BILL REQ. #:  H-1523.1 

Read first time 02/09/2005.   Referred to Committee on Technology, Energy & Communications.

     AN ACT Relating to statewide energy efficiency; amending RCW 44.39.010 and 44.39.070; adding new sections to chapter 44.39 RCW; and adding a new section to chapter 43.19 RCW.

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

Sec. 1   RCW 44.39.010 and 2001 c 214 s 30 are each amended to read as follows:
     There is hereby created the joint committee on energy supply ((of the legislature of the state of Washington)) and energy conservation.

Sec. 2   RCW 44.39.070 and 2002 c 192 s 1 are each amended to read as follows:
     (1) The committee shall meet and function at the following times: (a) At least once per year or at anytime upon the call of the chair to receive information related to the state or regional energy supply situation; (b) during a condition of energy supply alert or energy emergency; and (c) upon the call of the chair, in response to gubernatorial action to terminate such a condition. Upon the declaration by the governor of a condition of energy supply alert or energy emergency, the committee ((on energy supply)) shall meet to receive any plans proposed by the governor for programs, controls, standards, and priorities for the production, allocation, and consumption of energy during any current or anticipated condition of energy supply alert or energy emergency, any proposed plans for the suspension or modification of existing rules of the Washington Administrative Code, and any other relevant matters the governor deems desirable. The committee shall review such plans and matters and shall transmit its recommendations to the governor for review. The committee may review any voluntary programs or local or regional programs for the production, allocation, or consumption of energy which have been submitted to the committee.
     (2) The committee shall receive any request from the governor for the approval of a declaration of a condition of energy emergency as provided in RCW 43.21G.040 as now or hereafter amended and shall either approve or disapprove such request.
     (3) During a condition of energy supply alert, the committee shall: (a) Receive any request from the governor for an extension of the condition of energy supply alert for an additional period of time not to exceed ninety consecutive days and the findings upon which such request is based; (b) receive any request from the governor for subsequent extensions of the condition of energy supply alert for an additional period of time not to exceed one hundred twenty consecutive days and the findings upon which such a request is based; and (c) either approve or disapprove the requested extensions. When approving a request, the committee may specify a longer period than requested, up to ninety days for initial extensions and one hundred twenty days for additional extensions.
     (4) During a condition of energy emergency the committee shall: (a) Receive any request from the governor for an extension of the condition of energy emergency for an additional period of time not to exceed forty-five consecutive days and the finding upon which any such request is based; (b) receive any request from the governor for subsequent extensions of the condition of energy emergency for an additional period of time not to exceed sixty consecutive days and the findings upon which such a request is based; and (c) either approve or disapprove the requested extensions. When approving a request, the committee may specify a longer period than requested, up to forty-five days for initial extensions and sixty days for additional extensions.

NEW SECTION.  Sec. 3   A new section is added to chapter 44.39 RCW to read as follows:
     It is the intent of the legislature to utilize lessons learned from efforts to conserve energy usage in single state buildings or complexes and extend conservation measures across all levels of government. Implementing conservation measures across all levels of government will create actual energy conservation savings, maintenance and cost savings to state and local governments, and savings to the state economy, which depends on affordable, realizable electricity to retain jobs. The legislature intends that conservation measures be implemented across all levels of government and that the savings created from implementing conservation measures be retained to produce more efficient government operation.

NEW SECTION.  Sec. 4   A new section is added to chapter 44.39 RCW to read as follows:
     The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
     (1) "Committee" means the joint committee on energy supply and energy conservation.
     (2) "Conservation" means reduced energy consumption or energy cost, or increased efficiency in the use of energy, and activities, measures, or equipment designed to achieve such results.
     (3) "Consumer-owned utility" includes a municipal electric utility formed under Title 35 RCW, a public utility district formed under Title 54 RCW, an irrigation district formed under chapter 87.03 RCW, a cooperative formed under chapter 23.86 RCW, a mutual corporation or association formed under chapter 24.06 RCW, a port district formed under Title 53 RCW, or a water-sewer district formed under Title 57 RCW, that is engaged in the business of distributing electricity to one or more retail electric customers in the state.
     (4) "Department" means the department of general administration.
     (5) "Electric utility" means an investor-owned or a consumer-owned utility.
     (6) "Energy audit" has the meaning provided in RCW 43.19.670.
     (7) "Investor-owned utility" means a corporation owned by investors that meets the definition in RCW 80.04.010 and is engaged in distributing electricity to more than one retail electric customer in the state.

NEW SECTION.  Sec. 5   A new section is added to chapter 44.39 RCW to read as follows:
     (1) In addition to the committee's existing duties under RCW 44.39.070, the committee shall identify conservation measures to be implemented by all levels of state and local government using performance bonding and contract financing to generate energy conservation.
     (2) To carry out the purposes of this section, the committee shall:
     (a) Review information acquired through mandatory energy audits under chapter 43.19 RCW or direct the department to conduct separate energy audits of state and local-owned facilities;
     (b) Direct the department to solicit requests for proposals to identify conservation measures that may be implemented by all levels of state and local government across a single electric utility's service territory;
     (c) Require the participation of local governments in implementing conservation measures within a single electric utility's service territory or otherwise acquire, in the manner provided by chapter 8.04 RCW for condemnation of property for public use, such lands, real estate and other property, and interests therein as they may deem necessary for the aggregation of conservation projects within a single electric utility's service territory;
     (d) Request the department to report to the committee on contracts to implement conservation measures, including responses to requests for proposals, costs, and proposed contractors to carry out conservation measures identified by the committee;
     (e) Approve contractors selected by the department to carry out conservation projects identified by the committee;
     (f) Request the department to report to the committee on the progress of projects in a single electric utility's service territory; and
     (g) Request electric utilities to identify, once the conservation measures identified by the committee are completed, the avoided cost between cost of generation before implementation of the conservation measures and cost of generation after implementation of the conservation measures and reflect those avoided cost savings in the rate class that represents the electric utility's largest volume users.

NEW SECTION.  Sec. 6   A new section is added to chapter 43.19 RCW to read as follows:
     (1) Financing for conservation measures identified by the joint committee on energy supply and energy conservation under section 5 of this act shall be carried out with bonds issued by the Washington economic development finance authority under chapter 43.163 RCW.
     (2) To administer the financing for conservation measures identified by the joint committee on energy supply and energy conservation under section 5 of this act, the department of general administration may:
     (a) Provide technical assistance to contractors to obtain bonds issued by the Washington economic development finance authority to finance the cost of conservation measures identified by the committee; and
     (b) Identify an amount equal to the difference between the cost of energy consumed by state and local governments before conservation measures are implemented and the cost of energy consumed by state and local governments after conservation measures are implemented.