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DEPARTMENT OF ENERGY

 

DIVISION 160

ESTABLISH A RENEWABLE ENERGY CERTIFICATE SYSTEM FOR THE
OREGON RENEWABLE PORTFOLIO STANDARD (RPS)

330-160-0005

Purpose

The purpose of these rules is to establish a system of renewable energy certificates to provide a means of compliance with the Oregon Renewable Portfolio Standard (RPS).

Stat. Auth.: ORS 469A.130
Stats. Implemented: ORS 469A.130 - 469A.145
Hist.: DOE 6-2008, f. & cert. ef 9-3-08

330-160-0015

Definitions

For the purposes of Oregon Administrative Rules, chapter 330, division 160, the following definitions apply unless the context requires otherwise:

(1) “Banked Renewable Energy Certificate” has the meaning in ORS 469A.005.

(2) “Bundled Renewable Energy Certificate” has the meaning in ORS 469A.005.

(3) “Compliance Year” has the meaning in ORS 469A.005.

(4) “Department” means the Oregon Department of Energy.

(5) “Director” means the Director of the Oregon Department of Energy.

(6) “Electricity Service Supplier” has the meaning in ORS 469A.005.

(7) “Electric Utility” has the meaning in ORS 469A.005.

(8) “Federal Columbia River Power System” (FCRPS) means the transmission system constructed and operated by Bonneville Power Administration (BPA) and the hydroelectric dams constructed and operated by the U.S. Army Corps of Engineers and the Bureau of Reclamation in Oregon, Washington, Montana and Idaho.

(9) “Generator representative” means an electricity generating facility’s owner, operator or WREGIS account holder.

(10) “High Water Mark Contract” means a power sales contract between a consumer-owned utility and BPA that contains a contract high water mark, and under which the utility purchases power from BPA at rates established by BPA in accordance with the tiered rate methodology.

(11) “Joint Operating Entity” means an entity that was lawfully organized under State law as a public body or cooperative prior to September 22, 2000, and is formed by and whose members or participants are two or more public bodies or cooperatives, each of which was a customer of BPA on or before January 1, 1999.

(12) “Multiple-fuel facility” means a facility that is capable of generating electricity using more than one type of fuel. A facility that uses fossil fuel for generator start-up but otherwise uses a single eligible resource and is not required to register in WREGIS as a multi-fuel generating unit, as defined by WREGIS, is not a multiple-fuel facility.

(13) “Oregon’s share” as used in ORS 469A.020(3), means the portion of Federal Columbia River Power System generation attributable to the Oregon load of hydroelectric efficiency upgrades that BPA provides to:

(a) Each consumer-owned utility serving load located in Oregon, pursuant to a High Water Mark Contract;

(b) Each Joint Operating Entity with retail utility members serving load located in Oregon, pursuant to a High Water Mark Contract; and

(c) Each investor-owned utility participating in the Residential Exchange Program that serves load located in Oregon.

(14) “Qualifying Electricity” has the meaning in ORS 469A.005.

(15) “Renewable Energy Certificate” (REC or Certificate) means a unique representation of the environmental, economic, and social benefits associated with the generation of electricity from renewable energy sources that produce Qualifying Electricity. One Certificate is created in association with the generation of one MegaWatt-hour (MWh) of Qualifying Electricity. While a Certificate is always directly associated with the generation of one MWh of electricity, transactions for Certificates may be conducted independently of transactions for the associated electricity.

(16) “Renewable Energy Source” has the meaning in ORS 469A.005.

(17) “Residential Exchange Program” means the arrangement, based on section 5(c) of the Pacific Northwest Electric Power Planning and Conservation Act, whereby regional utilities sell BPA an amount of power equal to their residential and small-farm load at their average system cost in exchange for federal electric power, and pass on the benefits to their residential and small-farm customers in the form of a bill credit.

(18) “RPS” means the Oregon renewable portfolio standard as established in ORS 469A.

(19) “Stranded electricity” means qualifying electricity that:

(a) Was generated between January 1, 2007, and March 4, 2011, by a generating unit that was registered in WREGIS on or before March 4, 2011; and

(b) Was reported to the Department on or before March 11, 2011.

(20) “Unbundled Renewable Energy Certificate” has the meaning in ORS 469A.005.

