| Washington State House of Representatives Office of Program Research |
BILL ANALYSIS |
| Technology, Energy & Communications Committee | |
HB 1036
This analysis was prepared by non-partisan legislative staff for the use of legislative members in
their deliberations. This analysis is not a part of the legislation nor does it constitute a
statement of legislative intent.
Brief Description: Regarding the purchase of renewable energy by public entities.
Sponsors: Representatives Morris, Hudgins, Morrell, Linville, B. Sullivan and Goodman.
Brief Summary of Bill |
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Hearing Date: 1/17/07
Staff: Kara Durbin (786-7133).
Background:
Electricity in Washington
Most of the electricity generated in Washington comes from hydroelectric projects. According
to the state's 2004 aggregate utility fuel mix report, hydroelectric power accounts for 66 percent
of electricity sold; coal represents 18 percent; natural gas supplies 9 percent; and nuclear power
supplies 5.6 percent. Non-hydro renewable sources such as wind, solar, landfill gas, and
biomass represent 1.52 percent.
Green Power Programs:
Beginning January 1, 2002, all electric utilities (except for small electric utilities) had to offer
their customers the option to purchase electricity generated using alternative energy resources.
This was a voluntary approach to encourage the use and development of electricity generation
through a mix of renewable resources. The Department of Community, Trade, and Economic
Development (CTED) and the Utilities and Transportation Commission (UTC) must report
annually on the products offered to customers, customer participation, and the investments made
by each utility in qualifying alternative energy resources.
According to the 2006 green power report submitted by CTED and the UTC, customers
purchased 23.9 average megawatts of green power through voluntary green power programs
between January and September of 2006. This represents a 67 percent increase over 2005 green
power sales. In terms of customer participation, the green power program has seen a 9 percent
increase in customer participation since 2005.
Summary of Bill:
State agencies that are served by a public or private utility are required to purchase 20 percent of
their total electricity in the form of qualified alternative energy resources from their local electric
utility.
In purchasing qualified alternative energy resources from their local electric utility, a state
agencies shall pay a rate no less than the retail price of a qualified alternative energy product that
their local electric utility charges its customers under its green power program, established under
RCW 19.29A.090.
State agencies are not required to purchase qualified alternative energy resources from their local
electric utility if the utility is exempt from offering a qualified alternative energy product.
A qualified alternative energy resource is defined as electricity produced from generation
facilities fueled by any of the following sources: wind; solar energy; geothermal energy; biogas
produced during treatment of human or animal waste or evolved from landfills; wave or tidal
action; gas produced during the treatment of wastewater; qualified hydropower; combined heat
and power or cogeneration; or biomass energy.
Appropriation: None.
Fiscal Note: Requested on January 16, 2007.
Effective Date: The bill takes effect 90 days after adjournment of session in which bill is passed.