SNOHOMISH COUNTY PUBLIC UTILITY DISTRICT NO. 1

Transcription

1 SNOHOMISH COUNTY PUBLIC UTILITY DISTRICT NO. 1 ADMIRALTY INLET PILOT TIDAL PROJECT: DRAFT LICENSE APPLICATION Submitted by: SNOHOMISH COUNTY PUBLIC UTILITY DISTRICT NO California Street Everett, WA December 28, Public Utility District No. 1 of Snohomish County

2 TABLE OF CONTENTS Executive Summary Initial Statement and General Content Requirements Verification Exhibit A: Description of Project Exhibit E: Environmental Report Exhibit F: General Design Drawings Exhibit G: Project Boundary Map

3 Executive Summary Introduction Snohomish County Public Utility District No. 1 (Snohomish) is the second largest publicly owned utility in the Pacific Northwest and the twelfth largest in the nation in terms of customers served. Snohomish has a rapidly growing service load and is required by the Washington State renewable portfolio standard to supply 15% of its load from new, renewable energy resources by These factors result in a need to add approximately 140 average MW of renewable energy resources to Snohomish s portfolio over the next ten years. Snohomish believes there is significant potential to generate clean, renewable, environmentally benign, and cost effective energy from tidal flows at selected sites in the Puget Sound, and that successful tidal energy demonstration in the Sound may enable significant commercial development in the U.S. resulting in important benefits for both the northwest region and the country. Snohomish also recognizes however, that in-water testing is required to address uncertainties in performance, cost, and environmental effects. The purpose of the Admiralty Inlet Pilot Tidal Project (FERC Project No ) (Project) is to address these uncertainties by gathering data via the temporary deployment, demonstration, and testing of tidal energy conversion technology in the Puget Sound. Snohomish is filing a Draft Application for an Original Hydrokinetic Pilot License with the Federal Energy Regulatory Commission (FERC or Commission) for the construction and operation of the proposed Project. The proposed Project will consist of two 10-meter diameter OpenHydro turbines located on the east side of Admiralty Inlet in Puget Sound, Washington, about 1 kilometer west of Whidbey Island. The turbines will be mounted on completely submerged gravity foundations and will be interconnected to the electrical grid on Whidbey Island. FERC regulates projects that generate power from water, and early in its efforts Snohomish reviewed with FERC the various options available to license this specific project. Snohomish Executive Summary Page 1

4 was issued a preliminary permit in March 2007 and had started the formal FERC process in January 2008 by submitting a Pre-Application Document (PAD) to FERC and stakeholders describing the Project and the environmental resources present in Admiralty Inlet and the surrounding Puget Sound. Following that submittal, FERC developed a process specific to the licensing of temporary or experimental hydrokinetic energy projects in order to study, monitor and evaluate the environmental, economic and cultural effects of hydrokinetic energy. This process was identified as the Pilot Licensing Process and Snohomish selected this process to pursue obtaining the FERC license. Additionally, FERC and the State of Washington have mutual interest regarding the development of hydrokinetic energy projects and signed a Memorandum of Understanding with respect to hydrokinetic projects in State of Washington. Some of the pertinent declarations include: - Timely processing of applications for regulatory and other approvals required for hydrokinetic energy projects in Washington State waters to promote clean, renewable sources of energy. - Creation of a process to make it possible for developers of all hydrokinetic energy projects to establish short-term or experimental projects within Washington State waters in order to study, monitor, and evaluate the environmental, economic and cultural effects of hydrokinetic energy. - It is the intent of FERC and the State of Washington that information developed during pilot projects will inform the decision making process for any longer term authorizations for hydrokinetic projects in Washington waters. - The State of Washington supports the efforts by FERC to establish procedures to allow for shorter term, experimental hydrokinetic energy projects with environmental safeguards through the pilot licensing process. Both agree that the pilot licensing process may be appropriate as a short term means of allowing hydrokinetic energy projects to proceed on a pilot basis while additional environmental and other data concerning the effects of such projects are gathered. The Project proposed by Snohomish aligns with these interests in the following manner: - Promotes a clean, renewable source of energy. Executive Summary Page 2

