Monday, March 15, 2021

Electric Vehicle Bills Moving Forward in Oregon Legislature (Portland Business Journal, OR)


Oregon is falling way short in meeting its electric vehicle goals, but lawmakers could be ready to provide new tools to boost uptake.

On Thursday, the Senate passed a bill — by a bipartisan 27-2 count — that expands the ability of regulated electric utilities to recoup from ratepayers’ investments in charging stations and other EV infrastructure.

Senate Bill 314 would also allow natural gas utilities to rate-based investments that support the adoption of vehicles powered by renewable natural gas or hydrogen.

And it’s not the only EV bill on the move in the Legislature.

House Bill 2165 comes from Gov. Kate Brown, who in 2017 set a goal of 50,000 registered plug-in vehicles in Oregon by the end of 2020, only to see the state fall short by nearly a third, at 33,547.

The bill takes a comprehensive approach.

It removes a 2027 sunset on the state’s EV rebate, and keeps $12 million flowing annually into the program from a 0.5% tax on new-vehicle sales in the state. It also increases the value of the add-on Charge Ahead rebate, available to low- and middle-income earners, from $2,500 to $5,000, meaning those residents could get rebates worth up to $7,500.

On the utility side, it would also allow for rate-basing of EV investments, while requiring Portland General Electric and PacifiCorp to assess a charge of 0.25% on customer bills to raise funds for transportation electrification investments. The utilities support the charge, as does Oregon CUB, the state's official ratepayer advocate.

CUB agrees with the utilities that smart, expanded EV use can drive down costs for all ratepayers, as increased electricity sales generate additional revenue to support a distribution system that everyone pays for.

The bill, CUB said in written testimony, “would raise approximately $4.5 million from PGE, well below the amount CUB identifies as being reasonable for the utility to invest in infrastructure and programs to support (transportation electrification), and what may otherwise be included in customer rates.”

The bill requires at least half the money raised through the charge be spent on programs that encourage transportation electrification in underserved communities.

The House Energy and Environment Committee passed the bill on a 7-0 vote, sending it to the Transportation Committee.