HOUSE BILL REPORT
HB 1253
As Reported by House Committee On:
Environment & Energy
Title: An act relating to expanding the ability of consumer-owned utilities to enter into joint use agreements.
Brief Description: Expanding the ability of consumer-owned utilities to enter into joint use agreements.
Sponsors: Representatives Ybarra and Doglio.
Brief History:
Committee Activity:
Environment & Energy: 1/16/25, 1/28/25 [DPS].
Brief Summary of Substitute Bill
  • Expands the types of agreements that cities, public utility districts, and joint operating agencies may enter into for developing, owning, and operating electricity plants and transmission facilities to be with any person or entity and include joint venture and limited liability company agreements.
HOUSE COMMITTEE ON ENVIRONMENT & ENERGY
Majority Report: The substitute bill be substituted therefor and the substitute bill do pass.Signed by 20 members:Representatives Doglio, Chair; Hunt, Vice Chair; Dye, Ranking Minority Member; Klicker, Assistant Ranking Member; Abbarno, Abell, Barnard, Berry, Duerr, Fey, Kloba, Ley, Mena, Mendoza, Ramel, Stearns, Street, Stuebe, Wylie and Ybarra.
Staff: Megan McPhaden (786-7114).
Background:

Agreements Between Public Agencies Generally.

Any public agency, including any unit of local government, any federal agency, or political subdivision of another state may enter into agreements with each other for joint or cooperative action, with specifications.

 

Agreements Between Public Entities and Electrical Companies Regarding Electric Generating Facilities and Transmission Facilities.

Agreements to Own, Build, and Operate any Electric Generation or Transmission Facility.

Cities that operate electric generating facilities and distribution systems may enter into agreements to use, own, plan, finance, acquire, construct, operate, and maintain electric transmission facilities and any type of electric generating facility, including nuclear and other thermal power facilities.  These cities may enter into such agreements with other such cities, electrical companies, rural electric cooperatives, municipal corporations, utility districts, a political subdivision in any state, and any agency of the United States authorized to generate or transmit electricity.

 

Cities, counties with a biomass facility, public utility districts (PUDs), cities that operate electric generating facilities or distribution systems, joint operating agencies, or any entity comprising two or more public agencies may enter into agreements to own, plan, finance, acquire, construct, operate, and maintain any type of electric generating plant including those generating a renewable resource and transmission facilities.  These agreements may be made between these entities and with any public agency, electrical company, rural electric cooperative, or generation and transmission cooperative.

 

Agreements to Own, Build, and Operate Coal-Fired Thermal Electric Generating Plants. 

Cities, PUDs, and joint operating agencies may enter into agreements to use, own, plan, finance, acquire, construct, operate, and maintain a coal-fired thermal electric generating plant and facility in operation before July 1, 1975.
Summary of Substitute Bill:

The agreements that cities, PUDs, and joint operating agencies may enter into to own, build, and operate electric generating facilities and transmission facilities may be made with any person or entity. ?These agreements may include joint venture agreements and limited liability company agreements. ?Renewable energy facilities and energy storage facilities are added to the inclusive list of the types of electric generating plants and facilities that may be developed, owned, and operated under these agreements.?

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The authorization for cities, PUDs, and joint operating agencies to enter into agreements related to coal-fired electricity plants is removed.
Substitute Bill Compared to Original Bill:

The substitute bill clarifies that energy storage facilities are included in the unlimited list of types of electric generating plants and facilities that may be jointly developed, used, and operated as part of an agreement between a city, PUD, or joint operating agency, and any other entity.? It also adds conforming language in sections of RCW chapters for PUDs and joint operating agencies to conform with the changes in the original bill.?
Appropriation: None.
Fiscal Note: Available.
Effective Date of Substitute Bill: The bill takes effect 90 days after adjournment of the session in which the bill is passed.
Staff Summary of Public Testimony:

(In support) As the grid is electrified there are rapidly increasing demands for more electric generation and transmission.? The Northwest grid is stressed, and utilities have had close calls with serving electric demand.? One public utility district (PUD) has electricity requests for almost three times their current power generation from projects they own.

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Under current law, consumer-owned utilities can only develop generation and storage with other utilities and not with others, like industry.? Developing resources is very expensive and risky, and this would allow PUDs to share those risks and collaborate with other entities that are not utilities.? For example, utilities could build energy storage with private entities.

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The Federal Inflation Reduction Act provides a direct pay option, which permits projects owned by public power to directly benefit from tax credits by receiving cash in lieu of the credit.? This bill would help utilities' leverage these incentives.

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(Opposed) None.?
Persons Testifying:

Representative Alex Ybarra, prime sponsor; Siobhan Doherty, Seattle City Light; John Mertlich, GCPUD; and Nicolas Garcia, WPUDA .
Persons Signed In To Testify But Not Testifying: None.