BILL REQ. #:  H-0143.1 

Prefiled 12/30/2002. Read first time 01/13/2003.   Referred to Committee on Technology, Telecommunications & Energy.

     AN ACT Relating to the joint task force on long-term energy supply; amending RCW 43.21F.015 and 43.21F.090; creating new sections; and providing an expiration date.

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

NEW SECTION.  Sec. 1   (1) The legislature finds that passage of the energy policy act (P.L. 102-486) by congress in 1992 has had a profound impact on the electricity industry in the northwest. The electricity market in the state has transformed from transactions between utilities and seasonal exchanges among utilities in the northwest and the southwest to an active wholesale electricity market that involves independent marketers and developers of merchant power plants. Uncertainty about changes occurring in the market and the industry has discouraged investment in additional generation and transmission capacity and conservation. Recent experience with extreme price fluctuations in the wholesale markets continues to have a significant impact on the electric industry.
     (2) The legislature declares that state energy strategy should be revised to consider the implications of wholesale market volatility upon the electric industry. To the extent that actions can be undertaken to encourage investment in additional generation resources, new technologies, and conservation, they should be pursued to minimize the impacts of wholesale market volatility on consumers, utilities, and independent power producers.

Sec. 2   RCW 43.21F.015 and 1994 c 207 s 3 are each amended to read as follows:
     It is the policy of the state of Washington that:
     (1) The development and use of a diverse array of energy resources with emphasis on conservation, renewable energy resources, and new generation and energy management technologies shall be encouraged;
     (2) The supply of energy shall be sufficient to insure the health and economic welfare of its citizens that includes meeting projected demand for Washington as well as other states or foreign countries having an impact on this state's energy supply;
     (3) The development and use of energy resources shall be consistent with the statutory environmental policies of the state;
     (4) Energy conservation and elimination of wasteful and uneconomic uses of energy and materials shall be encouraged, and this conservation should include, but is not limited to, cost-effective energy efficiency, resource recovery that achieves at least a doubling of previous resource utilization or eighty percent efficiency, and materials recycling;
     (5) In energy emergency shortage situations, energy requirements to maintain ((the)) critical public health, safety, and welfare activities shall be given priority in the allocation of energy resources while curtailing noncritical government functions, and citizens and industry shall be assisted in adjusting to the limited availability of energy in order to minimize adverse impacts on their physical, social, and economic well being;
     (6) State government shall provide a source of impartial and objective information in order that this energy policy may be enhanced; and
     (7) The state energy strategy shall provide primary guidance for implementation of the state's energy policy.

NEW SECTION.  Sec. 3   (1) A joint task force on long-term energy supply is established. The joint task force will consist of eleven members, as follows:
     (a) Two members from each of the two largest caucuses of the senate, appointed by the president of the senate. At least one member from each caucus will be a member of the standing committee that hears energy issues. The standing committee members will be the chair of the committee and the ranking minority member of the committee;
     (b) Two members from each of the two largest caucuses of the house of representatives, appointed by the speaker of the house of representatives. At least one member from each caucus will be a member of the standing committee that hears energy issues. The standing committee members will be the chair of the committee and the ranking minority member of the committee;
     (c) Three members from the executive branch appointed by the governor to include the governor's office and the department of community, trade, and economic development or its successor agency.
     (2) The task force will choose its chair from among its membership.
     (3) The task force, where feasible, may consult with individuals from the public and private sector and may ask such persons to establish advisory committees or work groups. Those with whom the task force may consult include representatives from at least the following:
     (a) Retail and wholesale energy providers;
     (b) Environmental organizations;
     (c) Energy users including commercial, industrial, and residential users;
     (d) Labor organizations involved directly and indirectly with the energy industry;
     (e) Cities;
     (f) Counties;
     (g) Regional organizations involved in energy planning and distribution; and
     (h) State agencies that deal with energy issues.
     (4) The task force will study, as part of its review of the state's energy strategy under RCW 43.21F.090, issues relating to long-term energy supply and demand and:
     (a) Identify methods to ensure the creation of new capacity in the electrical supply system in advance of the critical need for energy;
     (b) Identify obstacles that provide a disincentive to building new generation;
     (c) Identify incentives for investment in building new generation capacity, including setting a floor price for electricity to offset costs of construction; and
     (d) Identify methods to encourage demand management options and technologies.
     (5) In its review of the state's energy strategy, the task force will recommend revisions and specific actions that may be taken to implement the state's energy strategy. The task force will examine a broad array of energy resources and environmental impacts of supply and demand side options.
     (6) The task force will use staff from senate committee services and the house of representatives office of program research and staff from the governor's office and the department of community, trade, and economic development, but may hire additional staff with specific technical expertise if such expertise is necessary to carry out the mandates of this study.
     (7) The task force will report its findings and recommendations to the legislature by December 31, 2003.
     (8) This section expires July 1, 2004.

Sec. 4   RCW 43.21F.090 and 1996 c 186 s 106 are each amended to read as follows:
     The ((department)) joint task force on long-term energy supply established in section 3 of this act shall review the state energy strategy as developed under section 1, chapter 201, Laws of 1991((, periodically with the guidance of an advisory committee)). The state energy strategy may be reviewed periodically. For each review, ((an advisory committee)) a task force shall 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)) joint task force on long-term energy supply. ((Upon completion of a public hearing regarding the advisory committee's advice and recommendations for revisions to the energy strategy)) Except as provided in section 3 of this act, a written report shall be conveyed by the ((department)) task force to the governor and the appropriate legislative committees by July 1st of the year following the year in which the task force is established. Any ((advisory committee)) task force established under this section shall be dissolved within three months after their written report is conveyed.