5 - Is a temporary, short term project with environmental safeguards. - Allows for study, monitoring and evaluation of the environmental, economic and cultural effects of hydrokinetic energy. - Incorporates an adaptive management approach for Project operation. The Project is already globally recognized as one of the leading marine energy efforts in the United States, has substantial support in the region, and has built an exceptionally strong project team. Snohomish, in partnership with the U.S. Department of Energy (DOE), the University of Washington (UW), the Northwest National Marine Renewable Energy Center (NNMREC), Pacific Northwest National Laboratory (PNNL), and the Electric Power Research Institute (EPRI) has conducted a thorough evaluation of potential tidal energy sites in the Puget Sound, and has selected Admiralty Inlet as the most appropriate location to establish a tidal energy research and development project. Snohomish engaged with over 30 tidal energy technology developers worldwide as part of its assessment and selection program. This effort included visits with the leading technology developers in the U.S., Europe, and Canada, as well as to the European Marine Energy Center (EMEC) in the Orkney Islands, Scotland. Following a detailed evaluation process, Snohomish selected OpenHydro as its technology partner for the demonstration Project. OpenHydro is one of the few tidal energy technology firms in the world to have successfully deployed and tested commercial scale tidal energy turbines. The OpenHydro turbine consists of a horizontal axis rotor with a single moving part and power take-off through a direct drive, permanent magnet generator. It is principally comprised of the rotor and the stator; there is no requirement for a gearbox. The design incorporates several important features to avoid or minimize environmental risk: No requirement for oil/grease lubrication. The rotor blade tips are retained within the outer housing and therefore are not exposed. The rotor has a low rotational speed (maximum speed less than 18 rpm). The ability exists for the rotor to be stopped quickly and remotely. Cavitation is prevented by design at specified deployment depth. Executive Summary Page 3

6 The deployment method and foundation design eliminate the need for any drilling or piling operations, as well as facilitate potential relocation and complete removal of both the foundation and the turbine. In fact, both the turbines and their foundations are specifically designed to be completely removable for scheduled maintenance or other needs. The Project would be of very limited scale relative to Admiralty Inlet, representing less than 0.05% of the Inlet s cross-section thereby significantly diminishing the likelihood of adverse environmental effects. Likewise, the water depth at the site and its location well outside of the shipping channel mitigates navigational concerns. It is important to note that Admiralty Inlet is the primary entrance to Puget Sound and represents the main shipping channel through which all commercial, Naval, and other significant marine traffic passes while transiting to and from the Sound s several Naval stations and ports of Everett, Seattle, Tacoma, and Olympia. The environmental effects represented by this level of navigational traffic and activity in a busy commercial waterway would reasonably be expected to dwarf any potential effects of Snohomish s small, temporary research and development effort. While they are limited in scope, existing data and assessments regarding currently operating and proposed tidal projects are notable in that they document no substantial or unanticipated environmental risk. The EMEC site (where OpenHydro turbines were initially deployed) represents a very ecologically diverse and productive marine ecosystem which is home to a number of fish and marine mammal species. Fish and shellfish species include: mackerel, herring, haddock, cod, monkfish, several flat fish species, lobster, crab, and scallops. Marine mammal species include: otters, seals, minke whale, harbor porpoise, white-sided dolphin, Executive Summary Page 4

7 common dolphin, killer whale, and pilot whale. Leatherback turtles also regularly visit Scottish waters between August and November. Operation of the OpenHydro turbine installation has been continuously videotaped while in operation since 2006 and no marine life incidents have been recorded. Review and analysis of the videotape data is ongoing, but to date indicates that fish and marine mammals avoid and do not interact with the device while it is rotating, but as might be expected, some fish species do aggregate downstream of the turbine at tidal current velocities too low for the turbine to rotate. Additionally, a comprehensive Environmental Assessment report to Canadian federal and provincial governments was completed for the deployment of a 10 meter OpenHydro turbine in the Bay of Fundy, Nova Scotia (this deployment occurred in November, 2009). The Bay of Fundy is also an ecologically diverse ecosystem including marine mammals and salmonids and other migratory species. The likely effects of the project on the environment were found to be limited in scope and duration (AECOM 2009). Pilot License Criteria The FERC criteria for using the Pilot Project Licensing Process specify that a proposed project must be: (1) small; (2) short term; (3) not located in sensitive areas; (4) removable and able to be shut down on short notice; (5) removed, with the site restored, before the end of the license term (unless a new license is granted); and (6) initiated with a draft application that is adequate as filed to support environmental analysis. Snohomish submits that the Admiralty Inlet Pilot Tidal Project is a good candidate for the expedited Pilot Project Licensing Process and fully meets the above criteria. Specifically, the Project will consist of only two turbines with a combined capacity of approximately one megawatt. The Project is located outside the shipping lane in Admiralty Inlet, a busy commercial waterway, and will have a short license term sufficient to enable in water testing. The turbines and their foundations are specifically designed to enable quick shutdown and removal, with minimal site restoration required, by virtue of there being no drilling or pilings associated with the installation. Through its pre-installation studies Snohomish has substantially Executive Summary Page 5

