BILL REQ. #:  H-1071.3 

Read first time 02/05/09.   Referred to Committee on Technology, Energy & Communications.

     AN ACT Relating to the generation of electricity in carbonless energy parks; amending RCW 80.50.300; adding a new section to chapter 82.08 RCW; adding a new section to chapter 82.12 RCW; creating a new section; and providing expiration dates.

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

NEW SECTION.  Sec. 1   The legislature intends to provide the opportunity for the restoration and redevelopment of unfinished nuclear power project sites for the purpose of creating carbonless energy parks for the generation of electricity.

Sec. 2   RCW 80.50.300 and 2000 c 243 s 1 are each amended to read as follows:
     (1) This section applies only to unfinished nuclear power projects. If a certificate holder stops construction of a nuclear energy facility before completion, terminates the project or otherwise resolves not to complete construction, never introduces or stores fuel for the energy facility on the site, and never operates the energy facility as designed to produce energy, the certificate holder may contract, establish interlocal agreements, or use other formal means to effect the transfer of site restoration responsibilities, which may include economic development activities, to any political subdivision or subdivisions of the state composed of elected officials or subsidiary of the certificate holder. The contracts, interlocal agreements, or other formal means of cooperation may include, but are not limited to provisions effecting the transfer or conveyance of interests in the site and energy facilities from the certificate holder to other political subdivisions of the state or subsidiary of the certificate holder, including costs of maintenance and security, capital improvements, and demolition and salvage of the unused energy facilities and infrastructure.
     (2) If a certificate holder transfers all or a portion of the site to a political subdivision or subdivisions of the state composed of elected officials or subsidiary of the certificate holder and located in the same county as the site, the council shall amend the site certification agreement to release those portions of the site that it finds are no longer intended for the development of an energy facility.
     Immediately upon release of all or a portion of the site pursuant to this section, all responsibilities for maintaining the public welfare for portions of the site transferred, including but not limited to health and safety, are transferred to the political subdivision or subdivisions of the state or subsidiary of the certificate holder. For sites located on federal land, all responsibilities for maintaining the public welfare for all of the site, including but not limited to health and safety, must be transferred to the political subdivision or subdivisions of the state or subsidiary of the certificate holder irrespective of whether all or a portion of the site is released.
     (3) If a certificate holder requests a modification of the site for the purpose of creating a carbonless energy park, the council must amend the site certification agreement to release those portions of the site for use as a carbonless energy park. For all or a portion of sites that have been released after January 1, 2009, the following condition applies: The department of ecology must continue any authorization under the site certification agreement for the use of water at an energy park in good standing and bearing the same date as the issuance of the site certification agreement for an amount of water up to thirty cubic feet per second as requested by, and for use by, the recipient of all or a portion of the site. The certificate holder shall assign such authorization to the recipient of such site.
     (4) The legislature finds that for all or a portion of sites that have been transferred to a political subdivision or subdivisions of the state prior to September 1, 1999, ensuring water for site restoration including economic development, completed pursuant to this section can best be accomplished by a transfer of existing surface water rights, and that such a transfer is best accomplished administratively through procedures set forth in existing statutes and rules. However, if a transfer of water rights is not possible, the department of ecology shall, within six months of the transfer of the site or portion thereof pursuant to subsection (1) of this section, create a trust water right under chapter 90.42 RCW containing between ten and twenty cubic feet per second for the benefit of the appropriate political subdivision or subdivisions of the state. The trust water right shall be used in fulfilling site restoration responsibilities, including economic development. The trust water right shall be from existing valid water rights within the basin where the site is located.
     (((4))) (5) For purposes of this section((,)):
     (a) "Political subdivision or subdivisions of the state" means a city, town, county, public utility district, port district, or joint operating agency;
     (b) "Carbonless energy park" means an unfinished site for a nuclear power project that is located east of the crest of the Cascade mountains and is partially or wholly developed to generate electricity with a production capacity of not less than 10 megawatts; and
     (c) "Subsidiary of the certificate holder" means any project, business unit, or affiliate of the legal entity that is a party to a site certification agreement authorized under chapter 80.50 RCW.

NEW SECTION.  Sec. 3   A new section is added to chapter 82.08 RCW to read as follows:
     (1) The tax levied by RCW 82.08.020 does not apply to sales of machinery and equipment that is used to generate electricity in carbonless energy parks, or to sales of, or charges made for, labor and services rendered in respect to installing such machinery and equipment, but only if the purchaser provides the seller with an exemption certificate in a form and manner prescribed by the department. The seller must retain a copy of the certificate for the seller's files.
     (2) "Carbonless energy park" is defined as provided in RCW 80.50.300.
     (3) This section expires June 30, 2015.

NEW SECTION.  Sec. 4   A new section is added to chapter 82.12 RCW to read as follows:
     (1) The provisions of this chapter do not apply with respect to machinery and equipment used to generate electricity in carbonless energy parks.
     (2) "Carbonless energy park" is defined as provided in RCW 80.50.300.
     (3) This section expires June 30, 2015.