Substitute House Bill 1768 as Recommended by Environment & Energy - as passed by the Legislature

Source

Section 2

This section modifies existing section 39.35A.020. Here is the modified chapter for context.

The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.

  1. [Empty]

    1. "Conservation" includes reduced:

      1. Energy consumption;

      2. Energy demand;

      3. Energy cost; or

      4. Greenhouse gas emissions.

    2. [Empty]

      1. "Conservation" includes reductions in the use or cost of water, wastewater, or solid waste.

      2. "Conservation" does not include thermal or electric energy production from cogeneration.

  2. "Energy equipment and services" means :

    1. Energy management systems and any equipment, materials, supplies, or conservation projects that are expected, upon installation, to reduce the energy use, reduce the energy demand, reduce the energy cost, or reduce the greenhouse gas emissions, of a facility; and

    2. The services associated with the equipment, materials, supplies, or conservation projects including**,** but not limited to**,** design, engineering, financing, installation, project management, guarantees, operations, and maintenance. Reduction in energy use or energy cost may also include reductions in the use or cost of water, wastewater, or solid waste.

  3. "Energy management system" has the definition provided in RCW 39.35.030.

  4. "Facility" includes a building, structure, group of buildings or structures at a single site, site improvement, or other facility owned by a municipality.

  5. "Municipality" has the definition provided in RCW 39.04.010.

  6. "Performance-based contract" means one or more contracts for water conservation services, solid waste reduction services, or energy equipment and services between a municipality and any other persons or entities, if the payment obligation for each year under the contract, including the year of installation, is either: (a) Set as a percentage of the annual energy cost savings, water cost savings, solid waste cost savings**, or benefits achieved through conservation projects** attributable under the contract; or (b) guaranteed by the other persons or entities to be less than the annual energy cost savings, water cost savings, solid waste cost savings**, or other benefits** attributable under the contract. Such guarantee shall be, at the option of the municipality, a bond or insurance policy, or some other guarantee determined sufficient by the municipality to provide a level of assurance similar to the level provided by a bond or insurance policy.

Section 3

This section modifies existing section 39.35C.020. Here is the modified chapter for context.

  1. Each state agency and school district shall implement cost-effective conservation improvements and maintain efficient operation of its facilities in order to minimize energy consumption and related environmental impacts and reduce operating costs. Each state agency shall undertake an energy audit and implement cost-effective conservation measures pursuant to the time schedules and requirements set forth in chapter 43.19 RCW, except that any state agency that, after December 31, 1997, has completed energy audits and implemented cost-effective conservation measures, or has contracted with an energy service company for energy audits and conservation measures, is deemed to have met the requirements of this subsection for those facilities included in the audits and conservation measures. Each school district shall undertake an energy audit and implement cost-effective conservation measures pursuant to the time schedules and requirements set forth in RCW 39.35C.025. Performance-based contracting shall be the preferred method for completing energy audits and implementing cost-effective conservation measures.

  2. The department shall assist state agencies and school districts in identifying, evaluating, and implementing cost-effective conservation projects at their facilities. The department, in consultation with affected public agencies, shall develop and issue guidelines for cost-effectiveness determination. The purpose of the guidelines is to define a procedure and method for performance of cost-effectiveness. The department's assistance to state agencies and school districts shall include the following:

    1. Notifying state agencies and school districts of their responsibilities under this chapter;

    2. Apprising state agencies and school districts of opportunities to develop and finance such projects;

    3. Providing technical and analytical support, including procurement of performance-based contracting services;

    4. Reviewing verification procedures for energy savings; and

    5. Assisting in the structuring and arranging of financing for cost-effective conservation projects.

  3. Conservation projects implemented under this chapter shall have appropriate levels of monitoring to verify the performance and measure the energy savings over the life of the project. The department shall solicit involvement in program planning and implementation from utilities and other energy conservation suppliers, especially those that have demonstrated experience in performance-based energy programs.

  4. The department shall comply with the requirements of chapter 39.80 RCW when contracting for architectural or engineering services.

  5. The department shall recover any costs and expenses it incurs in providing assistance pursuant to this section, including reimbursement from third parties participating in conservation projects. The department shall enter into a written agreement with the public agency for the recovery of costs.

Section 4

This section adds a new section to an existing chapter 39.35C. Here is the modified chapter for context.

For purposes of this chapter:

  1. Conservation may be achieved through the deployment of distributed energy resources; and

  2. Distributed energy resources include, but are not limited to, energy efficiency projects that are not cogeneration projects, energy storage, demand response, electric vehicle charging infrastructure, and grid-interactive efficient buildings.

Section 5

This section adds a new section to an existing chapter 39.35A. Here is the modified chapter for context.

For purposes of this chapter:

  1. Conservation may be achieved through the deployment of distributed energy resources; and

  2. Distributed energy resources include, but are not limited to, energy efficiency projects that are not cogeneration projects, energy storage, demand response, electric vehicle charging infrastructure, and grid-interactive efficient buildings.


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