8 augmented the already extensive collection of data available for the Admiralty Inlet region to support a thorough and complete environmental analysis for the Project. Consultation Snohomish was issued a FERC preliminary permit for the Admiralty Inlet site on March 9, 2007, though as early as July of 2006 Snohomish had informed key stakeholders (tribes, state agencies, federal agencies, NGO s, communities, etc.) of its intention to pursue tidal energy exploration in the Puget Sound. An initial project meeting was held with numerous stakeholders (tribes, state agencies, federal agencies, NGOs) on February 23, 2007 to formally introduce the project, answer questions, and discuss the consultation approach going forward. During the nearly three years since this initial meeting Snohomish has conducted almost 100 formal project communication meetings including dialogue with approximately 50 different stakeholder groups. These have included formal consultation meetings, community town hall meetings, conference presentations, NGO meetings, and more. Snohomish has carefully considered all questions, feedback, and comments gathered during this process and rigorously endeavored to design both the physical project and study plans in the most responsive and collaborative way possible. Additionally, Snohomish has sought to directly involve key regional stakeholders and marine experts in its study efforts where practical. As one example, Beam Reach Marine Science and Sustainability School, the Whale Museum, and the Orca Network, all strong regional stewards for killer whales in Puget Sound, worked with Snohomish to design the Project s Marine Mammal Study Plan and are currently conducting the study in partnership with the Sea Mammal Research Unit. The Sea Mammal Research Unit is associated with the University of St. Andrews in Scotland and is currently engaged with efforts to study sea mammal interactions with tidal turbines at projects in the UK. Contents of the Application As prescribed by FERC Pilot License guidelines and 18 C.F.R. 4.61, this application consists of: Initial Statement and General Content Requirements Exhibits A, F, and G Executive Summary Page 6

9 Environmental Report Exhibit A describes the proposed project components and operation. Corresponding to Exhibit A, the Project works are shown in Exhibit F, Project Plans, and Exhibit G, Project maps. In addition to the Draft License Application, Snohomish is filing a justification statement for use of the Pilot Licensing Process, a process plan and schedule, request for waivers, and Notice of Intent to file a hydrokinetic pilot project license. Conclusion The marine energy industry today is in its infancy; the responsible deployment, testing and monitoring of commercial-scale ocean energy devices in real world sites is critical to exploring this potentially abundant, clean, renewable, domestic energy resource. Consistent with the interests of the State of Washington and FERC, the data from this Project will inform Snohomish s potential development of other sites in and around Puget Sound, but importantly will also provide relevant information for other marine energy developers in the nation. Because this is a nascent industry, the body of knowledge relative to marine energy technology, performance, environmental effects and monitoring approaches is growing substantially week by week. Snohomish fully expects that the Project will benefit from knowledge gained in the industry, perhaps most notably from the OpenHydro/Nova Scotia Power Project in the Bay of Fundy, during the period between the filing of this license application and the eventual deployment in the Puget Sound. Snohomish will ensure for the effective leveraging of this new information, but maintains that currently available information is more than sufficient to move forward with the Project in a responsible manner. To consider new information as it is developed at the Project or elsewhere, Snohomish will incorporate an adaptive management approach to continue to maintain a dialogue with stakeholders regarding the results of environmental monitoring during the life of the Project. These results would be used in combination with an understanding of the ecosystem and information from other relevant sources to make adjustments to study methods as appropriate and to manage or change aspects of the Project operation, as necessary, to avoid or minimize unexpected or undesirable impacts on resources. The adaptive management process allows for immediate action where necessary to address a critical adverse effect of the Project, should that occur. Executive Summary Page 7

10 The Project is proposed as a temporary pilot scale project (not commercial scale) with limited scale relative to Admiralty Inlet. Information collected through the deployment and monitoring of the Project will be used to support the decision making process for any longer term authorizations for hydrokinetic projects in Washington waters. There has been extensive discussion regarding the amount of baseline information required prior to deploying the Project and it is critical that baseline and project monitoring requirements are commensurate with the small scale and limited duration of the Project. Snohomish s tidal energy efforts represent one of the primary tidal energy research efforts in the United States, continue to have the strong support of the U.S. Department of Energy s Advanced Water Power Projects program, and are consistent with national energy policy priorities. On December 10, 2009, in an address to the United Nations Conference on Climate Change in Copenhagen, Secretary of the Interior Ken Salazar stated the following: I am here today in Copenhagen on behalf of President Obama to deliver a simple message: the United States of America understands the danger that climate change poses to our world and we are committed to confronting it. Together with our partners in the international community, we will help build a strong, achievable, carbon reduction strategy. And we will deploy American technology, American vision, and American ingenuity for the benefit of our planet and all peoples. We must manage our lands and oceans for these three new functions - renewable energy production, carbon capture and storage, and climate adaptation if we are to tackle the climate crisis. On renewable energy: the truth is - until now - America s vast deserts, plains, forests and oceans have been largely unexplored for their vast clean energy potential. The Admiralty Inlet Pilot Tidal Project represents such an application of technology, vision, and ingenuity, here in the United States, to produce renewable energy from the country s oceans. Projects such as the Admiralty Inlet Pilot Tidal Project represent the early steps in exploring ways to harness tidal energy. With a capacity of 1.0 MW, the Admiralty Inlet Project would provide approximately 765 MWh annually of clean renewable ocean energy. The successful development of the Admiralty Inlet Project would demonstrate the potential of an emergent renewable energy industry segment with the goal of bringing clean, competitively-priced electricity to commercial and residential consumers in Washington State and other coastal U.S. states. From the future use of the Project s power, its displacement of non-renewable fossil- Executive Summary Page 8

