Energy Incentive Programs, Oregon

Updated October 2011

What public-purpose-funded energy efficiency programs are available in my state?

In 1999, Oregon's electricity restructuring law established a public purpose fund for conservation, energy efficiency, and renewable energy programs. The programs are funded through a non-bypassable 3% "public purposes charge" for customers of Portland General Electric (PGE) and PacifiCorp. The 2010 budget was nearly $120 million (including low-income and residential programs). To receive benefits, Oregonian customers must be served by Portland General Electric (PGE), Pacific Power, NW Natural, or Cascade Natural Gas and must be paying the public purpose charge. Customers with average demand greater than 1 MW may be eligible to self-direct some portion of their public purpose charges.

Energy Trust of Oregon (ETO), a non-profit organization, administers the public purpose funds and offers a wide array of electric and natural gas efficiency programs to customers of Portland General Electric, Pacific Power, NW Natural and Cascade Natural Gas. Federal customers can find the programs that apply to their particular project and building type by selecting from the drop-down menus in the Public + Nonprofit section of ETO's website.

ETO efficiency programs of interest to federal customers include the following:

The Industrial Production Efficiency Program provides engineering services and financial incentives for numerous industrial processes including water/wastewater treatment facilities. Projects may include lighting upgrades, controls and sensors, heat pumps, motors, variable speed drives, and custom projects, with incentives offsetting up to 50% of project costs.
New construction and major renovation incentives offer financial assistance to offset costs of early design (up to $2,500), energy modeling (up to $25,000) and commissioning (up to $40,000) as well as for energy-efficient lighting, HVAC, as well as standard and specialized energy-using equipment that exceeds code requirements.
LEED® Track Incentives help offset costs of projects that achieve LEED certification, plus additional incentives for enhanced commissioning and measurement and verification (up to $499,000 per project). Payment levels are based on total annual energy savings claimed to the Green Building Certification Institute (GBCI), as approved by Energy Trust.
Standard incentives for equipment upgrades in existing buildings provide rebates for efficient heating and cooling equipment, insulation, lighting and lighting controls, motors and drives, lodging and food service equipment, as well as geothermal and solar electric, solar pool heating and solar water heating installations.

What utility energy efficiency programs are available to me?

Avista's Prescriptive Commercial Incentives program provides partial funding to commercial customers (420 and 424 rates) towards the installation of natural gas efficiency measures including commercial kitchen equipment, insulation (limited to gas-heated buildings up to 3 floors and 5,000 square feet) and forced air furnaces. Site-specific incentives are also available for measures not covered under the prescriptive program, including heating equipment, controls and new construction measures that exceed energy codes. For more information about site-specific incentives, contact Kerry Shroy at kshroy@avistacorp.com or call 541-858-4743 prior to project commencement.

The City of Eugene offers rebate programs for energy-efficient HVAC, lighting, window, commercial refrigeration, motors, food service and various other equipment for both existing and new construction projects. Technical assistance for life-cycle cost analysis of conservation measures is also available, in addition to low-interest loans and tax credits for qualifying energy efficiency projects.

The City of Ashland Electric Department's Commercial Conservation Program provides free site analyses, rebates and zero-interest loans to commercial customers for lighting retrofits and other resource-saving measures. Contact Larry Giardina, giardin@ashland.or.us, 541-552-2065, for a free site analysis.

Columbia River PUD's Efficiency Programs for Business offer rebates for efficient lighting in existing buildings and new construction, weatherization, heat pumps, water heating and appliances.

The Bonneville Power Administration (BPA) offers numerous energy conservation programs relevant to federal customers:

