BILL REQ. #: H-4325.1
State of Washington | 61st Legislature | 2010 Regular Session |
Read first time 01/15/10. Referred to Committee on Technology, Energy & Communications.
AN ACT Relating to implementing energy conservation programs; amending RCW 35.92.360, 54.16.280, 36.94.460, 35.92.430, 36.01.250, and 80.28.260; adding a new section to chapter 35.92 RCW; and creating new sections.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 1 (1) The legislature finds that Washington
state has the opportunity to realize a prosperous, affordable, and
clean energy future through energy efficiency.
(2) The financing mechanism established in this act will enable
local governments to expand and improve existing energy conservation
and energy efficiency loan programs to aid the private and nonprofit
sectors in undertaking residential, commercial, and industrial energy
efficiency upgrades.
(3) The legislature finds that this financing tool will lead to
reductions in household energy bills, provide incentives for the
creation of new family-wage jobs in construction, manufacturing, and
installation of energy-saving products, encourage investments by the
utility sector in a cleaner environment, decrease the need for new
power plant construction, and increase energy security.
NEW SECTION. Sec. 2 A new section is added to chapter 35.92 RCW
to read as follows:
(1) The provision of energy conservation services under this
section is declared to be a public use and a public and municipal
purpose, which may be conducted through a public utility operated by a
municipality. Energy conservation services may be provided through an
independent enterprise fund or through an existing electric, water,
wastewater, solid waste, heating, or other utility system already
operated by the municipality. A municipality that provides energy
conservation services under this section is declared to be engaged in
the sale or distribution of energy services as those terms are used in
Article VIII, section 10 of the state Constitution, and is authorized
to operate the loan programs authorized in RCW 35.92.360 and 36.94.460,
as applicable. Municipalities providing energy conservation services
pursuant to this section shall coordinate with existing conservation
programs and services offered by the electric or natural gas energy
distribution utility or utilities serving that municipality. Prior to
implementing energy conservation services, the legislative authority of
the municipality must hold a public hearing and make a legislative
determination, based on presentations at the hearing, that the energy
conservation services proposed to be provided by the municipality will
make available additional or complementary services, target underserved
areas or populations, or otherwise add incremental value to the
preexisting programs and services provided by the electric or natural
gas energy distribution utility.
(2) For the purpose of providing to its inhabitants and property
owners services that lead to the more efficient consumption of energy
resources, from whatever source generated, a municipality may
construct, purchase, acquire, lease, add to, extend, maintain, and
operate a system or program of energy conservation services. For the
purpose of providing energy conservation services, the municipality has
the full power to operate and regulate such systems and programs; to
enter into agreements for the maintenance and operation of any
facilities, equipment, or systems, under such terms and conditions as
may be determined by the legislative authority of the municipality to
be in the municipality's interest; and other powers as may be necessary
for the provision and financing of energy conservation services.
Nothing in this section authorizes any municipality to generate,
transmit, distribute, or sell electricity. Nothing in this section may
be construed to restrain or limit the authority of any individual,
partnership, corporation, or private utility from establishing and
providing energy conservation services.
(3) The legislative authority of the municipality has full
authority to set rates or charges for energy conservation services
provided to customers of the system if the rates charged are uniform
for the same class of customer or service. In classifying customers
served or services furnished, the legislative authority may consider:
The difference in cost of services to the various customers; the
location of the various customers within the municipality; the
difference in cost of maintenance, operation, repair, and replacement
of the various parts of the system; the different character of the
services furnished various customers; the quantity and quality of the
services furnished; and any other matters that present a reasonable
difference as a ground for distinction. The legislative authority of
the municipality has the full authority to regulate and control the
energy conservation services so delivered, together with the right to
handle and sell or lease any energy conservation equipment, fixtures or
accessories of any kind, necessary and convenient for the provision of
energy conservation services.
(4) A municipality may issue general obligation or revenue bonds,
notes, warrants, or other evidences of indebtedness for the purposes of
providing all or part of the costs of providing energy conservation
services, which shall be issued and sold in accordance with chapters
39.44, 39.46, 39.50, and 39.53 RCW. Additionally, a municipality may
form a local improvement district pursuant to chapter 35.43 RCW, and
may issue assessment bonds, notes, warrants or other evidences of
indebtedness, pursuant to chapter 35.45 RCW, for purposes of financing
all or a part of the costs of energy conservation services.
