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83rd OREGON LEGISLATIVE ASSEMBLY--2025 Regular Session
Enrolled
Senate Bill 843
Printed pursuant to Senate Interim Rule 213.28 by order of the President of the Senate in conform-
ance with presession filing rules, indicating neither advocacy nor opposition on the part of the
President (at the request of Governor Tina Kotek for Public Utility Commission)
CHAPTER .................................................
AN ACT
Relating to reports by the Public Utility Commission; amending ORS 757.365.
Be It Enacted by the People of the State of Oregon:
SECTION 1.
ORS 757.365 is amended to read:
757.365. (1) The Public Utility Commission shall establish a pilot program for each electric
company to demonstrate the use and effectiveness of volumetric incentive rates and payments for
electricity or for the nonenergy attributes of electricity, or both, from solar photovoltaic energy
systems that are permanently installed in this state by retail electricity consumers and that first
become operational after the program begins. The cumulative nameplate capacity of the qualifying
systems enrolled in all of the pilot programs may not exceed 27.5 megawatts of alternating current.
Qualifying systems enrolled in the pilot program may not have nameplate generating capacity
greater than 500 kilowatts.
(2) The commission by rule shall adopt requirements for the pilot programs described in sub-
section (1) of this section. Each electric company shall file for commission approval tariff schedules
for the pilot programs that conform to the requirements.
(3) The commission may establish incentive rates for the pilot programs to enable the develop-
ment of the most efficient solar photovoltaic energy systems.
(4) A retail electricity consumer participating in a pilot program may receive payments based
on electricity generated from solar photovoltaic energy system output for 15 years from the
consumer’s date of enrollment in the program, at rates or through a rate formula in a tariff schedule
established at the time of enrollment, or at rates otherwise established at the time of enrollment.
The consumer thereafter may receive payments based upon electricity generated from the qualifying
system at a rate equal to the resource value.
(5) The commission may adjust the tariff schedule as needed for new pilot program participants
for the purpose of meeting the goal established in subsection (1) of this section. Once a retail elec-
tricity consumer is enrolled in a program, the rates or rate formula for determining payments to the
consumer may not be modified.
(6) The commission may adopt and adjust a percentage goal for capacity deployed by residential
and small commercial qualifying systems based upon the costs of the energy generated, the feasi-
bility of attaining the goal and other factors. For purposes of attaining the goal described in this
subsection, the commission shall require 2.5 megawatts of alternating current from the cumulative
nameplate capacity of qualifying systems to be generated by individual systems with a nameplate
generating capacity between five and 100 kilowatts.
Enrolled Senate Bill 843 (SB 843-INTRO) Page 1
(7) The commission may establish total generator nameplate capacity limits for an electric
company so that the rate impact of the pilot program for any customer class does not exceed 0.25
percent of the electric company’s revenue requirement for the class in any year.
(8) Ownership of renewable energy certificates established under ORS 469A.130 that are asso-
ciated with renewable energy generation under the pilot programs must be transferred to the elec-
tric company and may be used to comply with the renewable portfolio standard described in ORS
469A.052 or 469A.055.
(9) To the extent that rates paid under a pilot program exceed the resource value, qualifying
systems participating in the pilot programs are not eligible for expenditures under ORS 757.612
(3)(b)(B) (2019 Edition) or tax credits under ORS 469B.100 to 469B.118 or 469B.130 to 469B.169.
(10) All prudently incurred costs associated with compliance with this section are recoverable
in the rates of an electric company.
(11) The commission shall advise and assist the owners and operators of qualifying systems in
identifying and using grants, incentive moneys, federal funding and other sources of noninvestment
financial support for the construction and operation of qualifying systems.
(12) The pilot programs described in subsection (1) of this section close to new participants on
the earlier of:
(a) March 31, 2016; or
(b) The date the cumulative nameplate capacity of solar photovoltaic energy systems that have
been permanently installed by retail electricity consumers under the pilot programs equals 27.5
megawatts of alternating current.
[(13) The commission shall submit a report to the Legislative Assembly by January 1 of each
odd-numbered year. The report must evaluate the effectiveness of the pilot programs described in sub-
section (1) of this section compared to the effectiveness of expenditures under ORS 757.612 (3)(b)(B)
(2019 Edition) or tax credits under ORS 469B.100 to 469B.118 or 469B.130 to 469B.169 for promoting
the use of solar photovoltaic energy systems and reducing system costs. The report must also estimate
the cost of the program to retail electricity consumers and the resource value of solar energy. ]
Passed by Senate February 27, 2025
..................................................................................
Obadiah Rutledge, Secretary of Senate
..................................................................................
Rob Wagner, President of Senate
Passed by House May 20, 2025
..................................................................................
Julie Fahey, Speaker of House
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 Senate Bill 843 (SB 843-INTRO) Page 2