Admiralty Inlet Pilot Tidal Project

SNOHOMISH COUNTY PUBLIC UTILITY DISTRICT NO. 1

ADMIRALTY INLET PILOT TIDAL PROJECT:

DRAFT LICENSE APPLICATION

Submitted by: SNOHOMISH COUNTY

PUBLIC UTILITY DISTRICT NO. 1

2320 California Street Everett, WA 98206

December 28, 2009

© 2009 Public Utility District No. 1 of Snohomish County

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

Executive Summary Page 1

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

2020. 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.

12690) (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


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.


- 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.


• 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,


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


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


• 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.


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-


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.

Initial Statement and General Content Requirements Page 1

UNITED STATES OF AMERICA BEFORE THE

FEDERAL ENERGY REGULATORY COMMISSION

Admiralty Inlet Pilot Tidal Project ) Project No. 12690

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. 12690, 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 1107 2320 California Street Everett, WA 98206-1107 Tel: 425-783-8100


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 1107 2320 California Street Everett, WA 98206-1107 Tel: 425-783-8473 Fax: 425-783-8305 [email protected]

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 Revised Code of Washington, 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.


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 directional-boring 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.


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 98239 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 98201 Port Townsend, WA 98368

City of Oak Harbor City of Stanwood 865 SE Barrington Drive 10220 - 270th St. NW Oak Harbor, WA 98277 Stanwood, WA 98292


City of Edmonds City of Mukilteo 121 5th Ave N 4480 Chennault Beach Rd. Edmonds, WA 98020 Mukilteo, WA 98275

City of Lynnwood City of Poulsbo 19100 - 44th Ave W 19050 Jensen Way NE PO Box 5008 PO Box 98 Lynnwood, WA 98046 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 98382 Port Angeles, WA 98363 Lummi Nation Port Gamble S’Klallam Indian Tribe 2616 Kwina Road 31912 Little Boston Road NE Bellingham, WA 98226 Kingston, WA 98346 Sauk-Suiattle Indian Tribe Suquamish Tribe 5318 Chief Brown Land 18490 Suquamish Way Darrington, WA 98241 Suquamish, WA 98392


Swinomish Indian Tribal Tulalip Tribes of Washington Community 6406 Marine Drive 11404 Moorage Way Tulalip, WA 98271 LaConner, WA 98257 Upper Skagit Indian Tribe 25977 Community Plaza Way Sedro Wooley, WA 98284

3. 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.

APPENDIX 1

TITLE 54 RCW

PUBLIC UTILITY DISTRICTS

Chapters

54.04 General provisions.54.08 Formation--Dissolution--Elections.54.12 Commissioners.54.16 Powers.54.20 Condemnation proceedings.54.24 Finances.54.28 Privilege taxes.54.32 Consolidation and annexation.54.36 Liability to other taxing districts.54.40 Five commissioner districts.54.44 Nuclear, thermal, electric generating power

facilities--Joint development.54.48 Agreements between electrical public utilities and

cooperatives.54.52 Voluntary contributions to assist low-income customers.

NOTES:

Acquisition of electrical distribution property from publicutility district by cities and towns: RCW 35.92.054.

Conversion of overhead electric utility to underground: Chapter35.96 RCW, RCW 36.88.410 through 36.88.485.

Conveyance of real property by public bodies--Recording: RCW65.08.095.

Credit card use by local governments: RCW 43.09.2855.

Electric energy, falling waters--Sale or purchase authorized: RCW 43.52.410.

Electricity generation from biomass energy: Chapter 36.140 RCW.

Hospitalization and medical aid for public employees anddependents--Premiums, governmental contributions authorized: RCW 41.04.180, 41.04.190.

Joint operating agencies: Chapter 43.52 RCW.

Local governmental organizations, actions affecting boundaries,etc., review by boundary review board: Chapter 36.93 RCW.

Municipal corporation may authorize investment of funds which arein custody of county treasurer or other municipalcorporation treasurer: RCW 36.29.020.

Revised Code of Washington Title 54 - Public Utility Districts (2009)

Page 1

Municipal utilities: Chapter 35.92 RCW.

Public bodies may retain collection agencies to collect publicdebts--Fees: RCW 19.16.500.

Water-sewer districts, disposition of property to public utilitydistrict: Chapter 57.42 RCW.

CHAPTER 54.04 RCW

GENERAL PROVISIONS

Sections

54.04.010 Definitions.54.04.020 Districts authorized.54.04.030 Restrictions on invading other municipalities.54.04.035 Annexation of territory.54.04.037 Annexation of territory--Coordination among county

officials.54.04.039 County with federal nuclear reservation within its

boundaries--Special procedure for addition orwithdrawal of territory from public utilitydistrict.

54.04.040 Utilities within a city or town--Restrictions.54.04.045 Locally regulated utilities--Attachments to

poles--Rates--Contracting.54.04.050 Group employee insurance--Annuities--Retirement

income policies.54.04.055 Employee benefits--District may continue to pay

premiums after employee retires.54.04.060 District elections.54.04.070 Contracts for work or materials--Notice--Exemptions.54.04.080 Bids--Deposit--Low bidder claiming

error--Contract--Bond--Definitions.54.04.082 Alternative bid procedure.54.04.085 Electrical facility construction or improvement--Bid

proposals--Contract proposal forms--Conditionsfor issuance--Appeals.

54.04.090 Minimum wages.54.04.092 Application of RCW 54.04.070 through 54.04.090 to

certain service provider agreements under chapter70.150 RCW.

54.04.100 Wholesale power--Procedure as to ratefiling--Definition--Duty to furnish to district.

54.04.120 Planning powers.54.04.130 Employee benefit plans when private utility

acquired--Rights, powers and duties as toexisting private employee benefit plans.

54.04.140 Employee benefit plans when private utilityacquired--Admission to district's employeeplan--Service credit--Contributions--Benefits.


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54.04.150 Employee benefit plans when private utilityacquired--Agreements and contracts--Prior rightspreserved.

54.04.160 Assumption of obligations of private pension planwhen urban transportation system acquired.

54.04.170 Collective bargaining authorized for employees.54.04.180 Collective bargaining authorized for districts.54.04.190 Production and distribution of biodiesel, ethanol,

and ethanol blend fuels--Crop purchase contractsfor dedicated energy crops.

NOTES:

Lien for labor and materials on public works: Chapter 60.28 RCW.

Local governmental organizations, actions affecting boundaries,etc., review by boundary review board: Chapter 36.93 RCW.

Traffic control at work sites: RCW 47.36.200.

Utility poles, unlawful to attach object to--Penalty: RCW70.54.090.

RCW 54.04.010 Definitions. As used in this title "revenueobligation" or "revenue obligations" mean and include bonds,notes, warrants, certificates of indebtedness, or any otherevidences of indebtedness issued by a district which, by theterms thereof, shall be payable from the revenues of its publicutilities. [1959 c 218 § 14.]

NOTES:

"Wholesale power" defined: RCW 54.04.100.

RCW 54.04.020 Districts authorized. Municipalcorporations, to be known as public utility districts, are herebyauthorized for the purposes of chapter 1, Laws of 1931 and may beestablished within the limits of the state of Washington, asprovided herein. [1931 c 1 § 2; RRS § 11606.]

NOTES:

Purpose--1931 c 1: "The purpose of this act is to authorizethe establishment of public utility districts to conserve thewater and power resources of the State of Washington for thebenefit of the people thereof, and to supply public utilityservice, including water and electricity for all uses." [1931 c1 § 1.]

Severability--Construction--1931 c 1: "Adjudication ofinvalidity of any section, clause or part of a section of thisact shall not impair or otherwise affect the validity of the actas a whole or any other part thereof.


Page 3

The rule of strict construction shall have no application tothis act, but the same shall be liberally construed, in order tocarry out the purposes and objects for which this act isintended.

When this act comes in conflict with any provision,limitation or restriction in any other law, this act shall governand control." [1931 c 1 § 11.]

RCW 54.04.030 Restrictions on invading othermunicipalities. Chapter 1, Laws of 1931, shall not be deemed orconstrued to repeal or affect any existing act, or any partthereof, relating to the construction, operation and maintenanceof public utilities by irrigation or water-sewer districts orother municipal corporations, but shall be supplemental theretoand concurrent therewith. No public utility district createdhereunder shall include therein any municipal corporation, or anypart thereof, where such municipal corporation already owns oroperates all the utilities herein authorized: PROVIDED, that incase it does not own or operate all such utilities it may beincluded within such public utility district for the purpose ofestablishing or operating therein such utilities as it does notown or operate: PROVIDED, FURTHER, That no property situatedwithin any irrigation or water-sewer districts or other municipalcorporations shall ever be taxed or assessed to pay for anyutility, or part thereof, of like character to any utility, ownedor operated by such irrigation or water districts or othermunicipal corporations. [1999 c 153 § 64; 1931 c 1 § 12; RRS §11616.]

NOTES:

Part headings not law--1999 c 153: See note following RCW57.04.050.

Irrigation districts: Title 87 RCW.

Municipal utilities: RCW 80.04.500, 81.04.490 and chapter 35.92RCW.

Water-sewer districts: Title 57 RCW.

RCW 54.04.035 Annexation of territory. In addition toother powers authorized in Title 54 RCW, public utility districtsmay annex territory as provided in this section.

The boundaries of a public utility district may be enlargedand new contiguous territory added pursuant to the procedures forannexation by cities and towns provided in RCW 35.13.015 through35.13.110. The provisions of these sections concerning communitymunicipal corporations, review boards, and comprehensive plans,however, do not apply to public utility district annexations. For purposes of conforming with such procedures, the publicutility district is deemed to be the city or town and the board


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of commissioners is deemed to be the city or town legislativebody.

Annexation procedures provided in this section may only beused to annex territory that is both: (1) Contiguous to theannexing public utility district; and (2) located within theservice area of the annexing public utility district. As used inthis section, a public utility district's "service area" meansthose areas whether located within or outside of the annexingpublic utility district's boundaries that were generally servedwith electrical energy by the annexing public utility district onJanuary 1, 1987. Such service area may, or may not, have beenrecognized in an agreement made under chapter 54.48 RCW, but noarea may be included within such service area that was generallyserved with electrical energy on January 1, 1987, by anotherpublic utility as defined in RCW 54.48.010. An area proposed tobe annexed may be located in the same or a different county asthe annexing public utility district.

If an area proposed to be annexed is located within theboundaries of another public utility district, annexation may beinitiated only upon petition of registered voters residing in thearea in accordance with RCW 35.13.020 and adoption by the boardsof commissioners of both districts of identical resolutionsstating (a) the boundaries of the area to be annexed, (b) adetermination that annexation is in the public interest of theresidents of the area to be annexed as well as the publicinterest of their respective districts, (c) approval ofannexation by the board, (d) the boundaries of the districtsafter annexation, (e) the disposition of any assets of thedistricts in the area to be annexed, (f) the obligations to beassumed by the annexing district, (g) apportionment of electioncosts, and (h) that voters in the area to be annexed will beadvised of lawsuits that may impose liability on the annexedterritory and the possible impact of annexation on taxes andutility rates.

If annexation is approved, the area annexed shall cease tobe a part of the one public utility district at the same timethat it becomes a part of the other district. The annexingpublic utility district shall assume responsibility for providingthe area annexed with the services provided by the other publicutility district in the area annexed. [1987 c 292 § 2; 1983 c101 § 1.]

NOTES:

Consolidation and annexation: Chapter 54.32 RCW.

RCW 54.04.037 Annexation of territory--Coordination amongcounty officials. When territory has been added to a publicutility district in accordance with RCW 54.04.035, the supervisorof elections and other officers of the county in which the publicutility district first operated shall coordinate elections, thelevy and collection of taxes, and other necessary duties with theappropriate county officials of the other county. [1987 c 292 §3.]


Page 5

RCW 54.04.039 County with federal nuclear reservationwithin its boundaries--Special procedure for addition orwithdrawal of territory from public utility district. (1) Anyvoting precinct located within a county that has a federalnuclear reservation within its boundaries is:

(a) Withdrawn from a public utility district if the precinctreceives at least one electric distribution, water, or sewerservice from a city, and no electric distribution, water, orsewer service from a public utility district;

(b) Included in a public utility district if any portion ofthe precinct receives at least one electric distribution, water,or sewer service from the public utility district.

(2) For voting precincts that meet the requirements ofsubsection (1) of this section, within ten days after March 24,2004, and for voting precincts that later meet the requirementsof subsection (1) of this section, within thirty days of meetingthe requirements:

(a) The city that provides any electric distribution, water,or sewer service to a precinct that is withdrawn from a publicutility district under subsection (1) of this section shallsubmit to the public utility district and the county auditor alist of street addresses, or map of the areas to which anyservice is provided;

(b) The public utility district that provides any electricdistribution, water, or sewer service to a precinct that isincluded in the public utility district under subsection (1) ofthis section shall submit to the city or town and the countyauditor a list of street addresses, or map of the areas to whichany service is provided.

(3) Within ten days of receipt of the information requiredunder subsection (2) of this section, the auditor shall determinewhich voting precincts are required to be withdrawn from orincluded in the public utility district, and provide thatinformation to the public utility district commissioners whoshall, within ten days, revise the boundaries of the district inconformance with RCW 54.12.010 without dividing any votingprecinct.

(4) Unless otherwise provided in an agreement between thepublic utility district and the city or town, taxes orassessments levied or assessed against property located in anarea withdrawn from a public utility district shall remain a lienand be collected as by law (a) if the taxes or assessments werelevied or assessed before the withdrawal or (b) if the levies orassessments were made to pay or secure an obligation of thedistrict duly incurred or issued before the withdrawal. Thewithdrawal of an area from the boundaries of a district does notexempt any property therein from taxation or assessment for thepurpose of paying the costs of retiring or redeeming anyobligation of the district duly incurred or issued before thewithdrawal.

(5) Except as set forth in subsection (4) of this section, apublic utility district may not levy or impose any taxes upon


Page 6

property located within those voting precincts withdrawn from thepublic utility district.

(6) Nothing in chapter 113, Laws of 2004 limits theauthority of public utility districts and cities or towns toenter into service agreements that are otherwise permitted bylaw. [2004 c 113 § 2.]

NOTES:

Effective date--2004 c 113: "This act is necessary for theimmediate preservation of the public peace, health, or safety, orsupport of the state government and its existing publicinstitutions, and takes effect immediately [March 24, 2004]." [2004 c 113 § 3.]

RCW 54.04.040 Utilities within a city ortown--Restrictions. A district shall not construct any propertyto be utilized by it in the operation of a plant or system forthe generation, transmission, or distribution of electric energyfor sale, on the streets, alleys, or public places within a cityor town without the consent of the governing body of the city ortown and approval of the plan and location of the construction,which shall be made under such reasonable terms as the city ortown may impose. All such properties shall be maintained andoperated subject to such regulations as the city or town mayprescribe under its police power. [1957 c 278 § 9. Prior: (i)1941 c 245 § 3a; Rem. Supp. 1941 § 11616-4. (ii) 1941 c 245 § 1,part; Rem. Supp. 1941 § 11616-1.]

RCW 54.04.045 Locally regulated utilities--Attachments topoles--Rates--Contracting. (1) As used in this section:

(a) "Attachment" means the affixation or installation of anywire, cable, or other physical material capable of carryingelectronic impulses or light waves for the carrying ofintelligence for telecommunications or television, including, butnot limited to cable, and any related device, apparatus, orauxiliary equipment upon any pole owned or controlled in whole orin part by one or more locally regulated utilities where theinstallation has been made with the necessary consent.

(b) "Licensee" means any person, firm, corporation,partnership, company, association, joint stock association, orcooperatively organized association, which is authorized toconstruct attachments upon, along, under, or across public ways.

(c) "Locally regulated utility" means a public utilitydistrict not subject to rate or service regulation by theutilities and transportation commission.

(d) "Nondiscriminatory" means that pole owners may notarbitrarily differentiate among or between similar classes oflicensees approved for attachments.

(2) All rates, terms, and conditions made, demanded, orreceived by a locally regulated utility for attachments to itspoles must be just, reasonable, nondiscriminatory, andsufficient. A locally regulated utility shall levy attachment


Page 7

space rental rates that are uniform for the same class of servicewithin the locally regulated utility service area.

(3) A just and reasonable rate must be calculated asfollows:

(a) One component of the rate shall consist of theadditional costs of procuring and maintaining pole attachments,but may not exceed the actual capital and operating expenses ofthe locally regulated utility attributable to that portion of thepole, duct, or conduit used for the pole attachment, including ashare of the required support and clearance space, in proportionto the space used for the pole attachment, as compared to allother uses made of the subject facilities and uses that remainavailable to the owner or owners of the subject facilities;

(b) The other component of the rate shall consist of theadditional costs of procuring and maintaining pole attachments,but may not exceed the actual capital and operating expenses ofthe 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 allattaching licensees, in addition to the space used for the poleattachment, which sum is divided by the height of the pole; and

(c) The just and reasonable rate shall be computed by addingone-half of the rate component resulting from (a) of thissubsection 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 mayestablish a rate according to the calculation set forth insubsection (3)(a) of this section or it may establish a rateaccording to the cable formula set forth by the federalcommunications commission by rule as it existed on June 12, 2008,or such subsequent date as may be provided by the federalcommunications commission by rule, consistent with the purposesof this section.

(5) Except in extraordinary circumstances, a locallyregulated utility must respond to a licensee's application toenter into a new pole attachment contract or renew an existingpole 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 theapplicant as to whether the application has been accepted forlicensing or rejected. In extraordinary circumstances, and withthe approval of the applicant, the locally regulated utility mayextend the sixty-day timeline under this subsection. If theapplication is rejected, the locally regulated utility mustprovide reasons for the rejection. A request to attach may onlybe denied on a nondiscriminatory basis (a) where there isinsufficient capacity; or (b) for reasons of safety, reliability,or the inability to meet generally applicable engineeringstandards and practices.

(7) Nothing in this section shall be construed or isintended to confer upon the utilities and transportationRevised Code of Washington Title 54 - Public Utility Districts (2009)

Page 8

commission any authority to exercise jurisdiction over locallyregulated utilities. [2008 c 197 § 2; 1996 c 32 § 5.]

NOTES:

Intent--2008 c 197: "It is the policy of the state toencourage the joint use of utility poles, to promote competitionfor the provision of telecommunications and information services,and to recognize the value of the infrastructure of locallyregulated utilities. To achieve these objectives, thelegislature intends to establish a consistent cost-based formulafor calculating pole attachment rates, which will ensure greaterpredictability and consistency in pole attachment ratesstatewide, as well as ensure that locally regulated utilitycustomers do not subsidize licensees. The legislature furtherintends to continue working through issues related to poleattachments with interested parties in an open and collaborativeprocess in order to minimize the potential for disputes goingforward." [2008 c 197 § 1.]

RCW 54.04.050 Group employeeinsurance--Annuities--Retirement income policies. (1) Subject tochapter 48.62 RCW, any public utility district engaged in theoperation of electric or water utilities may enter into contractsof group insurance for the benefit of its employees, and pay allor any part of the premiums for such insurance. Such premiumsshall be paid out of the revenues derived from the operation ofsuch properties: PROVIDED, That if the premium is to be paid bythe district and employees jointly, and the benefits of thepolicy are offered to all eligible employees, not less thanseventy-five percent of such employees may be so insured.

(2) A public utility district whose employees or officialsare not members of the state retirement system engaged in theoperation of electric or water utilities may contract forindividual annuity contracts, retirement income policies or groupannuity contracts, including prior service, to provide aretirement plan, or any one or more of them, and pay all or anypart of the premiums therefor out of the revenue derived from theoperation of its properties. [1991 sp.s. c 30 § 23; 1984 c 15 §1; 1959 c 233 § 1; 1941 c 245 § 8; Rem. Supp. 1941 § 11616-6.]

NOTES:

Effective date, implementation,application--Severability--1991 sp.s. c 30: See RCW 48.62.900and 48.62.901.

Severability--1941 c 245: "If any section or provision ofthis act shall be adjudged to be invalid, such adjudication shallnot affect the validity of the act as a whole or any section,provision or part thereof not adjudged to be invalid." [1941 c245 § 11.]

Group insurance: Chapters 48.21 and 48.24 RCW.


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Hospitalization and medical insurance authorized: RCW 41.04.180.

RCW 54.04.055 Employee benefits--District may continue topay premiums after employee retires. Any public utility districtwhich provides for the coverage of any of its employees under anyplan for individual annuity contracts, retirement incomepolicies, group annuity contracts, group insurance for thebenefit of its employees, or any other contract for the benefitof its employees, and pays all or any part of the premiums orother payments required therefor, is hereby authorized tocontinue to make such payments for such employees after theirretirement from employment. Such payments agreed to by thepublic utility district shall be considered as deferredcompensation. Such payments shall not be retroactive but shallonly be available for those employees employed on or after August6, 1965 provided that such payments for retired employees shallnot exceed those being paid for regular employees. [1965 ex.s. c149 § 1.]

RCW 54.04.060 District elections. The supervisor ofelections or other proper officer of the county shall give noticeof all elections held under this title, for the time and in themanner and form provided for city, town, school district, andport district elections. When the supervisor or other officerdeems an emergency exists, and is requested so to do by aresolution of the district commission, he may call a specialelection at any time in the district, and he may combine ordivide precincts for the purpose of holding special elections,and special elections shall be conducted and notice thereof givenin the manner provided by law.

The supervisor or other officer shall provide pollingplaces, appoint the election officers, provide theircompensation, provide ballot boxes, and ballots or votingmachines, poll books and tally sheets, and deliver them to theelection officers at the polling places, publish and post noticesof the elections in the manner provided by law, and apportion tothe district its share of the expense of the election.

The manner of conducting and voting at the elections,opening and closing of polls, keeping of poll lists, canvassingthe votes, declaring the result, and certifying the returns,shall be the same as for the election of state and countyofficers, except as otherwise provided herein.

The district commission shall certify to the supervisor alist of offices to be filled at a district election and thecommission, if it desires to submit to the voters of the districta proposition, shall require the secretary of the commission tocertify it at the time and in the manner and form provided forcertifying propositions by the governing board of cities, towns,and port districts. [1951 c 207 § 1; 1941 c 245 § 5; 1931 c 1 §5; RRS § 11609.]


