Washington Business Fall 2015 | Legislative Review | Page 21

issue area reports | environment

ESSB 5735

providing incentives
for carbon reduction
investments
Failed/AWB Supported

As previously mentioned, AWB focused its
climate policy efforts in the 2015 legislative
session on providing responsible solutions and ideas to reduce emissions while
maintaining a strong economy. Engrossed
Substitute Senate Bill 5735, sponsored by
Sen. Doug Ericksen, R-Ferndale, is a great
example of how Washington can continue
to build upon its previous successes and
continue to reduce overall emissions. At
the same time, this kind of approach offers
an incentive-based pathway to reduce
emissions in contrast to a top-down, onesize-fits all approach. In essence, ESSB 5735
would have allowed utilities complying

under Initiative 937 to invest in emission
reductions along with other community
partners, and allow for a portion of that
investment to count toward compliance
under I-937 obligations. Unfortunately, the
environmental community opposed the
bill because they said these investments
deterred investments in clean energy.

ESB 5874 /2SHB 2002

promoting the retirement
of eligible coal plants
Failed/AWB Neutral

While more than two-thirds of Washington’s electricity comes from clean,
renewable energy sources, some of our
energy also comes from coal-fired facilities.
Given the diversity of Washington’s energy
portfolio, moving from one energy source
to another can be extremely complex. This

year, the Legislature considered a measure
to help promote the retirement of certain
coal-fired facilities, while potentially creating a pathway to eliminate other uses of
coal in the future. Engrossed Senate Bill
5874, sponsored by Sen. Doug Ericksen,
R-Ferndale, and Second Substitute House
Bill 2002, sponsored by Rep. Jeff Morris,
D-Mount Vernon, attempted to incentivize this effort through a series of policies
that would have dealt with environmental
mitigation, securitization and other financial commitments from closing a facility,
as well as provide ratepayer protections,
replacement power and coordination
between state and federal regulations.
While both bills attempted to address these
generalized issues, ESB 5874 was the only
bill to move out of the chamber of origin,
as a study bill. In the end, neither bill managed to gain the support needed to pass.

E2SHB 1095

promoting thermal energy
Passed/AWB Neutral

Patrick Jablonski (right) of Nucor Steel Seattle, independent farmer Terry Willis of Grays Harbor
County, Tom Walrath of T.E. Walrath Trucking, and Steve Clark of Genese Heating & Fuel testify
about the impact a cap-and-trade tax bill would have on their businesses.

Bill considered as part of
AWB’s voting record

Favorable outcome for
Washington businesses

Engrossed Second Substitute House Bill
1095, introduced by Rep. Jeff Morris,
D-Mount Vernon, is another in a series
of bills that sought to increase Washington’s energy efficiency and independence.
The concept behind the bill was to look
for opportunities to increase the use of
combined heat and power systems, taking
advantage of possible thermal opportunities. The business community was
concerned with provisions in the bill as
introduced that would have required
onerous rules. These rules would have
governed purchase agreements from combined heat and power systems, duplicative
reporting requirements with the federal
government on boiler systems and a voluntary program by the state Utilities and
Transportation Commission to incent the
reduction of emissions. After removing
these provisions, the bill was passed by
both chambers and signed into law.

Missed Opportunities

special edition 2015

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