Passed by the House March 4, 2006 Yeas 66   ________________________________________ Speaker of the House of Representatives Passed by the Senate March 2, 2006 Yeas 48   ________________________________________ President of the Senate | I, Richard Nafziger, Chief Clerk of the House of Representatives of the State of Washington, do hereby certify that the attached is ENGROSSED THIRD SUBSTITUTE HOUSE BILL 2939 as passed by the House of Representatives and the Senate on the dates hereon set forth. ________________________________________ Chief Clerk | |
Approved ________________________________________ Governor of the State of Washington | Secretary of State State of Washington |
State of Washington | 59th Legislature | 2006 Regular Session |
READ FIRST TIME 2/7/.
AN ACT Relating to creation of the energy freedom program; amending RCW 42.56.270 and 43.84.092; reenacting and amending RCW 43.84.092; adding a new chapter to Title 15 RCW; creating new sections; providing an effective date; and providing expiration dates.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 1 The legislature finds that:
(1) Washington's dependence on energy supplied from outside the
state and volatile global energy markets makes its economy and citizens
vulnerable to unpredictable and high energy prices;
(2) Washington's dependence on petroleum-based fuels increases
energy costs for citizens and businesses;
(3) Diesel soot from diesel engines ranks as the highest toxic air
pollutant in Washington, leading to hundreds of premature deaths and
increasing rates of asthma and other lung diseases;
(4) The use of biodiesel results in significantly less air
pollution than traditional diesel fuels;
(5) Improper disposal and treatment of organic waste from farms and
livestock operations can have a significant negative impact on water
quality;
(6) Washington has abundant supplies of organic wastes from farms
that can be used for energy production and abundant farmland where
crops could be grown to supplement or supplant petroleum-based fuels;
(7) The use of energy and fuel derived from these sources can help
citizens and businesses conserve energy and reduce the use of
petroleum-based fuels, would improve air and water quality in
Washington, reduce environmental risks from farm wastes, create new
markets for farm products, and provide new industries and jobs for
Washington citizens;
(8) The bioenergy industry is a new and developing industry that
is, in part, limited by the availability of capital for the
construction of facilities for converting farm and forest products into
energy and fuels;
(9) Instead of leaving our economy at the mercy of global events,
and the policies of foreign nations, Washington state should adopt a
policy of energy independence; and
(10) The energy freedom program is meant to lead Washington state
towards energy independence.
Therefore, the legislature finds that it is in the public interest
to encourage the rapid adoption and use of bioenergy, to develop a
viable bioenergy industry within Washington state, to promote public
research and development in bioenergy sources and markets, and to
support a viable agriculture industry to grow bioenergy crops. To
accomplish this, the energy freedom program is established to promote
public research and development in bioenergy, and to stimulate the
construction of facilities in Washington to generate energy from farm
sources or convert organic matter into fuels.
NEW SECTION. Sec. 2 The definitions in this section apply
throughout this chapter unless the context clearly requires otherwise.
(1) "Applicant" means any political subdivision of the state,
including port districts, counties, cities, towns, special purpose
districts, and other municipal corporations or quasi-municipal
corporations. "Applicant" may also include federally recognized tribes
and state institutions of higher education with appropriate research
capabilities.
(2) "Assistance" includes loans, leases, product purchases, or
other forms of financial or technical assistance.
(3) "Department" means the department of agriculture.
(4) "Director" means the director of the department of agriculture.
(5) "Peer review committee" means a board, appointed by the
director, that includes bioenergy specialists, energy conservation
specialists, scientists, and individuals with specific recognized
expertise.
(6) "Project" means the construction of facilities, including the
purchase of equipment, to convert farm products or wastes into
electricity or gaseous or liquid fuels or other coproducts associated
with such conversion. These specifically include fixed or mobile
facilities to generate electricity or methane from the anaerobic
digestion of organic matter, and fixed or mobile facilities for
extracting oils from canola, rape, mustard, and other oilseeds.
"Project" may also include the construction of facilities associated
with such conversion for the distribution and storage of such
feedstocks and fuels.
(7) "Research and development project" means research and
development, by an institution of higher education as defined in
subsection (1) of this section, relating to:
(a) Bioenergy sources including but not limited to biomass and
associated gases; or
(b) The development of markets for bioenergy coproducts.
