II. Governor's Executive Order
III. Interagency Working Group
IV. Status of Energy Strategy Recommendations
V. Next Steps for the Energy Strategy
Other Sites of Interest on the Web
n 1991, the Legislature instructed the Governor
to appoint a group of 20 citizens, representatives of business and industry, and public
officials to recommend a strategy that would work toward assuring Washington residents of
adequate, economical, and reliable energy while protecting the environment and promoting
economic development. The Washington State Energy Strategy is the result of the
Committee's work.
The Energy Strategy Committee took great pains to develop an energy strategy that emphasizes jobs, economic well-being, and environmental protection. The Energy Strategy is an important document, not because it presents a completely new set of energy-related recommendations, but because it consolidates these actions into a single, organized framework that can guide Washington's decisions about energy sources and use into the next century. The recommendations in Washington's Energy Strategy rely on known cost-effective technologies, beginning with improved efficiency, renewable resources, and wise use of natural gas.
Washington's Energy Strategy is organized into five main topic areas:
In 1994, the Legislature enacted ESB 6493, which made Washington's Energy Strategy the primary guidance for implementation of the state's energy policy. The legislation also provides for a public process to update the Strategy as needed.
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lso in 1994, Gov. Lowry signed an Executive
Order implementing the Washington Energy Strategy. The Executive Order:
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he Interagency Working Group has met eight times
since June 1994 and, in addition, has received periodic written updates on energy issues.
In addition to the eight agencies specified in the Executive Order, six additional
agencies participated regularly in the working group. The working group explored current
activities related to the Energy Strategy recommendations through a series of
informational presentations given by staff from a number of state agencies. Through these
presentations, working group members became better informed regarding the Energy Strategy.
The format also provided a framework for action items, formation of subcommittees, and
future discussion and follow-up.
The working group reviewed current state agency activities associated with specific Energy Strategy recommendations and passed a series of recommendations based on presentations by participating agency staff. The recommendations sought to improve organizational communication and solve problems that occurred in implementing Energy Strategy recommendations.
During the course of the meetings, the following issues emerged as topics for consideration and action by the working group.
A subcommittee of the Energy Strategy Working Group researched the implementation of a statewide natural gas purchasing program to ensure that public entities are able to purchase natural gas at the lowest possible cost. The gas procurement alternatives available to Washington State institutions can result in savings of up to $1 million in the nearly $12 million annual cost for natural gas.
The Office of State Procurement is planning to expand its current gas broker services contract next spring to take full advantage of cost saving opportunities from deregulation in the natural gas industry. The natural gas requirements of other large state agencies and institutions will be consolidated into this statewide contract to obtain lower cost gas and interstate transportation services. The contract then may be expanded to enable smaller state institutions, counties, cities, and school districts to participate.
Additionally, the Department of General Administration (GA) is closely following developments in the deregulation of the electrical industry. As various utilities throughout the state offer their electrical customers opportunities to purchase lower cost electricity, GA will be in a position to advise and provide contracting services to state agencies and political subdivisions positioned to pursue such savings.
Since a major priority for the Energy Strategy Working Group involves public agencies leading by example, improving the efficiency of state government, and cutting costs of operation, much of the focus of the working group has centered on the area of public sector energy efficiency. GA has been involved with providing energy conservation measures to state facilities using energy performance contracting procedures. GA has completed over $20 million worth of energy performance contracts which will save state 350 billion BTUs of energy and $30 million over the life of the measures. GA is currently working on $7 million worth of energy projects which will be completed during the 1997 biennium. Agencies which are taking advantage of performance contracting are the Community and Technical Colleges; GA; Departments of Social and Health Services, Health, and Corrections; and, the Washington State Historical Society Museum. GA is also working with King County to develop a program and interest is being expressed by other local governments.
In 1990, public facilities in Washington (including state and local governments, K-12 schools, and colleges/universities) spent more than $160 million dollars per year on energy. A study of conservation potential conservatively estimated that Washington public buildings have saved over $30 million per year of cost effective energy savings potential. [Note 1] In the last six years, state facilities have captured approximately 42 percent of the projected savings, while other public facilities have captured approximately 24 percent of their projected savings. As public agencies begin to take advantage of the performance contracting opportunities, the rate of implementation will increase.
