H-1784 _______________________________________________
HOUSE BILL NO. 2094
_______________________________________________
State of Washington 51st Legislature 1989 Regular Session
By Representatives Cooper, Hankins, R. Meyers, Zellinsky, H. Myers, Gallagher, S. Wilson, Miller, Heavey, May, Brooks, Jesernig and Winsley
Read first time 2/20/89 and referred to Committee on Energy & Utilities.
AN ACT Relating to energy efficient construction and affordable housing; amending RCW 19.27A.020, 80.28.025, and 82.16.055; adding new sections to chapter 19.27A RCW; adding a new section to chapter 4.24 RCW; creating a new section; repealing RCW 19.27A.010, 19.27A.030, and 19.27A.040; providing an effective date; and declaring an emergency.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 1. The legislature finds that the electricity surplus in the Northwest is dwindling as the population increases and the economy expands. It will soon be necessary to decide where to obtain additional electrical energy resources to fuel the economy and meet consumer demand. Energy efficiency will reduce the pressure for future rate increases. By keeping the cost of energy low, this region will maintain an important economic advantage.
It is declared policy of the legislature that using energy efficiently is one of the lowest cost ways to meet consumer demand for electrical energy. To that end, this act is directed to enhance energy efficient building methods. It is the intent of this act to make residential construction cost-effective for the consumer and encourage home builders to continue to build affordable housing for entry level consumers. Conservation and energy efficiency will stretch our current clean energy efficient resources into the future. It is further declared to be the policy of this state that energy codes adopted herein shall represent the minimum and maximum state-wide standards for building construction so that costs can be stabilized or reduced in the building construction industry. Such codes are considered by the legislature to be in compliance with the requirements of P.L. 96-501, section 4(f)(1), the Northwest power planning and conservation act. It is further declared to be the policy of this state that no jurisdiction or utility complying, in good faith, with the requirements of this act should be subject to conservation related energy surcharges by any agency, public or private. In the event that any such surcharge should be imposed upon any such jurisdiction or utility, the attorney general of this state is directed to join in any necessary litigation required to remove such energy surcharges.
NEW SECTION. Sec. 2. An energy code shall be in effect in each city, town, and county of this state. Each city, town, and county shall enforce the state energy code by July 1, 1990.
Sec. 3. Section 3, chapter 76, Laws of 1979 ex. sess. as amended by section 2, chapter 144, Laws of 1985 and RCW 19.27A.020 are each amended to read as follows:
(1) The
state building code advisory council shall promulgate rules, pursuant to
chapter ((34.04)) 34.05 RCW, for the purpose of adopting a
revised state code. The state energy code for residential structures shall
be considered the state-wide minimum and maximum energy code for all cities,
towns, and counties in the state of Washington except for energy codes adopted
by a city, town, or county of the state prior to April 24, 1985. The
revised code shall be designed to achieve whole house reductions in
energy consumption relative to buildings constructed to comply with the state
energy code, ((June 30, 1980 edition, as amended)) chapter 6, Laws of
1986. The council shall follow the legislature's guidelines set forth in
this section to design a revised code which requires new buildings to meet a
certain level of energy efficiency, but allows flexibility in building design
((and)), construction, and heating plant efficiencies
within that framework. The revised code shall be designed to allow electric
and gas space heating equipment efficiency in excess of those required in this
act to offset or substitute for building envelope thermal performance. The
revised code shall take into account regional climatic conditions ((and)).
Climate zone one shall include all counties not enumerated in zone two.
