BILL REQ. #:  S-1056.1 

Read first time 02/10/2003.   Referred to Committee on Natural Resources, Energy & Water.

     AN ACT Relating to state government as a leader in clean energy consumption; amending RCW 43.19.570, 43.21F.015, and 43.21F.045; reenacting and amending RCW 43.19.1905; adding new sections to chapter 43.21F RCW; adding a new section to chapter 43.19 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) Energy production and consumption account for the vast majority of human-caused greenhouse gas emissions;
     (b) As a significant consumer of energy resources and a committed steward of public health and environmental quality, Washington state government is well-positioned to be a leader in promoting and using clean energy;
     (c) State government actions to promote and use clean energy are consistent with the state's environmental commitments, including addressing the increasingly imminent dangers to Washington's qualities of life that are threatened by global climate changes and improving local and regional air quality;
     (d) State government actions to promote and use clean energy are also consistent with the state's high priority policy objectives to maintain competitive energy costs and a reliable and secure supply of energy resources; and
     (e) State government actions to promote and use clean energy are also consistent with the state's goals to support economic development opportunities, by reducing traffic congestion and stimulating new and emerging energy technologies within the clean energy industry of the state's high-technology sector.
     (2) The legislature intends state government to adopt a strategy to meet its energy needs with no net increase in greenhouse gas emissions. The legislature further intends the state to take immediate, short-term steps to limit the emissions attributable to its electricity consumption while developing a long-term, cost-effective strategy to reach the goal of no net increase in greenhouse gas emissions.

NEW SECTION.  Sec. 2   A new section is added to chapter 43.21F RCW to read as follows:
     The definitions in this section apply throughout RCW 43.21F.015, 43.21F.045, and sections 7 and 8 of this act, unless the context clearly requires otherwise.
     (1) "Energy conservation measures" has the same meaning as defined in RCW 43.19.670(3) (a) through (j) and (l).
     (2) "Greenhouse gases" includes carbon dioxide (CO2), methane and natural gas (CH4), and nitrous oxide (N2O).
     (3) "Net increase in greenhouse gas emissions" means a quantity of emissions in excess of the level of emissions attributable to the annual consumption of energy by state government in the year 2000.
     (4) "Qualified alternative energy resources" has the same meaning as defined in RCW 19.29A.090.
     (5) "State" and "state government" mean the executive branch agencies of the state of Washington that are managed by governor-appointed executives and state institutions of higher education.

