(1) As used in this section: (a) Community microgrid means a microgrid that is located within a geographical area that a local government designates as a microgrid zone under this section. (b) Consumer-owned utility, electric company and governing body have the meanings given those terms in ORS 757.600. (c) Microgrid means a group of interconnected loads and distributed energy resources within clearly defined electrical boundaries that functions as a single controllable system, irrespective of whether the microgrid is operating independently of or in conjunction with an electric grid. (2) A local government may: (a) Adopt land use regulations that correspond to microgrid zones to encourage development that is compatible with microgrids and community microgrids. (b) Designate a geographical area based on existing electric service infrastructure located within the jurisdiction of the local government as a microgrid zone, subject to the approval of: (A) The Public Utility Commission, if the microgrid zone is located within the service territory of an electric company; or (B) The governing body of a consumer-owned utility, if the microgrid zone is located within the service territory of a consumer-owned utility. (c) Enter into an intergovernmental agreement with one or more local governments to designate a geographical area based on existing electric service infrastructure located within and across the jurisdictions of the local governments as a microgrid zone, subject to the approval of: (A) The commission, if the microgrid zone is located within the service territory of an electric company; or (B) The governing body of a consumer-owned utility, if the microgrid zone is located within the service territory of a consumer-owned utility.
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