Energy Incentive Programs, Oregon
Updated November 2009
Below you will find questions and answers regarding Oregon's utility energy efficiency programs, including options for load management, demand response, and distributed energy resources, and information about state-sponsored energy efficiency programs.
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 2008 budget was more than $77 million (including low-income and residential programs). To receive benefits, 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.
The public purpose funds for electricity and natural gas efficiency are administered by the Energy Trust of Oregon, a nonprofit organization. Federal customers can find the programs that apply to their particular project and building type by selecting from the drop-down menus within the Public + Nonprofit section. Rebate programs for existing buildings and new construction projects include heating and cooling, insulation, lighting and lighting controls, motors and drives, solar pool heating, and solar hot water.
What utility energy efficiency programs are available to me?
The City of Eugene offers rebate programs for HVAC, lighting, windows, and motor retrofits for both existing and new buildings. Technical assistance for life-cycle cost analysis of conservation measures is also available along with low-interest loans and tax credits for energy efficiency projects.
The City of Ashland Electric Department Commercial Conservation Program provides rebates and zero-interest loans to commercial customers for lighting retrofits and other resource-saving measures. Contact Larry Giardina at giardin@ashland.or.us or 541-552-2065 for a free site analysis.
Columbia River Public Utility District offers energy efficiency rebates for lighting retrofits, weatherization, heat pumps, water heating, and appliances.
Bonneville Power Administration (BPA) offers numerous energy conservation programs:
BPA provides funding for various energy efficiency activities to utilities in its service territory through its Conservation Rate Credit (CRC) and the Energy Conservation Agreement (ECA). As of September 30, 2009, the ECA replaces the Conservation Acquisition Agreement (CAA).
BPA's Technical Services Proposal program 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 technical service proposal 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 for energy-efficient lighting is available through public utilities participating in the BPA program.
BPA's Energy Smart Design program offers incentives for new, small offices via participating BPA utilities.
BPA offers energy efficiency retrofits to Federal agencies under its Federal Conservation Acquisition Program. In 2009, program funding was renewed through September 2011. Under this program, BPA identifies and implements energy-saving measures at Federal facilities. Federal facilities located in areas that are served 100% with BPA power receive all design, engineering support, and contracting services free of charge, as well as financial incentives. In addition, a financing option is available to help Federal agencies meet cost-sharing requirements. Projects at sites served by utilities procuring only a portion of their power from BPA may still take advantage of services, but must reimburse BPA for its costs. Interested Federal agencies can contact Frank Brown at febrown@bpa.gov or 206-220-6774 for more information.
Avista Utilities' Oregon Energy Partners Incentive Program provides partial funding towards the installation of natural gas efficiency measures for new construction or existing buildings. Rebate amounts cover up to 50% of the engineering study and up to the lesser of either 50% of the incremental measure cost or an amount calculated from the energy savings of the project and its value to Avista Utilities. This may range from $0.13 to $4.11 per therm of the first-year natural gas savings. Funding is limited to end users where natural gas is the sole fuel source (420 and 424 rates).
Forest Grove Light and Power works with commercial and industrial customers to identify energy conservation measures and provide incentives based on the energy savings.
Lane Electric Cooperative's Weatherization 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 Conservation Service Loan program offers financing for pre-approved conservation measures. Financing amounts can range from $500 to $10,000. Customers can choose financing terms of 12, 24, 36, 48, or 60 months.
Midstate Electric Cooperative offers design assistance and rebates for new commercial construction projects and financial incentives for efficiency upgrades, including lighting, motors, HVAC and insulation.
Oregon Trail Electric Consumers Cooperative (OTECC) offers rebates for lighting retrofits.
Puget Sound Energy provides a number of rebates for energy efficiency upgrades, including lighting, HVAC, motors, and other equipment.
Salem Electric offers its Energy Smart Design Program, which provides incentives for efficient HVAC, windows, lighting, and building envelope improvements in existing buildings as well as 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.
Springfield Utility Board offers several financial incentives, including:
An energy smart design program for new office construction ($0.50 per square foot for projects under 100,000 square feet) and existing buildings.
An energy savings plan for industrial processes and motors.
Lighting rebate programs for existing buildings and new construction.
Idaho Power offers several efficiency programs for business customers, including:
The Easy Upgrades program offers incentives of up to $100,000 per site per year for qualifying energy-saving projects in commercial and industrial buildings. Eligible projects cover typical improvements to lighting, HVAC, motors and controls, building shell, plug loads, and more.
The Custom Efficiency for Complex Projects program provides large commercial and industrial customers financial incentives based on $0.12 per kWh savings for up to 70% of the project cost.
The Building Efficiency program provides an incentive of up to $100,000 per project to offset a significant share of additional capital expenses for new construction projects. Pre-application is required.
What load management/demand response options are available to me?
