BILL REQ. #: H-5419.1
| State of Washington | 60th Legislature | 2008 Regular Session |
READ FIRST TIME 02/06/08.
AN ACT Relating to the purchasing of fuel; adding new sections to chapter 35.58 RCW; adding a new section to chapter 43.19 RCW; adding a new section to chapter 47.60 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
units of state and local government purchasing large amounts of fuel in
the regular course of performing their function should have substantial
flexibility in acquiring fuel to obtain predictability and control of
fuel costs, and to maximize the use of renewable fuels. The
legislature hereby declares its intent to allow certain units of
government that regularly purchase large amounts of fuel to explore and
implement strategies that are designed to reduce the overall cost of
fuel and mitigate the impact of market fluctuations and pressure on
both short-term and long-term fuel costs.
NEW SECTION. Sec. 2 A new section is added to chapter 35.58 RCW
to read as follows:
(1) In performing the metropolitan transportation function,
metropolitan municipal corporations and counties that have assumed the
rights, powers, functions, and obligations of metropolitan municipal
corporations under chapter 36.56 RCW may explore and implement
strategies designed to reduce the overall cost of fuel and mitigate the
impact of market fluctuations and pressure on both short-term and long-term fuel costs. These strategies may include, but are not limited to,
futures contracts, hedging, swap transactions, option contracts,
costless collars, and long-term storage.
(2) Metropolitan municipal corporations and counties that have
assumed the rights, powers, functions, and obligations of metropolitan
municipal corporations under chapter 36.56 RCW that choose to implement
the strategies authorized in this section must submit periodic reports
to the department of general administration's office of state
procurement on the status of any such implemented strategies. Each
report must include a description of each contract established to
mitigate fuel costs, the amounts of fuel covered by the contracts, and
the cost mitigation results. The first report shall be submitted
within one year of implementation.
NEW SECTION. Sec. 3 A new section is added to chapter 43.19 RCW
to read as follows:
The director of general administration, through the office of state
procurement, shall submit an annual report to the transportation
committees of the house of representatives and senate that includes,
for each entity authorized to participate in cost reduction strategies,
a description of each contract established to mitigate fuel costs, the
amounts of fuel covered by the contracts, the cost mitigation results,
and any related recommendations. The first report shall be submitted
on January 15, 2009, and annually thereafter on January 15th.
NEW SECTION. Sec. 4 A new section is added to chapter 35.58 RCW
to read as follows:
If metropolitan municipal corporations and counties that have
assumed the rights, powers, functions, and obligations of metropolitan
municipal corporations under chapter 36.56 RCW choose to implement the
strategies authorized in section 2 of this act, the state is not liable
for any financial losses that may be incurred as the result of
participating in such strategies.
NEW SECTION. Sec. 5 A new section is added to chapter 47.60 RCW
to read as follows:
In performing the function of operating its ferry system, the
department may, after consultation with the department of general
administration's office of state procurement, explore and implement
strategies designed to reduce the overall cost of fuel and mitigate the
impact of market fluctuations and pressure on both short-term and long-term fuel costs. These strategies may include, but are not limited to,
futures contracts, hedging, swap transactions, option contracts,
costless collars, and long-term storage. The department shall
periodically submit a report to the office of state procurement on the
status of any such implemented strategies, including cost mitigation
results, and shall submit an initial report within one year of
implementation.