HB 1768 — Updating definitions applicable to energy conservation projects involving public entities.

H-2234.3H-1910.1 SUBSTITUTE HOUSE BILL 1768 State of Washington 67th Legislature 2022 Regular Session By House Environment & Energy (originally sponsored by Representatives Duerr, Fitzgibbon, Berry, Macri, Ramel, Pollet, and Hackney)Hackney READPrefiled FIRST01/05/22. TIME 01/25/22.

Read first time 01/10/22.

Referred to Committee on Environment & Energy.

amendingand RCWreenacting 39.35A.020 and 39.35C.020;amending RCW 39.35C.010.

reenacting and amending RCW 39.35C.010;

adding a new section to chapter 39.35C RCW;

and adding a new section to chapter 39.35A RCW.

(2)(a) "Conservation" ((means))means includes reduced ((energyenergy consumption or((or energy cost, or increased efficiency in the use of energy, and activities, measures, or equipment designed to achieve such results,results)), but)):energy demand, energy cost, or greenhouse gas emissions through the deployment of distributed energy resources.

(i)For Energythe consumption;purposes of this chapter, distributed energy resources include, but are not limited to, energy efficiency projects, energy storage, p.

p.1 HB 1768 demand response, electric vehicles, and grid-interactive efficient buildings, but does not include thermal or electric energy production from cogeneration.

1(b) SHB"Conservation" 1768also (ii)means Energyreductions demand;in the use or cost of water, wastewater, or solid waste.

(iii)(3) Energy"Cost-effective" cost;means that the present value to a state agency or school district of the ((energy)) benefits reasonably expected to be ((saved)) achieved or produced by a facility, conservation activity, measure, or piece of equipment over its useful life, including any compensation received ((from)) by a utility or the Bonneville power administration, is greater than the net present value of the costs of implementing, maintaining, and operating such facility, activity, measure, or piece of equipment over its useful life, when discounted at the cost of public borrowing.

or (iv) Greenhouse gas emissions.

(b) "Conservation" does not include thermal or electric energy production from cogeneration.

(c) "Conservation" also ((means)) includes reductions in the use or cost of water, wastewater, or solid waste.

(3) "Cost-effective" means that the present value to a state agency or school district of the ((energy)) benefits reasonably expected to be ((saved)) achieved or produced by a facility, conservation activity, measure, or piece of equipment over its useful life, including any compensation received from a utility or the Bonneville power administration, is greater than the net present value of the costs of implementing, maintaining, and operating such facility, activity, measure, or piece of equipment over its useful life, when discounted at the cost of public borrowing.

(12) "Public facility" means a building ((or structure, or a group of buildings or structures at a single site)), structure, group of buildings or structures at a single site, site improvement, or other facility owned by a state agency or school district.

(13) "State agency" means every state office or department, whether elective or appointive, state institutions of higher p.

2 SHBHB 1768 (13) "State agency" means every state office or department, whether elective or appointive, state institutions of higher education, and all boards, commissions, or divisions of state government, however designated.

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2.

RCW 39.35A.020 and 2007 c 39 s 2 are each amended to read as follows:

((Unless the context clearly indicates otherwise, the)) The definitions in this section ((shall)) apply throughout this chapter unless the context clearly requires otherwise.

(1)(a) "Conservation" includes reduced:

(i) Energy consumption;

(ii) Energy demand;

(iii) Energy cost;

or (iv) Greenhouse gas emissions.

(b)(i) "Conservation" includes reductions in the use or cost of water, wastewater, or solid waste.

(ii) "Conservation" does not include thermal or electric energy production from cogeneration.

(2) "Energy equipment and services" means ((energy management systems and any equipment, materials, or supplies that are expected, upon installation, to reduce the energy use or energy cost of an existing building or facility, and the services associated with the equipment, materials, or supplies,)):

(a) 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 (b) 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.

p.

3 SHB 1768 (((2))) (3) "Energy management system" has the definition provided in RCW 39.35.030.

(((3))) (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.

(((4))) (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, ((or)) solid waste cost savings, or benefits achieved through conservation projects attributable under the contract;