Oregon Opens Temporary Path to Local Permitting for Large Renewable Energy Projects

Oregon again shows its support for renewable energy and rural economic development with the passage of House Bill 4031, which gives developers the opportunity to pursue local land use approvals for certain larger renewable energy facilities. The law is driven in part by the expiration of certain federal tax credits, which has resulted in state actions to bring more clean energy online before those tax credits are eliminated.

Governor Kotek signed HB 4031 into law, and it becomes effective on June 5, 2026.

The new law temporarily allows developers to avoid obtaining a site certificate from the Oregon Energy Facility Siting Council (EFSC) if a project meets specific criteria:

• A project must generate electricity exclusively from solar, wind, geothermal, or marine energy. The law does not contain a limit on megawatt production or acreage.
• A project must file a land use application to construct and operate a project on or before December 31, 2028, and obtain approval from the local jurisdiction.
• A project must qualify for one or more tax credits authorized under section 45, 45Y, 48, or 48E of the Internal Revenue Code.
• A project must provide notice to the local jurisdiction and EFSC that includes a description of actions taken demonstrating that construction has begun in accordance with the requirements of applicable notices or rulings of the U.S. Treasury or Internal Revenue Service.
• A project must be placed in service by December 31, 2030, or by a later deadline if permitted under the applicable federal tax credit rules.

The legislation raises questions about long-term operational requirements and whether, if a project fails to meet the required timelines, the developer is obligated nonetheless to obtain a site certificate from EFSC. Developers should consider contingency permitting strategies in case projects are delayed.

What This Means for Developers / Next Steps

Developers considering renewable energy projects in Oregon should evaluate:

• Whether current or planned projects can qualify for this temporary pathway and associated federal tax credits
• Timing of local land use applications to meet the December 31, 2028, deadline
• Coordination of permitting and construction milestones to satisfy federal "begin construction" requirements
• Contingency permitting strategies if project timelines are delayed or eligibility requirements are not met

Although applications cannot be formally filed until the law becomes effective, developers may consider preparing and submitting materials in advance so that local jurisdictions can deem applications complete promptly after June 5, 2026—thereby establishing jurisdiction and locking in applicable review criteria.

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Elaine Albrich is a partner, and Caroline Cilek and Madeline Marcellino are associates in the energy, natural resources & environmental group in the Portland office of DWT. If you have questions about how HB 4031 may apply to your projects or would like to discuss permitting strategies, please reach out to any of the authors or another member of our energy, natural resources & environmental team and sign up for our alerts.