Sec. 3   RCW 43.19.1905 and 2002 c 299 s 5 and 2002 c 285 s 1 are each reenacted and amended to read as follows:
     The director of general administration shall establish overall state policy for compliance by all state agencies, including educational institutions, regarding the following purchasing and material control functions:
     (1) Development of a state commodity coding system, including common stock numbers for items maintained in stores for reissue;
     (2) Determination where consolidations, closures, or additions of stores operated by state agencies and educational institutions should be initiated;
     (3) Institution of standard criteria for determination of when and where an item in the state supply system should be stocked;
     (4) Establishment of stock levels to be maintained in state stores, and formulation of standards for replenishment of stock;
     (5) Formulation of an overall distribution and redistribution system for stock items which establishes sources of supply support for all agencies, including interagency supply support;
     (6) Determination of what function data processing equipment, including remote terminals, shall perform in statewide purchasing and material control for improvement of service and promotion of economy;
     (7) Standardization of records and forms used statewide for supply system activities involving purchasing, receiving, inspecting, storing, requisitioning, and issuing functions, including a standard notification form for state agencies to report cost-effective direct purchases, which shall at least identify the price of the goods as available through the division of purchasing, the price of the goods as available from the alternative source, the total savings, and the signature of the notifying agency's director or the director's designee;
     (8) Screening of supplies, material, and equipment excess to the requirements of one agency for overall state need before sale as surplus;
     (9) Establishment of warehouse operation and storage standards to achieve uniform, effective, and economical stores operations;
     (10) Establishment of time limit standards for the issuing of material in store and for processing requisitions requiring purchase;
     (11) Formulation of criteria for determining when centralized rather than decentralized purchasing shall be used to obtain maximum benefit of volume buying of identical or similar items, including procurement from federal supply sources;
     (12) Development of criteria for use of leased, rather than state owned, warehouse space based on relative cost and accessibility;
     (13) Institution of standard criteria for purchase and placement of state furnished materials, carpeting, furniture, fixtures, and nonfixed equipment, in newly constructed or renovated state buildings;
     (14) Determination of how transportation costs incurred by the state for materials, supplies, services, and equipment can be reduced by improved freight and traffic coordination and control;
     (15) Establishment of a formal certification program for state employees who are authorized to perform purchasing functions as agents for the state under the provisions of chapter 43.19 RCW;
     (16) Development of performance measures for the reduction of total overall expense for material, supplies, equipment, and services used each biennium by the state;
     (17) Establishment of a standard system for all state organizations to record and report dollar savings and cost avoidance which are attributable to the establishment and implementation of improved purchasing and material control procedures;
     (18) Development of procedures for mutual and voluntary cooperation between state agencies, including educational institutions, and political subdivisions for exchange of purchasing and material control services;
     (19) Resolution of all other purchasing and material matters which require the establishment of overall statewide policy for effective and economical supply management;
     (20) Development of guidelines and criteria for the purchase of vehicles, high gas mileage vehicles, low emission vehicles, alternate vehicle fuels and systems, equipment, and materials that reduce overall energy-related costs and energy use by the state, including investigations into all opportunities to aggregate the purchasing of clean technologies by state and local governments, and including the requirement that new passenger vehicles purchased by the state meet or exceed the minimum standards for passenger automobile fuel economy established by the United States secretary of transportation pursuant to the energy policy and conservation act (15 U.S.C. Sec. 2002);
     (21) Development of guidelines and criteria for the purchase of qualified alternative energy resources as defined in RCW 19.29A.090, including investigations into opportunities to aggregate purchases for facilities that are owned or leased by state agencies and educational institutions and that are located within a serving utility's service area. Nothing in this subsection shall be construed as prohibiting any state agency or educational institution from purchasing aggregated billing services;
     (22) Development of goals for state use of recycled or environmentally preferable products through specifications for products and services, processes for requests for proposals and requests for qualifications, contractor selection, and contract negotiations.

Sec. 4   RCW 43.19.570 and 2002 c 285 s 2 are each amended to read as follows:
     (1) The department shall direct and be responsible for the acquisition, operation, maintenance, storage, repair, and replacement of state motor vehicles under its control. The department shall utilize state facilities available for the maintenance, repair, and storage of such motor vehicles, and may provide directly or by contract for the maintenance, repair, and servicing of all motor vehicles, and other property related thereto and under its control.
     (2) The department may arrange, by agreement with agencies, for the utilization by one of the storage, repair, or maintenance facilities of another, with such provision for charges and credits as may be agreed upon. The department may acquire and maintain storage, repair, and maintenance facilities for the motor vehicles under its control from such funds as may be appropriated by the legislature.
     (3)(a) The legislature finds that a clean environment is important and that global warming effects may be offset by decreasing the emissions of harmful compounds from motor vehicles. The legislature further finds that the state is in a position to set an example of large scale use of high gas mileage vehicles, lower emission vehicles, alternative vehicle fuels in motor vehicles, and other clean technologies.
     (b) The department shall consider the use of state vehicles to conduct field tests on alternative fuels in areas where air pollution constraints may be eased by these optional fuels. These fuels should include but are not limited to gas-powered and electric-powered vehicles.
     (c) ((For)) The department and other state agencies shall, before completing planned purchases of high gas mileage vehicles, lower emission vehicles, and vehicles using alternative fuels, ((the department and other state agencies shall)) explore opportunities to purchase these vehicles together with the federal government, agencies of other states, other Washington state agencies, local governments, or private organizations for less cost. All state agencies must investigate and determine whether or not they can make clean technologies more cost-effective by combining their purchasing power before completing a planned vehicle purchase.