The Office of Financial Management has initiated a group called the Capital Policy and Communications Committee to deal with public sector facilities issues. The committee is designed to streamline administration of state capital facilities by increasing communication among facility administrators and improving processes. Members of the Energy Strategy Working Group have participated on this committee, which is actively pursuing issues connected with building efficiency in the public sector, including funding and facilities operation and maintenance related to energy use and conservation. The Capital Policy and Communications Committee completed a survey of facilities' practices and developed model maintenance legislation for introduction in the 1997 legislative session.
Energy Office staff presented the working group with an overview of the $100,000 Renewable Energy Matching Grant Program and encouraged state agencies to submit proposals for high visibility renewable energy projects. GA was awarded one of the grants for $10,000 to install 10 photovoltaic (PV) security lights, as well as a PV powered emergency phone.
The Department of Community, Trade and Economic Development (CTED) presented a discussion of the issues facing low-income citizens as a result of federal budget cuts and other actions affecting this vulnerable population in our state. Several action items supporting low-income energy issues were suggested for the working group, including identifying legislative incentives or changes needed to secure low-income energy conservation. The recommendations also resulted in the letter from the working group to the Governor, encouraging a representative with a background in energy conservation and low income energy issues be appointed to the Affordable Housing Advisory Board. Ray Rickers, Housing Director from the Spokane Neighborhood Action Program, was appointed by the Governor to the Affordable Housing Advisory Board. His awareness and understanding of low-income issues and weatherization program will be an asset to the board.
As a result of coordination between working group members following a discussion of geothermal energy issues, the Department of Ecology will now give priority processing to permit applications for water rights that involve "non-consumptive" water use. This policy change will help remove barriers and pave the way for faster approval of water rights applications for groundwater or geothermal heat pump systems.
Another area of concern regarding geothermal development discussed by the working group dealt with geothermal leases. On federal lands leased for geothermal exploration and development, 50 cents of the one dollar per acre rental fee is returned to the state. This amount is split between the state's geothermal commercialization efforts, the Department of Natural Resources for resource assessment, and the county of origin for social and environmental impact mitigation. Developers, however, are refusing to lease federal lands in Washington because the state's leasehold excise tax is assessed on federal geothermal leases; therefore, no money is coming into the geothermal fund to support development of geothermal resources. The Department of Revenue has agreed to seek legislation in the 1998 session to remove the excise tax on leases of federal land for geothermal exploration.
Energy Office solar and wind specialists introduced to the working group the idea of creating a sales and use tax deferral or exemption for solar and wind equipment used to generate electricity. The working group encouraged further review of the issue and formed a subcommittee to consider strategies to develop and promote appropriate legislation.
Industry partners stepped forward to sponsor the concept and promote the legislation during the 1996 session. These efforts resulted in the passage of legislation addressing a sales tax exemption for wind and solar equipment that produces over 200 kW of electricity, signed into law on March 28, 1996. During the 1997 legislature, the Washington Solar Energy Industries Association will seek a language change lowering the exemption threshold on the solar portion of the legislation to increase the bill's effectiveness.
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nergy Policy staff have developed a matrix
listing each recommendation determined to be a priority in the Energy Strategy and
monitors the implementation of these recommendations. This list of recommendations,
agencies assigned to address those recommendations, and brief status descriptions are
included in Appendix D.
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ased on the dramatic changes underway in the
energy field, the Washington State Energy Strategy will be revised and updated in the
coming biennium.
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Note 1. Baylon, D., B. Davis, J. Heller, and G. Katz. 1991. Energy Conservation in Public Buildings. Seattle, WA: Ecotope for Washington State Energy Office. and Kunkle, R. 1995. Annual Progress Report for the Public Sector Program, Fiscal Year 1995. Olympia, WA: Washington State Energy Office.
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Highlights from Washington's Energy Strategy: An Invitation to Action
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The print version of the 1997 Biennial Energy Report is available free of charge. To order, contact Julie Palakovich at (360) 956-2098, or send e-mail to wepg@ep.cted.wa.gov.