FINAL BILL REPORT

SHB 425

PARTIAL VETO

                                  C 522 L 87

BYHouse Committee on Energy & Utilities (originally sponsored by Representatives Nelson, Barnes, Jacobsen, P. King and Unsoeld; by request of Washington State Energy Office)

Revising provisions on district heating systems.

House Committe on Energy & Utilities

Senate Committee on Energy & Utilities

SYNOPSIS AS ENACTED

BACKGROUND:

Certain units of local government are authorized to establish district heating systems.  The current description of energy resources available for district heating systems is not complete and not as well organized as it could be.  Not included is the rapidly emerging technology in which heat pumps are allied with a warm water heat source.  A commonly available warm water heat source is municipal sewage flow. The term "hydrothermal resource" includes this usage.

The current definition of "municipality" does not include metropolitan municipal corporations.  An example, King County METRO, is a logical organization to derive energy from its sewage system.

SUMMARY:

Energy definitions with respect to district heating systems are reorganized and restated.  A definition of hydrothermal resource is added. Metropolitan municipal corporations are added to the list of governmental entities defined under "municipality."  The effect is that there is an additional energy resource authorized for use in district heating systems and an additional governmental entity that can become involved.

It is expressly stated that the grant of authority to operate a district heating system does not authorize the formation of an electric utility.

Before a municipality may establish heating systems or heating services, a public hearing must be held to assess impacts on rates of utility customers in the area to be served.  Development of these systems or services are to be done so as to minimize impacts on rates of customers of existing utilities.

VOTES ON FINAL PASSAGE:

      House 97   0

      Senate    47     0(Senate amended)

      House 88   0(House concurred)

EFFECTIVE:July 26, 1987

Partial Veto Summary:  The requirement to minimize impacts on rates of existing utilities is eliminated by the veto, as is the need to hold public hearings to assess impacts of a proposed heating system on rates of existing utilities.