AN ACT Relating to the powers of joint operating agencies; adding new sections to chapter 43.52 RCW; creating a new section; and repealing RCW 43.52.250, 43.52.260, 43.52.272, 43.52.300, 43.52.3411, 43.52.343, and 43.52.391.

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

NEW SECTION. Sec. 1. Unless the context clearly requires otherwise, the following definitions apply throughout this chapter:

(1) "Board" means the board of directors of the joint operating agency unless the operating agency is constructing, operating, terminating, or decommissioning a nuclear power plant under a site certification agreement under chapter 80.50 RCW, in which case "board" means the executive board.

(2) "Board of directors" means the board established under RCW 43.52.370.

(3) "Canada" means Canada or any province thereof.

(4) "Chairman" means the chairman of the energy facility site evaluation council.

(5) "City" means any city or town in the state of Washington authorized to engage in the business of generating and/or distributing electricity.

(6) "District" means a public utility district as created under the laws of the state of Washington authorized to engage in the business of generating and/or distributing electricity.

(7) "Executive board" means the board established under RCW 43.52.374.

(8) "Generation and/or transmission of electricity" includes generation by water power, by steam power, by nuclear power, or by any other means.

(9) "Large electric generating facility" means a stationary thermal power plant with generating capacity of two hundred fifty thousand kilowatts or more.

(10) "Managing director" means the person appointed by an executive board under RCW 43.52.374.

(11) "Operating agency" or "joint operating agency" means a municipal corporation created pursuant to RCW 43.52.360.

(12) "Public utility" means any person, firm or corporation, political subdivision or governmental subdivision including cities, towns and public utility districts engaged in or authorized to engage in the business of generating, transmitting or distributing electric energy.

(13) "Revenue bonds or warrants" means bonds, notes, bond anticipation notes, warrants, certificates of indebtedness, commercial paper, refunding or renewal obligations, payable from a special fund or revenues of the utility properties operated by the joint operating agency.

NEW SECTION. Sec. 2. Except as otherwise provided in this section, a joint operating agency shall have all powers now or hereafter granted public utility districts under the laws of this state. It shall not acquire nor operate any electric distribution properties nor condemn any properties owned by a public utility which are operated for the generation and transmission of electric power and energy or are being developed for such purposes with due diligence under a valid license or permit, nor purchase or acquire any operating hydroelectric generating plant owned by any city or district on June 11, 1953, or which may be acquired by any city or district by condemnation on or after January 1, 1957, nor levy taxes, issue general obligation bonds, or create subdistricts. No joint operating agency may begin construction of any large electric generation facility after January 1, 1986. A joint operating agency shall have authority:

(1) To generate, produce, transmit, deliver, exchange, purchase or sell electric energy and to enter into contracts for any or all such purposes.

(2) To construct, condemn, purchase, lease, acquire, add to, extend, maintain, improve, operate, develop and regulate plants, works and facilities for the generation and/or transmission of electric energy, either within or without the state of Washington, and to take, condemn, purchase, lease and acquire any real or personal, public or private property, franchise and property rights, including but not limited to state, county and school lands and properties, for any of the purposes herein set forth and for any facilities or works necessary or convenient for use in the construction, maintenance or operation of any such works, plants and facilities; provided that an operating agency shall not be authorized to acquire by condemnation any plants, works and facilities owned and operated by any city or district, or by a privately owned public utility. Actions in eminent domain may be instituted in the superior court of any county in which any of the property sought to be condemned is located and the court in any such action shall have jurisdiction to condemn property wherever located within the state; otherwise such actions shall be governed by the same procedure as now or hereafter provided by law for public utility districts. An operating agency shall be authorized to contract for and to acquire by lease or purchase from the United States or any of its agencies, any plants, works or facilities for the generation and transmission of electricity and any real or personal property necessary or convenient for use in connection therewith.

