Oregon Bulletin
Rule Caption: In
the Matter of a Rulemaking Regarding Greenhouse Gas Emissions Requirements.
Adm. Order No.: PUC 11-2011
Filed with Sec. of State: 11-15-2011
Certified to be Effective: 11-15-11
Notice Publication Date: 10-1-2011
Rules Adopted: 860-085-0005, 860-085-0010, 860-085-0020, 860-085-0030, 860-085-0040,
860-085-0050
Subject: These rules result from legislation enacted by the
2009 Legislative Assembly (Senate Bill 101), codified in ORS 757.522 through
757.538, regarding the greenhouse gas emissions standard applicable to electric
companies, electricity service suppliers, and natural gas companies. The rules
govern the implementation of the greenhouse gas emissions standards and
establish the restriction on long-term financial commitments, rate impact
estimating, and reports.
Rules Coordinator: Diane Davis—(503) 378-4372
860-085-0005
Scope and
Applicability of Greenhouse Gas Emissions Requirements
(1) OAR
860-085-0005 through 860-085-0050 (the “Greenhouse Gas Emissions Requirements”)
govern implementation of the greenhouse gas emissions standard for electric
companies and electricity service suppliers, under ORS 757.522 through 757.538,
and natural gas companies.
(2) Upon
request or its own motion, the Commission may waive any of the Greenhouse Gas
Emissions Requirements if good cause is shown.
Stat.
Auth.: ORS 756.040 & 757.538
Stats.
Implemented: 757.538
Hist.: PUC
11-2011, f. & cert. ef. 11-15-11
860-085-0010
Definitions
(1) As used
in OAR 860-085-0010 through 860-085-0050:
(a) “Baseload
electricity” has the meaning given that term in ORS 757.522.
(b) “Carbon
dioxide equivalent” means a unit of measurement that allows the effect of
different greenhouse gases and other factors to be compared using carbon
dioxide as a standard unit for reference.
(c) “Cogeneration
facility” means a facility that produces electric energy and steam or other
forms of useful thermal energy (such as heat) by cogeneration that is used for
industrial, commercial, heating, or cooling purposes.
(d) “Commission”
has the meaning given that term in ORS 756.010.
(e) “Electric
company” has the meaning given that term in ORS 757.600.
(f) “Electricity
service supplier” has the meaning given that term in ORS 757.600.
(g) “Generating
facility” has the meaning given that term in ORS 757.522.
(h) “Greenhouse
gas” has the meaning given that term in ORS 468A.210.
(i) “Greenhouse
gas emissions” means gaseous emissions expressed as a carbon dioxide
equivalent.
(j) “Greenhouse
gas emission factors” means the factors, and procedure for use of these
factors, as published in United States Environmental Protection Agency
publication AP-42 Compilation of Air Pollutant Emission Factors, 2009 Update.
(k) “Long-term
financial commitment” has the meaning given that term in ORS 757.522.
(l) “Low-carbon
emissions resource” means a generating facility with a greenhouse gas emission
rate that is no more than the greenhouse gas emissions standard.
(m) “Natural
gas company” has the meaning given that term in ORS 772.610.
(n) Useful
thermal energy” means kilowatt hours (kWh) of energy actually sent to be used
in a process (whether it be in the form of steam, water, air, products of
combustion, or product) net of the kWh of energy discharged from the process as
waste (whether it be in the form of steam, water, air, or products of
combustion).
(2) As used
in ORS 757.522 through 757.536:
(a) “Combined-cycle
natural gas generating facility” means a generating facility that employs one
or more combustion turbine generators (gas turbine) fueled by natural gas to
generate electricity, and one or more gas turbine exhaust heat recovery steam
generators producing steam for generation of additional electricity using one
or more steam turbine generators (steam turbine).
(b) “Commercially
available” means available for purchase and in operation in the United States
at no less than 80 percent of rated output (adjusted for the elevation and
ambient temperature at the installed location) for no less than 7000 hours
during the preceding year.
[Publication:
Publications referenced are available from the agency.]
Stat.
Auth.: ORS 756.040 & 757.538
Stats.
Implemented: 757.538
Hist.: PUC
11-2011, f. & cert. ef. 11-15-11
860-085-0020
Greenhouse
Gas Emissions Standard Applicable to Electric Companies and Electricity Service
Suppliers
Electric
companies and electricity service suppliers will be given an opportunity to
comment regarding a proposed modification of the greenhouse gas emissions
standard. Electric companies and electricity service suppliers must consider in
their comments the effects of modifying the greenhouse gas emissions standard
on their system reliability and overall costs to their electricity consumers in
this state.
Stat.
Auth.: ORS 756.040 & 757.538
Stats.
