BILL REQ. #: H-2884.1
State of Washington | 63rd Legislature | 2014 Regular Session |
Prefiled 12/02/13. Read first time 01/13/14. Referred to Committee on Technology & Economic Development.
AN ACT Relating to creating the rural Washington natural gas access and investment account; adding a new chapter to Title 80 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 the availability
of natural gas is critical to economic development initiatives in
underserved and rural parts of Washington. The legislature further
finds that extending existing natural gas lines and upgrading other
existing natural gas infrastructure will improve access to natural gas
and lead to more economic development, greater job opportunity, lower
prices for consumers, and greater revenue for the state. The
legislature intends to provide incentives for the extension of existing
natural gas lines and the improvement of other existing natural gas
infrastructure for the purpose of economic development and public
safety and welfare in rural and underserved areas of the state.
NEW SECTION. Sec. 2 The definitions in this section apply
throughout this chapter unless the context clearly requires otherwise.
(1) "Account" means the rural Washington natural gas access and
investment account created in section 7 of this act.
(2) "Certificate" means the certificate obtained from the
commission as required under RCW 80.28.190.
(3) "Commission" means the utilities and transportation commission.
(4) "Construction" means the construction, building, acquisition,
alteration, reconstruction, improvement, enlargement, or extension of
an eligible project; the inspection and supervision thereof; and the
engineering, architectural, legal, fiscal, and economic investigations
and studies, surveys, designs, plans, working drawings, specifications,
procedures, and other actions necessary thereto.
(5) "Eligible costs" means that portion of an eligible project that
may qualify for funding through the account.
(6) "Eligible project" means a project intended to extend natural
gas supply to rural or underserved areas of the state for economic
development purposes by the construction of natural gas distribution
facilities. A project is not considered an eligible project if its
completion would result in a bypass or risk of bypass to any gas
company. A bypass or risk of bypass exists if the completed project
displaces any other gas company's gas load or gas load opportunity,
unless that gas company chooses not to exercise the gas load
opportunity.
(7) "Financing agreement" means an agreement between the commission
and one or more recipients meeting the requirements of this chapter.
(8) "Gas company" has the same meaning as defined in RCW 80.04.010.
(9) "Natural gas distribution facility" means, but is not limited
to, any main line, service line, and appurtenant facility constructed
under this chapter.
(10) "Recipient" means a gas company or other entity deemed
eligible, which is empowered to construct a portion of the eligible
project, or any two or more entities that are acting jointly and with
the prior consent of the gas company holding a certificate in the area
in which the proposed project is located.
NEW SECTION. Sec. 3 (1) The commission shall establish
procedures, which shall include, but not be limited to: (a) Criteria
and standards for selection of eligible projects; (b) determining the
amount of financial assistance available to a recipient for an eligible
project; and (c) the manner in which funding is applied and
distributed.
(2) The commission shall provide assistance to support the intent
of this chapter and make available to eligible recipients funding for
the construction of natural gas distribution facilities in accordance
with the provisions of this chapter or any other provision of law, as
determined by the commission.
NEW SECTION. Sec. 4 (1) The commission shall establish an
application process for entities to request project funding from the
account.
(2) The commission must review, with the advice of gas companies
and in consultation with any state agency or entity which in the
discretion of the commission it should wish to consult, applications
for funding of potentially eligible projects. Review of the
applications must include, but is not limited to:
(a) An assessment of the potential number of customers who would
acquire the ability to purchase natural gas supply;
(b) A demonstration that the proposed affected area is either
underserved or has seen a lack of appropriate infrastructure
improvement for any period of time;
(c) An independent environmental review, which outlines the
potentially affected natural resources throughout the area of the
project, and a specific plan to avoid environmental health and safety
risks surrounding that area during construction;
(d) Demonstration of the total project cost, along with
justification for the cost, including, but not limited to, the
applicant's consideration of using materials sourced within the state
as well as the most environmentally sound products during construction.
No provision in this section may be deemed to require applicants to, or
limit applicants from, purchasing specific materials; and
(e) An assessment of compliance with state and federal laws, rules,
and regulations.
(3) No provision of this chapter may be deemed to require a gas
company holding a certificate in or historically serving the area in
which the proposed project is located to undertake a proposed project.
(4) For all eligible recipients, provisions under this chapter may
be combined with existing tax credits, exemptions, and other incentives
that support natural gas infrastructure, including, but not limited to,
eligible recipients undergoing natural gas service expansion and
projects affecting the retention of jobs in the state.
NEW SECTION. Sec. 5 (1) Prior to the disbursement of any money
from the account, the commission and any recipient having the power to
contract with respect to the financing of an eligible project shall
enter into a grant disbursement agreement that provides for the
construction plan of the eligible project. The commission shall
prepare each agreement, which must include, but is not limited to, the
following provisions:
(a) A detailed description of the eligible project and the total
project cost;
(b) The right of the commission to approve any contracts for
funding pursuant to the agreement and to inspect and review the
construction of eligible projects to the extent authorized by
applicable law and rule;
(c) Remedies in the event of a recipient's failure to comply with
the terms of an agreement;
(d) Any other approvals required by state or federal law and other
conditions as the commission determines necessary or desirable; and
(e) An agreement by the recipient to:
(i) Proceed expeditiously with and complete the eligible project in
accordance with approved plans;
(ii) Operate and maintain the eligible project in accordance with
applicable requirements of federal and state law;
(iii) Establish and maintain project accounts in accordance with
the agreement and generally accepted accounting principles; and
(iv) Permit any reviews or audits and provide assistance determined
to be reasonable and necessary by the commission.
(2) No provision of this chapter may be deemed to limit the
commission's ability to terminate or impose conditions upon the
operation of an eligible project under this chapter or any other
provision of law.
(3) The commission shall make any other agreements or covenants as
the commission may deem necessary or desirable in connection with the
funding applicable to this chapter.
NEW SECTION. Sec. 6 (1) The commission shall ensure compliance
of recipients with each financing agreement by:
(a) Retaining the right to inspect and review work on each eligible
project in progress and upon completion and determining whether the
work was undertaken and completed in compliance with all relevant plans
and the terms of the financing agreement to the extent that the
inspections and reviews are permitted by applicable law and rule;
(b) Retaining the right to disburse or refuse to disburse payments
to a recipient pursuant to a financing agreement based upon the
determinations of any review or audit;
(c) Establishing remedies if work on an eligible project has not
been completed in accordance with all relevant plans and the terms of
the financing agreement due to factors within the recipient's control;
and
(d) Requiring a recipient to maintain appropriate project accounts
and records with respect to any eligible project.
(2) Nothing in this section may be construed to affect or diminish
the general authority of the commission to inspect and review the work
on any project financed under this chapter, or to inspect the records
relating to such a project, for the purpose of determining compliance
with any other provisions of this chapter.
NEW SECTION. Sec. 7 The rural Washington natural gas access and
investment account is created in the custody of the state treasurer.
Revenues to the account consist of moneys appropriated to the account
by the legislature. Expenditures from the account may be used only for
the purposes of this chapter. Only the executive director of the
commission 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.
NEW SECTION. Sec. 8 This chapter expires July 1, 2020.
NEW SECTION. Sec. 9 Sections 1 through 8 of this act constitute
a new chapter in Title