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RCW 54.04.070 Contracts for work ormaterials--Notice--Exemptions. (1) Any item, or items of thesame kind of materials, equipment, or supplies purchased, theestimated cost of which is in excess of fifteen thousand dollars,exclusive of sales tax, shall be by contract. However, adistrict may make purchases of the same kind of items ofmaterials, equipment, and supplies not exceeding seven thousandfive hundred dollars in any calendar month without a contract,purchasing any excess thereof over seven thousand five hundreddollars by contract.

(2) Any work ordered by a district commission, the estimatedcost of which is in excess of twenty-five thousand dollars,exclusive of sales tax, shall be by contract. However, adistrict commission may have its own regularly employed personnelperform work which is an accepted industry practice under prudentutility management without a contract. For purposes of thissection, "prudent utility management" means performing work withregularly employed personnel utilizing material of a worth notexceeding one hundred fifty thousand dollars in value without acontract. This limit on the value of material being utilized inwork being performed by regularly employed personnel shall notinclude the value of individual items of equipment purchased oracquired and used as one unit of a project.

(3) Before awarding a contract required under subsection (1)or (2) of this section, the commission shall publish a noticeonce or more in a newspaper of general circulation in thedistrict at least thirteen days before the last date upon whichbids will be received, inviting sealed proposals for the work ormaterials. Plans and specifications for the work or materialsshall at the time of publication be on file at the office of thedistrict and subject to public inspection. Any published noticeordering work to be performed for the district shall be mailed atthe time of publication to any established trade associationwhich files a written request with the district to receive suchnotices. The commission may, at the same time and as part of thesame notice, invite tenders for the work or materials upon plansand specifications to be submitted by the bidders.

(4) As an alternative to the competitive biddingrequirements of this section and RCW 54.04.080, a district maylet contracts using the small works roster process under RCW39.04.155.

(5) Whenever equipment or materials required by a districtare held by a governmental agency and are available for sale butsuch agency is unwilling to submit a proposal, the commission mayascertain the price of such items and file a statement of suchprice supported by the sworn affidavit of one member of thecommission, and may consider such price as a bid without adeposit or bond.

(6) Pursuant to RCW 39.04.280, the commission may waive thecompetitive bidding requirements of this section and RCW54.04.080 if an exemption contained within RCW 39.04.280 appliesto the purchase or public work. [2008 c 216 § 2; 2002 c 72 § 2;2000 c 138 § 211; 1998 c 278 § 7; 1993 c 198 § 14; 1990 c 251 §1; 1971 ex.s. c 220 § 4; 1955 c 124 § 2. Prior: 1951 c 207 § 2;1931 c 1 § 8, part; RRS § 11612, part.]


Page 11

NOTES:

Findings--Intent--2008 c 216: "The legislature finds thatpublic utility districts provide customer-owned, nonprofitutility services throughout Washington state. The legislaturefurther finds that statutory bid limits for public utilitydistricts have not been increased to address inflation anddramatic cost increases in construction materials. Thelegislature further finds that existing bid limits and highconstruction material costs often preclude public utilitydistricts from maintaining and repairing their utilityinfrastructure, providing training and experience to utilityworkers, and accommodating high contract administrative costs. The legislature further finds that existing bid limits result inincreased costs to both public utility districts and utilitycustomers. Therefore, it is the intent of the legislature toamend the bid limits for public utility districts to addressinflation and increased material costs." [2008 c 216 § 1.]

Purpose--Part headings not law--2000 c 138: See notesfollowing RCW 39.04.155.

Contracts with state department of transportation: RCW47.01.210.

Emergency public works: Chapter 39.28 RCW.

Prevailing wages on public works: Chapter 39.12 RCW.

Public purchase preferences: Chapter 39.24 RCW.

RCW 54.04.080 Bids--Deposit--Low bidder claimingerror--Contract--Bond--Definitions. Any notice inviting sealedbids shall state generally the work to be done, or the materialto be purchased and shall call for proposals for furnishing it,to be sealed and filed with the commission on or before the timenamed therein. Each bid shall be accompanied by a certified orcashier's check, payable to the order of the commission, for asum not less than five percent of the amount of the bid, oraccompanied by a bid bond in an amount not less than five percentof the bid with a corporate surety licensed to do business in thestate, conditioned that the bidder will pay the district asliquidated damages the amount specified in the bond unless he orshe enters into a contract in accordance with his or her bid andfurnishes the performance bond within ten days from the date onwhich he or she is notified that he or she is the successfulbidder. A low bidder who claims error and fails to enter into acontract is prohibited from bidding on the same project if asecond or subsequent call for bids is made for the project.

At the time and place named, the bids shall be publiclyopened and read, and the commission shall canvass the bids, andmay let the contract to the lowest responsible bidder upon theplans and specifications on file, or to the best bidder


Page 12

submitting his or her own plans or specifications; or if thecontract to be let is to construct or improve electricalfacilities, the contract may be let to the lowest bidderprequalified according to the provisions of RCW 54.04.085 uponthe plans and specifications on file, or to the best biddersubmitting his or her own plans and specifications: PROVIDED,That no contract shall be let for more than fifteen percent inexcess of the estimated cost of the materials or work. Thecommission may reject all bids and readvertise, and in such caseall checks shall be returned to the bidders. The commission mayprocure materials in the open market, have its own personnelperform the work or negotiate a contract for such work to beperformed by others, in lieu of readvertising, if it receives nobid. If the contract is let, all checks shall be returned to thebidders, except that of the successful bidder, which shall beretained until a contract is entered into and a bond to performthe work furnished, with sureties satisfactory to the commission,in an amount to be fixed by the commission, not less thantwenty-five percent of the contract price, in accordance with thebid. If the bidder fails to enter into the contract and furnishthe bond within ten days from the date at which he or she isnotified that he or her [she] is the successful bidder, his orher check and the amount thereof shall be forfeited to thedistrict.

The commission shall, by resolution, define the term "samekind of materials, equipment, and supplies" with respect topurchase of items under the provisions of RCW 54.04.070.

The term "construction or improvement of any electricalfacility" as used in this section and in RCW 54.04.085, shallmean the construction, the moving, maintenance, modification, orenlargement of facilities primarily used or to be used for thetransmission or distribution of electricity at voltages aboveseven hundred fifty volts, including structures directlysupporting transmission or distribution conductors but notincluding site preparation, housing, or protective fencingassociated with but not included in a contract for suchconstruction, moving, modification, maintenance, or enlargementof such facilities.

The commission shall be the final authority with regard towhether a bid is responsive to the call for bids and as towhether a bidder is a responsible bidder under the conditions ofhis or her bid. No award of contract shall be invalidated solelybecause of the failure of any prospective bidder to receive aninvitation to bid. [1996 c 18 § 12; 1972 ex.s. c 41 § 1; 1971ex.s. c 220 § 3; 1955 c 124 § 3. Prior: 1951 c 207 § 3; 1931 c1 § 8, part; RRS § 11612, part.]

RCW 54.04.082 Alternative bid procedure. For the awardingof a contract to purchase any item, or items of the same kind ofmaterials, equipment, or supplies in an amount exceeding fifteenthousand dollars per calendar month, but less than sixty thousanddollars per calendar month, exclusive of sales tax, thecommission may, in lieu of the procedure described in RCW54.04.070 and 54.04.080 requiring public notice to invite sealedproposals for such materials, equipment, or supplies, pursuant toRevised Code of Washington Title 54 - Public Utility Districts (2009)

Page 13

commission resolution use the process provided in RCW 39.04.190. Waiver of the deposit or bid bond required under RCW 54.04.080may be authorized by the commission in securing such bidquotations. [2008 c 216 § 3; 2002 c 72 § 1; 1995 c 354 § 1; 1993c 198 § 15; 1977 ex.s. c 116 § 1.]

NOTES:

Findings--Intent--2008 c 216: See note following RCW54.04.070.

RCW 54.04.085 Electrical facility construction orimprovement--Bid proposals--Contract proposal forms--Conditionsfor issuance--Appeals. A district shall require that bidproposals upon any construction or improvement of any electricalfacility shall be made upon contract proposal form supplied bythe district commission, and in no other manner. The districtcommission shall, before furnishing any person, firm orcorporation desiring to bid upon any electrical work with acontract proposal form, require from such person, firm orcorporation, answers to questions contained in a standard form ofquestionnaire and financial statement, including a completestatement of the financial ability and experience of such person,firm, or corporation in performing electrical work. Suchquestionnaire shall be sworn to before a notary public or otherperson authorized to take acknowledgment of deeds, and shall besubmitted once a year and at such other times as the districtcommission may require. Whenever the district commission is notsatisfied with the sufficiency of the answers contained in suchquestionnaire and financial statement or whenever the districtcommission determines that such person, firm, or corporation doesnot meet all of the requirements hereinafter set forth it mayrefuse to furnish such person, firm or corporation with acontract proposal form and any bid proposal of such person, firmor corporation must be disregarded. In order to obtain acontract proposal form, a person, firm or corporation shall haveall of the following requirements:

(1) Adequate financial resources, or the ability to securesuch resources;

(2) The necessary experience, organization, and technicalqualifications to perform the proposed contract;

(3) The ability to comply with the required performanceschedule taking into consideration all of its existing businesscommitments;

(4) A satisfactory record of performance, integrity,judgment and skills; and

(5) Be otherwise qualified and eligible to receive an awardunder applicable laws and regulations.

Such refusal shall be conclusive unless appeal therefrom tothe superior court of the county where the utility district issituated or Thurston county be taken within fifteen days, whichappeal shall be heard summarily within ten days after the same istaken and on five days' notice thereof to the districtcommission. [1971 ex.s. c 220 § 2.]


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RCW 54.04.090 Minimum wages. Each contractor andsubcontractor performing work for a public utility district or alocal utility district within a public utility district shall payor cause to be paid to its employees on the work or under thecontract or subcontract, not less than the minimum scale fixed bythe resolution of the commission prior to the notice and call forbids on the work. The commission, in fixing the minimum scale ofwages, shall fix them as nearly as possible to the currentprevailing wages within the district for work of like character. [1955 c 124 § 4. Prior: 1931 c 1 § 8, part; RRS § 11612, part.]

NOTES:

Prevailing wages on public works: Chapter 39.12 RCW.

RCW 54.04.092 Application of RCW 54.04.070 through54.04.090 to certain service provider agreements under chapter70.150 RCW. RCW 54.04.070 through 54.04.090 shall not apply toagreements entered into under authority of chapter 70.150 RCWprovided there is compliance with the procurement procedure underRCW 70.150.040. [1986 c 244 § 14.]

NOTES:

Severability--1986 c 244: See RCW 70.150.905.

RCW 54.04.100 Wholesale power--Procedure as to ratefiling--Definition--Duty to furnish to district. Whenever adecree of public use and necessity heretofore has been orhereafter shall be entered in condemnation proceedings conductedby a public utility district for the acquisition of electricaldistribution properties, or whenever it has executed a contractfor the purchase of such properties, the district may cause to befiled with the utilities and transportation commission a copy ofsuch contract or a certified copy of the decree, together with apetition requesting that the commission cause a rate to be filedwith it for the sale of wholesale power to the district. Thereupon the utilities and transportation commission shall orderthat a rate be filed with the commission forthwith for the saleof wholesale power to such district. The term "wholesale power"means electric energy sold for purposes of resale. Thecommission shall have authority to enter such order as to anypublic service corporation which owns or operates the electricaldistribution properties being condemned or purchased or as to anysuch corporation which owns or operates transmission facilitieswithin a reasonable distance of such distribution properties andwhich engages in the business of selling wholesale power,pursuant to contract or otherwise. The rate filed shall be forthe period of service specified by the district, or if thedistrict does not specify a particular period, such rate shall


Page 15

apply from the commencement of service until the districtterminates same by thirty days' written notice.

Upon reasonable notice, any such public service corporationshall furnish wholesale power to any public utility districtowning or operating electrical distribution properties. Whenevera public service corporation shall furnish wholesale power to adistrict and the charge or rate therefor is reviewed by thecommission, such reasonable rate as the commission finally mayfix shall apply as to power thereafter furnished and as to thatpreviously furnished under such charge or rate from the time thatthe complaint concerning the same shall have been filed by thecommission or the district, as the case may be. [1983 c 4 § 5;1945 c 130 § 2; Rem. Supp. 1945 § 10459-12. Formerly RCW54.04.010, 54.04.100, and 54.04.110.]

NOTES:

Purpose--1945 c 130: "The legislature has found that thepublic utility districts of this state, including several whichat the present moment are completing the acquisition ofelectrical properties and the sale of revenue bonds, haveimmediate need for this act, in order to effectuate timelyarrangements for their wholesale power requirements, clarifytheir condemnation procedure, and plan their operations." [1945c 130 § 1.]

Severability--1945 c 130: "If any section or provision ofthis act shall be adjudged to be invalid, such adjudication shallnot affect the validity of the act as a whole or any section,provision or part thereof not adjudged to be invalid." [1945 c130 § 5.]

RCW 54.04.120 Planning powers. In order that thecommissioners of a public utility district may be better able toplan for the marketing of power and for the development ofresources pertaining thereto, they shall have the same powers asare vested in a board of county commissioners as provided in.*chapter 44, Laws of 1935 (sections 9322-2 to 9322-4, bothinclusive, and 9322-10 to 9322-11 inclusive, Remington's RevisedStatutes, also Pierce's Perpetual Code 776-3 to -7, 776-19 and-21), entitled: "An Act relating to city, town, county andregional planning and the creation, organization, duties andpowers of planning commissions." For the purposes of such act,the president of a public utility district shall have the powersof the chairman of the board of county commissioners, and aplanning commission created hereunder shall have the same powers,enumerated in the above sections, with reference to a publicutility district as a county planning commission has withreference to a county. However, this section shall not beconstrued to grant the power to adopt, regulate, or enforcecomprehensive plans, zoning, land use, or building codes. [1985c 95 § 1; 1945 c 130 § 4; Rem. Supp. 1945 § 10459-14.]

NOTES:


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.*Reviser's note: The portions of chapter 44, Laws of 1935compiled as RRS §§ 9322-2 to 9322-4 and 9322-10 to 9322-11 arecodified in RCW 35.63.020 through 35.63.070.

Purpose--Severability--1945 c 130: See notes following RCW54.04.100.

RCW 54.04.130 Employee benefit plans when private utilityacquired--Rights, powers and duties as to existing privateemployee benefit plans. Whenever any municipal corporationacquires by condemnation or otherwise any utility which at thetime of acquisition is in private ownership and the employees ofsuch private utility have been for at least two years and are atthe time of acquisition covered by any plan for individualannuity contracts, retirement income policies, group annuitycontracts, group insurance for the benefit of employees, or anyother contract for the benefit of employees, such district shall,when the personnel is retained by the district, assume all of theobligations and liabilities of the private utility acquired withrelation to such plan and the employees covered thereby at thetime of acquisition; or the municipal corporation may byagreement with a majority of the employees affected substitute aplan or contract of the same or like nature. The municipalcorporations acquiring such private utility shall proceed in suchmanner as is necessary so as not to reduce or impair any benefitsor privileges which such employees would have received or beentitled to had such acquisition not been effected. The districtmay pay all or any part of the premiums or other paymentsrequired therefor out of the revenue derived from the operationof its properties. [1961 c 139 § 1.]

RCW 54.04.140 Employee benefit plans when private utilityacquired--Admission to district's employee plan--Servicecredit--Contributions--Benefits. Any person affected by RCW54.04.130 who was employed by the private utility at the time ofacquisition may, at his option, apply to the district and/orappropriate officers, for admission to any plan available toother employees of the district. Every such person who wascovered at the time of acquisition by a plan with the privateutility shall have added and accredited to his period ofemployment his period of immediately preceding continuous servicewith such private utility if he remains in the service of themunicipal corporation until such plan for which he seeksadmission becomes applicable to him.

No such person shall have added and accredited to his periodof employment his period of service with said private utilityunless he or a third party shall pay to the appropriate officeror fund of the plan to which he requests admission hiscontribution for the period of such service with the privateutility at the rate provided in or for such plan to which hedesires admission, or if he shall be entitled to any privatebenefits, as a result of such private service, unless he agrees


Page 17

at the time of his employment with the district to accept areduction in the payment of any benefits payable under the planto which he requests entry that are based in whole or in part onsuch added and accredited service by the amount of benefitsreceived. For the purposes of contributions, the date of entryof service shall be deemed the date of entry into service withthe private utility, which service is accredited by this section,and the amount of contributions for the period of accreditedservice shall be based on the wages or salary of such personduring that added and accredited period of service with theprivate utility.

The district may receive such payments from a third partyand shall make from such payments contributions with respect tosuch prior service as may be necessary to enable it to assume itsobligations.

After such contributions have been made and such serviceadded and accredited such employee shall be established in theplan to which he seeks admission with all rights, benefits andprivileges that he would have been entitled to had he been amember of the plan from the beginning of his immediatelypreceding continuous employment with the private utility or ofhis eligibility. [1961 c 139 § 2.]

RCW 54.04.150 Employee benefit plans when private utilityacquired--Agreements and contracts--Prior rights preserved. Themunicipal corporation may enter into any agreements and contractsnecessary to carry out the powers and duties prescribed by RCW54.04.130 and 54.04.140, but nothing in RCW 54.04.130 through54.04.160 shall be so construed as requiring without consent themodification of the obligation of any contract or as requiringany third party to modify the rights, privileges or obligationsacquired or incurred under a prior agreement. [1961 c 139 § 3.]

RCW 54.04.160 Assumption of obligations of private pensionplan when urban transportation system acquired. Any municipalcorporation which has heretofore or shall hereafter acquire froma private owner any urban transportation system which at the timeof such acquisition has or had in effect any pension orretirement system for its employees, shall assume all suchobligations with respect to continued contributions to and/oradministration of, such retirement system, as the private ownerbore or shall bear at such time, insofar as shall be necessary todischarge accrued obligations under such retirement system tobeneficiaries who are not thereafter made members of a municipalor state retirement system. [1961 c 139 § 4.]

RCW 54.04.170 Collective bargaining authorized foremployees. Employees of public utility districts are herebyauthorized and entitled to enter into collective bargainingrelations with their employers with all the rights and privilegesincident thereto as are accorded to similar employees in privateindustry. [1963 c 28 § 1.]


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RCW 54.04.180 Collective bargaining authorized fordistricts. Any public utility district may enter into collectivebargaining relations with its employees in the same manner that aprivate employer might do and may agree to be bound by the resultof such collective bargaining. [1963 c 28 § 2.]

RCW 54.04.190 Production and distribution of biodiesel,ethanol, and ethanol blend fuels--Crop purchase contracts fordedicated energy crops. In addition to any other authorityprovided by law, public utility districts are authorized toproduce and distribute biodiesel, ethanol, and ethanol blendfuels, including entering into crop purchase contracts for adedicated energy crop for the purpose of generating electricityor producing biodiesel produced from Washington feedstocks,cellulosic ethanol, and cellulosic ethanol blend fuels for use ininternal operations of the electric utility and for sale ordistribution. [2007 c 348 § 210.]

NOTES:

Findings--Part headings not law--2007 c 348: See RCW43.325.005 and 43.325.903.

CHAPTER 54.08 RCW

FORMATION--DISSOLUTION--ELECTIONS

Sections

54.08.001 Actions subject to review by boundary review board.54.08.010 Districts including entire county or less--Procedure.54.08.041 Formation election expenses.54.08.050 Validity of district, questioning of.54.08.060 Special election for formation of district and first

commissioners--Terms.54.08.070 Construction or acquisition of electric facilities

for generation, transmission, or distribution ofpower--When voter approval required--Election.

54.08.080 Dissolution.

RCW 54.08.001 Actions subject to review by boundary reviewboard. Actions taken under chapter 54.08 RCW may be subject topotential review by a boundary review board under chapter 36.93RCW. [1989 c 84 § 47.]

RCW 54.08.010 Districts including entire county orless--Procedure. At any general election held in aneven-numbered year, the county legislative authority of anycounty in this state may, or, on petition of ten percent of theRevised Code of Washington Title 54 - Public Utility Districts (2009)

Page 19

qualified electors of the county based on the total vote cast inthe last general county election held in an even-numbered year,shall, by resolution, submit to the voters of the county theproposition of creating a public utility district which shall becoextensive with the limits of the county as now or hereafterestablished. A form of petition for the creation of a publicutility district shall be submitted to the county auditor withinten months prior to the election at which the proposition is tobe submitted to the voters. Petitions shall be filed with thecounty auditor not less than four months before the election andthe county auditor shall within thirty days examine thesignatures thereof and certify to the sufficiency orinsufficiency thereof. If the petition be found to beinsufficient, it shall be returned to the persons filing thesame, who may amend or add names thereto for ten days, when thesame shall be returned to the county auditor, who shall have anadditional fifteen days to examine the same and attach hiscertificate thereto. No person having signed the petition shallbe allowed to withdraw his name therefrom after the filing of thesame with the county auditor: PROVIDED, That each signatureshall be dated and that no signature dated prior to the date onwhich the form of petition was submitted to the county auditorshall be valid. Whenever the petition shall be certified to assufficient, the county auditor shall forthwith transmit the same,together with his certificate of sufficiency attached thereto, tothe county legislative authority which shall submit theproposition to the voters of the county at the next generalelection in an even-numbered year according to RCW 29A.04.330. The notice of the election shall state the boundaries of theproposed public utility district and the object of such election,and shall in other respects conform to the requirements of thegeneral laws of the state of Washington, governing the time andmanner of holding elections. In submitting the question to thevoters for their approval or rejection, the proposition shall beexpressed on the ballot substantially in the following terms:

Public Utility District No. . . . YES GPublic Utility District No. . . .NO G

Any petition for the formation of a public utility districtmay describe a less area than the entire county in which thepetition is filed, the boundaries of which shall follow the thenexisting precinct boundaries and not divide any voting precinct;and in the event that such a petition is filed the countylegislative authority shall fix a date for a hearing on suchpetition, and shall publish the petition, without the signaturesthereto appended, for two weeks prior to the date of the hearing,together with a notice stating the time of the meeting when thepetition will be heard. The publication, and all otherpublications required by chapter 1, Laws of 1931, shall be in anewspaper of general circulation in the county in which thedistrict is situated. The hearing on the petition may beadjourned from time to time, not exceeding four weeks in all. Ifupon the final hearing the county legislative authority shallfind that any lands have been unjustly or improperly includedwithin the proposed public utility district and will not bebenefited by inclusion therein, it shall change and fix theRevised Code of Washington Title 54 - Public Utility Districts (2009)

Page 20

boundary lines in such manner as it shall deem reasonable andjust and conducive to the public welfare and convenience, andmake and enter an order establishing and defining the boundarylines of the proposed public utility district: PROVIDED, That nolands shall be included within the boundaries so fixed lyingoutside the boundaries described in the petition, except upon thewritten request of the owners of those lands. Thereafter thesame procedure shall be followed as prescribed in this chapterfor the formation of a public utility district including anentire county, except that the petition and election shall beconfined solely to the lesser public utility district.

