BILL REQ. #:  S-3251.1 

Read first time 01/09/12.   Referred to Committee on Energy, Natural Resources & Marine Waters.

     AN ACT Relating to transferring the duties of the energy policy division of the department of commerce to the office of the governor and Washington State University; amending RCW 42.56.270; adding a new section to chapter 43.330 RCW; adding a new section to chapter 28B.30 RCW; adding new sections to chapter 43.06 RCW; repealing RCW 43.330.904, 43.21F.010, 43.21F.025, 43.21F.045, 43.21F.055, 43.21F.060, 43.21F.062, 43.21F.088, and 43.21F.090; and prescribing penalties.

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

NEW SECTION.  Sec. 1   (1) The legislature finds that the responsibilities of state government need to be limited to core services in support of public safety and welfare. Services provided by the energy policy division of the department of commerce are primarily advisory and can be transferred to the office of the governor to achieve greater efficiency, transparency, and accountability in state government. The energy policy duties to be performed by the office of the governor build upon the functions currently fulfilled by staff in that office and must be prioritized in the following order of public importance: (a) Protect the public health, safety, and welfare during energy emergencies; (b) provide energy policy advice to the governor; (c) receive and disburse federal energy-related programmatic funding to other agencies; (d) collect and disseminate impartial and objective information and analysis to the governor and legislature; (e) revise and update the state energy strategy, as funding is appropriated by the legislature for that purpose; and (f) develop and maintain a unified state position on energy facility siting, as funding is provided for that purpose.
     (2) The duties transferred to and to be conducted by the office of the governor and the energy extension program of Washington State University must be performed with existing resources. It is the intent of sections 2 through 8 of this act to perpetually save state general funds that have historically been appropriated for the performance of the duties transferred under sections 2 through 8 of this act.

NEW SECTION.  Sec. 2   (1) In addition to the duties prescribed in this chapter, the office of the governor has the following powers and duties:
     (a) Administer energy allocation and curtailment programs in accordance with chapter 43.21G RCW. During energy shortage emergencies, the office of the governor shall give priority in the allocation of energy resources to maintaining the public health, safety, and welfare of the state's citizens and industry in order to minimize adverse impacts on their physical, social, and economic well-being;
     (b) Prepare and update contingency plans for implementation in the event of energy shortages or emergencies. The plans must conform to chapter 43.21G RCW and must include procedures for determining when these shortages or emergencies exist, the state officers and agencies to participate in the determination, and actions to be taken by various agencies and officers of state government in order to reduce hardship and maintain the general welfare during these emergencies. The office of the governor shall coordinate the activities undertaken pursuant to this subsection (1)(b) with other persons. The components of plans that require legislation for their implementation must be presented to the legislature in the form of proposed legislation at the earliest practicable date. The office of the governor shall report to the legislature on probable, imminent, and existing energy shortages; and
     (c) Obtain all necessary and existing information from energy producers, suppliers, and consumers, doing business within the state of Washington, from political subdivisions in this state, or any person as may be necessary to carry out the provisions of chapter 43.21G RCW. However, if the information is available in reports made to another state agency, the office of the governor shall obtain it from that agency. Further, to the maximum extent practicable, informational requests to energy companies regulated by the Washington state utilities and transportation commission must be channeled through the utilities and transportation commission and must be accepted in the format normally used by the companies. This information may include but not be limited to:
     (i) Sales volume;
     (ii) Forecasts of energy requirements; and
     (iii) Energy costs.
     (2) In accordance with RCW 42.56.270(22), information furnished under subsection (1)(c) of this section is confidential and must be maintained as such if so requested by the person providing the information if the information is proprietary. It is unlawful to disclose this information except as otherwise provided. A violation is punishable, upon conviction, by a fine of not more than one thousand dollars for each offense. In addition, any person who willfully or with criminal negligence, as defined in RCW 9A.08.010, discloses confidential information in violation of this subsection may be subject to removal from office or immediate dismissal from public employment. Nothing in this subsection prohibits the use of confidential information to prepare statistics or other general data for publication when it is so presented as to prevent identification of particular persons or sources of confidential information.

