, localities could accelerate investments in multimodal, zero-emission, and equity-focused transportation infrastructure and target resources toward local priorities.
Actions that can be advanced with minimal additional state budget allocation
The state budget is facing an immediate multi-million dollar funding gap, which is expected to worsen as the state loses billions of dollars in federal funding. This gap is the result of changes in federal policy, which have been evolving throughout the development of the energy strategy. Following is a subset of actions for which undertaking first steps would have minimal budget impact, and that are likely to advance Oregon’s energy policy objectives over time. They aim to ensure that as Oregon invests in its energy future, it supports clean, affordable, reliable solutions that improve public health and generate economic opportunities.
Align the Oregon Economic Development Strategy and the Oregon Energy Strategy through collaboration between Business Oregon and the Oregon Department of Energy to foster decarbonization and economic growth through consideration of industrial symbiosis, clean energy innovation, emerging technologies, and incentives.
Oregon will only achieve its energy policy objectives if they are paired with a focus on economic development and quality jobs and careers. This action would strengthen cooperation between the Oregon Department of Energy and Business Oregon to grow our economy and build on opportunities that new, clean technologies, and innovation offer.
Require investor-owned utilities to publish and maintain interactive, feeder-level Hosting Capacity Maps (HCMs) showing available capacity for EV charging infrastructure, building electrification, distributed generation, and battery storage.
Consistent, accessible, and regularly updated information on distribution grid capacity is essential for accelerating the deployment of clean energy technologies, particularly EV charging stations. This action supports informed planning and strategic investment decisions and builds on existing efforts to establish uniform standards and processes for IOUs to regularly publish feeder-level data on grid hosting capacity. Any process developed should identify the minimum essential information to advance clean energy and electrification projects, carefully balancing the level and frequency of data with potential impacts on ratepayers.
While these actions represent immediate next steps in implementing the energy strategy, ODOE recommends moving forward on all 42 actions over the next four years. All actions represent important priorities to realize Oregon’s energy policy objectives. As these immediate next steps are considered, it will be necessary that policy makers use the Equity and Justice Framework as a guide to ensure meaningful engagement and equitable outcomes. The Oregon Department of Energy will work to advance actions that are within its authority and resources. It will further work and collaborate with Tribes, other state agencies, legislators, the Governor’s Office, and public partners to support development of details on how to move actions forward.