(3) To negotiate and enter into contracts with the United States or any of its agencies, with any state or its agencies, with Canada or its agencies or with any district or city of this state, for the lease, purchase, construction, extension, betterment, acquisition, operation and maintenance of all or any part of any electric generating and transmission plants and reservoirs, works and facilities or rights necessary thereto, either within or without the state of Washington, and for the marketing of the energy produced therefrom. Negotiations or contracts shall be carried on and concluded with due regard to the position and laws of the United States in respect to international agreements.

(4) To negotiate and enter into contracts for the purchase, sale, exchange, transmission or use of electric energy or falling water with any person, firm or corporation, including political subdivisions and agencies of any state of Canada, or of the United States, at fair and nondiscriminating rates.

(5) To sell steam or water not required by it for generation of power and to construct or acquire any facilities it deems necessary for that purpose.

(6) To apply to the appropriate agencies of the state of Washington, the United States or any thereof, and to Canada and/or to any other proper agency for such permits, licenses or approvals as may be necessary, and to construct, maintain and operate works, plants and facilities in accordance with such licenses or permits, and to obtain, hold and use such licenses and permits in the same manner as any other person or operating unit.

(7) To establish rates for electric energy sold or transmitted by the operating agency. When any revenue bonds or warrants are outstanding the operating agency shall have the power and shall be required to establish and maintain and collect rates or charges for electric energy, falling water and other services sold, furnished or supplied by the operating agency which shall be fair and nondiscriminatory and adequate to provide revenues sufficient for the payment of the principal and interest on such bonds or warrants and all payments which the operating agency is obligated to set aside in any special fund or funds created for such purposes, and for the proper operation and maintenance of the public utility owned by the operating agency and all necessary repairs, replacements and renewals thereof.

(8) To act as agent for the purchase and sale at wholesale of electricity for any city or district whenever requested so to do by such city or district.

(9) To contract for and to construct, operate and maintain fishways, fish protective devices and facilities and hatcheries as necessary to preserve or compensate for projects operated by the operating agency.

(10) To construct, operate and maintain channels, locks, canals and other navigational, reclamation, flood control and fisheries facilities as may be necessary or incidental to the construction of any electric generating project, and to enter into agreements and contracts with any person, firm or corporation, including political subdivisions of any state, of Canada or the United States for such construction, operation and maintenance, and for the distribution and payment of the costs thereof.

(11) To employ legal, engineering and other professional services and fix the compensation of a managing director and such other employees as the operating agency may deem necessary to carry on its business, and to delegate to such manager or other employees such authority as the joint operating agency shall determine. Such manager and employees shall be appointed for an indefinite time and be removable at the will of the joint operating agency. Reimbursement of the manager and employees of the joint operating agency for travel expenses shall be at the same rates established under RCW 43.03.050 and 43.03.060.

(12) To study, analyze and make reports concerning the development, utilization and integration of electric generating facilities and requirements within the state and without the state in that region which affects the electric resources of the state.

(13) To acquire any coal-bearing lands or geothermal resources, within or without the state, or any rights therein, for the purpose of assuring a long-term, adequate supply of coal-bearing lands or geothermal resources to supply its needs, both actual and prospective, for the generation of power and may make such contracts with respect to the sale or disposal of such coal-bearing lands or geothermal resources that it deems proper.

