Energy-Efficiency Funds and Demand Response Programs, Oregon

Updated July 2007

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

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 surcharge for customers of Portland General Electric (PGE) and PacifiCorp. Total annual funding is currently just over $40 million, of which about $28 million is directed towards energy conservation and efficiency. To receive benefits, customers must be served by Portland General Electric (PGE), Pacific Power, NW Natural, or Cascade Natural Gas in Oregon 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 non-profit organization. Programs of interest to federal customers include the following:

The Building Efficiency Program provides a range of services for energy efficiency projects in existing buildings. These include free audits, connections with contractors, rebates (for energy-efficient lighting, motors, and air conditioning), financial incentives (for custom energy efficiency projects), technical assistance (with identifying energy efficiency opportunities and estimating energy savings), and commissioning of complex energy efficiency measures.
The New Building Efficiency Program targets energy-efficient new construction. The program provides financial incentives for energy efficiency measures such as energy-efficient lighting, heating, and air-conditioning equipment, as well as efficient design elements, systems, and construction materials. Under different tracks, incentives range from $1,000 (e.g., the ENERGY STAR® Track) to $200,000 (e.g., USGBC LEED® NC Track).
The Building Tune-up and Operations Program helps facility managers identify operational savings and reduce energy costs. It provides financial incentives for boiler tune-ups and building retro-commissioning.

What utility energy efficiency programs are available to me?

The City of Eugene offers rebate programs for HVAC, lighting, equipment/window, 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 for energy projects.

The Bonneville Power Administration (BPA) offers energy efficiency retrofits to federal agencies under its Federal Conservation Acquisition Program. In 2006, program funding was renewed through September 2009. Under this program, BPA identifies and implements energy-saving measures at federal facilities. Federal facilities located in "load following areas"—areas that are served 100% with BPA power—receive all design, engineering support services and contracting free of charge, as well as financial incentives. In addition a financing service 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 BPA's services but must reimburse BPA for its costs. Interested federal agencies can contact Frank Brown (206-220-6774) for more information.

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

Both PGE and PacifiCorp 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 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 the 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 participants' generators during periods of peak demand. In exchange, PGE will pay for the fuel and maintenance of the generators, as well as any necessary control and communications hardware.

The Bonneville Power Administration is offering 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?

The Database of State Incentives for Renewable Energy (DSIRE) provides information on programs that offer incentives for renewable distributed generation. Several programs may of interest to federal customers:

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.
The Energy Trust of Oregon provides technical assistance and cash incentives for commercial facilities installing photovoltaic systems through its Solar Electric Buy-Down program. The incentives are $1/watt for Pacific Power customers and $1.50/watt for PGE customers; the maximum incentive is $35,000 per site. The Trust's Solar Water Heating Buy-Down initiative offers cash incentives of $0.40/kWh of electricity or $6/therm of gas saved in the first year of operation, up to 35% of total system cost, to commercial customers who install solar hot water systems.
The Energy Trust also administers the Energy Trust Open Solicitation, which provides funding to cover the "above market" costs of renewably generated power in newly installed systems relative to acquisition of conventional power. In 2007, this program is only offered to customers within, or delivering power to, Pacific Power's or PGE's service territories.
Numerous small utilities in Oregon offer rebates and/or loans for solar water heating and/or photovoltaic installations. Consult the DSIRE site (above) for eligibility and terms for your location.

Are there energy efficiency programs sponsored by the state government?

The Oregon Department of Energy offers the Energy Loan Program, which provides low interest loans for energy efficiency projects. For public facilities with annual energy costs greater than $10,000, free energy analyses may also be available through the program.

The Oregon Department of Energy also offers the Business Energy Tax Credit for investments in energy conservation, recycling, renewable energy resources, and less-polluting transportation fuels. However, in cases where 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 or resident who has a state tax liability. The pass-through option allows a project owner to transfer the 35 percent 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 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. Those with eligible project costs of $20,000 or less may take the tax credit in 1 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 impact their facilities, such as commissioning of public buildings, building operator certification, efficient building practices, Lighting Design Lab, Northwest Energy Education Institute, Compressed Air Challenge, and Motor Drive Power.

Federal customers whose utilities have area-wide contracts with GSA and, by extension, all other federal agencies (e.g., Idaho Power, Northwest Natural Gas, and Cascade Natural Gas), may take advantage of additional energy efficiency opportunities. Federal facilities should contact their account executive to determine the level of participation by their local utility.