Implemented: 757.538
Hist.: PUC
11-2011, f. & cert. ef. 11-15-11
860-085-0030
Emissions
Standard-Based Restrictions on Long-Term Financial Commitments by Electric
Companies or Electricity Service Suppliers
(1) Unless
the Commission has already made a determination under ORS 757.536(b)(3), an
electric company or electricity service supplier must demonstrate to the
Commission that the baseload electricity acquired under a long-term financial
commitment is produced by a generating facility that complies with the
greenhouse gas emissions standard:
(a) For
electric companies, the demonstration required in this section must be made
when the electric company first seeks recovery of costs of a long-term
financial commitment.
(b) For
electricity service suppliers, the demonstration required in this section must
be made when the electricity service supplier first seeks certification renewal
after making a long-term financial commitment.
(2) For
electricity supplied from long-term financial commitments for which emissions
can readily be determined with specificity, the demonstration required in
section (1) of this rule for those sources must use the emissions calculation
procedures provided in OAR 340-215-0010 through 340-215-0060, or greenhouse gas
emission factors.
(3) For the
demonstration required in section (1) of this rule, electric companies and
electricity service suppliers must identify long-term financial commitments for
which emissions cannot readily be determined with any specificity. The electric
companies and electricity service suppliers must propose for approval by the
Commission the greenhouse gas emissions rate to be applied to these sources.
(4)
Electric companies and electricity service suppliers may submit to the
Commission for determination under ORS 757.531(2)(c) a plan for a generating
facility to be a low-carbon emissions resource.
Stat.
Auth.: ORS 756.040 & 757.538
Stats.
Implemented: 757.538
Hist.: PUC
11-2011, f. & cert. ef. 11-15-11
860-085-0040
Commission
Review of Plans and Rates to Ensure Compliance with Greenhouse Gas Emissions
Standard Rules
ORS
757.536(1) does not apply to a facility that meets one or more of the
requirements for exemption set forth by ORS 757.531(2).
Stat.
Auth.: ORS 756.040 & 757.538
Stats.
Implemented: 757.538
Hist.: PUC
11-2011, f. & cert. ef. 11-15-11
860-085-0050
Rate Impact
Estimating and Reports
(1)
Electric companies and natural gas companies must submit a report to the
Commission by July 1 of even numbered years, beginning in 2012, presenting
estimates of, and analysis methods used and assumptions made in estimating the
impacts to customer rates for meeting the following Oregon energy consumption
based greenhouse gas emission reduction goals by January 1, 2020:
(a) Ten
percent below 1990 levels, under ORS 468A.205; and
(b) Fifteen
percent below 2005 levels. The rate impacts must be presented as the percent of
change compared to a base case with no greenhouse gas emission reduction goals.
(2)
Electric companies and natural gas companies must use analysis methods and
assumptions that are technically and economically feasible, and that contain
all life-cycle costs.
(3)
Electric companies and natural gas companies must include a calculation of
their Oregon energy consumption based greenhouse gas emissions for 1990
(estimated actual), 2005 (estimated actual) and 2020 (projected) in the report
required in section (1) of this rule.
(4) For
electric companies the calculation required in section (3) of this rule must:
(a) Utilize
greenhouse gas emission factors for the specific generating technology used at
each electric company’s own generating facilities. An electric company’s own
generating facilities include company-owned resources and wholesale purchases
from specific generating units, less wholesale sales from those specific
generating units.
(b) Utilize
the greenhouse gas emission rate proposed by the electric company and approved
by the Commission for net market purchases, standard offer sales, and
electricity service suppliers where generating technology cannot readily be
determined with specificity.
(5) For
natural gas companies the calculation required in section (3) of this rule must
reflect greenhouse gas emissions due to all natural gas company operations,
activities and facilities.
(6) The
Commission will develop estimates of the rate impacts for electric companies
and natural gas companies to meet the following alternative greenhouse gas
emission reduction goals for 2020:
(a) Ten
percent below 1990 levels, as specified in ORS 468A.205; and
(b) Fifteen
percent below 2005 levels.
(7) The
Commission will submit a report presenting the estimates and explaining the
analysis used to develop the estimates to the appropriate interim committee of
the Legislative Assembly prior to November 1 of each even-numbered year.
(8)
Sections (1) through (7) of this rule are repealed on January 2, 2020.
Stat.
Auth.: ORS 756.040 & 2009 OL Ch. 751 § 9
Stats.
Implemented: 757.538 & 2009 OL Ch. 751 § 9
Hist.: PUC
11-2011, f. & cert. ef. 11-15-11
Notes
1.) This online version of the OREGON BULLETIN is provided for convenience of reference and enhanced access. The official, record copy of this publication is contained in the original Administrative Orders and Rulemaking Notices filed with the Secretary of State, Archives Division. Discrepancies, if any, are satisfied in favor of the original versions. Use the OAR Revision Cumulative Index found in the Oregon Bulletin to access a numerical list of rulemaking actions after November 15, 2010.
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