No public utility district created after September 1, 1979,shall include any other public utility district within itsboundaries: PROVIDED, That this paragraph shall not alter,amend, or modify provisions of chapter 54.32 RCW. [2006 c 344 §36; 1985 c 469 § 55; 1979 ex.s. c 240 § 1; 1977 c 53 § 1; 1931 c1 § 3; RRS § 11607. Formerly RCW 54.08.010 and 54.08.020.]

NOTES:

Effective date--2006 c 344 §§ 1-16 and 18-40: See notefollowing RCW 29A.04.311.

Elections: Title 29A RCW.

RCW 54.08.041 Formation election expenses. All expenses ofelections for the formation of such public utility districtsshall be paid by the county holding such election, and suchexpenditure is hereby declared to be for a county purpose, andthe money paid out for such purpose shall be repaid to suchcounty by the public utility district, if formed. [1969 c 106 §2.]

NOTES:

Construction--1969 c 106: "The rule of strict constructionshall have no application to this act. The act shall beliberally construed, in order to carry out the purposes andobjectives for which this act is intended." [1969 c 106 § 8.]

Severability--1969 c 106: "If any provision of this act, orits application to any person or circumstance, is held invalid,the remainder of this act, or the application to other persons orcircumstances, is not affected." [1969 c 106 § 9.]

RCW 54.08.050 Validity of district, questioning of. Theexistence of any public utility district now or hereafter formedunder chapter 1, Laws of 1931, cannot hereafter be legallyquestioned by any person except the state of Washington in anappropriate court action brought within six months from the datethat the county election board shall have canvassed the returnsof the election held on the proposition of creating suchdistrict. If the existence of a district is not challenged


Page 21

within the period above specified, by the filing and service ofpetition or complaint in the action aforesaid, the state ofWashington thereafter shall be barred forever from questioningthe legal existence and validity of such district by reason ofany defect in the organization thereof, and the same shall bedeemed duly and regularly organized under the laws of this state. [1941 c 245 § 10; Rem. Supp. 1941 § 11616-7.]

RCW 54.08.060 Special election for formation of districtand first commissioners--Terms. Whenever a proposition for theformation of a public utility district is to be submitted tovoters in any county, the county legislative authority may byresolution call a special election, and at the request ofpetitioners for the formation of such district contained in thepetition shall do so and shall provide for holding the same atthe earliest practicable time. If the boundaries of the proposeddistrict embrace an area less than the entire county, suchelection shall be confined to the area so included. The noticeof such election shall state the boundaries of the proposeddistrict and the object of such election; in other respects, suchelection shall be held and called in the same manner as providedby law for the holding and calling of general elections: PROVIDED, That notice thereof shall be given for not less thanten days nor more than thirty days prior to such specialelection. In submitting the proposition to the voters for theirapproval or rejection, such proposition shall be expressed on theballots in substantially the following terms:

Public Utility District No. . . .YESPublic Utility District No. . . . NO

At the same special election on the proposition to form apublic utility district, there shall also be an election forthree public utility district commissioners. However, theelection of such commissioners shall be null and void if theproposition to form the public utility district does not receiveapproval by a majority of the voters voting on the proposition. No primary shall be held. A special filing period shall beopened as provided in .*RCW 29.15.170 and 29.15.180. The personreceiving the greatest number of votes for the commissioner ofeach commissioner district shall be elected as the commissionerof that district. Commissioner districts shall be established asprovided in RCW 54.12.010. The terms of the initialcommissioners shall be staggered as follows: (1) The person whois elected receiving the greatest number of votes shall beelected to a six-year term of office if the election is held inan even-numbered year or a five-year term if the election is heldin an odd-numbered year; (2) the person who is elected receivingthe next greatest number of votes shall be elected to a four-yearterm of office if the election is held in an even-numbered yearor a three-year term of office if the election is held in anodd-numbered year; and (3) the other person who is elected shallbe elected to a two-year term of office if the election is heldin an even-numbered year or a one-year term of office if theelection is held in an odd-numbered year. The commissioners


Page 22

first to be elected at such special election shall assume officeimmediately when they are elected and qualified, but the lengthof their terms of office shall be calculated from the first dayin January in the year following their elections.

The term "general election" as used herein means biennialgeneral elections at which state and county officers in anoncharter county are elected. [1994 c 223 § 55; 1979 ex.s. c126 § 36; 1951 c 207 § 5.]

NOTES:

.*Reviser's note: RCW 29.15.170 and 29.15.180 wererecodified as RCW 29A.24.170 and 29A.24.180, respectively,pursuant to 2003 c 111 § 2401, effective July 1, 2004. RCW29A.24.170 and 29A.24.180 were subsequently repealed by 2004 c271 § 193. Later enactment of RCW 29A.24.170 and 29A.24.180, seeRCW 29A.24.171 and 29A.24.181, respectively.

Purpose--1979 ex.s. c 126: See RCW 29A.20.040(1).

Elections: Title 29A RCW.

RCW 54.08.070 Construction or acquisition of electricfacilities for generation, transmission, or distribution ofpower--When voter approval required--Election. Any districtwhich does not own or operate electric facilities for thegeneration, transmission or distribution of electric power onMarch 25, 1969, or any district which hereafter does notconstruct or acquire such electric facilities within ten years ofits creation, shall not construct or acquire any such electricfacilities without the approval of such proposal by the voters ofsuch district: PROVIDED, That a district shall have the power toconstruct or acquire electric facilities within ten yearsfollowing its creation by action of its commission without voterapproval of such action.

At any general election held in an even-numbered year, theproposal to construct or acquire electric facilities may besubmitted to the voters of the district by resolution of thepublic utility district commission or shall be submitted to thevoters of the district by the county legislative authority onpetition of ten percent of the qualified electors of suchdistrict, based on the total vote cast in the last general countyelection held in an even-numbered year. A form of petition forthe construction or acquisition of electric facilities by thepublic utility district shall be submitted to the county auditorwithin ten months prior to the election at which such propositionis to be submitted to the voters. Petitions shall be filed withthe county auditor not less than four months before such electionand the county auditor shall within thirty days examine thesignatures thereof and certify to the sufficiency orinsufficiency thereof. If such petition is found to beinsufficient, it shall be returned to the persons filing thesame, who may amend and add names thereto for ten days, when thesame shall be returned to the county auditor, who shall have an


Page 23

additional fifteen days to examine the same and attach hiscertificate thereto. No person having signed such petition shallbe allowed to withdraw his name therefrom after the filing of thesame with the county auditor: PROVIDED, That each signatureshall be dated and that no signature dated prior to the date onwhich the form of petition was submitted to the county auditorshall be valid. Whenever such petition shall be certified to assufficient, the county auditor shall forthwith transmit the same,together with his certificate of sufficiency attached thereto, tothe county legislative authority which shall submit suchproposition to the voters of said district at the next generalelection in an even-numbered year according to RCW 29A.04.330. The notice of the election shall state the object of suchelection, and shall in other respects conform to the requirementsof the general laws of Washington, governing the time and mannerof holding elections.

The proposal submitted to the voters for their approval orrejection, shall be expressed on the ballot substantially in thefollowing terms:

Shall Public Utility District No. . . . . of . . . . . .County construct or acquire electric facilities for thegeneration, transmission or distribution of electric power?

Yes GNo G

Within ten days after such election, the election board ofthe county shall canvass the returns, and if at such election amajority of the voters voting on such proposition shall vote infavor of such construction or acquisition of electric facilities,the district shall be authorized to construct or acquire electricfacilities. [2006 c 344 § 37; 1979 ex.s. c 240 § 2; 1969 c 106 §3.]

NOTES:

Effective date--2006 c 344 §§ 1-16 and 18-40: See notefollowing RCW 29A.04.311.

Construction--Severability--1969 c 106: See notes followingRCW 54.08.041.

RCW 54.08.080 Dissolution. Any district now or hereaftercreated under the laws of this state may be dissolved, ashereinafter provided, by a majority vote of the qualifiedelectors of such district at any general election upon aresolution of the district commission, or upon petition beingfiled and such proposition for dissolution submitted to saidelectors in the same manner provided by chapter 54.08 RCW for thecreation of public utility districts. The returns of theelection on such proposition for dissolution shall be canvassedand the results declared in the same manner as is provided by RCW54.08.010: PROVIDED, HOWEVER, That any such proposition todissolve a district shall not be submitted to the electors ifwithin five years prior to the filing of such petition or


Page 24

resolution such district has undertaken any material studies ormaterial action relating to the construction or acquisition ofany utility properties or if such district at the time of thesubmission of such proposition is actually engaged in theoperation of any utility properties.

If a majority of the votes cast at the election favordissolution, the commission of the district shall petition,without any filing fee, the superior court of the county in whichsuch district is located for an order authorizing the payment ofall indebtedness of the district and directing the transfer ofany surplus funds or property to the general fund of the countyin which such district is organized. [1969 c 106 § 4.]

NOTES:


Dissolution of special purpose districts: Chapters 36.96 and53.48 RCW.

CHAPTER 54.12 RCW

COMMISSIONERS

Sections

54.12.010 Exercise of power bycommissioners--Number--Districts--Terms--Vacancies--Adjustment of boundaries.

54.12.080 Compensation and expenses--Group insurance.54.12.090 President--Secretary--Rules--Seal--Minutes.54.12.100 Oath or affirmation.54.12.110 Electrical utilities--Civil immunity of commissioners

and employees for good faith mistakes and errorsof judgment.

NOTES:

Redistricting by local governments and municipalcorporations--Census information for--Plan, prepared when,criteria for, hearing on, request for review of,certification, remand--Sanctions when review requestfrivolous: RCW 29A.76.010.

RCW 54.12.010 Exercise of power bycommissioners--Number--Districts--Terms--Vacancies--Adjustment ofboundaries. A public utility district that is created asprovided in RCW 54.08.010 shall be a municipal corporation of thestate of Washington, and the name of such public utility districtshall be Public Utility District No. . . . . of . . . . . .County.


Page 25

The powers of the public utility district shall be exercisedthrough a commission consisting of three members in threecommissioner districts, and five members in five commissionerdistricts.

(1) If the public utility district is countywide and thecounty has three county legislative authority districts, then, atthe first election of commissioners and until any change is madein the boundaries of public utility district commissionerdistricts, one public utility district commissioner shall bechosen from each of the three county legislative authoritydistricts.

(2) If the public utility district comprises only a portionof the county, with boundaries established in accordance withchapter 54.08 RCW, or if the public utility district iscountywide and the county does not have three county legislativeauthority districts, three public utility district commissionerdistricts, numbered consecutively, each with approximately equalpopulation and following precinct lines, as far as practicable,shall be described in the petition for the formation of thepublic utility district, subject to appropriate change by thecounty legislative authority if and when it changes theboundaries of the proposed public utility district. Onecommissioner shall be elected as a commissioner of each of thepublic utility district commissioner districts.

(3) Only a registered voter who resides in a commissionerdistrict may be a candidate for, or hold office as, acommissioner of the commissioner district. Only voters of acommissioner district may vote at a primary to nominatecandidates for a commissioner of the commissioner district. Voters of the entire public utility district may vote at ageneral election to elect a person as a commissioner of thecommissioner district.

(4) The term of office of each public utility districtcommissioner other than the commissioners at large shall be sixyears, and the term of each commissioner at large shall be fouryears. Each term shall be computed in accordance with RCW29A.20.040 following the commissioner's election. All publicutility district commissioners shall hold office until theirsuccessors shall have been elected and have qualified and assumeoffice in accordance with RCW 29A.20.040.

(5) A vacancy in the office of public utility districtcommissioner shall occur as provided in chapter 42.12 RCW or bynonattendance at meetings of the public utility districtcommission for a period of sixty days unless excused by thepublic utility district commission. Vacancies on a board ofpublic utility district commissioners shall be filled as providedin chapter 42.12 RCW.

(6) The boundaries of the public utility districtcommissioner districts may be changed only by the public utilitydistrict commission, and shall be examined every ten years todetermine substantial equality of population in accordance withchapter 29A.76 RCW. Except as provided in this section or RCW54.04.039, the boundaries shall not be changed oftener than oncein four years. Boundaries may only be changed when all membersof the commission are present. Whenever territory is added to apublic utility district under RCW 54.04.035, or added orRevised Code of Washington Title 54 - Public Utility Districts (2009)

Page 26

withdrawn under RCW 54.04.039, the boundaries of the publicutility commissioner districts shall be changed to include theadditional or exclude the withdrawn territory. Unless theboundaries are changed pursuant to RCW 54.04.039, the proposedchange of the boundaries of the public utility districtcommissioner district must be made by resolution and after publichearing. Notice of the time of the public hearing shall bepublished for two weeks before the hearing. Upon a referendumpetition signed by ten percent of the qualified voters of thepublic utility district being filed with the county auditor, thecounty legislative authority shall submit the proposed change ofboundaries to the voters of the public utility district for theirapproval or rejection. The petition must be filed within ninetydays after the adoption of resolution of the proposed action. The validity of the petition is governed by the provisions ofchapter 54.08 RCW. [2004 c 113 § 1; 1994 c 223 § 56; 1990 c 59 §109; 1987 c 292 § 1; 1979 ex.s. c 126 § 37; 1977 ex.s. c 36 § 8;1977 c 53 § 2; 1969 c 106 § 1; 1959 c 265 § 9; 1941 c 245 § 4;1931 c 1 § 4; Rem. Supp. 1941 § 11608. Formerly RCW 54.08.030,54.08.040, 54.12.010 through 54.12.070.]

NOTES:

Effective date--2004 c 113: See note following RCW54.04.039.

Intent--Effective date--1990 c 59: See notes following RCW29A.04.013.

Purpose--1979 ex.s. c 126: See RCW 29A.20.040(1).


RCW 54.12.080 Compensation and expenses--Group insurance. (1) Commissioners of public utility districts are eligible toreceive salaries as follows:

(a) Each public utility district commissioner of a districtoperating utility properties shall receive a salary of onethousand four hundred dollars per month during a calendar year ifthe district received total gross revenue of over fifteen milliondollars during the fiscal year ending June 30th before thecalendar year. However, the board of commissioners of such apublic utility district may pass a resolution increasing the rateof salary up to one thousand eight hundred dollars per month.

(b) Each public utility district commissioner of a districtoperating utility properties shall receive a salary of onethousand dollars per month during a calendar year if the districtreceived total gross revenue of from two million dollars tofifteen million dollars during the fiscal year ending June 30thbefore the calendar year. However, the board of commissioners ofsuch a public utility district may pass a resolution increasingthe rate of salary up to one thousand three hundred dollars permonth.


Page 27

(c) Commissioners of other districts shall serve withoutsalary. However, the board of commissioners of such a publicutility district may pass a resolution providing for salaries notexceeding six hundred dollars per month for each commissioner.

(2) In addition to salary, all districts may provide byresolution for the payment of per diem compensation to eachcommissioner at a rate not exceeding ninety dollars for each dayor portion thereof spent in actual attendance at officialmeetings of the district commission or in performance of otherofficial services or duties on behalf of the district, to includemeetings of the commission of his or her district or meetingsattended by one or more commissioners of two or more districtscalled to consider business common to them, but such compensationpaid during any one year to a commissioner shall not exceedtwelve thousand six hundred dollars. Per diem compensation shallnot be paid for services of a ministerial or professional nature.

(3) Any commissioner may waive all or any portion of his orher compensation payable under this section as to any month ormonths during his or her term of office, by a written waiverfiled with the district as provided in this section. The waiver,to be effective, must be filed any time after the commissioner'selection and prior to the date on which the compensation wouldotherwise be paid. The waiver shall specify the month or periodof months for which it is made.

(4) Each district commissioner shall be reimbursed forreasonable expenses actually incurred in connection with suchbusiness and meetings, including his or her subsistence andlodging and travel while away from his or her place of residence.

(5) Any district providing group insurance for itsemployees, covering them, their immediate family, and dependents,may provide insurance for its commissioner with the samecoverage.

The dollar thresholds established in this section must beadjusted for inflation by the office of financial managementevery five years, beginning July 1, 2008, based upon changes inthe consumer price index during that time period. "Consumerprice index" means, for any calendar year, that year's annualaverage consumer price index, for Washington state, for wageearners and clerical workers, all items, compiled by the bureauof labor and statistics, United States department of labor. Ifthe bureau of labor and statistics develops more than oneconsumer price index for areas within the state, the indexcovering the greatest number of people, covering areasexclusively within the boundaries of the state, and including allitems shall be used for the adjustments for inflation in thissection. The office of financial management must calculate thenew dollar threshold and transmit it to the office of the codereviser for publication in the Washington State Register at leastone month before the new dollar threshold is to take effect.

A person holding office as commissioner for two or morespecial purpose districts shall receive only that per diemcompensation authorized for one of his or her commissionerpositions as compensation for attending an official meeting orconducting official services or duties while representing morethan one of his or her districts. However, such commissioner mayreceive additional per diem compensation if approved byRevised Code of Washington Title 54 - Public Utility Districts (2009)

Page 28

resolution of all boards of the affected commissions. [2008 c218 § 1; 2007 c 469 § 4; 1998 c 121 § 4; 1997 c 28 § 1; 1985 c330 § 4; 1977 ex.s. c 157 § 1; 1969 c 106 § 5; 1967 c 161 § 1;1957 c 140 § 2; 1955 c 124 § 5; 1951 c 207 § 4. Prior: (i) 1931c 1 § 8, part; RRS § 11612, part. (ii) 1941 c 245 § 6; Rem.Supp. 1941 § 11616-5.]

NOTES:


Group employee insurance: RCW 54.04.050.

Hospitalization and medical insurance not deemed additionalcompensation: RCW 41.04.190.

RCW 54.12.090 President--Secretary--Rules--Seal--Minutes. The commission shall elect from its members, a president andsecretary, and shall, by resolution, adopt rules governing thetransaction of district business, and adopt an official seal. All proceedings of the commission shall be by motion orresolution, recorded in its minute books, which shall be publicrecords.

A majority of the members shall constitute a quorum of thecommission for the transaction of business. The concurrence of amajority of the whole commission in office at the time shall benecessary for the passage of any resolution, and no businessshall be transacted, except in usual and ordinary course, unlessthere are in office at least a majority of the full number ofcommissioners as fixed by law.

The commission may create and fill such positions and fixsalaries and bonds thereof as it may provide by resolution. [1955 c 124 § 6. Prior: 1931 c 1 § 8, part; RRS § 11612, part.]

RCW 54.12.100 Oath or affirmation. Each commissionerbefore he enters upon the duties of his office shall take andsubscribe an oath or affirmation that he will faithfully andimpartially discharge the duties of his office to the best of hisability. This oath, or affirmation, shall be administered andcertified by an officer of the county in which the district issituated, who is authorized to administer oaths, without chargetherefor. The oath or affirmation shall be filed with the countyauditor. [1986 c 167 § 23; 1959 c 265 § 10.]

NOTES:

Severability--1986 c 167: See note following RCW29A.04.049.

RCW 54.12.110 Electrical utilities--Civil immunity ofcommissioners and employees for good faith mistakes and errors of


Page 29

judgment. Commissioners and employees of public utilitydistricts shall be immune from civil liability for mistakes anderrors of judgment in the good faith performance of acts withinthe scope of their official duties involving the exercise ofjudgment and discretion which relate solely to theirresponsibilities for electrical utilities. This grant ofimmunity shall not be construed as modifying the liability of thepublic utility district. [1983 1st ex.s. c 48 § 2.]

NOTES:

Severability--1983 1st ex.s. c 48: See note following RCW35.21.415.

CHAPTER 54.16 RCW

POWERS

Sections

54.16.005 Definitions.54.16.010 Surveys, plans, investigations, or studies.54.16.020 Acquisition of property and rights--Eminent domain.54.16.030 Water and irrigation works.54.16.032 Authority to assist customers in the acquisition of

water conservation equipment--Limitations.54.16.035 Provision of water service beyond district subject to

review by boundary review board.54.16.040 Electric energy.54.16.045 Nonpolluting power generation by

individual--Exemption fromregulation--Authorization to contract withutility.

54.16.047 Hydroelectric resources--Separate legalauthority--Creation by irrigation districts andcities, towns, or public utility districts.

54.16.050 Water rights.54.16.060 Intertie lines.54.16.070 District may borrow money, contract indebtedness,

issue bonds or obligations--Guaranty fund.54.16.080 Levy and collection of taxes--Tax anticipation

warrants.54.16.083 Community revitalization financing--Public

improvements.54.16.085 Interfund loans.54.16.090 Contracts with other agencies or utilities--Gifts,

etc.--Employees and experts--Advancements.54.16.092 Employment interview expenses.54.16.095 Liability insurance for officials and employees.54.16.096 Liability insurance for officers and employees

authorized.54.16.097 Actions against officer, employee, or agent--Defense

and costs provided by public utilitydistrict--Exception.


Page 30

54.16.100 Manager--Appointment--Compensation--Duties.54.16.110 May sue and be sued--Claims.54.16.120 Local utility districts authorized.54.16.125 Exemption of farm and agricultural land from special

benefit assessments.54.16.130 Local districts--Procedure--Financing.54.16.140 Petition or resolution for local

district--Hearing--Notice.54.16.142 Local utility districts--Notice must contain

statement that assessments may vary fromestimates.

54.16.145 Local utility districts--Sanitary sewer or potablewater facilities--Notice to certain propertyowners.

54.16.150 Procedure when petition is signed by majority oflandowners.

54.16.160 Assessment roll--Hearing--Appellate review--Expenses.54.16.165 Segregation of assessments.54.16.170 Apportionment of cost of improvement.54.16.180 Sale, lease, disposition of properties, equipment,

and materials--Procedure--Acquisition, operationof sewage system by districts in certaincounties.

