Moving Toward a Just and Equitable Energy System

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1 Goals Moving Toward a Just and Equitable Energy System Within utilities and applied to structure of energy system: Shift the lens: Making equity and environmental justice integral to the PUC s work. Increase meaningful participation of non-traditional stakeholders. Transform thinking from energy as a commodity to energy as a right that affects health, well-being, and safety.

2 Principles of Equity for Energy Transformation Inclusive, accessible, meaningful, and sustained engagement and representation Programs and policies result in fair distributions of benefits and burdens Decisions are made with a recognition of the historical, cultural, and institutional dynamics and structures Decisions consider generational impacts Source:

3 What is Environmental Justice? Fair distribution of burdens and benefits of environmental health hazards and meaningful participation in decisions that impact the environment and people who live, work, learn and play. ~ Oregon Environmental Justice Taskforce Prevent Harm (Who is burdened?) Provide Benefit (Who benefits?) Ensure Inclusive and Accountable Decision- Making (Who s at the Table?)

4 Historical Benefits and Burdens of the System Displacement of Indigenous People to Build Hydro Lack of compensation Impacts to subsistence lifestyles Rural Electrification Act Anti-poverty strategy Public initiatives funded major regional infrastructure Agricultural growth Private Ownership Financed Infrastructure in Cities and Generated Shareholder Returns and Urban Development Restricted Opportunity for Homeownership Article XVIII, original Oregon State Constitution Redlining

5 Energy Burden = % of Household Income that Goes to Energy (2015) Source: US Department of Energy

6 Ratepayer Funded Energy Incentives TOTAL: $177,193,353 TOTAL: $415,814,177

7 Current Benefits and Burdens of the Energy System Environmental Burdens: Extractive Economy (Resources), Environmental Justice Communities Hit First and Worst Benefits: Statewide standards/regs that increase share of renewable energy serving Oregonians Social Burdens: Extractive Economy (Labor Impacts), Structural Inequalities Benefits: Obligation to Serve, Safety, Reliability Economic Burdens: Extractive Economy (Capital), Split Incentives, Ownership and Economic Opportunity, Cost-Shifting Benefits: NW has lower rates compared to other parts of the country, Low-Income Programs

8 Rethinking the Mission PUC Mission : To Ensure Oregon utility customers have access to safe, reliable and high-quality utility services at just and reasonable rates. We do so through robust and thorough analysis and independent decision-making conducted in an open and fair process. What s Missing? Environmental Protection Economic Development Social Equity Choice and Innovation Alignment with State goals Opportunities New Residential Rate Classes Community-Owned Renewable and Micro- Grid Infrastructure New Avenues for PUC Participation Inclusive Program Design & Incentives Community Choice Aggregation / Energy Cooperatives

9 Challenges and Pathways for Equity Challenges Lack of Political Will Location and Scale of Investment Financial Costs and Tools Ownership and Split Incentives Outreach, Education, and Marketing Climate Change and Resource Variability Pathways Identifying Overburdened and Impacted Communities Prioritizing Identified Communities for Investment Advancing Local Models for Resilience Moving from Least Cost / Least Risk to also include Least Harm and Greatest Benefit Establishing Community Governance and Decision-Making Processes Adapted from airchild, D. & A. Weinrub (2017). Energy Democracy. Energy Democracy Through Local Energy Equity. (60-62)

10 Inclusive, Transparent, Meaningful Decision-Making Access to information (translation, no jargon) Translation, language accessibility Technical assistance to make an informed decision What, where, who, what, when, why and how? Opportunity to influence the outcome of the decision No half-baked ideas. CO- CREATION Decision-makers seek out options of most impacted Non-traditional stakeholders engagement