11 fueled generation and its contribution to a diversified generation mix, the Project will help meet a need for renewable, emission free, and environmentally responsible energy in the Puget Sound region. Given the pressing need to develop new renewable energy sources, in Washington State and in the U.S., to reduce greenhouse gas emissions, rely less on foreign fuel sources, and to meet growing energy demands, Snohomish urges the Commission to issue a pilot license for the Project. Executive Summary Page 9

12 UNITED STATES OF AMERICA BEFORE THE FEDERAL ENERGY REGULATORY COMMISSION Admiralty Inlet Pilot Tidal Project ) Project No DRAFT APPLICATION FOR A HYDROKINETIC PILOT PROJECT LICENSE Initial Statement and General Content Requirements Initial Statement under 18 C.F.R. 4.61(b) 1. Public Utility District No. 1 of Snohomish County, Washington (Snohomish), submits to the Federal Energy Regulatory Commission this Draft Application for a hydrokinetic pilot project license for the Admiralty Inlet Pilot Tidal Project (Project), FERC Project No , as described hereinafter. 2. The location of the project is: State: Washington State County: Island County Town: City of Port Townsend located to the west Body of Water: Admiralty Inlet, Puget Sound Admiralty Inlet lies between the Olympic Peninsula on the mainland of the State of Washington (Jefferson County, Kitsap County) and Whidbey Island (Island County), and connects the northwestern end of Puget Sound to the Strait of Juan de Fuca (providing access to the Pacific Ocean and the Inland Passage to Alaska). The Project will be located in the eastern portion of Admiralty Inlet, entirely within Island County. 3. The exact name, address, and telephone number of the applicant are: Public Utility District No. 1 of Snohomish County, Washington P.O. Box California Street Everett, WA Tel: Initial Statement and General Content Requirements Page 1

13 4. The exact name, address, and telephone number of each person authorized to act as agent for the applicant in this application are: Steven J. Klein General Manager Public Utility District No. 1 of Snohomish County, Washington P.O. Box California Street Everett, WA Tel: Fax: sjklein@snopud.com 5. The applicant is a municipality as defined in the Federal Power Act (16 U.S.C. 796(7)) and is claiming preference under section 7(a) of the Federal Power Act. 6. (i) The statutory or regulatory requirements of the state in which the project would be located that affect the project as proposed with respect to bed and banks and the appropriation, diversion, and use of the water for power purposes, and with respect to the right to engage in the business necessary to accomplish the purposes of the license under the Federal Power Act, are: Title 54 of the, authorizing the development and operation of Public Utility Districts to engage in the development, operation, and distribution of electric power (and permitting certain other activities), is attached to this application as Appendix 1. Snohomish is a publicly-owned utility and a municipal corporation in the State of Washington, formed by a vote of the people in Snohomish County in 1936 for the purpose of providing electric and water service. The utility is governed by three elected commissioners who represent separate districts within the service territory. The Board of Commissioners sets rates and policy, and appoints the general manager to run the utility s day-to-day operations. Snohomish serves the Snohomish County and Camano Island communities near where the Project will be located. Snohomish is statutorily obligated to serve its load, and a recent study by Conway Pedersen Economics found that Snohomish s service territory is expected to experience unprecedented growth in coming years. Further, as a load-serving utility, Snohomish is subject to impending state and federal legislation and regulatory action that will impose strict requirements on the acquisition of renewable generation. Tidal energy is one of the few viable supply options in the immediate vicinity of Snohomish s service territory available to fulfill these types of statutory obligations. Localized generation provides the added benefit of relieving stress on an already congested regional transmission grid. Initial Statement and General Content Requirements Page 2

