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ENGROSSED SUBSTITUTE HOUSE BILL 2462
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State of Washington 54th Legislature 1996 Regular Session
By House Committee on Energy & Utilities (originally sponsored by Representatives Casada, Poulsen, Crouse, Hankins, Grant, Patterson and Kessler)
Read first time 01/19/96.
AN ACT Relating to regulating cooling services as thermal heating services; amending RCW 80.62.010, 80.62.020, 80.62.030, 80.62.040, 80.62.050, 80.62.060, 80.62.070, and 80.62.080; creating a new section; and repealing RCW 80.62.900.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1. RCW 80.62.010 and 1987 c 522 s 1 are each amended to read as follows:
The legislature finds
that traditional utility regulation may pose unnecessary barriers to ((using
Washington's heat sources for)) the provision of district ((heating
purposes)) thermal energy services. The legislature further finds
that regulation may be necessary to protect the interests of the public in
securing adequate ((heating)) thermal energy services ((from
these heat sources)) at reasonable cost. Therefore, it is the intent of
the legislature and the purpose of this chapter to provide a streamlined
permitting system which will encourage development and efficient utilization
and distribution of ((heat)) thermal energy services while
continuing to provide reasonable customer protections.
Sec. 2. RCW 80.62.020 and 1987 c 522 s 2 are each amended to read as follows:
Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.
(1) "Biomass energy system" means a system that provides for the production or collection of organic materials such as wood and agricultural residues and municipal solid waste that are primarily organic materials and the conversion or use of such material for the production of heat or substitute fuels through several processes including, but not limited to, burning, pyrolysis, or anaerobic digestion.
(2) "Geothermal heat" means the natural thermal energy of the earth.
(3) (("Heat"
means thermal energy.)) "Cooling service" means the
development, production, transmission, distribution, delivery, furnishment, or
sale of a chilled medium, which includes but is not limited to chilled air or
water.
(4) (("Heat
source")) "Heating service" means the development,
production, transmission, distribution, delivery, furnishment, or sale of a
heated medium deriving from a heat source that includes but is not limited
to: (a) Any integral part of a heat production or heat rejection
system of an industrial facility, cogeneration facility, or electric power
generation facility((,)); (b) a geothermal well or spring((,));
(c) a biomass energy system((,)); (d) a solar
collection facility((, and)); (e) a hydrothermal resource
or heat extraction process; (f) natural gas-fired boiler; and (g) electric
boiler.
(5) (("Heat))
"Thermal energy supplier" means any private person, company,
association, or corporation engaged or proposing to engage in developing,
producing, transmitting, distributing, delivering, furnishing, or selling to or
for the public ((heat from a heat source)) thermal energy services
for any beneficial use other than electricity generation.
(6) "Commission" means the utilities and transportation commission.
(7) "Cogeneration facility" means any machinery, equipment, structure, process, or property, or any part thereof, installed or acquired for the primary purpose of cogeneration by a person or corporation.
(8) "Cogeneration" means the sequential generation of two or more forms of energy from a common fuel or energy source.
(9) "Waste heat" means the thermal energy which otherwise would be released to the environment from an industrial process, electric generation, or other process.
(10) "Hydrothermal resource" means the thermal energy available in wastewater, sewage effluent, wells, or other water sources, natural or man-made.
(11) "Distribution" means the conveyance of thermal energy to two or more buildings through a network of pipes.
(12) "Thermal energy" means heat or cold in the form of steam, heated or chilled water, or any other heated or chilled medium.
(13) "Thermal energy services" means the provision of heating services, cooling services, or both, and includes such ancillary services as energy audits, metering, billing, maintenance, and repairs.
Sec. 3. RCW 80.62.030 and 1983 c 94 s 3 are each amended to read as follows:
Notwithstanding any
other provision of law, ((heat)) thermal energy suppliers are not
subject to the general jurisdiction of the commission, but are only subject to
the limited jurisdiction conferred to the commission by this chapter. Nothing
in this chapter prohibits existing regulated public utilities from providing ((heat
from a heat source, as defined in RCW 80.62.020)) thermal energy
services, and thereby being eligible to seek an operating permit as a ((heat))
thermal energy supplier as provided by this chapter.
Sec. 4. RCW 80.62.040 and 1983 c 94 s 4 are each amended to read as follows:
The commission shall,
within one hundred eighty days of ((July 24, 1983,)) June 1, 1996,
adopt ((regulations)) rules governing application contents,
customer ((heating)) thermal energy service contracts, review
procedures, and fees necessary in implementing this chapter. The commission
shall set the fees so that total fees collected will approximately equal the
reasonable cost of supervising and regulating ((heat)) thermal energy
suppliers.
Sec. 5. RCW 80.62.050 and 1983 c 94 s 5 are each amended to read as follows:
Upon application by a
((heat)) thermal energy supplier, the commission shall notify all
providers of ((heating)) thermal energy services within the
designated service territory of pending application, and shall issue a
nonexclusive operating permit to provide ((heating)) thermal energy
services within a designated service territory, as proposed by the applicant,
if the commission reasonably determines:
(1) The applicant is qualified and financially responsible to provide the services for which the permit is sought;
(2) The applicant's proposed system design is adequate for that purpose; and
(3) The contract to be offered to the applicant's customers substantially complies with the requirements set forth in RCW 80.62.060.
Sec. 6. RCW 80.62.060 and 1983 c 94 s 6 are each amended to read as follows:
(1) Each ((heat))
thermal energy supplier shall enter into a contract with each customer
proposed to be served pursuant to an operating permit.
(2) The terms of the contract, or any renewal, modification, termination, or expiration thereof, to be offered to each customer or class of customers, or representatives thereof, shall be subject to the approval of the commission and shall specify, but not be limited to:
(a) The period of time
during which the ((heating)) thermal energy service will be
provided;
(b) The rates or the formula for determining rates to be charged during the contract term; and
(c) The adequacy of the service provided during the contract term.
Sec. 7. RCW 80.62.070 and 1983 c 94 s 7 are each amended to read as follows:
In accordance with the
purpose of this chapter as set forth in RCW 80.62.010, commission approval of
the rates or rate formula specified in the customer ((heating)) thermal
energy service contract shall not be based upon the ((heat)) thermal
energy supplier's cost of providing services or its rate of return on
investment, but shall be based upon the reasonableness of the proposed rates in
relation to the rates charged to customers for comparable ((heating)) thermal
energy services such as electric, oil, and natural gas ((heating)) thermal
energy otherwise available in the proposed service territory. Any proposed
rate less than eighty percent of the lowest rate of the foregoing services
shall be deemed reasonable as a matter of law and shall be approved.
Sec. 8. RCW 80.62.080 and 1983 c 94 s 8 are each amended to read as follows:
The commission shall
have continuing jurisdiction to regulate ((heat)) thermal energy
suppliers as provided in this chapter to ensure compliance with the terms of
any operating permit issued in accordance with this chapter.
NEW SECTION. Sec. 9. RCW 80.62.900 and 1983 c 94 s 9 are each repealed.
NEW SECTION. Sec. 10. This act is not intended to affect contracts entered into before the effective date of this act, nor is it intended to affect fees paid with regard to supervising the contracts.
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