HOUSE BILL REPORT

HJR 4223

BYRepresentatives Nelson, Barnes and Jacobsen; by request of Washington State Energy Office

Extending and expanding the authorization for government utilities to lend money for energy conservation.

House Committe on Energy & Utilities

Majority Report:  Do pass. (13)

      Signed by Representatives Nelson, Chair; Todd, Vice Chair; Armstrong, Barnes, Brooks, Gallagher, Hankins, Jacobsen, Meyers, Miller, Sutherland, Unsoeld and S. Wilson.

House Staff:Fred Adair (786-7113)

AS PASSED HOUSE JANUARY 25, 1988

BACKGROUND:

In 1979 it appeared that enabling public utilities to make energy conservation loans was a useful means for improving the electric energy supply outlook.  This required a constitutional amendment to enable an exception to the general prohibition against loaning the state's credit.  The publicly voted measure had a 10 year duration, expiring January 1, 1990.

Energy conservation is still very much in the public interest and public utilities should continue to have the option of liberating electric energy for additional customers by this means. Additionally, since the commercial and industrial sectors have great conservation potential, it is in the public interest to expand the authority.

SUMMARY:

The expiration date on the constitutional amendment authorizing public utility conservation loans is eliminated. loan authority is expanded to include commercial and industrial customers.

EFFECT OF SENATE AMENDMENT(S):  Financing authorized is limited to conservation measures in existing buildings.  The financing shall not be used for any purpose that results in conversion from one energy source to another.

Fiscal Note:      Not Requested.

House Committee ‑ Testified For:    Matt Dillon, Snohomish County Public Utility District Commissioner; Larry Gunn, Seattle City Light; Dick Watson, Director, State Energy Office; Jake Fey, City of Tacoma; and Tom Mortimer, Washington Public Utility District Association.

House Committee - Testified Against:      Michael Fox (for himself).  He was not specifically opposed but expressed cautions.

House Committee - Testimony For:    This has been a successful and valuable option for securing electric energy to serve additional demand.  It generally works in conjunction with grants by loaning up-front cash to enable customer participation.  The 10 year duration was placed in 1979 because the venture then was considered experimental.  Now it is well proven and valuable into the indefinite future.  Accordingly, the expiration should be eliminated.  Additionally, the inexpensive conservation potential in the loads of commercial and industrial customers is large and the loan opportunity should be extended to them.

House Committee - Testimony Against:      Building tightening may increase indoor air quality problems.  Governments should beware of liability ramifications.

VOTE ON FINAL PASSAGE:

      Yeas 94; Excused 4

Excused:    Representatives Belcher, Bumgarner, Smith C, Taylor