Oregon Department of Energy budget advanced to full committee with $226 million recommendation; debate over permanent staff for grant programs

The Ways and Means Natural Resources Subcommittee voted to move Senate Bill 55‑18, the Oregon Department of Energy budget, to the full committee with a due‑pass recommendation after debate about converting limited‑duration grant staff to permanent positions.

The recommended budget totals $226,036,785, including $15,851,279 general fund, $105,948,313 other funds, $79,074,786 federal funds and $25,162,407 other funds nonlimited, and provides 131 positions equal to 128.43 full‑time equivalent positions, the Legislative Fiscal Office told the panel.

Why it matters: The proposal funds continued climate and incentive programs, grid resilience work and a community renewable energy grants program (CREP). Lawmakers pressed agency staff on whether permanent staffing is justified for programs that historically were funded on a limited, multi‑biennium basis.

The Legislative Fiscal Office (LFO) presentation summarized seven policy packages and seven major funding sources driving the recommendation. LFO staff said the decrease from the 2023‑25 legislatively approved budget is largely the phase‑out of one‑time investments and federal grant expenditure limitation, while the increase over current service level reflects seven policy packages totaling about $126.9 million and 23 positions.

The panel focused sustained attention on the energy development services division, which houses the Community Renewable Energy Project program (CREP). Package 2‑01 would convert seven positions previously classified as limited‑duration into permanent, full‑time roles and add about $1.76 million of other funds expenditure limitation to support staffing. LFO staff explained the fund supporting the grant program was anticipated to be fully expended, but additional one‑time general fund deposits and other resources left an estimated beginning balance of roughly $45 million for the program; as of April 2025, about $23.6 million of that balance was unobligated and available for future awards.

Janine Benner, director of the Oregon Department of Energy, said the CREP statute does not include an end date and that projects and grant administration have long tails.

"The program that the Community Renewable Energy Grant Program does not have an end date in statute, but there is limited funding," Benner said. "We plan our next round to come out, I think, as soon as later this week to happen this summer, and then there will probably be funding for one more round, later in the year."

Benner and LFO staff said the department seeks to preserve institutional knowledge and reduce repeated turnover caused by hiring staff on limited‑duration terms for short grant cycles. Christy Splitt, government relations, Oregon Department of Energy, added that the positions originally authorized in 2021 were permanent, later converted to limited duration as funding projections changed, and are now being requested as permanent again.

Several legislators pressed for transparency about why the conversion to permanent positions was necessary. Representative Owens said she would vote no on making the seven positions permanent, citing preference for returning to the committee for future reauthorization rather than making positions permanent now. Representative Owens recorded a "no" on the final committee roll call; other voting members recorded were Representative Lively (aye), Representative Hartman (aye), Representative Levy (aye), Representative Leavitt (aye), Senator Gorsek (yes) and Co‑Chair Frederick (yes). Senators Anderson and Representative Breece Iverson were excused.

Other policy packages in the recommendation include: - Package 8‑01: general fund and positions to complete Oregon energy strategy work and to support Oregon Climate Action Commission tracking as required by prior session laws, plus one‑time reappropriations for a building performance standards database and a carbon accounting and workforce training study; - Package 2‑03: $2,523,876 general fund and two permanent positions to provide state matching funds for federal grid resilience grants through 2032; - A one‑time other funds limitation of about $44.43 million for the community renewable investment fund to continue CREP grants; - Several federal grant‑funded limited‑duration positions to implement EPA climate pollution reduction grants and federal solar programs through 2028–2030.

The LFO recommended adoption of a -1 amendment reflecting the figures above, and Co‑chair Frederick moved adoption. The subcommittee approved the amendment and the bill as amended; the LFO recommendation will now go to the full Ways and Means Committee.

The panel also reviewed and approved the department's proposed key performance measures, six agency‑specific measures and one common customer service measure, and the LFO recommended adopting the targets as presented.

What's next: Senate Bill 55‑18, as amended, will be considered by the Ways and Means full committee on a due‑pass recommendation.