BILL REQ. #:  H-2777.1 

READ FIRST TIME 3/5/07.   

     AN ACT Relating to purchasing of renewable energy by public entities; adding a new section to chapter 43.19 RCW; adding a new chapter to Title 43 RCW; and creating a new section.

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

NEW SECTION.  Sec. 1   The legislature finds and declares that increasing the state's investment in renewable energy resources will provide a number of public benefits, including reducing greenhouse gas emissions and other pollutants, increasing energy diversity and security, and furthering economic development opportunities, particularly in emerging energy technologies. Therefore, to further these important goals, the legislature intends to establish renewable energy targets for state agencies that will gradually increase the state's reliance on renewable energy resources, in the hope that the state can be a leader in investing in clean, renewable energy technologies.

NEW SECTION.  Sec. 2   The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
     (1) "Department" means the department of community, trade, and economic development.
     (2) "Director" means the director of the department of community, trade, and economic development.
     (3) "Eligible renewable energy resource" has the same meaning as in RCW 19.285.030.
     (4) "Pacific Northwest" means the states of Alaska, Idaho, Montana, Oregon, and Washington, and the Canadian provinces of Alberta and British Columbia.
     (5) "Renewable energy credit" has the same meaning as in RCW 19.285.030.
     (6) "State agency" means any state board, commission, bureau, committee, department, institution, division, or tribunal in the legislative, executive, or judicial branch of state government, and includes all elective offices, the state legislature, institutions of higher education created and supported by state government, and courts that are fully supported by state government. It does not include political subdivisions; units of local government; superior, district, and municipal courts; school districts; municipal corporations; quasi-municipal corporations; special purpose districts; or local service districts.
     (7) "Sustainable energy project" means a project located at a state facility that utilizes fuel cells, high-efficiency cogeneration with an efficiency level above seventy percent, and other emerging energy technologies that reduce air pollution from existing technologies and have significant potential for commercialization.

NEW SECTION.  Sec. 3   A new section is added to chapter 43.19 RCW to read as follows:
     (1) Except as provided in subsection (2) of this section, each state agency shall meet the following electricity consumption targets:
     (a) The eligible renewable energy resource percentage of total annual electric usage is at least twenty percent by January 1, 2010;
     (b) The eligible renewable energy resource percentage of total annual electric usage is at least sixty percent by January 1, 2012; and
     (c) The eligible renewable energy resource percentage of total annual electric usage is one hundred percent by January 1, 2014.
     (2) These renewable energy targets shall not apply if the department of general administration is unable to obtain enough renewable energy resources or renewable energy credits from a facility in the state or in the Pacific Northwest region to satisfy the targets.
     (3) In acquiring resources to meet these renewable energy targets, the director shall work with the department of general administration. The director will identify for the department of general administration the proportional amount of renewable energy resources that are already included as part of each state agency's electric utility's base resources, and the additional amount of renewable energy resources or renewable energy credits necessary to satisfy the targets established in subsection (1) of this section.
     (4) In meeting the renewable energy targets, a state agency may include the following resources:
     (a) A state agency's proportionate amount of renewable energy resources that are included in their electric utility's base resources;
     (b) Direct purchases of renewable energy credits from a provider other than the utility program;
     (c) Eligible renewable energy resources; or
     (d) The efficiency savings or reduction in carbon dioxide emissions that results from a sustainable energy project.
     (5) The department may use the annual fuel mixture disclosure data submitted by all utilities in the state under chapter 19.29A or 19.285 RCW to determine the amount of eligible renewable energy resources in their utility's base load.
     (6) The department of general administration is authorized to negotiate and purchase on behalf of state agencies renewable energy credits. The department of general administration shall give priority to renewable energy credits generated in Washington state. If no renewable energy credits are available in the state, the department of general administration may purchase renewable energy credits from the Pacific Northwest region. The department of general administration shall retire any renewable energy credit purchased to satisfy a target.

NEW SECTION.  Sec. 4   (1) The department shall establish a clear sky program to encourage the development of sustainable energy technologies such as fuel cells, high-efficiency cogeneration, and other emerging energy technologies that significantly reduce air pollution. The director may establish policies and procedures necessary for processing, reviewing, and approving loan applications made under this chapter.
     (2) The department, in conjunction with the department of general administration, may submit a request for proposals for potential sustainable energy projects.
     (3) The director may only approve a loan application submitted by a state agency for a sustainable energy project if the project meets the following criteria:
     (a) The project will use fuel cells, high-efficiency cogeneration, or an emerging energy technology that significantly reduces air pollution;
     (b) The project is located at a state facility;
     (c) The project does not require continued state support; and
     (d) The project will be owned by the state once the loan amount has been satisfied.
     (4) The director shall prioritize applications based on the following criteria:
     (a) The extent to which the project will result in carbon dioxide reduction;
     (b) The extent to which the project will result in economic benefits for the citizens of the state; and
     (c) The extent to which the project demonstrates an emerging technology and assists that technology in moving towards commercialization.
     (5) The director may award a loan application to a state agency that meets the eligibility criteria under this section.
     (6) The director shall enter into agreements with approved state agencies to fix the terms and rates of the loan award. The agreement shall include provisions to protect the state's investment, including a requirement that the state agency enter into contracts with any partners that may be involved in the use of any funds provided under this program, including services, facilities, infrastructure, or equipment. Contracts with any partners shall become part of the application record.
     (7) Any energy efficiency savings generated through operations by a loan recipient under this section must be used for loan payments until the loan award has been satisfied.

NEW SECTION.  Sec. 5   The clean streams and clear sky subaccount is created as a subaccount of the energy freedom account. All receipts from appropriations made to the clean streams and clear sky subaccount shall be deposited into the subaccount. Expenditures from the subaccount may be used only for projects and activities authorized under this chapter and under the clean streams program established in chapter . . . (Proposed Substitute House Bill No. 1035 (H-2146.3/07)), Laws of 2007. In no circumstances shall more than fifty percent of the moneys in the subaccount be used for a single program or technology.

NEW SECTION.  Sec. 6   Sections 2, 4, and 5 of this act constitute a new chapter in Title 43 RCW.