(21) “Vintage” means the month and year that qualifying electricity was created in accordance with WREGIS protocol.

(22) “WREGIS” means the Western Renewable Energy Generation Information System, which is the renewable energy certificate tracking and reporting system established by the California Energy Commission and the Western Governors’ Association and governed by the Western Electricity Coordinating Council for use by states and provinces throughout the western power interconnection.

Stat. Auth.: ORS 469A.130
Stats. Implemented: ORS 469A.130 - 469A.145
Hist.: DOE 6-2008, f. & cert. ef 9-3-08; DOE 11-2010(Temp), f. & cert. ef. 8-31-10 thru 2-26-11; DOE 1-2011, f. & cert. ef. 2-22-11; DOE 2-2011, f. & cert. ef. 3-4-11; DOE 11-2012, f. & cert. ef. 11-14-12; DOE 1-2014, f. & cert. ef. 2-10-14

330-160-0020

Establishment of Renewable Energy Certificate System

(1) Renewable energy certificates that are issued, monitored, accounted for and transferred by or through the regional renewable energy certificate system and trading mechanism known as the Western Renewable Energy Generation Information System (WREGIS) shall be the only renewable energy certificates that can be used by an electric utility or electricity service supplier to establish compliance with the Oregon Renewable Portfolio Standard (RPS).

(2) All entities that wish to demonstrate compliance or participate in the renewable energy certificate system associated with the Oregon RPS must establish and maintain accounts in good standing with the WREGIS renewable energy certificate system. These entities must comply with all information, data reporting and verification requirements of the WREGIS Operating Rules dated July 15, 2013, including costs required for compliance. These accounts must be established before January 1, 2009 or before the earliest vintage of Certificate to be used to comply with the Oregon RPS, whichever is later.

(3) All entities that wish to demonstrate compliance or participate in the renewable energy certificate system associated with the Oregon RPS must participate in the system in accordance with the WREGIS Operating Rules dated July 15, 2013. The Operating Rules for WREGIS are publicly available from the WREGIS web site at www.wregis.org.

Stat. Auth.: ORS 469A.130
Stats. Implemented: ORS 469A.130
Hist.: DOE 6-2008, f. & cert. ef 9-3-08; DOE 2-2011, f. & cert. ef. 3-4-11; DOE 1-2014, f. & cert. ef. 2-10-14

330-160-0025

Types of Renewable Energy Certificates

(1) A bundled or unbundled renewable energy certificate may be used to comply with the RPS when it is issued through the WREGIS renewable energy certificate system, and is otherwise consistent with the rules and requirements of the Oregon RPS. The Department will identify those generating facilities eligible for creation of Certificates that can be used to satisfy the Oregon RPS.

(2) Each bundled renewable energy certificate used to comply with the RPS must be supported by documentation demonstrating that one megawatt-hour of electricity that was associated with the bundled renewable energy certificate was delivered to the Bonneville Power Administration, to the transmission system of an electric utility or to another delivery point designated by an electric utility for the purpose of subsequent delivery to the electric utility.

(3) To demonstrate that a renewable energy certificate is bundled under Subsection (2) of this rule, an electric utility must either:

(a) Electronically affix to the certificate a valid North American Electric Reliability Corporation (NERC) electronic tagging number (“e-Tag”) or another unique identifier adopted by WREGIS or the Department, which demonstrates that one megawatt hour of electricity was delivered to a point described in Subsection (2) of this rule; or

(b) In a manner prescribed by the Department, submit documentation to the Department demonstrating that:

(A) The renewable energy certificate for the qualifying electricity was acquired by an electric utility or electricity service supplier by a trade, purchase or other transfer of electricity that includes the certificate that was issued for the electricity; or by an electric utility by generation of the electricity for which the certificate was issued; and

(B) The qualifying electricity associated with the bundled renewable energy certificate was initially delivered to a point described in Subsection (2) of this rule.

(4) An electric utility required to demonstrate compliance with the RPS through the use of bundled renewable energy certificates, and which demonstrates that a renewable energy certificate is bundled pursuant to 330-160-0025(3)(b), may be required to electronically affix to that certificate a unique identifier adopted by WREGIS or the Department.

