Utility joint use agreements

AN ACT Relating to expanding the ability of consumer-owned 1
utilities to enter into joint use agreements; and amending RCW 2
35.92.052 and 54.44.020. 3
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:4
Sec. 1. RCW 35.92.052 and 1997 c 230 s 1 are each amended to 5
read as follows: 6
(1) ((Except as provided in subsection (3) of this section, 7
cities)) Cities of the first class which operate electric generating 8
facilities and distribution systems shall have power and authority to 9
participate and enter into agreements for the development, use, or 10
((undivided)) ownership of high voltage transmission facilities and 11
capacity rights in those facilities and for the ((undivided)) 12
development, use, or ownership of any type of electric generating 13
plants and facilities, including, but not limited to, nuclear and 14
other thermal power generating plants and facilities , renewable 15
energy facilities, and transmission facilities including, but not 16
limited to, related storage and transmission facilities, all to be 17
called "common facilities"; and for the planning, financing, 18
acquisition, construction, operation, and maintenance with: (a) Each 19
other; (b) electrical companies which are subject to the jurisdiction 20
of the Washington utilities and transportation commission or the 21
H-0465.1
HOUSE BILL 1253
State of Washington 69th Legislature 2025 Regular Session
By Representatives Ybarra and Doglio
Prefiled 01/10/25. Read first time 01/13/25. Referred to Committee
on Environment & Energy.
p. 1 HB 1253
regulatory commission of any other state, to be called "regulated 1
utilities"; (c) rural electric cooperatives, including generation and 2
transmission cooperatives in any state; (d) municipal corporations, 3
utility districts, or other political subdivisions in any state; 4
((and)) (e) any agency of the United States authorized to generate or 5
transmit electrical energy ; and (f) any other persons or entities. 6
Agreements under this section include, but are not limited to, joint 7
venture agreements and limited liability company agreements . It shall 8
be provided in such agreements that each city shall use or own a 9
percentage of any common facility at least equal to the percentage of 10
the money furnished or the value of property supplied by it for the 11
acquisition and construction of or additions or improvements to the 12
facility and shall own and control or provide for the use of a like 13
percentage of the electrical transmission or output.14
(2) A city using or owning common facilities under this section 15
may issue revenue bonds or other obligations to finance the city's 16
share of the use or ownership of the common facilities.17
(3) ((Cities of the first class shall have the power and 18
authority to participate and enter into agreements for the use or 19
undivided ownership of a coal-fired thermal electric generating plant 20
and facility placed in operation before July 1, 1975, including 21
related common facilities, and for the planning, financing, 22
acquisition, construction, operation, and maintenance of the plant 23
and facility. It shall be provided in such agreements that each city 24
shall use or own a percentage of any common facility equal to the 25
percentage of the money furnished or the value of property supplied 26
by the city for the acquisition and construction of or additions or 27
improvements to the facility and shall own and control or provide for 28
the use of a like percentage of the electrical transmission or output 29
of the facility. Cities may enter into agreements under this 30
subsection with each other, with regulated utilities, with rural 31
electric cooperatives, with utility districts, with electric 32
companies subject to the jurisdiction of the regulatory commission of 33
any other state, and with any power marketer subject to the 34
jurisdiction of the federal energy regulatory commission.35
(4))) The agreement must provide that each participant shall 36
defray its own interest and other payments required to be made or 37
deposited in connection with any financing undertaken by it to pay 38
its percentage of the money furnished or value of property supplied 39
by it for the planning, acquisition, and construction of any common 40
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facility, or any additions or betterments. The agreement shall 1
provide a uniform method of determining and allocating operation and 2
maintenance expenses of a common facility. 3
(((5))) (4) Each city participating in the ownership, use, or 4
operation of a common facility shall pay all taxes chargeable to its 5
share of the common facility and the electric energy generated under 6
any applicable statutes and may make payments during preliminary work 7
and construction for any increased financial burden suffered by any 8
county or other existing taxing district in the county in which the 9
common facility is located, under agreement with such county or 10
taxing district. 11
(((6))) (5) In carrying out the powers granted in this section, 12
each such city shall be severally liable only for its own acts and 13
not jointly or severally liable for the acts, omissions, or 14
obligations of others. No money or property supplied by any such city 15
for the planning, financing, acquisition, construction, operation, or 16
maintenance of, or addition or improvement to any common facility 17
shall be credited or otherwise applied to the account of any other 18
participant therein, nor shall the ((undivided)) share of any city in 19
any common facility be charged, directly or indirectly, with any debt 20
or obligation of any other participant or be subject to any lien as a 21
result thereof. No action in connection with a common facility shall 22
be binding upon any city unless authorized or approved by resolution 23
or ordinance of its governing body. 24
(((7))) (6) Any city acting jointly outside the state of 25
Washington, by mutual agreement with any participant under authority 26
of this section, shall not acquire properties owned or operated by 27
any public utility district, by any regulated utility, or by any 28
public utility owned by a municipality without the consent of the 29
utility owning or operating the property, and shall not participate 30
in any condemnation proceeding to acquire such properties.31
Sec. 2. RCW 54.44.020 and 2010 c 167 s 2 are each amended to 32
read as follows: 33
(1) Except as provided in ((subsections)) subsection (2) ((and 34
(3))) of this section, cities of the first class, ((public utility 35
districts organized under chapter 54.08 RCW, and joint operating 36
agencies organized under chapter 43.52 RCW, any such cities and))37
public utility districts organized under chapter 54.08 RCW, which 38
operate electric generating facilities or distribution systems , and 39
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any joint operating agency organized under chapter 43.52 RCW shall 1
have power and authority to participate and enter into agreements 2
with each other and with electrical companies which are subject to 3