NEW SECTION.  Sec. 3   In addition to the duties prescribed in this chapter, the office of the governor shall:
     (1) Supervise and administer energy-related activities as specified in section 7(1) of this act and advise the governor and the legislature with respect to energy matters affecting the state.
     (2) Develop and disseminate impartial and objective energy information and analysis, while taking full advantage of the capabilities of the state's institutions of higher education, national laboratory, and other public and private entities, including energy providers, with relevant expertise and analytical capabilities.
     (3) Receive funds obtained from the federal government or other sources by means of contracts, grants, awards, payments for services, and other devices: (a) In support of the duties enumerated in this chapter; and (b) to disseminate to other agencies as appropriate to effectuate the purposes to which those funds must be used.
     (4) Provide assistance, space, and other support as may be necessary for the activities of the state's two representatives to the Pacific Northwest electric power and conservation planning council. To the extent consistent with federal law, the director of the Pacific Northwest electric power and conservation planning council shall request that Washington's council members request the administrator of the Bonneville power administration to reimburse the state for the expenses associated with the support as provided in the Pacific Northwest electric power planning and conservation act (P.L. 96-501).

NEW SECTION.  Sec. 4   (1) The legislature finds that the state needs to implement a comprehensive energy planning process that:
     (a) Is based on high quality, unbiased analysis;
     (b) Engages public agencies and stakeholders in a thoughtful, deliberative process that creates a cohesive plan that earns sustained support of the public and organizations and institutions that will ultimately be responsible for implementation and execution of the plan; and
     (c) Establishes policies and practices needed to ensure the effective implementation of the strategy.
     (2) The legislature further finds that energy drives the entire modern economy from petroleum for vehicles to electricity to light homes and power businesses. The legislature further finds that the nation and the world have started the transition to a clean energy economy, with significant improvements in energy efficiency and investments in new clean and renewable energy resources and technologies. The legislature further finds this transition may increase or decrease energy costs and efforts should be made to mitigate cost increases.
     (3) The legislature finds and declares that it is the continuing purpose of state government, consistent with other essential considerations of state policy, to foster wise and efficient energy use and to promote energy self-sufficiency through the use of indigenous and renewable energy sources, consistent with the promotion of reliable energy sources, the general welfare, and the protection of environmental quality.
     (4) The legislature further declares that a successful state energy strategy must balance three goals to:
     (a) Maintain competitive energy prices that are fair and reasonable for consumers and businesses and support our state's continued economic success;
     (b) Increase competitiveness by fostering a clean energy economy and jobs through business and workforce development; and
     (c) Meet the state's obligations to reduce greenhouse gas emissions.

NEW SECTION.  Sec. 5   (1) Subject to the availability of amounts appropriated for this specific purpose, the office of the governor shall review the state energy strategy as developed under section 1, chapter 201, Laws of 1991, periodically with the guidance of an advisory committee. For each review, an advisory committee must be established with a membership resembling as closely as possible the original energy strategy advisory committee specified under section 1, chapter 201, Laws of 1991. Upon completion of a public hearing regarding the advisory committee's advice and recommendations for revisions to the energy strategy, a written report must be conveyed by the appropriate legislative committees. Any advisory committee established under this section must be dissolved within three months after the committee's written report is conveyed.
     (2) The office of the governor shall use the following principles to guide development and implementation of the state's energy strategy and to meet the goals of section 6 of this act:
     (a) Pursue all cost-effective energy efficiency and conservation as the state's preferred energy resource, consistent with state law;
     (b) Ensure that the state's energy system meets the health, welfare, and economic needs of its citizens with particular emphasis on meeting the needs of low-income and vulnerable populations;
     (c) Maintain and enhance economic competitiveness by ensuring an affordable and reliable supply of energy resources and by supporting clean energy technology innovation, access to clean energy markets worldwide, and clean energy business and workforce development;
     (d) Reduce dependence on fossil fuel energy sources through improved efficiency and development of cleaner energy sources, such as bioenergy, low-carbon energy sources, and natural gas, and leveraging the indigenous resources of the state for the production of clean energy;
     (e) Improve efficiency of transportation energy use through advances in vehicle technology, increased system efficiencies, development of electricity, biofuels, and other clean fuels, and regional transportation planning to improve transportation choices;
     (f) Meet the state's statutory greenhouse gas limits and environmental requirements as the state develops and uses energy resources;
     (g) Build on the advantage provided by the state's clean regional electrical grid by expanding and integrating additional carbon-free and carbon-neutral generation, and improving the transmission capacity serving the state;
     (h) Make state government a model for energy efficiency, use of clean and renewable energy, and greenhouse gas-neutral operations; and
     (i) Maintain and enhance our state's existing energy infrastructure.
     (3) The office of the governor shall monitor the actions of all agencies of the state for consistent implementation of the state's energy policy, including applicable statutory policies and goals relating to energy supply and use.

