Signed by Governor Tina Kotek

Vote Smart's Synopsis:

Vote to pass a bill that authorizes the use of microgrids and community microgrids and requires the Oregon Public Utilities Commission to establish regulations.

Highlights:

• Defines “microgrid” as a group of interconnected loads and energy resources within defined electrical boundaries that functions as a single controllable system, whether it is operated independently or with a larger electric grid (Sec. 2).

• Defines “community microgrid” as a microgrid that is located within an area that a local government designates as a microgrid zone based on existing electric service infrastructure within its jurisdiction (Sec. 2, 7).

• Requires the Public Utility Commission to establish a regulatory framework for the ownership and use of microgrids and community microgrids within the service areas of electric companies (Sec. 2).

• Requires the regulatory framework established by the Commission to do the following (Sec. 2):

• Consider the benefits and constraints of deploying microgrids;

• Consider the role of microgrids in supporting economic growth, innovation in zero-emission energy, and reliable electricity service;

• Consider different approaches to designing and operating microgrids that serve one or multiple customers;

• Provide interconnection standards and requirements;

• Provide safety and performance standards;

• Utilize an accessible application and approval process;

• Include a framework for compensation and cost allocation for owners, subscribers, or developers of a microgrid;

• Allow excess energy to be sold to a utility;

• Allow an owner/operator of a microgrid to use front-of-meter energy resources that are owned/operated by a utility, third-party, government, or community-based organization;

• Allow an electric company to enter partnerships to develop microgrids that improve resilience;

• Provide a standard for reasonable cost-sharing;

• Allow for redundant infrastructure that supports community microgrids;

• Allow a community microgrid if it enhances energy resilience and is capable of supporting infrastructure during and after an emergency;

• Allow an operator to operate independently from the electric grid system during an emergency;

• Provide standards for cooperation between microgrid operators and electric companies; and

• Prohibit a microgrid operator from controlling an electric company’s own distribution infrastructure.

• Specifies that the Commission must finish its regulatory framework within 18 months of the passage of this Act (Sec. 3).

• Requires the Department of Consumer and Business Services to adopt rules to the state building code that support the integration of buildings with community microgrids (Sec. 5).

• Specifies that this Act takes effect 91 days after the legislative session adjourns (Sec. 9).

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that authorizes the use of microgrids and community microgrids and requires the Oregon Public Utilities Commission to establish regulations.

Highlights:

• Defines “microgrid” as a group of interconnected loads and energy resources within defined electrical boundaries that functions as a single controllable system, whether it is operated independently or with a larger electric grid (Sec. 2).

• Defines “community microgrid” as a microgrid that is located within an area that a local government designates as a microgrid zone based on existing electric service infrastructure within its jurisdiction (Sec. 2, 7).

• Requires the Public Utility Commission to establish a regulatory framework for the ownership and use of microgrids and community microgrids within the service areas of electric companies (Sec. 2).

• Requires the regulatory framework established by the Commission to do the following (Sec. 2):

• Consider the benefits and constraints of deploying microgrids;

• Consider the role of microgrids in supporting economic growth, innovation in zero-emission energy, and reliable electricity service;

• Consider different approaches to designing and operating microgrids that serve one or multiple customers;

• Provide interconnection standards and requirements;

• Provide safety and performance standards;

• Utilize an accessible application and approval process;

• Include a framework for compensation and cost allocation for owners, subscribers, or developers of a microgrid;

• Allow excess energy to be sold to a utility;

• Allow an owner/operator of a microgrid to use front-of-meter energy resources that are owned/operated by a utility, third-party, government, or community-based organization;

• Allow an electric company to enter partnerships to develop microgrids that improve resilience;

• Provide a standard for reasonable cost-sharing;

• Allow for redundant infrastructure that supports community microgrids;

• Allow a community microgrid if it enhances energy resilience and is capable of supporting infrastructure during and after an emergency;

• Allow an operator to operate independently from the electric grid system during an emergency;

• Provide standards for cooperation between microgrid operators and electric companies; and

• Prohibit a microgrid operator from controlling an electric company’s own distribution infrastructure.

• Specifies that the Commission must finish its regulatory framework within 18 months of the passage of this Act (Sec. 3).

• Requires the Department of Consumer and Business Services to adopt rules to the state building code that support the integration of buildings with community microgrids (Sec. 5).

• Specifies that this Act takes effect 91 days after the legislative session adjourns (Sec. 9).

Full Bill Text