HOUSE BILL REPORT

HB 1995

BYRepresentatives Nelson, Beck, Zellinsky, P. King, Todd, Cole, Belcher, Spanel and Rasmussen

Creating the oil heat commission.

House Committe on Energy & Utilities

Majority Report:  The substitute bill be substituted therefor and the substitute bill do pass.  (8)

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

Minority Report:  Do not pass. (4)

      Signed by Representatives Brooks, Cooper, Jesernig and Miller.

House Staff:Fred Adair (786-7113)

AS REPORTED BY COMMITTEE ON ENERGY & UTILITIES MARCH 1, 1989

BACKGROUND:

Energy efficiency retrofit of existing buildings is a significant component of the state's effort to upgrade its efficiency in the use of energy.  The electricity and natural gas providers are well- organized to provide building energy efficiency retrofit programs.  This is chiefly due to the characteristics of the providers - utilities which distribute the electricity or natural gas to a large number of customers.

By contrast, heating oil is distributed by a large number of small independent businesses. Generally, they are not equipped financially or technically to conduct building energy efficiency retrofit programs.  Thus, it is more difficult to reach oil heated buildings for energy efficiency retrofits.  One approach to improving this situation would be to organize the oil heat dealers in order to combine their individual capabilities for greater effect.

SUMMARY:

SUBSTITUTE BILL:  A 10 member oil heat commission may be established by oil heat dealer vote.  Oil heat dealers select eight commission members from among themselves and appoint two public members.  The commission can levy up to 1 cent per gallon of fuel oil, subject to approval of dealers through referendum, to carry out the programs of the commission.

Principal tasks of the commission are heating equipment research and information dissemination, conducting of weatherization programs, providing financial assistance to low-income customers, oil transfer and delivery safety programs, and heating equipment maintenance training for oil heat industry personnel.

The State Department of Community Development shall assist the commission in carrying out certain of its programs.

SUBSTITUTE BILL COMPARED TO ORIGINAL:  Oil heat dealers must vote to establish the commission, two public members are added, and the weatherization programs are further emphasized.  State agency coordination is shifted from the State Energy Office to the Department of Community Development.

Fiscal Note:      Requested February 28, 1989.

House Committee ‑ Testified For:    Carolyn Wyman, Department of Community Development (no position; present to answer questions on agency role); Nancy Hanna, State Energy Office; Randy Ray, Forrest Bailey and Tom Allan, Oil Heat Institute.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    The "Oil Help" program, using oil overcharge settlement funds, is concluding because funding is exhausted.  There are many more oil heated homes needing weatherization.  Oil heated homes, on average, are older than other homes and are inhabited by older, often low-income persons.  The commission is needed for oil heat dealers to pool their resources chiefly to conduct weatherization programs.

House Committee - Testimony Against:      None Presented.