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83rd OREGON LEGISLATIVE ASSEMBLY--2025 Regular Session
House Bill 2066
Introduced and printed pursuant to House Rule 12.00. Presession filed (at the request of House Interim Committee
on Climate, Energy, and Environment for Representative John Lively)
SUMMARY
The following summary is not prepared by the sponsors of the measure and is not a part of the body thereof subject
to consideration by the Legislative Assembly. It is an editor’s brief statement of the essential features of the
measure as introduced.The statement includes a measure digest written in compliance with applicable readability
standards.
Digest: Tells the PUC to create rules and a framework to allow microgrids. (Flesch Readability
Score: 72.6).
Directs the Public Utility Commission to establish a regulatory framework to allow the owner-
ship, deployment and use of microgrids and community microgrids.
Takes effect on the 91st day following adjournment sine die.
A BILL FOR AN ACT
Relating to microgrids; and prescribing an effective date.
Be It Enacted by the People of the State of Oregon:
SECTION 1. Section 2 of this 2025 Act is added to and made a part of ORS chapter 757.
SECTION 2.(1) As used in this section:
(a) “Community-based organization” means a nonprofit organization with demonstrated
efficacy that is representative of a community or specific segments of a community, serves
to meet the community’s needs in the area of social, human or health services and is located
within or in close proximity to the community the organization serves.
(b) “Community microgrid” means a microgrid that is composed of a localized group of
customers and distributed energy resources within clearly defined electrical boundaries.
(c) “Energy resource” means a small-scale energy system or mechanism that generates,
stores or consumes energy or works to balance and match energy demand with energy sup-
ply.
(d) “Front-of-meter” means the utility side of a transmission or distribution system in
reference to a customer’s meter.
(e) “Microgrid” means an interconnected system of loads and energy resources appro-
priately sized to meet customer needs within clearly defined electrical boundaries that can
function as a single, controllable system independent from a utility transmission or distrib-
ution system.
(2) The Public Utility Commission shall conduct an investigation to establish a regulatory
framework for allowing the ownership, deployment and use of microgrids and community
microgrids.
(3) The investigation must:
(a) Determine the benefits and constraints of deploying microgrids and community
microgrids.
(b) Establish interconnection standards and requirements.
(c) Establish safety and performance standards.
NOTE:Matter in boldfaced type in an amended section is new; matter [italic and bracketed] is existing law to be omitted.
New sections are in boldfaced type.
LC 1513 HB2066
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(d) Establish an application and approval process that is accessible.
(e) Develop a framework for compensation and cost allocation that recognizes the value
community microgrids provide to all electricity customers, the electric grid and local users
of the electric grid. The framework must take into consideration the reliability and resilience
services a microgrid or community microgrid provides to a transmission or distribution
system, to a community in which the microgrid or community microgrid is located and to
criticalinfrastructure.
(f) Establish a methodology for compensating an owner, subscriber or developer of a
microgrid or community microgrid for the value that the microgrid or community microgrid
provides. The methodology must:
(A) Incorporate the value of lost load during a public safety power shutoff; and
(B) Include a schedule of avoided costs of a utility that reflects the value of the energy
generated or saved by a microgrid or community microgrid.
(g) Allow excess energy generated by a microgrid or community microgrid to be sold to
a utility on a nondiscriminatory basis.
(h) Allow a microgrid or community microgrid to use front-of-meter energy resources
that are owned or operated by a utility, third-party developer, local or tribal government or
community-based organization.
(4) In conducting the investigation, the commission shall consult with appropriate local,
state and federal agencies.
SECTION 3. This 2025 Act takes effect on the 91st day after the date on which the 2025
regular session of the Eighty-third Legislative Assembly adjourns sine die.
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