14 In order to construct the Project as proposed, Snohomish must receive a water quality certification from the Washington State Department of Ecology (WDOE) under Section 401 of the Clean Water Act, and apply to WDOE for consistency certification under the Coastal Zone Management Act. (ii) The steps which the applicant has taken or plans to take to comply with each of the laws cited above are: Snohomish is working with WDOE to comply with the requirements of the Clean Water Act and Coastal Zone Management Act in the development of its applications for authorizations under these statutes. Snohomish will file its water quality certification and request for consistency certification when it files it Final License Application for the Project. 7. Project Description: The Project is a hydropower project that proposes to utilize the kinetic energy of tidal streams to power two turbines. The Project is located under water in a section of Admiralty Inlet in the northwestern portion of Puget Sound, an inland marine waterway of the northern Pacific Ocean. The Project will consist of two OpenHydro turbines, which are closed-shroud, open-centered devices with no exposed blade tips, and are installed without anchors or pilings. The Project will have an installed capacity of approximately 1 megawatt (MW), with power transferred to the grid via seabed cable. This cable will use directionalboring technology near land to minimize or eliminate any shoreline disturbance. The Project will include appurtenant facilities for interconnection, operation, monitoring, and safety. While the Project will produce a modest amount of electric energy, the primary purpose of the Project is to conduct research and gather data to inform questions regarding the technical, economic, and environmental viability of tidal energy generation generally, and to inform Snohomish s potential further development of tidal energy generation in Admiralty Inlet and other sites in and around Puget Sound. 8. Lands of the United States affected: No lands of the United States will be affected by the Project. 9. Construction of the Project is planned to start within twenty-four (24) months, and is planned to be completed within forty-two (42) months, from the date of issuance of the license. Initial Statement and General Content Requirements Page 3

15 General Content Requirements of 18 C.F.R. 5.18(a) 1. Identify every person, citizen, association of citizens, domestic corporation, municipality, or state that has or intends to obtain and will maintain any proprietary right necessary to construct, operate, or maintain the project: As the Project proponent, Snohomish is the only entity that has or intends to acquire all proprietary rights to construct, operate, and maintain the Project. 2. Identify (providing names and mailing addresses): (i) Every county in which any part of the project, and any Federal facilities that would be used by the project, would be located: The Project lies entirely within the political boundary of Island County. The contact information for Island County is: Island County 1 NE 7th St P.O. Box 5000 Coupeville, WA No Federal facilities would be used by the Project. (ii) Every city, town, or similar local political subdivision: (A) In which any part of the project, and any Federal facilities that would be used by the project, would be located: No federal facilities would be used by the Project. The Project boundary would not incorporate or encroach upon the boundaries of any city, town, or similar political subdivision. (B) That has a population of 5,000 or more people and is located within 15 miles of the project dam: No dam is proposed to be used by the Project; however, those cities and towns with a population of 5,000 or more that lie within 15 miles of the Project include: City of Everett City of Port Townsend 2930 Wetmore 250 Madison St. Everett, WA Port Townsend, WA City of Oak Harbor City of Stanwood 865 SE Barrington Drive th St. NW Oak Harbor, WA Stanwood, WA Initial Statement and General Content Requirements Page 4

16 City of Edmonds City of Mukilteo 121 5th Ave N 4480 Chennault Beach Rd. Edmonds, WA Mukilteo, WA City of Lynnwood City of Poulsbo th Ave W Jensen Way NE PO Box 5008 PO Box 98 Lynnwood, WA Poulsbo, WA 98370c (iii) Every irrigation district, drainage district, or similar special purpose political subdivision: (A) In which any part of the project, and any Federal facilities that would be used by the project, would be located: No federal facilities would be used by the Project. No special purpose political subdivisions exist within the Project boundary for the Project. (B) That owns, operates, maintains, or uses any project facilities that would be used by the project: No federal facilities would be used by the Project. No special purpose political subdivisions exist within the Project boundary. (iv) Every other political subdivision in the general area of the project that there is reason to believe would likely be interested in, or affected by, the application: No other known political subdivision exists within the general area; however, Snohomish will consult with all agencies and organizations with regulatory authority over the waters and resources of Admiralty Inlet in the licensing process. (v) All Indian tribes that may be affected by the project: Jamestown S Klallam Tribe Lower Elwha Klallam Tribe 1033 Old Blyn Highway 2851 Lower Elwha Road Sequim, WA Port Angeles, WA Lummi Nation Port Gamble S Klallam Indian Tribe 2616 Kwina Road Little Boston Road NE Bellingham, WA Kingston, WA Sauk-Suiattle Indian Tribe Suquamish Tribe 5318 Chief Brown Land Suquamish Way Darrington, WA Suquamish, WA Initial Statement and General Content Requirements Page 5

17 Swinomish Indian Tribal Tulalip Tribes of Washington Community 6406 Marine Drive Moorage Way Tulalip, WA LaConner, WA Upper Skagit Indian Tribe Community Plaza Way Sedro Wooley, WA For a license (other than a license under section 15 of the Federal Power Act) state that the applicant has made, either at the time of or before filing the application, a good faith effort to give notification by certified mail of the filing of the application to: (A) Every property owner of record of any interest in the property within the bounds of the project, or in the case of the project without a specific project boundary, each such owner of property which would underlie or be adjacent to any project works including any impoundments: Snohomish is sending notification by certified mail to the State of Washington and Seattle Pacific University, the only property owners of record with any interest in the property within the Project boundary. (B) The entities identified in paragraph 2 of this section, as well as any other Federal, state, municipal or other local government agencies that there is reason to believe would likely be interested in or affected by such application. Snohomish is sending notification of the filing of the Draft License Application, Notification of Intent, and accompanying documents by certified mail to the entities identified in paragraph 2 of this section and the Federal, state, municipal or other local government agencies that are likely to be interested in or affected by such application. Initial Statement and General Content Requirements Page 6

