H-0828.1
SUBSTITUTE HOUSE BILL 1084
State of Washington 67th Legislature 2021 Regular Session
By House Environment & Energy (originally sponsored by
Representatives Ramel, Slatter, J. Johnson, Duerr, Fitzgibbon, Dolan,
Chopp, Wylie, Bateman, Ramos, Berry, Ortiz-Self, Gregerson, Goodman,
Ryu, Valdez, Callan, Kloba, Ormsby, Stonier, Fey, Macri, Peterson,
Pollet, Bergquist, and Harris-Talley; by request of Office of the
Governor)
READ FIRST TIME 02/10/21.
1 AN ACT Relating to reducing statewide greenhouse gas emissions by
2 achieving greater decarbonization of residential and commercial
3 buildings; amending RCW 19.27A.015, 19.27A.020, 19.27A.200,
4 80.28.074, 80.28.005, 80.28.110, 80.28.190, 43.21F.055, 35.92.430,
5 and 54.16.390; amending 2007 c 349 ss 1 and 3 (uncodified); adding a
6 new section to chapter 19.27A RCW; adding new sections to chapter
7 80.28 RCW; adding a new section to chapter 35.92 RCW; adding a new
8 section to chapter 54.16 RCW; adding a new section to chapter 43.330
9 RCW; and creating new sections.
10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
11 NEW SECTION. Sec. 1. High-efficiency electric space and water
12 heating equipment, such as electric heat pumps for space heating and
13 electric heat pump water heaters, lower overall energy demand and
14 system costs and improve indoor air quality and environmental
15 outcomes.
16 As Washington transitions to 100 percent clean electricity,
17 switching from fossil-fuel based heating equipment to high-efficiency
18 electric equipment will reduce climate impacts and fuel price risks
19 in the long term and can have a positive impact on overburdened
20 communities.
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 1 In order to meet the statewide greenhouse gas emissions limits in
2 RCW 70A.45.020, the state must require construction of increasingly
3 low-emission energy efficient homes and buildings and achieve
4 construction of zero fossil-fuel greenhouse gas emission homes and
5 buildings by 2030. A 2020 report by the United States climate
6 alliance found that Washington had nearly 90,000 clean energy jobs in
7 2019. The top categories of clean energy jobs are in the buildings
8 sector, including: High-efficiency heating, ventilation, and air
9 conditioning; energy efficiency technologies; and renewable heating
10 and cooling. As the fastest growing clean energy industries in our
11 state, work in these areas also supports job creation in other
12 construction trades, which is a critical component of a clean energy
13 economic recovery strategy and can increase diversity in the
14 workforce.
15 Stable and predictable policy and regulatory frameworks are
16 necessary to stimulate the critical social dialogue and collaboration
17 to ensure a just transition for workers, including solutions to
18 continue to provide meaningful work for skilled tradespersons,
19 establish and sustain institutional and technical capacities to
20 support affected workers, and mobilize funding and assistance to
21 those in need. It is the intent of the legislature to both provide
22 regulatory certainty and tools and resources to support the
23 transition of companies that engage in the distribution of fossil
24 fuels for residential and commercial heating, and to workers who are
25 employed in the sectors affected by the transition to cleaner heating
26 sources.
27 In order to have a comprehensive understanding of the need and
28 potential for updating the building stock, more robust benchmarking
29 and reporting for building performance, operations, and maintenance
30 is needed. While the state has adopted comprehensive reporting
31 requirements for larger commercial buildings, it currently lacks
32 similar requirements for smaller commercial buildings. It is the
33 intent of the legislature to extend existing building benchmarking
34 and operations and maintenance planning requirements to smaller
35 commercial buildings, in order to assess the needs and opportunities
36 for job creation, incentives, and environmental and public health
37 improvements.
38 Utilities have an important role in providing affordable and
39 reliable heating and other energy services. As the state transitions
40 to cleaner sources of energy, utilities are an important partner in
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 1 helping their customers make smart energy choices, and actively
2 supporting the replacement of fossil fuel-based space and water
3 heating equipment with high-efficiency electric equipment.
4 Programs for the electrification of homes and buildings have the
5 potential to allow electric utilities to optimize the use of electric
6 grid infrastructure, improve the management of electric loads, better
7 manage the integration of variable renewable energy resources, reduce
8 greenhouse gas emissions from the buildings sector, mitigate the
9 environmental impacts of utility operations and power purchases, and
10 improve health outcomes for occupants due to improved indoor air
11 quality.
12 Clarity is important so that each utility, depending on its
13 unique circumstances and consistent with enabling statutes, the state
14 Constitution, and good public policy, may determine its appropriate
15 role in advancing home and building electrification for its
16 customers.
17 In order to meet the statewide greenhouse gas limits in the
18 energy sectors of the economy, more resources must be directed toward
19 achieving electrification and decarbonization of residential and
20 commercial heating loads, while continuing to relieve energy burdens
21 that exist in low-income households and overburdened communities.
