Part 2 of a 2-Part Series on Clean Energy Accounting in Oregon
This is the second post in a two-part series about Oregon’s landmark clean energy law, HB 2021. In Part 1, we looked at a critical flaw in how the law tracks emissions—and why failing to require renewable energy certificates (RECs) for compliance undermines the law’s credibility. In Part 2, we explore the consequences of that flaw for voluntary renewable energy markets: how it’s already weakening consumer renewable energy programs and threatening clean energy investment across the region.
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For years, people in Oregon have been able to pay extra for renewable energy through programs like Portland General Electric (PGE)’s “Green Future.” These opt-in programs let customers support clean energy beyond what the state requires. But recent changes due to Oregon’s Clean Energy Targets law (HB 2021) are making these programs ineffective, leaving customers paying more without actually increasing renewable energy use. The reason is that under this law, the system used to track renewable energy can be misused, allowing multiple customers to use the same megawatt-hours of renewable energy and preventing opt-in renewable energy programs from making a difference. This has the practical effect of making consumer purchases meaningless.
How Voluntary Renewable Energy Works
Oregon’s two biggest power companies, PGE and Pacific Power, offer “voluntary” renewable energy programs, where customers can choose to pay extra for clean energy that isn’t supplied to other customers. The electricity they buy is tracked using “renewable energy certificates” (RECs). RECs prove that a certain amount of electricity came from renewable sources, and they prevent double-counting—when the same renewable energy is claimed more than once or by multiple parties. For example, using RECs once for a single claim prevents an electric utility from using the same renewable energy to both comply with a state mandate to deliver renewable energy to all customers and deliver renewable energy to a residential customer that has opted into a voluntary program.
A key principle in these opt-in programs is that the renewable energy people buy voluntarily is above and beyond what the law requires. Without this requirement, customers aren’t actually making a difference—they’re just underwriting utility efforts to meet state regulations.
The Impact of HB 2021
Oregon’s HB 2021 requires a reduction in greenhouse gas emissions from electricity sold to Oregon customers. It doesn’t require utilities to use more renewable energy, but the utilities likely will in order to meet emissions goals. The problem is that the Oregon Public Utility Commission (PUC) determined that utilities don’t need to retire RECs for compliance. This means the same discrete amount of clean energy can be counted for both the legal emissions requirement and voluntary renewable energy programs—making the voluntary purchases meaningless.
Because of this decision, Center for Resource Solutions determined that under its Green-e® Energy certification program, RECs linked to HB 2021 will no longer be eligible for use in certified retail renewable energy programs. This has frozen the market for impactful voluntary renewable energy in Oregon and beyond because Oregon’s utilities purchase energy across the western U.S. Without Green-e® certification, which audits clean energy programs on behalf of customers, customers have no way of knowing if they are actually getting the renewable energy they’re paying more for, or supporting more clean energy than what is required by law.
The Consequences for Customers and Clean Energy
The PUC’s decision means that customers who pay extra for renewable energy may not be getting anything beyond what utilities already have to provide, or anything at all if HB 2021 enables Oregon customers to claim use of zero-emissions electricity that is potentially being double-counted. This is a serious consumer-protection issue.
Additionally, this could slow down clean energy growth. Voluntary renewable energy purchases play a big role in funding new wind and solar projects. Without a trustworthy system that ensures exclusive claims and impact, people may slow or stop voluntary renewable energy purchases, which would hurt investment in clean energy in Oregon and across the western U.S.
What Needs to Change
To fix this issue, Oregon’s Department of Environmental Quality (DEQ) should require RECs to be used for tracking HB 2021 compliance, or new legislation should “fix” HB 2021 to require REC retirement. This would prevent double-counting and allow voluntary renewable energy programs to once again be independently certified.
Utilities also need to change how they run voluntary programs. They should ensure that the clean energy they sell to voluntary customers isn’t the same energy they’re using to meet legal requirements.
Lastly, the state should require better transparency. Customers deserve clear information about where their money is going and whether they are truly supporting more renewable energy.