BILL REQ. #:  S-0900.1 

Read first time 01/26/11.   Referred to Committee on Environment, Water & Energy.

     AN ACT Relating to creating the clean energy partnership; amending RCW 28B.38.020 and 28B.38.070; reenacting and amending RCW 43.325.040; adding a new chapter to Title 43 RCW; and providing an expiration date.

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

NEW SECTION.  Sec. 1   The legislature finds that a dynamic, public-private clean energy partnership is needed to implement the clean energy leadership council's plan. The partnership should be highly competent, flexible, and have the ability to provide leadership and coordinate projects with a range of public and private entities.
     The legislature finds that the Washington technology center and the Spokane intercollegiate research and technology institute have the optimal flexibility, statutory authorities, and administrative capabilities required to support a clean energy partnership and to achieve the performance metrics and outcomes of a clean energy partnership.
     It is the intent of the legislature to establish a clean energy partnership as a joint endeavor between the Washington technology center and Spokane intercollegiate research and technology institute. The clean energy partnership will have lead responsibility for developing and managing state programs and funding initiatives related to expanding the clean energy sector in Washington state, coordinating high-leverage clean energy initiatives, and implementing the clean energy leadership council's recommendations. Primary responsibility for developing and setting state energy policy should remain with the state energy office and other state agencies as provided in statute.

NEW SECTION.  Sec. 2   The Washington clean energy partnership is created. The partnership shall develop, implement, and manage programs and funding initiatives related to expanding the clean energy sector in Washington. The partnership shall coordinate clean energy initiatives and implement the clean energy leadership council's recommendations provided in the Washington state clean energy leadership plan report.

NEW SECTION.  Sec. 3   The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
     (1) "Committee" means the clean energy sector advisory committee.
     (2) "Director" means the director of the partnership.
     (3) "Partnership" means the Washington clean energy partnership.

NEW SECTION.  Sec. 4   (1) The partnership shall be administered jointly by the Washington technology center and the Spokane intercollegiate research and technology institute or successor agency.
     (2)(a) The executive directors of the Washington technology center and Spokane intercollegiate research and technology institute shall, with the approval of the clean energy sector advisory committee created in section 6 of this act, select and jointly appoint an executive director to manage the partnership.
     (b) The executive director shall have complete charge of and supervisory powers over the partnership.
     (3) The executive director shall consult with the committee created in section 6 of this act.
     (4) State and federal funds, grants, private gifts, or contributions to further the purpose of the Washington clean energy partnership shall be appropriated to the Spokane intercollegiate research and technology institute or its successor agency and deposited into the Washington clean energy partnership fund created in RCW 28B.38.020.
     (5) The Spokane intercollegiate research and technology institute shall perform, in conjunction with the Washington technology center under a performance contract, the work of the partnership.

NEW SECTION.  Sec. 5   (1) The partnership shall, as funds are available:
     (a) Implement the strategy and recommendations of the clean energy leadership council including implementing the first three market- driving initiatives identified by the council in its 2010 report:
     (i) Energy efficiency and green buildings, including smart grid;
     (ii) Integration of renewable energy, including smart grid; and
     (iii) Biomass and biofuels;
     (b) Assess periodically other potential opportunities and add market-driving initiatives if justified by comprehensive analysis;
     (c) Serve as the primary point of contact and lead entity in the state for developing and coordinating clean energy-related initiatives and funding programs targeted at expanding the clean energy sector;
     (d) Secure a minimum of fifty percent nonstate funds for projects undertaken by the partnership, however nonstate funds or moneys that the partnership is directed to manage that have different matching contribution requirements are not subject to this subsection (1)(d);
     (e) Use state funding to demonstrate state commitment, serve as a catalyst for attracting matching funding from multiple sources, and stimulate collaborative projects among other purposes;
     (f) Submit an annual report to the legislature and the governor by November 1st with recommendations on policy alignment and regulatory barriers that limit the growth of clean energy in Washington as well as a discussion of best practices encountered in implementing the market-driving initiatives;
     (g) Use all existing administrative capabilities and unique authorities of Spokane intercollegiate research and technology institute and Washington technology center to facilitate innovative, effective public-private partnerships and to help expand innovative companies;
     (h) Work with the public and private utilities and the utilities and transportation commission to align state investments, policies, and the work of the partnership, with the operations of utilities, including investor-owned utilities regulated by the utilities and transportation commission;
     (i) Work with the legislature to establish a long-term, stable funding strategy appropriate for supporting the partnership;
     (j) Track, identify, and create opportunities to attract federal and other nonstate funding, and make recommendations for increasing Washington's success rate in receiving federal and other nonstate funds;
     (k) Work with regional public and private utilities to identify a process for understanding and prioritizing their goals and make recommendations for aligning, coordinating, and leveraging the partnership's investments with the needs of regional utilities in ways that help accelerate the growth of clean energy jobs and technology in the region;
     (l) Participate fully in federal and other governmental programs and take such actions as are necessary and consistent with this chapter to secure for the partnership and the people of the state the benefits of those programs and to meet their requirements; and
     (m) Conduct analyses as necessary to identify and communicate to policymakers the best opportunities for Washington to maintain and expand the clean energy sector in Washington state.
     (2) After the effective date of this section, existing programs and initiatives targeted at expanding the clean energy sector, including the energy freedom program in chapter 43.325 RCW, state energy office funds, and applicable federal state energy program funds directed to support the clean energy sector shall be aligned and strategically managed to support the partnership. The partnership shall approve any expenditures or grants from these programs. This does not apply to funds as carried out by the state energy policy. Within two years, any funds associated with expanding the clean energy sector, as determined by the partnership, must be moved to the Washington clean energy partnership fund created in RCW 28B.38.070.
     (3) Existing policy and regulatory functions of the state energy office shall remain with the state energy office.

