AN ACT Relating to energy conservation in state facilities; amending RCW 43.19.190; adding new sections to chapter 43.21F RCW; creating new sections; repealing RCW 43.19.668, 43.19.669, 43.19.670, 43.19.675, 43.19.680, and 43.19.685; providing an effective date; and declaring an emergency.

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

NEW SECTION. Sec. 1. (1) 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. 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. (2) It is the purpose of sections 1 through 6 of this act to require energy audits in state-owned buildings, to require energy audits as a lease condition in all new, renewed, and renegotiated leases of buildings by the state, to undertake such modifications and installations as are necessary to maximize the efficient use of energy in these buildings, and to establish a policy for the purchase of state vehicles, equipment, and materials which results in efficient energy use by the state.

NEW SECTION. Sec. 2. Unless the context clearly requires otherwise, the following definitions shall apply throughout sections 1 through 6 of this act.

(1) "Energy audit" means a determination of the energy consumption characteristics of a facility which consists of the following elements:

(a) An energy consumption survey which identifies the type, amount, and rate of energy consumption of the facility and its major energy systems. This survey shall be made by the agency responsible for the facility.

(b) A walk-through survey which determines appropriate energy conservation maintenance and operating procedures and indicates the need, if any, for the acquisition and installation of energy conservation measures. This survey shall be made by the agency responsible for the facility if it has technically qualified personnel available. The director of the state energy office shall provide technically qualified personnel for the responsible agency if necessary.

(c) A technical assistance study, which is an intensive engineering analysis of energy conservation measures for the facility, net energy savings, and a cost-effectiveness determination. This element is required only for those facilities designated in the technical assistance study schedule adopted under section 5(2) of this act.

(2) "Energy conservation measure" means an installation or modification of an installation in a facility which is primarily intended to reduce energy consumption or allow the use of an alternative energy source, including:

(a) Insulation of the facility structure and systems within the facility;

(b) Storm windows and doors, multiglazed windows and doors, heat absorbing or heat reflective glazed and coated windows and door systems, additional glazing, reductions in glass area, and other window and door system modifications;

(d) Equipment required to operate variable steam, hydraulic, and ventilating systems adjusted by automatic energy control systems;

(e) Solar space heating or cooling systems, solar electric generating systems, or any combination thereof;

(f) Solar water heating systems;

(g) Furnace or utility plant and distribution system modifications including replacement burners, furnaces, and boilers which substantially increase the energy efficiency of the heating system; devices for modifying flue openings which will increase the energy efficiency of the heating system; electrical or mechanical furnace ignitions systems which replace standing gas pilot lights; and utility plant system conversion measures including conversion of existing oil- and gas-fired boiler installations to alternative energy sources;

(h) Caulking and weatherstripping;

(i) Replacement or modification of lighting fixtures which increase the energy efficiency of the lighting system;

(j) Energy recovery systems; and

(k) Such other measures as the director finds will save a substantial amount of energy.

(3) "Energy conservation maintenance and operating procedure" means modification or modifications in the maintenance and operations of a facility, and any installations within the facility, which are designed to reduce energy consumption in the facility and which require no significant expenditure of funds.

(4) "Facility" means a building, a group of buildings served by a central energy distribution system, or components of a central energy distribution system.

(5) "Implementation plan" means the annual tasks and budget required to complete all acquisitions and installations necessary to satisfy the recommendations of the energy audit.

NEW SECTION. Sec. 3. (1) The director of the state energy office shall have primary authority for planning, designing, and implementing energy conservation in state facilities.

(2) The director shall use state, federal, utility, and other funds, as may be available, to identify potential savings to the state through greater energy efficiency, implement energy conservation measures, and increase otherwise the efficiency of energy use in state facilities.

(3) The director may, to carry out the responsibilities of this section, conduct energy audits and technical assistance studies; collect and analyze data on the energy consumption and efficiency; provide training and education to facility managers and operators; develop guidelines for planning and operation of state facilities; perform necessary engineering and design work; and purchase, hire, contract, or provide otherwise for necessary equipment, materials, other goods, and labor.

(4) The director shall in implementing this section cooperate with the director of each state agency for which potential energy savings are identified.

(5) The director shall develop policy recommendations to increase the energy efficiency of state facilities for consideration by the governor and the legislature.

NEW SECTION. Sec. 4. The director of the state energy office shall conduct, by contract or other arrangement, an energy audit for each state-owned facility that has not been previously audited and shall update each energy audit whenever the facility's operation or purpose substantially changes. All energy audits shall be coordinated with and complement other governmental energy audit programs.

