BILL REQ. #:  H-4064.1 

Prefiled 01/08/10. Read first time 01/11/10.   Referred to Committee on Technology, Energy & Communications.

     AN ACT Relating to a system benefits charge; and adding a new chapter to Title 80 RCW.

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

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 a utility-based system benefits charge that may 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 or natural gas to one or more retail customers in the state.
     (3) "Department" means the energy policy division of the department of commerce.
     (4) "Electric utility" means an investor-owned utility or 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) "Governing body" means the board of directors, city council, or the commissioners of any consumer-owned utility.
     (6) "Investor-owned utility" means a corporation owned by investors that meets the definition of "corporation" defined in RCW 80.04.010 and is engaged in distributing electricity or natural gas to more than one retail electric customer in the state.
     (7) "Natural gas utility" means an investor-owned utility or consumer-owned utility that is authorized to and engaged in the business of distributing natural gas to one or more retail customers in the state.
     (8) "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.
     (9) "Sustainable energy resource" includes solar energy, wind, ocean thermal energy, wave or tidal energy, fuel cells, landfill gas and low emission advanced biomass conversion technologies, high-efficiency cogeneration with an efficiency level above seventy percent, and other emerging energy technologies that significantly reduce pollution from existing technologies and have significant potential for commercialization.

NEW SECTION.  Sec. 3   All electric and natural gas utilities may collect a monthly system benefits charge from all retail electricity and natural gas customers served by the utility. The purpose of the system benefits 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 system benefits charge, a consumer-owned utility must prepare and submit to its governing body a sustainable energy project 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 system benefits charge to develop each project; and the estimated time frame for collecting the system benefits charge.
     (2) Before collecting a system benefits charge, an investor-owned utility must prepare and submit to the commission a sustainable energy project 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 system benefits charge to develop each project; and the estimated time frame for collecting the system benefits charge.
     (3) Consumer-owned and investor-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)(a) Upon approval of the sustainable energy project proposal by the governing body, a consumer-owned utility may collect a system benefits charge for a time approved by the governing body.
     (b) Upon approval of the sustainable energy project proposal by the commission, an investor-owned utility may collect a system benefits charge for a time approved by the commission.
     (2) The monthly system benefits charge may be up to, and no more than, one dollar and ninety cents per customer.
     (3) Funds collected from the system benefits charge must be used by an electric or natural gas utility to develop sustainable energy resource or smart energy technology projects as approved by a governing body or the commission.
     (4) Funds collected from the system benefits charge must be deposited in a sustainable energy project account established and maintained by the utility and separate from other accounts.
     (5) Interest that accrues to the sustainable energy project account must be reinvested into the sustainable energy project account and spent on sustainable energy resource or smart energy technology projects.
     (6) No more than five percent of money collected from the system benefits charge may be used by an electric or natural gas utility for administrative purposes.
     (7)(a) Beginning November 1, 2007, each electric or natural gas consumer-owned utility whose governing body has approved the collection of a system benefits charge must submit the approved sustainable energy project proposal to the department.
     (b) The department shall utilize the information received in (a) of this subsection in the biennial energy report.

NEW SECTION.  Sec. 6   Sections 1 through 5 of this act constitute a new chapter in Title 80 RCW.