NEW SECTION.  Sec. 6   (1) The clean energy sector advisory committee is created. The director of the partnership shall appoint up to twenty members. A majority of the clean energy sector advisory committee must consist of representatives from companies or organizations that are directly involved with developing, deploying, or operating clean energy solutions. The committee members shall select a member to serve as its chair. The chair of the committee shall serve on the board of the Spokane intercollegiate research and technology institute.
     (2) Duties of the committee include:
     (a) Approving the appointment of the executive director of the partnership;
     (b) Approving the annual operating budget of the partnership;
     (c) Providing strategic guidance to the executive director on the needs of the clean energy sector; and
     (d) Establishing priorities for the use of partnership funds, including approving the allocation of funds to projects.

Sec. 7   RCW 28B.38.020 and 1998 c 344 s 10 are each amended to read as follows:
     (1) The institute shall be administered by the board of directors.
     (2) The board shall consist of the following members:
     (a) Nine members of the general public. Of the general public membership, at least six shall be individuals who are associated with or employed by technology-based or manufacturing-based industries and have broad business experience and an understanding of high technology;
     (b) The executive director of the Washington technology center or the director's designee;
     (c) The provost of Washington State University or the provost's designee;
     (d) The provost of Eastern Washington University or the provost's designee;
     (e) The provost of Central Washington University or the provost's designee;
     (f) The provost of the University of Washington or the provost's designee;
     (g) An academic representative from the Spokane community colleges;
     (h) One member from Gonzaga University; ((and))
     (i) One member from Whitworth ((College)) University; and
     (j) The chair of the clean energy sector advisory committee created in section 6 of this act.
     (3) The term of office for each board member, excluding the executive director of the Washington technology center, the provosts of Washington State University, Eastern Washington University, Central Washington University, ((and)) the University of Washington, and the chair of the clean energy sector advisory committee, shall be three years. The executive director of the institute shall be an ex officio, nonvoting member of the board. Board members shall be appointed by the governor. Initial appointments shall be for staggered terms to ensure the long-term continuity of the board. The board shall meet at least quarterly.
     (4) The duties of the board include:
     (a) Developing the general operating policies for the institute;
     (b) Appointing the executive director of the institute;
     (c) Approving the annual operating budget of the institute;
     (d) Establishing priorities for the selection and funding of research projects that guarantee the greatest potential return on the state's investment;
     (e) Approving and allocating funding for ((research)) projects conducted by the institute;
     (f) In cooperation with the ((department of community, trade, and economic development)) Washington clean energy partnership, developing a biennial work plan and five-year strategic plan for the institute that ((are)) aligns institute operations with the partnership consistent with the statewide technology development and commercialization goals;
     (g) Coordinating with public, independent, and private institutions of higher education, and other participating institutions of higher education in the development of training, research, and development programs to be conducted at the institute that are targeted to meet industrial needs;
     (h) Assisting the department of ((community, trade, and economic development)) commerce in the department's efforts to develop state science and technology public policies and coordinate publicly funded programs;
     (i) Reviewing annual progress reports on funded research projects; and
     (j) Providing an annual report to the governor and the legislature detailing the activities and performance of the institute((; and
     (k) Submitting annually to the department of community, trade, and economic development an updated strategic plan and a statement of performance measured against the mission, roles, and contractual obligations of the institute)).
     (5) The board may enter into contracts to fulfill its responsibilities and purposes under this chapter.

