AN ACT Relating to the formation of joint agencies for the development of electric generating plants and facilities; adding new sections to chapter 43.52 RCW; creating a new section; and repealing RCW 43.52.250, 43.52.260, 43.52.272, 43.52.360, 43.52.430, and 43.52.470.

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

NEW SECTION. Sec. 1. Unless the context clearly requires otherwise, the following definitions apply throughout this chapter:

(1) "Board" means the board of directors of the joint operating agency unless the operating agency is constructing, operating, terminating, or decommissioning a nuclear power plant under a site certification agreement under chapter 80.50 RCW, in which case "board" means the executive board.

(2) "Board of directors" means the board established under RCW 43.52.370.

(3) "Canada" means Canada or any province thereof.

(4) "Chairman" means the chairman of the energy facility site evaluation council.

(5) "City" means any city or town in the state of Washington authorized to engage in the business of generating and/or distributing electricity.

(6) "District" means a public utility district as created under the laws of the state of Washington authorized to engage in the business of generating and/or distributing electricity.

(7) "Executive board" means the board established under RCW 43.52.374.

(8) "Generation and/or transmission of electricity" includes generation by water power, by steam power, by nuclear power, or by any other means.

(9) "Managing director" means the person appointed by an executive board under RCW 43.52.374.

(10) "Operating agency" or "joint operating agency" means a municipal corporation created pursuant to section 2 of this act.

(11) "Public utility" means any person, firm or corporation, political subdivision or governmental subdivision including cities, towns and public utility districts engaged in or authorized to engage in the business of generating, transmitting or distributing electric energy.

(12) "Revenue bonds or warrants" means bonds, notes, bond anticipation notes, warrants, certificates of indebtedness, commercial paper, refunding or renewal obligations, payable from a special fund or revenues of the utility properties operated by the joint operating agency.

NEW SECTION. Sec. 2. Two or more cities or public utility districts or combinations thereof may form a joint operating agency for the purpose of constructing, operating and owning plants, systems and other facilities and extensions thereof, for the generation and/or transmission of electricity. Each such agency shall be a municipal corporation of the state of Washington with the right to sue and be sued in its own name.

Application for the formation of a joint operating agency, and for each new project or facility for the generation of electricity, shall be made to the chairman after the adoption of a resolution by the legislative body of each city or public utility district to be initial members thereof authorizing the city or district to participate. The resolution shall set forth: (1) The name and address of each participant, together with a certified copy of the resolution authorizing its participation; (2) a general description of projects proposed or contemplated by the applicant and the principal project works, including dams, reservoirs, power houses and transmission lines; (3) the general location of projects proposed or contemplated by the applicant and, if a hydroelectric project, the name of the stream on which such proposed or contemplated project is to be located; (4) if any project is for the generation of electricity, the proposed use or market for the power to be developed; (5) a general statement of the current and future electric loads and resources of each of the participants; (6) a statement of the proposed method of financing the project including preliminary engineering and other studies and the participation therein by each of the participants; (7) a statement of the anticipated cost of each project proposed or contemplated by the applicant and an assessment of the impact of these costs on the rates of each participant; and (8) certification by the applicant that chapter 80.52 RCW will be complied with.

Before adoption of the resolution and application to the chairman, each city or public utility district shall conduct two open meetings to inform the public of the intent to form a joint operating agency, the need for the projects proposed or contemplated by the joint operating agency, and the estimated rate impacts of the projects proposed or contemplated by the joint operating agency. The city or public utility district shall publicize the time, date, and purpose of the first meeting by publication in a newspaper of general circulation within the service area of the city or public utility district once each week for the two weeks prior to the meeting.

The purpose of the first meeting shall be to disclose information. Items to be disclosed at the meeting are: (1) The need for the joint operating agency; (2) the need for the projects proposed or contemplated by the joint operating agency; (3) a description of each project proposed or contemplated by the joint operating agency as consistent or inconsistent with the Northwest Conservation and Electric Power Plan prepared pursuant to P.L. 96-501; (4) estimated cost of the projects proposed or contemplated by the joint operating agency; (5) the estimated rate impact on the city or public utility district ratepayers; (6) a statement on the effects on the economy of the state both by proceeding with the project or not proceeding; (7) compliance with the provisions of chapter 80.52 RCW; and (8) other information deemed pertinent by the legislative body of the city or public utility district.

The second meeting shall be a public hearing advertised in a like manner as the first. In addition, notice shall be mailed to each customer of the city or public utility district at least ten days prior to the second public meeting. The notice shall include the estimated rate impact on the ratepayers within the city or public utility district. Only after the second meeting and adoption of the resolution shall the application be submitted.

