BP BHEAD INT S

AN ACT Relating to urban forestry; amending RCW 35.92.355, 43.19.668, 76.12.160, 76.15.007, 76.15.020, 80.28.024, 80.28.025, and 82.16.055; adding a new section to chapter 35.92 RCW; adding a new section to chapter 35A.80 RCW; adding new sections to chapter 76.15 RCW; adding a new section to chapter 80.28 RCW; adding a new section to chapter 43.19 RCW; adding a new section to chapter 82.04 RCW; creating new sections; and making an appropriation.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1. The legislature finds that large-scale reduction of tree cover increases the temperature of urban areas, known as the "heat island effect." Planting trees in urban areas for shading and cooling mitigates the urban heat island effect and reduces energy consumption. Tree planting also can benefit the environment by combating the global warming "greenhouse" effect, reducing soil erosion, and improving air quality. Urban forestry programs can improve urban aesthetics that will improve public and private property values.

NEW SECTION. Sec. 2. A new section is added to chapter 35.92 RCW to read as follows:

(1) Municipal utilities under this chapter are encouraged to provide information to their customers regarding landscaping that includes tree planting for energy conservation.

(2) Municipal utilities under this chapter are encouraged to request voluntary donations from their customers for the purposes of urban forestry. The request may be in the form of a check-off on the billing statement or other form of request for a voluntary donation.

NEW SECTION. Sec. 3. A new section is added to chapter 35A.80 RCW to read as follows:

(1) Code cities providing utility services under this chapter are encouraged to provide information to their customers regarding landscaping that includes tree planting for energy conservation.

(2) Code cities providing utility services under this chapter are encouraged to request voluntary donations from their customers for the purposes of urban forestry. The request may be in the form of a check-off on the billing statement or other form of a request for a voluntary donation.

NEW SECTION. Sec. 4. A new section is added to chapter 76.15 RCW to read as follows:

The urban forestry account is created in the custody of the state treasurer. All receipts from P.L. 101-624 (1990) shall be deposited into the account. Expenditures from the account may be used only to provide funding for urban forestry and to match federal funds from P.L. 101-624 (1990). Only the director of the department of natural resources or the director's designee may authorize expenditures from the account. The account is subject to allotment procedures under chapter 43.88 RCW, but no appropriation is required for expenditures from the account.

NEW SECTION. Sec. 5. A new section is added to chapter 80.28 RCW to read as follows:

(1) Gas companies and electrical companies under this chapter are encouraged to provide information to their customers regarding landscaping that includes tree planting for energy conservation.

(2) Gas companies and electrical companies under this chapter are encouraged to request voluntary donations from their customers for the purposes of urban forestry. The request may be in the form of a check-off on the billing statement or other form of a request for a voluntary donation.

Sec. 6. RCW 35.92.355 and 1979 ex.s. c 239 s 1 are each amended to read as follows:

The conservation of energy in all forms and by every possible means is found and declared to be a public purpose of highest priority. The legislature further declares that findings and purposes detailed in RCW 76.15.005 and 76.15.007 also apply to this chapter. The legislature further finds and declares that all municipal corporations, quasi municipal corporations, and other political subdivisions of the state which are engaged in the generation, sale, or distribution of energy should be granted the authority to develop and carry out programs which will conserve resources, reduce waste, and encourage more efficient use of energy by consumers.

In order to establish the most effective state-wide program for energy conservation, the legislature hereby encourages any company, corporation, or association engaged in selling or furnishing utility services to assist their customers in the acquisition and installation of materials and equipment, for compensation or otherwise, for the conservation or more efficient use of energy.

Sec. 7. RCW 43.19.668 and 1980 c 172 s 1 are each amended to read as follows:

The legislature finds and declares that the buildings, facilities, equipment, and vehicles owned or leased by state government consume significant amounts of energy and that energy conservation actions to provide for efficient energy use in these buildings, facilities, equipment, and vehicles will reduce the costs of state government. The legislature further declares that findings and purposes detailed in RCW 76.15.005 and 76.15.007 also apply to this chapter. In order for the operations of state government to provide the citizens of this state an example of energy use efficiency, the legislature further finds and declares that state government should undertake an aggressive program designed to reduce energy use in state buildings, facilities, equipment, and vehicles within a reasonable period of time.