NEW SECTION.  Sec. 6   (1) Subject to the provision of funds pursuant to subsection (2) of this section, the office of the governor must develop guidance applicable to all state agencies for achieving a unified state position upon matters involving the siting and operation of renewable energy facilities in the state's coastal and estuarine marine waters. The guidance must provide procedures for coordinating the views and responsibilities of any state agency with jurisdiction or expertise over the matter under consideration, which may include federal policy proposals, activities, permits, licenses, or the extension of funding for activities in or affecting the state's marine waters. In developing the guidance, the office must consult with agencies with primary responsibilities for permitting and management of marine waters and bedlands, including the departments of natural resources, ecology, transportation, and fish and wildlife, and the state parks and recreation commission, the Puget Sound partnership, and the energy facility site evaluation council. The office of the governor must also consult and incorporate relevant information from the regional activities related to renewable energy siting in marine waters, including those under the west coast governors' agreement on ocean health.
     (2) The office of the governor may not commence development of the guidance until federal, private, or other nonstate funding is secured for this activity. The office of the governor must adopt the guidance within one year of securing the funding.
     (3) This section is intended to promote consistency and multiple agency coordination in developing positions and exercising jurisdiction in matters involving the siting and operation of renewable energy facilities and does not diminish or abrogate the authority or jurisdiction of any state agency over such matters established under any other law.

NEW SECTION.  Sec. 7   A new section is added to chapter 43.330 RCW to read as follows:
     (1) All powers, duties, and functions of the department of commerce relating to energy resource policy and planning are transferred to the office of the governor. All references to the director of the department of commerce in the Revised Code of Washington shall be construed to mean the office of the governor when referring to the functions transferred in this section.
     (2)(a) All reports, documents, surveys, books, records, files, papers, or written material in the possession of the department pertaining to the powers, functions, and duties transferred shall be delivered to the custody of the office of the governor. All cabinets, furniture, office equipment, motor vehicles, and other tangible property employed by the department in carrying out the powers, functions, and duties transferred shall be made available to the department or the energy extension program of Washington State University.
     (b) All software and database property employed by the department in carrying out the powers, functions, and duties transferred shall be delivered to the custody of the office of the governor or the Washington state extension energy program, as determined to be appropriate by the office of financial management.
     (c) Whenever any question arises as to the transfer of any funds, books, documents, records, papers, files, software, database, equipment, or other tangible property used or held in the exercise of the powers and the performance of the duties and functions transferred, the director of financial management shall make a determination as to the proper allocation and certify the same to the state agencies concerned.
     (d) Any appropriations made to the department for carrying out the powers, functions, and duties transferred shall, on the effective date of this section, be transferred and credited to the office of the governor.
     (3) All rules and all pending business before the department pertaining to the powers, functions, and duties transferred shall be continued and acted upon by the office of the governor. All existing contracts and obligations shall remain in full force and shall be performed by the office of the governor.
     (4) The transfer of the powers, duties, and functions of the department does not affect the validity of any act performed before the effective date of this section.
     (5) If apportionments of budgeted funds are required because of the transfers directed by this section, the director of the office of financial management shall certify the apportionments to the agencies affected, the state auditor, and the state treasurer. Each of these shall make the appropriate transfer and adjustments in funds and appropriation.
     (6) The department shall direct the closure of the financial records of the energy policy division.

