HOUSE BILL REPORT

SHB 425

BYHouse Committee on Energy & Utilities (originally sponsored by Representatives Nelson, Barnes, Jacobsen, P. King and Unsoeld; by request of Washington State Energy Office)

Revising provisions on district heating systems.

House Committe on Energy & Utilities

Majority Report:     The substitute bill be substituted therefor and the substitute bill do pass.  (14)

     Signed by Representatives Nelson, Chair; Armstrong, Barnes, Brooks, Gallagher, Hankins, Jacobsen, Jesernig, Madsen, May, Miller, Sutherland, Unsoeld and S. Wilson.

House Staff:Fred Adair (786-7113) and Ted Hunter (786-7114)

AS PASSED HOUSE MARCH 6, 1987

BACKGROUND:

The current description of energy resources available for district heating systems is not complete and not as well organized as it could be.  Not included is the rapidly emerging technology wherein heat pumps are allied with a warm water heat source.  A commonly available warm water heat source is municipal sewage flow. The term "hydrothermal resource" includes this usage.

The current definition of "municipality" does not include metropolitan municipal corporations.  An example, King County METRO is a logical organization to derive energy from its sewage system.

SUMMARY:

Energy definitions are reorganized and restated.  A definition of hydrothermal resource is added. A metropolitan municipal corporation is added to the list of governmental entities defined under "municipality".  The effect is that there is an additional energy resource authorized for use in district heating systems and there is an additional governmental entity that can become involved.  This bill in no way authorizes the formation of an electric utility.

EFFECT OF SENATE AMENDMENT(S):  Before a municipality may establish a heating systems or heating services, a public hearing must be held to assess impacts on rates of utility customers in the area to be served.  It is state policy that development of these systems or services should be done in a way to minimize impacts on rates of customers of existing utilities.

Fiscal Note:    Not Requested.

House Committee ‑ Testified For:     Ed McGuire and Gordon Bloomquist, State Energy Office; Ruth Hertz, Metropolitan Municipal Corporation of King County (King County METRO).

House Committee - Testified Against: None Presented.

House Committee - Testimony For:     Warm fluids, including sewage, coupled with heat pumps constitute a rapidly evolving and very efficient means of supplying heat.  This technology should be encouraged and facilitated.  Metropolitan municipal corporations should be included in the local governmental entities authorized to develop district heating systems (a principal means of distributing heat from a warm fluid-heat pump system).

House Committee - Testimony Against: None Presented.

VOTE ON FINAL PASSAGE:

     Yeas 97; Nays 0; Absent 0; Excused 1

Excused:   Mr. Speaker