22 Sec. 2. RCW 19.27A.015 and 1990 c 2 s 2 are each amended to read
23 as follows:
24 Except as provided in RCW 19.27A.020(((7))) (6), the Washington
25 state energy code for residential buildings shall be the ((maximum
26 and)) minimum energy code for residential buildings in each city,
27 town, and county and shall be enforced by each city, town, and county
28 ((no later than July 1, 1991)). The Washington state energy code for
29 nonresidential buildings shall be the minimum energy code for
30 nonresidential buildings enforced by each city, town, and county.
31 Sec. 3. RCW 19.27A.020 and 2018 c 207 s 7 are each amended to
32 read as follows:
33 (1) The state building code council in the department of
34 enterprise services shall adopt rules to be known as the Washington
35 state energy code as part of the state building code.
36 (2) The council shall follow the legislature's standards set
37 forth in this section to adopt rules to be known as the Washington
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 1 state energy code. The Washington state energy code shall be designed
2 to:
3 (a) Construct increasingly energy efficient homes and buildings
4 that help achieve the broader goal of building zero fossil-fuel
5 greenhouse gas emission homes and buildings by the year 2031;
6 (b) Require new buildings to meet a certain level of energy
7 efficiency, but allow flexibility in building design, construction,
8 and heating equipment efficiencies within that framework; ((and))
9 (c) Allow space heating equipment efficiency to offset or
10 substitute for building envelope thermal performance; and
11 (d) For each code cycle, provide one reach code option for
12 increasingly low-emission energy efficient homes that local
13 jurisdictions may adopt for residential construction, to be enforced
14 by the local jurisdiction.
15 (3) The Washington state energy code shall take into account
16 regional climatic conditions. One climate zone includes: Adams,
17 Asotin, Benton, Chelan, Columbia, Douglas, Ferry, Franklin, Garfield,
18 Grant, Kittitas, Klickitat, Lincoln, Okanogan, Pend Oreille,
19 Skamania, Spokane, Stevens, Walla Walla, Whitman, and Yakima
20 counties. The other climate zone includes all other counties not
21 listed in this subsection (3). The assignment of a county to a
22 climate zone may not be changed by adoption of a model code or rule.
23 Nothing in this section prohibits the council from adopting the same
24 rules or standards for each climate zone.
25 (4) The minimum Washington state energy code for residential
26 buildings shall be the 2006 edition of the Washington state energy
27 code, or as amended by rule by the council.
28 (5) The minimum state energy code for new nonresidential
29 buildings shall be the Washington state energy code, 2006 edition, or
30 as amended by the council by rule.
31 (6)(a) Except as provided in (b) of this subsection and except as
32 provided in subsection (2)(d) of this section, the Washington state
33 energy code for residential structures shall preempt the residential
34 energy code of each city, town, and county in the state of
35 Washington.
36 (b) The state energy code for residential structures does not
37 preempt a city, town, or county's energy code for residential
38 structures ((which exceeds)) that provides greater reductions in
39 energy use and greenhouse gas emissions than the requirements of the
40 state energy code ((and which was adopted by the city, town, or
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 1 county prior to March 1, 1990. Such cities, towns, or counties may
2 not subsequently amend their energy code for residential structures
3 to exceed the requirements adopted prior to March 1, 1990)) adopted
4 by the council.
5 (7) The state building code council shall consult with the
6 department of enterprise services as provided in RCW 34.05.310 prior
7 to publication of proposed rules. The director of the department of
8 enterprise services shall recommend to the state building code
9 council any changes necessary to conform the proposed rules to the
10 requirements of this section.
11 (8) ((The state building code council shall evaluate and consider
12 adoption of the international energy conservation code in Washington
13 state in place of the existing state energy code.
14 (9))) The definitions in RCW 19.27A.140 apply throughout this
15 section.
16 Sec. 4. RCW 19.27A.200 and 2019 c 285 s 2 are each amended to
17 read as follows:
18 The definitions in this section apply throughout RCW 19.27A.210,
19 19.27A.220, 19.27A.230, ((and)) 19.27A.240, and section 5 of this act
20 unless the context clearly requires otherwise.
21 (1) "Agricultural structure" means a structure designed and
22 constructed to house farm implements, hay, grain, poultry, livestock,
23 or other horticultural products, and that is not a place used by the
24 public or a place of human habitation or employment where
25 agricultural products are processed, treated, or packaged.
26 (2) "Baseline energy use intensity" means a building's weather
27 normalized energy use intensity measured the previous year to making
28 an application for an incentive under RCW 19.27A.220.
29 (3) "Building owner" means an individual or entity possessing
30 title to a building.
31 (4) "Building tenant" means a person or entity occupying or
32 holding possession of a building or premises pursuant to a rental
33 agreement.
34 (5) "Conditional compliance" means a temporary compliance method
35 used by building owners that demonstrate the owner has implemented
36 energy use reduction strategies required by the standard, but has not
37 demonstrated full compliance with the energy use intensity target.