NEW SECTION. Sec. 3 (1) The energy freedom program is
established within the department. The director may establish policies
and procedures necessary for processing, reviewing, and approving
applications made under this chapter.
(2) When reviewing applications submitted under this program, the
director shall consult with those agencies having expertise and
knowledge to assess the technical and business feasibility of the
project and probability of success. These agencies may include, but
are not limited to, Washington State University, the University of
Washington, the department of ecology, the department of community,
trade, and economic development, and the Washington state conservation
commission.
(3) The director, in cooperation with the department of community,
trade, and economic development, may approve an application only if the
director finds:
(a) The project will convert farm products or wastes directly into
electricity or into gaseous or liquid fuels or other coproducts
associated with such conversion;
(b) The project demonstrates technical feasibility and directly
assists in moving a commercially viable project into the marketplace
for use by Washington state citizens;
(c) The facility will produce long-term economic benefits to the
state, a region of the state, or a particular community in the state;
(d) The project does not require continuing state support;
(e) The assistance will result in new jobs, job retention, or
higher incomes for citizens of the state;
(f) The state is provided an option under the assistance agreement
to purchase a portion of the fuel or feedstock to be produced by the
project, exercisable by the department of general administration;
(g) The project will increase energy independence or diversity for
the state;
(h) The project will use feedstocks produced in the state, if
feasible, except this criterion does not apply to the construction of
facilities used to distribute and store fuels that are produced from
farm products or wastes;
(i) Any product produced by the project will be suitable for its
intended use, will meet accepted national or state standards, and will
be stored and distributed in a safe and environmentally sound manner;
(j) The application provides for adequate reporting or disclosure
of financial and employment data to the director, and permits the
director to require an annual or other periodic audit of the project
books; and
(k) For research and development projects, the application has been
independently reviewed by a peer review committee as defined in section
2 of this act and the findings delivered to the director.
(4) The director may approve an application for assistance up to
five million dollars. In no circumstances shall this assistance
constitute more than fifty percent of the total project cost.
(5) The director shall enter into agreements with approved
applicants to fix the terms and rates of the assistance to minimize the
costs to the applicants, and to encourage establishment of a viable
bioenergy industry. The agreement shall include provisions to protect
the state's investment, including a requirement that a successful
applicant enter into contracts with any partners that may be involved
in the use of any assistance provided under this program, including
services, facilities, infrastructure, or equipment. Contracts with any
partners shall become part of the application record.
(6) The director may defer any payments for up to twenty-four
months or until the project starts to receive revenue from operations,
whichever is sooner.
NEW SECTION. Sec. 4 (1) Upon written notice to the recipient of
any assistance under this program, the director may suspend or cancel
the assistance if any of the following occur:
(a) The recipient fails to make satisfactory and reasonable
progress to complete the project, or the director concludes the
recipient will be unable to complete the project or any portion of it;
or
(b) The recipient has made misrepresentations in any information
furnished to the director in connection with the project.
(2) In the event that any assistance has been awarded to the
recipient under this program at the time of breach, or failure of the
recipient to satisfactorily perform, the director may require that the
full amount or value of the assistance, or a portion thereof, be repaid
within a period specified by the director.
NEW SECTION. Sec. 5 If the total requested dollar amount of
assistance exceeds the amount available in the energy freedom account
created in section 6 of this act, the applications must be prioritized
based upon the following criteria:
(1) The extent to which the project will help reduce dependence on
petroleum fuels and imported energy either directly or indirectly;
(2) The extent to which the project will reduce air and water
pollution either directly or indirectly;
(3) The extent to which the project will establish a viable
bioenergy production capacity in Washington;
(4) The benefits to Washington's agricultural producers; and
(5) The number and quality of jobs and economic benefits created by
the project.
NEW SECTION. Sec. 6 The energy freedom account is created in the
state treasury. All receipts from appropriations made to the account
and any loan payments of principal and interest derived from loans made
under this chapter must be deposited into the account. Moneys in the
account may be spent only after appropriation. Expenditures from the
account may be used only for assistance for projects consistent with
this chapter. Administrative costs of the department may not exceed
three percent of the total funds available for this program.