(5) The Department may conduct verification audits or may designate a third party for verification services to review any documentation submitted under Subsection (3) of this rule for purposes of verifying compliance with the RPS.

(6) A bundled renewable energy certificate does not need to demonstrate that the electricity identified by the NERC e-Tag is qualifying electricity or that the originating source identified by the NERC e-Tag is a renewable energy source.

Stat. Auth.: ORS 469A.130
Stats. Implemented: ORS 469A.135 - 469A.145
Hist.: DOE 6-2008, f. & cert. ef 9-3-08; DOE 2-2011, f. & cert. ef. 3-4-11; DOE 1-2014, f. & cert. ef. 2-10-14

330-160-0030

Allowed Vintage of Renewable Energy Certificates

(1) The system of renewable energy certificates established through this rule may be used to comply with or participate in the Oregon RPS through the use of Certificates with a vintage of January 2007 or later.

(2) No renewable energy certificate that derives from the WREGIS renewable energy certificate system with a vintage before January 2007 will be eligible for compliance with the Oregon RPS.

(3) Banked renewable energy certificates with a vintage of January 2007 or later, both bundled and unbundled, may be held for future use within the WREGIS renewable energy certificate system to comply with the Oregon RPS.

(4) Generating facilities that produce qualifying electricity shall be eligible to receive certificates associated with generation beginning on January 1, 2007.

(5) Renewable energy certificates created by WREGIS that are associated with stranded electricity may be used to comply with the Oregon RPS.

Stat. Auth.: ORS 469A.130
Stats. Implemented: ORS 469A.130
Hist.: DOE 6-2008, f. & cert. ef 9-3-08; DOE 2-2011, f. & cert. ef. 3-4-11; DOE 1-2014, f. & cert. ef. 2-10-14

330-160-0035

Application Process

(1) To apply for certification by the Department that electricity from a generating facility qualifies for the Oregon RPS, the generator representative must submit to the Department a completed general application form and, for hydroelectric, hydro efficiency, hydrogen, biomass, and multiple-fuel facilities, the applicable supplemental form available on the Department’s website.

(2) The Department may require from the applicant supporting documentation such as photographs of the facility, records of generating equipment purchases, records of installation or service work orders, and an explanation of the relationship between the applicant and the WREGIS account holder.

(3) The Department will determine whether the facility meets the requirements in ORS 469A.010 to 469A.025 and these rules for generating qualifying electricity and will provide written notification of its determination to the applicant.

(a) If the Department determines that the facility meets the requirements for generating qualifying electricity, it will certify the facility as Oregon RPS-eligible in WREGIS and provide the Oregon RPS certification number and the first eligible REC vintage date in writing to the applicant.

(b) If the Department determines that the facility does not meet the requirements for generating qualifying electricity, it will provide the reasons for its determination in writing to the applicant.

(c) If the Department lacks information necessary to make a determination, it will not certify the facility in WREGIS and will provide the reasons it is unable to make a determination in writing to the applicant.

Stat. Auth.: ORS 469A.130
Stats. Implemented: ORS 469A.130 - 469A.145
Hist.: DOE 1-2014, f. & cert. ef. 2-10-14

330-160-0037

Confidential Treatment of Information

A generator representative may request confidential treatment of information provided to the Department pursuant to OAR 330-010-0005 through 330-010-0030.

Stat. Auth.: ORS 469A.130
Stats. Implemented: ORS 469A.130 - 469A.145
Hist.: DOE 1-2014, f. & cert. ef. 2-10-14

330-160-0038

Expiration of Oregon RPS Certification

Except as otherwise indicated in these rules, a facility’s Oregon RPS certification will not have an expiration date.

Stat. Auth.: ORS 469A.130
Stats. Implemented: ORS 469A.130 - 469A.145
Hist.: DOE 1-2014, f. & cert. ef. 2-10-14

330-160-0040

Low-impact Hydro Electric Facilities

(1) The Department recognizes the Low Impact Hydropower Institute (LIHI) as the national agency to certify hydroelectric facilities as low impact for purposes of the Oregon RPS. A hydroelectric generation facility with current certification from LIHI and that complies with other requirements of ORS 469A and these rules is eligible for the Oregon RPS.

