RCW 43.325.020
Energy freedom program -- Established.
(Expires June 30, 2016.)
(1) The energy freedom program is
established within the department. The director may establish
policies and procedures necessary for processing, reviewing, and
approving applications made under this chapter.
(2) When reviewing applications submitted under this
program, the director shall consult with those agencies and other
public entities having expertise and knowledge to assess the
technical and business feasibility of the project and probability
of success. These agencies may include, but are not limited to,
Washington State University, the University of Washington, the
department of ecology, the department of natural resources, the
department of agriculture, the department of general
administration, local clean air authorities, the Washington state
conservation commission, and the clean energy leadership council
created in section 2, chapter 318, Laws of 2009.
(3) Except as provided in subsections (4) and (5) of this
section, the director, in cooperation with the department of
agriculture, may approve an application only if the director
finds:
(a) The project will convert farm products, wastes,
cellulose, or biogas directly into electricity or biofuel or
other coproducts associated with such conversion;
(b) The project demonstrates technical feasibility and
directly assists in moving a commercially viable project into the
marketplace for use by Washington state citizens;
(c) The facility will produce long-term economic benefits to
the state, a region of the state, or a particular community in
the state;
(d) The project does not require continuing state support;
(e) The assistance will result in new jobs, job retention,
or higher incomes for citizens of the state;
(f) The state is provided an option under the assistance
agreement to purchase a portion of the fuel or feedstock to be
produced by the project, exercisable by the department of general
administration;
(g) The project will increase energy independence or
diversity for the state;
(h) The project will use feedstocks produced in the state,
if feasible, except this criterion does not apply to the
construction of facilities used to distribute and store fuels
that are produced from farm products or wastes;
(i) Any product produced by the project will be suitable for
its intended use, will meet accepted national or state standards,
and will be stored and distributed in a safe and environmentally
sound manner;
(j) The application provides for adequate reporting or
disclosure of financial and employment data to the director, and
permits the director to require an annual or other periodic audit
of the project books; and
(k) For research and development projects, the application
has been independently reviewed by a peer review committee as
defined in RCW 43.325.010 and the findings delivered to the
director.
(4) When reviewing an application for a refueling project,
the coordinator may award a grant or a loan to an applicant if
the director finds:
(a) The project will offer alternative fuels to the motoring
public;
(b) The project does not require continued state support;
(c) The project is located within a green highway zone as
defined in RCW 43.325.010;
(d) The project will contribute towards an efficient and
adequately spaced alternative fuel refueling network along the
green highways designated in RCW 47.17.020, 47.17.135, and 47.17.140; and
(e) The project will result in increased access to
alternative fueling infrastructure for the motoring public along
the green highways designated in RCW 47.17.020, 47.17.135, and 47.17.140.
(5) When reviewing an application for energy efficiency
improvements, renewable energy improvements, or innovative energy
technology, the director may award a grant or a loan to an
applicant if the director finds:
(a) The project or program will result in increased access
for the public, state and local governments, and businesses to
energy efficiency improvements, renewable energy improvements, or
innovative energy technologies;
(b) The project or program demonstrates technical
feasibility and directly assists in moving a commercially viable
project into the marketplace for use by Washington state
citizens;
(c) The project or program does not require continued state
support; or
(d) The federal government has provided funds with a limited
time frame for use for energy independence and security, energy
efficiency, renewable energy, innovative energy technologies, or
conservation.
(6)(a) The director may approve a project application for
assistance under subsection (3) of this section up to five
million dollars. In no circumstances shall this assistance
constitute more than fifty percent of the total project cost.
(b) The director may approve a refueling project application
for a grant or a loan under subsection (4) of this section up to
fifty thousand dollars. In no circumstances shall a grant or a
loan award constitute more than fifty percent of the total
project cost.
(7) The director shall enter into agreements with approved
applicants to fix the terms and rates of the assistance to
minimize the costs to the applicants, and to encourage
establishment of a viable bioenergy or biofuel industry, or a
viable energy efficiency, renewable energy, or innovative energy
technology industry. The agreement shall include provisions to
protect the state's investment, including a requirement that a
successful applicant enter into contracts with any partners that
may be involved in the use of any assistance provided under this
program, including services, facilities, infrastructure, or
equipment. Contracts with any partners shall become part of the
application record.
(8) The director may defer any payments for up to
twenty-four months or until the project starts to receive revenue
from operations, whichever is sooner.
[2009 c 451 § 3; 2007 c 348 § 302; 2006 c 171 § 3. Formerly RCW 15.110.020.]
NOTES:
Expiration dates -- 2009 c 451 §§ 2, 3, 5, 6, and 7: See note following RCW 43.325.010.
Effective date -- Intent -- 2009 c 451: See notes following RCW 43.325.010.