Oregon Department of Energy budget centers on incentives, CREP expansion and federal grants; fee bill would ratify program fees

The Oregon Department of Energy presented the governor’s recommended budget and related fee changes Monday during an informational hearing on SB 5518 and SB 5519 before the Senate Ways and Means Subcommittee on Natural Resources.

The governor’s recommended budget for the 2025–27 biennium would put ODOE’s total funds budget at about $200,000,000, including about $25,000,000 newly deposited into the Community Renewable Energy Grant program, agency representatives told the subcommittee. "Under the governor's recommended budget for the 25, 27 biennium, Odo's overall budget is about $200,000,000," Michael Williams, speaking for the Oregon Department of Energy, said during the presentation.

Why it matters: the budget and companion fee bill fund incentive programs that provide rebates and construction grants to communities, utilities and other entities and sustain staffing to administer those programs. Agency leaders said many state-funded incentive programs were originally supported by one-time general fund deposits; federal grants (from IIJA and the Inflation Reduction Act) are now a growing share of ODOE’s portfolio but availability is fluid.

Budget highlights and incentives

Seone Philip Muyalla of the Chief Financial Office summarized the funding picture, saying the agency’s roughly $200 million budget reflects significant one-time general fund deposits that are recorded as other funds within the agency budget. She noted "a new investment of $25,000,000 into community renewable energy grants." Janine Benner, director of the Oregon Department of Energy, and other staff described continued funding to carry forward previously appropriated one-time grants, additional staffing for grant administration and support…