18 APPENDIX 1

19 TITLE 54 RCW PUBLIC UTILITY DISTRICTS Chapters General provisions Formation--Dissolution--Elections Commissioners Powers Condemnation proceedings Finances Privilege taxes Consolidation and annexation Liability to other taxing districts Five commissioner districts Nuclear, thermal, electric generating power facilities--joint development Agreements between electrical public utilities and cooperatives Voluntary contributions to assist low-income customers. Acquisition of electrical distribution property from public utility district by cities and towns: RCW Conversion of overhead electric utility to underground: Chapter RCW, RCW through Conveyance of real property by public bodies--recording: RCW Credit card use by local governments: RCW Electric energy, falling waters--sale or purchase authorized: RCW Electricity generation from biomass energy: Chapter RCW. Hospitalization and medical aid for public employees and dependents--premiums, governmental contributions authorized: RCW , Joint operating agencies: Chapter RCW. Local governmental organizations, actions affecting boundaries, etc., review by boundary review board: Chapter RCW. Municipal corporation may authorize investment of funds which are in custody of county treasurer or other municipal corporation treasurer: RCW Page 1

20 Municipal utilities: Chapter RCW. Public bodies may retain collection agencies to collect public debts--fees: RCW Water-sewer districts, disposition of property to public utility district: Chapter RCW. Sections CHAPTER RCW GENERAL PROVISIONS Definitions Districts authorized Restrictions on invading other municipalities Annexation of territory Annexation of territory--coordination among county officials County with federal nuclear reservation within its boundaries--special procedure for addition or withdrawal of territory from public utility district Utilities within a city or town--restrictions Locally regulated utilities--attachments to poles--rates--contracting Group employee insurance--annuities--retirement income policies Employee benefits--district may continue to pay premiums after employee retires District elections Contracts for work or materials--notice--exemptions Bids--Deposit--Low bidder claiming error--contract--bond--definitions Alternative bid procedure Electrical facility construction or improvement--bid proposals--contract proposal forms--conditions for issuance--appeals Minimum wages Application of RCW through to certain service provider agreements under chapter RCW Wholesale power--procedure as to rate filing--definition--duty to furnish to district Planning powers Employee benefit plans when private utility acquired--rights, powers and duties as to existing private employee benefit plans Employee benefit plans when private utility acquired--admission to district's employee plan--service credit--contributions--benefits. Page 2

21 Employee benefit plans when private utility acquired--agreements and contracts--prior rights preserved Assumption of obligations of private pension plan when urban transportation system acquired Collective bargaining authorized for employees Collective bargaining authorized for districts Production and distribution of biodiesel, ethanol, and ethanol blend fuels--crop purchase contracts for dedicated energy crops. Lien for labor and materials on public works: Chapter RCW. Local governmental organizations, actions affecting boundaries, etc., review by boundary review board: Chapter RCW. Traffic control at work sites: RCW Utility poles, unlawful to attach object to--penalty: RCW RCW Definitions. As used in this title "revenue obligation" or "revenue obligations" mean and include bonds, notes, warrants, certificates of indebtedness, or any other evidences of indebtedness issued by a district which, by the terms thereof, shall be payable from the revenues of its public utilities. [1959 c ] "Wholesale power" defined: RCW RCW Districts authorized. Municipal corporations, to be known as public utility districts, are hereby authorized for the purposes of chapter 1, Laws of 1931 and may be established within the limits of the state of Washington, as provided herein. [1931 c 1 2; RRS ] Purpose c 1: "The purpose of this act is to authorize the establishment of public utility districts to conserve the water and power resources of the State of Washington for the benefit of the people thereof, and to supply public utility service, including water and electricity for all uses." [1931 c 1 1.] Severability--Construction c 1: "Adjudication of invalidity of any section, clause or part of a section of this act shall not impair or otherwise affect the validity of the act as a whole or any other part thereof. Page 3