NEW SECTION. Sec. 7 The director shall report to the legislature
and governor on the status of the energy freedom program created under
this chapter, on or before December 1, 2006, and annually thereafter.
This report must include information on the projects that have been
funded, the status of these projects, and their environmental, energy
savings, and job creation benefits.
Sec. 8 RCW 42.56.270 and 2005 c 274 s 407 are each amended to
read as follows:
The following financial, commercial, and proprietary information is
exempt from disclosure under this chapter:
(1) Valuable formulae, designs, drawings, computer source code or
object code, and research data obtained by any agency within five years
of the request for disclosure when disclosure would produce private
gain and public loss;
(2) Financial information supplied by or on behalf of a person,
firm, or corporation for the purpose of qualifying to submit a bid or
proposal for (a) a ferry system construction or repair contract as
required by RCW 47.60.680 through 47.60.750 or (b) highway construction
or improvement as required by RCW 47.28.070;
(3) Financial and commercial information and records supplied by
private persons pertaining to export services provided under chapters
43.163 and 53.31 RCW, and by persons pertaining to export projects
under RCW 43.23.035;
(4) Financial and commercial information and records supplied by
businesses or individuals during application for loans or program
services provided by chapters 43.-- (sections 2 through 7, 11, and 15
of this act), 43.163, 43.160, 43.330, and 43.168 RCW, or during
application for economic development loans or program services provided
by any local agency;
(5) Financial information, business plans, examination reports, and
any information produced or obtained in evaluating or examining a
business and industrial development corporation organized or seeking
certification under chapter 31.24 RCW;
(6) Financial and commercial information supplied to the state
investment board by any person when the information relates to the
investment of public trust or retirement funds and when disclosure
would result in loss to such funds or in private loss to the providers
of this information;
(7) Financial and valuable trade information under RCW 51.36.120;
(8) Financial, commercial, operations, and technical and research
information and data submitted to or obtained by the clean Washington
center in applications for, or delivery of, program services under
chapter 70.95H RCW;
(9) Financial and commercial information requested by the public
stadium authority from any person or organization that leases or uses
the stadium and exhibition center as defined in RCW 36.102.010;
(10) Financial information, including but not limited to account
numbers and values, and other identification numbers supplied by or on
behalf of a person, firm, corporation, limited liability company,
partnership, or other entity related to an application for a liquor
license, gambling license, or lottery retail license;
(11) Proprietary data, trade secrets, or other information that
relates to: (a) A vendor's unique methods of conducting business; (b)
data unique to the product or services of the vendor; or (c)
determining prices or rates to be charged for services, submitted by
any vendor to the department of social and health services for purposes
of the development, acquisition, or implementation of state purchased
health care as defined in RCW 41.05.011; and
(12)(a) When supplied to and in the records of the department of
community, trade, and economic development:
(i) Financial and proprietary information collected from any person
and provided to the department of community, trade, and economic
development pursuant to RCW 43.330.050(8) and 43.330.080(4); and
(ii) Financial or proprietary information collected from any person
and provided to the department of community, trade, and economic
development or the office of the governor in connection with the
siting, recruitment, expansion, retention, or relocation of that
person's business and until a siting decision is made, identifying
information of any person supplying information under this subsection
and the locations being considered for siting, relocation, or expansion
of a business;
(b) When developed by the department of community, trade, and
economic development based on information as described in (a)(i) of
this subsection, any work product is not exempt from disclosure;
(c) For the purposes of this subsection, "siting decision" means
the decision to acquire or not to acquire a site;
(d) If there is no written contact for a period of sixty days to
the department of community, trade, and economic development from a
person connected with siting, recruitment, expansion, retention, or
relocation of that person's business, information described in (a)(ii)
of this subsection will be available to the public under this chapter.
Sec. 9 RCW 43.84.092 and 2005 c 514 s 1105, 2005 c 353 s 3, 2005
c 339 s 22, 2005 c 314 s 109, 2005 c 312 s 7, and 2005 c 94 s 1 are
each reenacted and amended to read as follows:
(1) All earnings of investments of surplus balances in the state
treasury shall be deposited to the treasury income account, which
account is hereby established in the state treasury.
