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​​​​​​​​​​​​Large electric consumers using more than one megawatt (on average) per year may be eligible to "self-direct" some of the value of the 3 percent public purpose charge. Rulemaking activities will support the Large Electric Consumers Public Purpose Charge program.

Implement House Bill 3141​

  
  
13 Dec 2021ODOE Submits Final Rules for Large Electricity Consumer Public Purpose/Self-Direct Program

The Oregon Department of Energy submitted final rules to the Secretary of State on December 13, 2021 to amend program rules for the Large Electricity Consumer Public Purpose/Self-Direct Program (LECPPP). The rulemaking process included a public hearing on December 1, 2021 and a public comment period which closed the same day. The department received no public comments on the draft rules during the public comment period; however, the department had several discussions with affected stakeholders as the draft rule language was developed, including at a public stakeholder meeting on October 6, 2021.

The amendments to permanent rules reflect the changes made by Oregon Laws 2021, chapter 547 (House Bill 3141​) to the LECPPP/Self-Direct program, including:

  • The addition of “investments in distribution system-connected technologies" (DS-CT) as an eligible expenditure for self-direction for eligible large electricity consumers;
  • The shift of funding for energy efficiency work from the public purpose charge to charges in rates, with the charges in rates for this purpose eligible for self-direction by eligible large electricity consumers;
  • Providing continuity for existing participating large electricity consumers having credit balances for previously implemented energy conservation projects, and for projects which have been pre-certified as of January 1, 2022, but not yet completed and certified for self-direction;
  • The repeal of obsolete rule language relating to the start-up phase of the program and statutory provisions which were deleted by House Bill 3141; and
  • The addition of definitions related to the changes made by House Bill 3141, including a definition for DS-CT that matches the provisional definition of this term from the Public Utility Commission.​

The only substantive changes the department made to the draft rules before filing the permanent rules were to the documentation requirements for pre-certification of investments in DS-CT to more closely align with the reasoning underlying the PUC's provisional definition, as articulated by PUC staff in a staff memorandum prepared for a Special Meeting of the Public Utility Commission on November 30, 2021. The rule changes become effective January 1, 2022.

Materials:


01 Dec 2021Large Electricity Consumer Public Purpose/Self-Direct Program Rules Public Hearing

Public Hearing:
Wednesday, December 1, 2021, 9 a.m.

The ODOE building is currently closed to the public, but our services are open. This public hearing will be conducted virtually via Webex.

Join by webinar:
https://odoe.webex.com/odoe/j.php?MTID=m31fac61beefe2798b63d021fe35ccb6d

Join by phone: +1-408-418-9388 United States Toll
Event number (access code): 2333 503 9296
Event password: Energy (363749 from phones)

Hearing materials:

Background:
This rulemaking is to update the rules for the Large Electricity Consumer Public Purpose Program (LECPPP), also known as the Self-direct program, to reflect the changes made by Oregon Laws 2021, chapter 547 (House Bill 3141). House Bill 3141 made major changes to existing law relating to the Public Purpose Charge and related programs, which include:

  • Extending the Public Purpose Charge for an additional 10 years, through January 1, 2036.
  • Reducing the PPC from three percent to 1.5 percent of revenues collected from ratepayers of Portland General Electric and Pacific Power.
  • Moving the funding of most cost-effective energy efficiency work from the PPC to a charge in rates paid by PGE and Pacific Power customers.
  • Adding “investments in distribution system-connected technologies that support reliability, resilience, and integration of renewable energy resources with the distribution system of the electric company" as eligible expenditures for the renewable energy portion of the PPC.
  • Requiring that 25 percent of the portion of the PPC designated for renewable energy resources and “distribution system-connected technologies" must be used to serve low- and moderate-income customers.

The existing PPC statutes allow a large electricity consumer with annual electricity usage over one average megawatt to participate in the LECPPP/Self-direct program which is administered by the Oregon Department of Energy. Existing Department rules in Division 140 prescribe the process that participating large electricity consumers must follow, including documentation that large electricity consumers must provide to the Department, in order to be eligible to accrue self-direction credits.

Under the proposed rule changes to implement House Bill 3141, the steps in the existing process will remain largely the same for participants. Significant changes include the addition of “investments in distribution system-connected technologies" (DS-CT) as an eligible use of the renewable energy resource portion of the PPC. The proposed rules include a draft interim definition to determine which technologies are eligible, which was posted for stakeholder comment by the Public Utility Commission in October 2021. The PUC plans to revisit the interim definition in 2022 and to establish a more permanent definition. Large electricity consumers will be limited to self-directing up to 75 percent of the renewable energy portion of their PPC obligation, with the remainder being designated to serve low- and moderate-income customers.

Another significant change is the shift of the funding for energy efficiency work from the PPC to charges in rates. The proposed rule changes provide for continuity for existing participating large electricity consumers having credit balances for previously implemented energy conservation projects, and for projects which have been pre-certified as of January 1, 2022, but not yet completed and certified for self-direction.