22 The rule of strict construction shall have no application to this act, but the same shall be liberally construed, in order to carry out the purposes and objects for which this act is intended. When this act comes in conflict with any provision, limitation or restriction in any other law, this act shall govern and control." [1931 c 1 11.] RCW Restrictions on invading other municipalities. Chapter 1, Laws of 1931, shall not be deemed or construed to repeal or affect any existing act, or any part thereof, relating to the construction, operation and maintenance of public utilities by irrigation or water-sewer districts or other municipal corporations, but shall be supplemental thereto and concurrent therewith. No public utility district created hereunder shall include therein any municipal corporation, or any part thereof, where such municipal corporation already owns or operates all the utilities herein authorized: PROVIDED, that in case it does not own or operate all such utilities it may be included within such public utility district for the purpose of establishing or operating therein such utilities as it does not own or operate: PROVIDED, FURTHER, That no property situated within any irrigation or water-sewer districts or other municipal corporations shall ever be taxed or assessed to pay for any utility, or part thereof, of like character to any utility, owned or operated by such irrigation or water districts or other municipal corporations. [1999 c ; 1931 c 1 12; RRS ] Part headings not law c 153: See note following RCW Irrigation districts: Title 87 RCW. Municipal utilities: RCW , and chapter RCW. Water-sewer districts: Title 57 RCW. RCW Annexation of territory. In addition to other powers authorized in Title 54 RCW, public utility districts may annex territory as provided in this section. The boundaries of a public utility district may be enlarged and new contiguous territory added pursuant to the procedures for annexation by cities and towns provided in RCW through The provisions of these sections concerning community municipal corporations, review boards, and comprehensive plans, however, do not apply to public utility district annexations. For purposes of conforming with such procedures, the public utility district is deemed to be the city or town and the board Page 4

23 of commissioners is deemed to be the city or town legislative body. Annexation procedures provided in this section may only be used to annex territory that is both: (1) Contiguous to the annexing public utility district; and (2) located within the service area of the annexing public utility district. As used in this section, a public utility district's "service area" means those areas whether located within or outside of the annexing public utility district's boundaries that were generally served with electrical energy by the annexing public utility district on January 1, Such service area may, or may not, have been recognized in an agreement made under chapter RCW, but no area may be included within such service area that was generally served with electrical energy on January 1, 1987, by another public utility as defined in RCW An area proposed to be annexed may be located in the same or a different county as the annexing public utility district. If an area proposed to be annexed is located within the boundaries of another public utility district, annexation may be initiated only upon petition of registered voters residing in the area in accordance with RCW and adoption by the boards of commissioners of both districts of identical resolutions stating (a) the boundaries of the area to be annexed, (b) a determination that annexation is in the public interest of the residents of the area to be annexed as well as the public interest of their respective districts, (c) approval of annexation by the board, (d) the boundaries of the districts after annexation, (e) the disposition of any assets of the districts in the area to be annexed, (f) the obligations to be assumed by the annexing district, (g) apportionment of election costs, and (h) that voters in the area to be annexed will be advised of lawsuits that may impose liability on the annexed territory and the possible impact of annexation on taxes and utility rates. If annexation is approved, the area annexed shall cease to be a part of the one public utility district at the same time that it becomes a part of the other district. The annexing public utility district shall assume responsibility for providing the area annexed with the services provided by the other public utility district in the area annexed. [1987 c 292 2; 1983 c ] Consolidation and annexation: Chapter RCW. RCW Annexation of territory--coordination among county officials. When territory has been added to a public utility district in accordance with RCW , the supervisor of elections and other officers of the county in which the public utility district first operated shall coordinate elections, the levy and collection of taxes, and other necessary duties with the appropriate county officials of the other county. [1987 c ] Page 5

24 RCW County with federal nuclear reservation within its boundaries--special procedure for addition or withdrawal of territory from public utility district. (1) Any voting precinct located within a county that has a federal nuclear reservation within its boundaries is: (a) Withdrawn from a public utility district if the precinct receives at least one electric distribution, water, or sewer service from a city, and no electric distribution, water, or sewer service from a public utility district; (b) Included in a public utility district if any portion of the precinct receives at least one electric distribution, water, or sewer service from the public utility district. (2) For voting precincts that meet the requirements of subsection (1) of this section, within ten days after March 24, 2004, and for voting precincts that later meet the requirements of subsection (1) of this section, within thirty days of meeting the requirements: (a) The city that provides any electric distribution, water, or sewer service to a precinct that is withdrawn from a public utility district under subsection (1) of this section shall submit to the public utility district and the county auditor a list of street addresses, or map of the areas to which any service is provided; (b) The public utility district that provides any electric distribution, water, or sewer service to a precinct that is included in the public utility district under subsection (1) of this section shall submit to the city or town and the county auditor a list of street addresses, or map of the areas to which any service is provided. (3) Within ten days of receipt of the information required under subsection (2) of this section, the auditor shall determine which voting precincts are required to be withdrawn from or included in the public utility district, and provide that information to the public utility district commissioners who shall, within ten days, revise the boundaries of the district in conformance with RCW without dividing any voting precinct. (4) Unless otherwise provided in an agreement between the public utility district and the city or town, taxes or assessments levied or assessed against property located in an area withdrawn from a public utility district shall remain a lien and be collected as by law (a) if the taxes or assessments were levied or assessed before the withdrawal or (b) if the levies or assessments were made to pay or secure an obligation of the district duly incurred or issued before the withdrawal. The withdrawal of an area from the boundaries of a district does not exempt any property therein from taxation or assessment for the purpose of paying the costs of retiring or redeeming any obligation of the district duly incurred or issued before the withdrawal. (5) Except as set forth in subsection (4) of this section, a public utility district may not levy or impose any taxes upon Page 6