Sec. 8. RCW 76.12.160 and 1988 c 128 s 35 are each amended to read as follows:

The department is authorized to sell to or exchange with persons intending to restock forest areas, tree seedling stock and tree seed produced at the state nursery.

The department may provide at cost, stock or seed to local governments or nonprofit organizations for urban tree planting programs consistent with the community and urban forestry program.

Sec. 9. RCW 76.15.007 and 1991 c 179 s 2 are each amended to read as follows:

The purpose of this chapter is to:

(1) Encourage planting and maintenance and management of trees in the state's municipalities and counties and maximize the potential of tree and vegetative cover in improving the quality of the environment.

(2) Encourage the coordination of state and local agency activities and maximize citizen participation in the development and implementation of community and urban forestry-related programs.

(3) Foster healthy economic activity for the state's community and urban forestry-related businesses through cooperative and supportive contracts with the private business sector.

(4) Facilitate the creation of ((~~employment opportunities~~)) jobs related to community and urban forestry activities including opportunities for retraining and employing displaced timber resources workers; opportunities for youth including inner city youth to learn teamwork, resource conservation, environmental appreciation, and job skills.

(5) Provide meaningful voluntary opportunities for the state's citizens and organizations interested in community and urban forestry activities.

Sec. 10. RCW 76.15.020 and 1991 c 179 s 4 are each amended to read as follows:

(1) The department may establish and maintain a program in community and urban forestry to accomplish the purpose stated in RCW 76.15.007. The department may assist municipalities and counties in establishing and maintaining community and urban forestry programs and encourage persons to engage in appropriate and improved tree management and care.

(2) The department may advise, encourage, and assist municipalities, counties, and other public and private entities in the development and coordination of policies, programs, and activities for the promotion of community and urban forestry.

(3) The department may appoint a committee or council to advise the department in establishing and carrying out a program in community and urban forestry.

(4) The department may assist municipal and county tree maintenance programs by making surplus equipment available on loan where feasible for community and urban forestry programs and cooperative projects.

(5) The department shall work with cities and counties in adopting ordinances and policies that promote the clustering of residential units through local granting of density bonuses that will help preserve, enhance, or rehabilitate natural features of the subject property such as significant woodlands, wildlife habitats, or streams.

Sec. 11. RCW 80.28.024 and 1980 c 149 s 1 are each amended to read as follows:

The legislature finds and declares that the potential for meeting future energy needs through conservation measures, including energy conservation loans, energy audits, and the use of renewable resources, such as solar energy, wind energy, wood, wood waste, municipal waste, agricultural products and wastes, hydroelectric energy, geothermal energy, and end-use waste heat, may not be realized without incentives to public and private energy utilities. The legislature further declares that findings and purposes detailed in RCW 76.15.005 and 76.15.007 also apply to this chapter. The legislature therefore finds and declares that actions and incentives by state government to promote conservation and the use of renewable resources would be of great benefit to the citizens of this state by encouraging efficient energy use and a reliable supply of energy based upon renewable energy resources.

Sec. 12. RCW 80.28.025 and 1991 c 347 s 23 are each amended to read as follows:

(1) In establishing rates for each gas and electric company regulated by this chapter, the commission shall adopt policies to encourage meeting or reducing energy demand through cogeneration as defined in RCW 82.35.020, measures which improve the efficiency of energy end use, and new projects which produce or generate energy from renewable resources, such as solar energy, wind energy, hydroelectric energy, geothermal energy, wood, wood waste, municipal wastes, agricultural products and wastes, and end-use waste heat. These policies shall include but are not limited to allowing a return on investment in measures to improve the efficiency of energy end use, cogeneration, or projects which produce or generate energy from renewable resources which return is established by adding an increment of two percent to the rate of return on common equity permitted on the company's other investment. Measures or projects encouraged under this section are those for which construction or installation is begun after June 12, 1980, and before January 1, 1990, and which, at the time they are placed in the rate base, are reasonably expected to save, produce, or generate energy at a total incremental system cost per unit of energy delivered to end use which is less than or equal to the incremental system cost per unit of energy delivered to end use from similarly available conventional energy resources which utilize nuclear energy or fossil fuels and which the gas or electric company could acquire to meet energy demand in the same time period. The rate of return increment shall be allowed for a period not to exceed thirty years after the measure or project is first placed in the rate base. This subsection shall apply to energy conservation through the use of landscaping with tree plantings for plantings begun after July 1, 1993, and completed by January 1, 2000.