The proposed rule amendments include several new definitions related to the substantive changes under House Bill 3141 described above, in addition to the necessary related changes in terminology from “energy conservation" to “cost-effective energy efficiency." Additionally, the proposed rule amendments would (1) repeal two obsolete rules relating to the start-up phase of the LECPPP/Self-direct program in 2001, and (2) delete rule language that implements statutory provisions deleted by House Bill 3141 that relate to self-direction by aluminum plants and to an audit process to demonstrate that no further energy conservation opportunities exist at a large electricity consumer's site. Finally, the proposed rule amendments include non-substantive changes to terminology for consistency.

Commenting on the draft rules:
The Oregon Department of Energy will be holding a public hearing on December 1, 2021 to receive feedback regarding its draft rules to implement the changes made to the LECPPP/Self-direct program by House Bill 3141. ODOE will accept oral testimony on the rules at the public hearing, using the contact information listed above.

Written comments on the rulemaking are due by 5 p.m. on Wednesday, December 1, 2021, and may be sent via email to: wendy.simons@energy.oregon.gov.

The public hearing will be the final opportunity for comment before the department files permanent rules. ODOE plans to file the proposed rules before December 31, 2021, with an effective of January 1, 2022.


For more information, contact:


06 Oct 2021Public Stakeholder Meeting on Rulemaking to Implement HB 3141
This fall, ODOE will hold a rulemaking process to implement changes made by Oregon 
Laws 2021, chapter 547 (House Bill 3141) to LECPPP, also known as the industrial 
self-direct program. ODOE plans to file permanent rules before the changes in 
HB 3141 become operative on January 1, 2022. 

ODOE will hold a public stakeholder meeting on Wednesday, October 6 to: 
  • provide an overview of program changes made by HB 3141 and impacts on the LECPPP process,  
  • review the rulemaking process to implement the bill, and  
  • seek input and answer questions from stakeholders. 
HB 3141 Stakeholder Meeting Details:
Wednesday, October 6, 2021 at 9 a.m. 
This meeting will be conducted remotely online using WebEx: ​
Join via audio conference: 
To receive a call back, provide your phone number when you join the event, or call the number below and enter the access code. 
+1-415-655-0001 US Toll 
1-844-621-3956 United States Toll Free 
Access code: 2591 799 1422 

ODOE will also hold a public hearing for the LECPPP/self-direct program rulemaking later this fall. Sign up to receive email notices for future meetings. 
​​

LECPPP 2018 Rulemaking

  
  
16 Jan 2019Conclusion of Rulemaking for the Large Electric Consumers Public Purpose Program (LECPPP)

The Oregon Department of Energy submitted final rules to the Secretary of State on January 11, 2019 to clarify and update LECPPP (also known as the industrial self-direction program) rules relating to project applications and fees. The permanent rules filing does not change the proposed rule language that was posted for the public hearing on October 24, 2018. This concludes the formal rulemaking process, which closed on October 31, 2018.

Materials:

01 Oct 2018LECPPP/Industrial Self-direction Public Purpose Program Rules Public Hearing

​Rule Caption: Clarify and update industrial self-direction program rules relating to project applications and fees.

Public Hearing
Wednesday, October 24, 2018
9 a.m.
Oregon Department of Energy (parking information)
Meitner Conference Room
550 Capitol St. NE
Salem, OR 97301

Call-in number:
(877) 336-1831, access code 872206

Hearing materials:

The proposed rule changes would provide clarification and better align the rules with department practice regarding how program fees are charged. Specifically:

  • Fees are charged only at time of conservation and renewable project application, or Green Tags application
  • Fees collected are for recovering all program administration costs, direct and indirect
  • Periodic adjustments may be made to the fee rate so that fees collected recover all costs to administer the program (Note: the rule changes would retain the four percent cap on fees, and would not change the current fee percentage)

Additional rule changes proposed:

  • Remove the requirement for program participants to reapply annually in order to remain eligible
  • Add a requirement for each site to provide evidence as part of the application process that prior year electric usage is greater than one annual megawatt, the statutory requirement for program eligibility
  • Add project completion as a requirement for certification that a project site may claim a public purpose charge credit
  • Confirm that sites may carry over self-direction credits as long as the obligation to pay those public purpose charges exists
  • Remove obsolete language from program start-up
  • Minor changes to ensure consistency of terminology throughout program rules

ODOE will accept oral testimony on the rules at the public hearing. Participants unable to attend may call in using the number listed above.

Written comments on the rulemaking are due by 5 p.m. on Wednesday, October 31, 2018, and may be sent via email to the hearing officer: wendy.simons@oregon.gov

The public hearing will be the final opportunity for comment before the department files permanent rules.

For more information, contact:

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​Administrative Rules​

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disability icons To request an interpreter for the hearing impaired or accommodations for persons with disabilities, please contact the Oregon Department of Energy at least 72 hours before the meeting at
1-800-221-8035 or fax 503-373-7806. TTY users should call the Oregon Relay Service at 711.​​​​​
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