25 property located within those voting precincts withdrawn from the public utility district. (6) Nothing in chapter 113, Laws of 2004 limits the authority of public utility districts and cities or towns to enter into service agreements that are otherwise permitted by law. [2004 c ] Effective date c 113: "This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately [March 24, 2004]." [2004 c ] RCW Utilities within a city or town--restrictions. A district shall not construct any property to be utilized by it in the operation of a plant or system for the generation, transmission, or distribution of electric energy for sale, on the streets, alleys, or public places within a city or town without the consent of the governing body of the city or town and approval of the plan and location of the construction, which shall be made under such reasonable terms as the city or town may impose. All such properties shall be maintained and operated subject to such regulations as the city or town may prescribe under its police power. [1957 c Prior: (i) 1941 c 245 3a; Rem. Supp (ii) 1941 c 245 1, part; Rem. Supp ] RCW Locally regulated utilities--attachments to poles--rates--contracting. (1) As used in this section: (a) "Attachment" means the affixation or installation of any wire, cable, or other physical material capable of carrying electronic impulses or light waves for the carrying of intelligence for telecommunications or television, including, but not limited to cable, and any related device, apparatus, or auxiliary equipment upon any pole owned or controlled in whole or in part by one or more locally regulated utilities where the installation has been made with the necessary consent. (b) "Licensee" means any person, firm, corporation, partnership, company, association, joint stock association, or cooperatively organized association, which is authorized to construct attachments upon, along, under, or across public ways. (c) "Locally regulated utility" means a public utility district not subject to rate or service regulation by the utilities and transportation commission. (d) "Nondiscriminatory" means that pole owners may not arbitrarily differentiate among or between similar classes of licensees approved for attachments. (2) All rates, terms, and conditions made, demanded, or received by a locally regulated utility for attachments to its poles must be just, reasonable, nondiscriminatory, and sufficient. A locally regulated utility shall levy attachment Page 7

26 space rental rates that are uniform for the same class of service within the locally regulated utility service area. (3) A just and reasonable rate must be calculated as follows: (a) One component of the rate shall consist of the additional costs of procuring and maintaining pole attachments, but may not exceed the actual capital and operating expenses of the locally regulated utility attributable to that portion of the pole, duct, or conduit used for the pole attachment, including a share of the required support and clearance space, in proportion to the space used for the pole attachment, as compared to all other uses made of the subject facilities and uses that remain available to the owner or owners of the subject facilities; (b) The other component of the rate shall consist of the additional costs of procuring and maintaining pole attachments, but may not exceed the actual capital and operating expenses of the locally regulated utility attributable to the share, expressed in feet, of the required support and clearance space, divided equally among the locally regulated utility and all attaching licensees, in addition to the space used for the pole attachment, which sum is divided by the height of the pole; and (c) The just and reasonable rate shall be computed by adding one-half of the rate component resulting from (a) of this subsection to one-half of the rate component resulting from (b) of this subsection. (4) For the purpose of establishing a rate under subsection (3)(a) of this section, the locally regulated utility may establish a rate according to the calculation set forth in subsection (3)(a) of this section or it may establish a rate according to the cable formula set forth by the federal communications commission by rule as it existed on June 12, 2008, or such subsequent date as may be provided by the federal communications commission by rule, consistent with the purposes of this section. (5) Except in extraordinary circumstances, a locally regulated utility must respond to a licensee's application to enter into a new pole attachment contract or renew an existing pole attachment contract within forty-five days of receipt, stating either: (a) The application is complete; or (b) The application is incomplete, including a statement of what information is needed to make the application complete. (6) Within sixty days of an application being deemed complete, the locally regulated utility shall notify the applicant as to whether the application has been accepted for licensing or rejected. In extraordinary circumstances, and with the approval of the applicant, the locally regulated utility may extend the sixty-day timeline under this subsection. If the application is rejected, the locally regulated utility must provide reasons for the rejection. A request to attach may only be denied on a nondiscriminatory basis (a) where there is insufficient capacity; or (b) for reasons of safety, reliability, or the inability to meet generally applicable engineering standards and practices. (7) Nothing in this section shall be construed or is intended to confer upon the utilities and transportation Page 8