Oregon's energy future is green

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Oregonians spend $12 billion a year on energy, half of that amount for oil. Most of that money goes out of state and much of it heads out of the country. But energy efficiency and renewable energy can keep more of our energy dollars in our own pockets, expand our local economy and benefit the environment. That is why I have made reliance on energy efficiency and renewable energy investments an essential element of our state energy policy during my tenure as Governor.

Oregon has used incentives to help stimulate the market for renewable energy, and has used regulatory policies to direct utilities and other energy developers to rely more on renewable energy. We have tax credits for consumers and businesses to use renewable energy. Schools, local governments and universities have also used these incentives, since the business energy tax credit is transferable. We also offer a low-interest loan program, and have a public purpose charge that raises about $100 million a year for energy efficiency and renewable energy projects. We have net-metering for consumers to sell excess renewable energy back into the grid; and we will soon have a feed-in tariff in place for solar photovoltaics, as European nations have done for years.

These state incentives have made the up-front costs and the payback period for renewable energy affordable to Oregon consumers. Oregon has combined these incentives with regulatory policies to encourage renewable energy development. One important policy is our energy siting process for large energy facilities that other states look to as a model. This one-stop, standards-based process for renewable energy projects gives companies a clear path for siting projects in Oregon.

Oregon also employs a Renewable Portfolio Standard (RPS) adopted in 2007. It requires that 25 percent of the electric load of Oregon utilities be met by the year 2025 with renewable energy resources. This is one of the strongest standards in the nation.

Last year, Oregon adopted an emission performance standard. Under Oregon’s standard, no new power plant located in Oregon or serving Oregon can emit greenhouse gases in excess of the amount released by a new natural gas plant. The effect of this standard will likely be to preclude development of new coal plants in Oregon for the foreseeable future. It also effectively prohibits Oregon’s utilities from new contracts to build or buy ownership in coal plants located outside of Oregon to serve Oregon’s energy demand.

As a result of these policies, Oregon is now in the top 10 states in use of both solar and wind energy. Substantial amounts of biomass, biofuels and hydro have also been developed. Biofuels and electric vehicles are beginning to provide a greater number of Oregonians with real alternatives to imported oil. And Oregon is the first state in the country to begin deployment of ocean wave energy, planned off the coast of Reedsport in 2011.

The commitment to renewable resources has also helped attract six major solar component manufacturers. These companies now employ over 1,000 permanent workers. In fact, when the current solar plants are completed, we will have over 2,000 permanent jobs, including with SolarWorld, the largest solar cell producer in North America.

A recent Pew Center study stated that Oregon had created the most “green jobs” per capita in the country with nearly 20,000 jobs. The clean-tech sector has been the largest source of growth in the Oregon economy. Over the past decade, this sector has grown seven times faster than our economy as a whole.

Because of our continued emphasis on energy efficiency and renewable energy, Oregon’s energy future is green. I am truly proud of the progress we have made and to have helped paved this path forward during my time as Governor.

Ted Kulongoski is the Governor of Oregon.