(2) The treasury income account shall be utilized to pay or receive
funds associated with federal programs as required by the federal cash
management improvement act of 1990. The treasury income account is
subject in all respects to chapter 43.88 RCW, but no appropriation is
required for refunds or allocations of interest earnings required by
the cash management improvement act. Refunds of interest to the
federal treasury required under the cash management improvement act
fall under RCW 43.88.180 and shall not require appropriation. The
office of financial management shall determine the amounts due to or
from the federal government pursuant to the cash management improvement
act. The office of financial management may direct transfers of funds
between accounts as deemed necessary to implement the provisions of the
cash management improvement act, and this subsection. Refunds or
allocations shall occur prior to the distributions of earnings set
forth in subsection (4) of this section.
(3) Except for the provisions of RCW 43.84.160, the treasury income
account may be utilized for the payment of purchased banking services
on behalf of treasury funds including, but not limited to, depository,
safekeeping, and disbursement functions for the state treasury and
affected state agencies. The treasury income account is subject in all
respects to chapter 43.88 RCW, but no appropriation is required for
payments to financial institutions. Payments shall occur prior to
distribution of earnings set forth in subsection (4) of this section.
(4) Monthly, the state treasurer shall distribute the earnings
credited to the treasury income account. The state treasurer shall
credit the general fund with all the earnings credited to the treasury
income account except:
(a) The following accounts and funds shall receive their
proportionate share of earnings based upon each account's and fund's
average daily balance for the period: The capitol building
construction account, the Cedar River channel construction and
operation account, the Central Washington University capital projects
account, the charitable, educational, penal and reformatory
institutions account, the common school construction fund, the county
criminal justice assistance account, the county sales and use tax
equalization account, the data processing building construction
account, the deferred compensation administrative account, the deferred
compensation principal account, the department of retirement systems
expense account, the developmental disabilities community trust
account, the drinking water assistance account, the drinking water
assistance administrative account, the drinking water assistance
repayment account, the Eastern Washington University capital projects
account, the education construction fund, the education legacy trust
account, the election account, the emergency reserve fund, the energy
freedom account, The Evergreen State College capital projects account,
the federal forest revolving account, the freight mobility investment
account, the health services account, the public health services
account, the health system capacity account, the personal health
services account, the state higher education construction account, the
higher education construction account, the highway infrastructure
account, the high-occupancy toll lanes operations account, the
industrial insurance premium refund account, the judges' retirement
account, the judicial retirement administrative account, the judicial
retirement principal account, the local leasehold excise tax account,
the local real estate excise tax account, the local sales and use tax
account, the medical aid account, the mobile home park relocation fund,
the multimodal transportation account, the municipal criminal justice
assistance account, the municipal sales and use tax equalization
account, the natural resources deposit account, the oyster reserve land
account, the perpetual surveillance and maintenance account, the public
employees' retirement system plan 1 account, the public employees'
retirement system combined plan 2 and plan 3 account, the public
facilities construction loan revolving account beginning July 1, 2004,
the public health supplemental account, the Puyallup tribal settlement
account, the real estate appraiser commission account, the regional
transportation investment district account, the resource management
cost account, the rural Washington loan fund, the site closure account,
the small city pavement and sidewalk account, the special wildlife
account, the state employees' insurance account, the state employees'
insurance reserve account, the state investment board expense account,
the state investment board commingled trust fund accounts, the
supplemental pension account, the Tacoma Narrows toll bridge account,
the teachers' retirement system plan 1 account, the teachers'
retirement system combined plan 2 and plan 3 account, the tobacco
prevention and control account, the tobacco settlement account, the
transportation infrastructure account, the transportation partnership
account, the tuition recovery trust fund, the University of Washington
bond retirement fund, the University of Washington building account,
the volunteer fire fighters' and reserve officers' relief and pension
principal fund, the volunteer fire fighters' and reserve officers'
administrative fund, the Washington fruit express account, the
Washington judicial retirement system account, the Washington law
enforcement officers' and fire fighters' system plan 1 retirement
account, the Washington law enforcement officers' and fire fighters'
system plan 2 retirement account, the Washington school employees'
retirement system combined plan 2 and 3 account, the Washington state
health insurance pool account, the Washington state patrol retirement
account, the Washington State University building account, the
Washington State University bond retirement fund, the water pollution
control revolving fund, and the Western Washington University capital
projects account. Earnings derived from investing balances of the
agricultural permanent fund, the normal school permanent fund, the
permanent common school fund, the scientific permanent fund, and the
state university permanent fund shall be allocated to their respective
beneficiary accounts. All earnings to be distributed under this
subsection (4)(a) shall first be reduced by the allocation to the state
treasurer's service fund pursuant to RCW 43.08.190.
