HOUSE BILL REPORT

EHB 1176

BYRepresentatives Nelson, May, Jacobsen, Crane and Miller; by request of Washington State Energy Office

Creating the energy efficiency account.

House Committe on Energy & Utilities

Majority Report:  Do pass. (12)

      Signed by Representatives Nelson, Chair; Todd, Vice Chair; Hankins, Ranking Republican Member; Brooks, Cooper, Gallagher, Jacobsen, Jesernig, R. Meyers, Miller, H. Myers and S. Wilson.

House Staff:Fred Adair (786-7113) and Harry Reinert (786-7110)

Rereferred House Committee on Capital Facilities & Financing

Majority Report:  Do pass.  (11)

      Signed by Representatives H. Sommers, Chair; Rasmussen, Vice Chair; Beck, Betrozoff, Bowman, Braddock, Fraser, Jacobsen, Peery, Wang and Winsley.

House Staff:      Nancy Stevenson (786-7136)

AS PASSED HOUSE JANUARY 15, 1990

BACKGROUND:

The state government spends nearly $50 million yearly for energy in state owned buildings.

The most common time for improving the energy efficiency of state buildings is at the time of capital construction, either through remodeling or new construction.  Because there is intense competition for capital budget funds, many energy efficiency improvements may be lost because of their initial cost.

The state energy office has used a revolving fund with a portion of oil overcharge funds received as part of a settlement of a lawsuit against several large oil companies. This program has resulted in a number of energy efficiency improvements and in a greater amount of investment than would have been possible under an equivalent capital budget appropriation.

SUMMARY:

An energy efficiency account is created in the state treasury that may only be used for energy efficiency improvements in state owned or operated buildings.  The State Energy Office shall administer the account subject to appropriation by the Legislature.  The Energy Office and the state agency receiving the loan must enter into an agreement that must include a commitment by the agency receiving the loan to repay the loan on an established schedule and assurance that the energy efficiency improvements will save energy.  Inputs into the energy efficiency account may come from sources other than repaying state agencies.

Fiscal Note:      Available.

House Committee ‑ Testified For:    (Energy & Utilities)  Dick Watson, Washington State Energy Office.

(Capital Facilities & Financing)  Same as Energy & Utilities.

House Committee - Testified Against:      (Energy & Utilities)  No one.

(Capital Facilities & Financing)  No one.

House Committee - Testimony For:    (Energy & Utilities)  The current program for funding energy efficiency improvements has been very successful, but has been limited because of a minimal amount of funding.  This bill will allow considerable additional savings for the state in the ensuing years.

(Capital Facilities & Financing)  Energy efficiency projects for the Department of Social and Health Services, The Evergreen State College and the Military Department are anticipated to be paid back in four years.  Over a 10 year period, the initial appropriation of $1.9 million will generate $7.5 million for funding energy efficiency improvements.

House Committee - Testimony Against:      (Energy & Utilities)  None.

(Capital Facilities & Financing)  None.