Oregon lawmakers are considering a bill that would fast-track siting and permitting of renewable energy projects.
House Bill 4031 would temporarily give counties power to grant renewable energy permits that are currently issued by the state.
This could cut siting and permitting times significantly, according to supporters of the bill, and could help developers qualify for federal tax credits that can reduce overall costs by up to 30%.
FILE - Wind turbines in Morrow County on May 24, 2022.
Kristyna Wentz-Graff / OPB
The Trump administration-backed law known as the “One Big Beautiful Bill Act” imposed new deadlines on those credits. Large wind and solar developers now must begin construction by July 4 to qualify, and must be operational within four years.
As renewable developers race to meet the new federal tax credit deadline, Oregon’s power grid is under increasing strain. Data centers, which use enormous amounts of energy to power AI, are coming online faster than new power sources, and extreme weather events worsen the strain.
Oregon has set a goal to bring more renewable energy online to meet projected energy demand, lower greenhouse gas emissions and comply with a state law that requires electric utilities to deliver carbon-free energy by 2040.
HB 4031 is the second attempt to speed up siting and permitting time using state land use laws, after Gov. Tina Kotek signed an executive order fast-tracking that process. The governor’s order only went so far.
“We heard concerns from some developers that the state’s siting timelines established by statute add time and complexity to the process that could prevent some projects from meeting the tax credit deadlines,” Amy Schlusser, climate and energy policy advisor to Gov. Tina Kotek, said during a Tuesday hearing of the House Committee on Climate, Energy and Environment.
“By giving these projects the option to get siting approval from the counties in which they’re located, HB 4031 helps to provide an alternative pathway forward for developers that aim to monetize federal tax credits and contribute to Oregon’s clean energy future.”
Currently, those developers need certification from the Oregon Energy Facility Siting Council through a process that can take up to three years. That’s time developers no longer have, Oregon Solar and Storage Industries Association’s executive director Angela Crowley Koch said.
“Then we add on working with utilities to upgrade grid equipment that can take months to years. You add in interconnection agreements with utilities securing a contract for the energy building the project itself, that timeline becomes impossible for some projects,” she told lawmakers during Tuesday’s public hearing.
“So this bill will enable some projects to move forward and meet those tax credit deadlines that might not be possible if they had to wait that one to three years for the Facility Siting Council permit.”
Even if Oregon counties move more quickly to approve large wind and solar projects under HB 4031, developers still face tight timelines for approval from agencies not under state control, including the Bonneville Power Administration.
BPA, a federal agency, owns three-quarters of the Pacific Northwest electrical grid.
Some projects have been waiting years to begin construction as they wait for BPA. That delay has left hundreds of projects on hold in the region, with many seeing the federal tax credit deadline as the end of the road.
Republican state Rep.Bobby Levy raised concerns about the proposed legislation at Tuesday’s hearing. She said she worries it could lead to more renewable projects on high-value farmland in rural parts of the state, specifically speaking about Umatilla County.
She also questioned whether the bill would balance out where these projects are sited across the state.
“I live in Umatilla County and over the last four or five years, Umatilla, Morrow County has been abundantly overcome with wind and solar, and I’m a farmer rancher,” she said. “And so to me the most important part about Umatilla County is that we have very high value farm ground there and we are large producers.”
People can submit written comments on the legislation until 8 a.m. Thursday, ahead of a scheduled work session later that day.