(b) The following accounts and funds shall receive eighty percent
of their proportionate share of earnings based upon each account's or
fund's average daily balance for the period: The aeronautics account,
the aircraft search and rescue account, the county arterial
preservation account, the department of licensing services account, the
essential rail assistance account, the ferry bond retirement fund, the
grade crossing protective fund, the high capacity transportation
account, the highway bond retirement fund, the highway safety account,
the motor vehicle fund, the motorcycle safety education account, the
pilotage account, the public transportation systems account, the Puget
Sound capital construction account, the Puget Sound ferry operations
account, the recreational vehicle account, the rural arterial trust
account, the safety and education account, the special category C
account, the state patrol highway account, the transportation 2003
account (nickel account), the transportation equipment fund, the
transportation fund, the transportation improvement account, the
transportation improvement board bond retirement account, and the urban
arterial trust account.
(5) In conformance with Article II, section 37 of the state
Constitution, no treasury accounts or funds shall be allocated earnings
without the specific affirmative directive of this section.
Sec. 10 RCW 43.84.092 and 2006 c 6 s 8 are each amended to read
as follows:
(1) All earnings of investments of surplus balances in the state
treasury shall be deposited to the treasury income account, which
account is hereby established in the state treasury.
(2) The treasury income account shall be utilized to pay or receive
funds associated with federal programs as required by the federal cash
management improvement act of 1990. The treasury income account is
subject in all respects to chapter 43.88 RCW, but no appropriation is
required for refunds or allocations of interest earnings required by
the cash management improvement act. Refunds of interest to the
federal treasury required under the cash management improvement act
fall under RCW 43.88.180 and shall not require appropriation. The
office of financial management shall determine the amounts due to or
from the federal government pursuant to the cash management improvement
act. The office of financial management may direct transfers of funds
between accounts as deemed necessary to implement the provisions of the
cash management improvement act, and this subsection. Refunds or
allocations shall occur prior to the distributions of earnings set
forth in subsection (4) of this section.
(3) Except for the provisions of RCW 43.84.160, the treasury income
account may be utilized for the payment of purchased banking services
on behalf of treasury funds including, but not limited to, depository,
safekeeping, and disbursement functions for the state treasury and
affected state agencies. The treasury income account is subject in all
respects to chapter 43.88 RCW, but no appropriation is required for
payments to financial institutions. Payments shall occur prior to
distribution of earnings set forth in subsection (4) of this section.