(5) The authority granted in this section is in addition to any
authority granted elsewhere and does not limit the ability to provide
conservation services through an existing electric, water, wastewater,
or heating utility. The election procedures under RCW 35.92.070,
54.08.070, and chapter 80.52 RCW or other law are not applicable to the
establishment of an energy conservation services utility under this
section.
(6) The definitions in this subsection apply throughout this
section unless the context clearly requires otherwise.
(a) "Energy conservation equipment" means equipment for the
conservation or more efficient use of energy, regardless of source,
installed at or near the intended place of use. However, the equipment
may not include any individual equipment or co-owned and controlled
cluster of equipment with a generating capacity that exceeds the net
metering system electrical generating capacity threshold established in
RCW 80.60.010(10)(a). Energy conservation equipment includes, but is
not limited to, weatherizing equipment; energy-conserving lighting
systems, heating and cooling systems, and appliances; and equipment or
systems that permit owners or substantial users of property or
equipment to generate all or a portion of their own electricity through
the on-site installation of distributed electricity generation systems
that use as fuel solar, wind, geothermal, or hydropower, or other
renewable resources available on-site and not from a commercial source.
(b) "Energy conservation services" means the provision of services
to assist owners or substantial users of structures or equipment in the
acquisition, installation, and operation of energy conservation
equipment, fixtures, or improvements. Energy conservation services
include, but are not limited to, energy audit services; weatherization
services; energy conservation equipment financing, acquisition, and
installation services; and other measures to reduce energy on-site
consumption. Energy conservation services may not be considered "a
conversion from one energy source to another" that is limited to the
change or substitution of one commercial energy supplier for another
commercial energy supplier.
(c) "Municipality" means any city, town, or county.
Sec. 3 RCW 35.92.360 and 2009 c 416 s 1 are each amended to read
as follows:
(1) Any city or town engaged in the generation, sale, or
distribution of energy, or engaged in the provision of energy
conservation services under section 2 of this act, is hereby
authorized, within limits established by the Constitution of the state
of Washington, to assist the owners of structures or equipment in
financing the acquisition and installation of materials and equipment,
for compensation or otherwise, for the conservation or more efficient
use of energy in such structures or equipment pursuant to an energy
conservation plan adopted by the city or town if the cost per unit of
energy saved or produced by the use of such materials and equipment is
less than the cost per unit of energy produced by the next least costly
new energy resource which ((the city or town)) could ((acquire)) be
acquired to meet future demand. Any financing authorized under this
chapter shall only be used for conservation purposes in existing
structures, and such financing shall not be used for any purpose which
results in a conversion from one energy source to another.
(2) For the purposes of this section, "conservation purposes in
existing structures" may include projects to allow a municipal electric
or energy conservation utility's customers to generate all or a portion
of their own electricity through the on-site installation of a
distributed electricity generation system that uses as its fuel solar,
wind, geothermal, or hydropower, or other renewable resource that is
available on-site and not from a commercial source. Such projects
shall not be considered "a conversion from one energy source to
another" which is limited to the change or substitution of one
commercial energy supplier for another commercial energy supplier.
(3) Except where otherwise authorized, such assistance shall be
limited to:
(a) Providing an inspection of the structure or equipment, either
directly or through one or more inspectors under contract, to determine
and inform the owner of the estimated cost of purchasing and installing
conservation materials and equipment for which financial assistance
will be approved and the estimated life cycle savings in energy costs
that are likely to result from the installation of such materials or
equipment;
(b) Providing a list of businesses who sell and install such
materials and equipment within or in close proximity to the service
area of the city or town, each of which businesses shall have requested
to be included and shall have the ability to provide the products in a
workmanlike manner and to utilize such materials in accordance with the
prevailing national standards;
(c) Arranging to have approved conservation materials and equipment
installed by a private contractor whose bid is acceptable to the owner
of the residential structure and verifying such installation; and
(d) Arranging or providing financing for the purchase and
installation of approved conservation materials and equipment. Such
materials and equipment shall be purchased from a private business and
shall be installed by a private business or the owner.
(((2))) (4) Pay back shall be in the form of incremental additions
to the municipal utility bill, billed either together with use charge
or separately. Loans shall not exceed two hundred forty months in
length. The city or town may make assistance available in the form of
grants made under this section for energy conservation improvements to
existing structures owned or occupied by persons qualifying as poor or
infirm consistent with the state Constitution.
