SHB 1032 -
By Committee on Water, Energy & Telecommunications
Strike everything after the enacting clause and insert the following:
"NEW SECTION. Sec. 1 The legislature intends to promote the
development of sustainable energy resources and smart energy
technologies and to improve system reliability by establishing utility-based sustainable energy trusts that can be used to reduce the cost of
deploying sustainable energy projects and smart energy technologies in
the state.
NEW SECTION. Sec. 2 The definitions in this section apply
throughout this chapter unless the context clearly requires otherwise.
(1) "Commission" means the Washington state utilities and
transportation commission.
(2) "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 authorized to and engaged in the business of distributing
electricity to one or more retail customers in the state.
(3) "Department" means the energy policy division of the department
of community, trade, and economic development.
(4) "Electric utility" means an investor-owned utility and
consumer-owned utility that is authorized to and engaged in the
business of distributing electricity to one or more retail customers in
the state.
(5) "Investor-owned utility" means a corporation owned by investors
that meets the definition of RCW 80.04.010 and is engaged in
distributing electricity to more than one retail electric customer in
the state.
(6) "Smart energy" means the use of technology to allow electrical
networks to operate efficiently and to link small-scale sustainable
energy resources to the grid.
(7) "Sustainable energy resources" means the following: (a) An
"eligible renewable resource" as defined in RCW 19.285.030; (b) high-efficiency cogeneration with an efficiency level above seventy percent;
or (c) other emerging energy technologies that significantly reduce
pollution from existing technologies and have significant potential for
commercialization.
NEW SECTION. Sec. 3 If approved by the commission, for investor-owned utilities, or the governing board, for consumer-owned utilities,
all electric utilities may collect a monthly smart and sustainable
energy charge from all retail electricity customers served by the
utility. The purpose of the charge is to foster the growth,
development, and commercialization of sustainable energy resources of
five megawatts or less or smart energy technologies that are connected
to the distribution system of an electric utility.
NEW SECTION. Sec. 4 (1) Before collecting a smart and
sustainable energy charge, a consumer-owned utility must prepare and
submit to its governing board a sustainable energy trust proposal
consisting of the following: A list of proposed sustainable energy
resource or smart energy technology projects; a project management plan
for each proposed project containing technical milestones and
stage-gates; the cost of each project; the amount required to be
collected through a smart and sustainable energy charge to develop each
project; and the estimated time frame for collecting the charge.
(2) Consumer-owned utilities shall make available upon request the
list of proposed and approved projects and the project management plans
for each project.
NEW SECTION. Sec. 5 (1) Upon application by an investor-owned
utility, the commission may approve a sustainable energy trust proposal
and smart and sustainable energy charge if it determines after a public
hearing that the sustainable energy trust proposal is complete and in
the public interest and that collection of the charge from retail
customers is neither unduly discriminatory nor preferential.
(2) A sustainable energy trust proposal must include: A list of
the proposed sustainable energy resource or smart energy technology
projects; a project management plan for each proposed project
containing budgets, technical milestones, and performance criteria; the
cost of each project; a detailed description of how each sustainable
energy resource or smart energy technology project could ultimately
produce benefits for the investor-owned utility's customers and the
potential magnitude of such benefits; the amount required to be
collected through a smart and sustainable energy charge to develop each
project; and the estimated time frame for collecting the smart and
sustainable energy charge.
(3) In approving a sustainable energy trust proposal, the
commission shall consider such factors as: The particular
circumstances and needs of the investor-owned utility's energy supply
and delivery systems; the magnitude of the potential benefits of
proposed projects for the utility's customers; whether the potential
customer benefits are unique to the proposing utility's system; whether
the proposed projects duplicate or could be coordinated with research
and development already underway at another utility or in another
relevant context; whether the proposed project costs and budgets are
reasonable and commensurate with the potential customer benefits;
whether the utility has secured all reasonably available grants or
other funding to combine with customer funds to be generated by the
smart and sustainable energy charge; whether the utility's shareholders
are contributing funds or otherwise bearing a fair portion of the
research risk; and any other matter the commission determines is
relevant to the proposal.
(4) The commission may retain the services of one or more experts
to assist in its review of an investor-owned utility's sustainable
energy trust proposal.
(5) The commission may adopt rules as necessary to govern
applications, review, approval, and oversight of sustainable energy
trust proposals and projects.
(6) Investor-owned utilities shall make available upon request the
list of proposed and approved projects and the project management plans
and budget for each project.
NEW SECTION. Sec. 6 (1)(a) Upon approval of the sustainable
energy trust proposal by the governing board, a consumer-owned utility
may collect a smart and sustainable energy charge for a time approved
by the governing board.
(b) Upon approval of the sustainable energy trust proposal by the
commission, an investor-owned utility may collect a smart and
sustainable energy charge in an amount, for the purposes, and for a
time, approved by the commission.
(2) The monthly smart and sustainable energy charge shall be up to
and no more than one dollar and ninety cents per customer.
(3) Funds collected from the smart and sustainable energy charge
shall be used by an electric utility solely to develop sustainable
energy resource or smart energy technology projects as approved by a
governing board or the commission.
(4) Funds collected from the smart and sustainable energy charge
shall be deposited in a sustainable energy trust account established
and maintained by the utility and separate from other accounts.
(5) Interest accrued to the account must be reinvested into the
sustainable energy trust account and spent on sustainable energy
resource or smart energy technology projects.
(6) No more than five percent of funds may be used by an electric
utility for administrative purposes.
(7)(a) Beginning on November 1, 2007, each electric consumer-owned
utility whose governing board has approved the collection of a smart
and sustainable energy charge shall submit the approved sustainable
energy trust proposal to the department.
(b) The department of community, trade, and economic development
shall utilize the information received in (a) of this subsection in the
biennial energy report.
NEW SECTION. Sec. 7 Sections 1 through 6 of this act constitute
a new chapter in Title
SHB 1032 -
By Committee on Water, Energy & Telecommunications
On page 1, line 1 of the title, after "trust;" strike the remainder of the title and insert "and adding a new chapter to Title 80 RCW."
EFFECT: Removes natural gas utilities. Renames the "systems benefits charge" to "smart and sustainable energy charge." Changes the definition of "sustainable energy resources." Makes technical and procedural changes suggested by the Washington Utilities and Transportation Commission.