38 (6) "Consumer-owned utility" has the same meaning as defined in
39 RCW 19.27A.140.
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 1 (7) "Covered commercial building" means a ((building)):
2 (a) Building where the sum of nonresidential, hotel, motel, and
3 dormitory floor areas exceeds fifty thousand gross square feet,
4 excluding the parking garage area; or
5 (b) Tier 2 covered commercial building or tier 3 covered
6 commercial building, as determined by the department pursuant to
7 section 5 of this act.
8 (8) "Department" means the department of commerce.
9 (9) "Director" means the director of the department of commerce
10 or the director's designee.
11 (10) "Electric utility" means a consumer-owned utility or an
12 investor-owned utility.
13 (11) "Eligible building owner" means: (a) The owner of a covered
14 commercial building required to comply with the standard established
15 in RCW 19.27A.210; or (b) the owner of a multifamily residential
16 building where the floor area exceeds fifty thousand gross square
17 feet, excluding the parking garage area.
18 (12) "Energy" includes: Electricity, including electricity
19 delivered through the electric grid and electricity generated at the
20 building premises using solar or wind energy resources; natural gas,
21 including renewable natural gas, synthetic gas, or fossil gas;
22 district steam; district hot water; district chilled water; propane;
23 fuel oil; wood; coal; or other fuels used to meet the energy loads of
24 a building.
25 (13) "Energy use intensity" means a measurement that normalizes a
26 building's site energy use relative to its size. A building's energy
27 use intensity is calculated by dividing the total net energy consumed
28 in one year by the gross floor area of the building, excluding the
29 parking garage. "Energy use intensity" is reported as a value of
30 thousand British thermal units per square foot per year.
31 (14) "Energy use intensity target" means the net energy use
32 intensity of a covered commercial building that has been established
33 for the purposes of complying with the standard established under RCW
34 19.27A.210.
35 (15) "Gas company" includes every corporation, company,
36 association, joint stock association, partnership, and person, their
37 lessees, trustees, or receiver appointed by any court whatsoever, and
38 every city or town owning, controlling, operating, or managing any
39 gas plant within this state.
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 1 (16) "Greenhouse gas" includes carbon dioxide, methane, nitrous
2 oxide, hydrofluorocarbons, perfluorocarbons, and sulfur hexafluoride.
3 (17)(a) "Gross floor area" means the total number of square feet
4 measured between the exterior surfaces of the enclosing fixed walls
5 of a building, including all supporting functions such as offices,
6 lobbies, restrooms, equipment storage areas, mechanical rooms, break
7 rooms, and elevator shafts.
8 (b) "Gross floor area" does not include outside bays or docks.
9 (18) "Investor-owned utility" means a company owned by investors,
10 that meets one of the definitions of RCW 80.04.010, and that is
11 engaged in distributing electricity to more than one retail electric
12 customer in the state.
13 (19) "Multifamily residential building" means a building
14 containing sleeping units or more than two dwelling units where
15 occupants are primarily permanent in nature.
16 (20) "Net energy use" means the sum of metered and bulk fuel
17 energy entering the building, minus the sum of metered energy leaving
18 the building.
19 (21) "Qualifying utility" means a consumer-owned or investor-
20 owned gas or electric utility that serves more than twenty-five
21 thousand customers in the state of Washington.
22 (22) "Savings-to-investment ratio" means the ratio of the total
23 present value savings to the total present value costs of a bundle of
24 an energy or water conservation measure estimated over the projected
25 useful life of each measure. The numerator of the ratio is the
26 present value of net savings in energy or water and nonfuel or
27 nonwater operation and maintenance costs attributable to the proposed
28 energy or water conservation measure. The denominator of the ratio is
29 the present value of the net increase in investment and replacement
30 costs less salvage value attributable to the proposed energy or water
31 conservation measure.
32 (23) "Standard" means the state energy performance standard for
33 covered commercial buildings established under RCW 19.27A.210.
34 (24) "Thermal energy company" has the same meaning as defined in
35 RCW 80.04.550.
36 (25) "Tier 2 covered commercial building" means a building where
37 the sum of nonresidential, hotel, motel, and dormitory floor areas
38 exceeds 25,000 gross square feet, excluding the parking garage area,
39 but does not exceed 50,000 gross square feet.
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1 (26) "Tier 3 covered commercial building" means a building where
2 the sum of nonresidential, hotel, motel, and dormitory floor areas
3 exceeds 10,000 gross square feet, excluding the parking garage area,
4 but does not exceed 25,000 gross square feet.
5 (27) "Weather normalized" means a method for modifying the
6 measured building energy use in a specific weather year to energy use
7 under normal weather conditions.
8 NEW SECTION. Sec. 5. A new section is added to chapter 19.27A
9 RCW to read as follows:
10 (1)(a) By July 1, 2022, the department must adopt by rule a state
11 energy management and benchmarking requirement for tier 2 covered
12 commercial buildings and tier 3 covered commercial buildings.
13 (b) In establishing the requirements under (a) of