NEW SECTION. Sec. 3. (1) For the purposes provided for in this chapter, an operating agency shall have power to issue revenue bonds or warrants payable from the revenues of the utility properties operated by it. Whenever the board of a joint operating agency shall deem it advisable to issue bonds or warrants to construct or acquire any public utility or any works, plants or facilities or any additions or betterments thereto or extensions thereof it shall provide therefor by resolution, which shall specify and adopt the system or plan proposed and declare the estimated cost thereof as near as may be. Such cost may include funds for working capital, for payment of expenses incurred in the acquisition or construction of the utility and for the repayment of advances made to the operating agency by any public utility district or city. Except as provided in subsection (2) of this section, all provisions of law as now or hereafter in effect relating to revenue bonds or warrants of public utility districts shall apply to revenue bonds or warrants issued by the joint operating agency including, without limitation, provisions relating to: The creation of special funds and the pledging of revenues thereto; the time and place of payment of such bonds or warrants and the interest rate or rates thereon; the covenants that may be contained therein and the effect thereof; the execution, issuance, sale, funding, or refunding, redemption and registration of such bonds or warrants; and the status thereof as negotiable instruments, as legal securities for deposits of public moneys and as legal investments for trustees and other fiduciaries and for savings and loan associations, banks and insurance companies doing business in this state. However, for revenue bonds or warrants issued by an operating agency, the provisions under RCW 54.24.030 relating to additional or alternate methods for payment may be made a part of the contract with the owners of any revenue bonds or warrants of an operating agency. Such bonds and warrants may be issued and sold in accordance with chapter 39.46 RCW.

(2) All bonds issued by an operating agency shall be sold and delivered in such manner, at such rate or rates of interest and for such price or prices and at such time or times as the board shall deem in the best interests of the operating agency, whether by negotiation or to the highest and best bidder after such advertising for bids as the board of the operating agency may deem proper: PROVIDED, That the board may reject any and all bids so submitted and thereafter sell such bonds so advertised under such terms and conditions as it may deem most advantageous to its own interests.

NEW SECTION. Sec. 4. Any member of an operating agency may advance or contribute funds to an agency as may be agreed upon by the agency and the member, and the agency shall repay such advances or contributions from proceeds of revenue bonds, from operating revenues, or from any other funds of the agency, together with interest not to exceed the maximum specified in RCW 43.52.395(1). The legislative body of any member may authorize and make such advances or contributions to an operating agency to assist in a plan for termination of a project or projects, whether or not such member is a participant in such project or projects. Any member who makes such advances or contributions for terminating a project or projects in which it is not a participant shall not assume any liability for any debts or obligations related to the terminated project or projects on account of such advance or contribution.

NEW SECTION. Sec. 5. Sections 1 through 4 of this act are a continuation of sections repealed by this act and apply equally to entities created under chapter 43.52 RCW before the effective date of this act; however, nothing in this act requires reapplication by a joint operating agency in existence on the effective date of this act. This act shall be liberally construed to effectuate its purposes.

NEW SECTION. Sec. 6. Sections 1 through 5 of this act are each added to chapter 43.52 RCW.

NEW SECTION. Sec. 7. This act shall not be construed as affecting any existing right acquired, or liability or obligation incurred under the sections repealed in this act, nor any rule, regulation, or order adopted, nor any proceeding instituted, under those sections.

NEW SECTION. Sec. 8. The following acts or parts of acts are each repealed:

(1) Section 43.52.250, chapter 8, Laws of 1965, section 1, chapter 184, Laws of 1977 ex. sess., section 1, chapter 1, Laws of 1981 1st ex. sess., section 1, chapter 43, Laws of 1982 1st ex. sess. and RCW 43.52.250;

(2) Section 43.52.260, chapter 8, Laws of 1965, section 2, chapter 184, Laws of 1977 ex. sess. and RCW 43.52.260;

(3) Section 43.52.272, chapter 8, Laws of 1965 and RCW 43.52.272;

(4) Section 43.52.300, chapter 8, Laws of 1965, section 1, chapter 37, Laws of 1975 1st ex. sess., section 4, chapter 184, Laws of 1977 ex. sess. and RCW 43.52.300;

(5) Section 43.52.3411, chapter 8, Laws of 1965, section 2, chapter 1, Laws of 1981 1st ex. sess., section 116, chapter 167, Laws of 1983 and RCW 43.52.3411;

(6) Section 43.52.343, chapter 8, Laws of 1965, section 3, chapter 1, Laws of 1981 1st ex. sess. and RCW 43.52.343; and

(7) Section 43.52.391, chapter 8, Laws of 1965, section 8, chapter 184, Laws of 1977 ex. sess., section 1, chapter 1, Laws of 1982 and RCW 43.52.391.