BPA provides project analysis, development services and financial incentives through its Energy Smart Federal Partnership. Federal facilities located in areas that are served by public utilities receiving power from BPA can receive preliminary energy assessments, project development studies or specifications, and engineering support. Financial incentives for retrofits provide up to $0.35 per first-year kWh savings (up to $0.46 for Federal Columbia River Power System) and $0.29/kWh or 2% of total building costs for new construction/major renovation projects. Incentives are capped at 100% of project cost (or 70% for projects earning more than $150,000 in incentives). In addition, a financing option is available to help federal agencies meet cost-sharing requirements. Projects at sites served by investor owned utilities may still take advantage of services but must reimburse BPA for its costs. Interested federal agencies may contact their local utility representative or Curt Nichols of BPA at cwnichols@bpa.gov, or 503-230-7515.
BPA's Implementation Manual provides utilities, program partners and regional stakeholders information on how to implement energy-saving projects.
BPA's Technical Services Proposal (TSP) portal offers customers the opportunity to submit a proposal for energy efficiency technical services in the agricultural, commercial, or industrial sectors. The project should be instrumental in the implementation of an energy efficiency project under one of BPA's conservation programs. A TSP generally consists of (but is not limited to) energy audits, feasibility studies, plant assessments, conservation project identification, implementation project proposal development, and measurement and verification tasks at agricultural, commercial, or industrial facilities.
BPA's Commercial and Industrial Lighting program provides access to a lighting calculator, lighting trade allies, and incentives for energy-efficient lighting retrofits. More details are available through public utilities participating in BPA's program, including Central Electric Cooperative, Emerald People's Utility District, and McMinnville Water and Light. These utilities also offer rebates for efficient motors, motor rewinds, and process efficiency evaluations.
BPA's Energy Smart Design program offers incentives for new, small offices via participating BPA utilities. Interested federal agencies should work with their design team and/or contact their local utility representative for details on how to participate.

Idaho Power offers several efficiency programs for business customers:

The Building Efficiency program provides up to $100,000 per project for energy-efficient design in new construction and major renovation projects. Eligible equipment includes lighting, HVAC, chillers, energy management control systems, variable speed drives and other efficiency measures. Funds are limited and are provided through the Conservation Program Funding Charge that is assessed monthly to all Idaho Power customers. Pre-approval is required.
The Custom Efficiency program is open to large customers and/or complex energy-saving projects that save 100,000 kWh per year or more. Projects saving less than 100,000 kWh per year will be considered on a case-by-case basis. Payments are based on $0.12 per kWh of first-year savings, up to 70% of the project cost.
The Easy Upgrades program, for retrofits in existing commercial or industrial buildings, provides up to $100,000 per year for a menu of typical retrofit options including lighting and controls, HVAC, motors, building shell, refrigeration, food service and office equipment. Projects with an estimated incentive of $1,000 or greater, non-standard lighting measures and variable frequency drives require pre-approval before purchase and installation.

A number of other municipal and electric cooperative utilities offer efficiency programs, including the following:

Forest Grove Light and Power works with commercial and industrial customers to identify energy conservation measures, and provides incentives based on the energy savings.
Lane Electric Cooperative's Commercial Retrofit Program provides direct fund payments to retrofit contractors equal to 50% of total measure costs up to a maximum of $2,500. Eligible measures include building and duct insulation, HVAC duct sealing, door and window replacements, and general air sealing.
McMinnville Water & Light's Commercial Energy Programs provide rebates for efficient lighting and motors as well as process efficiency evaluations and low-interest loans for energy efficiency, renewable and alternative fuel projects.
Midstate Electric Cooperative offers design assistance and financial incentives for new construction projects and rebates for efficiency upgrades in existing buildings, including lighting, motors, HVAC and insulation.
Oregon Trail Electric Consumers Cooperative (OTECC) offers rebates for lighting retrofits.
Salem Electric's Energy Smart Design Program provides incentives of $0.12 per kWh of first-year savings (up to 50% of incremental costs or $100,000, whichever is less) and 50% (up to $10,000) of the costs of a design study to identify energy-saving measures beyond Oregon code for new construction or major remodel projects. For existing buildings, rebates (up to 50% of project costs) include HVAC, windows, lighting, and building envelope improvements.
Springfield Utility Board offers technical assistance and financial incentives for a variety of energy-efficient equipment and measures in existing commercial and industrial facilities and for new office construction projects. The Energy Smart Design program for new office construction provides 50 cents per square foot for projects under 100,000 sq. ft. The Energy Savings Plan is geared toward industrial processes and motors. The Lighting Rebates program covers both existing buildings and new construction.

What load management/demand response options are available to me?