(2) For a low impact hydroelectric facility to remain eligible for the Oregon RPS, the generator representative must maintain a current LIHI certificate and provide the Department a copy of its LIHI certificate upon renewal.

(3) The Department will enter into WREGIS an expiration date for a low impact hydroelectric facility’s Oregon RPS certification that matches the facility’s LIHI certificate expiration date.

(4) The Department will provide written notice to a generator representative at least 60 days before its low impact hydroelectric facility’s Oregon RPS certification is scheduled to expire.

(5) Upon receiving a copy of the renewed LIHI certificate from the generator representative, the Department will update the facility’s Oregon RPS certification expiration date in WREGIS with the new LIHI certificate expiration date.

Stat. Auth.: ORS 469A.025, OL 2010, Ch. 71(SS)
Stats. Implemented: ORS 469A.025
Hist.: DOE 11-2010(Temp), f. & cert. ef. 8-31-10 thru 2-26-11; DOE 1-2011, f. & cert. ef. 2-22-11; DOE 1-2014, f. & cert. ef. 2-10-14

330-160-0050

Hydroelectric Facility Upgrades

(1) Efficiency upgrades from an Oregon RPS qualifying hydroelectric facility refers to additional incremental qualifying electricity production at an existing hydroelectric facility due to upgrades to existing generators, turbines and other Department-approved equipment changes. Efficiency upgrades do not include increased generation achieved through increased impoundments or increased appropriation or diversions of water.

(2) The generator representative must estimate the percentage increase in efficiency of the facility’s hydroelectric power production due to an efficiency upgrade and provide that estimate to the Department via the supplemental application form provided by the Department for hydroelectric efficiency upgrades, with supporting documentation substantiating the estimate.

(3) The Department will determine the eligibility of incremental hydroelectric power production at an existing hydroelectric facility for purposes of Oregon RPS compliance.

(a) Eligibility is based solely on any operational changes at the facility that are directly associated with efficiency upgrades as defined in subsection (1) of this section.

(b) The determination of the percentage increase in the efficiency of hydroelectric power production as described in subsection (1) of this section shall be based on the best available evidence, including but not limited to, representations by the Federal Energy Regulatory Commission or, for federal projects, by the authorized power marketing agency or agencies with jurisdiction over the federal projects.

(c) The annual electricity production eligible for RPS-eligible renewable energy certificates is the annual hydroelectric power production at the facility multiplied by the percentage increase in efficiency from paragraph (b) of this subsection.

(d) The Department will provide to WREGIS the increment of percentage increase in hydroelectric power production attributable to the facility efficiency upgrades that is RPS-eligible.

(4) Capacity upgrades to a hydroelectric project are not eligible under ORS 469A.025(4)(b) for the Oregon RPS. Capacity upgrades to a hydroelectric project include any increase in generating capacity other than an increase from an efficiency upgrade.

(5) For hydroelectric efficiency upgrades made to a Federal Columbia River Power System facility consistent with this section, only the incremental generation attributable to Oregon’s share, per ORS 469A.020(3), is eligible for the Oregon RPS.

(a) Utilities or Joint Operating Entities that make sales of electricity to retail customers or members in more than one state may receive Oregon’s share only for their Oregon load.

(b) The Department will certify in WREGIS as eligible for compliance with the Oregon RPS those RECs associated with Oregon’s share, as may be adjusted by the Department.

(6) Effective January 1, 2013, annually and no later than December 31, the Department will publish a list of electric utilities that make sales of electricity to retail customers in more than one state. The list will indicate the most recent proportion of retail load that is located in Oregon, or, for investor-owned utilities, the most recent proportion of eligible Residential Exchange Load located in Oregon.

(a) Annually and no later than October 1, the Department may request that a consumer owned utility that serves retail customers in more than one state provide its total retail load and state-by-state retail load percentages to the Department. Upon such request, the consumer owned utility must provide such retail load information by November 15.

(b) Annually and no later than October 1, the Department may request an investor-owned utility that serves retail customers in more than one state provide its total eligible Residential Exchange Load and state-by-state Residential Exchange Load percentages and values to the Department. Upon such request, the investor-owned utility must provide such retail load information by November 15. After the Department receives percentages and values, there may be a period of reconciliation.

(c) If no submission is received or no reasonably current information is available, the Department will not publish load information for that utility.