54.16.190 General resolutions.54.16.200 Joint exercise of powers and joint acquisition of

properties.54.16.210 Joint acquisition, operation, etc., with city of

electrical utility properties.54.16.220 Columbia river hydroelectric projects--Grant back of

easements to former owners.54.16.230 Sewage system works--Acquire, construct, operate,

etc.--Authorizing election--Procedure.54.16.240 Sewage system works--Resolution or petition--Voter

approval or rejection.54.16.250 Sewage system works--Ballot proposition--Canvass.54.16.260 Sewage system works--Accounts and funding.54.16.270 Sewage system works--Existing authority not affected.54.16.280 Energy conservation plan--Financing authorized for

energy conservation projects in structures orequipment--Limitations.

54.16.285 Limitations on termination of utility service forresidential heating.

54.16.300 Combined utility functions.54.16.310 Operation, maintenance, and inspection of sewage

disposal facilities, septic tanks, and wastewaterdisposal facilities and systems--Maintenancecosts.

54.16.320 Assumption of substandard water system--Limitedimmunity from liability.

54.16.330 Telecommunicationsfacilities--Purposes--Limitations--Provision ofwholesale telecommunications services--Eminentdomain.

54.16.340 Wholesale telecommunications services--Petition forreview of rates, terms, conditions.


Page 31

54.16.350 Tariff for irrigation pumping service--Authority tobuy back electricity.

54.16.360 Cooperative watershed management.54.16.370 Purchase of electric power and energy from joint

operating agency.54.16.380 Appliance repair service--Operation by district.54.16.385 Appliance repair service--Requirements.54.16.390 Environmental mitigation activities.54.16.400 Voluntary donations for purposes of urban forestry.

NOTES:

Deferral of special assessments: Chapter 84.38 RCW.

Special benefit assessments--Property taxes--Exemptions: RCW84.34.300 through 84.34.380.

RCW 54.16.005 Definitions. The definitions in this sectionapply throughout this chapter unless the context clearly requiresotherwise.

(1) "Commission" means the Washington utilities andtransportation commission.

(2) "Telecommunications" has the same meaning as thatcontained in RCW 80.04.010.

(3) "Telecommunications facilities" means lines, conduits,ducts, poles, wires, cables, crossarms, receivers, transmitters,instruments, machines, appliances, instrumentalities and alldevices, real estate, easements, apparatus, property, and routesused, operated, owned, or controlled by any entity to facilitatethe provision of telecommunications services.

(4) "Wholesale telecommunications services" means theprovision of telecommunications services or facilities for resaleby an entity authorized to provide telecommunications services tothe general public and internet service providers. [2000 c 81 §2.]

NOTES:

Findings--2000 c 81: See note following RCW 53.08.005.

RCW 54.16.010 Surveys, plans, investigations, or studies. A district may make surveys, plans, investigations or studies forgenerating electric energy by water power, steam, or othermethods, and for systems and facilities for the generation,transmission or distribution thereof, and for domestic andindustrial water supply and irrigation, and for matters andpurposes reasonably incidental thereto, within or without thedistrict, and compile comprehensive maps and plans showing theterritory that can be most economically served by the variousresources and utilities, the natural order in which they shouldbe developed, and how they may be joined and coordinated to makea complete and systematic whole. [1969 c 106 § 6; 1955 c 390 §


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2. Prior: 1945 c 143 § 1(a); 1931 c 1 § 6(a); Rem. Supp. 1945 §11610(a).]

NOTES:


RCW 54.16.020 Acquisition of property and rights--Eminentdomain. A district may construct, condemn and purchase,purchase, acquire, lease, add to, maintain, operate, develop, andregulate all lands, property, property rights, water, waterrights, dams, ditches, flumes, aqueducts, pipes and pipe lines,water power, leases, easements, rights-of-way, franchises,plants, plant facilities, and systems for generating electricenergy by water power, steam, or other methods; plants, plantfacilities, and systems for developing, conserving, anddistributing water for domestic use and irrigation; buildings,structures, poles and pole lines, and cables and conduits and anyand all other facilities; and may exercise the right of eminentdomain to effectuate the foregoing purposes or for theacquisition and damaging of such property and rights, or propertyof any kind appurtenant thereto, and for the purpose of acquiringthe right to make physical connection with plants and plantfacilities of all persons and municipalities. The right ofeminent domain shall be exercised pursuant to resolution of thecommission and conducted in the same manner and by the sameprocedure as is provided for the exercise of that power by citiesand towns of the state in the acquisition of like property andproperty rights. It shall be no defense to a condemnationproceeding that a portion of the electric current generated orsold by the district will be applied to private purposes, if theprincipal uses intended are public: PROVIDED, That no publicutility owned by a city or town shall be condemned, and noneshall be purchased without submission of the question to thevoters of the utility district. In a condemnation proceeding,the court shall submit to the jury the values placed upon theproperty by the taxing authority for taxation purposes, and inrespect to property, plants, and facilities of persons usingpublic highways for furnishing public service without franchises,shall consider in determining the value thereof the fact that theproperty, plants, and facilities are subject to be removed fromthe highways by reason of being so operated without a franchise. [1955 c 390 § 3. Prior: 1945 c 143 § 1(b); 1931 c 1 § 6(b);Rem. Supp. 1945 § 11610(b).]

NOTES:

Eminent domain: State Constitution Art. 1 § 16 (Amendment 9).

Eminent domain by cities: Chapter 8.12 RCW.


Page 33

RCW 54.16.030 Water and irrigation works. A district mayconstruct, purchase, condemn and purchase, acquire, add to,maintain, conduct, and operate water works and irrigation plantsand systems, within or without its limits, for the purpose offurnishing the district, and the inhabitants thereof, and of thecounty in which the district is located, and any other personsincluding public and private corporations within or without thelimits of the district or the county, with an ample supply ofwater for all purposes, public and private, including waterpower, domestic use, and irrigation, with full and exclusiveauthority to sell and regulate and control the use, distribution,and price thereof. [1999 c 154 § 1; 1998 c 49 § 1; 1955 c 390 §4. Prior: 1945 c 143 § 1(c); 1931 c 1 § 6(c); Rem. Supp. 1945 §11610(c).]

RCW 54.16.032 Authority to assist customers in theacquisition of water conservation equipment--Limitations. Anydistrict is hereby authorized, within limits established by theConstitution of the state of Washington, to assist the owners ofstructures in financing the acquisition and installation offixtures, systems, and equipment, for compensation or otherwise,for the conservation or more efficient use of water in thestructures under a water conservation plan adopted by thedistrict if the cost per unit of water saved or conserved by theuse of the fixtures, systems, and equipment is less than the costper unit of water supplied by the next least costly new watersource available to the district to meet future demand. Exceptwhere otherwise authorized, assistance shall be limited to:

(1) Providing an inspection of the structure, eitherdirectly or through one or more inspectors under contract, todetermine and inform the owner of the estimated cost ofpurchasing and installing conservation fixtures, systems, andequipment for which financial assistance will be approved and theestimated life cycle savings to the water system and the consumerthat are likely to result from the installation of the fixtures,systems, or equipment;

(2) Providing a list of businesses that sell and install thefixtures, systems, and equipment within or in close proximity tothe service area of the city or town, each of which businessesshall have requested to be included and shall have the ability toprovide the products in a workmanlike manner and to utilize thefixtures, systems, and equipment in accordance with theprevailing national standards;

(3) Arranging to have approved conservation fixtures,systems, and equipment installed by a private contractor whosebid is acceptable to the owner of the structure and verifying theinstallation; and

(4) Arranging or providing financing for the purchase andinstallation of approved conservation fixtures, systems, andequipment. The fixtures, systems, and equipment shall bepurchased or installed by a private business, the owner, or theutility.

Pay back shall be in the form of incremental additions tothe utility bill, billed either together with use charge or


Page 34

separately. Loans shall not exceed two hundred forty months inlength. [2009 c 416 § 2; 1989 c 421 § 4.]

NOTES:

Intent--Contingent effective date--1989 c 421: See notesfollowing RCW 35.92.017.

RCW 54.16.035 Provision of water service beyond districtsubject to review by boundary review board. The provision ofwater service beyond the boundaries of a public utility districtmay be subject to potential review by a boundary review boardunder chapter 36.93 RCW. [1989 c 84 § 48.]

RCW 54.16.040 Electric energy. A district may purchase,within or without its limits, electric current for sale anddistribution within or without its limits, and construct, condemnand purchase, purchase, acquire, add to, maintain, conduct, andoperate works, plants, transmission and distribution lines andfacilities for generating electric current, operated either bywater power, steam, or other methods, within or without itslimits, for the purpose of furnishing the district, and theinhabitants thereof and any other persons, including public andprivate corporations, within or without its limits, with electriccurrent for all uses, with full and exclusive authority to selland regulate and control the use, distribution, rates, service,charges, and price thereof, free from the jurisdiction andcontrol of the utilities and transportation commission, in allthings, together with the right to purchase, handle, sell, orlease motors, lamps, transformers and all other kinds ofequipment and accessories necessary and convenient for the use,distribution, and sale thereof: PROVIDED, That the commissionshall not supply water to a privately owned utility for theproduction of electric energy, but may supply, directly orindirectly, to an instrumentality of the United States governmentor any publicly or privately owned public utilities which sellelectric energy or water to the public, any amount of electricenergy or water under its control, and contracts therefor shallextend over such period of years and contain such terms andconditions for the sale thereof as the commission of the districtshall elect; such contract shall only be made pursuant to aresolution of the commission authorizing such contract, whichresolution shall be introduced at a meeting of the commission atleast ten days prior to the date of the adoption of theresolution: PROVIDED FURTHER, That it shall first make adequateprovision for the needs of the district, both actual andprospective. [1955 c 390 § 5. Prior: 1945 c 143 § 1(d); 1931 c1 § 6(d); Rem. Supp. 1945 § 11610(d).]

NOTES:

Joint operating agency: RCW 43.52.360.


Page 35

Reduced utility rates for low-income senior citizens and otherlow-income citizens: RCW 74.38.070.

Right of city or town to acquire electrical distribution propertyfrom P.U.D.: RCW 35.92.054.

RCW 54.16.045 Nonpolluting power generation byindividual--Exemption from regulation--Authorization to contractwith utility. See chapter 80.58 RCW.

RCW 54.16.047 Hydroelectric resources--Separate legalauthority--Creation by irrigation districts and cities, towns, orpublic utility districts. See RCW 87.03.825 through 87.03.840.

RCW 54.16.050 Water rights. A district may take, condemnand purchase, purchase and acquire any public and privateproperty, franchises and property rights, including state,county, and school lands, and property and littoral and waterrights, for any of the purposes aforesaid, and for railroads,tunnels, pipe lines, aqueducts, transmission lines, and all otherfacilities necessary or convenient, and, in connection with theconstruction, maintenance, or operation of any such utilities,may acquire by purchase or condemnation and purchase the right todivert, take, retain, and impound and use water from or in anylake or watercourse, public or private, navigable ornonnavigable, or held, owned, or used by the state, or anysubdivision thereof, or by any person for any public or privateuse, or any underflowing water within the state; and the districtmay erect, within or without its limits, dams or other worksacross any river or watercourse, or across or at the outlet ofany lake, up to and above high water mark; and, for the purposeof constructing or laying aqueducts or pipelines, dams, orwaterworks or other necessary structures in storing, retaining,and distributing water, or for any other purpose authorizedhereunder, the district may occupy and use the beds and shores upto the high water mark of any such lake, river, or watercourse,and acquire by purchase or by condemnation and purchase, orotherwise, any water, water rights, easements, or privilegesnamed herein or necessary for any of such purposes, and adistrict may acquire by purchase, or condemnation and purchase,or otherwise, any lands, property, or privileges necessary toprotect the water supply of the district from pollution: PROVIDED, That should private property be necessary for any ofits purposes, or for storing water above high water mark, thedistrict may condemn and purchase, or purchase and acquire suchprivate property. [1955 c 390 § 6. Prior: 1945 c 143 § 1(e),part; 1931 c 1 § 6(e), part; Rem. Supp. 1945 § 11610(e), part.]

NOTES:

Water rights: Title 90 RCW.


Page 36

RCW 54.16.060 Intertie lines. A district may build andmaintain intertie lines connecting its power plant anddistribution system with the power plant and distribution systemowned by any other public utility district, or municipalcorporation, or connect with the power plants and distributionsystems owned by any municipal corporation in the district, andfrom any such intertie line, sell electric energy to any person,public utility district, city, town or other corporation, publicor private, and, by means of transmission or pole lines, conductelectric energy from the place of production to the point ofdistribution, and construct and lay aqueducts, pipe or polelines, and transmission lines along and upon public highways,roads, and streets, and condemn and purchase, purchase oracquire, lands, franchises, and rights-of-way necessary therefor. [1955 c 390 § 7. Prior: 1945 c 143 § 1(e), part; 1931 c 1 §6(e), part; Rem. Supp. 1945 § 11610(e), part.]

RCW 54.16.070 District may borrow money, contractindebtedness, issue bonds or obligations--Guaranty fund. (1) Adistrict may contract indebtedness or borrow money for anycorporate purpose on its credit or on the revenues of its publicutilities, and to evidence such indebtedness may issue generalobligation bonds or revenue obligations; may issue and sell localutility district bonds of districts created by the commission,and may purchase with surplus funds such local utility districtbonds, and may create a guaranty fund to insure prompt payment ofall local utility district bonds. The general obligation bondsshall be issued and sold in accordance with chapter 39.46 RCW. Adistrict is authorized to establish lines of credit or make otherprearranged agreements, or both, to borrow money with anyfinancial institution.

(2) Notwithstanding subsection (1) of this section, suchrevenue obligations and local utility district bonds may beissued and sold in accordance with chapter 39.46 RCW. [1991 c 74§ 1; 1984 c 186 § 44; 1983 c 167 § 144; 1959 c 218 § 1; 1955 c390 § 8. Prior: 1945 c 143 § 1(f); 1931 c 1 § 6(f); Rem. Supp.1945 § 11610(f).]

NOTES:

Purpose--1984 c 186: See note following RCW 39.46.110.

Liberal construction--Severability--1983 c 167: See RCW39.46.010 and note following.

RCW 54.16.080 Levy and collection of taxes--Taxanticipation warrants. A district may raise revenue by the levyof an annual tax on all taxable property within the district, notexceeding forty-five cents per thousand dollars of assessed valuein any one year, exclusive of interest and redemption for generalobligation bonds. The commission shall prepare a proposed budgetof the contemplated financial transactions for the ensuing yearand file it in its records, on or before the first Monday in


Page 37

September. Notice of the filing of the proposed budget and thedate and place of hearing thereon shall be published for at leasttwo consecutive weeks in a newspaper printed and of generalcirculation in the county. On the first Monday in October, thecommission shall hold a public hearing on the proposed budget atwhich any taxpayer may appear and be heard against the whole orany part thereof. Upon the conclusion of the hearing, thecommission shall, by resolution, adopt the budget as finallydetermined, and fix the final amount of expenditures for theensuing year. Taxes levied by the commission shall be certifiedto and collected by the proper officer of the county in which thedistrict is located in the same manner as provided for thecertification and collection of port district taxes. Thecommission may, prior to the receipt of taxes raised by levy,borrow money or issue warrants of the district in anticipation ofthe revenue to be derived from the levy or taxes for districtpurposes, and the warrants shall be redeemed from the first moneyavailable from such taxes. The warrants shall not exceed theanticipated revenue of one year, and shall bear interest at arate determined by the commission. [1981 c 156 § 18; 1973 1stex.s. c 195 § 60; 1955 c 390 § 9. Prior: 1945 c 143 § 1(g);1931 c 1 § 6(g); Rem. Supp. 1945 § 11610(g).]

NOTES:

Severability--Effective dates and terminationdates--Construction--1973 1st ex.s. c 195: See notes followingRCW 84.52.043.

Application of one percentum levy limitation to public utilitydistrict: State Constitution Art. 7 § 2 and RCW 84.52.050.

Collection of taxes by port districts: RCW 53.36.020.

RCW 54.16.083 Community revitalization financing--Publicimprovements. In addition to other authority that a publicutility district possesses, a public utility district may provideany public improvement as defined under RCW 39.89.020, but thisadditional authority is limited to participating in the financingof the public improvements as provided under RCW 39.89.050.

This section does not limit the authority of a publicutility district to otherwise participate in the publicimprovements if that authority exists elsewhere. [2001 c 212 §19.]

NOTES:


RCW 54.16.085 Interfund loans. A public utility districtmay make and repay interfund loans between its funds. [1987 c 18§ 2.]


Page 38

RCW 54.16.090 Contracts with other agencies orutilities--Gifts, etc.--Employees and experts--Advancements. Adistrict may enter into any contract or agreement with the UnitedStates, or any state, municipality, or other utility district, orany department of those entities, or with any cooperative,mutual, consumer-owned utility, or with any investor-ownedutility or with an association of any of such utilities, forcarrying out any of the powers authorized by this title.

It may acquire by gift, devise, bequest, lease, or purchase,real and personal property necessary or convenient for itspurposes, or for any local district therein.

It may make contracts, employ engineers, attorneys, andother technical or professional assistance; print and publishinformation or literature; advertise or promote the sale anddistribution of electricity or water and do all other thingsnecessary to carry out the provisions of this title.

It may advance funds, jointly fund or jointly advance fundsfor surveys, plans, investigations, or studies as set forth inRCW 54.16.010, including costs of investigations, design andlicensing of properties and rights of the type described in RCW54.16.020, including the cost of technical and professionalassistance, and for the advertising and promotion of the sale anddistribution of electricity or water. [1969 c 106 § 7; 1955 c390 § 10. Prior: 1945 c 143 § 1(h), (i), (j), part; 1931 c 1 §6(h), (i), (j), part; Rem. Supp. 1945 § 11610(h), (i), (j),part.]

NOTES:


RCW 54.16.092 Employment interview expenses. When adistrict commission finds that a vacancy for a technical ormanagerial position requires special qualifications or entailsresponsibilities and duties of such a nature that substantialbenefits will accrue to the district from personal interviews ofcandidates for such a vacancy to be held in the district, thedistrict commission, by resolution adopted at a regular meeting,may authorize the payment of actual necessary travel and livingexpenses of such candidates incurred while in travel status. [1975 1st ex.s. c 140 § 1.]

NOTES:

Special purpose districts, expenditures to recruit jobcandidates: RCW 42.24.170.

RCW 54.16.095 Liability insurance for officials andemployees. The board of commissioners of each public utilitydistrict may purchase liability insurance with such limits asthey may deem reasonable for the purpose of protecting theirofficials and employees against liability for personal or bodily


Page 39

injuries and property damage arising from their acts or omissionswhile performing or in good faith purporting to perform theirofficial duties. [1973 c 125 § 5.]

RCW 54.16.096 Liability insurance for officers andemployees authorized. See RCW 36.16.138.

RCW 54.16.097 Actions against officer, employee, oragent--Defense and costs provided by public utilitydistrict--Exception. Whenever any action, claim or proceeding isinstituted against any person who is or was an officer, employee,or agent of a public utility district established under thistitle arising out of the performance or failure of performance ofduties for, or employment with any such district, the commissionof the district may grant a request by such person that theattorney of the district's choosing be authorized to defend saidclaim, suit or proceeding, and the costs of defense, attorney'sfees, and any obligation for payment arising from such action maybe paid from the district's funds: PROVIDED, That costs ofdefense and/or judgment or settlement against such person shallnot be paid in any case where the court has found that suchperson was not acting in good faith or within the scope of hisemployment with or duties for the district. [1975 c 60 § 2.]

RCW 54.16.100 Manager--Appointment--Compensation--Duties. The commission, by resolution introduced at a regular meeting andadopted at a subsequent regular meeting, shall appoint and mayremove at will a district manager, and shall, by resolution, fixhis or her compensation.

The manager shall be the chief administrative officer of thedistrict, in control of all administrative functions and shall beresponsible to the commission for the efficient administration ofthe affairs of the district placed in his or her charge. Themanager shall be an experienced executive with administrativeability. In the absence or temporary disability of the manager,the manager shall, with the approval of the president of thecommission, designate some competent person as acting manager.

The manager may attend all meetings of the commission andits committees, and take part in the discussion of any matterspertaining to the duties of his or her department, but shall haveno vote.

The manager shall carry out the orders of the commission,and see that the laws pertaining to matters within the functionsof his or her department are enforced; keep the commission fullyadvised as to the financial condition and needs of the districts;prepare an annual estimate for the ensuing fiscal year of theprobable expenses of the department, and recommend to thecommission what development work should be undertaken, and whatextensions and additions, if any, should be made during theensuing fiscal year, with an estimate of the costs of thedevelopment work, extensions, and additions; certify to thecommission all bills, allowances, and payrolls, including claims


Page 40

due contractors of public works; recommend to the commissioncompensation of the employees of his or her office, and a scaleof compensation to be paid for the different classes of servicerequired by the district; hire and discharge employees under hisor her direction; and perform such other duties as may be imposedupon the manager by resolution of the commission. It is unlawfulfor the manager to make any contribution of money in aid of or inopposition to the election of any candidate for public utilitycommissioner or to advocate or oppose any such election. [1990 c16 § 1; 1955 c 390 § 11. Prior: 1945 c 143 § 1(j), part; 1931 c1 § 6(j), part; Rem. Supp. 1945 § 11610(j), part.]

RCW 54.16.110 May sue and be sued--Claims. A district maysue in any court of competent jurisdiction, and may be sued inthe county in which its principal office is located or in whichit owns or operates facilities. No suit for damages shall bemaintained against a district except on a claim filed with thedistrict complying in all respects with the terms andrequirements for claims for damages set forth in chapter 4.96RCW. [1993 c 449 § 11; 1979 ex.s. c 240 § 3; 1955 c 390 § 12. Prior: 1945 c 143 § 1(k); 1931 c 1 § 6(k); Rem. Supp. 1945 §11610(k).]

NOTES:


Claims against cities of the second class: RCW 35.31.040.

