BILL REQ. #:  H-4896.1 

READ FIRST TIME 02/06/04.   

     AN ACT Relating to energy efficiency; and creating a new section.

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

NEW SECTION.  Sec. 1   (1) The legislature recognizes that: (a) Large electricity users contribute greatly to the economy of Washington state; (b) many of these large electricity users are located in Washington because of the historical low cost of electricity in this state; (c) growth and the resultant increase in demand for electricity drives costs up, placing an economic burden on large electricity users potentially driving them out of the state; and (d) it is in the best interest of the state of Washington to secure low cost electricity for large electricity users thereby keeping them in the state. It is the intent of the legislature to establish the framework for the creation of the Washington state conservation authority for the purpose of applying Washington's expertise and creativity in conservation techniques and financing to secure affordable electricity for high electricity-use industries.
     (2) The department of general administration shall develop recommendations for the establishment of the Washington state conservation authority. In developing these recommendations, the department shall work with stakeholders, chairs of the appropriate legislative committees, and the department of community, trade, and economic development.
     (3) The recommendations required by this act shall provide that the Washington state conservation authority have the authority to aggregate conservation savings from all levels of state and local government utilizing a combination of performance bonding and contract financing to generate energy conservation. The conservation gained from this effort may be provided to electricity consumers that require five megawatts or more at a target price of thirty-five dollars or less a megawatt hour. These qualifying customers may receive the power in one megawatt increments. All potential qualifying consumers must have an equal opportunity to acquire this lower cost power.
     (4) For the purpose of this act, "performance contracting" means utilizing a stream of revenue from long-term purchases of one megawatt increments to finance bonds used to purchase capital investments which result in energy conservation.
     (5) The department of general administration shall submit recommendations, including draft legislation, required by this act to the appropriate committees of the legislature no later than December 1, 2004.