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Bill to create dedicated state match fund for federal grid resilience grants aims to reduce uncertainty for projects

2239340 · February 5, 2025
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Summary

Senate Bill 828 would create a dedicated state matching fund for the federal Grid Resilience State and Tribal Formula Grants program to ensure multi-biennium matching dollars are available for projects awarded under the Infrastructure Investment and Jobs Act.

Senate Bill 828 would establish a dedicated fund to hold state match dollars for Oregon’s portion of the federal Grid Resilience State and Tribal Formula Grants program, the Oregon Department of Energy told the committee.

"Senate Bill 8 28 establishes the [grid] resilience matching fund consisting of monies appropriated or otherwise transferred by the legislative assembly and any other source," Christy Split, ODOE government relations coordinator, said. The bill would require ODOE to report to interim committees related to energy on fund expenditures and project status by Dec. 31 of each even-numbered year.

The Infrastructure Investment and Jobs Act (IIJA) created the Grid Resilience State and Tribal Formula Grants program. Split told the committee Oregon will receive $50,000,000 over eight years under the federal formula and that the federal program requires a 15% state match; utilities receiving subgrants must also provide a match.

Split said the state has been providing the match from general fund appropriations, but general fund dollars revert at the end of each biennium and that reversion can create uncertainty for multi-biennium projects. "The uncertainty created by having to reallocate this funding each biennium can lead to issues with staff retention," she said, and can raise questions for federal partners and utilities about Oregon’s commitment to a state match.

Why it matters: Establishing a dedicated state fund would keep matching dollars available across biennia, ODOE said, reducing administrative risk and helping utilities and project sponsors plan multi-year resilience projects. Split told the committee a dedicated fund would increase certainty for agency staff, federal partners, utilities and ratepayers.

No formal votes were held during the hearing. Committee members did not ask substantive questions during the brief presentation; ODOE staff remained available for follow-up.

Ending: The bill will proceed through the committee process; any appropriations or fiscal details would be addressed by Ways and Means.