NEW SECTION.  Sec. 8   A new section is added to chapter 28B.30 RCW to read as follows:
     The Washington State University extension energy program shall:
     (1) Actively seek to maximize federal and other nonstate funding and support to the state for energy efficiency, renewable energy, emerging energy technologies, and other activities of benefit to the state's overall energy future.
     (2) Establish and maintain a central repository in state government for collection of existing data on energy resources, including:
     (a) Supply, demand, costs, utilization technology, projections, and forecasts;
     (b) Comparative costs of alternative energy sources, uses, and applications; and
     (c) Inventory data on energy research projects in the state conducted under either public auspices or private auspices, or both, and the results thereof.
     (3) Coordinate federal energy programs appropriate for state-level implementation, carry out the programs as are assigned to it by the legislature, and monitor federally funded local energy programs as required by federal or state regulations.
     (4) Not advocate energy policies before the legislature, or any state or local government agency, nor duplicate an activity performed by any other state agency and officers and other persons.

NEW SECTION.  Sec. 9   Sections 1 through 6 of this act are each added to chapter 43.06 RCW and codified with the subchapter heading of "Governor's Energy Office."

Sec. 10   RCW 42.56.270 and 2011 1st sp.s. c 14 s 15 are each amended to read as follows:
     The following financial, commercial, and proprietary information is exempt from disclosure under this chapter:
     (1) Valuable formulae, designs, drawings, computer source code or object code, and research data obtained by any agency within five years of the request for disclosure when disclosure would produce private gain and public loss;
     (2) Financial information supplied by or on behalf of a person, firm, or corporation for the purpose of qualifying to submit a bid or proposal for (a) a ferry system construction or repair contract as required by RCW 47.60.680 through 47.60.750 or (b) highway construction or improvement as required by RCW 47.28.070;
     (3) Financial and commercial information and records supplied by private persons pertaining to export services provided under chapters 43.163 and 53.31 RCW, and by persons pertaining to export projects under RCW 43.23.035;
     (4) Financial and commercial information and records supplied by businesses or individuals during application for loans or program services provided by chapters 43.325, 43.163, 43.160, 43.330, and 43.168 RCW, or during application for economic development loans or program services provided by any local agency;
     (5) Financial information, business plans, examination reports, and any information produced or obtained in evaluating or examining a business and industrial development corporation organized or seeking certification under chapter 31.24 RCW;
     (6) Financial and commercial information supplied to the state investment board by any person when the information relates to the investment of public trust or retirement funds and when disclosure would result in loss to such funds or in private loss to the providers of this information;
     (7) Financial and valuable trade information under RCW 51.36.120;
     (8) Financial, commercial, operations, and technical and research information and data submitted to or obtained by the clean Washington center in applications for, or delivery of, program services under chapter 70.95H RCW;
     (9) Financial and commercial information requested by the public stadium authority from any person or organization that leases or uses the stadium and exhibition center as defined in RCW 36.102.010;
     (10)(a) Financial information, including but not limited to account numbers and values, and other identification numbers supplied by or on behalf of a person, firm, corporation, limited liability company, partnership, or other entity related to an application for a horse racing license submitted pursuant to RCW 67.16.260(1)(b), liquor license, gambling license, or lottery retail license;
     (b) Internal control documents, independent auditors' reports and financial statements, and supporting documents: (i) Of house-banked social card game licensees required by the gambling commission pursuant to rules adopted under chapter 9.46 RCW; or (ii) submitted by tribes with an approved tribal/state compact for class III gaming;
     (11) Proprietary data, trade secrets, or other information that relates to: (a) A vendor's unique methods of conducting business; (b) data unique to the product or services of the vendor; or (c) determining prices or rates to be charged for services, submitted by any vendor to the department of social and health services for purposes of the development, acquisition, or implementation of state purchased health care as defined in RCW 41.05.011;
     (12)(a) When supplied to and in the records of the department of commerce:
     (i) Financial and proprietary information collected from any person and provided to the department of commerce pursuant to RCW 43.330.050(8); and
     (ii) Financial or proprietary information collected from any person and provided to the department of commerce or the office of the governor in connection with the siting, recruitment, expansion, retention, or relocation of that person's business and until a siting decision is made, identifying information of any person supplying information under this subsection and the locations being considered for siting, relocation, or expansion of a business;
     (b) When developed by the department of commerce based on information as described in (a)(i) of this subsection, any work product is not exempt from disclosure;
     (c) For the purposes of this subsection, "siting decision" means the decision to acquire or not to acquire a site;
     (d) If there is no written contact for a period of sixty days to the department of commerce from a person connected with siting, recruitment, expansion, retention, or relocation of that person's business, information described in (a)(ii) of this subsection will be available to the public under this chapter;
     (13) Financial and proprietary information submitted to or obtained by the department of ecology or the authority created under chapter 70.95N RCW to implement chapter 70.95N RCW;
     (14) Financial, commercial, operations, and technical and research information and data submitted to or obtained by the life sciences discovery fund authority in applications for, or delivery of, grants under chapter 43.350 RCW, to the extent that such information, if revealed, would reasonably be expected to result in private loss to the providers of this information;
     (15) Financial and commercial information provided as evidence to the department of licensing as required by RCW 19.112.110 or 19.112.120, except information disclosed in aggregate form that does not permit the identification of information related to individual fuel licensees;
     (16) Any production records, mineral assessments, and trade secrets submitted by a permit holder, mine operator, or landowner to the department of natural resources under RCW 78.44.085;
     (17)(a) Farm plans developed by conservation districts, unless permission to release the farm plan is granted by the landowner or operator who requested the plan, or the farm plan is used for the application or issuance of a permit;
     (b) Farm plans developed under chapter 90.48 RCW and not under the federal clean water act, 33 U.S.C. Sec. 1251 et seq., are subject to RCW 42.56.610 and 90.64.190;
     (18) Financial, commercial, operations, and technical and research information and data submitted to or obtained by a health sciences and services authority in applications for, or delivery of, grants under RCW 35.104.010 through 35.104.060, to the extent that such information, if revealed, would reasonably be expected to result in private loss to providers of this information;
     (19) Information gathered under chapter 19.85 RCW or RCW 34.05.328 that can be identified to a particular business;
     (20) Financial and commercial information submitted to or obtained by the University of Washington, other than information the university is required to disclose under RCW 28B.20.150, when the information relates to investments in private funds, to the extent that such information, if revealed, would reasonably be expected to result in loss to the University of Washington consolidated endowment fund or to result in private loss to the providers of this information; ((and))
     (21) Financial, commercial, operations, and technical and research information and data submitted to or obtained by innovate Washington in applications for, or delivery of, grants and loans under chapter 43.333 RCW, to the extent that such information, if revealed, would reasonably be expected to result in private loss to the providers of this information; and
     (22) Proprietary information furnished under section 2(1)(c) of this act if so requested by the person providing the information.

