Committee hears bill to end PUC reporting on long-closed solar incentive pilot

Senate Bill 843 would remove a statutory requirement that the Oregon Public Utility Commission file further reports on a 2009 pilot program for volumetric incentive payments for solar photovoltaic systems.

The bill matters because the pilot was capped and closed years ago, and the PUC told lawmakers the reporting mandate no longer produces useful information and duplicates newer solar-support policies.

Laura Taber, legislative affairs director for the Oregon Public Utility Commission, told the committee the pilot was established by the Legislature in 2009 and required biennial reports. "These incentive rates are production based incentives in which participants receive payments based on the output generated from the subscribed solar PV systems minus their own consumption," Taber said. She described the pilot's initial cap and eligibility limits: the program was initially capped at 25 megawatts and limited to systems under 500 kilowatts, and the Legislature later raised the cap to 27.5 megawatts.

Taber said the program closed ahead of its statutory deadline when the full program capacity was reserved prior to March 31, 2016. She told the committee the PUC continues to be required by statute to estimate the pilot's cost to retail customers, evaluate the relative effectiveness of volumetric payments compared with state tax credits and Energy Trust of Oregon incentives, and estimate the resource value of solar energy. Under SB 843, those continued reporting requirements would be eliminated.

Taber said the agency supports the bill because "the program has effectively ended, is fully subscribed and has been for some time." She added that, since the pilot was created, the Legislature and state agencies have enacted other solar support policies that the PUC now implements.

Committee members asked clarifying questions about whether the pilot produced useful lessons. Taber said she had been with the PUC only about two-and-a-half weeks and could not speak to internal agency conclusions reached when the program closed in 2016, but her impression was "there are other more effective ways to incentivize solar than this particular program." Representative Anderson followed up, describing the exchange as an example of legislative oversight of the PUC.

The committee did not take a vote during the public hearing. Chair Lively closed the SB 843 hearing and opened the next item on the agenda.

Votes at this meeting: none recorded for SB 843; the item was a public hearing only.