HOUSE BILL REPORT

HB 1177

BYRepresentatives Nelson, Miller, Jacobsen and Silver; by request of Washington State Energy Office

Extending utility lending of credit to equipment.

House Committe on Energy & Utilities

Majority Report:  Do pass. (11)

      Signed by Representatives Nelson, Chair; Todd, Vice Chair; Hankins, Ranking Republican Member; Brooks, Cooper, Jacobsen, Jesernig, May, R. Meyers, H. Myers and S. Wilson.

House Staff:Harry Reinert (786-7110)

AS PASSED HOUSE FEBRUARY 24, 1989

BACKGROUND:

The Washington State Constitution generally prohibits the gift or loan of money by the state and local governments.  In 1979 the voters approved a constitutional amendment that authorized local governments and public utilities involved in the sale of electrical power to loan money for conservation and energy efficiency improvements to residential structures.  The Legislature must enact legislation to authorize the use of the power to make conservation loans.

The constitutional amendment was set to expire January 1, 1990. Washington voters approved an amendment to the 1979 amendment in the November, 1988 general election.  The authority for local governments to make conservation and efficiency loans was extended indefinitely.  The restriction on loans for residential structures was removed.  Loans may be made for both buildings and equipment. The amendment restricts the use of loans to existing structures. Loans may not be used to convert from one energy source to another.

SUMMARY:

The statutory authority of local governments and public utilities to make conservation loans is modified to conform to the amendment to the constitution approved by the voters in the November, 1988 general election.  Loans may be made for both commercial and residential structures and for equipment.  Loans may be used only for existing structures and may not be used to convert from one energy source to another.

The act takes effect immediately upon signature by the governor.

Fiscal Note:      Not Requested.

Effective Date:Immediately effective upon enactment.

House Committee ‑ Testified For:    Ed McGuire, State Energy Office; Jake Fey, Tacoma City Light; Tom Mortimer, Washington PUD Association; Al Aldrich, Snohomish County PUD; Scott Nelson, Washington Natural Gas; Sara Patton, Seattle City Light.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    Loans for conservation and efficiency are an important way to obtain an additional energy resource.  The current program has been particularly beneficial for low-income households.  The voters approved extension of the loan program by an overwhelming majority.

House Committee - Testimony Against:      None Presented.