AN ACT Relating to the utility intervention program; adding a new chapter to Title 80 RCW; and making an appropriation.

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

NEW SECTION. Sec. 1. The legislature finds that utility consumers benefit from the activities of the advocacy of the attorney general's office of public counsel. Additional advocates for the interests of residential utility consumers will further assure that public policies affecting the quality and price of utility services reflect the needs and interests of residential consumers. It is the intent of the legislature to encourage the representation of utility consumers in hearings before the utilities and transportation commission through enactment of a program to provide intervenor funding. This chapter is not intended to supplant or duplicate the activities of the attorney general's office of public counsel. The purposes promoted through this chapter are of a state-wide interest and not a private or special concern.

NEW SECTION. Sec. 2. This chapter shall be known and may be cited as the "utility intervention program act."

NEW SECTION. Sec. 3. The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.

(1) "Commercial utility consumer" means a person, sole proprietorship, partnership, association, or other entity that receives or represents entities that receive utility service ordinarily and primarily for use in connection with the manufacture, sale, or distribution of goods or the provision of services, but does not include a nonprofit organization representing residential or small business utility consumers.

(2) "Consumer" or "residential utility consumer" means a natural person who is a resident of this state receiving utility service for use within an individual household, or for use with an improvement reasonably appurtenant to and normally associated with an individual household.

(3) "Small business" means any business entity (including a sole proprietorship, corporation, partnership, or other legal entity) owned and operated independently from all other businesses, with the purpose of making a profit, and having fifty or fewer employees.

(4) "Utility" means any public service company regulated by the utilities and transportation commission.

NEW SECTION. Sec. 4. (1) The commission shall establish a utility intervention program to consider and award grants for intervention in proceedings before the commission up to a limit of twenty thousand dollars per case. The commission may seek the assistance of the department of community development, the department of social and health services, and the state energy office in establishing and operating the program.

(2) The commission shall only consider applications for grants by nonprofit organizations that serve the interests of residential or small business utility consumers. The commission shall not consider an application which primarily benefits the applicant or a service provided or administered by the applicant. The commission shall not consider an application from a nonprofit organization if one of the organization's principal interests or unifying principles is the welfare of a utility or its investors or employees, or the welfare of commercial utility consumers. Mere ownership of securities by members of a nonprofit organization shall not disqualify an application submitted by that organization.

(3) In awarding grants, the commission shall encourage the representation of various types of residential or small business utility consumers, including but not limited to those with economic or geographic differences and may provide funds to different applicants whose applications are related to a similar issue limiting the purposes to a particular type of representation.

(4) In determining whether to grant funding to an applicant the following criteria shall be considered and balanced:

(a) Evidence of the applicant's competence, experience, and commitment to advancing the interests of residential or small business utility consumers;

(b) The extent to which the applicant is representative of or has a previous history of advocating the interests of consumers, especially residential or small business utility consumers;

(c) Data supporting the anticipated effect of the proposal contained in the application on residential or small business utility consumers;

(d) Evidence demonstrating the potential for continuity of effort and the development of expertise in relation to the proposal contained in the application;

(e) The uniqueness or innovativeness of an applicant's position or point of view; and

(f) Nonduplication of efforts by the attorney general's office of public counsel.

(5) No applicant shall receive in any calendar year grants totaling more than twenty-five percent of the funds available for distribution.

NEW SECTION. Sec. 5. The commission may issue a warrant to an applicant for a grant of money in advance of an applicant's proposed actions as set forth in the application if necessary to enable the applicant to initiate, continue, or complete the proposed actions.

NEW SECTION. Sec. 6. (1) A recipient of a grant may use funds to hire staff, consultants, and outside counsel, or make any other reasonable expenditure for the advancement of the proposed action approved by the council.

(2) A recipient of a grant pursuant to section 4 of this act shall file with the commission a report within ninety days following the end of the calendar year or as required under the grant. The report shall be made in a form prescribed by the commission. The report shall include the following information:

(a) An account of all expenditures of grant funds made by the grant recipient. Information shall include:

(i) Employee and contract costs;

(ii) Costs of materials and supplies;

(iii) Filing fees, and other costs incurred in the representation of residential utility customers under section 4 of this act;

(b) Any additional information required.

(3) Failure to file a report in a timely and accurate manner shall be a basis for denial of future grant applications.

NEW SECTION. Sec. 7. The commission shall allocate moneys from its public service revolving fund for the purposes of the utility intervention program and such use is an expense of operation of the commission.

NEW SECTION. Sec. 8. (1) This chapter, being necessary for the welfare of the state and its inhabitants, shall be liberally construed to effect its purposes.

(2) Nothing in this chapter shall be construed to limit the right of any person to initiate, intervene in, or otherwise participate in an agency proceeding or court action.

NEW SECTION. Sec. 9. Sections 1 through 8 of this act shall constitute a new chapter in Title 80 RCW.

NEW SECTION. Sec. 10. There is appropriated from the public service revolving fund to the utilities and transportation commission, for the biennium ending June 30, 1989, the sum of five hundred thousand dollars, or as much thereof as may be necessary, to carry out the purposes of this act.

NEW SECTION. Sec. 11. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.