(4) Monthly, the state treasurer shall distribute the earnings
credited to the treasury income account. The state treasurer shall
credit the general fund with all the earnings credited to the treasury
income account except:
(a) The following accounts and funds shall receive their
proportionate share of earnings based upon each account's and fund's
average daily balance for the period: The capitol building
construction account, the Cedar River channel construction and
operation account, the Central Washington University capital projects
account, the charitable, educational, penal and reformatory
institutions account, the Columbia river basin water supply development
account, the common school construction fund, the county criminal
justice assistance account, the county sales and use tax equalization
account, the data processing building construction account, the
deferred compensation administrative account, the deferred compensation
principal account, the department of retirement systems expense
account, the developmental disabilities community trust account, the
drinking water assistance account, the drinking water assistance
administrative account, the drinking water assistance repayment
account, the Eastern Washington University capital projects account,
the education construction fund, the education legacy trust account,
the election account, the emergency reserve fund, the energy freedom
account, The Evergreen State College capital projects account, the
federal forest revolving account, the freight mobility investment
account, the health services account, the public health services
account, the health system capacity account, the personal health
services account, the state higher education construction account, the
higher education construction account, the highway infrastructure
account, the high-occupancy toll lanes operations account, the
industrial insurance premium refund account, the judges' retirement
account, the judicial retirement administrative account, the judicial
retirement principal account, the local leasehold excise tax account,
the local real estate excise tax account, the local sales and use tax
account, the medical aid account, the mobile home park relocation fund,
the multimodal transportation account, the municipal criminal justice
assistance account, the municipal sales and use tax equalization
account, the natural resources deposit account, the oyster reserve land
account, the perpetual surveillance and maintenance account, the public
employees' retirement system plan 1 account, the public employees'
retirement system combined plan 2 and plan 3 account, the public
facilities construction loan revolving account beginning July 1, 2004,
the public health supplemental account, the public works assistance
account, the Puyallup tribal settlement account, the real estate
appraiser commission account, the regional transportation investment
district account, the resource management cost account, the rural
Washington loan fund, the site closure account, the small city pavement
and sidewalk account, the special wildlife account, the state
employees' insurance account, the state employees' insurance reserve
account, the state investment board expense account, the state
investment board commingled trust fund accounts, the supplemental
pension account, the Tacoma Narrows toll bridge account, the teachers'
retirement system plan 1 account, the teachers' retirement system
combined plan 2 and plan 3 account, the tobacco prevention and control
account, the tobacco settlement account, the transportation
infrastructure account, the transportation partnership account, the
tuition recovery trust fund, the University of Washington bond
retirement fund, the University of Washington building account, the
volunteer fire fighters' and reserve officers' relief and pension
principal fund, the volunteer fire fighters' and reserve officers'
administrative fund, the Washington fruit express account, the
Washington judicial retirement system account, the Washington law
enforcement officers' and fire fighters' system plan 1 retirement
account, the Washington law enforcement officers' and fire fighters'
system plan 2 retirement account, the Washington public safety
employees' plan 2 retirement account, the Washington school employees'
retirement system combined plan 2 and 3 account, the Washington state
health insurance pool account, the Washington state patrol retirement
account, the Washington State University building account, the
Washington State University bond retirement fund, the water pollution
control revolving fund, and the Western Washington University capital
projects account. Earnings derived from investing balances of the
agricultural permanent fund, the normal school permanent fund, the
permanent common school fund, the scientific permanent fund, and the
state university permanent fund shall be allocated to their respective
beneficiary accounts. All earnings to be distributed under this
subsection (4)(a) shall first be reduced by the allocation to the state
treasurer's service fund pursuant to RCW 43.08.190.
(b) The following accounts and funds shall receive eighty percent
of their proportionate share of earnings based upon each account's or
fund's average daily balance for the period: The aeronautics account,
the aircraft search and rescue account, the county arterial
preservation account, the department of licensing services account, the
essential rail assistance account, the ferry bond retirement fund, the
grade crossing protective fund, the high capacity transportation
account, the highway bond retirement fund, the highway safety account,
the motor vehicle fund, the motorcycle safety education account, the
pilotage account, the public transportation systems account, the Puget
Sound capital construction account, the Puget Sound ferry operations
account, the recreational vehicle account, the rural arterial trust
account, the safety and education account, the special category C
account, the state patrol highway account, the transportation 2003
account (nickel account), the transportation equipment fund, the
transportation fund, the transportation improvement account, the
transportation improvement board bond retirement account, and the urban
arterial trust account.
(5) In conformance with Article II, section 37 of the state
Constitution, no treasury accounts or funds shall be allocated earnings
without the specific affirmative directive of this section.
NEW SECTION. Sec. 11 Sections 1 through 7 of this act expire
June 30, 2016. Any moneys in the energy freedom account on that date
and any moneys received pursuant to assistance made under this chapter
must be deposited in the general fund.
NEW SECTION. Sec. 12 Sections 2 through 7, 11, and 15 of this
act constitute a new chapter in Title
NEW SECTION. Sec. 13 Sections 8 and 10 of this act take effect
July 1, 2006.
NEW SECTION. Sec. 14 Section 9 of this act expires July 1, 2006.
NEW SECTION. Sec. 15 If any provision of this act or its
application to any person or circumstance is held invalid, the
remainder of the act or the application of the provision to other
persons or circumstances is not affected.