Oregon governor looks to clean energy economy

Oregonians could be drawing 25 percent of their electricity from windmills, solar panels, energy capturing wave buoys and other renewable energy sources by 2025, if a bill proposed by Gov. Ted Kulongoski passes in the state legislature.

The law would make Oregon one of the leaders among two dozen states that currently have renewable portfolio standards laws that require a portion of the state's electricity come from renewable sources by giving it some of the most aggressive clean energy requirements in the country.

"It gets to the heart of what we're doing," Kulongoski said. "I have this vision that the state can be the capital of the creation of the alternative and renewable energy sources for this country."

The bill is the centerpiece of Kulongoski's comprehensive push to place the state in the center of the new clean energy, low-carbon economy a rapidly growing sector that is being fueled by private equity and state-by-state initiatives.

A report by Cleantech Venture Network, a group that tracks investment capital, estimated up to $8.8 billion will be invested in clean energy and environment-related technologies between 2006 and 2009 in North America.

Kulongoski and other West Coast governors have cited a lack of leadership at a federal level on clean energy and global warming issues in pushing ahead with aggressive leadership positions in the burgeoning field.

Last month, Kulongoski announced a sweeping agreement with the governors of Washington, California, Arizona and New Mexico to set regional pollution reduction targets within six months and design a market-based program most likely a cap-and-trade system within 18 months to help reach emission-reduction goals.

If Kulongoski's legislation is approved, it would put Oregon on par with Minnesota, which passed a similar bill requiring that 25 percent of the state's electricity come from renewables by 2025, and California, which recently accelerated its renewable percentage to 33 percent by 2025.

The Oregon plan would require state utilities to draw 5 percent of their power from renewable resources by 2010; 15 percent by 2015; 20 percent by 2020 and 25 percent by 2025.

Oregon's largest utility endorsed the idea in concept but said there was still significant work to be done on the legislation.

"I can't tell you that this bill in this form is perfect, but we think the key elements are addressed," said Steve Corson, a spokesman for Portland General Electric. "What we want to see is enough flexibility in how the (renewable standard) is implemented that we are able to make it work well with the market."

But some business representatives urged caution.

Julie Brandis of Associated Oregon Industries, a group that represents more than 20,000 commercial and industrial electricity users, said that if the push toward renewables drives up electricity costs it could alienate businesses.

"Clearly if we want to keep Oregon's competitive industries we have to understand at what cost," Brandis said.

But Kulongoski and others said that states that have implemented renewable standards have not seen price spikes and they don't expect Oregon to either.

"Renewable energy is coming down in price because there is greater adoption of these technologies, said Kate Burke, the energy program manager at National Conference of State Legislatures in Denver. "In most cases, wind power is now competitive with fossil fuels."

Eds: The bill is Senate Bill 373.