(5) The city or town legislative authority shall approve the
aggregate amount of such loans and the repayment terms by ordinance and
may, by ordinance, delegate to staff the approval of individual loans
consistent with loan program guidelines approved in the ordinance. The
city or town and the property owner shall enter into a loan agreement
setting forth the terms of the loan, which agreement may provide for
acceleration in the event a loan installment is delinquent. In order
to secure loans, the city or town shall have a statutory lien on the
property, not exceeding five percent of the assessed value of the
property as of the last assessment preceding the loan funding date, on
which energy conservation improvements so financed are installed or
constructed. A statutory lien shall be paramount and superior to any
other lien or encumbrance theretofore or thereafter created except a
lien for general taxes and special assessment district assessments.
Any lien for any amount in excess of five percent of the assessed value
of the property may be obtained and perfected in accordance with
applicable law. The loan shall be a lien upon property from the time
the loan agreement is executed. If the city or town legislative
authority in granting loans has acted in good faith and without fraud,
the loan shall be valid and enforceable as such and the lien thereof
upon the property shall be valid.
(6) The city or town may foreclose a lien in an action in the
superior court. All or any of the tracts subject to such a lien may be
proceeded against in a single action, and all parties appearing of
record as owning or claiming to own or having an interest in or lien
upon the tracts involved shall be impleaded in the action as parties
defendant. An action to foreclose a lien must be commenced within two
years after the date that the loan first becomes subject to
acceleration under the loan documents. Liens to secure loans may be
foreclosed in the manner provided by RCW 35.67.250 through 35.67.270.
(7) The city or town may pledge revenues from loan payments to
secure and repay general obligation or revenue bonds, notes, or other
forms of indebtedness issued by or on behalf of the city or town, which
indebtedness shall be issued in accordance with chapters 39.44, 39.46,
39.50 and 39.53 RCW. For the purpose of securing the payment of the
principal of and interest on any bonds or notes, the city or town may
create a reserve fund. The principal amount of any loan may include a
proportionate share of the costs of issuing the bonds, notes, or other
indebtedness, and may include up to an additional amount to fund a
reserve fund, consistent with RCW 39.44.140. The bonds, warrants, or
other evidences of indebtedness shall be deemed to be for capital
purposes within the meaning of the uniform system of accounts for
municipal corporations.
Sec. 4 RCW 54.16.280 and 2002 c 276 s 3 are each amended to read
as follows:
(1) Any district is hereby authorized, within limits established by
the Constitution of the state of Washington, to assist the owners of
structures or equipment in financing the acquisition and installation
of materials and equipment, for compensation or otherwise, for the
conservation or more efficient use of energy in such structures or
equipment pursuant to an energy conservation plan adopted by the
district if the cost per unit of energy saved or produced by the use of
such materials and equipment is less than the cost per unit of energy
produced by the next least costly new energy resource which the
district could acquire to meet future demand. Any financing authorized
under this chapter shall only be used for conservation purposes in
existing structures, and such financing shall not be used for any
purpose which results in a conversion from one energy source to
another.
(2) For the purposes of this section, "conservation purposes in
existing structures" may include projects to allow a district's
customers to generate all or a portion of their own electricity through
the on-site installation of a distributed electricity generation system
that uses as its fuel solar, wind, geothermal, or hydropower, or other
renewable resource that is available on-site and not from a commercial
source. Such projects shall not be considered "a conversion from one
energy source to another" which is limited to the change or
substitution of one commercial energy supplier for another commercial
energy supplier.
(3) Except where otherwise authorized, such assistance shall be
limited to:
(((1))) (a) Providing an inspection of the structure or equipment,
either directly or through one or more inspectors under contract, to
determine and inform the owner of the estimated cost of purchasing and
installing conservation materials and equipment for which financial
assistance will be approved and the estimated life cycle savings in
energy costs that are likely to result from the installation of such
materials or equipment;
(((2))) (b) Providing a list of businesses who sell and install
such materials and equipment within or in close proximity to the
service area of the district, each of which businesses shall have
requested to be included and shall have the ability to provide the
products in a workmanlike manner and to utilize such materials in
accordance with the prevailing national standards((.));
(3)
(c) Arranging to have approved conservation materials and equipment
installed by a private contractor whose bid is acceptable to the owner
of the residential structure and verifying such installation; and
(((4))) (d) Arranging or providing financing for the purchase and
installation of approved conservation materials and equipment. Such
materials and equipment shall be purchased from a private business and
shall be installed by a private business or the owner.
