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HB 2021 Implementation Activities

PUC Implementation Activities

Oregon House Bill 2021 (HB 2021) is a landmark climate policy that directs the state’s large investor-owned utilities (IOUs) and electricity service suppliers (ESSs) to decarbonize their retail electricity sales by 2040 with consideration for benefits to local communities. The bill became effective on September 25, 2021, and the Oregon Public Utility Commission (PUC) along with other state agencies is in the process of ongoing implementation. View the summary of this bill for more information.

Below is a summary of key investigations and Commission decisions related to HB 2021 to date.

Docket No. UM 2225 - Clean Energy Plan (CEP) Investigation

In 2022, the Commission conducted a robust public engagement process and adopted initial guidance for the utilities developing their first CEPs and associated Integrated Resource Plans (IRPs) following the passage of HB 2021. Key decisions in this investigation include:
  • Order No. 22-206 - Requires the first CEPs to be filed with next IRP and be consistent with the IRP analysis and IRP Action Plan and for the CEP to describes how the CEP and IRP meet HB 2021 requirements. In this order, the Commission also decided not to take up the issue of compliance penalties until after the CEP investigation.
  • Order No. 22-390 (corrected with Order No. 22-470) - Sets expectations for the roadmap of annual actions proposed in the CEP to include targets for acquiring community based renewable energy projects (CBREs), to be broken out by resource type and include voluntary actions, and to weigh portfolio metrics for cost, risk, pace of emissions reduction, and community benefits and impacts. This initial guidance also indicates that CEP acknowledgement will consider HB 2021 targets, consistency with IRP and relationship to other plans, and effectiveness of community engagement. Finally, it includes expectations for utilities be accountable to the feedback received during the development of IRP/CEPs and that the Company report on progress toward the CEP goals and metrics in IRP updates.
  • Order No. 22-446 - Sets expectations for the analysis underlying the first CEP and associated IRP, including exploration of the key long-term decarbonization planning questions; evaluating emerging technologies, impacts of electrification and climate change, transmission constraints and expansion, and regional coordination; defining the certainty with which plans must meet emissions reduction levels across future conditions; expectations for modeling thermal resources; and additional accessibility requirements and standard data reporting expectations.
  • Order No. 23-060 - Sets additional expectations that the first CEP and associated IRP will provide a roadmap of actions that, at minimum, reduce emissions year-over-year and best balance cost, risk, pace of greenhouse gas emissions reductions, and community benefits and impacts.

Docket No. AR 655 – Clean Energy Plan Procedural Rulemaking 

Currently, the Commission is conducting a rulemaking to adopt basic procedural requirements for the filing, review, and update of CEP within the current Division 27 rules for the filing, review, and update of the IRP.

  • Order No. 22-477 - Adopted Staff’s recommendations to move its draft procedural rules for the CEP forward in a formal rulemaking process.

Docket No. AR 651 – Direct Access Rulemaking 

In 2021, the Commission incorporated HB 2021 implementation issues for ESSs into an existing investigation into Direct Access policies. The rulemaking is underway and will establish rules governing the HB 2021 planning requirements for ESSs and policies for implementing a non-bypassability framework that, in part, prevents Direct Access customers from unfairly avoiding the costs of decarbonizing the electric system as required by HB 2021.  

Docket No. UM 2273 – Investigation into HB 2021 Implementation Issues 

In 2023, the Commission initiated an investigation into the next set of HB 2021 implementation issues that should be addressed after near-term Clean Energy Plan guidance. 

  • Order No. 23-059 - Opened the investigation and directed the Administrative Hearings Division to conduct a time-limited scoping process to ensure that the issues and procedural aspects of the investigation were well informed by public input.

Community Impacts and Benefits Advisory Group

At the March 7, 2021, public meeting, utilities provided updates on the status of establishing their Community Impacts and Benefits Advisory Groups (CBIAGs) required by HB 2021. Materials from this discussion are available here:


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