RCW 54.16.120 Local utility districts authorized. Adistrict may, by resolution, establish and define the boundariesof local assessment districts to be known as local utilitydistrict No. . . . ., for distribution, under the generalsupervision and control of the commission, of water for allpurposes, public and private, including domestic use, irrigation,and electric energy, and for providing street lighting, or any ofthem, and in like manner provide for the purchasing, or otherwiseacquiring, or constructing and equipping and maintaining andoperating distribution systems for such purposes, and forextensions and betterments thereof, and may levy and collect inaccordance with the special benefits conferred thereon, specialassessments and reassessments on property specially benefitedthereby, for paying the cost and expense thereof, or any portionsthereof, as herein provided, and issue local improvement bonds orwarrants or both to be repaid wholly or in part by collection oflocal improvement assessments. A district also may form localutility districts located entirely or in part outside its limitsor the limits of the county in which the district is located toprovide water, or sewer facilities if otherwise authorized underthis title. [1999 c 154 § 2; 1975 c 46 § 1; 1955 c 390 § 13. Prior: 1951 c 209 § 1; 1945 c 143 § 1(l), part; 1931 c 1 § 6(l),part; Rem. Supp. 1945 § 11610(l), part.]


Page 41

NOTES:

Assessments and charges against state lands: Chapter 79.44 RCW.

Local improvements, supplemental authority: Chapter 35.51 RCW.

RCW 54.16.125 Exemption of farm and agricultural land fromspecial benefit assessments. See RCW 84.33.210 through84.33.270, 84.34.300 through 84.34.380, and 84.34.922.

RCW 54.16.130 Local districts--Procedure--Financing. Thecommission shall by resolution establish the method of procedurein all matters relating to local utility districts. A publicutility district may determine by resolution what work shall bedone or improvements made at the expense, in whole or in part, ofthe property specially benefited thereby; and adopt and providethe manner, machinery and proceedings in any way relating to themaking and collecting of assessments therefor in pursuancethereof. Except as herein otherwise provided or as may hereafterbe set forth by resolution, all matters and proceedings relatingto the local utility district, the levying and collection ofassessments, the issuance and redemption of local improvementwarrants and bonds, and the enforcement of local assessment lienshereunder, shall be governed, as nearly as may be, by the lawsrelating to local improvements for cities and towns: PROVIDED,That no protest against a local utility district improvementshall be received after twelve o'clock noon of the day set forhearing. Such bonds and warrants may be in any form, includingbearer bonds or bearer warrants, or registered warrants orregistered bonds as provided in RCW 39.46.030. Such bonds andwarrants may also be issued and sold in accordance with chapter39.46 RCW.

The commission may determine to finance the project by bondsor warrants secured by assessments against the property withinthe local utility district: Or it may finance the project byrevenue bonds, in which case no bonds or warrants shall be issuedby the local utility district, but assessments shall be leviedupon the taxable property therein on the basis of specialbenefits up to, but not exceeding the total cost of theimprovement and in such cases the entire principal and interestof such assessments shall be paid into a revenue bond fund of thedistrict, to be used for the sole purpose of the payment ofrevenue bonds. [1983 c 167 § 145; 1955 c 390 § 14. Prior: 1951c 209 § 2; 1945 c 143 § 1(l), part; 1931 c 1 § 6(l), part; Rem.Supp. 1945 § 11610(l), part.]

NOTES:


Local improvement


Page 42

first-class cities: Chapters 35.43 through 35.56 RCW. guaranty fund: RCW 54.24.200 through 54.24.260.

RCW 54.16.140 Petition or resolution for localdistrict--Hearing--Notice. Any such improvement shall be orderedby resolution of the commission either upon petition orresolution therefor. When a petition, signed by ten percent ofthe owners of land in the district to be therein described, isfiled with the commission, asking that the plan or improvementtherein set forth be adopted and ordered, and defining theboundaries of a local improvement district to be assessed inwhole or in part to pay the cost thereof, the commission shallfix the date of hearing thereon, and give not less than two weeksnotice thereof by publication. The commission may deny thepetition or order the improvement, unless a majority of theowners of lands in the district file prior to twelve o'clock noonof the day of the hearing, with the secretary a petitionprotesting against the improvement. If the commission orders theimprovement, it may alter the boundaries of the proposed localdistrict and prepare and adopt detail plans of the localimprovement, declare the estimated cost thereof, what proportionthereof shall be borne by the local improvement district, andwhat proportion, if any shall be borne by the entire publicutility district. [1955 c 390 § 15. Prior: 1945 c 143 § 1(l),part; 1931 c 1 § 6(l), part; Rem. Supp. 1945 § 11610(l), part.]

RCW 54.16.142 Local utility districts--Notice must containstatement that assessments may vary from estimates. Any noticegiven to the public or to the owners of specific lots, tracts, orparcels of land relating to the formation of a local utilitydistrict shall contain a statement that actual assessments mayvary from assessment estimates so long as they do not exceed afigure equal to the increased true and fair value theimprovement, or street lighting, adds to the property. [1989 c243 § 9.]

RCW 54.16.145 Local utility districts--Sanitary sewer orpotable water facilities--Notice to certain property owners. Whenever it is proposed that a local utility district financesanitary sewers or potable water facilities, additional notice ofthe public hearing on the proposed local utility district shallbe mailed to the owners of any property located outside of theproposed local utility district that would be required as acondition of federal housing administration loan qualification,at the time of notice, to be connected to the specific sewer orwater facilities installed by the local utility district. Thenotice shall include information about this restriction. [1987 c315 § 4.]

RCW 54.16.150 Procedure when petition is signed by majorityof landowners. When a petition signed by a majority of the


Page 43

landowners in a proposed local improvement district is filed withthe commission, asking that the improvement therein described beordered, the commission shall forthwith fix a date for hearingthereon after which it shall, by resolution, order theimprovement, and may alter the boundaries of the proposeddistrict; prepare and adopt the improvement; prepare and adoptdetail plans thereof; declare the estimated cost thereof, whatproportion of the cost shall be borne by the local district, andwhat proportion, if any, shall be borne by the entire publicutility district, and provide the general funds thereof to beapplied thereto, if any; acquire all lands and other propertiestherefor; pay all damages caused thereby; and commence in thename of the public utility district such eminent domainproceedings and supplemental assessment or reassessmentproceedings to pay all eminent domain awards necessary to entitlethe district to proceed with the work, and shall thereafterproceed with the work, and shall file with the county treasurerits roll levying special assessments in the amount to be paid byspecial assessment against the property in the local improvementdistrict in proportion to the special benefits to be derived bythe property in the local district from the improvement: PROVIDED, HOWEVER, No such improvement shall be ordered unlessthe same appears to the commission to be financially andeconomically feasible: AND PROVIDED FURTHER, That the commissionmay require as a condition to ordering such improvement or tomaking its determination as to the financial and economicfeasibility, that all or a portion of such engineering, legal orother costs incurred or to be incurred by the commission indetermining financial and economic feasibility shall be borne orguaranteed by the petitioners of the proposed local improvementdistrict under such rules as the commission may adopt. No personshall withdraw his name from the petition after the same has beenfiled with the commission. [1959 c 142 § 3; 1955 c 390 § 16. Prior: 1945 c 143 § 1(l), part; 1931 c 1 § 6(l), part; Rem.Supp. 1945 § 11610(l), part.]

RCW 54.16.160 Assessment roll--Hearing--Appellatereview--Expenses. Before approval of the roll, a notice shall bepublished once each week for two successive weeks in a newspaperof general circulation in the county, stating that the roll is onfile and open to inspection in the office of the secretary, andfixing a time not less than fifteen nor more than thirty daysfrom the date of the first publication of the notice, withinwhich protests must be filed with the secretary against anyassessments shown thereon, and fixing a time when a hearing shallbe held by the commission on the protests. After the hearing thecommission may alter any and all assessments shown on the rolland may, by resolution, approve it, but if an assessment israised, a new notice, similar to the first, shall be given, and ahearing had thereon, after which final approval of the roll maybe made. Any person aggrieved by the assessments shall perfectan appeal to the superior court of the county within ten daysafter the approval, in the manner provided for appeals fromassessments levied by cities of the first class. In the event


Page 44

such an appeal shall be taken, the judgment of the court shallconfirm the assessment insofar as it affects the property of theappellant unless the court shall find from the evidence that suchassessment is founded upon a fundamentally wrong basis and/or thedecision of the commission thereon was arbitrary or capricious;in which event the judgment of the court shall correct, change,modify, or annul the assessment insofar as it affects theproperty of the appellant. In the same manner as provided withreference to cities of the first class appellate review of thejudgment of the superior court may be sought, as in other cases,within fifteen days after the date of the entry of the judgmentin the superior court. Engineering, office, and other expensesnecessary or incident to the improvement shall be borne by thepublic utility district: PROVIDED, That when a municipalcorporation included in the public utility district already ownsor operates a utility of a character like that for which theassessments are levied hereunder, all such engineering and otherexpenses shall be borne by the local assessment district. [1988c 202 § 51; 1971 c 81 § 123; 1959 c 142 § 4; 1955 c 390 § 17. Prior: 1945 c 143 § 1(l), part; 1931 c 1 § 6(l), part; Rem.Supp. 1945 c 11610(l), part.]

NOTES:

Severability--1988 c 202: See note following RCW 2.24.050.

Procedure on appeal from assessments levied by cities of thefirst class: RCW 35.44.200 through 35.44.270.

RCW 54.16.165 Segregation of assessments. Whenever anyland against which there has been levied any special assessmentby any public utility district shall have been sold in part orsubdivided, the board of commissioners of such public utilitydistrict shall have the power to order a segregation of theassessment.

Any person owning any part of the land involved in a specialassessment and desiring to have such special assessment againstthe tracts of land segregated to apply to smaller parts thereofshall apply in writing to the board of commissioners of thepublic utility district which levied the assessment. If thecommissioners determine that a segregation should be made theyshall do so as nearly as possible on the same basis as theoriginal assessment was levied and the total of the segregatedparts of the assessment shall equal the assessment beforesegregation.

The commission shall then send notice thereof by mail to theseveral owners interested in the tract, as shown on the generaltax rolls. If no protest is filed within twenty days from dateof mailing said notice, the commission shall then by resolutionapprove said segregation. If a protest is filed, the commissionshall have a hearing thereon, after mailing to the several ownersat least ten days notice of the time and place thereof. Afterthe hearing, the commission may by resolution approve saidsegregation, with or without change. Within ten days after the


Page 45

approval, any person aggrieved by the segregation may perfect anappeal to the superior court of the county wherein the propertyis situated and thereafter seek appellate review, all as providedfor appeals from assessments levied by cities of the first class. The resolution approving said segregation shall describe theoriginal tract, the amount and date of the original assessment,and shall define the boundaries of the divided parts and theamount of the assessment chargeable to each part, and shall orderthe county treasurer to make segregation on the originalassessment roll as directed in the resolution. A certified copyof the resolution shall be delivered to the county treasurer whoshall proceed to make the segregation ordered. The board ofcommissioners may require as a condition to the order ofsegregation that the person seeking it pay the public utilitydistrict the reasonable engineering and clerical costs incidentto making the segregation. Unless otherwise provided in saidresolution, the county treasurer shall apportion amounts paid onthe original assessment in the same proportion as the segregatedassessments bear to the original assessment. Upon segregationbeing made by the county treasurer, as aforesaid, the lien of thespecial assessment shall apply to the segregated parcels only tothe extent of the segregated part of such assessment. [1988 c202 § 52; 1971 c 81 § 124; 1959 c 142 § 1.]

NOTES:

Severability--1988 c 202: See note following RCW 2.24.050.

RCW 54.16.170 Apportionment of cost of improvement. Whenan improvement is ordered hereunder, payment for which shall bemade in part from assessments against property speciallybenefited, not more than fifty percent of the cost thereof shallever be borne by the entire public utility district, nor shallany sum be contributed by it to any improvement acquired orconstructed with or by any other body, exceed such amount, unlessa majority of the electors of the district consent to or ratifythe making of such expenditure. [1955 c 390 § 18. Prior: 1945c 143 § 1(l), part; 1931 c 1 § 6(l), part; Rem. Supp. 1945 §11610(l), part.]

RCW 54.16.180 Sale, lease, disposition of properties,equipment, and materials--Procedure--Acquisition, operation ofsewage system by districts in certain counties. (1) A districtmay sell and convey, lease, or otherwise dispose of all or anypart of its works, plants, systems, utilities and properties,after proceedings and approval by the voters of the district, asprovided for the lease or disposition of like properties andfacilities owned by cities and towns. The affirmative vote ofthree-fifths of the voters voting at an election on the questionof approval of a proposed sale, shall be necessary to authorizesuch a sale.


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(2) A district may, without the approval of the voters,sell, convey, lease, or otherwise dispose of all or any part ofthe property owned by it that is located:

(a) Outside its boundaries, to another public utilitydistrict, city, town or other municipal corporation; or

(b) Within or without its boundaries, which has becomeunserviceable, inadequate, obsolete, worn out or unfit to be usedin the operations of the system and which is no longer necessary,material to, and useful in such operations, to any person orpublic body.

(3) A district may sell, convey, lease or otherwise disposeof items of equipment or materials to any other district, to anycooperative, mutual, consumer-owned or investor-owned utility, toany federal, state, or local government agency, to any contractoremployed by the district or any other district, utility, oragency, or any customer of the district or of any other districtor utility, from the district's stores without voter approval orresolution of the district's board, if such items of equipment ormaterials cannot practicably be obtained on a timely basis fromany other source, and the amount received by the district inconsideration for any such sale, conveyance, lease, or otherdisposal of such items of equipment or materials is not less thanthe district's cost to purchase such items or the reasonablemarket value of equipment or materials.

(4) A district located within a county with a population offrom one hundred twenty-five thousand to less than two hundredten thousand may sell and convey to a city of the first class,which owns its own water system, all or any part of a watersystem owned by the district where a portion of it is locatedwithin the boundaries of the city, without approval of thevoters, upon such terms and conditions as the district shalldetermine.

(5) A district located in a county with a population of fromtwelve thousand to less than eighteen thousand and bordered bythe Columbia river may, separately or in connection with theoperation of a water system, or as part of a plan for acquiringor constructing and operating a water system, or in connectionwith the creation of another or subsidiary local utilitydistrict, provide for the acquisition or construction, additionsor improvements to, or extensions of, and operation of, a sewagesystem within the same service area as in the judgment of thedistrict commission is necessary or advisable to eliminate oravoid any existing or potential danger to public health due tolack of sewerage facilities or inadequacy of existing facilities.

(6) A district located within a county with a population offrom one hundred twenty-five thousand to less than two hundredten thousand bordering on Puget Sound may sell and convey to anycity or town with a population of less than ten thousand all orany part of a water system owned by the district without approvalof the voters upon such terms and conditions as the districtshall determine.

(7) A district may sell and convey, lease, or otherwisedispose of, to any person or entity without approval of thevoters and upon such terms and conditions as it determines, allor any part of an electric generating project owned directly or


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indirectly by the district, regardless of whether the project iscompleted, operable, or operating, as long as:

(a) The project is or would be powered by an eligiblerenewable resource as defined in RCW 19.285.030; and

(b) The district, or the separate legal entity in which thedistrict has an interest in the case of indirect ownership, has:

(i) The right to lease the project or to purchase all or anypart of the energy from the project during the period in which itdoes not have a direct or indirect ownership interest in theproject; and

(ii) An option to repurchase the project or part thereofsold, conveyed, leased, or otherwise disposed of at or below fairmarket value upon termination of the lease of the project ortermination of the right to purchase energy from the project.

(8) Districts are municipal corporations for the purposes ofthis section. A commission shall be held to be the legislativebody, a president and secretary shall have the same powers andperform the same duties as a mayor and city clerk, and thedistrict resolutions shall be held to be ordinances within themeaning of statutes governing the sale, lease, or other disposalof public utilities owned by cities and towns. [2008 c 198 § 5;1999 c 69 § 1; 1994 c 81 § 78; 1991 c 363 § 135; 1977 ex.s. c 31§ 1; 1963 c 196 § 1; 1959 c 275 § 1; 1955 c 390 § 19. Prior: 1945 c 143 § 1(m); 1931 c 1 § 6(m); Rem. Supp. 1945 § 11610(m).]

NOTES:

Finding--2008 c 198: See note following RCW 39.34.030.

Purpose--Captions not law--1991 c 363: See notes followingRCW 2.32.180.

RCW 54.16.190 General resolutions. The commission of adistrict may adopt general resolutions to carry out the purposes,objects, and provisions of this title. [1955 c 390 § 20. Prior: 1945 c 143 § 1(n); 1931 c 1 § 6(n); Rem. Supp. 1945 § 11610(n).]

RCW 54.16.200 Joint exercise of powers and jointacquisition of properties. Any two or more public utilitydistricts organized under the provisions of the laws of thisstate shall have the power, by mutual agreement, to exercisejointly all powers granted to each individual district, and inthe exercise of such powers shall have the right and power toacquire jointly all or any part of any electric utilityproperties which, at .*the time of the passage of this act,constitutes an interconnected and physically integrated electricutility system, whether entirely within or partly within andpartly without such districts: PROVIDED, That any two or moredistricts so acting jointly, by mutual agreement, shall notacquire any electric utility distribution properties in any otherpublic utility district without the consent of such district, andshall not exercise jointly the power to condemn any privatelyowned utility property or any public utility owned by a


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municipality, to levy taxes or, to create subdistricts. [1949 c227 § 2; Rem. Supp. 1949 § 10459-15.]

NOTES:

.*Reviser's note: As to "the time of the passage of thisact," the legislative history of chapter 227, Laws of 1949 is asfollows: Passed the house March 8, 1949; passed the senate March7, 1949; approved by the governor March 22, 1949.

Joint operating agency: RCW 43.52.360.

RCW 54.16.210 Joint acquisition, operation, etc., with cityof electrical utility properties. See chapter 35.92 RCW.

RCW 54.16.220 Columbia river hydroelectric projects--Grantback of easements to former owners. Notwithstanding any otherprovision of law, every public utility district acquiringprivately owned lands, real estate or property for reservoirpurposes of a hydroelectric power project dam on the Columbiariver, upon acquisition of title to said lands, whether acquiredby purchase or condemnation, shall grant back to the formerowners of the lands acquired upon their request therefor, whetherprior to conveyance of title to the district or within sixty daysthereafter, a perpetual easement appurtenant to the adjoiningproperty for such occupancy and use and improvement of theacquired lands as will not be detrimental to the operation of thehydroelectric project and not be in violation of the requiredconditions of the district's federal power commission license forthe project: PROVIDED, That said former owners shall notthereafter erect any structure or make any extensive physicalchange thereon except under a permit issued by the public utilitydistrict: PROVIDED FURTHER, That said easement shall include aprovision that any shorelands thereunder shall be open to thepublic, and shall be subject to cancellation upon sixty daysnotice to the owners by the district that such lands are to beconveyed to another public agency for game or game fish purposesor public recreational use, in which event the owners shallremove any structures they may have erected thereon within areasonable time without cost to the district. The provisions ofthis section shall not be applicable with respect to: (1) landsacquired from an owner who does not desire an easement for suchoccupancy and use; (2) lands acquired from an owner where theentire estate has been acquired; (3) lands acquired for, andreasonably necessary for, project structures (including borrowareas) or for relocation of roads, highways, railroads, otherutilities or railroad industrial sites; and (4) lands heretoforeacquired or disposed of by sale or lease by a public utilitydistrict for whatsoever purpose. [1965 ex.s. c 118 § 1.]

RCW 54.16.230 Sewage system works--Acquire, construct,operate, etc.--Authorizing election--Procedure. A public utility


Page 49

district may acquire, construct, operate, maintain, and add tosewage systems, subject to and in compliance with the countycomprehensive plan, under the general powers of Title 54 RCW orthrough the formation of local utility districts as provided inRCW 54.16.120 through 54.16.170: PROVIDED, That prior toengaging in any sewage system works as authorized by thissection, the voters of the public utility district shall firstapprove by majority vote a referendum proposition authorizingsuch district to exercise the powers set forth in this section,which proposition shall be presented at a general election. [1975 1st ex.s. c 57 § 1.]

RCW 54.16.240 Sewage system works--Resolution orpetition--Voter approval or rejection. The commission of apublic utility district, by resolution may, or on petition in thesame manner as provided for the creation of a district under RCW54.08.010 shall, submit to the voters for their approval orrejection the proposal that said public utility district beauthorized to exercise the powers set forth in RCW 54.16.230. [1975 1st ex.s. c 57 § 2.]

RCW 54.16.250 Sewage system works--Ballotproposition--Canvass. The legislative authority of the county inwhich the public utility district is located, upon receipt of theresolution of the public utility district commission or petitionas provided for in RCW 54.08.010, shall submit such proposal tothe voters of the district at the next general election insubstantially the following terms:

Shall Public Utility District No. . . . . of . . . . . .County be authorized to acquire, construct, operate, maintain,and add to sewage systems?

Yes GNo G

Within ten days after such election, the election board ofthe county shall canvass the returns, and if at such election amajority of voters voting on the proposition shall vote in favorof such authority, the district shall have the powers set forthin RCW 54.16.230. [1975 1st ex.s. c 57 § 3.]

RCW 54.16.260 Sewage system works--Accounts and funding. Accounts and funding for any sewage system or systems shall bekept as provided in RCW 43.09.210. [1975 1st ex.s. c 57 § 4.]

RCW 54.16.270 Sewage system works--Existing authority notaffected. Nothing contained in RCW 54.16.230 through 54.16.260shall change or alter the present authority of certain publicutility districts as regards sewage systems and as provided inRCW 54.16.180. [1975 1st ex.s. c 57 § 5.]


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RCW 54.16.280 Energy conservation plan--Financingauthorized for energy conservation projects in structures orequipment--Limitations. Any district is hereby authorized,within limits established by the Constitution of the state ofWashington, to assist the owners of structures or equipment infinancing the acquisition and installation of materials andequipment, for compensation or otherwise, for the conservation ormore efficient use of energy in such structures or equipmentpursuant to an energy conservation plan adopted by the districtif the cost per unit of energy saved or produced by the use ofsuch materials and equipment is less than the cost per unit ofenergy produced by the next least costly new energy resourcewhich the district could acquire to meet future demand. Anyfinancing authorized under this chapter shall only be used forconservation purposes in existing structures, and such financingshall not be used for any purpose which results in a conversionfrom one energy source to another. For the purposes of thissection, "conservation purposes in existing structures" mayinclude projects to allow a district's customers to generate allor a portion of their own electricity through the on-siteinstallation of a distributed electricity generation system thatuses as its fuel solar, wind, geothermal, or hydropower, or otherrenewable resource that is available on-site and not from acommercial source. Such projects shall not be considered "aconversion from one energy source to another" which is limited tothe change or substitution of one commercial energy supplier foranother commercial energy supplier. Except where otherwiseauthorized, such assistance shall be limited to:

(1) Providing an inspection of the structure or equipment,either directly or through one or more inspectors under contract,to determine and inform the owner of the estimated cost ofpurchasing and installing conservation materials and equipmentfor which financial assistance will be approved and the estimatedlife cycle savings in energy costs that are likely to result fromthe installation of such materials or equipment;

(2) Providing a list of businesses who sell and install suchmaterials and equipment within or in close proximity to theservice area of the district, each of which businesses shall haverequested to be included and shall have the ability to providethe products in a workmanlike manner and to utilize suchmaterials in accordance with the prevailing national standards.

