State Agency Energy Savings Program Rulemaking

In 2023, the Oregon Legislature passed House Bill 3409, which included several initiatives to increase energy efficiency in existing buildings. Sections 19-21 of the legislation raised the percentage of energy cost savings from efficiency and generation projects that state agencies can retain from 50 percent to 100 percent; cost savings must be deposited in a revolving fund and can only be used for eligible energy and productivity-improving projects.

Summary of Proposed Rule	The Oregon Department of Energy is updating Division 118 – State Agency Energy Savings Program to implement changes adopted by the Oregon Legislature in House Bill 3409 (2023). HB 3409 increased the share of energy cost savings that state agencies may retain from eligible energy efficiency and on‑site generation projects from 50 percent to 100 percent. These retained savings must be deposited into a dedicated revolving fund and used for approved energy or productivity‑improving projects.
Statement of Fiscal Impact on Proposed Rule	TBD by Rulemaking
Any Relevant FAQ Documents	OAR Division 118 – State Agency Energy Savings Program HB3409 (Sec 19-21)
Rulemaking Advisory Committee Meeting Notes/Recording	N/A
Public Comments Received	None recieved as of yet
Most Recent Activity	The Oregon Department of Energy is convening a Rulemaking Advisory Committee on July 22, 2026.

July 22, 2026: State Agency Energy Savings Program Rulemaking Advisory Committee Meeting
The State Agency Energy Savings Program Rulemaking Advisory Committee will meet online Wednesday, July 22, 2026, at 1 p.m. Meeting Agenda Join online Meeting ID: 241 123 550 351 188 Passcode: Pa7WF3ca Or Call in: 503-446-4951 Phone conference ID: 911 215 039#

Resources

HB3409 (Sec 19-21)