[Amendment eliminated the requirement to obtain prior authorization from PUC for hydrogen projects with limitations.]
Requires a natural gas utility (utility) to provide notice to affected customers and Public Utility Commission (PUC) at least 60 days before blending begins if the utility plans to increase the amount of hydrogen that is blended with natural gas that the utility delivers through its distribution system and this is the first time that the amount of hydrogen the utility plans to blend results in a ratio of the volume of hydrogen gas to the volume of natural gas, expressed as a percentage, exceeding 2.5 percent.
Requires utility with hydrogen blending program to maintain information on its website regarding the program and on how a customer can communicate with the utility about the program.
Requires utility to provide notice to customers if by June 30, 2030, the utility has a program for blending hydrogen with natural gas and has not provided notice required in Act.
Hydrogen produced through the use of renewable energy can be injected into natural gas pipelines, and the resulting blends can be used to generate heat and power with lower
emissions than using natural gas alone.
SB 685 could significantly delay hydrogen projects, and places undue burdens on public utilities seeking to incorporate hydrogen into their infrastructure, especially considering that hydrogen blending is already federally regulated by the Pipeline and Hazardous Materials Safety Administration and locally managed through existing Oregon statutes.
Expanding Public Utility Commission oversight in this manner risks innovation and deterring much-needed private and public investment.
The bill’s premise that hydrogen blending poses new, unaddressed safety risks does not
align with over 50 years of global experience and established safety regulations. There is no evidence to suggest that blending hydrogen creates greater safety concerns compared to other energy practices already in place.
The restrictions on projects in this bill and the termination of Oregon’s tax credit t for Production of Clean Hydrogen under the Inflation Reduction Act, puts Oregon at a disadvantage to attract project development. The legislature should be looking for ways to minimize barriers to decarbonization that will benefit ratepayers.