(3) Arranging to have approved conservation materials andequipment installed by a private contractor whose bid isacceptable to the owner of the residential structure andverifying such installation; and

(4) Arranging or providing financing for the purchase andinstallation of approved conservation materials and equipment. Such materials and equipment shall be purchased from a privatebusiness and shall be installed by a private business or theowner.

(5) Pay back shall be in the form of incremental additionsto the utility bill, billed either together with use charge orseparately. Loans shall not exceed one hundred twenty months inlength. [2002 c 276 § 3; 1989 c 268 § 2; 1979 ex.s. c 239 § 3.]


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NOTES:


Legislative declaration--Effective date--Contingency--1979ex.s. c 239: See RCW 35.92.355 and note following RCW 35.92.360.

RCW 54.16.285 Limitations on termination of utility servicefor residential heating. (1) A district providing utilityservice for residential space heating shall not terminate suchutility service between November 15 through March 15 if thecustomer:

(a) Notifies the utility of the inability to pay the bill,including a security deposit. This notice should be providedwithin five business days of receiving a payment overdue noticeunless there are extenuating circumstances. If the customerfails to notify the utility within five business days and serviceis terminated, the customer can, by paying reconnection charges,if any, and fulfilling the requirements of this section, receivethe protections of this chapter;

(b) Provides self-certification of household income for theprior twelve months to a grantee of the .*department ofcommunity, trade, and economic development which administersfederally funded energy assistance programs. The grantee shalldetermine that the household income does not exceed the maximumallowed for eligibility under the state's plan for low-incomeenergy assistance under 42 U.S.C. 8624 and shall provide a dollarfigure that is seven percent of household income. The granteemay verify information provided in the self-certification;

(c) Has applied for home heating assistance from applicablegovernment and private sector organizations and certifies thatany assistance received will be applied to the current bill andfuture utility bills;

(d) Has applied for low-income weatherization assistance tothe utility or other appropriate agency if such assistance isavailable for the dwelling;

(e) Agrees to a payment plan and agrees to maintain thepayment plan. The plan will be designed both to pay the past duebill by the following October 15 and to pay for continued utilityservice. If the past due bill is not paid by the followingOctober 15, the customer shall not be eligible for protectionsunder this chapter until the past due bill is paid. The planshall not require monthly payments in excess of seven percent ofthe customer's monthly income plus one-twelfth of any arrearageaccrued from the date application is made and thereafter duringNovember 15 through March 15. A customer may agree to pay ahigher percentage during this period, but shall not be in defaultunless payment during this period is less than seven percent ofmonthly income plus one-twelfth of any arrearage accrued from thedate application is made and thereafter. If assistance paymentsare received by the customer subsequent to implementation of theplan, the customer shall contact the utility to reformulate theplan; and


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(f) Agrees to pay the moneys owed even if he or she moves.(2) The utility shall:(a) Include in any notice that an account is delinquent and

that service may be subject to termination, a description of thecustomer's duties in this section;

(b) Assist the customer in fulfilling the requirements underthis section;

(c) Be authorized to transfer an account to a new residencewhen a customer who has established a plan under this sectionmoves from one residence to another within the same utilityservice area;

(d) Be permitted to disconnect service if the customer failsto honor the payment program. Utilities may continue todisconnect service for those practices authorized by law otherthan for nonpayment as provided for in this section. Customerswho qualify for payment plans under this section who default ontheir payment plans and are disconnected can be reconnected andmaintain the protections afforded under this chapter by payingreconnection charges, if any, and by paying all amounts thatwould have been due and owing under the terms of the applicablepayment plan, absent default, on the date on which service isreconnected; and

(e) Advise the customer in writing at the time itdisconnects service that it will restore service if the customercontacts the utility and fulfills the other requirements of thissection.

(3) All districts providing utility service for residentialspace heating shall offer residential customers the option of abudget billing or equal payment plan. The budget billing orequal payment plan shall be offered low-income customers eligibleunder the state's plan for low-income energy assistance preparedin accordance with 42 U.S.C. 8624(C)(1) without limitingavailability to certain months of the year, without regard to thelength of time the customer has occupied the premises, andwithout regard to whether the customer is the tenant or owner ofthe premises occupied.

(4) An agreement between the customer and the utility,whether oral or written, shall not waive the protections affordedunder this chapter. [1995 c 399 § 144; 1991 c 165 § 3; 1990 1stex.s. c 1 § 3; 1986 c 245 § 3; 1985 c 6 § 19; 1984 c 251 § 2.]

NOTES:

.*Reviser's note: The "department of community, trade, andeconomic development" was renamed the "department of commerce" by2009 c 565.


RCW 54.16.300 Combined utility functions. A public utilitydistrict by resolution may combine two or more of its separateutility functions into a single utility and combine its relatedfunds or accounts into a single fund or account. The separateutility functions include electrical energy systems, domestic


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water systems, irrigation systems, sanitary sewer systems, andstorm sewer systems. All powers granted to public utilitydistricts to acquire, construct, maintain, and operate suchsystems may be exercised in the joint acquisition, construction,maintenance, and operation of such combined systems. Theestablishment, maintenance, and operation of the combined systemshall be governed by the public utility district statutesrelating to one of the utility systems that is being combined, asspecified in the resolution combining the utility systems. [1987c 18 § 1.]

RCW 54.16.310 Operation, maintenance, and inspection ofsewage disposal facilities, septic tanks, and wastewater disposalfacilities and systems--Maintenance costs. A public utilitydistrict as authorized by a county board of health, may performoperation and maintenance, including inspections, of on-sitesewage disposal facilities, alternate sewage disposal facilities,approved septic tanks or approved septic tank systems, otherfacilities and systems for the collection, interception,treatment, and disposal of wastewater, and for the control andprotection, preservation, and rehabilitation of surface andunderground waters. Those costs associated with the maintenanceof private on-site sewage systems may be charged by the publicutility district to the system owner. [1990 c 107 § 1.]

RCW 54.16.320 Assumption of substandard watersystem--Limited immunity from liability. A public utilitydistrict assuming responsibility for a water system that is notin compliance with state or federal requirements for publicdrinking water systems, and its agents and employees, are immunefrom lawsuits or causes of action, based on noncompliance withstate or federal requirements for public drinking water systems,which predate the date of assuming responsibility and continueafter the date of assuming responsibility, provided that thepublic utility district has submitted and is complying with aplan and schedule of improvements approved by the department ofhealth. This immunity shall expire on the earlier of the datethe plan of improvements is completed or four years from the dateof assuming responsibility. This immunity does not apply tointentional injuries, fraud, or bad faith. [1994 c 292 § 10.]

NOTES:


RCW 54.16.330 Telecommunicationsfacilities--Purposes--Limitations--Provision of wholesaletelecommunications services--Eminent domain. (1) A publicutility district in existence on June 8, 2000, may construct,purchase, acquire, develop, finance, lease, license, handle,provide, add to, contract for, interconnect, alter, improve,


Page 54

repair, operate, and maintain any telecommunications facilitieswithin or without the district's limits for the followingpurposes:

(a) For the district's internal telecommunications needs;and

(b) For the provision of wholesale telecommunicationsservices within the district and by contract with another publicutility district.

Nothing in this subsection shall be construed to authorizepublic utility districts to provide telecommunications servicesto end users.

(2) A public utility district providing wholesaletelecommunications services shall ensure that rates, terms, andconditions for such services are not unduly or unreasonablydiscriminatory or preferential. Rates, terms, and conditions arediscriminatory or preferential when a public utility districtoffering rates, terms, and conditions to an entity for wholesaletelecommunications services does not offer substantially similarrates, terms, and conditions to all other entities seekingsubstantially similar services.

(3) A public utility district providing wholesaletelecommunications services shall not be required to but mayestablish a separate utility system or function for such purpose. In either case, a public utility district providing wholesaletelecommunications services shall separately account for anyrevenues and expenditures for those services according tostandards established by the state auditor pursuant to itsauthority in chapter 43.09 RCW and consistent with the provisionsof this title. Any revenues received from the provision ofwholesale telecommunications services must be dedicated to costsincurred to build and maintain any telecommunications facilitiesconstructed, installed, or acquired to provide such services,including payments on debt issued to finance such services, untilsuch time as any bonds or other financing instruments executedafter June 8, 2000, and used to finance such telecommunicationsfacilities are discharged or retired.

(4) When a public utility district provides wholesaletelecommunications services, all telecommunications servicesrendered to the district for the district's internaltelecommunications needs shall be allocated or charged at itstrue and full value. A public utility district may not chargeits nontelecommunications operations rates that are preferentialor discriminatory compared to those it charges entitiespurchasing wholesale telecommunications services.

(5) A public utility district shall not exercise powers ofeminent domain to acquire telecommunications facilities orcontractual rights held by any other person or entity totelecommunications facilities.

(6) Except as otherwise specifically provided, a publicutility district may exercise any of the powers granted to itunder this title and other applicable laws in carrying out thepowers authorized under this section. Nothing in chapter 81,Laws of 2000 limits any existing authority of a public utilitydistrict under this title. [2004 c 158 § 1; 2000 c 81 § 3.]

NOTES:Revised Code of Washington Title 54 - Public Utility Districts (2009)

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RCW 54.16.340 Wholesale telecommunicationsservices--Petition for review of rates, terms, conditions. (1) Aperson or entity that has requested wholesale telecommunicationsservices from a public utility district providing wholesaletelecommunications services under this chapter may petition thecommission under the procedures set forth in RCW 80.04.110 (1)through (3) if it believes the district's rates, terms, andconditions are unduly or unreasonably discriminatory orpreferential. The person or entity shall provide the publicutility district notice of its intent to petition the commissionand an opportunity to review within thirty days the rates, terms,and conditions as applied to it prior to submitting its petition. In determining whether a district is providing discriminatory orpreferential rates, terms, and conditions, the commission mayconsider such matters as service quality, cost of service,technical feasibility of connection points on the district'sfacilities, time of response to service requests, systemcapacity, and other matters reasonably related to the provisionof wholesale telecommunications services. If the commission,after notice and hearing, determines that a public utilitydistrict's rates, terms, and conditions are unduly orunreasonably discriminatory or preferential, it shall issue afinal order finding noncompliance with this section and settingforth the specific areas of apparent noncompliance. An orderimposed under this section shall be enforceable in any court ofcompetent jurisdiction.

(2) The commission may order a public utility district topay a share of the costs incurred by the commission in connectionwith adjudicating or enforcing the provisions of this section.

(3) Without limiting other remedies at law or equity, thecommission and prevailing party may also seek injunctive reliefto compel compliance with an order.

(4) Nothing in this section shall be construed to affect thecommission's authority and jurisdiction with respect to actions,proceedings, or orders permitted or contemplated for a statecommission under the federal telecommunications act of 1996, P.L.104-104 (110 Stat. 56). [2000 c 81 § 5.]

NOTES:


RCW 54.16.350 Tariff for irrigation pumpingservice--Authority to buy back electricity. The commission mayapprove a tariff for irrigation pumping service that allows thedistrict to buy back electricity from customers to reduceelectricity usage by those customers during the district'sparticular irrigation season. [2001 c 122 § 2.]

NOTES:


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Effective date--2001 c 122: See note following RCW80.28.310.

RCW 54.16.360 Cooperative watershed management. Inaddition to the authority provided in RCW 54.16.030 relating towater supply, a public utility district may participate in andexpend revenue on cooperative watershed management actions,including watershed management partnerships under RCW 39.34.210and other intergovernmental agreements, for purposes of watersupply, water quality, and water resource and habitat protectionand management. [2003 c 327 § 14.]

NOTES:

Finding--Intent--2003 c 327: See note following RCW39.34.190.

RCW 54.16.370 Purchase of electric power and energy fromjoint operating agency. A district may contract to purchase froma joint operating agency electric power and energy required forits present or future requirements. For projects the output ofwhich is limited to qualified alternative energy resources asdefined by RCW 19.29A.090(3), the contract may include thepurchase of capability of the projects to produce electricity inaddition to the actual output of the projects. The contract mayprovide that the district must make the payments required by thecontract whether or not a project is completed, operable, oroperating and notwithstanding the suspension, interruption,interference, reduction, or curtailment of the output of aproject or the power and energy contracted for. The contract mayalso provide that payments under the contract are not subject toreduction, whether by offset or otherwise, and shall not beconditioned upon the performance or nonperformance of the jointoperating agency or a city, town, or district under the contractor other instrument. [2003 c 138 § 2.]

RCW 54.16.380 Appliance repair service--Operation bydistrict. Any public utility district that has operated anelectrical appliance repair service for at least ten years priorto July 24, 2005, may continue to operate an electrical appliancerepair service within its service territory. [2005 c 175 § 2.]

NOTES:

Intent--2005 c 175: "It is the intent of the legislature toavoid unnecessary hardships on the citizens of a community byrecognizing the traditional appliance repair services that havebeen offered for many years by any public utility districtdescribed in section 2 of this act.

The legislature understands that some of these servicesimprove the energy efficiency of the appliance repaired, which


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helps citizens save money and energy as well as extending thelife of the appliance.

The legislature recognizes these historic services coexistwith the private sector without creating aggressive competitionbetween public and private enterprises.

It is the intent of the legislature to have these servicesbe financially self-supporting and not be subsidized by any othercustomer rate structures.

Public utility districts affected by this act are encouragedto continue to work collaboratively with the private sector inproviding these services." [2005 c 175 § 1.]

RCW 54.16.385 Appliance repair service--Requirements. Whena public utility district provides electrical appliance repairservices under RCW 54.16.380, the public utility district shall:

(1) Charge customers the true and fair cost for theservices;

(2) Keep records documenting the revenues and expendituresfor the services and make those records available to the public;and

(3) Develop measures or benchmarks to track and evaluate theperformance of the services. [2005 c 175 § 3.]

NOTES:

Intent--2005 c 175: See note following RCW 54.16.380.

RCW 54.16.390 Environmental mitigation activities. (1) Apublic utility district may develop and make publicly available aplan for the district to reduce its greenhouse gases emissions orachieve no-net emissions from all sources of greenhouse gasesthat the district owns, leases, uses, contracts for, or otherwisecontrols.

(2) A public utility district may, as part of its utilityoperation, mitigate the environmental impacts, such as greenhousegases emissions, of its operation and any power purchases. Mitigation may include, but is not limited to, those greenhousegases mitigation mechanisms recognized by independent, qualifiedorganizations with proven experience in emissions mitigationactivities. Mitigation mechanisms may include the purchase,trade, and banking of greenhouse gases offsets or credits. If astate greenhouse gases registry is established, a public utilitydistrict that has purchased, traded, or banked greenhouse gasesmitigation mechanisms under this section shall receive credit inthe registry. [2007 c 349 § 4.]

NOTES:

Finding--Intent--2007 c 349 § 4: "The legislature finds anddeclares that greenhouse gases offset contracts, credits, andother greenhouse gases mitigation efforts are a recognizedutility purpose that confers a direct benefit on the utility'sratepayers. The legislature declares that section 4 of this act


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is intended to reverse the result of Okeson v. City of Seattle(January 18, 2007), by expressly granting public utilitydistricts the statutory authority to engage in mitigationactivities to offset their utility's impact on the environment." [2007 c 349 § 3.]

RCW 54.16.400 Voluntary donations for purposes of urbanforestry. (1) Public utility districts may request voluntarydonations from their customers for the purposes of urbanforestry. The request may be in the form of a check-off on thebilling statement or other form of a request for a voluntarydonation.

(2) Voluntary donations collected by public utilitydistricts under this section may be used by the public utilitydistrict to:

(a) Support the development and implementation of evergreencommunity ordinances, as that term is defined in RCW 35.105.010,for cities, towns, or counties within their service areas; or

(b) Complete projects consistent with the model evergreencommunity management plans and ordinances developed under RCW35.105.050.

(3) Donations received under this section do not contributeto the gross income of a light and power business or gasdistribution business under chapter 82.16 RCW. [2008 c 299 §22.]

NOTES:

Short title--2008 c 299: See note following RCW 35.105.010.

CHAPTER 54.20 RCW

CONDEMNATION PROCEEDINGS

Sections

54.20.010 Statement of operations--Decree ofappropriation--Retirement ofproperties--Accounting--Limitation on newproceedings.

RCW 54.20.010 Statement of operations--Decree ofappropriation--Retirement of properties--Accounting--Limitationon new proceedings. In any condemnation proceeding heretofore orhereafter instituted or conducted by a public utility districtfor the acquisition of properties, the district may serve uponthe condemnee's attorneys of record and file with the court anotice of its intention to present a decree of appropriationtogether with a demand for a verified statement showing inreasonable detail the following information with respect to theoperation of the properties since the date of verdict, if thecase was tried by jury, or since the date of the judgment fixing


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compensation, if the case was tried by the court, namely: thecost of any improvements and betterments to the properties whichwere reasonably necessary and prudently made; the gross incomereceived from the properties, betterments and improvements; theactual reasonable expense, exclusive of depreciation, incurred inthe operation thereof. If the condemnee fails to serve and filethe statement within fifteen days after service of the demandtherefor, it may be compelled to do so by contempt proceedings,and the time during which such proceedings are pending shall notbe considered in computing the time within which the district mayexercise its right of appropriation. After the statement isfiled, the district may pay the amount of the verdict or judgmentplus (1) accrued interest thereon less the net income beforeallowance for depreciation, and (2) the cost of such improvementsand betterments, all as shown by the sworn statement, andconcurrently obtain its decree of appropriation. The condemneemay retire from use after the verdict or judgment such items ofthe properties as may be reasonably necessary in the ordinary andusual course of operation thereof, in which case it shall show inits statement the reasonable value of such items retired, and thedistrict may deduct such value from the sum otherwise payable byit. If the condemnee fails to file the statement within fifteendays after service of the demand therefor, the district at itsoption may pay the full amount of the judgment or verdict plusaccrued interest thereon and concurrently obtain a decree ofappropriation.

After payment has been made and the decree of appropriationentered as provided in this section, the district or thecondemnee shall be entitled to an accounting in the condemnationproceedings to determine the true amount of each item required tobe furnished in the above statement, and to payment of anybalance found due in such accounting.

Whenever any such condemnation proceedings have been, orhereafter may be abandoned, no new proceedings for theacquisition of the same or substantially similar properties shallbe instituted until the expiration of one year from the date ofsuch abandonment, but such proceedings may be instituted at anytime thereafter. [1945 c 130 § 3; Rem. Supp. 1945 § 10459-13. Formerly RCW 54.20.010 through 54.20.050.]

NOTES:


CHAPTER 54.24 RCW

FINANCES

Sections

GENERAL PROVISIONS

54.24.010 Treasurer--Bond--Duties--Funds--Depositaries.


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54.24.012 Destruction of canceled or paid revenue obligationsand interest coupons.

BONDS OR WARRANTS--1931 ACT

54.24.018 Acquisition of property--Adoption of plan--Bonds orwarrants--Special funds.

BONDS--REVENUE OBLIGATIONS--1941 ACT

54.24.020 General obligation bonds, revenue obligations forcost of utilities.

54.24.030 Revenue obligations--Special fund--Form, term,payment, etc.--Resolution of authority,contents--Contracts for future sale.

54.24.040 Considerations in creating special fund--Status ofclaims against fund--When lien attaches.

54.24.050 Covenants to secure owners of revenue obligations.54.24.060 Sale, delivery of revenue obligations.54.24.070 Prima facie validity of revenue obligations.54.24.080 Rates and charges--Waiver of connection charges for

low-income persons.54.24.090 Funding, refunding revenue obligations.54.24.100 Execution of revenue obligations--Signatures.54.24.110 Laws and resolutions as contract.54.24.120 Obligations as lawful securities and investments.

LOCAL IMPROVEMENT GUARANTY FUND

54.24.200 Local improvement guaranty fund.54.24.210 Local improvement guaranty fund--Duties of the

district.54.24.220 Local improvement guaranty fund--Warrants to meet

liabilities.54.24.230 Local improvement guaranty fund--Certificates of

delinquency--Contents, purchase, payment,issuance, sale.

54.24.240 Local improvement guaranty fund--Certificates ofdelinquency--Redemption, foreclosure.

54.24.250 Local improvement guaranty fund--Subrogation ofdistrict as trustee of fund, effect on fund,disposition of proceeds.

54.24.260 Local improvement guaranty fund--Rights and remediesof bond or warrant holder which shall be printedon bond or warrant--Disposition of balance offund.

GENERAL PROVISIONS

RCW 54.24.010 Treasurer--Bond--Duties--Funds--Depositaries. (1) The treasurer of the county in which a utility district islocated shall be ex officio treasurer of the district: PROVIDED,That the commission by resolution may designate some other personhaving experience in financial or fiscal matters as treasurer ofRevised Code of Washington Title 54 - Public Utility Districts (2009)

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the utility district. The commission may require a bond, with asurety company authorized to do business in the state ofWashington, in an amount and under the terms and conditions whichthe commission by resolution from time to time finds will protectthe district against loss. The premium on any such bond shall bepaid by the district.

(2) All district funds shall be paid to the treasurer andshall be disbursed by him or her only on warrants issued by anauditor appointed by the commission, upon orders or vouchersapproved by it. The treasurer shall establish a public utilitydistrict fund, into which shall be paid all district funds, andhe or she shall maintain such special funds as may be created bythe commission, into which he or she shall place all money as thecommission may, by resolution, direct.

(3) If the treasurer of the district is the treasurer of thecounty all district funds shall be deposited with the countydepositaries under the same restrictions, contracts, and securityas provided for county depositaries; if the treasurer of thedistrict is some other person, all funds shall be deposited insuch bank or banks authorized to do business in this state as thecommission by resolution shall designate, and with surety bond tothe district or securities in lieu thereof of the kind, no lessin amount, as provided in .*RCW 36.48.020 for deposit of countyfunds.

(4) Such surety bond or securities in lieu thereof shall befiled or deposited with the treasurer of the district, andapproved by resolution of the commission.

