AN ACT Relating to obtaining additional electricity supplies through conservation and generation; amending RCW 80.04.250; adding a new section to chapter 80.04 RCW; adding a new section to chapter 19.27A RCW; and creating a new section.

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

NEW SECTION. Sec. 1. The legislature finds that the state is facing an electricity shortage as growth occurs and that inadequate supplies of electricity will cause harmful impacts on the entire range of state citizens. The legislature further finds that the Northwest power planning council has published several recommendations for increasing supplies of electricity including changes in law that empower utility commissions with more flexibility so as to avoid sudden increases in electricity rates and an update of commercial energy codes.

Sec. 2. RCW 80.04.250 and 1961 c 14 s 80.04.250 are each amended to read as follows:

The commission shall have power upon complaint or upon its own motion to ascertain and determine the fair value for rate making purposes of the property of any public service company used and useful for service in this state and shall exercise such power whenever it shall deem such valuation or determination necessary or proper under any of the provisions of this title. In determining what property is used and useful for service, the commission may include the reasonable costs of construction work in progress for major projects that are part of the company's least cost plan.

The commission shall have the power to make revaluations of the property of any public service company from time to time.

The commission shall, before any hearing is had, notify the complainants and the public service company concerned of the time and place of such hearing by giving at least thirty days' written notice thereof, specifying that at the time and place designated a hearing will be held for the purpose of ascertaining the value of the company's property, used and useful as aforesaid, which notice shall be sufficient to authorize the commission to inquire into and pass upon the matters designated in this section.

NEW SECTION. Sec. 3. A new section is added to chapter 80.04 RCW to read as follows:

In setting appropriate rates of return, the commission shall consider the expenses associated with research, development, and demonstration activities of both conservation and generating resources to the extent that such expenses have been included in the utility's least cost plan.

NEW SECTION. Sec. 4. A new section is added to chapter 19.27A RCW to read as follows:

(1) The minimum state energy code for new nonresidential buildings shall be the Washington state energy code, 1986 edition, as amended. The state building code council may, by rule adopted pursuant to chapter 34.05 RCW, amend that code's requirements for new nonresidential buildings provided that:

(a) Such amendments increase the energy efficiency of typical newly constructed nonresidential buildings; and

(b) Any new measures, standards, or requirements adopted must be technically feasible, commercially available, and cost-effective to building owners and tenants.

(2) In considering amendments to the state energy code for nonresidential buildings, the state building code council shall establish and consult with a technical advisory committee including representatives of appropriate state agencies, local governments, general contractors, building owners and managers, design professionals, utilities, and other interested and affected parties. (3) Decisions to amend the Washington state energy code for new nonresidential buildings shall be made prior to December 15th of any year and shall not take effect until approved by the legislature. Substantial amendments to the code shall be adopted no more frequently than every three years.

NEW SECTION. Sec. 5. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.