AN
ACT Relating to clarifying the types of energy conservation projects a public
utility may assist its customers in financing; amending RCW 35.92.360 and
54.16.280; and creating a new section.
BE IT
ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW
SECTION. Sec. 1. The
legislature finds that energy conservation can take many useful and
cost-effective forms, and that the types of conservation projects available to
utilities and customers evolve with time as technologies are developed and
market conditions change. In some cases, electricity conservation projects are
most cost-effective when they reduce the total amount of electricity consumed
by an individual customer, and in other cases they can be cost-effective by
reducing the amount of electricity a customer needs to purchase from an
electric utility.
The
legislature intends to encourage and support a broad array of cost-effective
energy conservation by electric utilities and customers alike by clarifying
that public utilities may assist in the financing of projects that allow
customers to generate their own electricity from renewable resources that do
not depend on commercial sources of fuel thereby reducing the amount of
electricity a public utility needs to generate or acquire on their customers'
behalf.
Sec.
2. RCW
35.92.360 and 1989 c 268 s 1 are each amended to read as follows:
Any
city or town engaged in the generation, sale, or distribution of energy is
hereby authorized, within limits established by the Constitution of the state
of Washington, to assist the owners of structures or equipment in financing the
acquisition and installation of materials and equipment, for compensation or
otherwise, for the conservation or more efficient use of energy in such
structures or equipment pursuant to an energy conservation plan adopted by the
city or town if the cost per unit of energy saved or produced by the use of
such materials and equipment is less than the cost per unit of energy produced
by the next least costly new energy resource which the city or town could
acquire to meet future demand. Any financing authorized under this chapter
shall only be used for conservation purposes in existing structures, and such
financing shall not be used for any purpose which results in a conversion from
one energy source to another. For the purposes of this section,
"conservation purposes in existing structures" may include projects
to allow a municipal electric utility's customers to generate all or a portion
of their own electricity through the on-site installation of a distributed
electricity generation system that uses as its fuel solar, wind, geothermal, or
hydropower, or other renewable resource that is available on-site and not from
a commercial source. Such projects shall not be considered "a conversion
from one energy source to another" which is limited to the change or
substitution of one commercial energy supplier for another commercial energy
supplier. Except where otherwise authorized, such assistance shall be
limited to:
(1)
Providing an inspection of the structure or equipment, either directly or
through one or more inspectors under contract, to determine and inform the
owner of the estimated cost of purchasing and installing conservation materials
and equipment for which financial assistance will be approved and the estimated
life cycle savings in energy costs that are likely to result from the
installation of such materials or equipment;
(2)
Providing a list of businesses who sell and install such materials and
equipment within or in close proximity to the service area of the city or town,
each of which businesses shall have requested to be included and shall have the
ability to provide the products in a workmanlike manner and to utilize such
materials in accordance with the prevailing national standards.
(3)
Arranging to have approved conservation materials and equipment installed by a
private contractor whose bid is acceptable to the owner of the residential
structure and verifying such installation; and
(4)
Arranging or providing financing for the purchase and installation of approved
conservation materials and equipment. Such materials and equipment shall be
purchased from a private business and shall be installed by a private business
or the owner.
(5)
Pay back shall be in the form of incremental additions to the utility bill,
billed either together with use charge or separately. Loans shall not exceed
one hundred twenty months in length.
Sec.
3. RCW
54.16.280 and 1989 c 268 s 2 are each amended to read as follows:
Any
district is hereby authorized, within limits established by the Constitution of
the state of Washington, to assist the owners of structures or equipment in
financing the acquisition and installation of materials and equipment, for compensation
or otherwise, for the conservation or more efficient use of energy in such
structures or equipment pursuant to an energy conservation plan adopted by the
district if the cost per unit of energy saved or produced by the use of such
materials and equipment is less than the cost per unit of energy produced by
the next least costly new energy resource which the district could acquire to
meet future demand. Any financing authorized under this chapter shall only be
used for conservation purposes in existing structures, and such financing shall
not be used for any purpose which results in a conversion from one energy
source to another. For the purposes of this section, "conservation
purposes in existing structures" may include projects to allow a district's
customers to generate all or a portion of their own electricity through the
on-site installation of a distributed electricity generation system that uses
as its fuel solar, wind, geothermal, or hydropower, or other renewable resource
that is available on-site and not from a commercial source. Such projects
shall not be considered "a conversion from one energy source to
another" which is limited to the change or substitution of one commercial
energy supplier for another commercial energy supplier. Except where
otherwise authorized, such assistance shall be limited to:
(1)
Providing an inspection of the structure or equipment, either directly or
through one or more inspectors under contract, to determine and inform the
owner of the estimated cost of purchasing and installing conservation materials
and equipment for which financial assistance will be approved and the estimated
life cycle savings in energy costs that are likely to result from the
installation of such materials or equipment;
(2)
Providing a list of businesses who sell and install such materials and
equipment within or in close proximity to the service area of the district,
each of which businesses shall have requested to be included and shall have the
ability to provide the products in a workmanlike manner and to utilize such
materials in accordance with the prevailing national standards.
(3)
Arranging to have approved conservation materials and equipment installed by a
private contractor whose bid is acceptable to the owner of the residential
structure and verifying such installation; and
(4)
Arranging or providing financing for the purchase and installation of approved
conservation materials and equipment. Such materials and equipment shall be
purchased from a private business and shall be installed by a private business
or the owner.
(5)
Pay back shall be in the form of incremental additions to the utility bill,
billed either together with use charge or separately. Loans shall not exceed
one hundred twenty months in length.