(5) All interest collected on district funds shall belong tothe district and be deposited to its credit in the properdistrict funds.

(6) A district may provide and require a reasonable bond ofany other person handling moneys or securities of the district: PROVIDED, That the district pays the premium thereon.

(7) If the treasurer of the district is some other personthan the treasurer of the county, the commission may adopt apolicy for the payment of claims or other obligations of theutility district, which are payable out of solvent funds, and mayelect to pay such obligations by check or warrant. However, ifthe applicable fund is not solvent at the time payment isordered, then no check may be issued and payment shall be bywarrant. When checks are to be used, the commission shalldesignate the qualified public depositary upon which the checksare to be drawn as well as the officers required or authorized tosign the checks. For the purposes of this chapter, "warrant"includes checks where authorized by this subsection. [2009 c 173§ 2; 1999 c 18 § 6; 1959 c 218 § 2; 1957 c 140 § 1; 1955 c 124 §7. Prior: (i) 1931 c 1 § 9; RRS § 11613. (ii) 1931 c 1 § 8,part; RRS § 11612, part.]

NOTES:

.*Reviser's note: RCW 36.48.020 was repealed by 1984 c 177§ 21.


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RCW 54.24.012 Destruction of canceled or paid revenueobligations and interest coupons. After any revenue obligationsor interest coupons have been canceled or paid they may bedestroyed as directed by the district, any provisions of chapter40.14 RCW notwithstanding: PROVIDED, That a certificate ofdestruction giving full descriptive reference to the documentsdestroyed shall be made by the person or persons authorized toperform such destruction and one copy of the certificate shall befiled with the treasurer of the district. [1959 c 218 § 15.]

BONDS OR WARRANTS--1931 ACT

RCW 54.24.018 Acquisition of property--Adoption ofplan--Bonds or warrants--Special funds. (1) Whenever thecommission shall deem it advisable that the public utilitydistrict purchase, purchase and condemn, acquire, or constructany such public utility, or make any additions or bettermentsthereto, or extensions thereof, the commission shall providetherefor by resolution, which shall specify and adopt the systemor plan proposed, and declare the estimated cost thereof, as nearas may be, and specify whether general or utility indebtedness isto be incurred, the amount of such indebtedness, the amount ofinterest and the time in which all general bonds (if any) shallbe paid, not to exceed thirty years. In the event the proposedgeneral indebtedness to be incurred will bring the nonvoterapproved indebtedness of the public utility district to an amountexceeding three-fourths of one percent of the value of thetaxable property of the public utility district, as the term"value of the taxable property" is defined in RCW 39.36.015, theproposition of incurring such indebtedness and the proposed planor system shall be submitted to the qualified electors of saidpublic utility district for their approval or rejection at thenext general election held in such public utility district. Elections shall be held as provided in RCW 39.36.050.

Whenever the commission (or a majority of the qualifiedvoters of such public utility district, voting at said election,when it is necessary to submit the same to said voters) shallhave adopted a system or plan for any such public utility, asaforesaid, and shall have authorized indebtedness therefor by athree-fifths vote of the qualified voters of such district,voting at said election, general or public utility bonds may beused as hereinafter provided. The principal and interest of suchgeneral bonds shall be paid from the revenue of such publicutility district after deducting costs of maintenance, operation,and expenses of the public utility district, and any deficit inthe payment of principal and interest of said general bonds shallbe paid by levying each year a tax upon the taxable propertywithin said district sufficient to pay said interest andprincipal of said bonds, which tax shall be due and collectibleas any other tax. Said bonds shall be issued and sold inaccordance with chapter 39.46 RCW.

(2) All bonds and warrants issued under the authority ofthis chapter shall be legal securities, which may be used by any


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bank or trust company for deposit with the state treasurer, orany county or city treasurer, as security for deposits, in lieuof a surety bond, under any law relating to deposits of publicmoneys.

(3) When the commission shall not desire to incur a generalindebtedness in the purchase, condemnation and purchase,acquisition, or construction of any such public utility, oraddition or betterment thereto, or extension thereof, it shallhave the power to create a special fund or funds for the solepurpose of defraying the cost of such public utility, or additionor betterment thereto, or extension thereof, into which specialfund or funds it may obligate and bind the district to set asideand pay a fixed proportion of the gross revenues of such publicutility, or any fixed amount out of, and not exceeding a fixedproportion of, such revenues, or a fixed amount without regard toany fixed proportion, and to issue and sell revenue bonds orwarrants bearing interest at such rate or rates, payablesemiannually, executed in such manner, and payable at such timesand places as the commission shall determine, but such bonds orwarrants and the interest thereon, shall be payable only out ofsuch special fund or funds. In creating any such special fund orfunds, the commission shall have due regard to the cost ofoperation and maintenance of the plant or system as constructedor added to, and to any proportion or part of the revenuespreviously pledged as a fund for the payment of bonds orwarrants, and shall not set aside into such special fund or fundsa greater amount or proportion of the revenues and proceeds than,in its judgment, will be available over and above such cost ofmaintenance and operation and the amount or proportion, if any,of the revenues so previously pledged. Any such bonds orwarrants, and interest thereon, issued against any such fund, asherein provided, shall be a valid claim of the owner thereof onlyas against the said special fund and its fixed proportion oramount of the revenue pledged to such fund, and shall notconstitute an indebtedness of such district within the meaning ofthe constitutional provisions and limitations. Each such bond orwarrant shall state on its face that it is payable from a specialfund, naming such fund and the resolution creating it. Saidbonds and warrants shall be sold in such manner as the commissionshall deem for the best interests of the district. Thecommission may provide in any contract for the construction andacquisition of a proposed improvement or utility that paymenttherefor shall be made only in such bonds or warrants at the parvalue thereof. In all other respects, the issuance of suchutility bonds or warrants and payment therefor shall be governedby the public utility laws for cities and towns. The revenue orutility bonds or warrants may be in any form, including bearerbonds or bearer warrants, or registered bonds or registeredwarrants as provided in RCW 39.46.030.

(4) Notwithstanding subsection (3) of this section, any ofsuch revenue bonds and revenue warrants may be issued and sold inaccordance with chapter 39.46 RCW. [1984 c 186 § 45; 1983 c 167§ 146; 1971 c 12 § 1. Prior: 1970 ex.s. c 56 § 77; 1970 ex.s. c42 § 33; 1969 ex.s. c 232 § 14; 1931 c 1 § 7; RRS § 11611. Formerly RCW 54.24.130 through 54.24.160.]


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NOTES:

Purpose--1984 c 186: See note following RCW 39.46.110.


Purpose--1970 ex.s. c 56: See note following RCW 39.52.020.

Validation--Saving--Severability--1969 ex.s. c 232: Seenotes following RCW 39.52.020.

Municipal utilities: Chapter 35.92 RCW.

BONDS--REVENUE OBLIGATIONS--1941 ACT

RCW 54.24.020 General obligation bonds, revenue obligationsfor cost of utilities. Whenever the commission of a publicutility district, organized pursuant to chapter 1 of the Laws of1931 (sections 11605 et seq. of Remington's Revised Statutes)shall deem it advisable that the district purchase, purchase andcondemn, acquire or construct any public utility, or make anyadditions or betterments thereto or extensions thereof, thecommission shall provide therefor by resolution, which shallspecify and adopt the system or plan proposed and declare theestimated cost thereof, as near as may be, including as part ofsuch cost funds necessary for working capital for the operationof such public utility by the district and for the payment of theexpenses incurred in the acquisition or construction thereof, andshall specify whether general obligation bonds or revenueobligations are to be issued to defray such cost and the amountof such general obligation bonds or revenue obligations.

The commissioners may provide in such resolution that anyadditional works, plants, or facilities subsequently acquired orconstructed by the district for the same uses, whether or notphysically connected therewith, shall be deemed additions orbetterments to or extensions of such public utility. [1959 c 218§ 3; 1941 c 182 § 1; Rem. Supp. 1941 § 11611-1.]

NOTES:

Severability--1941 c 182: "If any section or provision ofthis act shall be adjudged to be invalid such adjudication shallnot affect the validity of the act as a whole or any section,provision or part thereof not adjudged to be invalid." [1941 c182 § 12.]

Revenue obligations defined: RCW 54.04.010.

RCW 54.24.030 Revenue obligations--Special fund--Form,term, payment, etc.--Resolution of authority, contents--Contractsfor future sale. (1) Whenever the commission shall deem it


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advisable to issue revenue obligations for the purpose ofdefraying the cost or part of the cost of such public utility orany additions or betterments thereto or extensions thereof, itshall have power as a part of such plan and system to create aspecial fund or funds for the purpose of defraying the cost ofsuch public utility, or additions or betterments thereto orextensions thereof, into which special fund or funds it mayobligate and bind the district to set aside and pay a fixedproportion of the gross revenues of such public utility, and alladditions or betterments thereto or extensions thereof, or anyfixed amount out of, and not exceeding a fixed proportion of suchrevenues, or a fixed amount without regard to any fixedproportion, or an amount of such revenues equal to a fixedpercentage of the aggregate principal amount of revenueobligations at any time issued against the special fund or funds,and to issue and sell revenue obligations payable as to bothprincipal and interest only out of such fund or funds.

Such revenue obligations shall bear such date or dates,mature at such time or times, be in such denominations, be insuch form, either coupon or registered, as provided in RCW39.46.030, or both, carry such registration privileges, be madetransferable, exchangeable, and interchangeable, be payable insuch medium of payment, at such place or places, and be subjectto such terms of redemption as the commission shall by resolutiondetermine.

Any resolution or resolutions authorizing the issuance ofany revenue obligations maturing in not exceeding six years fromthe date thereof (hereinafter in this section referred to as"short term obligations") may contain, in addition to all otherprovisions authorized by this title, and as an alternate methodfor the payment thereof, provisions which shall be a part of thecontract with the holders of the short term obligations therebyauthorized as to:

(a) Refunding the short term obligations at or prior tomaturity and, if so provided, outstanding bonds by the issuanceof revenue bonds of the district either by the sale of bonds andapplication of the proceeds to the payment of the short termobligations and outstanding bonds or by the exchange of bonds forthe short term obligations;

(b) Satisfying, paying, or discharging the short termobligations at the election of the district by the tender ordelivery of revenue bonds of the district in exchange therefor: PROVIDED, That the aggregate principal amount of bonds shall notexceed by more than five percent the aggregate principal amountof the short term obligations, to satisfy, pay, or discharge saidshort term obligations for which the bonds are tendered ordelivered;

(c) Exchanging or converting the short term obligations atthe election of the owner thereof for or into the bonds of thedistrict: PROVIDED, That the aggregate principal amount of thebonds shall not exceed by more than five percent the aggregateprincipal amount of the short term obligations to be exchangedfor or converted into bonds;

(d) Pledging bonds of the district as collateral to securepayment of the short term obligations and providing for the termsand conditions of the pledge and the manner of enforcing theRevised Code of Washington Title 54 - Public Utility Districts (2009)

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pledge, which terms and conditions may provide for the deliveryof the bonds in satisfaction of the short term obligations: PROVIDED, That the aggregate principal amount of the bondspledged shall not exceed by more than five percent the aggregateprincipal amount of the short term obligations to secure saidshort term obligations for which they are pledged;

(e) Depositing bonds in escrow or in trust with a trustee orfiscal agent or otherwise providing for the issuance anddisposition of the bonds as security for carrying out any of theprovisions in any resolution adopted pursuant to this section andproviding for the powers and duties of the trustee, fiscal agent,or other depositary and the terms and conditions upon which thebonds are to be issued, held and disposed of;

(f) Any other matters of like or different character whichrelate to any provision or provisions of any resolution adoptedpursuant to this section.

A district shall have power to make contracts for the futuresale from time to time of revenue obligations by which thepurchasers shall be committed to purchase such revenueobligations from time to time on the terms and conditions statedin such contract; and a district shall have power to pay suchconsideration as it shall deem proper for such commitments.

(2) Notwithstanding subsection (1) of this section, suchrevenue obligations may be issued and sold in accordance withchapter 39.46 RCW. [1983 c 167 § 147; 1959 c 218 § 4; 1941 c 182§ 2; Rem. Supp. 1941 § 11611-2.]

NOTES:


Alternative authority to issue revenue bonds: RCW 39.46.150,39.46.160.

Funds for reserve purposes may be included in issue amount: RCW39.44.140.

RCW 54.24.040 Considerations in creating specialfund--Status of claims against fund--When lien attaches. Increating any special fund for the payment of revenue obligations,the commission shall have due regard to the cost of operation andmaintenance of the plant or system constructed or added to, andto any proportion or amount of the revenues previously pledged asa fund for the payment of revenue obligations, and shall not setaside into such special fund or funds a greater amount orproportion of the revenues and proceeds than in its judgment willbe available over and above such cost of maintenance andoperation and the amount or proportion, if any, of the revenuesso previously pledged. Any such revenue obligations and interestthereon issued against any such fund as herein provided shall bea valid claim of the owner thereof only as against such specialfund and the proportion or amount of the revenues pledged to suchfund, but shall constitute a prior charge over all other charges


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or claims whatsoever, including the charge or lien of any generalobligation bonds against such fund and the proportion or amountof the revenues pledged thereto. Such revenue obligations shallnot constitute an indebtedness of such district within themeaning of the constitutional provisions and limitations. Eachrevenue obligation shall state on its face that it is payablefrom a special fund, naming such fund and the resolution creatingit, or shall describe such alternate method for the paymentthereof as shall be provided by the resolution authorizing same.

It is the intention hereof that any pledge of the revenuesor other moneys or obligations made by a district shall be validand binding from the time that the pledge is made; that therevenues or other moneys or obligations so pledged and thereafterreceived by a district shall immediately be subject to the lienof such pledge without any physical delivery or further act, andthat the lien of any such pledge shall be valid and binding asagainst any parties having claims of any kind in tort, contract,or otherwise against a district irrespective of whether suchparties have notice thereof. Neither the resolution or otherinstrument by which a pledge is created need be recorded. [1983c 167 § 148; 1959 c 218 § 5; 1941 c 182 § 5; Rem. Supp. 1941 §11611-5.]

NOTES:


RCW 54.24.050 Covenants to secure owners of revenueobligations. Any resolution creating any such special fund orauthorizing the issue of revenue obligations payable therefrom,or by such alternate method of payment as may be providedtherein, shall specify the title of such revenue obligations asdetermined by the commission and may contain covenants by thedistrict to protect and safeguard the security and the rights ofthe owners thereof, including covenants as to, among otherthings:

(1) The purpose or purposes to which the proceeds of sale ofsuch obligations may be applied and the use and dispositionthereof;

(2) The use and disposition of the gross revenues of thepublic utility, and any additions or betterments thereto orextensions thereof, the cost of which is to be defrayed with suchproceeds, including the creation and maintenance of funds forworking capital to be used in the operation of the public utilityand for renewals and replacements to the public utility;

(3) The amount, if any, of additional revenue obligationspayable from such fund which may be issued and the terms andconditions on which such additional revenue obligations may beissued;

(4) The establishment and maintenance of adequate rates andcharges for electric energy, water, and other services,facilities, and commodities sold, furnished, or supplied by thepublic utility;


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(5) The operation, maintenance, management, accounting, andauditing of the public utility;

(6) The terms and prices upon which such revenue obligationsor any of them may be redeemed at the election of the district;

(7) Limitations upon the right to dispose of such publicutility or any part thereof without providing for the payment ofthe outstanding revenue obligations; and

(8) The appointment of trustees, depositaries, and payingagents to receive, hold, disburse, invest, and reinvest all orany part of the income, revenues, receipts, and profits derivedby the district from the operation, ownership, and management ofits public utility. [1983 c 167 § 149; 1959 c 218 § 6; 1945 c143 § 2; 1941 c 182 § 3; Rem. Supp. 1945 § 11611-3.]

NOTES:


RCW 54.24.060 Sale, delivery of revenue obligations. (1)Such utility revenue obligations shall be sold and delivered insuch manner, at such rate or rates of interest and for such priceor prices and at such time or times as the commission shall deemfor the best interests of the district. The commission may, ifit deem it to the best interest of the district, provide in anycontract for the construction or acquisition of the publicutility, or the additions or betterments thereto or extensionsthereof, that payment therefor shall be made only in such revenueobligations at the par value thereof.

(2) Notwithstanding subsection (1) of this section, suchobligations may be issued and sold in accordance with chapter39.46 RCW. [1983 c 167 § 150; 1970 ex.s. c 56 § 78; 1969 ex.s. c232 § 83; 1959 c 218 § 7; 1941 c 182 § 4; Rem. Supp. 1941 §11611-4.]

NOTES:


Effective date--Purpose--1970 ex.s. c 56: See notesfollowing RCW 39.44.030.


RCW 54.24.070 Prima facie validity of revenue obligations. The state auditor need not register, certify, nor sign revenueobligations after July 26, 1981. These obligations shall be heldin every action, suit, or proceeding in which their validity isor may be brought into question prima facie valid and bindingobligations of the districts in accordance with their terms,notwithstanding any defects or irregularities in the proceedings


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for the organization of the district and the election of thecommissioners thereof or for the authorization and issuance ofsuch revenue obligations or in the sale, execution, or deliverythereof. [1981 c 37 § 1; 1959 c 218 § 8; 1941 c 182 § 6; Rem.Supp. 1941 § 11611-6.]

RCW 54.24.080 Rates and charges--Waiver of connectioncharges for low-income persons. (1) The commission of eachdistrict which shall have revenue obligations outstanding shallhave the power and shall be required to establish, maintain, andcollect rates or charges for electric energy and water and otherservices, facilities, and commodities sold, furnished, orsupplied by the district. The rates and charges shall be fairand, except as authorized by RCW 74.38.070 and by subsections (2)and (3) of this section, nondiscriminatory, and shall be adequateto provide revenues sufficient for the payment of the principalof and interest on such revenue obligations for which the paymenthas not otherwise been provided and all payments which thedistrict is obligated to set aside in any special fund or fundscreated for such purpose, and for the proper operation andmaintenance of the public utility and all necessary repairs,replacements, and renewals thereof.

(2) The commission of a district may waive connectioncharges for properties purchased by low-income persons fromorganizations exempt from tax under section 501(c)(3) of thefederal internal revenue code as amended prior to the July 23,1995. Waivers of connection charges for the same class ofelectric or gas utility service must be uniformly applied to allqualified property. Nothing in this subsection (2) authorizesthe impairment of a contract.

(3) In establishing rates or charges for water service,commissioners may in their discretion consider the achievement ofwater conservation goals and the discouragement of wasteful wateruse practices. [1995 c 140 § 3; 1991 c 347 § 21; 1959 c 218 § 9;1941 c 182 § 7; Rem. Supp. 1941 § 11611-7.]

NOTES:

Purposes--1991 c 347: See note following RCW 90.42.005.


RCW 54.24.090 Funding, refunding revenue obligations. Whenever any district shall have outstanding any utility revenueobligations, the commission shall have power by resolution toprovide for the issuance of funding or refunding revenueobligations with which to take up and refund such outstandingrevenue obligations or any part thereof at the maturity thereofor before maturity if the same be by their terms or by otheragreement subject to call for prior redemption, with the right inthe commission to include various series and issues of suchoutstanding revenue obligations in a single issue of funding orrefunding revenue obligations, and to issue refunding revenue


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obligations to pay any redemption premium payable on theoutstanding revenue obligations being funded or refunded. Suchfunding or refunding revenue obligations shall be payable onlyout of a special fund created out of the gross revenues of suchpublic utility, and shall only be a valid claim as against suchspecial fund and the amount of the revenues of such utilitypledged to such fund. Such funding or refunding revenueobligations shall in the discretion of the commission beexchanged at par for the revenue obligations which are beingfunded or refunded or shall be sold in such manner, at such priceand at such rate or rates of interest as the commission shalldeem for the best interest of the district. Said funding orrefunding [revenue] obligations shall except as specificallyprovided in this section, be issued in accordance with theprovisions with respect to revenue obligations in chapter 182,Laws of 1941 set forth. [1970 ex.s. c 56 § 79; 1969 ex.s. c 232§ 84; 1959 c 218 § 10; 1941 c 182 § 8; Rem. Supp. 1941 c11611-8.]

NOTES:

Effective date--Purpose--1970 ex.s. c 56: See notesfollowing RCW 39.44.030.


RCW 54.24.100 Execution of revenue obligations--Signatures. (1) All revenue obligations, including funding and refundingrevenue obligations, shall be executed in such manner as thecommission may determine: PROVIDED, That warrants may be signedas provided in RCW 54.24.010. Any interest coupons attached toany revenue obligations may be executed with facsimile orlithographed signatures, or otherwise, as the commission maydetermine.

(2) Notwithstanding subsection (1) of this section, suchobligations may be issued and sold in accordance with chapter39.46 RCW. [1983 c 167 § 151; 1981 c 37 § 2; 1959 c 218 § 11;1941 c 182 § 9; Rem. Supp. 1941 § 11611-9.]

NOTES:


Facsimile signatures: RCW 39.44.100 through 39.44.102; chapter39.62 RCW.

RCW 54.24.110 Laws and resolutions as contract. Theprovisions of chapter 182, Laws of 1941 and the provisions ofchapter 1, Laws of 1931, not hereby superseded, and of anyresolution or resolutions providing for the issuance of anyrevenue obligations as herein set forth shall constitute a


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contract with the holder or holders of such revenue obligationsand the agreements and covenants of the district and itscommission under said acts and any such resolution or resolutionsshall be enforceable by any revenue obligation holder by mandamusor any other appropriate suit or action in any court of competentjurisdiction. [1959 c 218 § 12; 1941 c 182 § 10; Rem. Supp. 1941§ 11611-10.]

NOTES:

Mandamus: RCW 7.16.150 through 7.16.280.

RCW 54.24.120 Obligations as lawful securities andinvestments. All bonds, warrants, and revenue obligations issuedunder the authority of chapter 1, Laws of 1931 and chapter 182,Laws of 1941 shall be legal securities, which may be used by anybank or trust company for deposit with the state treasurer, orany county, city, or town treasurer, as security for deposits inlieu of a surety bond under any law relating to deposits ofpublic moneys and shall constitute legal investments for trusteesand other fiduciaries other than corporations doing a trustbusiness in this state and for savings and loan associations,banks, and insurance companies doing business in this state. Allsuch bonds, warrants, and revenue obligations and all couponsappertaining thereto shall be negotiable instruments within themeaning of and for all purposes of the negotiable instruments lawof this state. [1959 c 218 § 13; 1941 c 182 § 11; Rem. Supp.1941 § 11611-11.]