Climate zone two includes: Adams, Chelan, Douglas, Ferry, Grant, Kittitas,
Lincoln, Okanogan, Pend Oreille, Spokane, Stevens, and Whitman counties. The
code shall be designed according to the following guidelines:
(a) For new electric resistance heated residential buildings, the code shall be designed to achieve energy savings equivalent to savings achieved in typical buildings constructed with:
(i)
Ceilings insulated to a level of R-38((, except single rafter or joist
vaulted ceilings may be insulated to a level of R-30)) in all zones
(R value includes insulation only);
(ii) Walls
insulated to a level of R-19 (((total assembly))) in zone one. Walls
insulated to a level of R-24 in zone two;
(iii) Below grade walls, if insulated on the interior side, to a level of R-19 in all zones. Below grade walls, if insulated on the exterior side, to a level of R-10 in zone one and R-12 in zone two;
(iv)
Floors over unheated spaces insulated to a level of ((R-19 for areas with
six thousand or less annual heating degree days and to a level of R-25 for
areas with more than six thousand annual heating degree days)) R-25 in
zone one and R-30 in zone two (R value includes insulation only);
(((iv)))
(v) Exterior doors insulated to a level of R-5 in all zones;
(vi) In all zones slab-on grade floors shall have an R value of ten at the perimeter;
(vii)
Double glazed windows with ((tested)) R values not less than ((1.79
when tested according to the procedures of the American architectural
manufacturers association)) two in all zones; and
(((v) In
areas with more than six thousand annual heating degree days a maximum of
seventeen percent of the floor area in glazing; in areas with six thousand or
less annual heating degree days a maximum of twenty-one percent of the floor
area in glazing)) (viii) In zone one the maximum glazing area shall be
seventeen percent of floor area. In zone two the maximum glazing area shall be
fifteen percent of floor area. Throughout the state for the purposes of
determining equivalent thermal performance, the maximum glazing area shall be
fifteen percent of the floor area.
(b) For new
residential buildings ((which are space-heated with other fuels)) with
all other forms of space heating, the code shall be designed to achieve
energy savings equivalent to savings achieved in typical buildings constructed
with:
(i) Ceilings insulated to a level of R-30 in zone one and R-38 in zone two (R value includes insulation only);
(ii) Walls
insulated to a level of R-19 (((total assembly))) in all zones.
Walls constructed with two-by-four members, R-13 insulation batts, R-5
sheathing and other normal assembly components comply with this requirement;
(iii) Below grade walls, if insulated on the interior side, to a level of R-19 in all zones. Below grade walls, if insulated on the exterior side, to a level of R-10 in zone one and R-12 in zone two.
(iv) Floors over unheated spaces insulated to a level of R-19 in zone one and R-25 in zone two (R value includes insulation only);
(((iv)))
(v) Exterior doors insulated to a level of R-5 in all zones;
(vi) In all zones slab-on grade floors shall have an R value of ten at the perimeter;
(vii) Heat pumps with a minimum heating season performance factor (HSPF) of 6.8 or with all other energy sources with a minimum annual fuel utilization efficiency (AFUE) of seventy-eight percent;
(viii)
Double glazed windows with ((tested)) R values not less than ((1.40
when tested according to the procedures of the American architectural
manufacturers association)) 1.54 in zone one and 1.67 in zone two;
and
(((v) In
areas with more than six thousand annual heating degree days a)) (ix) In
zone one, the maximum ((of seventeen)) glazing area shall be
twenty-one percent of the floor area ((in glazing; in areas with six
thousand or less annual heating degree days a maximum of twenty-one percent of
the floor area in glazing)). In zone two the maximum glazing area shall
be seventeen percent of the floor area. Throughout the state for the
purposes of determining equivalent thermal performance, the maximum glazing
area shall be fifteen percent of the floor area.
(c) For the purposes of this chapter, R value refers to the nominal value of the insulation only. Equivalent thermal performance shall be determined by the overall U value of the total assembly. In the case of glazing, the R value refers to the formula "one divided by the tested U value."
(d) For the purposes of this chapter, all glazing values shall be determined by use of the American architectural manufacturers association 1503.1-1980 test procedure conducted by an American architectural manufacturers association certified laboratory or the American society for testing materials C236 or C976 test procedures, where testing has been conducted under established winter horizontal heat flow test conditions using the fifteen mph wind speed perpendicular to the exterior surface of the glazing and product sample sizes as specified under the American architectural manufacturers association 1503.1-1980 test procedure. Sealed insulation glass, where used, shall conform to American society for testing materials E-774-81 level C or better.