(2) In establishing rates for water companies regulated by this chapter, the commission may consider the achievement of water conservation goals and the discouragement of wasteful water use practices.

Sec. 13. RCW 82.16.055 and 1980 c 149 s 3 are each amended to read as follows:

(1) In computing tax under this chapter there shall be deducted from the gross income:

(a) An amount equal to the cost of production at the plant for consumption within the state of Washington of:

(i) Electrical energy produced or generated from cogeneration as defined in RCW 82.35.020; and

(ii) Electrical energy or gas produced or generated from renewable energy resources such as solar energy, wind energy, hydroelectric energy, geothermal energy, wood, wood wastes, municipal wastes, agricultural products and wastes, and end-use waste heat; and

(b) Those amounts expended to improve consumers' efficiency of energy end use or to otherwise reduce the use of electrical energy or gas by the consumer including the use of landscaping with tree plantings.

(2) This section applies only to new facilities for the production or generation of energy from cogeneration or renewable energy resources or measures to improve the efficiency of energy end use on which construction or installation is begun after June 12, 1980, and before January 1, 1990.

(3) Deductions under subsection (1)(a) of this section shall be allowed for a period not to exceed thirty years after the project is placed in operation.

(4) Measures or projects encouraged under this section shall at the time they are placed in service be reasonably expected to save, produce, or generate energy at a total incremental system cost per unit of energy delivered to end use which is less than or equal to the incremental system cost per unit of energy delivered to end use from similarly available conventional energy resources which utilize nuclear energy or fossil fuels and which the gas or electric utility could acquire to meet energy demand in the same time period.

(5) The department of revenue, after consultation with the utilities and transportation commission in the case of investor-owned utilities and the governing bodies of locally regulated utilities, shall determine the eligibility of individual projects and measures for deductions under this section.

NEW SECTION. Sec. 14. A new section is added to chapter 43.19 RCW to read as follows:

The director of the department of general administration shall seek to further energy conservation objectives among other landscape objectives in planting and maintaining trees upon grounds administered by the department.

NEW SECTION. Sec. 15. A new section is added to chapter 76.15 RCW to read as follows:

The department may enter one or more agreements with one or more nonprofit organizations whose primary purpose is urban tree planting. The agreements shall be to further public education about and support for urban tree planting, and for obtaining voluntary activities by the local community organizations in tree planting programs. At least one of the agreements shall be with a state-wide organization incorporated as a Washington nonprofit corporation. The agreements shall ensure that such programs are consistent with the purposes of the community and urban forestry program under this chapter.

NEW SECTION. Sec. 16. A new section is added to chapter 76.15 RCW to read as follows:

The department shall encourage urban planting of tree varieties that provide the best combination of energy and water conservation, cost-effectiveness, fire safety and other safety, wildlife habitat, and aesthetic value.

NEW SECTION. Sec. 17. The Washington community and urban forestry council created by the department of natural resources under the authority of RCW 76.15.020 shall undertake a study of the following issues and report by January 1, 1994, to the legislature:

(1) Possible state public and private urban forestry funding sources; and

(2) Revenue and tax changes that would benefit urban forestry and encourage tree planting and maintenance.

NEW SECTION. Sec. 18. A new section is added to chapter 82.04 RCW to read as follows:

(1) A person shall be allowed a credit against the tax due under this chapter of an amount equal to the value of trees donated at no cost to a unit of local government or to a nonprofit organization for the purpose of planting upon public property in urban areas. A person claiming the credit shall submit documentation to the department establishing that the trees were planted upon public property in urban areas pursuant to a strategic planting plan. The department shall adopt rules providing for the documentation to be submitted when claiming the credit.

(2) No recipient is eligible for tax credits in excess of twenty-five thousand dollars.

(3) No recipient may receive a tax credit on taxes which have not been paid during the taxable year.

(4) No credit may be claimed for donations made after December 31, 1996.

NEW SECTION. Sec. 19. The sum of four hundred sixty thousand dollars, or as much thereof as may be necessary, is appropriated for the biennium ending June 30, 1995, from the general fund to the department of natural resources for the purposes of this act and the administration of the community and urban forestry program under chapter 76.15 RCW.