BILL REQ. #:  S-3955.2 

Read first time 01/20/12.   Referred to Committee on Energy, Natural Resources & Marine Waters.

     AN ACT Relating to energy efficient buildings; amending RCW 19.27A.140, 19.27A.150, and 43.330.360; adding a new section to chapter 19.27A RCW; adding a new section to chapter 80.28 RCW; and creating a new section.

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

NEW SECTION.  Sec. 1   The legislature finds that improving energy efficiency in structures is often the most cost-effective means to meet energy requirements. While there have been significant efficiency savings achieved in the state over the past quarter century, there remains enormous potential to achieve even greater savings. Although increased weatherization and more extensive efficiency improvements in residential, commercial, and public buildings provides many benefits, including reducing energy bills, avoiding the construction of costly new electricity generating facilities with associated climate and other environmental impacts, and creation of family-wage jobs in performing energy audits and improvements, the energy efficiency market also faces unique challenges that require a consistent and sustained effort by utilities, building owners, our burgeoning energy efficiency business sector, and the state. To achieve the full societal and financial potential of energy efficiency, the state shall actively develop innovative policy tools that support and encourage energy conservation efforts to achieve the goal identified by the Northwest power and conservation council of obtaining eighty percent of the region's future energy needs through 2030 with energy conservation.

NEW SECTION.  Sec. 2   A new section is added to chapter 19.27A RCW to read as follows:
     (1) Each utility providing gas or electric service to more than one thousand customers shall provide a statement of energy consumption data to each residential customer. At a minimum, the statement of energy consumption must include a year-over-year comparison for that customer's usage based upon meter data and a ranking of that customer's usage compared to that of one hundred similarly situated customers. The statement must be provided quarterly by any utility serving more than twenty-five thousand customers and twice annually by all other utilities. When a new customer account is created, that customer must receive the immediately preceding energy consumption statement provided to the previous occupant of the residence, unless the previous occupant has refused permission for the disclosure of such information.
     (2) Each utility providing gas or electric service that offers to provide an asset rating or preliminary energy audit for residential customers must collect and maintain energy consumption and energy efficiency information regarding the residential structure. The type of information required must be established by rule by the energy policy division of the department of commerce.
     (3) Each utility providing gas or electric service to more than twenty-five thousand customers shall, when requested by a customer in connection with offering the residence for sale, provide a preliminary energy audit. The energy audit must be provided at no cost to the customer and must include a minimum of three recommendations for reducing energy consumption specific to that residential structure.

