HOUSE BILL REPORT

SB 5705

BYSenators Benitz, Bluechel and Nelson

Requiring the energy facility site evaluation council to consider the extent of carbon dioxide emissions by thermal plant facilities seeking certification.

House Committe on Energy & Utilities

Majority Report:  Do pass as amended.  (7)

      Signed by Representatives Nelson, Chair; H. Myers, Vice Chair; Bennett, Cooper, Gallagher, Jacobsen and Jesernig.

Minority Report:  Do not pass. (4)

      Signed by Representatives Hankins, Ranking Republican Member; May, Miller and S. Wilson.

House Staff:Harry Reinert (786-7110)

AS REPORTED BY COMMITTEE ON ENERGY & UTILITIES

FEBRUARY 23, 1990

BACKGROUND:

The Energy Facility Site Evaluation Council (EFSEC) was established by the Legislature to consider environmental impacts of major energy projects. EFSEC is directed to take actions that will "preserve and protect the quality of the environment" and "provide abundant energy at reasonable cost."  EFSEC has authority to approve thermal power plants, oil and gas pipelines, oil refineries, and port facilities for the shipment of oil and gas.

In the last few years, a considerable amount of scientific discussion has developed about the "greenhouse effect."  There is evidence to suggest that the increasing production of carbon dioxide through human activity is gradually increasing the atmospheric temperature.  If this temperature increase is prolonged, there could be significant shifts in climatic conditions throughout the planet.  One major source of carbon dioxide is the burning of fossil fuel, both for energy production and transportation.

SUMMARY:

BILL AS AMENDED:  The Legislature declares that the risks of global warming through the production of carbon dioxide endangers the state's economy and quality of life.  The Legislature also recognizes that all sources of energy have environmental impacts.

The Washington State Energy Office is directed to include in its biennial energy report due in December, 1990, an initial report on the environmental impacts of energy use, an evaluation of energy resources and their availability and costs in financial and environmental terms, and recommendations for methods to include environmental costs in least cost planning.  The energy office will submit its complete report by December 1, 1991.

An applicant for a new thermal plant under the jurisdiction of the Energy Facility Site Evaluation Council (EFSEC) must submit a plan to minimize the production of greenhouse gases to the extent that it is economically and technologically possible.  EFSEC is directed to consider whether the plan is satisfactory.  EFSEC is also directed to evaluate new facilities for compliance with least cost planning.  EFSEC will consider environmental costs as well as other costs in making this determination.  The study conducted by the energy office and studies completed by the Northwest Power Planning Council will be used by EFSEC in making this evaluation.

AMENDED BILL COMPARED TO ORIGINAL:  The amendment modifies the intent section to include recognition of environmental costs in addition to greenhouse gases.  The amendment adds the state energy office study and the direction to EFSEC to consider least cost resources that include the environmental costs.  The amendment requires proponents of new thermal plants to minimize, rather than mitigate, carbon dioxide emissions and conditions those efforts on cost and practicability.  The amendment deletes a requirement that EFSEC deny an application if a satisfactory plan for carbon dioxide reduction is not submitted.

Fiscal Note:      Requested February 23, 1990.

House Committee ‑ Testified For:    Senator Benitz, prime sponsor.

House Committee - Testified Against:      (Original Senate Bill) Ron Newbry, Puget Sound Power & Light; and Tom Paine, Washington Water Power.

House Committee - Testimony For:    The greenhouse effect is an issue that we must prepare for. Carbon dioxide from power plants is a significant contributor to this potential problem.  This bill will assure that efforts are made to minimize further contributions to the problem.

House Committee - Testimony Against:      (Original Senate Bill) The bill makes it almost impossible for a proponent of a thermal plant that might generate carbon dioxide to comply with the requirements of the legislation.  The bill also fails to establish any standards for EFSEC to use to determine whether a satisfactory plan has been submitted.