To establish energy efficiency and renewable energy standards. The bill states that on or before June 1, 2007, each electric utility, direct service customer, and market customer must demonstrate progress in meeting the efficiency and renewable standards in this bill. Investor-owned utilities will report to the Washington State Utilities and Transportation Commission, consumer-owned utilities will report to the auditor, and direct service customers and market customers will report to the Department of Community, Trade, and Economic Development.   Official Text and Analysis.

By several people. (Click here to see the entire list.) They testified that despite the generous endowment of renewable resources in the region, the many cost-competitive projects that have been started, and the lessons learned from the recent energy crisis, renewables still face market barriers. They have high up front costs even though over the long term, costs are very low. There is no good way to include the benefits of renewables into the cost. This bill is a modest and gradual increase of the amount of renewables that suppliers would use to meet customer needs. It provides for an orderly development of renewable resources and creates a market. Wind is cost competitive today. Wind will develop where the stable markets are. A renewable standard helps create that market. It creates competition and allows the most cost-effective projects to go forward first. It can help rural areas and the local tax base. It helps farms obtain revenue from their land from wind turbines. It helps diversify energy resources and avoid the volatility in the energy market in recent years. The bill provides a reasonable standard for renewables that doesn't apply until 2010. There is flexibility in meeting the standard to help each utility meet their needs. Fourteen states have portfolio standards. Incentives and credits are uncertain and they must be paired with a standard. It will help us be energy independent. The energy efficiency industry provides jobs in this state and having standards creates a stable and predictable environment in which these companies can operate. A consistent conservation program will provide an incentive for people who want to save energy. Energy efficiency that reduces energy consumption does help a company's bottom line. An economic analysis of the impact of the bill is that it may produce slightly higher electric rates but lower total electric bills. Over time, the economic benefits increase. There is concern that the bill should provide a voluntary incentive to use local workers involved in apprenticeship programs when constructing renewable resource generation facilities.

By Stu Trefry, WA Public Utility District Association, who testified that mandates take away local control. Requiring a purchase of certain power sources could cause increased costs to public utilities that have already had to increase rates. Increasing rates and costs are of great concern. Another concern is the lack of credit for work already done particularly for efficiencies already in place. Federal programs that provide an incentive for public agencies, if funded, would go a long way to get public agencies investing in renewables.

By Dave Clinton, WA Rural Electric Co-op Association; Tim Boyd, Industrial Customers of Northwest Utilities; Bruce Folsom, Avista; Al Aldrich, Snohomish Public Utility District; and Kristen Sawin, Association of WA Businesses, who testified that existing regulations already require consideration of all cost-effective resources including renewables. This bill is a one size fits all and is not a market driven bill. The bill is a concern for costs to consumers. Investor-owned utilities may not be able to get cost recovery for higher cost renewables. There is a lot of renewable resource development going on. A more appropriate approach is incentives. Government shouldn't guarantee markets. Locally controlled utilities cannot support mandates on how they should acquire resources. Now is not the time to impose requirements that can increase costs.

To propose a different approach to requiring utilities and direct service industrial customers to increase energy efficiencies and add electric generation powered by renewable resources. Gas distribution companies are included in an energy efficiency standard, and market customers are not included. The substitute provides additional exemptions from compliance, and removes certain alternative methods of compliance. Public utilities report to the DCTED rather than the State Auditor. Time lines for compliance are changed. A peak load reduction feasibility study requirement is included.

But the bill did not pass the House by the cutoff date so it is considered a “dead bill” (although technically the bill could become active at any time during the 2003-2004 session).