SENATE BILL REPORT

SB 5889

BYSenators Barr, Talmadge, Benitz, Madsen and Hansen

Authorizing entities furnishing utility services to assist their customers in water conservation.

Senate Committee on Agriculture

Senate Hearing Date(s):February 23, 1989

Majority Report:  That Substitute Senate Bill No. 5889 be substituted therefor, and the substitute do pass.

      Signed by Senators Barr, Chairman; Anderson, Vice Chairman; Bailey, Gaspard, Hansen, Madsen, Newhouse.

Senate Staff:Bob Lee (786-7404)

                  February 24, 1989

AS REPORTED BY COMMITTEE ON AGRICULTURE, FEBRUARY 23, 1989

BACKGROUND:

Public utilities which distribute electricity can administer electric energy conservation programs to reduce consumption by existing energy users.  The authority to conduct these programs is derived from a constitutional amendment and enabling legislation.

Currently, a constitutional amendment, SJR 8210, is proposed to expand the authority for public utilities which distribute water to engage in a similar water conservation program.

SUMMARY:

Contingent upon passage of a constitutional amendment, municipal and quasi-municipal corporations that are engaged in the sale and distribution of water are provided authority to establish programs that will conserve water.  Cities, public utility districts, water districts and irrigation districts may develop a program, for compensation or otherwise, to assist the owners of structures in financing the acquisition and installation of fixtures, systems and equipment which will conserve water.  Pursuant to a conservation plan, the program can be offered if the costs per unit of water saved is less than the cost of water supplied by the next least costly source.

The kinds of assistance that can be offered to owners of structures include:  (1) conducting water conservation audits; (2) providing a list of businesses that sell and install efficient fixtures, systems or equipment; (3) arranging to have approved conservation fixtures, systems and equipment installed by a private contractor; (4) arranging or providing the financing of the purchase and installation which are to be purchased and installed by private businesses or the owner.

The payback period for loans is not to exceed 120 months and would be made through additions in the utility bill.

EFFECT OF PROPOSED SUBSTITUTE:

The provision of the bill that water conserving fixtures, systems or equipment could be purchased and installed only by private business or the owner is expanded to allow the utilities to install or sell such items.

Appropriation:    none

Revenue:    none

Fiscal Note:      none requested

Effective Date:Upon passage of SJR 8210.

Senate Committee - Testified: Jim Miller, Federal Way Water and Sewer District, Western Washington Utilities Council; Joe Daniels, Washington Association of Water Districts; Tom Mortimer, Washington PUD Association; Chan Bailey, Columbia Basin Irrigation