WSR 99-19-076

EXPEDITED ADOPTION

DEPARTMENT OF

GENERAL ADMINISTRATION

[ Filed September 16, 1999, 11:37 a.m. ]

Title of Rule: Chapter 194-20 WAC, Energy efficiency services account.

Purpose: To delete all reference to the Washington State Energy Office and replace with the Department of General Administration, the agency directed to administer the activities of the energy efficiency services account program.

Other Identifying Information: WAC 194-20-010, 194-20-020(1-4,6,7), 194-20-030, 194-20-040, 194-20-050, and 194-20-080 are changed. WAC 194-20-020(5), 194-20-060, and 194-20-070 are repealed.

Statutory Authority for Adoption: Chapter 39.35C RCW.

Summary: Incorporate editorial changes that identify General Administration as the agency administering the energy efficiency services account program, repeal those subsections of chapter 194-20 WAC that refer to programs not administered by General Administration, modify terminology with the subsections appropriate to the intent of the WAC, recodify to include WAC in General Administration Title 236 WAC.

Reasons Supporting Proposal: Executive Order 97-02.

Name of Agency Personnel Responsible for Drafting: Facilities Engineering Services, Mailstop 41012, General Administration Division of Engineering and Architectural Services, 902-7262; Implementation and Enforcement: Clint Lougheed, Mailstop 41012, General Administration, Division of Engineering and Architectural Services, 902-7262.

Name of Proponent: Facilities Engineering Services, General Administration Division of Engineering and Architectural Services, governmental.

Agency Comments or Recommendations, if any, as to Statutory Language, Implementation, Enforcement, and Fiscal Matters: Executive Order 97-02 mandates these changes.

Rule is not necessitated by federal law, federal or state court decision.

Explanation of Rule, its Purpose, and Anticipated Effects: Restructuring of the Washington State Energy Office (WSEO) in 1996 resulted in the dissemination of the agency's programs to General Administration (GA), Community, Trade and Economic Development (CTED), Washington State University (WSU), and the Department of Transportation (DOT). Chapter 194-20 WAC provides administrative guidelines for the Energy Efficiency Services Account (EESA) program which now resides within General Administration Editorial corrections are required to change references within chapter 194-20 WAC from WSEO to GA. The repeal of WAC 194-20-020(5), 194-20-060 and 194-20-070 are required because they refer to programs not administered by GA. WAC 194-20-080 is modified to reduce the restrictiveness of the working capital account balance which is necessary to maintain a positive operating cash flow while meeting the requirements of the current expenditure appropriation cap placed on the EESA account when it was transferred to GA. These changes are necessary to meet the requirements of Executive Order 97-02.

Proposal does not change existing rules.

NOTICE

THIS RULE IS BEING PROPOSED TO BE ADOPTED USING AN EXPEDITED RULE-MAKING PROCESS THAT WILL ELIMINATE THE NEED FOR THE AGENCY TO HOLD PUBLIC HEARINGS, PREPARE A SMALL BUSINESS ECONOMIC IMPACT STATEMENT, OR PROVIDE RESPONSES TO THE CRITERIA FOR A SIGNIFICANT LEGISLATIVE RULE. IF YOU OBJECT TO THIS RULE BEING ADOPTED USING THE EXPEDITED RULE-MAKING PROCESS, YOU MUST EXPRESS YOUR OBJECTIONS IN WRITING AND THEY MUST BE SENT TO Clint Lougheed, Facilities Engineering Services, General Administration Division of Engineering and Architectural Services, P.O. Box 41012, Olympia, WA 98504-1012 , AND RECEIVED BY December 1, 1999.


September 16, 1999

John M. Lynch

Acting Assistant Director

General Administration Engineering

and Architectural Services

OTS-3227.2


AMENDATORY SECTION(Amending WSR 92-01-120, filed 12/19/91, effective 1/19/92)

WAC 194-20-010
Purpose.

This chapter implements the provisions of section ((12)) 415 and related sections of chapter ((201)) 186, Laws of ((1991)) 1996, establishing criteria and procedures for setting a fee schedule, establishing working capital requirements, and receiving funds for the energy efficiency services account.

[Statutory Authority: RCW 43.21F.045(12) and 1991 c 201 12.  92-01-120, 194-20-010, filed 12/19/91, effective 1/19/92.]


AMENDATORY SECTION(Amending WSR 92-01-120, filed 12/19/91, effective 1/19/92)

WAC 194-20-020
Definitions.

(1) (("WSEO")) "Department" means the ((Washington state energy office)) state department of general administration.

(2) "Energy ((partnerships)) services" means the energy efficiency program that emerges from chapter ((201)) 186, Laws of ((1991)) 1996, the mission of which is the fulfillment of the requirements of that legislation: To achieve cost-effective conservation improvements in state and school district facilities and to investigate and, if appropriate, to pursue development of cost-effective cogeneration in existing ((and/)) or new state facilities.

(3) "Energy life cycle cost analysis (((LCCA))) (ELCCA)" means the method of economic analysis which accounts for the initial cost and the cost of operation of a major facility or its systems over its economic life.  (See RCW 39.35.030(7).) Chapter 39.35 RCW requires that an ((LCCA)) ELCCA be prepared prior to construction or alteration of a publicly owned or leased facility having twenty-five thousand square feet or more of usable floor space.

