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OregonHB 40312026 Regular SessionHouse

Relating to the siting of renewable energy facilities; and prescribing an effective date.

Sponsored By: Sponsor information unavailable

Became Law

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Bill Overview

Analyzed Economic Effects

7 provisions identified: 5 benefits, 0 costs, 2 mixed.

Easier siting for tax credit renewables

Solar, wind, geothermal, and marine power projects can skip the state site certificate if they meet set steps and dates. You must get local land use approval by December 31, 2028. You must notify the local government and send a copy to the Energy Facility Siting Council that construction began to keep federal credits under IRC 45, 45Y, 48, or 48E. The facility must be placed in service by December 31, 2030, or later if the IRS allows and the credits still apply.

Faster EFSC decisions and opt‑in review

When you ask if your project is exempt, the Energy Facility Siting Council must decide within 60 days. You can appeal under ORS 469.403; the Supreme Court uses the same review scope as a circuit court and relies on the Council record. A developer, or a local government after consulting the developer, can elect to send certain projects to the Council. If elected, smaller wind plants under 100 MW average capacity, associated transmission lines, battery storage, and certain solar projects must get a Council site certificate. The election is final, is not a land use decision, and cannot be made after local permit applications under ORS 215.416 or 227.175 are filed.

Most energy projects need a state certificate

The law requires a state site certificate before you build, expand, or operate most energy facilities in Oregon. This applies unless a listed exemption fits. Related or supporting parts already covered under an existing site certificate do not need their own certificate. Expansions inside a certified site can be approved by amending the current certificate instead of getting a new one.

Interstate gas pipelines and nuclear storage exempt

Interstate natural gas pipelines and underground gas storage that FERC authorizes and regulates do not need an Oregon site certificate. Temporary on‑site storage of radioactive waste at a nuclear power plant that already has a site certificate also does not need a separate certificate.

Onsite fuel‑making projects avoid state permit

Some fuel‑making facilities do not need a state site certificate. Plants that make a secondary fuel and use it on site qualify when the primary fuel output is under 6 billion Btu per day. Facilities that convert only biomass to liquid fuel qualify if they have local land use approval, need no new lines or pipelines that would require a certificate, use at least 90% of the product within one mile or move it by rail or barge, and emit under 118 pounds CO2 per million Btu from fossil energy used for conversion.

Standby generators get permit exemption

Standby generation facilities can operate without a state site certificate if they meet strict rules. They must have local land use approval and meet statewide planning goals. They must have Department of Environmental Quality approvals for air and water. Units must be unable to connect to the grid, or if they can, be dispatched by the local grid operator to support reliability, follow 40 C.F.R. 63.6640(f) as of March 27, 2024, and use renewable fuels when available without violating warranties or certifications.

CHP plants exempt, with shutdown rule

Combined heat and power plants that are not coal or nuclear are exempt if efficient enough. Under 50 MW requires a heat rate at or below 6,000 Btu/kWh. At 50 MW or more requires a heat rate at or below 5,500 Btu/kWh. The Energy Facility Siting Council may set another threshold by rule. If the facility loses its steam host and no longer qualifies, it must stop operating one year after the loss unless it files a site-certificate application.

Sponsors & Cosponsors

Sponsors

There is no primary sponsor on record.

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 78 • No: 22

Senate vote • 2/25/2026

Third reading. Carried by Sollman. Passed.

Yes: 20 • No: 8

Senate vote • 2/23/2026

Energy and Environment: Heard and Reported Out

Yes: 5 • No: 0

House vote • 2/12/2026

Rules suspended. Third reading. Carried by Owens. Passed.

Yes: 43 • No: 13

House vote • 2/10/2026

Climate, Energy, and Environment: Heard and Reported Out with Amendments

Yes: 10 • No: 1

Actions Timeline

  1. Chapter 12, (2026 Laws): Effective date June 5, 2026.

    3/17/2026House

  2. Governor signed.

    3/5/2026House

  3. President signed.

    2/27/2026Senate

  4. Speaker signed.

    2/26/2026House

  5. Third reading. Carried by Sollman. Passed.

    2/25/2026Senate

  6. Second reading.

    2/24/2026Senate

  7. Recommendation: Do pass the A-Eng. bill.

    2/24/2026Senate

  8. Public Hearing and Work Session held.

    2/23/2026Senate

  9. Public Hearing Cancelled.

    2/18/2026Senate

  10. Referred to Energy and Environment.

    2/16/2026Senate

  11. First reading. Referred to President's desk.

    2/16/2026Senate

  12. Rules suspended. Third reading. Carried by Owens. Passed.

    2/12/2026House

  13. Second reading.

    2/12/2026House

  14. Recommendation: Do pass with amendments and be printed A-Engrossed.

    2/11/2026House

  15. Work Session held.

    2/10/2026House

  16. Public Hearing held.

    2/3/2026House

  17. Referred to Climate, Energy, and Environment.

    2/2/2026House

  18. First reading. Referred to Speaker's desk.

    2/2/2026House

Bill Text

  • Enrolled

    2/25/2026

    PDF

  • A-Engrossed

    2/11/2026

    PDF

  • House Amendments to Introduced

    2/11/2026

    PDF

  • HCEE Amendment -2 (Adopted)

    2/10/2026

    PDF

  • Introduced

    1/28/2026

    PDF

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