Idaho Power offers the FlexPeak Management program, which provides financial incentives for reducing power usage during times of system peak demand. Customers work with EnerNOC, a third-party curtailment service provider, to enroll in the program and develop a customized demand reduction plan.

PGE's new Energy Partner Program, the utility's first automated demand response program, is targeting enrollment of approximately 50 participants by the end of 2011. Participants receive financial incentives for program participation in addition to payment for actual energy use curtailment during energy reduction events, which usually occur on extremely hot summer or cold winter weekdays. A maximum of 15 total events per season can be called with a 10-minute notice between 3 and 7 p.m., July through September (or 6 -10 a.m. and 5 -9 p.m., December through February) for up to 4 hours at a time. The automated system, installed at no cost, curtails power usage through thermostat adjustment, dimming lighting or turning off non-essential equipment. The program works with customers to design energy reduction strategies that work with the facility's operational needs.

Both PGE and PacifiCorp/Pacific Power offer Internet-based demand reduction bidding initiatives, known as the Demand Buy Back and Energy Exchange programs, respectively. For these programs, the utility posts a price for each hour that a load reduction is needed, and customers may voluntarily respond by pledging to curtail a specified amount of load for events, which last from one to 24 hours each. Participants are paid the posted price per unit of measured energy reduction for each hour of the curtailment. Demand Buy Back bidders must be able to curtail at least 250 kW, while PacifiCorp's Energy Exchange requires that customers have a minimum of one MW of connected load.

PGE customers with standby generators of at least 250 kW capacity may participate in the Dispatchable Standby Generation program, in which PGE has the option to operate participants' standby generators during periods of peak demand for up to 400 hours per year. In exchange, PGE will pay for the fuel and maintenance of the generators, as well as any necessary control and communications hardware.

What distributed energy resource options are available to me?

The state of Oregon now has a solar requirement for public buildings. Public entities in Oregon must dedicate 1.5% of the total contract price of new construction or major renovation of a public building to solar energy technology.

Energy Trust of Oregon (ETO) offers financial incentives and technical assistance for a wide array of renewable technologies including solar PV, solar hot water heating, biopower, geothermal, hydroelectric and wind:

The Solar Electric program offers cash incentives to customers of PGE and Pacific Power for installing solar electric systems. Pacific Power pays $0.75 to $1.25 per watt ($150,000 maximum) and PGE pays a standard incentive of $1.00 to $1.50 per watt DC (up to $200,000), for systems with a total combined capacity of up to 200 kW that are owned by the public entity. Non-taxable organizations using the "pass through" tax credit option (described below under programs sponsored by state government) may receive 33.5% of the eligible system cost, which is paid to the public entity out of the 50% Oregon Business Energy Tax Credit claimed by the private sector "pass through partner," on behalf of the project. The Solar Electric incentive is also available to a third-party system owner that installs and operates a solar electric system on the public facility property (typically engaging in a power purchase agreement with the facility). The system owner owns the project's green tags during the first five years of operation; Energy Trust then owns the green tags during years six through twenty.
PGE customers planning to directly own an installation larger than 200 kW are eligible for Energy Trust's Solar Electric for Business incentives of $0.75 to $1.25 per watt ($500,000 maximum per site, $600,000 maximum for multiple sites) for systems up to 800 kW.
The Solar Water Heating program provides incentives of $0.40/kWh for first-year savings to PGE and Pacific Power customers using electric water heating and $6.00/therm for first-year savings to NW Natural and Cascade Natural Gas customers using gas water heating, up to a maximum of 35% of project costs (typically 10-15%) for installation of solar hot water heating.
The Commercial Scale Wind program provides resource assessments, technical assistance and cash incentives for wind installations (single or multiple turbines) of up to 20 MW.
The Small Wind for Business program provides project development assistance (e.g., site assessments, feasibility studies, and grant writing assistance) as well as cash incentives of up to $100,000 (the lesser of $4,500/meter of rotor diameter or $4,500/rated kW) for small wind turbine installations (up to 100 kW) on school and other public sites that are at least one acre in size in locations with average wind speeds of at least 10 mph.
ETO's Biopower, Geothermal and Hydroelectric programs offer financial incentives based on a project's cost in comparison to the market value of the energy produced. The programs also provide project development support (e.g., feasibility studies, grant writing assistance, permitting and construction management) and may pay up to 50% (maximum $40,000) of the cost of hiring a consultant to provide technical assistance for these activities. In exchange for the incentives, Energy Trust asks for a negotiated share of the project's green tags.

