Developing ODOE’s 2019 -21 Agency Request Budget Energy Advisory Work Group Meeting June 20, 2018
Developing the ODOE Budget: 2016 vs 2018 2018 2018 - loo lookin ing ahea ead to o th the e 2019-21 bien iennium: 2016 - devel elopment of of ou our 2017 2017-19 budget: • Joint Committee on Oregon Department • We’re overseeing the tail end of our tax of Energy Oversight had just started credit programs and reducing staff meeting • We’re taking a leadership role on electric • We were anticipating the sunset of our vehicles and net-zero buildings tax credit programs • We’re taking on the review of more • We were no longer lending through our proposed energy facilities, including new Small-Scale Energy Loan Program utility-scale solar and large projects with a federal nexus • We had just come off a 2015-17 budget • We’re continuously improving resources that slashed positions and closed offices we provide Oregonians, from an interactive Electricity Resource Mix tool to a new Biennial Energy Report 2
Developing a State Agency Request Budget Essential Packages March 3 May 9 May 31 Aug 1 3
Developing a State Agency Request Budget March 3: We began developing the 2019-21 budget starting with the 2017-19 LAB. Cost of living adjustments 4 and merit step increases are enacted by the Oregon Department of Administrative Services.
Developing a State Agency Request Budget May 9: The base budget is evaluated, and adjustments are made, leading to the 5 “Current Service Level,” or CSL.
Developing a State Agency Request Budget May 31: The CSL includes estimates of the costs to continue administering 6 legislatively approved programs in the next biennium.
Developing a State Agency Request Budget By August 1: CSL is evaluated, revenue needs are identified, and Policy Option Packages – or POPs – are 7 developed, identifying changes to current programs that may require additional resources.
Developing ODOE’s 2019 -21 Budget 2019-21 Agency-wide CSL 2019-21 Agency Operating CSL Nuclear Safety / Emergency Prep Planning & Innovation $2.3 22% Energy Facility Siting $5.1 Administrative Services 46% Administrative Energy Services Development $13.9 $138.6 million $110.5 $30.4 million Energy Planning & Development Innovation 10% $6.7 Nuclear Safety / Emergency Prep 7% Energy Facility Siting 15% 8
History of ODOE’s Biennial Budgets 9
Funding the ODOE Budget • Funding sources: • Federal funds • Fees for services • Energy Supplier Assessment • SELP borrowers paying off their principals plus interest • General Fund for SELP debt service • We actively seek out new federal funds and carefully manage our fees for services • ESA is charged to every fuel provider and utility selling energy in the state, with exemptions built in 10
Funding ODOE’s 2017 -19 Budget ODOE’s 2017-19 Legislatively Approved Budget • Chart shows 2017-19 revenues Other Revenues excluding SELP $0.9 Federal Funds • We expect 2019-21 funding to look $2.6 similar, with the exception of EIP fees, which will decrease • Final revenue numbers will be Siting & EIP Fees $6.5 calculated by and shared at the July public budget meeting Energy Supplier Assessment $15.3 Charges for Services $2.4 11
Developing ODOE’s 2019 -21 Budget Draft 2019-21 Current Service Level Budget and Policy Option Packages by ODOE Program Divisions 12
ODOE’s Five Program Divisions Energy Planning & Innovation Energy Administrative Energy Development Services Facility Siting Services Nuclear Safety & Emergency Prep 13
Administrative Services – What We Do Provide efficient resources and reliable customer service across the agency to facilitate good governance and strong fiscal management. Northwest Power and Director’s Office Central Services Conservation Council (12.0 FTE) (23.0 FTE) (2.0 FTE) • Communications • Finance & Operations • Two positions funded by Bonneville Power • Human Resources • Information Technology Administration • Government Relations • Budget • Internal Audit • Federal Grants 14
Director’s Office – Our Team • 14 staff, includes two Northwest Power and Director Conservation Council members • 17% of ODOE employees • Employees provide resources Internal Audit Strategic Engagement and services agency-wide Gov’t Relations Human Resources Communications 15