Sec. 3   RCW 19.27A.140 and 2011 1st sp.s. c 43 s 245 are each amended to read as follows:
     The definitions in this section apply to RCW 19.27A.130 through 19.27A.190 ((and)), 19.27A.020, and section 2 of this act unless the context clearly requires otherwise.
     (1) "Benchmark" means the energy used by a facility as recorded monthly for at least one year and the facility characteristics information inputs required for a portfolio manager.
     (2) "Conditioned space" means conditioned space, as defined in the Washington state energy code.
     (3) "Consumer-owned utility" includes a municipal electric utility formed under Title 35 RCW, a public utility district formed under Title 54 RCW, an irrigation district formed under chapter 87.03 RCW, a cooperative formed under chapter 23.86 RCW, a mutual corporation or association formed under chapter 24.06 RCW, a port district formed under Title 53 RCW, or a water-sewer district formed under Title 57 RCW, that is engaged in the business of distributing electricity to one or more retail electric customers in the state.
     (4) "Cost-effectiveness" means that a project or resource is forecast:
     (a) To be reliable and available within the time it is needed; and
     (b) To meet or reduce the power demand of the intended consumers at an estimated incremental system cost no greater than that of the least-cost similarly reliable and available alternative project or resource, or any combination thereof.
     (5) "Council" means the state building code council.
     (6) "Embodied energy" means the total amount of fossil fuel energy consumed to extract raw materials and to manufacture, assemble, transport, and install the materials in a building and the life-cycle cost benefits including the recyclability and energy efficiencies with respect to building materials, taking into account the total sum of current values for the costs of investment, capital, installation, operating, maintenance, and replacement as estimated for the lifetime of the product or project.
     (7) "Energy consumption data" means the monthly amount of energy consumed by a customer as recorded by the applicable energy meter for the most recent twelve-month period.
     (8) "Energy service company" has the same meaning as in RCW 43.19.670.
     (9) "Enterprise services" means the department of enterprise services.
     (10) "Greenhouse gas" and "greenhouse gases" includes carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons, and sulfur hexafluoride.
     (11) "Investment grade energy audit" means an intensive engineering analysis of energy efficiency and management measures for the facility, net energy savings, and a cost-effectiveness determination.
     (12) "Investor-owned utility" means a corporation owned by investors that meets the definition of "corporation" as defined in RCW 80.04.010 and is engaged in distributing either electricity or natural gas, or both, to more than one retail electric customer in the state.
     (13) "Major facility" means any publicly owned or leased building, or a group of such buildings at a single site, having ten thousand square feet or more of conditioned floor space.
     (14) "National energy performance rating" means the score provided by the energy star program, to indicate the energy efficiency performance of the building compared to similar buildings in that climate as defined in the United States environmental protection agency "ENERGY STAR® Performance Ratings Technical Methodology."
     (15) "Net zero energy use" means a building with net energy consumption of zero over a typical year.
     (16) "Portfolio manager" means the United States environmental protection agency's energy star portfolio manager or an equivalent tool adopted by the department of enterprise services.
     (17) "Preliminary energy audit" means ((a quick)) an evaluation by an energy service company ((of)), utility, or third-party building performance contractor that provides basic information on the energy savings potential of a building that is less comprehensive than an investment grade energy audit.
     (18) "Qualifying public agency" includes all state agencies, colleges, and universities.
     (19) "Qualifying utility" means a consumer-owned or investor-owned gas or electric utility that serves more than twenty-five thousand customers in the state of Washington.
     (20) "Reporting public facility" means any of the following:
     (a) A building or structure, or a group of buildings or structures at a single site, owned by a qualifying public agency, that exceed ten thousand square feet of conditioned space;
     (b) Buildings, structures, or spaces leased by a qualifying public agency that exceeds ten thousand square feet of conditioned space, where the qualifying public agency purchases energy directly from the investor-owned or consumer-owned utility;
     (c) A wastewater treatment facility owned by a qualifying public agency; or
     (d) Other facilities selected by the qualifying public agency.
     (21) "State portfolio manager master account" means a portfolio manager account established to provide a single shared portfolio that includes reports for all the reporting public facilities.
     (22) "Asset rating" means a value that represents the energy use of a building or unit, based on modeled energy use under standardized weather and occupancy conditions, and adjusted to account for variances in energy consumption.