NEW SECTION. Sec. 5. (1) Upon completion of each walk-through survey required by section 6 of this act, the director of the state energy office or the agency responsible for the facility if other than the state energy office shall implement energy conservation maintenance and operation procedures that may be identified for any state-owned facility. These procedures shall be implemented as soon as possible but not later than twelve months after the walk-through survey.

(2) Energy conservation measure acquisitions and installations shall be scheduled to be fifty-five percent complete by June 30, 1989, or at the end of the capital budget biennium which includes that date, whichever is later, eighty-five percent complete by June 30, 1993, or at the end of the capital budget biennium which includes that date, whichever is later, and fully complete by June 30, 1995, or at the end of the capital budget biennium which includes that date, whichever is later. Each state agency shall implement energy conservation measures with a payback period of twenty-four months or fewer that have a positive cash flow in the same biennium.

(3) For each biennium until all measures are installed, the director of the state energy office shall report to the governor and legislature installation progress, measures planned for installation during the ensuing biennium, and changes, if any, to the technical assistance study schedule. This report shall be submitted at the end of a year that immediately precedes the capital budget adoption, and every two years thereafter until all measures are installed.

(4) The director of the state energy office shall adopt rules to facilitate private investment in energy conservation measures for state-owned buildings consistent with state law.

NEW SECTION. Sec. 6. The director of the state energy office, in consultation with the director of general administration shall develop lease covenants, conditions, and terms which:

(1) Obligate the lessor to conduct or have conducted a walk-through survey of the leased premises;

(2) Obligate the lessor to implement identified energy conservation maintenance and operating procedures upon completion of the walk-through survey; and

(3) Obligate the lessor to undertake technical assistance studies and subsequent acquisition and installation of energy conservation measures if the director of general administration, in accordance with rules adopted by the department, determines that these studies and measures will both conserve energy and can be accomplished with a state funding contribution limited to the savings which would result in utility expenses during the term of the lease.

These lease covenants, conditions, and terms shall be incorporated into all specified new, renewed, and renegotiated leases executed on or after the effective date of this section. This section applies to all leases under which state occupancy is at least half of the facility space and includes an area greater than three thousand square feet.

Sec. 7. Section 3, chapter 32, Laws of 1969 as last amended by section 1, chapter 103, Laws of 1980 and RCW 43.19.190 are each amended to read as follows:

The director of general administration, through the state purchasing and material control director, shall:

(1) Establish and staff such administrative organizational units within the division of purchasing as may be necessary for effective administration of the provisions of RCW 43.19.190 through 43.19.1939;

(2) Purchase all material, supplies, services, and equipment needed for the support, maintenance, and use of all state institutions, colleges, community colleges, and universities, the offices of the elective state officers, the supreme court, the court of appeals, the administrative and other departments of state government, and the offices of all appointive officers of the state: PROVIDED, That the provisions of RCW 43.19.190 through 43.19.1937 do not apply in any manner to the operation of the state legislature except as requested by said legislature: PROVIDED, That primary authority for the purchase of specialized equipment, instructional, and research material for their own use shall rest with the colleges, community colleges, and universities: PROVIDED FURTHER, That universities operating hospitals may make purchases for hospital operation by participating in contracts for materials, supplies, and equipment entered into by cooperative hospital service organizations as defined in section 501(e) of the Internal Revenue Code, or its successor: PROVIDED FURTHER, That primary authority for the purchase of materials, supplies, and equipment for resale to other than public agencies shall rest with the state agency concerned: PROVIDED FURTHER, That authority to purchase services as included herein does not apply to personal services authorized for direct acquisition from vendors by state organizations and filed under the provisions of RCW 39.29.010 through 39.29.030, unless such organization specifically requests assistance from the division of purchasing in obtaining personal services and resources are available within the division to provide such assistance: PROVIDED FURTHER, That the authority for the purchase of insurance and bonds shall rest with the risk manager under RCW 43.19.1935 as now or hereafter amended: PROVIDED FURTHER, That the primary authority for the purchase of equipment and material used to install energy conservation measures in state facilities shall rest with the state energy office as provided for in section 3 of this 1987 act;

(3) Provide the required staff assistance for the state supply management advisory board through the division of purchasing;

(4) Have authority to delegate to state agencies authorization to purchase or sell, which authorization shall specify restrictions as to dollar amount or to specific types of material, equipment, services, and supplies: PROVIDED, That acceptance of the purchasing authorization by a state agency does not relieve such agency from conformance with other sections of RCW 43.19.190 through 43.19.1939, as now or hereafter amended, or from policies established by the director after consultation with the state supply management advisory board: PROVIDED FURTHER, That delegation of such authorization to a state agency, including an educational institution, to purchase or sell material, equipment, services, and supplies shall not be granted, or otherwise continued under a previous authorization, if such agency is not in substantial compliance with overall state purchasing and material control policies as established herein;

