(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.