Subject of Possible Rule Making: This rule making proposes to adopt rules to facilitate the implementation of chapter 19.285 RCW, the Energy Independence Act, which codifies the November 2006 passage of voter initiative 937. The statute directs the department of community, trade and economic development (CTED) to adopt rules that apply to qualifying electric utilities that are not investor-owned. The rules will address the process, timelines and documentation needed to ensure the proper implementation of chapter 19.285 RCW. The rules will include, but are not limited to, rules associated with a qualifying utility's development of conservation targets; a qualifying utility's decision to pursue alternative compliance; and the format and content of reports required in this statute.

     Statutes Authorizing the Agency to Adopt Rules on this Subject: RCW 19.285.080(2).

     Reasons Why Rules on this Subject may be Needed and What They Might Accomplish: RCW 19.285.080(2) requires the department to adopt rules to ensure the proper implementation of this chapter. The rules will provide additional clarity beyond that contained in the initiative to guide the utilities in their implementation of the statute, and to assist the Washington state auditor's office and independent third-party auditors with their compliance audits and the Washington attorney general's office with its enforcement role.

     Other Federal and State Agencies that Regulate this Subject and the Process Coordinating the Rule with These Agencies: CTED will coordinate with representatives from the Washington state auditor's office, the Washington state attorney general's office, the utilities and transportation commission, and the Bonneville Power Administration. CTED will keep these agencies informed of the rule-making process and each organization may send representatives to serve on stakeholder groups assisting with the rule-making development. The statute indicates the state auditor will determine compliance with the statute for qualifying municipal and public utility district utilities, private third-party auditors will determine compliance for cooperatively-owned utilities and that the attorney general's office is responsible for enforcement of the statute. The utilities and transportation commission is responsible for regulating the investor-owned qualifying utilities and rules relating to the commission's authority are not covered by this CR-101.

     Process for Developing New Rule: The department will propose rule language and seek stakeholder input through meetings and correspondence. Proposed rule-making language will be made available to stakeholders on our participation lists and will be posted to the department's web site, as listed below. At least one public hearing will be held.

     Interested parties can participate in the decision to adopt the new rule and formulation of the proposed rule before publication. CTED will e-mail information and notice of working group meetings and public hearings in this matter to persons on the CTED I-937 rule-making list. To be added to this list, interested persons should send a request, with their contact information including name, e-mail address, phone number, any relevant organization affiliation, and mailing address, to carolees@cted.wa.gov or call (360) 725-3118 or fax to (360) 586-0049. For rule-making background or current documents, meeting dates and locations go to http://www.cted.wa.gov/site/1001/default.aspx. For specific information about this rule making contact Elizabeth Klumpp, CTED Energy Policy, P.O. Box 43173, Olympia, WA 98504, phone (360) 725-3113, e-mail elizabethk@cted.wa.gov.

January 24, 2007

Marie Sullivan

Director, Government Relations

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