Sec. 5   RCW 43.21F.015 and 1994 c 207 s 3 are each amended to read as follows:
     It is the policy of the state of Washington that:
     (1) The development and use of a diverse array of energy resources with emphasis on renewable energy resources shall be encouraged;
     (2) The supply of energy shall be sufficient to insure the health and economic welfare of its citizens;
     (3) The development and use of energy resources shall be consistent with the statutory environmental policies of the state;
     (4) Energy conservation and elimination of wasteful and uneconomic uses of energy and materials shall be encouraged, and this conservation should include, but is not limited to, resource recovery and materials recycling;
     (5) In energy emergency shortage situations, energy requirements to maintain the public health, safety, and welfare shall be given priority in the allocation of energy resources, and citizens and industry shall be assisted in adjusting to the limited availability of energy in order to minimize adverse impacts on their physical, social, and economic well being;
     (6) State government adopt a policy to meet its energy needs with no net increase in greenhouse gas emissions;
     (7) State government shall provide a source of impartial and objective information in order that this energy policy may be enhanced; and
     (((7))) (8) The state energy strategy shall provide primary guidance for implementation of the state's energy policy.

Sec. 6   RCW 43.21F.045 and 1996 c 186 s 103 are each amended to read as follows:
     (1) The department shall supervise and administer energy-related activities as specified in RCW 43.330.904 and shall advise the governor and the legislature with respect to energy matters affecting the state.
     (2) In addition to other powers and duties granted to the department, the department shall have the following powers and duties:
     (a) Prepare and update contingency plans for implementation in the event of energy shortages or emergencies. The plans shall conform to chapter 43.21G RCW and shall include procedures for determining when these shortages or emergencies exist, the state officers and agencies to participate in the determination, and actions to be taken by various agencies and officers of state government in order to reduce hardship and maintain the general welfare during these emergencies. The department shall coordinate the activities undertaken pursuant to this subsection with other persons. The components of plans that require legislation for their implementation shall be presented to the legislature in the form of proposed legislation at the earliest practicable date. The department shall report to the governor and the legislature on probable, imminent, and existing energy shortages, and shall administer energy allocation and curtailment programs in accordance with chapter 43.21G RCW.
     (b) Establish and maintain a central repository in state government for collection of existing data on energy resources, including:
     (i) Supply, demand, costs, utilization technology, projections, and forecasts;
     (ii) Comparative costs of alternative energy sources, uses, and applications; and
     (iii) Inventory data on energy research projects in the state conducted under public and/or private auspices, and the results thereof.
     (c) Coordinate federal energy programs appropriate for state-level implementation, carry out such energy programs as are assigned to it by the governor or the legislature, and monitor federally funded local energy programs as required by federal or state regulations.
     (d) Develop energy policy recommendations for consideration by the governor and the legislature, including but not limited to strategies and options to allow state government to meet its energy needs with no net increase in greenhouse gas emissions.
     (e) Provide assistance, space, and other support as may be necessary for the activities of the state's two representatives to the Pacific northwest electric power and conservation planning council. To the extent consistent with federal law, the director shall request that Washington's council members request the administrator of the Bonneville power administration to reimburse the state for the expenses associated with the support as provided in the Pacific Northwest Electric Power Planning and Conservation Act (P.L. 96-501).
     (f) Cooperate with state agencies, other governmental units, and private interests in the prioritization and implementation of the state energy strategy elements and on other energy matters.
     (g) Serve as the official state agency responsible for coordinating implementation of the state energy strategy.
     (h) No later than December 1, 1982, and by December 1st of each even-numbered year thereafter, prepare and transmit to the governor and the appropriate committees of the legislature a report on the implementation of the state energy strategy and other important energy issues, as appropriate.
     (i) Provide support for increasing cost-effective energy conservation, including assisting in the removal of impediments to timely implementation.
     (j) Provide support for the development of cost-effective energy resources including assisting in the removal of impediments to timely construction.
     (k) Adopt rules, under chapter 34.05 RCW, necessary to carry out the powers and duties enumerated in this chapter.
     (l) Provide administrative assistance, space, and other support as may be necessary for the activities of the energy facility site evaluation council, as provided for in RCW 80.50.030.
     (m) Appoint staff as may be needed to administer energy policy functions and manage energy facility site evaluation council activities. These employees are exempt from the provisions of chapter 41.06 RCW.
     (3) To the extent the powers and duties set out under this section relate to energy education, applied research, and technology transfer programs they are transferred to Washington State University.
     (4) To the extent the powers and duties set out under this section relate to energy efficiency in public buildings they are transferred to the department of general administration.