Both PGE and PacifiCorp/Pacific Power offer Internet-based demand reduction bidding initiatives known as the Demand Buy Back and Energy Exchange. The utility posts a price for each hour that a load reduction is needed, and customers may respond by pledging to curtail a specified amount of load. Participants are paid the posted price per unit of measured energy reduction in 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 1 MW of connected load.
PGE customers with standby generators of at least 1 MW capacity may participate in the Dispatchable Standby Generation program in which PGE has the option to operate participant generators during periods of peak demand. In exchange, PGE pays for fueling and maintaining the generators, as well as any necessary control and communications hardware.
The Bonneville Power Administration offers the Demand Exchange (DEMX) program, an Internet-based load reduction bidding program. Participants are alerted to hourly, one-day, and two-day price signals associated with peak load events and are able to post their willingness to participate at a price. While eligibility is limited to participants able to curtail and/or generate at least 1 MW, BPA assists customers with smaller loads to aggregate with other, similarly situated customers to meet this criterion.
What distributed energy resource options are available to me?
Using revenues generated from the sales of Green Tags, the Bonneville Environmental Foundation, a not-for-profit organization, accepts funding proposals for renewable energy projects located in the Pacific Northwest.
The Energy Trust administers the Energy Trust Open Solicitation, which provides resources and cash incentives to help install renewable electric power generation systems that use emerging technologies and to perform feasibility studies to assess project potential. This program is only offered to customers within, or delivering power to, Pacific Power or PGE service territories. Contact Energy Trust for information.
Energy Trust's Solar Electric program for existing public buildings and new buildings offers cash incentives to customers of PGE and Pacific Power for installing solar electric systems. Oregon requires public entities to dedicate 1.5% of the total cost of a public improvement project on solar technology for both renovations and new construction. Pacific Power pays $1.15 to $1.75 per Watt ($230,000 maximum) for systems up to 200 kW. PGE pays a standard incentive of $1.40 to $2.00 per Watt DC (up to $280,000) for systems with a total combined capacity of up to 200 kW. PGE also offers a multi-site incentive of $1.00 per Watt DC for systems up to 400 kW at a single site ($400,000 maximum) and combined capacity of up to 800 kW at multiple sites ($800,000 maximum).
The Energy Trust Small-Scale Wind program provides resources and cash incentives of up to $60,000 for small wind turbine installations on schools and other public sites that are at least one acre in size in locations with wind speeds of at least 10 mph.
For facilities that already have small solar photovoltaic (PV) systems installed, the Northwest Solar Cooperative, managed by Solar Oregon through arrangements with the Bonneville Environmental Foundation, purchases Green Tags or renewable energy credits (RECs) from entities that produce power through a grid-connected solar PV system of up to 50 kW.
Eugene Water & Electric Board's (EWEB) Solar Electric Program offers customers two incentive options for PV solar installations. The first program surrounds net metering and pays market rates for any excess generation that flows into the grid. The second surrounds direct generation for systems larger than 10 kW. Both programs provide the option to sell all of the electricity generated to EWEB.
The City of Ashland Conservation Division offers incentives for installation of PV electric systems ($1 per Watt up to $10,000 for businesses) and solar electric water heaters (rebate of up to $1,000 or a zero-interest loan). For more information, contact Larry Giardina at giardin@ashland.or.us or 541-552-2065.
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 Renewable Energy (DSIRE) for additional information on programs that offer incentives for renewable distributed generation.
Are there energy efficiency programs sponsored by the state government?
The Oregon Department of Energy's Energy Loan Program provides low-interest loans for projects 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 conservation, recycling, renewable energy resources, fuel cells, transportation fuel efficiency, and alternative fuels. However, for cases in which a public entity owns the project, this tax credit can be used as a pass-through option where the public entity needs to partner with an Oregon business that has a state tax liability. The pass-through option allows a project owner to transfer the 35% Business Energy Tax Credit to a private partner for a lump-sum cash payment. The tax credit is 35% of the eligible project costs (the incremental cost of the system or equipment beyond standard practice). The credit is taken over five years with 10% in the first and second years and 5% each year thereafter. If full tax credit cannot be taken each year, the unused credit can be carried forward up to eight years. Those 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 nonprofit organization. Federal customers should be aware of NEEA initiatives that could benefit their facilities, such as commissioning of public buildings, building operator certification, efficient building practices, Lighting Design Lab, Northwest Energy Education Institute, and Compressed Air Challenge.
Federal customers whose utilities have area-wide contracts through the General Services Administration (GSA) (e.g., Idaho Power and Cascade Natural Gas) may be able to take advantage of third-party financed energy efficiency projects called utility energy service contracts (UESCs). Information is available through the GSA Energy Center of Expertise Library. Federal facilities should contact their account executive to determine the level of each utility's participation.
NOTE: Energy efficiency funds and demand response programs are updated at least annually. Please contact the FEMP webmaster if changes are needed between updates.