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83rd OREGON LEGISLATIVE ASSEMBLY--2025 Regular Session
Enrolled
House Bill 2066
Introduced and printed pursuant to House Rule 12.00. Presession filed (at the request of House In-
terim Committee on Climate, Energy, and Environment for Representative John Lively)
CHAPTER .................................................
AN ACT
Relating to microgrids; and prescribing an effective date.
Be It Enacted by the People of the State of Oregon:
SECTION 1.
Section 2 of this 2025 Act is added to and made a part of ORS chapter 757.
SECTION 2. (1) As used in this section:
(a) “Community-based organization” means an organization with demonstrated efficacy
that is representative of a community or specific segments of a community and serves to
meet the community’s needs.
(b) “Community microgrid” means a microgrid that is located within a geographical area
that a local government designates as a microgrid zone under section 7 of this 2025 Act.
(c) “Electric company” has the meaning given that term in ORS 757.600.
(d) “Front-of-meter” means the utility side of a transmission or distribution system in
reference to a customer’s meter.
(e) “Microgrid” means a group of interconnected loads and distributed energy resources
within clearly defined electrical boundaries that functions as a single controllable system,
irrespective of whether the microgrid is operating independently of or in conjunction with
an electric grid.
(f) “Microgrid operator” means an entity that is identified as having responsibility for
overseeing the coordination of a microgrid’s interconnected loads and distributed energy re-
sources and representing the interests of the microgrid participants in interactions with an
electric company.
(2) The Public Utility Commission shall conduct an investigation and establish a regula-
tory framework for allowing the ownership, deployment and use of microgrids and commu-
nity microgrids within the service territories of electric companies.
(3) The regulatory framework established under this section must:
(a) Take into consideration the benefits and constraints of deploying microgrids and
community microgrids.
(b) Take into consideration the role of microgrids and community microgrids in sup-
porting economic growth, innovations around zero emissions energy and reliable electricity
service.
(c) Take into consideration different approaches to designing, deploying and operating
microgrids or community microgrids that serve a single customer or multiple customers.
(d) Provide for interconnection standards and requirements.
(e) Provide for safety and performance standards.
Enrolled House Bill 2066 (HB 2066-B) Page 1
(f) Utilize an application and approval process that is accessible.
(g) Include a framework for compensation and cost allocation that recognizes the value
microgrids and community microgrids provide to all electricity customers, the electric grid
and local users of the electric grid. The framework for compensation and allocation must
take into consideration:
(A) The reliability and resilience services that a microgrid or community microgrid pro-
vides to a transmission or distribution system and to a community in which the microgrid
or community microgrid is located.
(B) A microgrid or community microgrid’s ability to operate in parallel to a transmission
or distribution system as a resource pursuant to a tariff rate.
(h) Include a methodology for compensating an owner, subscriber or developer of a
microgrid or community microgrid for the value that the microgrid or community microgrid
provides. The methodology must:
(A) Incorporate the value of lost load during a public safety power shutoff; and
(B) Include a schedule of avoided costs of a utility that reflects the value of the energy
generated or saved by a microgrid or community microgrid.
(i) Allow excess energy generated by a microgrid or community microgrid to be sold to
a utility on a nondiscriminatory basis.
(j) Subject to ORS 757.300, the Public Utility Regulatory Policies Act of 1978, 16 U.S.C.
2601 to 2645, and an electric company’s technical feasibility and system reliability require-
ments, allow an owner or microgrid operator of a microgrid or community microgrid to in-
corporate front-of-meter energy resources that are owned or operated by a utility,
third-party developer, local or tribal government or community-based organization.
(k) Allow an electric company to partner with municipalities, businesses or communities
to develop microgrids that improve resilience or mitigate the need for infrastructure up-
grades.
(L) Provide for a standard for reasonable shared costs for community energy resilience
that is provided by a community microgrid that allow for owners or microgrid operators of
a community microgrid to recover the costs for designing, constructing or maintaining the
community microgrid from customers who use:
(A) The microgrid;
(B) The distribution system located within a microgrid zone designated under section 7
of this 2025 Act within which the community microgrid is located; or
(C) The distribution system local to the community microgrid.
(m) Allow for redundant infrastructure that supports community microgrids.