NEW SECTION.  Sec. 11   The following acts or parts of acts are each repealed:
     (1) RCW 43.330.904 (Transfer of certain state energy office powers, duties, and functions -- References to director -- Appointment of assistant director) and 1996 c 186 s 101;
     (2) RCW 43.21F.010 (Legislative findings and declaration) and 2010 c 271 s 401 & 1975-'76 2nd ex.s. c 108 s 1;
     (3) RCW 43.21F.025 (Definitions) and 2010 c 271 s 402;
     (4) RCW 43.21F.045 (Duties of department -- Transfer of powers and duties relating to energy education, applied research, technology transfer, and energy efficiency in public buildings) and 1996 c 186 s 103, 1994 c 207 s 4, 1990 c 12 s 2, 1987 c 505 s 29, & 1981 c 295 s 4;
     (5) RCW 43.21F.055 (Intervention in certain regulatory proceedings prohibited -- Application to energy facility site evaluation council--Avoidance of duplication of activity) and 1996 c 186 s 104 & 1981 c 295 s 5;
     (6) RCW 43.21F.060 (Additional duties and authority of department--Obtaining information -- Confidentiality, penalty -- Receiving and expending funds) and 1996 c 186 s 105, 1981 c 295 s 6, & 1975-'76 2nd ex.s. c 108 s 6;
     (7) RCW 43.21F.062 (Renewable energy facilities in coastal and estuarine marine waters -- Guidance) and 2010 c 145 s 9;
     (8) RCW 43.21F.088 (State energy strategy -- Principles--Implementation) and 2010 c 271 s 403; and
     (9) RCW 43.21F.090 (State energy strategy -- Review and report to legislature) and 1996 c 186 s 106 & 1994 c 207 s 5.