(((5))) (4) Pay back shall be in the form of incremental additions
to the municipal utility bill, billed either together with use charge
or separately. Loans shall not exceed ((one hundred twenty)) two
hundred forty months in length. The district may make assistance
available in the form of grants made under this section for energy
conservation improvements to existing structures owned or occupied by
persons qualifying as poor or infirm consistent with the state
Constitution.
(5) The district legislative authority shall approve the aggregate
amount of such loans and the repayment terms by ordinance and may, by
resolution, delegate the approval of individual loans consistent with
loan program guidelines approved in the resolution. The district and
the property owner shall enter into a loan agreement setting forth the
terms of the loan, which agreement may provide for acceleration in the
event a loan installment is delinquent. In order to secure loans, the
district shall have a statutory lien, not exceeding five percent of the
assessed value of the property as of the last assessment preceding the
loan funding date, on which conservation improvements so financed are
installed or constructed. A statutory lien shall be paramount and
superior to any other lien or encumbrance theretofore or thereafter
created except a lien for general taxes and special assessment district
assessments. Any lien for any amount in excess of five percent of the
assessed value of the property may be obtained and perfected in
accordance with applicable law. The loan shall be a lien upon property
from the time the first loan agreement is executed. If the district
legislative authority in granting loans has acted in good faith and
without fraud, the loan shall be valid and enforceable as such and the
lien thereof upon the property shall be valid.
(6) The district may foreclose a lien in an action in the superior
court. All or any of the tracts subject to such a lien may be
proceeded against in a single action, and all parties appearing of
record as owning or claiming to own or having an interest in or lien
upon the tracts involved shall be impleaded in the action as parties
defendant. An action to foreclose a lien must be commenced within two
years after the date of that the loan first becomes subject to
acceleration under the loan documents. Liens to secure loans may be
foreclosed in the manner provided by RCW 35.67.250 through 35.67.270.
(7) The district may pledge revenues from loan payments to secure
and repay general obligation or revenue bonds, notes, or other forms of
indebtedness issued by or on behalf of the district, which indebtedness
shall be issued in accordance with chapters 39.44, 39.46, 39.50, and
39.53 RCW. For the purpose of securing the payment of the principal of
and interest on any bonds or notes, the district may create a reserve
fund. The principal amount of any loan may include a proportionate
share of the costs of issuing the bonds, notes, or other indebtedness,
and may include up to an additional ten percent of the loan amount to
fund a reserve fund, consistent with RCW 39.44.140. The bonds,
warrants, or other evidences of indebtedness shall be deemed to be for
capital purposes within the meaning of the uniform system of accounts
for municipal corporations.
Sec. 5 RCW 36.94.460 and 1992 c 25 s 3 are each amended to read
as follows:
(1) Any county engaged in the sale or distribution of water, or in
the provision of energy conservation services under section 2 of this
act, is hereby authorized, within limits established by the
Constitution of the state of Washington, to assist the owners of
structures that are provided water or energy conservation services by
the county in financing the acquisition and installation of fixtures,
systems, and equipment, for compensation or otherwise, for the
conservation or more efficient use of water or energy in the structures
under a water or energy conservation plan adopted by the county if the
cost per unit of water saved or conserved by the use of the fixtures,
systems, and equipment is less than the cost per unit of water supplied
by the next least costly new water source available to the county to
meet future demand.
(2) Except where otherwise authorized, assistance shall be limited
to:
(((1))) (a) Providing an inspection of the structure, either
directly or through one or more inspectors under contract, to determine
and inform the owner of the estimated cost of purchasing and installing
conservation fixtures, systems, and equipment for which financial
assistance will be approved and the estimated life cycle savings to the
water system and the consumer that are likely to result from the
installation of the fixtures, systems, or equipment;
(((2))) (b) Providing a list of businesses that sell and install
the fixtures, systems, and equipment within or in close proximity to
the service area of the county, each of which businesses shall have
requested to be included and shall have the ability to provide the
products in a workmanlike manner and to utilize the fixtures, systems,
and equipment in accordance with the prevailing national standards;
(((3))) (c) Arranging to have approved conservation fixtures,
systems, and equipment installed by a private contractor whose bid is
acceptable to the owner of the structure and verifying the
installation; and
(((4))) (d) Arranging or providing financing for the purchase
((and)), leasing, or installation of approved conservation fixtures,
systems, and equipment. The fixtures, systems, and equipment shall be
((purchased or installed by)) acquired from a private business, the
owner, or the utility.