(n) Provide for the approval of a community microgrid if the community microgrid en-
hances local energy resilience and is capable of supporting critical infrastructure during and
after an emergency, natural disaster or disruption to the electric grid or energy supply.
(o) Include a process for investigating standards and procedures that would enable a
microgrid operator to operate one or more community microgrids independently from the
electric grid system during an emergency.
(p) Provide standards for coordination and collaboration between microgrid operators and
electric companies in the operation of microgrids and community microgrids.
(q) Prohibit a microgrid operator from assuming an electric company’s role in controlling
the electric company’s own distribution infrastructure.
SECTION 3.
The Public Utility Commission shall complete the investigation and establish
a regulatory framework under section 2 of this 2025 Act not later than 18 months from the
effective date of this 2025 Act. In conducting the investigation, the commission shall consult
with appropriate local, state and federal agencies.
SECTION 4. Section 5 of this 2025 Act is added to and made a part of ORS chapter 455.
SECTION 5. (1) As used in this section:
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(a) “Community microgrid” means a microgrid that is located within a geographical area
that a local government designates as a microgrid zone under section 7 of this 2025 Act.
(b) “Microgrid” means a group of interconnected loads and distributed energy resources
within clearly defined electrical boundaries that functions as a single controllable system,
irrespective of whether the microgrid is operating independently of or in conjunction with
an electric grid.
(2) The Department of Consumer and Business Services shall adopt rules to the state
building code that support the integration of buildings with community microgrids.
SECTION 6. Section 7 of this 2025 Act is added to and made a part of ORS chapter 197.
SECTION 7. (1) As used in this section:
(a) “Community microgrid” means a microgrid that is located within a geographical area
that a local government designates as a microgrid zone under this section.
(b) “Consumer-owned utility,” “electric company” and “governing body” have the
meanings given those terms in ORS 757.600.
(c) “Microgrid” means a group of interconnected loads and distributed energy resources
within clearly defined electrical boundaries that functions as a single controllable system,
irrespective of whether the microgrid is operating independently of or in conjunction with
an electric grid.
(2) A local government may:
(a) Adopt land use regulations that correspond to microgrid zones to encourage devel-
opment that is compatible with microgrids and community microgrids.
(b) Designate a geographical area based on existing electric service infrastructure located
within the jurisdiction of the local government as a microgrid zone, subject to the approval
of:
(A) The Public Utility Commission, if the microgrid zone is located within the service
territory of an electric company; or
(B) The governing body of a consumer-owned utility, if the microgrid zone is located
within the service territory of a consumer-owned utility.
(c) Enter into an intergovernmental agreement with one or more local governments to
designate a geographical area based on existing electric service infrastructure located within
and across the jurisdictions of the local governments as a microgrid zone, subject to the
approval of:
(A) The commission, if the microgrid zone is located within the service territory of an
electric company; or
(B) The governing body of a consumer-owned utility, if the microgrid zone is located
within the service territory of a consumer-owned utility.
SECTION 8.
Notwithstanding any other law limiting expenditures, the limitation on ex-
penditures established by section 1 (1), chapter ___, Oregon Laws 2025 (Enrolled House Bill
5034), for the biennium beginning July 1, 2025, for Utility program, as the maximum limit for
payment of expenses from fees, moneys or other revenues, including Miscellaneous Receipts,
but excluding lottery funds and federal funds, collected or received by the Public Utility
Commission, is increased by $410,136 to carry out section 2 of this 2025 Act.
SECTION 9. This 2025 Act takes effect on the 91st day after the date on which the 2025
regular session of the Eighty-third Legislative Assembly adjourns sine die.
Enrolled House Bill 2066 (HB 2066-B) Page 3
Passed by House June 23, 2025
..................................................................................
Timothy G. Sekerak, Chief Clerk of House
..................................................................................
Julie Fahey, Speaker of House
Passed by Senate June 24, 2025
..................................................................................
Rob Wagner, President of Senate
Received by Governor:
........................M.,........................................................., 2025
Approved:
........................M.,........................................................., 2025
..................................................................................
Tina Kotek, Governor
Filed in Office of Secretary of State:
........................M.,........................................................., 2025
..................................................................................
Tobias Read, Secretary of State
Enrolled House Bill 2066 (HB 2066-B) Page 4