Central Services – Our Team • 23 staff Chief Operating Officer • 27% of ODOE employees • Includes payroll, contracts and procurement, grant Budget Federal Grants management, accounting, and other agency-wide services • IT team is implementing last biennium’s POP to modernize Information Technology Finance & Operations agency software 16
Administrative Services – CSL Budget + Estimated Funding Budget Breakdown Funding Sources Indirect Director's Office 70% 29% Federal Funds 1% SELP 1% NWPCC 5% Central Services 71% ESA 23% 17
Administrative Services – Proposed Policy Option Packages PROJE JECT-SPECIFIC THIRD-PARTY STUDIES POP would be used to contract for studies, research, and analysis services. Estimated cost: $200,000 INT INTERNSHIPS POP would fund six paid internship opportunities over two years. Estimated cost: $50,000 18
Energy Development Services – What We Do Provide energy loans and grants to help Oregon residents, public agencies and schools, nonprofits, businesses, and tribes. Small-Scale Energy Energy Efficiency Financing Energy Incentive Programs Loan Program 3% 5% (2.0 FTE) 92% (5.0 FTE) • Loan Activity • Clean Energy Deployment • Renewable Energy Fund Development Grants • Administration • Energy Efficiency & • Tax Credit Sunset Sustainable Technology Administration (EEAST) – inactive • Residential Energy Tax • Alternative Fuel Vehicle Loan Credits Program • Transportation and Conservation Tax Credits • Biomass Tax Credits • State Home Oil Weatherization Program 19
Energy Development Services – Our Team • Down from 26 staff to 7 • 8% of ODOE employees • ODOE pursuing legislative Chief Operating Officer concept to continue lending through SELP • Staff attrition timed to manage SELP Energy Efficiency Financing Energy Incentive Programs tail-end of incentive programs 20
Energy Development Services – CSL Budget + Estimated Funding Funding Sources Budget Breakdown SELP Bond Sales (SELP) Administration 27% 2% Clean Energy Tax Credit Sales (RED Deployment Fund Grants) 3% 5% SELP Loan Activity 90% ESA Energy Incentive 1% Program 5% Federal Funds 0% Loan Repayment (SELP) General Fund Debt Lottery Funds Debt 60% Service (SELP) Service 4% 3% 21
Energy Development – Proposed Policy Option Package BOND AUTHORITY Authority to issue Article XI-J General Obligation bonds granted through the 2019 Legislative Session bond bill (no budget impact). 22
Nuclear Safety & Emergency Prep – What We Do Oversee Oregon’s interests in the Hanford nuclear facility cleanup and prepare for nuclear and energy-related emergencies. Hanford/Nuclear Nuclear Emergency Non-nuclear Emergency Radioactive Waste Oversight Preparedness Preparedness Transportation 58% 15% 18% 9% • Hanford cleanup • Columbia • Petroleum • Transport of oversight Generating Station contingency radioactive planning/Oregon materials through • Hanford Natural • Former Trojan Fuel Action Plan Oregon Resource Trustee nuclear plant • Liquefied Natural • Uranium mining and Gas export facility mill cleanup • Radioactive waste disposal 23
Nuclear Safety & Emergency Prep – Our Team • 6 staff Division • 7% of ODOE employees Administrator/Working Manager • Employees have extensive technical background • Recent retirements have taken Non-Nuclear Emergency Nuclear Emergency Planner Planner considerable institutional knowledge (45 years experience in three employees) Remediation Specialist Hydrogeologist Ecologist • Agency-wide effort to meet emergency preparedness responsibilities 24
Nuclear Safety and Emergency Prep – CSL Budget + Estimated Funding Funding Sources Budget Breakdown Radioactive Transportation 9% Fees 27% Non-Nuclear Emergency Preparedness Hanford 18% Oversight 58% ESA Federal Funds Nuclear Emergency 9% 64% Preparedness 15% 25
Energy Facility Siting – What We Do Ensure that proposed energy facilities meet specific statewide and local standards and are considered with public input and participation. Large-Scale Energy Federal Siting Energy Facility Siting Monitoring Facility Siting Coordination Council 6% (1.0 FTE) 55% (5.5 FTE) 2% (0.25 FTE) 37% (4.25 FTE) • Coordinate • Conduct regular • Coordinate state • Staff to EFSC consolidated state compliance visits agency response on • Provide information, energy facility federal projects • Inspections include research, and review facilities under recommendations • Provide decision- construction • Coordinate makers with • Anyone may ask meetings, public information ODOE to inspect an notices, and public EFSC-jurisdiction comment facility 26
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