DRAFT Report on Reducing Barriers to Clean Energy Deployment
EXECUTIVE SUMMARY
The Oregon Energy Strategy identified five pathways that together represent the direction Oregon needs to take to meet its energy policy objectives – including an energy transition that will deliver clean, reliable, and affordable energy to all Oregonians. The five pathways are: (1) Energy Efficiency, (2) Clean Electricity, (3) Electrification, (4) Low-Carbon Fuels, and (5) Resilience. The second pathway, Clean Electricity, highlights the need to increase transmission capacity to access out-of-state generation resources as well as the potential benefits – from energy resilience to local economic development – of deploying more clean energy generation within the state. The Energy Strategy calls for the state to facilitate energy infrastructure enhancement and expansion while avoiding, minimizing, and mitigating negative impacts on Tribal trust resources, energy burden, natural and working lands, cultural resources, and communities (Clean Electricity Policy 2a).
As one near-term policy action (Electricity Action 5), the Energy Strategy recommended investigating why some proposed clean energy facilities have received approved site certificates from the Energy Facility Siting Council only to wait months or years before beginning construction or simply abandoning their project. To comply with Governor Kotek’s Executive Order 25-29 section I(2)(a), the Oregon Department of Energy, in coordination with the Public Utility Commission and the Department of Land Conservation and Development, is pursuing the Energy Strategy’s recommended investigation through this report process. This report aims to understand and identify ways to reduce barriers to the deployment of proposed wind, solar, and battery storage facilities with a nameplate capacity over 20 megawatts that have received siting approval from the Energy Facility Siting Council (via an approved site certificate) or from a county but are not yet built. ODOE hopes that identifying and addressing the barriers these types of clean energy facilities face may provide value to proposed clean energy facilities of all sizes and technology types.
Key takeaways: Overview
Oregon’s current supply of electricity generating facilities will not be sufficient to meet rapidly rising demand for electricity from various sources, including data centers and electrification. More resources are needed.
This report focuses on accelerating the development of new clean energy facilities, specifically by identifying and addressing barriers to permitting, construction, and interconnection faced by proposed facilities after receiving siting approval from EFSC or a county. For example, it includes consideration of barriers that may arise in certain federal permitting requirements. However, it does not examine any aspect of EFSC’s processes nor any aspect of Tribal consultation requirements that must be met before EFSC issues a site certificate or a county issues a land use permit.
Supporting public engagement and the participation of wide range of voices is critical for this report’s success and for ODOE’s implementation of the Equity and Justice Framework. ODOE appreciates the input received so far and looks forward to further engagement on this draft report.
While the barriers to clean energy deployment are substantial, overcoming them has the potential to deliver significant benefits to Oregonians.
Key Takeaways: Barriers to Clean Energy Deployment
Based on ODOE’s ongoing research and analysis of public comments, this draft report provides an initial inventory of seven barriers to permitting, construction, and interconnection for proposed clean energy facilities that have obtained siting approval from EFSC or a county.
The below list of seven barriers and indicates whether it might affect permitting, construction, and interconnection. The order in which each barrier is listed is not indicative of the magnitude of the barrier.
Barrier: Cost
Barrier to Permitting; Barrier to Construction; Barrier to Interconnection
Barrier: Unexpected Delays
Barrier to Permitting; Barrier to Construction; Barrier to Interconnection
Barrier: Limited Cross-Jurisdictional Coordination
Barrier to Permitting; Barrier to Interconnection
Barrier: Limited Availability of Equipment and Supplies
Barrier to Construction; Barrier to Interconnection
Barrier: Limited Staffing Capacity
Barrier to Permitting
Barrier: Unmet Workforce Needs
Barrier to Construction
Barrier: Limited Grid Capacity
Barrier to Interconnection
Key Takeaways: Recommendations to Overcome Barriers
Many of the recommended policy actions in the Oregon Energy Strategy aim to address the barriers described in this report. Several of these policy actions are already underway. Read more below on five of these recommended policy actions and indicates the barriers each might help address.
This draft report provides four additional recommendations to overcome the barriers identified above.
At this time, ODOE believes these are all potential actions that could be undertaken pursuant to existing agency authority, but they might not be feasible with existing agency resources.
Recommended Policy Actions in the Oregon Energy Strategy
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Identify gaps in current and estimated occupation-level employment to meet Oregon’s future energy needs. ODOE should recommend actions to support and expand workforce development efforts that complement existing efforts. (Workforce needs assessment) (This work is ongoing.)
Barrier(s) It May Help Address
Cost
Unmet workforce needs
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Advocate for federal policies that support advancement of state energy objectives. (Federal support and advocacy) (This work is ongoing.)
Barrier(s) It May Help Address
Cost
Unexpected delays
Limited cross-jurisdictional coordination
Limited availability of equipment and supplies
Limited grid capacity
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Increase resources, funding, and staff levels at agencies as needed, and as funding becomes available, to implement actions necessary to advance Oregon’s energy policy objectives. (Increase agency capacity)
Barrier(s) It May Help Address
Cost
Unexpected delays
Limited cross-jurisdictional coordination
Limited staffing capacity
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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. (Transmission needs and support) (This work is underway, pursuant to Executive Order 25-29 section I(2)(e).)
Barrier(s) It May Help Address
Cost
Unexpected delays
Limited cross-jurisdictional coordination
Limited grid capacity
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Study government incentives for local electricity generation investments and identify opportunities for the state to better advance infrastructure needs, economic development and energy justice objectives. (Local generation incentives study) (The work underway for Executive Order 25-29 section I(3)(a) may advance this action.)
Barrier(s) It May Help Address
Cost
Unmet workforce needs
Limited cross-jurisdictional coordination
Additional Recommendations to Overcome Barriers
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Barrier(s) It Could Help Address
Cost
Unexpected delays
Limited grid capacity
-
Barrier(s) It Could Help Address
Cost
Unexpected delays
Limited cross-jurisdictional coordination
Limited grid capacity
-
Barrier(s) It Could Help Address
Cost
Limited grid capacity
-
Barrier(s) It Could Help Address
Potentially all seven barriers, and others unique to facilities beyond the targeted scope of this report