Legislature may call for an end to state's DOE

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Two proposals to reshape the way Oregon implements energy policy are headed to the 2011 Legislature — including one that eliminates the Oregon Department of Energy, handing its work to more focused departments.

There is no sign yet of how Gov.-elect John Kitzhaber might steer the ideas when he takes office, a key factor in whether they move forward.

The proposals come from Sen. Jackie Dingfelder, D-Portland, and Rep. Jules Bailey, D-Portland, and will be filed as bills Jan. 10 when the legislative session convenes. They address how Oregon can best provide clear vision and oversight to its energy future, in light of today’s policies, which rely on a multitude of agencies to execute.

Bailey is boldly advocating to dissolve the Oregon Department of Energy and redistribute its work to agencies with more focused expertise. His proposal would shift energy efficiency programs to the Public Utility Commission and its conservation and development partner the Energy Trust of Oregon, move incentive programs to Oregon Business Development Department – which promotes ways to attract, create, retain and expand business in Oregon – and better coordinate the Energy Facility Siting Commission with the state departments that influence its decisions, like Fish and Wildlife, State Lands, and others. The programs would be directly managed by the governor’s office.

Bailey said, "ODOE sits at the center of a diagram and doesn't do any of those things particularly well… By elevating this to the governor's office you can really create a scenario in which you have the political juice of the governor's office to trickle down to those agencies and help them align with that plan."

Kitzhaber takes office Monday, and meanwhile his energy team has not been available for comment. Bailey indicated, however, that he has some support from the governor for the proposal. He also suggested the ideas have wide-ranging appeal for lawmakers, many of whom have set energy policy as a priority but also have the difficult charge of reducing state programs.

"I have enormous buy-in from legislators of both parties. I've yet to speak with a member of the Legislature that disagrees with this idea," Bailey said.

Rep. Bailey's proposal differs from one by Sen. Dingfelder having to do with setting policy for state energy plans, but the two could potentially fold together.

Currently, large energy facilities — including wind farms, large solar arrays, biomass, geothermal plants and other types of renewable energy development — are sited through the Oregon Energy Facility Siting Council while smaller-sized facilities are left in the hands of Oregon counties. Other state agencies weigh in on those processes, providing input on how energy development affects everything from fish and forests to wildlife and views. Still more agencies take the reins of driving clean energy innovation and promoting energy efficiency.

Senate Bill 164 proposed by Dingfelder would create a five-member state Energy Commission to overlay the Oregon Department of Energy and infuse the process with policy goals from the top down, giving shape to the decisions made. The commission would take the helm of collaborative planning toward energy goals and create a venue for stakeholders — including the public — to weigh in.

Renewable energy businesses have argued that a lack of coordination around state-level policies has hampered the industry and the Department of Energy has come under fire for its handling of the Business Energy Tax Credit and other incentive programs.

John Audley, deputy director of the Renewable Northwest Project, said the bills represent recognition by the Oregon Legislature that administration of the state’s energy policy needs clearer direction. He said that Renewable Northwest Project supports a focus on the issue.

Audley cautioned, however, that resolving administrative problems piecemeal would not be as helpful as retooling Oregon’s energy approach with direction from the governor’s office.

"These bills that you're seeing now kind of respond to the problem du jour, and unless we step back and consider the whole cloth, we’ll continue to put bandages on problems or perceived problems," he said. "It's my hope that when the governor and his team take over, they provide us with some kind of guidance."

Lee van der Voo, lvdvoo*at*gmail.com, is a freelance writer for Sustainable Business Oregon.