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ENGROSSED
SUBSTITUTE HOUSE BILL 1326
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AS
AMENDED BY THE SENATE
Passed
Legislature - 1993 Regular Session
State of Washington 53rd
Legislature 1993 Regular Session
By
Read
first time 02/22/93.
Relating to conservation tariffs allowing transfer of payment
obligations to successive property owners.
AN ACT Relating to conservation tariffs
allowing transfer of payment obligations to successive property owners; adding
a new section to chapter 80.28 RCW; adding a new section to chapter 64.04 RCW;
adding a new section to chapter 48.29 RCW; and creating a new section.
BE
IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 1.
(1) The legislature finds that:
(a) The ability of utilities to acquire cost
effective conservation measures is instrumental in assuring that Washington
citizens have reasonable energy rates and that utilities have adequate energy
resources to meet future energy demands;
(b) Customers may be more willing to accept
investments in energy efficiency and conservation if real and perceived
impediments to property transactions are avoided;
(c) Potential purchasers of real property
should be notified of any utility conservation charges at the earliest point
possible in the sale.
(2) It is the intent of the legislature to
encourage utilities to develop innovative approaches designed to promote energy
efficiency and conservation that have limited rate impacts on utility
customers. It is not the intent of the legislature to restrict the authority
of the utilities and transportation commission to approve tariff schedules.
(3) It is also the intent of the legislature
that utilities which establish conservation tariffs should undertake measures
to assure that potential purchasers of property are aware of the existence of
any conservation tariffs. Measures that may be considered include, but are not
limited to:
(a) Recording a notice of a conservation tariff
payment obligation, containing a legal description, with the county property
records;
(b) Annually notifying customers who have
entered agreements of the conservation tariff obligation;
(c) Working with the real estate industry to
provide for disclosure of conservation tariff obligations in standardized
listing agreements and earnest money agreements; and
(d) Working with title insurers to provide
recorded conservation tariff obligations as an informational note to the
preliminary commitment for policy of title insurance.
NEW SECTION. Sec. 2. A
new section is added to chapter 80.28 RCW to read as follows:
(1) Upon request by an electrical or gas
company, the commission may approve a tariff schedule that contains rates or
charges for energy conservation measures, services, or payments provided to
individual property owners or customers. The tariff schedule shall require the
electrical or gas company to enter into an agreement with the property owner or
customer receiving services at the time the conservation measures, services, or
payments are initially provided. The tariff schedule may allow for the payment
of the rates or charges over a period of time and for the application of the
payment obligation to successive property owners or customers at the premises
where the conservation measures or services were installed or performed or with
respect to which the conservation payments were made.
(2) The electrical or gas company shall record
a notice of a payment obligation, containing a legal description, resulting
from an agreement under this section with the county auditor or recording
officer as provided in RCW 65.04.030.
(3) The commission may prescribe by rule other
methods by which an electrical or gas company shall notify property owners or
customers of any such payment obligation.
NEW SECTION. Sec. 3. A
new section is added to chapter 64.04 RCW to read as follows:
Prior to closing, the seller of real property
subject to a rate or charge for energy conservation measures, services, or
payments provided under a tariff approved by the utilities and transportation
commission pursuant to section 2 of this act shall disclose to the purchaser of
the real property the existence of the obligation and the possibility that the
purchaser may be responsible for the payment obligation.
NEW SECTION. Sec. 4. A
new section is added to chapter 48.29 RCW to read as follows:
The existence of notices of payment obligations
in section 2 of this act may be disclosed as an informational note to a
preliminary commitment for policy of title insurance. Neither the inclusion
nor the exclusion of any such informational note shall create any liability
against such title insurer under any preliminary commitment for title
insurance, policy or otherwise.
