Energy boom to accelerate in 2008
New Oregon renewable power mandates and tax credits mean a lot of work for builders next year

by Libby Tucker

Oregon builders can bank on the energy sector in 2008.

The state Department of Energy expects a boom in energy project development next year as a result of new renewable energy standards and tax credits that will benefit all segments of the construction industry, from big power plant contractors to home heating installers.

"When you talk about renewable energy, you see significant jumps each year now," Department of Energy spokesman Lou Torres said. "I thought this year was busy, but next year will be (even more) focused on a lot of these efforts. They’re all picking up steam and momentum."

The Legislature in June passed a renewable energy standard that requires the state’s biggest utilities to produce 15 percent of their power with renewable resources by 2015. The requirement increases to 20 percent in 2020 and 25 percent in 2025.

Construction growth in the energy sector is also expected nationwide as more states implement renewable energy standards and play catch-up with aging infrastructure, Ken Simonson, an economist with Associated General Contractors, said.

"Energy has very long-lived prospects," Simonson said. "We’re in a scramble now to get capacity and hook up utility lines. ... We’ve had six years of economic growth and, with it, demand for electricity."

In Oregon, Portland General Electric and PacifiCorp are already developing new energy plants to meet the standard. And private developers are planning projects to profit from the growing market for green power.

The state’s Energy Facility Siting Council is reviewing four projects – three wind farms and a natural gas-fired power plant – slated to break ground in 2008. All will supply ample work for a variety of contractors.

Energy giant BP plans to break ground on a 267-turbine wind farm in Sherman County in Eastern Oregon next spring. The project will include 15 miles of new transmission lines, 50 miles of new roads and a new operations and maintenance facility.

And work will continue on a host of other under-construction renewable projects next year, including PPM Energy’s 124-turbine Klondike III wind farm near Wasco, Cascade Grain Products’ 113 million-gallon ethanol plant in Clatskanie, Peak Sun Silicon’s new solar manufacturing plant in Millersburg, and SolarWorld AG’s new plant in Hillsboro.

"We’re already seeing a huge increase in investments in renewable energy," said state Rep. Jackie Dingfelder (D-Portland), who worked to pass the state renewable energy standard. "Between renewable energy and the biofuels bill, we’re seeing lots of new jobs."

The Department of Energy has also seen applications for the state business energy tax credit (BETC) jump 58 percent this year over last. The Legislature this session approved an increase in the BETC to 50 percent of eligible project costs from 35 percent.

The tax credits can be applied to a range of projects including sustainable buildings, conservation efforts, lighting projects and transportation jobs.

Not all of the applications will become projects, the Department of Energy’s Torres said. But the rise in businesses applying for tax credits signals a greater demand for energy-saving products and services statewide.