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Conservation groups ask Oregon Department of Energy to fix energy permitting loophole

- Liz Nysson

A loophole in Oregon’s law for permitting renewable energy projects is under scrutiny because it allows developers to evade state requirements and take environmental shortcuts. In a petition filed today, conservation groups asked Governor Kulongoski to close the loophole by blocking developers from segmenting projects in a way that avoids a strict review process by Oregon’s Energy Facilities Siting Council.

Under the current rules, projects generating less than 105 megawatts of power are exempt from State review. According to the conservation groups, some developers have abused the rule by breaking their proposals into artificially small segments on paper, proposing side-by-side 104 megawatt facilities that are part of the same larger project but would avoid the need to go through the Council’s permitting process.

“We support responsible renewable energy development in Oregon,” said Liz Nysson, Climate Change Coordinator for the Oregon Natural Desert Association. “But it’s imperative that industrial-scale facilities not be allowed to skirt the comprehensive, public review process that the Council was created to achieve.”

In the petition, the desert group, joined by the Audubon Society of Portland and Defenders of Wildlife, asks the State to create rules defining a “single energy facility” so that large projects cannot be broken down on paper into smaller parts. The proposed rules are similar to rules the State recently adopted for the Business Energy Tax Credit. There, wind developers had segmented projects and received multiple tax credits paid for by Oregon taxpayers.

Projects that fall under the Council’s jurisdiction undergo a comprehensive permitting process. The Council studies proposals’ viability, economic impacts, impacts to public services, recreation and the environment, and whether the energy generated will be available to Oregonians or sold out of state. The state process also allows Oregon’s Department of Fish and Wildlife to require mitigation for potential habitat damage.

“Without this type of thorough review,” said Nysson, “it’s possible for unsustainable projects to creep through without any serious consideration of potential harm to iconic species like the sage grouse. Renewable energy can help mitigate against climate change, diversify our country’s energy portfolio and benefit local communities—but only if done responsibly and transparently.”

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