H-0279.1

HOUSE BILL 1125

ByRepresentatives Shewmake, Fitzgibbon, Ryu, Leavitt, Valdez, Fey, Macri, and Pollet

AN ACT Relating to incentivizing investment in energy conservation and efficiency measures and expanding opportunities for energy rate discounts to, among other objectives, reduce the energy burden of low-income customers and vulnerable populations; amending RCW 80.28.068; and adding a new section to chapter 80.28 RCW.

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

NEW SECTION.  Sec. 1. A new section is added to chapter 80.28 RCW to read as follows:

(1)(a) Electrical and natural gas companies maintain programs offering incentives for single-family and multifamily housing owners to have conservation and energy efficiency measures financed and installed at their premises. The owners of single-family and multifamily rental housing may be reluctant to participate in such programs when they are required to financially supplement the company's incentive to fully fund cost-effective conservation and energy efficiency measures. By not participating in an electrical or natural gas company's programs, single-family and multifamily rental housing owners expose tenants to higher energy bills and deny electrical and natural gas companies from being able to achieve greater reductions in energy consumption.

(b) It is the intent of this section to: Incentivize and enable electrical and natural gas companies to access conservation and energy efficiency opportunities in single-family and multifamily rental housing in a manner that reduces the energy burden of customers, especially low-income customers, vulnerable populations, and customers in highly impacted communities; benefit the premises owner by enhancing the value of their property; and treat capital investments in conservation and energy efficiency comparably to capital investment in generation resources.

(2) The commission shall allow an electrical and natural gas company to invest in programs that achieve energy conservation and improve the efficiency of energy end use of single-family and multifamily rental housing in lieu of requiring a contribution from the premises owner to finance measures that would be cost-effective in the aggregate. The commission shall allow the company to earn a return on cost-effective investments made under this section over a duration of time that reduces the customer's energy burden and minimizes the investment's impact on the customer's bill, while providing a return on equity that incentivizes the company to make such an investment.

(3) The electrical or natural gas company shall prioritize investments made under this section on single-family and multifamily rental housing to reduce the energy burden of low-income customers, vulnerable populations, and customers in highly impacted communities while meeting the customer's comfort and productivity needs.

(4) Investments made under this section must be secured through the meter and recovered through the regular billing paid by the tenant, including any successor tenant, or owner of the premises. If the bill is paid by the premises' owner, the company's investment must be recovered pursuant to a site-specific services agreement. The investment must be recovered as any other energy charge, including being subject to collection, until the authorized return on the investment has been fully recovered. An investment made under this section must be designated as an "energy savings charge" as a line-item on the regular customer billing.

(5) The electrical or natural gas company shall provide the premises owner sufficient information for the owner to provide a tenant who is responsible for paying the electric or gas bill as required under this subsection. At least 30 days prior to the commencement of work to install conservation measures at the premises, the premises owner shall notify a tenant of the owner's authorization for an electrical or gas company to install conservation measures at the premises inhabited by the tenant under a financial arrangement provided under this section. The notice must include a description of the work to be performed and the expected benefits of the conservation measures.

(6) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise.

(a) "Cost effective" has the same meaning as defined in RCW 80.52.030.

(b) "Energy burden" has the same meaning as defined in RCW 19.405.020.

(c) "Highly impacted communities" has the same meaning as defined in RCW 19.405.020.

(d) "Low-income" has the same meaning as defined in RCW 19.405.020.

(e) "Vulnerable populations" has the same meaning as defined in RCW 19.405.020.

Sec. 2. RCW 80.28.068 and 2009 c 32 s 1 are each amended to read as follows:

(1) Upon request by an electrical or gas company, or other party to a general rate case ((hearing))proceeding, the commission may approve rates, charges, services, and/or physical facilities at a discount for low-income senior customers and low-income customers. Expenses and lost revenues as a result of these discounts shall be included in the company's cost of service and recovered in rates to other customers.

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