(4) "Energy conservation report (ECR)" means the report ((in which LCCA's are)) describing the ELCCA performed for schools, funded in part by the Washington superintendent of public instruction and reviewed by ((WSEO)) the department.  The contents of the report and the submission procedures are outlined in the ((WSEO)) department's publication, (("Guidelines for Preparing Energy Conservation Reports.")) "Energy Life Cycle Cost Analysis Guidelines for Public Agencies."

(5) (("School building energy characteristics report (SBEC)" means the conservation report which communicates compliance with the governing energy code, required for smaller projects not affected by WAC 180-27-075.

(6))) "Energy efficiency project" means a project which reduces energy consumption or energy cost, or increases the efficient use of energy.  It includes activities, measures, and/or equipment designed to achieve these results.

(((7))) (6) "Cogeneration project" means a project which results in the sequential generation of two or more forms of energy from a common fuel or energy source.

[Statutory Authority: RCW 43.21F.045(12) and 1991 c 201 12.  92-01-120, 194-20-020, filed 12/19/91, effective 1/19/92.]


AMENDATORY SECTION(Amending WSR 92-01-120, filed 12/19/91, effective 1/19/92)

WAC 194-20-030
Criteria and procedures for setting fees.

The ((WSEO)) department will charge fees sufficient to recover the cost of providing services to state agencies ((and)), school districts, and public agencies which undertake energy efficiency or cogeneration projects under the energy ((partnerships)) services program.  Recoverable costs include, but are not limited to all necessary costs of providing services directly to ((client institutions)) public facilities, of monitoring and implementing utility agreements when utilities elect to offer designated services, and of monitoring agreements with private consultants or energy service companies who provide energy ((partnerships)) services.  ((WSEO's)) The department's fees are based on hourly rates and the billable hours of service providers, and ((shall)) include all technical and program costs, and associated administrative costs.  Fees are negotiated between ((WSEO)) the department and the ((institution)) public facility being served, except for fees to review ((LCCA's)) ELCCA's and ECR's.

[Statutory Authority: RCW 43.21F.045(12) and 1991 c 201 12.  92-01-120, 194-20-030, filed 12/19/91, effective 1/19/92.]


AMENDATORY SECTION(Amending WSR 92-01-120, filed 12/19/91, effective 1/19/92)

WAC 194-20-040
Energy life cycle cost analysis/energy conservation report fees.

Fees for ((LCCA)) ELCCA and ECR reviews will be established to recover ((WSEO's)) the department's actual costs in conducting the reviews.  ((Annually, these costs will be evaluated and a revised fee schedule will be published, effective July 1 of the year in which it is issued.  WSEO's)) The department's fee for an ((LCCA)) ELCCA or ECR review will not exceed two thousand dollars or one-tenth of one percent of the project's total design and construction cost, whichever is less, unless mutually agreed by the ((institution)) public agency and ((WSEO)) the department.  ((No fee is charged for school building energy characteristics report reviews.

WSEO)) The department shall annually evaluate whether energy savings resulting from its review of ((LCCA's)) ELCCA's and ECR's justify the costs of performing the reviews.  ((WSEO shall make the results of that report available to the public, on request.))

[Statutory Authority: RCW 43.21F.045(12) and 1991 c 201 12.  92-01-120, 194-20-040, filed 12/19/91, effective 1/19/92.]


AMENDATORY SECTION(Amending WSR 92-01-120, filed 12/19/91, effective 1/19/92)

WAC 194-20-050
Receipt of funds.

((WSEO)) The department requires full payment of its invoices in the form of a check made payable to ((WSEO)) the department or an electronic fund transfer.  For ((LCCA's)) ELCCA's and ECR's submitted for review, ((institutions)) public facilities will be invoiced when the review takes place.  For all other energy conservation or cogeneration services, ((institutions)) public facilities will be invoiced on a monthly basis unless other financing arrangements are mutually agreed upon in advance.

[Statutory Authority: RCW 43.21F.045(12) and 1991 c 201 12.  92-01-120, 194-20-050, filed 12/19/91, effective 1/19/92.]


AMENDATORY SECTION(Amending WSR 92-01-120, filed 12/19/91, effective 1/19/92)

WAC 194-20-080
Working capital requirements.

The ((WSEO)) department establishes an initial goal of building within the energy efficiency services account a working capital account balance equal to ((four to five months)) a minimum of one month of operating costs.

[Statutory Authority: RCW 43.21F.045(12) and 1991 c 201 12.  92-01-120, 194-20-080, filed 12/19/91, effective 1/19/92.]


REPEALER

     The following sections of the Washington Administrative Code are repealed:
WAC 194-20-060 Net revenue from transactions for conservation.
WAC 194-20-070 Net savings and net revenue from transactions for cogeneration.

NEW SECTION


The following sections of the Washington Administrative Code, as amended, are recodified as follows:


Old WAC Number New WAC Number
194-20-010 236-200-010
194-20-020 236-200-020
194-20-030 236-200-030
194-20-040 236-200-040
194-20-050 236-200-050
194-20-080 236-200-060

Washington State Code Reviser's Office