(3) Pay back shall be in the form of incremental additions to the
utility bill, billed either together with (([the])) the use charge or
separately. Loans shall not exceed ((one hundred twenty)) two hundred
forty months in length. The county may make assistance available in
the form of grants made under this section for conservation
improvements to existing structures owned or occupied by persons
qualifying as poor or infirm consistent with the state Constitution.
(4) The county legislative authority shall approve the aggregate
amount of such loans and the repayment terms by ordinance and may, by
ordinance, delegate to staff the approval of individual loans
consistent with loan program guidelines approved in the ordinance. The
county and the property owner shall enter into a loan agreement setting
forth the terms of the loan, which agreement may provide for
acceleration in the event a loan installment is delinquent. In order
to secure loans, the county shall have a statutory lien on the
property, not exceeding five percent of the assessed value of the
property as of the last assessment preceding the loan funding date, on
which conservation improvements so financed are installed or
constructed. A statutory lien shall be paramount and superior to any
other lien or encumbrance theretofore or thereafter created except a
lien for general taxes and special assessment district assessments.
Any lien for any amount in excess of five percent of the assessed value
of the property may be obtained and perfected in accordance with
applicable law. The loan shall be a lien upon property from the time
the loan agreement is executed. If the county legislative authority in
granting loans has acted in good faith and without fraud, the loan
shall be valid and enforceable as such and the lien thereof upon the
property shall be valid.
(5) The county may foreclose a lien in an action in the superior
court. All or any of the tracts subject to such a lien may be
proceeded against in a single action, and all parties appearing of
record as owning or claiming to own or having an interest in or lien
upon the tracts involved shall be impleaded in the action as parties
defendant. An action to foreclose a lien must be commenced within two
years after the date of that the loan first becomes subject to
acceleration under the loan documents. Liens to secure loans may be
foreclosed in the manner provided by RCW 35.67.250 through 35.67.270.
(6) The county may pledge revenues from loan payments to secure and
repay general obligation or revenue bonds, notes, or other forms of
indebtedness issued by or on behalf of the county, which indebtedness
shall be issued in accordance with chapters 39.44, 39.46, 39.50, and
39.53 RCW. For the purpose of securing the payment of the principal of
and interest on any bonds or notes, the county may create a reserve
fund. The principal amount of any loan may include a proportionate
share of the costs of issuing the bonds, notes, or other indebtedness,
and may include up to an additional amount to fund a reserve fund,
consistent with RCW 39.44.140. The bonds, warrants, or other evidences
of indebtedness shall be deemed to be for capital purposes within the
meaning of the uniform system of accounts for municipal corporations.
Sec. 6 RCW 35.92.430 and 2007 c 349 s 2 are each amended to read
as follows:
(1) A city or town authorized to acquire and operate utilities for
the purpose of furnishing the city or town and its inhabitants and
other persons with water, with electricity for lighting and other
purposes, or with service from sewerage, storm water, surface water, or
solid waste handling facilities, may develop and make publicly
available a plan to reduce its greenhouse ((gases)) gas emissions or
achieve no-net emissions from all sources of greenhouse gases that the
utility owns, leases, uses, contracts for, or otherwise controls.
(2) A city or town authorized to acquire and operate utilities for
the purpose of furnishing the city or town and its inhabitants and
other persons with water, with electricity for lighting and other
purposes, or with service from sewerage, storm water, surface water, or
solid waste handling facilities, may, as part of its utility operation,
mitigate the environmental impacts, such as greenhouse ((gases)) gas
emissions, of its operation, including any power purchases. The
mitigation may include, but is not limited to, those greenhouse gases
mitigation mechanisms recognized by independent, qualified
organizations with proven experience in emissions mitigation
activities. Mitigation mechanisms may include the purchase, trade, and
banking of greenhouse gases offsets or credits. If a state greenhouse
gases registry is established, a utility that has purchased, traded, or
banked greenhouse gases mitigation mechanisms under this section shall
receive credit in the registry.
(3) Without limiting subsections (1) and (2) of this section, any
city or town may develop and make publicly available a plan for the
city or town to reduce its greenhouse gas emissions, or achieve no-net
emissions, from city or town governmental activities, including the
operation of any facilities, equipment, fleet of vehicles, or other
systems that it owns, operates, leases, uses, contracts for, or
otherwise controls. In furtherance of such a plan, the city or town
may enter into a mitigation agreement with the provider of electric or
natural gas utility services within the city or town.