NEW SECTION.  Sec. 7   A new section is added to chapter 43.19 RCW to read as follows:
     (1) The department of general administration shall make all reasonable efforts to ensure that a portion of state government's electricity consumption be from qualified alternative energy resources, and energy conservation and efficiency measures implemented on or after January 1, 2002, or a combination thereof, according to the following schedule:
     (a) At least two percent by July 1, 2004;
     (b) At least four percent by July 1, 2005;
     (c) At least six percent by July 1, 2007;
     (d) At least eight percent by July 1, 2009; and
     (e) At least ten percent by July 1, 2011, and every year thereafter. Reasonable efforts include reviewing energy audits performed pursuant to this chapter and providing technical expertise and administrative assistance within available resources. For the purposes of this subsection, acquisition or use of qualified alternative energy resources is not limited to those resources offered by electric utilities under the provisions of RCW 19.29A.090 but shall be subject to the approval of the office of financial management where the cost of such acquisitions would exceed the cost of existing electrical service by more than five percent.
     (2) The department of general administration must pursue, in collaboration with the department of ecology, existing opportunities to sell, trade, or receive other fair value for any emissions reductions credits attributable to state government's shift to consumption of electricity from qualified energy resources. Nothing in this section shall be construed to require the department of general administration to create a state emissions allowance set-aside program.
     (3) The costs incurred by the department of general administration under this section shall be paid from the general administration services account and shall be subject to appropriation. Charges to state agencies shall be calculated pursuant to RCW 43.19.500.

NEW SECTION.  Sec. 8   A new section is added to chapter 43.21F RCW to read as follows:
     In preparing the biennial energy report required under RCW 43.21F.045(2)(h) to be transmitted to the governor and the legislature by December 1, 2004, the department must include the following information:
     (1) A measurement of the current and likely future greenhouse gas emissions resulting from state government's current and projected energy consumption;
     (2) Identification of specific strategies and options to reduce or offset the emissions by sufficient quantity and quality in order to compensate for the greenhouse gas emissions attributable to the state government's energy consumption. Strategies and options may include, but need not necessarily be limited to, the following:
     (a) Reducing the state's consumption of electricity through aggressive pursuit of cost-effective energy conservation and efficiency opportunities;
     (b) Increasing the proportion of electricity the state generates for its own use or purchases through an electric utility from qualified alternative energy resources;
     (c) Addressing transportation-related energy challenges such as improving the fuel efficiency of the state's vehicle fleet, using alternative fuels in the state's vehicle fleet, changing the ways state employees and contractors travel, and developing transportation substitutes for state employees and contractors; and
     (d) Options for mitigation or offsets that directly avoid, displace, or permanently sequester greenhouse gas emissions as close in time as possible to the occurrence of the actual emissions;
     (3) An analysis of the feasibility of extending the no net increase in greenhouse gas emissions standard to state agencies other than those defined in section 2(5) of this act, including but not limited to public educational institutions;
     (4) A status report on the planning and progress related to implementing section 7 of this act;
     (5) The percentage of clean-fuel vehicles purchased in 2001 through a state contract pursuant to RCW 43.19.637; and
     (6) The results of efforts by the department of general administration and other state agencies to aggregate purchasing of higher gas mileage and lower emission vehicles and qualified alternative energy resources.