| Washington State House of Representatives Office of Program Research |
BILL ANALYSIS |
| Technology, Energy & Communications Committee | |
SSB 5481
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: Including conservation measures in performance-based contracting.
Sponsors: Senate Committee on Water, Energy & Telecommunications (originally sponsored by Senators Oemig, Delvin, Rockefeller, Fraser and Regala).
Brief Summary of Substitute Bill |
|
Hearing Date: 3/16/07
Staff: Kara Durbin (786-7133).
Background:
Energy Conservation
State agencies and schools districts are required to: 1) conduct preliminary energy surveys and
audits of their buildings; and 2) implement cost-effective conservation improvements in order to
minimize energy consumption and related environmental impacts, as well as reduce operating
costs. The Department of General Administration (Department) tracks and reports the
installation of any energy conservation measures that result from the surveys or audits.
Municipalities are authorized, but not required, to conduct energy audits and implement cost-effective energy conservation measures.
Performance-based Contracting
The Department, a state or regional university acting independently, and any other state agency
acting through the Department may use performance-based contracting to acquire energy
equipment or services. Performance-based contracting refers to contracts for which payment is
conditioned on achievement of contractually specified energy savings. This process involves
hiring a company to: 1) conduct an energy audit; 2) guarantee a certain level of savings from
energy efficiency; 3) provide financing for the energy efficiency improvements; and 4) install or
implement the energy efficiency improvements. Performance-based contracting is the preferred
method for completing energy audits and implementing cost-effective conservation measures.
Municipalities may also use performance-based contracting to acquire energy equipment and
services. The Department maintains a registry of energy service contractors and provides
assistance to municipalities in identifying available performance-based contracting services.
Summary of Bill:
The provisions concerning energy saving performance contracting are amended to allow for
measures to conserve water, and to reduce wastewater or solid waste.
The definition of "energy equipment and services" is amended in chapter 39.35A RCW to
include reductions in the use or cost of water, wastewater, or solid waste. The definition of a
"performance-based contract" is also amended to include contracts for water conservation
services or solid waste reduction services.
The definition of "conservation" is amended in chapter 39.35C RCW to include reductions in the
use or cost of water, wastewater, or solid waste. The definition of "energy audit" is also
amended to allow the audit to include a determination of the water or solid waste consumption
characteristics of a facility.
Appropriation: None.
Fiscal Note: Not requested.
Effective Date: The bill takes effect 90 days after adjournment of session in which bill is passed.