the jurisdiction of the Washington utilities and transportation 4
commission or the ((public utility commissioner of Oregon )) 5
regulatory commission of any other state , hereinafter called 6
"regulated utilities", and with rural electric cooperatives, 7
including generation and transmission cooperatives , with any other 8
person or entities for the ((undivided)) development, use, and 9
ownership of any type of electric generating plants and facilities, 10
including, but not limited to, nuclear and other thermal power 11
generating plants and facilities , renewable energy facilities, and 12
transmission facilities including, but not limited to, related 13
storage and transmission facilities, hereinafter called "common 14
facilities", and for the planning, financing, acquisition, 15
construction, operation and maintenance thereof. Agreements under 16
this section include, but are not limited to, joint venture 17
agreements and limited liability company agreements. It shall be 18
provided in such agreements that each city, public utility district, 19
or joint operating agency shall own a percentage of any common 20
facility equal to the percentage of the money furnished or the value 21
of property supplied by it for the acquisition and construction 22
thereof and shall own and control a like percentage of the electrical 23
output thereof. 24
(2) ((Cities of the first class, public utility districts 25
organized under chapter 54.08 RCW, and joint operating agencies 26
organized under chapter 43.52 RCW, shall have the power and authority 27
to participate and enter into agreements for the undivided ownership 28
of a coal-fired thermal electric generating plant and facility placed 29
in operation before July 1, 1975, including related common 30
facilities, and for the planning, financing, acquisition, 31
construction, operation, and maintenance of the plant and facility. 32
It shall be provided in such agreements that each city, public 33
utility district, or joint operating agency shall own a percentage of 34
any common facility equal to the percentage of the money furnished or 35
the value of property supplied by the city, district, or agency, for 36
the acquisition and construction of the facility, and shall own and 37
control a like percentage of the electrical output thereof. Cities of 38
the first class, public utility districts, and joint operating 39
agencies may enter into agreements under this subsection with each 40
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other, with regulated utilities, with rural electric cooperatives, 1
with electric companies subject to the jurisdiction of the regulatory 2
commission of any other state, and with any power marketer subject to 3
the jurisdiction of the federal energy regulatory commission.4
(3)))(a) Except as provided in ((subsections)) subsection (1) 5
((and (2))) of this section, cities of the first class, counties with 6
a biomass facility authorized under RCW 36.140.010, public utility 7
districts organized under chapter 54.08 RCW, any cities that operate 8
electric generating facilities or distribution systems, any joint 9
operating agency organized under chapter 43.52 RCW, or any separate 10
legal entity comprising two or more thereof organized under chapter 11
39.34 RCW shall, either directly or as co -owners of a separate legal 12
entity, have power and authority to participate and enter into 13
agreements described in (b) and (c) of this subsection with each 14
other, and with any of the following, either directly or as co -owners 15
of a separate legal entity: 16
(i) Any public agency, as that term is defined in RCW 39.34.020;17
(ii) Electrical companies that are subject to the jurisdiction of 18
the Washington utilities and transportation commission or the 19
regulatory commission of any state; ((and))20
(iii) Rural electric cooperatives and generation and transmission 21
cooperatives or any wholly owned subsidiaries of either rural 22
electric cooperatives or generation and transmission cooperatives ; 23
and24
(iv) Any other persons or entities. 25
(b) Except as provided in (b)(i)(B) of this subsection (((3))) 26
(2), agreements including, but not limited to, joint venture 27
agreements and limited liability company agreements, may provide for:28
(i)(A) The ((undivided)) development, use, or ownership, or 29
indirect ownership in the case of a separate legal entity, of common 30
facilities that include any type of electric generating plant 31
generating an eligible renewable resource, as defined in RCW 32
19.285.030, and transmission facilities including, but not limited 33
to, related storage and transmission facilities, and for the 34
planning, financing, acquisition, construction, operation, and 35
maintenance thereof; 36
(B) For counties with a biomass facility authorized under RCW 37
36.140.010, the provisions in (b)(i)(A) of this subsection (((3))) 38
(2) are limited to the purposes of RCW 36.140.010; and39
p. 5 HB 1253
(ii) The formation, operation, and ownership of a separate legal 1
entity that may own the common facilities. 2
(c) Agreements must provide that each city, county, public 3
utility district, or joint operating agency: 4
(i) Owns a percentage of any common facility or a percentage of 5
any separate legal entity equal to the percentage of the money 6
furnished or the value of property supplied by it for the acquisition 7
and construction thereof; and 8
(ii) Owns and controls, or has a right to own and control in the 9
case of a separate legal entity, a like percentage of the electrical 10
output thereof. 11
(d) Any entity in which a public utility district participates, 12
either directly or as co-owner of a separate legal entity, in 13
constructing or developing a common facility pursuant to this 14
subsection shall comply with the provisions of chapter 39.12 RCW.15
(((4))) (3) Each participant shall defray its own interest and 16
other payments required to be made or deposited in connection with 17
any financing undertaken by it to pay its percentage of the money 18
furnished or value of property supplied by it for the planning, 19
acquisition and construction of any common facility, or any additions 20
or betterments thereto. The agreement shall provide a uniform method 21
of determining and allocating operation and maintenance expenses of 22
the common facility. 23
(((5))) (4) Each city, county acting under RCW 36.140.010, public 24
utility district, joint operating agency, regulated utility, and 25
cooperatives participating in the direct or indirect ownership or 26
operation of a common facility described in subsections (1) ((through 27
(3))) and (2) of this section shall pay all taxes chargeable to its 28
share of the common facility and the electric energy generated 29
thereby under applicable statutes as now or hereafter in effect, and 30
may make payments during preliminary work and construction for any 31
increased financial burden suffered by any county or other existing 32
taxing district in the county in which the common facility is 33
located, pursuant to agreement with such county or taxing district.34
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