Sec. 4   RCW 19.27A.150 and 2010 c 271 s 306 are each amended to read as follows:
     (1) To the extent that funding is appropriated specifically for the purposes of this section, the department of commerce shall develop and implement a strategic plan for enhancing energy efficiency in and reducing greenhouse gas emissions from homes, buildings, districts, and neighborhoods. The strategic plan must be used to help direct the future code increases in RCW 19.27A.020, with targets for new buildings consistent with RCW 19.27A.160. The strategic plan will identify barriers to achieving net zero energy use in homes and buildings and identify how to overcome these barriers in future energy code updates and through complementary policies. Beginning with the strategic plan update due December 31, 2012, the strategic plan must analyze and provide recommendations for achieving greater energy efficiency for all types of buildings in the state.
     (2) The department of commerce must complete and release the strategic plan to the legislature and the council by December 31, 2010, and update the plan every three years.
     (3) The strategic plan must include recommendations to the council on energy code upgrades. At a minimum, the strategic plan must:
     (a) Consider development of aspirational codes separate from the state energy code that contain economically and technically feasible optional standards that could achieve higher energy efficiency for those builders that elected to follow the aspirational codes in lieu of or in addition to complying with the standards set forth in the state energy code;
     (b) Determine the appropriate methodology to measure achievement of state energy code targets using the United States environmental protection agency's target finder program or equivalent methodology;
     (c) Address the need for enhanced code training and enforcement;
     (d) Include state strategies to support research, demonstration, and education programs designed to achieve a seventy percent reduction in annual net energy consumption as specified in RCW 19.27A.160 and enhance energy efficiency and on-site renewable energy production in buildings;
     (e) Recommend incentives, education, training programs and certifications, particularly state-approved training or certification programs, joint apprenticeship programs, or labor-management partnership programs that train workers for energy-efficiency projects to ensure proposed programs are designed to increase building professionals' ability to design, construct, and operate buildings that will meet the seventy percent reduction in annual net energy consumption as specified in RCW 19.27A.160;
     (f) Analyze the ability of each electric utility to offer an asset rating or investment grade energy audit for a residential building when required by a customer or when requested by the buyer or seller at the time the building is sold or offered for sale. The strategic plan must analyze the benefits of performing the investment grade energy audit or asset rating as well as recommendations to overcome any statutory, regulatory, financial, or other barriers to providing the investment grade energy audit or asset rating;
     (g) Address barriers for utilities to serve net zero energy homes and buildings and policies to overcome those barriers;
     (((g))) (h) Address the limits of a prescriptive code in achieving net zero energy use homes and buildings and propose a transition to performance-based codes;
     (((h))) (i) Identify financial mechanisms such as tax incentives, rebates, and innovative financing to motivate energy consumers to take action to increase energy efficiency and their use of on-site renewable energy. Such incentives, rebates, or financing options may consider the role of government programs as well as utility-sponsored programs;
     (((i))) (j) Address the adequacy of education and technical assistance, including school curricula, technical training, and peer-to-peer exchanges for professional and trade audiences;
     (((j))) (k) Develop strategies to develop and install district and neighborhood-wide energy systems that help meet net zero energy use in homes and buildings;
     (((k))) (l) Identify costs and benefits of energy efficiency measures on residential and nonresidential construction; and
     (((l))) (m) Investigate methodologies and standards for the measurement of the amount of embodied energy used in building materials.
     (4) The department of commerce and the council shall convene a work group with the affected parties to inform the initial development of the strategic plan.

Sec. 5   RCW 43.330.360 and 2009 c 379 s 209 are each amended to read as follows:
     (1) The legislature finds that the state bond authorities have capacities that can be applied to financing energy efficiency projects for their respective eligible borrowers: Washington economic development finance authority for industry; Washington state housing finance commission for single-family and multifamily housing, commercial properties, agricultural properties, and nonprofit facilities; Washington higher education facilities authority for private, nonprofit higher education; and Washington health care facilities authority for hospitals and all types of health clinics.
     (2)(a) Subject to federal requirements, the state bond authorities may accept and administer an allocation of the state's share of the federal energy efficiency funding for designing energy efficiency finance loan products and for developing and operating energy efficiency finance programs. The state bond authorities shall coordinate with the department on the design of the bond authorities' program.
     (b) The department may make allocations of the federal funding to the state bond authorities and may direct and administer funding for outreach, marketing, and delivery of energy services to support the programs by the state bond authorities.
     (c) The legislature authorizes a portion of the federal energy efficiency funds to be used by the state bond authorities for credit enhancements and reserves for such programs.
     (3) The Washington state housing finance commission may:
     (a) Issue revenue bonds as the term "bond" is defined in RCW 43.180.020 for the purpose of financing loans for energy efficiency and renewable energy improvement projects in accordance with RCW 43.180.150;
     (b) Establish eligibility criteria for financing that will enable it to choose applicants who are likely to repay loans made or acquired by the commission and funded from the proceeds of federal funds or commission bonds; and
     (c) Participate fully in federal and other governmental programs and take such actions as are necessary and consistent with chapter 43.180 RCW to secure to itself and the people of the state the benefits of programs to promote renewable energy technologies and energy efficiency ((and renewable energy technologies)), including but not limited to educational programs and programs that encourage the recognition of energy efficient features in real estate transactions.

NEW SECTION.  Sec. 6   A new section is added to chapter 80.28 RCW to read as follows:
     A gas company or electric company regulated under this chapter may provide energy consumption usage information based solely upon meter records unless the customer opts to refuse permission to allow the disclosure of this information. The information provided must be consistent with that required under section 2 of this act. Each company shall provide notice to customers of the opportunity to opt out of this disclosure. Companies shall allow sixty days following the notification to the customer before disclosing energy consumption data and must provide a written annual notice to customers of the opportunity to refuse permission to disclose this information.

NEW SECTION.  Sec. 7   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.