The Oregon Solar Incentive Program is a pilot initiative available to electric customers of Pacific Power and PGE (under the name Solar Payment Option), offered as an alternative to existing (aforementioned) programs. Projects receiving incentives under this program are not eligible for state tax credits, net metering programs or solar incentives from Energy Trust of Oregon. Participants sign a 15-year agreement under which the utility pays incentives ($0.55/kWh for medium scale systems (10 - 100 kW), minus the customer's current retail kWh price), but only for electricity produced up to the customer's own use; excess generation will not be compensated. Program capacity is limited.

PGE's Net Metering Service provides utility bill credits for renewable on-site grid-connected electricity generation from wind, hydro, solar, fuel-cell technology, biogas or biomass systems of less than 2 MW. Customers who generate more power than they use in any given month will have no bill charges and the unused credit will be applied to future bills.

Eugene Water & Electric Board's (EWEB) Solar Electric Program offers customers two incentive options for PV solar installations: 1) net metering, which pays market rates for any excess generation that flows into the grid, and 2) direct generation for systems larger than 10 kW, which provides the option to sell all of the electricity generated to EWEB.

The City of Ashland's Resource Saving Programs offer incentives to businesses for installation of PV electric systems ($1.00 per watt, $7,500 maximum) and solar electric water heaters (rebate of up to $1,000 or a zero interest loan). For more information about these and other programs, contact Larry Giardina, giardin@ashland.or.us, 541-552-2065.

Using revenues generated from the sales of green tags, the Bonneville Environmental Foundation, a not-for-profit organization, accepts proposals for funding for renewable energy projects located in the Pacific Northwest. Any facility located in the Pacific Northwest (including Oregon) may participate.

Numerous small utilities in Oregon offer rebates and/or loans for solar water heating and/or photovoltaic installations. See the Database of State Incentives for Renewables and Efficiency (DSIRE) for additional information.

Are there energy efficiency programs sponsored by the state government?

The Oregon Department of Energy's Energy Loan Program (also known as SELP), provides low interest loans for projects located primarily in Oregon that save energy, produce energy from renewable sources, use recycled materials to produce products, or use alternative fuels. In addition, limited funds are available for energy evaluations for public buildings.

The Oregon Department of Energy also offers the Business Energy Tax Credit for investments in energy efficiency (e.g., HVAC, insulation, controls, and VFDs), recycling, renewable energy, fuel cells, transportation fuel efficiency, and alternative fuels. Public entities may take advantage of the tax credit via the "pass-through" option, by which the public entity must partner with an Oregon business that has a state tax appetite. The pass-through option allows a project owner to transfer the Business Energy Tax Credit to a private partner for a lump-sum cash payment. The tax credit for energy efficiency projects is 35% of the eligible project costs (the incremental cost of the system or equipment beyond standard practice), and 50% for renewable energy projects. The public entity payment rate is 25.5% of eligible project costs for the 35% tax credit and 33.5% for the 50% tax credit. The credit is taken over 5 years: 10% in the 1st and 2nd years and 5% each year thereafter. If full tax credit cannot be taken each year, the unused credit can be carried forward up to 8 years. Entities with eligible project costs of $20,000 or less may take the tax credit in one year.

What additional opportunities are available to me?

Pacific Northwest investor- and publicly-owned utilities, as well as public representatives, have banded together to offer energy efficiency market transformation initiatives under the auspices of the Northwest Energy Efficiency Alliance (NEEA), a non-profit organization. Federal customers should be aware of NEEA initiatives that could benefit their facilities, such as the Lighting Design Lab, and the Northwest Energy Education Institute.

Federal customers whose utilities have area-wide contracts through GSA (e.g., Idaho Power and Cascade Natural Gas), may be able to take advantage of 3rd-party financed energy efficiency projects called utility energy services contracts (UESCs). Information is available on GSA's Energy Center of Expertise Library Page. Federal facilities should contact their account executive to determine the level of each utility's participation.