HOUSE BILL REPORT

HB 1365

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

Majority Report: The substitute bill be substituted therefor and the substitute bill do pass. Signed by 14 members: Representatives Upthegrove, Chair; Rolfes, Vice Chair; Short, Ranking Minority Member; Harris, Assistant Ranking Minority Member; Crouse, Jacks, Jinkins, Morris, Moscoso, Nealey, Pearson, Takko, Taylor and Tharinger.

Background:

Energy Independence Act.

In 2006 the people approved the Energy Independence Act (Initiative 937), which requires qualifying electric utilities with 25,000 or more customers to meet targets for using and conserving eligible renewable energy resources.

Initiative 937 provides for additional credit toward meeting the renewable acquisition target. Qualifying electric utilities may count distributed generation at double the facilities output. Distributed generation means an eligible renewable resource where the generation facility has a generating capacity of not more than five megawatts.

Average Megawatt.

An average megawatt, sometimes abbreviated aMW, is the amount of electricity produced by the continuous production of one megawatt over a period of one year.

–––––––––––––––––––––––––––––––––

Summary of Substitute Bill:

The definition of distributed generation is expanded to include solar photovoltaic generation at a facility located in Washington that is capable of generating not more than 20 average megawatts in a calendar year, has either a siting certification from the Energy Facility Site Evaluation Council or a land use permit from a local government by the effective date of this act, and has installed at the facility a majority of solar modules manufactured in Washington.

Solar module means the smallest non-divisible, self-contained, physical structure housing interconnected photovoltaic cells and providing a single direct current electrical output.

Substitute Bill Compared to Original Bill:

The substitute bill keeps the current definition of distributed generation, and adds to the definition a provision that includes certain solar photovoltaic generation as a form of distributed generation.

Staff Summary of Public Testimony:

(In support) This bill represents a change in law that will allow a major solar project to go forward in Eastern Washington. It is a time sensitive issue because a federal tax credit is scheduled to expire at the end of this year. The proposed 75 megawatt Teanaway Solar Reserve project needs the bill. There are potentially 250 construction jobs and 30 permanent jobs at stake. This would be one of the largest solar projects in the United States. If state policymakers want other diverse types of renewables, besides large scale wind projects, then we need the policies found in the bill. Currently, the Energy Independence Act would allow the Teanaway Solar Reserve project to receive one renewable energy credit for each megawatt-hour it produces. The bill would allow the Teanaway Solar Reserve project to receive twice the renewable energy credits for each megawatt-hour produced by the facility. These additional credits will allow this project to be marketable for a power purchase agreement with an electric utility. This bill is good for employment in Kittitas County. A number of these jobs will be union jobs.

(Opposed) This is not the right time to adjust Initiative 937. This definition of distributed generation was established to help small scale generation, not this size of a project. Rather than modifying the definition of distributed generation, it would be worth considering perhaps a 1 percent solar power carve out within Initiative 937.

Persons Testifying: (In support) Representative Eddy, prime sponsor; Al Adrich and Howard Trott, Teanaway Solar Reserve; Mark Swanson, Potelco; and Bob Gunther, International Brotherhood of Electrical Workers 77.

(Opposed) Clifford Traisman, Renewable Northwest Project, Washington Environmental Council and Washington Conservation Voters; Danielle Dixon, Northwest Energy Coalition; Miguel Perez-Gibson, Climate Solutions; and Gerald Steel, Washington Growthwatch.