Sec. 8   RCW 28B.38.070 and 1998 c 344 s 15 are each amended to read as follows:
     (1) The board may receive and expend federal funds and any private gifts or grants to further the purpose of the institute. The funds are to be expended in accordance with federal and state law and any conditions contingent in the grant of those funds.
     (2) The Washington clean energy partnership fund is created in the custody of the state treasurer to receive state and federal funds, grants, private gifts, or contributions to further the purpose of the Washington clean energy partnership. Only the executive director of the Washington clean energy partnership or the executive director's designee may authorize expenditures from the account. The account is subject to allotment procedures under chapter 43.88 RCW, but an appropriation is not required for expenditures.

Sec. 9   RCW 43.325.040 and 2009 c 564 s 942 and 2009 c 451 s 5 are each reenacted and amended to read as follows:
     (1) 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 the energy freedom account must be deposited into the account. Moneys in the account may be spent only after appropriation and approval by the Washington clean energy partnership. Expenditures from the account may be used only for financial assistance for further funding for projects consistent with this chapter or otherwise authorized by the legislature or Washington clean energy partnership.
     (2) The green energy incentive account is created in the state treasury as a subaccount of the energy freedom account. All receipts from appropriations made to the green energy incentive account shall be deposited into the account, and may be spent only after appropriation and approval by the Washington clean energy partnership. Expenditures from the account may be used only for:
     (a) Refueling projects awarded under this chapter;
     (b) Pilot projects for plug-in hybrids, including grants provided for the electrification program set forth in RCW 43.325.110; and
     (c) Demonstration projects developed with state universities as defined in RCW 28B.10.016 and local governments that result in the design and building of a hydrogen vehicle fueling station.
     (3)(a) The energy recovery act account is created in the state treasury. State and federal funds may be deposited into the account and any loan payments of principal and interest derived from loans made from the energy recovery act account must be deposited into the account. Moneys in the account may be spent only after appropriation and approval by the Washington clean energy partnership.
     (b) Expenditures from the account may be used only for loans, loan guarantees, and grants that encourage the establishment of innovative and sustainable industries for renewable energy and energy efficiency technology, including but not limited to:
     (i) Renewable energy projects or programs that require interim financing to complete project development and implementation;
     (ii) Companies with innovative, near-commercial or commercial, clean energy technology; ((and))
     (iii) Energy efficiency technologies that have a viable repayment stream from reduced utility costs; and
     (iv) Initiatives approved by the Washington clean energy partnership.
     (c) The director shall establish policies and procedures for processing, reviewing, and approving applications for funding under this section. When developing these policies and procedures, the department must consider the clean energy leadership strategy developed under section 2, chapter 318, Laws of 2009.
     (d) The director shall enter into agreements with approved applicants to fix the term and rates of funding provided from this account.
     (e) The policies and procedures of this subsection (3) do not apply to assistance awarded for projects under RCW 43.325.020(3).
     (4) Any state agency receiving funding from the energy freedom account is prohibited from retaining greater than three percent of any funding provided from the energy freedom account for administrative overhead or other deductions not directly associated with conducting the research, projects, or other end products that the funding is designed to produce unless this provision is waived in writing by the director.
     (5) Any university, institute, or other entity that is not a state agency receiving funding from the energy freedom account is prohibited from retaining greater than fifteen percent of any funding provided from the energy freedom account for administrative overhead or other deductions not directly associated with conducting the research, projects, or other end products that the funding is designed to produce.
     (6) Subsections (2), (4), and (5) of this section do not apply to assistance awarded for projects under RCW 43.325.020(3).
     (((7) During the 2009-2011 fiscal biennium, the legislature may transfer from the energy freedom account to the state general fund such amounts as reflect the excess fund balance of the account.))

NEW SECTION.  Sec. 10   Sections 1 through 6 of this act constitute a new chapter in Title 43 RCW.

NEW SECTION.  Sec. 11   Section 9 of this act expires June 30, 2016.