(e)
For new nonresidential buildings, the code shall be ((designed to achieve a
ten percent reduction in energy consumption relative to buildings constructed
to comply with)) the state energy code, ((June 30, 1980 edition, as
amended)) chapter 6, Laws of 1986.
(2) In
developing the revised code, the council shall consider possible health and
respiratory problems caused by ((insulating)) sealing buildings
so tightly that the rate of air exchange is significantly retarded((,
thereby concentrating toxic pollutants at unhealthy high levels)). The
state building code council shall adopt rules pursuant to chapter 34.05 RCW for
the purpose of establishing indoor air quality standards and requirements for
achieving them in new housing by January 1, 1990.
(3) The full cost of any ventilation requirements established under this chapter shall be added to the transition payments made under section 5 of this act.
(4)
The council shall publish the revision as proposed rules pursuant to chapter ((34.04))
34.05 RCW and provide for the rules to become effective January 1, ((1986))
1990. All cities, towns, and counties shall enforce the revised state
energy code not later than ((April 1, 1986)) July 1, 1990.
(5) The state building code council shall consult with the state energy office as provided in RCW 34.05.310 prior to the publication of proposed rules. The state energy office shall review the proposed rules for consistency with the state energy code. The director of the state energy office shall recommend to the state building code council any changes necessary to conform the proposed rules to the requirements of this section.
NEW SECTION. Sec. 4. A new section is added to chapter 4.24 RCW to read as follows:
It is a defense in a civil action brought for damages for injury caused by indoor air pollutants in a newly constructed residential structure that the builder complied in good faith, without negligence or misconduct, with:
(1) Building product safety standards, including labeling;
(2) Restrictions on the use of building materials known or believed to contain substances that contribute to indoor air pollution; and
(3) The ventilation requirements of RCW 19.27A.020.
NEW SECTION. Sec. 5. (1) Electric utilities shall make transition payments for newly constructed electrically heated residential buildings built in compliance with the requirements of the state energy code adopted under this section. All or a portion of the funds for transition payments may be accepted from federal agencies or other sources.
(2) Transition payments shall be made to the builder of a newly constructed electrically heated residential building to ensure the continued availability of affordable housing. Transition payments shall be made to builders of all homes with floor areas under two thousand square feet. Payments may be made for residential buildings on which construction has begun on or after July 1, 1990, and prior to July 1, 2000.
(3) The transition payment for a new residential building with R-3 occupancy shall be seventy-five cents per square foot. The transition payment for new residential buildings other than R-3 occupancies shall be sixty cents per square foot for each unit. In addition to these amounts the transition payments shall include the full cost of any ventilation requirements imposed under RCW 19.27A.020.
(4) The utilities and transportation commission shall provide an appropriate regulatory mechanism which allows an electric utility regulated by the commission to recover expenses incurred by the utility in making transition payments.
(5) Subsections (1), (2), and (3) of this section shall expire June 30, 2001.
Sec. 6. Section 2, chapter 149, Laws of 1980 and RCW 80.28.025 are each amended to read as follows:
(1) In
establishing rates for each gas and electric company regulated by this chapter,
the commission shall adopt policies to encourage meeting or reducing energy
demand through cogeneration as defined in RCW 82.35.020, measures which improve
the efficiency of energy end use, and new projects which produce or generate
energy from renewable resources, such as solar energy, wind energy,
hydroelectric energy, geothermal energy, wood, wood waste, municipal wastes,
agricultural products and wastes, and end-use waste heat. ((These policies
shall include but are not limited to))
(2) The
commission shall adopt a policy allowing a return on investment in measures
to improve the efficiency of energy end use, cogeneration, or projects which
produce or generate energy from renewable resources ((which)). The
return on investment is established by adding an increment of two
percent to the rate of return on common equity permitted on the company's other
investment and allowing the capitalization of carrying costs associated with
the investment in such measures until they are included in the rate base for
rate-making purposes. The rate of return increment shall be allowed for a
period not to exceed thirty years after the measure or project is first placed
in the rate base.