Within ninety days after the receipt of the application, the chairman shall make written findings and approve or deny the application. If it appears (a) that the statements set forth in the application are substantially correct; (b) that the proposed or contemplated project is such as is adaptable to the needs, both actual and prospective, of the participants and such other public utilities as indicate a good faith intention by contract or by letter of intent to participate in the use of such project; (c) that no objection to the formation of such operating agency has been filed by any other public utility which prior to and at the time of the filing of the application for such operating agency had on file a permit or license from an agency of the state or an agency of the United States, whichever has primary jurisdiction, for the construction of such project; (d) that adequate provision will be made for financing the preliminary engineering, legal and other costs necessary thereto; the chairman shall make findings to that effect and enter an order creating such operating agency, establishing the name thereof and the specific project for the construction and operation for which such operating agency is formed. Such order shall not be construed to constitute a bar to any other public utility proceeding according to law to procure any required governmental permits, licenses or authority, but such order shall establish the competency of the operating agency to proceed according to law to procure such permits, licenses or authority.

No operating agency shall undertake projects in addition to those for which it was formed without the approval of the legislative bodies of a majority of the members thereof. In the event that an operating agency desires to undertake an additional project, application to construct such additional project shall be made to the chairman in the same manner, subject to the same requirements and with the same notice as required for an initial agency and project and shall not be constructed until an order authorizing the same shall have been made by the chairman in the manner provided for such original application.

After the formation of a joint operating agency, any other city or district may become a member upon application to the agency after the adoption of a resolution of its legislative body authorizing the city or district to participate, and with the consent of the joint operating agency by the affirmative vote of the majority of its members. Any member may withdraw from a joint operating agency, and thereupon such member shall forfeit any and all rights or interest which it may have in the joint operating agency or in any of the assets thereof: PROVIDED, That all contractual obligations incurred while a member shall remain in full force and effect. An operating agency may be dissolved by the unanimous agreement of the members, and the members, after making provisions for the payment of all debts and obligations, shall thereupon hold the assets thereof as tenants in common.

NEW SECTION. Sec. 3. Any party in interest deeming itself aggrieved by any order of the chairman may appeal to the superior court of Thurston county by serving upon the chairman and filing with clerk of said court within thirty days after the entry of the order a notice of appeal. The chairman shall, within ten days after service of the notice of appeal, file with the clerk of the court a return containing a true copy of the order appealed from, together with a transcript of the record of the proceeding before the chairman, after which the appeal shall be at issue. The appeal shall be heard and decided by the court upon the record before the chairman and the court may either affirm, set aside, or remand the order appealed from for further proceedings. Appeal may be had to the supreme court or the court of appeals as in the case of civil appeals.

NEW SECTION. Sec. 4. Except as provided in section 2 of this act, the validity of the organization of any joint operating agency can be questioned only by action instituted within six months from the date that the joint operating agency is created. If the validity of the existence of any joint operating agency is not challenged within that period, by the filing and service of a petition or complaint in the action, the state shall be barred forever from questioning the validity of the joint operating agency by reason of any defect claimed to exist in the organization thereof, and it shall be deemed validly organized for all purposes. Any joint operating agency heretofore (March 26, 1957) attempted to be organized pursuant to chapter 43.52 RCW and which has maintained its existence since the date of such attempted organization, is hereby declared legal and valid and its organization and creation are validated and confirmed.

NEW SECTION. Sec. 5. Sections 1 through 4 of this act are a continuation of sections repealed by this act and apply equally to entities created under chapter 43.52 RCW before the effective date of this act; however, nothing in this act requires reapplication by any joint operating agency in existence on the effective date of this act. This act shall be liberally construed to effectuate its purposes.

NEW SECTION. Sec. 6. Sections 1 through 5 of this act are each added to chapter 43.52 RCW.

NEW SECTION. Sec. 7. This act shall not be construed as affecting any existing right acquired, or liability or obligation incurred under the sections repealed in this act, nor any rule, regulation, or order adopted, nor any proceeding instituted, under those sections.

NEW SECTION. Sec. 8. The following acts or parts of acts are each repealed:

(1) Section 43.52.250, chapter 8, Laws of 1965, section 1, chapter 184, Laws of 1977 ex. sess., section 1, chapter 1, Laws of 1981 1st ex. sess., section 1, chapter 43, Laws of 1982 1st ex. sess. and RCW 43.52.250;

(2) Section 43.52.260, chapter 8, Laws of 1965, section 2, chapter 184, Laws of 1977 ex. sess. and RCW 43.52.260;

(3) Section 43.52.272, chapter 8, Laws of 1965 and RCW 43.52.272;

(4) Section 43.52.360, chapter 8, Laws of 1965, section 6, chapter 184, Laws of 1977 ex. sess., and RCW 43.52.360;

(5) Section 43.52.430, chapter 8, Laws of 1965, section 113, chapter 81, Laws of 1971, section 10, chapter 184, Laws of 1977 ex. sess. and RCW 43.52.430; and

(6) Section 43.52.470, chapter 8, Laws of 1965 and RCW 43.52.470.