Sec. 7 RCW 36.01.250 and 2007 c 349 s 6 are each amended to read
as follows:
(1) Any county authorized to acquire and operate utilities or
conduct other proprietary or user or ratepayer funded activities may
develop and make publicly available a plan for the county to reduce its
greenhouse ((gases)) gas emissions or achieve no-net emissions from all
sources of greenhouse gases that such county utility or proprietary or
user or ratepayer funded activity owns, operates, leases, uses,
contracts for, or otherwise controls.
(2) Any county authorized to acquire and operate utilities or
conduct other proprietary or user or ratepayer funded activities may,
as part of such utility or activity, reduce or mitigate the
environmental impacts, such as greenhouse ((gases)) gas emissions, of
such utility and other proprietary or user or ratepayer funded
activity. The mitigation may include, but is not limited to, all
greenhouse gases mitigation mechanisms recognized by independent,
qualified organizations with proven experience in emissions mitigation
activities. Mitigation mechanisms may include the purchase, trade, and
banking of carbon offsets or credits. Ratepayer funds, fees, or other
revenue dedicated to a county utility or other proprietary or user or
ratepayer funded activity may be spent to reduce or mitigate the
environmental impacts of greenhouse gases emitted as a result of that
function. If a state greenhouse gases registry is established, the
county that has purchased, traded, or banked greenhouse gases
mitigation mechanisms under this section shall receive credit in the
registry.
(3) Without limiting subsections (1) and (2) of this section, any
county may develop and make publicly available a plan for the county to
reduce its greenhouse gas emissions, or achieve no-net emissions, from
county governmental activities, including the operation of any
facilities, equipment, fleet of vehicles, or other systems that it
owns, operates, leases, uses, contracts for, or otherwise controls. In
furtherance of such a plan, the county may enter into a mitigation
agreement with the provider of electric or natural gas utility services
within the county.
Sec. 8 RCW 80.28.260 and 1996 c 186 s 520 are each amended to
read as follows:
(1)(a) Upon application by an electrical or gas company, the
commission shall ((adopt a policy allowing an incentive rate of return
on investment (a) for payments made under RCW 19.27A.035 and (b) for
programs that improve the efficiency of energy end use if priority is
given to senior citizens and low-income citizens in the course of
carrying out such programs. The incentive rate of return on
investments set forth in this subsection is established by adding an
increment of two percent to the rate of return on common equity
permitted on the company's other investments.)) approve
rate adjustment mechanisms to: (i) Provide full and timely recovery of
all prudently incurred cost-effective expenditures for conservation;
and (ii) ensure that utilities recover authorized nonfuel revenue
requirements that would have been recovered absent conservation
savings.
(2) The commission shall consider and may adopt a policy allowing
an incentive rate of return on investment in additional programs to
improve the efficiency of energy end use or other incentive policies to
encourage utility investment in such programs.
(3) The commission shall consider and may adopt other policies to
protect a company from a reduction of short-term earnings that may be
a direct result of utility programs to increase the efficiency of
energy use. These policies may include allowing a periodic rate
adjustment for investments in end use efficiency or allowing changes in
price structure designed to produce additional new revenue
(b) No rate adjustment mechanism in (a) of this subsection applies
to any rate for: (i) Retail wheeling service, high voltage service, or
large general service greater than 3aMW; or (ii) commercial or
industrial gas service or gas transportation service greater than five
hundred thousand therms per year.
(c) Any rate adjustment in (a) of this subsection may be no more
than three percent of a utility's annual revenues in any given year.
(2) The definitions in this subsection apply throughout this
section unless the context clearly requires otherwise.
(a) "Conservation" has the same meaning as defined in RCW
19.285.030.
(b) "Conservation savings" means energy savings reviewed by the
commission. Conservation savings include savings from electrical or
gas company programs and company-sponsored programs, including rebate-based programs and education-based programs. Conservation savings also
include conservation due to changes in federal, state, or local
building energy codes and equipment standards.
(c) "Conservation target" means: (i) For electrical companies, the
biennial conservation target set by an electrical company in compliance
with RCW 19.285.040; and (ii) for gas companies, the annual natural gas
conservation goal set forth in a gas company's most recent applicable
tariff filings.
(d) "Cost-effective" has the same meaning as defined in RCW
80.52.030.
NEW SECTION. Sec. 9 This act applies prospectively only and does
not affect the validity of any loan entered into or any bonds issued
with respect to programs or services provided under RCW 35.92.360,
54.16.280, or 36.94.460 prior to the effective date of this section.