State Agency Energy Savings Program Rulemaking

The Oregon Department of Energy expects that the adoption of these rules will have minimal fiscal and economic impact. The program implemented by the rules, the State Agency Energy Savings program, applies to all Oregon state agencies although participation is voluntary. State agencies that choose to participate will benefit by their ability to deposit energy cost savings in a revolving fund for future energy-saving projects while retaining their current budget allocation for energy costs. However, participation will require staff hours to fulfill the notification, reporting, and other administrative costs associated with program participation. The Department anticipates that state agencies will only choose to participate in the program if energy cost savings outweigh these notification, reporting, and administrative costs. Conversations with stakeholders indicate that state agency buildings have a substantial backlog of potential cost-effective energy projects. The program has the potential to increase the number of these projects implemented in the state, causing lower energy bills for state agencies and potentially saving General Fund dollars over time.

ODOE worked with rulemaking advisory committee participants to streamline notification, reporting, and administrative requirements for program participants. However, the economic and administrative impacts for an agency to participate will not be fully apparent until agencies attempt to implement eligible projects and establish revolving funds as provided in these rules. Administrative costs will likely differ among agencies, while initial projects could require more work hours than later projects which will benefit from the learnings in early projects. Some agencies already have experience operating revolving funds for other purposes, while revolving funds will be new for others. ODOE anticipates that future rulemaking may be necessary to fine tune the administrative aspects of the program and keep program implementation costs as low as possible while preserving participant accountability.