(7) Annually, on or around April 1, the Department may request that BPA provide the Department with a copy of the certificate transfer directions that BPA provides to WREGIS.

(8) After the fifth anniversary of the date the Department determines that a hydroelectric efficiency upgrade is eligible for the Oregon RPS, the Department will request from the generator representative a review of the performance of the efficiency upgrade. Except as provided in subsection (9) of this section, within six months of the Department’s request, the generator representative must provide to the Department a new estimate of the facility’s percentage increase in efficiency attributable to the efficiency upgrade with supporting documentation.

(9) The Department may grant an exemption from the review described in subsection (8) of this section to any facility for which the generator representative, within six months of the Department’s request:

(a) Demonstrates to the Department’s satisfaction that the customer generator’s estimated percentage increase in efficiency is supported by historical data such that it represents the long term average; and

(b) Signs a form, provided by the Department, attesting that the physical equipment and operation of the facility has not changed in a manner that would affect the percentage increase in efficiency attributable to the efficiency upgrade since that efficiency increment was established.

(10) If the Department determines that the percentage increase in efficiency attributable to the efficiency upgrade has changed from the facility’s current RPS certification, it will revise the increment in WREGIS accordingly and notify the generator representative of the revised increment in writing. The revised increment in WREGIS will apply to all electricity generated on or after the date WREGIS is updated with the revised increment.

Stat. Auth.: ORS 469A.005 - 469A.210 & 469.040
Stats. Implemented: ORS 469A.005 - 469A.210
Hist.: DOE 2-2011, f. & cert. ef. 3-4-11; DOE 11-2012, f. & cert. ef. 11-14-12; DOE 1-2014, f. & cert. ef. 2-10-14

330-160-0060

Periodic Review of Multiple-fuel facilities

(1) Multiple-fuel facilities are subject every three years to a review of the percentage of the facility’s electricity generation that is allocated to RPS-eligible fuels.

(2) The Department will enter into WREGIS an expiration date for a multiple-fuel facility’s Oregon RPS certification that is three years from the date the Department completes its review of the percentage of the facility’s electricity generation that is allocated to RPS-eligible fuels.

(3) The Department will provide written notice to a generator representative at least 6 months before its multiple-fuel facility’s Oregon RPS certification is scheduled to expire.

(4) For a facility to remain RPS-eligible, the generator representative must complete one of the following actions prior to the facility’s Oregon RPS certification expiration date:

(a) Sign a form provided by the Department attesting that the physical equipment and operation of the facility has not changed in a manner that would affect the facility’s RPS-eligible fuel allocation since that RPS-eligible fuel allocation was established; or

(b) Provide to the Department an updated calculation of the facility’s RPS-eligible fuel allocation with supporting documentation requested by the Department.

(5) Within 30 days of receiving the information provided by the generator representative pursuant to subsection (4) of this section, the Department will update WREGIS to extend the multiple-fuel facility’s Oregon RPS certification expiration date by three years.

(6) If the Department determines that the percentage of the facility’s electricity generation allocated to RPS-eligible fuels has changed from the facility’s current RPS certification, the Department will revise the facility’s RPS-eligible fuel allocation in WREGIS accordingly and notify the generator representative of the revised fuel allocation in writing.

Stat. Auth.: ORS 469A.130
Stats. Implemented: ORS 469A.130 - 469A.145
Hist.: DOE 1-2014, f. & cert. ef. 2-10-14

330-160-0070

Required Notice of Facility Changes

For a facility to remain RPS-eligible, the generator representative must notify the Department of any change to its generating facility that constitutes a change to any of the following fields in the facility’s static data, as defined by WREGIS: multi-fuel generator indicator, generation technology, fuel type, fuel source. The generator representative must notify the Department of any such change within 30 days of updating the facility’s static data in WREGIS by providing a copy of the facility’s updated WREGIS static data to the Department. If the Department determines that a change in a facility’s static data affects the facility’s RPS eligibility, the Department will revise the facility’s RPS eligibility in WREGIS accordingly and notify the generator representative of the revision in writing.

Stat. Auth.: ORS 469A.130
Stats. Implemented: ORS 469A.130 - 469A.145
Hist.: DOE 1-2014, f. & cert. ef. 2-10-14

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