(5) Contract for the testing of material, supplies, and equipment with public and private agencies as necessary and advisable to protect the interests of the state;

(6) Prescribe the manner of inspecting all deliveries of supplies, materials, and equipment purchased through the division;

(7) Prescribe the manner in which supplies, materials, and equipment purchased through the division shall be delivered, stored, and distributed;

(8) Provide for the maintenance of a catalogue library, manufacturers' and wholesalers' lists, and current market information;

(9) Provide for a commodity classification system and may, in addition, provide for the adoption of standard specifications after receiving the recommendation of the supply management advisory board;

(10) Provide for the maintenance of inventory records of supplies, materials, and other property;

(11) Prepare rules and regulations governing the relationship and procedures between the division of purchasing and state agencies and vendors;

(12) Publish procedures and guidelines for compliance by all state agencies, including educational institutions, which implement overall state purchasing and material control policies;

(13) Conduct periodic visits to state agencies, including educational institutions, to determine if statutory provisions and supporting purchasing and material control policies are being fully implemented, and based upon such visits, take corrective action to achieve compliance with established purchasing and material control policies under existing statutes when required.

NEW SECTION. Sec. 8. All powers, duties, and functions of the director of general administration pertaining to state energy audits in state-owned buildings and in buildings leased by the state are transferred to the state energy office. All references to the director or the director of general administration in the Revised Code of Washington shall be construed to mean the director or the state energy office when referring to the functions transferred in this section.

NEW SECTION. Sec. 9. All reports, documents, surveys, books, records, files, papers, or written material in the possession of the director of general administration pertaining to the powers, functions, and duties transferred shall be delivered to the custody of the state energy office. All cabinets, furniture, office equipment, motor vehicles, and other tangible property employed by the director of general administration in carrying out the powers, functions, and duties transferred shall be made available to the state energy office. All funds, credits, or other assets held in connection with the powers, functions, and duties transferred shall be assigned to the state energy office.

Any appropriations made to the director of general administration for carrying out the powers, functions, and duties transferred shall, on the effective date of this section, be transferred and credited to the state energy office.

Whenever any question arises as to the transfer of any personnel, funds, books, documents, records, papers, files, equipment, or other tangible property used or held in the exercise of the powers and the performance of the duties and functions transferred, the director of financial management shall make a determination as to the proper allocation and certify the same to the state agencies concerned.

NEW SECTION. Sec. 10. All rules and all pending business before the director of general administration pertaining to the powers, functions, and duties transferred shall be continued and acted upon by the state energy office. All existing contracts and obligations shall remain in full force and shall be performed by the state energy office.

NEW SECTION. Sec. 11. The transfer of the powers, duties, functions, and personnel of the director of general administration shall not affect the validity of any act performed before the effective date of this section.

NEW SECTION. Sec. 12. If apportionments of budgeted funds are required because of the transfers directed by sections 9 through 11 of this act, the director of financial management shall certify the apportionments to the agencies affected, the state auditor, and the state treasurer. Each of these shall make the appropriate transfer and adjustments in funds and appropriation accounts and equipment records in accordance with the certification.

NEW SECTION. Sec. 13. Nothing contained in sections 8 through 12 of this act may be construed to alter any existing collective bargaining unit or the provisions of any existing collective bargaining agreement until the agreement has expired or until the bargaining unit has been modified by action of the personnel board as provided by law.

NEW SECTION. Sec. 14. Sections 1 through 6 of this act are each added to chapter 43.21F RCW.

NEW SECTION. Sec. 15. The following acts or parts of acts are each repealed:

(1) Section 1, chapter 172, Laws of 1980 and RCW 43.19.668;

(2) Section 2, chapter 172, Laws of 1980 and RCW 43.19.669;

(3) Section 3, chapter 172, Laws of 1980, section 1, chapter 48, Laws of 1982 and RCW 43.19.670;

(4) Section 4, chapter 172, Laws of 1980, section 2, chapter 48, Laws of 1982 and RCW 43.19.675;

(5) Section 5, chapter 172, Laws of 1980, section 3, chapter 48, Laws of 1982, section 1, chapter 313, Laws of 1983, section 2, chapter 325, Laws of 1986 and RCW 43.19.680; and

(6) Section 6, chapter 172, Laws of 1980, section 4, chapter 48, Laws of 1982 and RCW 43.19.685.

NEW SECTION. Sec. 16. This act is necessary for the immediate preservation of the public peace, health, and safety, the support of the state government and its existing public institutions, and shall take effect July 1, 1987.