(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. The policies may include, allowing a periodic rate adjustment for investments in end-use efficiency, allowing a utility to accrue an allowance for funds used to acquire end-use efficiency, and allowing changes in price structure designed to produce additional net revenue. Transition payments made pursuant to section 5 of this act shall be considered a measure which improves the efficiency of energy end use.
(4) Measures
or projects encouraged under this section are those for which construction or
installation is begun after June 12, 1980((, and before January 1, 1990, and
which,)). At the time they are placed in the rate base, ((are))
the measures or projects must be reasonably expected to save, produce,
or generate energy at a total incremental system cost per unit of energy
delivered to end use which is less than or equal to the incremental system cost
per unit of energy delivered to end use from similarly available conventional
energy resources which ((utilize)) use nuclear energy or fossil
fuels and which the gas or electric company could acquire to meet energy demand
in the same time period. ((The rate of return increment shall be allowed
for a period not to exceed thirty years after the measure or project is first
placed in the rate base.))
Sec. 7. Section 3, chapter 149, Laws of 1980 and RCW 82.16.055 are each amended to read as follows:
(1) In computing tax under this chapter there shall be deducted from the gross income:
(a) An amount equal to the cost of production at the plant for consumption within the state of Washington of:
(i) Electrical energy produced or generated from cogeneration as defined in RCW 82.35.020; and
(ii) Electrical energy or gas produced or generated from renewable energy resources such as solar energy, wind energy, hydroelectric energy, geothermal energy, wood, wood wastes, municipal wastes, agricultural products and wastes, and end-use waste heat; and
(b) Those amounts expended to improve consumers' efficiency of energy end use or to otherwise reduce the use of electrical energy or gas by the consumer, including payments to the builder of new residential housing.
(2) This
section applies only to new facilities for the production or generation of
energy from cogeneration or renewable energy resources or measures to improve
the efficiency of energy end use on which construction or installation is begun
after June 12, 1980((, and before January 1, 1990)).
(3) Deductions under subsection (1)(a) of this section shall be allowed for a period not to exceed thirty years after the project is placed in operation.
(4) Measures or projects encouraged under this section shall at the time they are placed in service be reasonably expected to save, produce, or generate energy at a total incremental system cost per unit of energy delivered to end use which is less than or equal to the incremental system cost per unit of energy delivered to end use from similarly available conventional energy resources which utilize nuclear energy or fossil fuels and which the gas or electric utility could acquire to meet energy demand in the same time period.
(5) The department of revenue, after consultation with the utilities and transportation commission in the case of investor-owned utilities and the governing bodies of locally regulated utilities, shall determine the eligibility of individual projects and measures for deductions under this section.
NEW SECTION. Sec. 8. Sections 1 and 2 of this act are each added to chapter 19.27A RCW.
NEW SECTION. Sec. 9. The following acts or parts of acts are each repealed:
(1) Section 3, chapter 96, Laws of 1974 ex. sess., section 8, chapter 110, Laws of 1975 1st ex. sess., section 11, chapter 14, Laws of 1977 ex. sess., section 1, chapter 76, Laws of 1979 ex. sess., section 1, chapter 8, Laws of 1980, section 1, chapter 101, Laws of 1984, section 1, chapter 144, Laws of 1985 and RCW 19.27A.010;
(2) Section 3, chapter 144, Laws of 1985, section 1, chapter 204, Laws of 1988 and RCW 19.27A.030; and
(3) Section 4, chapter 144, Laws of 1985, section 2, chapter 204, Laws of 1988 and RCW 19.27A.040.
NEW SECTION. Sec. 10. (1) Sections 1 through 8 of this act are necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect immediately.