NOTES:

Investment securities: Article 62A.8 RCW.

LOCAL IMPROVEMENT GUARANTY FUND

RCW 54.24.200 Local improvement guaranty fund. Everypublic utility district in the state is hereby authorized, byresolution, to create a fund for the purpose of guaranteeing, tothe extent of such fund, and in the manner hereinafter provided,the payment of such of its local improvement bonds and/orwarrants as the commission may determine issued to pay for anylocal improvement within any local utility district establishedwithin the boundaries of the public utility district. Such fundshall be designated "local improvement guaranty fund, publicutility district No. . . . .". For the purpose of maintainingsuch fund the public utility district shall set aside and payinto it such proportion as the commissioners may direct byresolution of the monthly gross revenues of its public utilitiesfor which local improvement bonds and/or warrants have beenissued and guaranteed by said fund: PROVIDED, HOWEVER, That anyobligation to make payments into said fund as herein providedshall be junior to any pledge of said gross revenues for the


Page 72

payment of any outstanding or future general obligation bonds orrevenue bonds of the district. The proportion may be varied fromtime to time as the commissioners deem expedient: PROVIDED,FURTHER, That under the existence of the conditions set forth insubdivisions (1) and (2), hereunder, and when consistent with thecovenants of a public utility district securing its bonds, theproportion shall be as therein specified, to wit:

(1) When bonds and/or warrants of a local utility districthave been guaranteed and are outstanding and the guaranty funddoes not have a cash balance equal to twenty percent of all bondsand/or warrants originally guaranteed hereunder, excluding bondsand/or warrants which have been retired in full, then twentypercent of the gross monthly revenues from each public utilityfor which such bonds and/or warrants have been issued and areoutstanding but not necessarily from users in other parts of thepublic utility district as a whole, shall be set aside and paidinto the guaranty fund: PROVIDED, That when, under therequirements of this subdivision, the cash balance accumulates sothat it is equal to twenty percent of the total originalguaranteed bonds and/or warrants, exclusive of any issue of bondsand/or warrants of a local utility district which issue has beenpaid and/or redeemed in full, or equal to the full amount of allbonds and/or warrants guaranteed, outstanding and unpaid, whichamount might be less than twenty percent of the original totalguaranteed, then no further revenue need be set aside and paidinto the guaranty fund so long as such condition continues;

(2) When warrants issued against the guaranty fund remainoutstanding and uncalled, for lack of funds, for six months fromdate of issuance, or when bonds, warrants, or any coupons orinterest payments guaranteed hereunder have been matured for sixmonths and have not been redeemed, then twenty percent of thegross monthly revenue, or such portion thereof as thecommissioners determine will be sufficient to retire the warrantsor redeem the coupons, interest payments, bonds and/or warrantsin the ensuing six months, derived from all the users of thepublic utilities for which such bonds and/or warrants have beenissued and are outstanding in whole or in part, shall be setaside and paid into the guaranty fund: PROVIDED, That when underthe requirements of this subdivision all warrants, coupons, bondsand/or warrants specified in this subdivision have been redeemedand interest payments made, no further income need be set asideand paid into the guaranty fund under the requirements of thissubdivision unless other warrants remain outstanding and unpaidfor six months or other coupons, bonds and/or warrants default orinterest payments are not made: PROVIDED, FURTHER, HOWEVER, Thatno more than a total of twenty percent of the gross monthlyrevenue shall be required to be set aside and paid into theguaranty fund by these subdivisions (1) and (2). [1983 c 167 § 152; 1957 c 150 § 1.]

NOTES:



Page 73

Local utility districts: RCW 54.16.120.

RCW 54.24.210 Local improvement guaranty fund--Duties ofthe district. To comply with the requirements of setting asideand paying into the local improvement guaranty fund a proportionof the monthly gross revenues of the public utilities of adistrict, for which guaranteed local improvement bonds and/orwarrants have been issued and are outstanding, the district shallbind and obligate itself so long as economically feasible tomaintain and operate the utilities and establish, maintain andcollect such rates for water and/or electric energy, as the casemay be, as will produce gross revenues sufficient to maintain andoperate the utilities, and make necessary provision for theguaranty fund. The district shall alter its rates for waterand/or electric energy, as the case may be, from time to time andshall vary them in different portions of its territory to complywith such requirements. [1957 c 150 § 2.]

RCW 54.24.220 Local improvement guaranty fund--Warrants tomeet liabilities. When a bond, warrant, or any coupon orinterest payment guaranteed by the guaranty fund matures andthere are not sufficient funds in the local utility district bondredemption fund to pay it, the county treasurer shall pay it fromthe local improvement guaranty fund of the public utilitydistrict; if there are not sufficient funds in the guaranty fundto pay it, it may be paid by issuance and delivery of a warrantupon the local improvement guaranty fund.

When the cash balance in the local improvement guaranty fundis insufficient for the required purposes, warrants drawinginterest at a rate determined by the commission may be issued bythe district auditor, against the fund to meet any liabilityaccrued against it and shall issue them upon demand of the ownersof any matured coupons, bonds, interest payments, and/or warrantsguaranteed hereby, or to pay for any certificate of delinquencyfor delinquent installments of assessments as providedhereinafter. Guaranty fund warrants shall be a first lien intheir order of issuance upon the guaranty fund. [1983 c 167 §153; 1981 c 156 § 19; 1957 c 150 § 3.]

NOTES:


RCW 54.24.230 Local improvement guaranty fund--Certificatesof delinquency--Contents, purchase, payment, issuance, sale. Within twenty days after the date of delinquency of any annualinstallment of assessments levied for the purpose of paying thelocal improvement bonds and/or warrants of a district guaranteedhereunder, the county treasurer shall compile a statement of allinstallments delinquent together with the amount of accruedinterest and penalty appurtenant to each installment, and shall


Page 74

forthwith purchase, for the district, certificates of delinquencyfor all such delinquent installments. Payment for thecertificates shall be made from the local improvement guarantyfund and if there is not sufficient money in that fund to pay forthe certificates, the county treasurer shall accept the localimprovement guaranty fund warrants in payment therefor. Allcertificates shall be issued in the name of the local improvementguaranty fund and all guaranty fund warrants issued in paymenttherefor shall be issued in the name of the appropriate localutility district fund. When a market is available and thecommissioners direct, the county treasurer shall sell anycertificates belonging to the local improvement guaranty fund,for not less than face value thereof plus accrued interest fromdate of issuance to date of sale.

The certificates shall be issued by the county treasurer,shall bear interest at the rate of ten percent per year, shalleach be for the face value of the delinquent installment, plusaccrued interest to date of issuance, plus a penalty of fivepercent of the face value, and shall set forth the:

(1) Description of property assessed;(2) Date the installment of assessment became delinquent;

and(3) Name of the owner or reputed owner, if known. [1957 c

150 § 4.]

RCW 54.24.240 Local improvement guaranty fund--Certificatesof delinquency--Redemption, foreclosure. The certificates ofdelinquency may be redeemed by the owner of the property assessedat any time up to two years from the date of foreclosure of thecertificate.

If a certificate is not redeemed on the second occurringfirst day of January, after its issuance, the county treasurershall foreclose the certificate in the manner specified for theforeclosure of the lien of local improvement assessments incities, and if no redemption is made within the succeeding twoyears, from date of the decree of foreclosure, shall execute anddeliver unto the public utility district, as trustee for thefund, a deed conveying fee simple title to the property describedin the foreclosed certificate. [1957 c 150 § 5.]

RCW 54.24.250 Local improvement guaranty fund--Subrogationof district as trustee of fund, effect on fund, disposition ofproceeds. When there is paid out of a guaranty fund any sum onthe principal or interest upon local improvement bonds, and/orwarrants, or on the purchase of certificates of delinquency, thepublic utility district, as trustee, for the fund, shall besubrogated to all rights of the owner of the bonds, and/orwarrants, any interest coupons, or delinquent assessmentinstallments so paid; and the proceeds thereof, or of theassessment underlying them, shall become a part of the guarantyfund. There shall also be paid into the guaranty fund theinterest received from the bank deposits of the fund, as well asany surplus remaining in the local utility district funds


Page 75

guaranteed hereunder, after the payment of all outstanding bondsand/or warrants payable primarily out of such local utilitydistrict funds. As among the several issues of bonds and/orwarrants guaranteed by the fund, no preference shall exist, butdefaulted interest coupons and bonds and/or warrants shall bepurchased out of the fund in the order of their presentation.

The commissioners shall prescribe, by resolution,appropriate rules for the guaranty fund consistent herewith. Somuch of the money of a guaranty fund as is necessary and notrequired for other purposes hereunder may be used to purchaseproperty at county tax foreclosure sales or from the county afterforeclosure in cases where the property is subject to unpaidlocal improvement assessments securing bonds and/or warrantsguaranteed hereunder and such purchase is deemed necessary forthe purpose of protecting the guaranty fund. In such cases thefunds shall be subrogated to all rights of the district. Afterso acquiring title to real property, the district may lease orresell and convey it in the same manner that county property maybe leased or resold and for such prices and on such terms as maybe determined by resolution of the commissioners. All proceedsresulting from such resales shall belong to and be paid into theguaranty fund. [1983 c 167 § 154; 1957 c 150 § 6.]

NOTES:


RCW 54.24.260 Local improvement guaranty fund--Rights andremedies of bond or warrant holder which shall be printed on bondor warrant--Disposition of balance of fund. Neither the holdernor the owner of local improvement bonds and/or warrantsguaranteed hereunder shall have a claim therefor against thepublic utility district, except for payment from the specialassessment made for the improvement for which the bonds and/orwarrants were issued, and except as against the guaranty fund. The district shall not be liable to any holder or owner of suchlocal improvement bonds and/or warrants for any loss to theguaranty fund occurring in the lawful operation thereof by thedistrict. The remedy of the holder of a local improvement bondand/or warrant shall be confined to the enforcement of theassessment and to the guaranty fund. A copy of the foregoingpart of this section shall be plainly written, printed, orengraved on each local improvement bond and/or warrant guaranteedhereby. The establishment of a guaranty fund shall not be deemedat variance from any comprehensive plan heretofore adopted by adistrict.

If a guaranty fund at any time has balance therein in cash,and the obligations guaranteed thereby have all been paid off,the balance may be transferred to such other fund of the districtas the commissioners shall, by resolution, direct. [1957 c 150 §7.]


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CHAPTER 54.28 RCW

PRIVILEGE TAXES

Sections

54.28.010 Definitions.54.28.011 "Gross revenue" defined.54.28.020 Tax imposed--Rates--Additional tax imposed.54.28.025 Tax imposed with respect to thermal electric

generating facilities--Rate--Additional taximposed.

54.28.030 Districts' report to department of revenue.54.28.040 Tax computed--Payment--Penalties--Disposition.54.28.050 Distribution of tax.54.28.055 Distribution of tax proceeds from thermal electric

generating facilities.54.28.060 Interest.54.28.070 Municipal taxes--May be passed on.54.28.080 Additional tax for payment on bonded indebtedness of

school districts.54.28.090 Deposit of funds to credit of certain taxing

districts.54.28.100 Use of moneys received by taxing district.54.28.110 Voluntary payments by district to taxing entity for

removal of property from tax rolls.54.28.120 Amount of tax if district acquires electric utility

property from public service company.

NOTES:

Special benefit assessments--Property taxes--Exemptions: RCW84.34.300 through 84.34.380.

RCW 54.28.010 Definitions. As used in this chapter:(1) "Operating property" means all of the property utilized

by a public utility district in the operation of a plant orsystem for the generation, transmission, or distribution ofelectric energy for sale;

(2) "Taxing districts" means counties, cities, towns, schooldistricts, and road districts;

(3) "Distributes to consumers" means the sale of electricenergy to ultimate consumers thereof, and does not include salesof electric energy for resale by the purchaser;

(4) "Wholesale value" means all costs of a public utilitydistrict associated with the generation and transmission ofenergy from its own generation and transmission system to thepoint or points of inter-connection with a distribution systemowned and used by a district to distribute such energy toconsumers, or in the event a distribution system owned by adistrict is not used to distribute such energy, then the termmeans the gross revenues derived by a district from the sale ofsuch energy to consumers;


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(5) "Thermal electric generating facility" means asteam-powered electrical energy producing facility utilizingnuclear or fossil fuels;

(6) "Placed in operation" means delivery of energy into atransmission or distribution system for use or sale in such amanner as to establish a value accruing to the power plantoperator, except operation incidental to testing or startupadjustments;

(7) "Impacted area" for a thermal electric generatingfacility on a federal reservation means that area in the statelying within thirty-five statute miles of the most commonly usedentrance of the federal reservation and which is south of thesouthern boundary of township fifteen north. [1977 ex.s. c 366 §1; 1967 ex.s. c 26 § 22; 1959 c 274 § 1; 1957 c 278 § 7. Prior: (i) 1941 c 245 § 1, part; Rem. Supp. 1941 § 11616-1, part. (ii)1949 c 227 § 1(f); Rem. Supp. 1949 § 11616-2(f).]

NOTES:

Effective date--1967 ex.s. c 26: See note following RCW82.01.050.

RCW 54.28.011 "Gross revenue" defined. "Gross revenue"shall mean the amount received from the sale of electric energyexcluding any tax levied by a municipal corporation upon thedistrict pursuant to RCW 54.28.070. [1957 c 278 § 12.]

RCW 54.28.020 Tax imposed--Rates--Additional tax imposed. (1) There is hereby levied and there shall be collected fromevery district a tax for the act or privilege of engaging withinthis state in the business of operating works, plants orfacilities for the generation, distribution and sale of electricenergy. With respect to each such district, except with respectto thermal electric generating facilities taxed under RCW54.28.025, such tax shall be the sum of the following amounts: (a) Two percent of the gross revenues derived by the districtfrom the sale of all electric energy which it distributes toconsumers who are served by a distribution system owned by thedistrict; (b) five percent of the first four mills perkilowatt-hour of wholesale value of self-generated energydistributed to consumers by a district; (c) five percent of thefirst four mills per kilowatt-hour of revenue obtained by thedistrict from the sale of self-generated energy for resale.

(2) An additional tax is imposed equal to the rate specifiedin RCW 82.02.030 multiplied by the tax payable under subsection(1) of this section. [1983 2nd ex.s. c 3 § 8; 1982 1st ex.s. c35 § 18; 1977 ex.s. c 366 § 2; 1959 c 274 § 2; 1957 c 278 § 2. Prior: 1949 c 227 § 1(a); 1947 c 259 § 1(a); 1941 c 245 § 2(a);Rem. Supp. 1949 § 11616-2(a).]

NOTES:


Page 78

Construction--Severability--Effective dates--1983 2nd ex.s.c 3: See notes following RCW 82.04.255.

Severability--Effective dates--1982 1st ex.s. c 35: Seenotes following RCW 82.08.020.

Severability--1947 c 259: "If any section, subsection,clause, sentence or phrase of this act be for any reason adjudgedunconstitutional, such adjudication shall not invalidate theremaining portions of this act, and the legislature herebydeclares that it would have enacted this act notwithstanding theomission of the portion so adjudicated invalid." [1947 c 259 §2.]

RCW 54.28.025 Tax imposed with respect to thermal electricgenerating facilities--Rate--Additional tax imposed. (1) Thereis hereby levied and there shall be collected from every districtoperating a thermal electric generating facility, as defined inRCW 54.28.010 as now or hereafter amended, having a designcapacity of two hundred fifty thousand kilowatts or more, locatedon a federal reservation, which is placed in operation afterSeptember 21, 1977, a tax for the act or privilege of engagingwithin the state in the business of generating electricity foruse or sale, equal to one and one-half percent of wholesale valueof energy produced for use or sale, except energy used in theoperation of component parts of the power plant and associatedtransmission facilities under control of the person operating thepower plant.

(2) An additional tax is imposed equal to the rate specifiedin RCW 82.02.030 multiplied by the tax payable under subsection(1) of this section. [1983 2nd ex.s. c 3 § 9; 1982 1st ex.s. c35 § 19; 1977 ex.s. c 366 § 6.]

NOTES:

Construction--Severability--Effective dates--1983 2nd ex.s.c 3: See notes following RCW 82.04.255.


RCW 54.28.030 Districts' report to department of revenue. On or before the fifteenth day of March of each year, eachdistrict subject to this tax shall file with the department ofrevenue a report verified by the affidavit of its manager orsecretary on forms prescribed by the department of revenue. Suchreport shall state (1) the gross revenues derived by the districtfrom the sale of all distributed energy to consumers and therespective amounts derived from such sales within each county;(2) the gross revenues derived by the district from the sale ofself-generated energy for resale; (3) the amount of all generatedenergy distributed from each of the facilities subject totaxation by a district from its own generating facilities, the


Page 79

wholesale value thereof, and the basis on which the value iscomputed; (4) the total cost of all generating facilities and thecost of acquisition of land and land rights for such facilitiesor for reservoir purposes in each county; and (5) such other andfurther information as the department of revenue reasonably mayrequire in order to administer the provisions of this chapter. In case of failure by a district to file such report, thedepartment may proceed to determine the information, whichdetermination shall be contestable by the district only foractual fraud. [1977 ex.s. c 366 § 3; 1975 1st ex.s. c 278 § 30;1959 c 274 § 3; 1957 c 278 § 3. Prior: 1949 c 227 § 1(b); 1947c 259 § 1(b); 1941 c 245 § 2(b); Rem. Supp. 1949 § 11616-2(b).]

NOTES:

Construction--Severability--1975 1st ex.s. c 278: See notesfollowing RCW 11.08.160.

RCW 54.28.040 Taxcomputed--Payment--Penalties--Disposition. (1) Before May 1st,the department of revenue shall compute the tax imposed by thischapter for the last preceding calendar year and notify thedistrict of the amount thereof, which shall be payable on orbefore the following June 1st.

(2) If payment of any tax is not received by the departmenton or before the due date, there shall be assessed a penalty offive percent of the amount of the tax; if the tax is not receivedwithin one month of the due date, there shall be assessed a totalpenalty of ten percent of the amount of the tax; and if the taxis not received within two months of the due date, there shall beassessed a total penalty of twenty percent of the amount of thetax.

(3) Upon receipt of the amount of each tax imposed thedepartment of revenue shall deposit the same with the statetreasurer, who shall deposit four percent of the revenuesreceived under RCW 54.28.020(1) and 54.28.025(1) and all revenuesreceived under RCW 54.28.020(2) and 54.28.025(2) in the generalfund of the state and shall distribute the remainder in themanner hereinafter set forth. The state treasurer shall send aduplicate copy of each transmittal to the department of revenue. [1996 c 149 § 16; 1982 1st ex.s. c 35 § 20; 1975 1st ex.s. c 278§ 31; 1957 c 278 § 4. Prior: 1949 c 227 § 1(c); 1947 c 259 §1(c); 1941 c 245 § 2(c); Rem. Supp. 1949 § 11616-2(c).]

NOTES:

Findings--Intent--Effective date--1996 c 149: See notesfollowing RCW 82.32.050.




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RCW 54.28.050 Distribution of tax. After computing the taximposed by RCW 54.28.020(1), the department of revenue shallinstruct the state treasurer, after placing thirty-seven andsix-tenths percent in the state general fund to be dedicated forthe benefit of the public schools, to distribute the balancecollected under RCW 54.28.020(1)(a) to each county in proportionto the gross revenue from sales made within each county; and todistribute the balance collected under RCW 54.28.020(1) (b) and(c) as follows: If the entire generating facility, includingreservoir, if any, is in a single county then all of the balanceto the county where such generating facility is located. If anyreservoir is in more than one county, then to each county inwhich the reservoir or any portion thereof is located apercentage equal to the percentage determined by dividing thetotal cost of the generating facilities, including adjacentswitching facilities, into twice the cost of land and land rightsacquired for any reservoir within each county, land and landrights to be defined the same as used by the federal powercommission. If the powerhouse and dam, if any, in connectionwith such reservoir are in more than one county, the balanceshall be divided sixty percent to the county in which the owningdistrict is located and forty percent to the other county orcounties or if said powerhouse and dam, if any, are owned by ajoint operating agency organized under chapter 43.52 RCW, or bymore than one district or are outside the county of the owningdistrict, then to be divided equally between the counties inwhich such facilities are located. If all of the powerhouse anddam, if any, are in one county, then the balance shall bedistributed to the county in which the facilities are located.

The provisions of this section shall not apply to thedistribution of taxes collected under RCW 54.28.025. [1982 1stex.s. c 35 § 21; 1980 c 154 § 8; 1977 ex.s. c 366 § 4; 1975 1stex.s. c 278 § 32; 1959 c 274 § 4; 1957 c 278 § 5. Prior: 1949 c227 § 1(d); 1947 c 259 § 1(d); 1941 c 245 § 2(d); Rem. Supp. 1949§ 11616-2(d).]

NOTES:


Purpose--Effective dates--Savings--Disposition of certainfunds--Severability--1980 c 154: See notes following chapter82.45 RCW digest.


Effective date--1959 c 274: "The effective date of section4 of this 1959 amendatory act shall be January 1, 1960." [1959 c274 § 6.]


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RCW 54.28.055 Distribution of tax proceeds from thermalelectric generating facilities. (1) After computing the taximposed by RCW 54.28.025(1), the department of revenue shallinstruct the state treasurer to distribute the amount collectedas follows:

(a) Fifty percent to the state general fund for the supportof schools; and

(b) Twenty-two percent to the counties, twenty-three percentto the cities, three percent to the fire protection districts,and two percent to the library districts.

(2) Each county, city, fire protection district and librarydistrict shall receive a percentage of the amount fordistribution to counties, cities, fire protection districts andlibrary districts, respectively, in the proportion that thepopulation of such district residing within the impacted areabears to the total population of all such districts residingwithin the impacted area. For the purposes of this chapter, theterm "library district" includes only regional libraries asdefined in .*RCW 27.12.010(4), rural county library districts asdefined in .*RCW 27.12.010(5), intercounty rural librarydistricts as defined in .*RCW 27.12.010(6), and island librarydistricts as defined in .*RCW 27.12.010(7). The population of alibrary district, for purposes of such a distribution, shall notinclude any population within the library district and the impactarea that also is located within a city or town.

(3) If any distribution pursuant to subsection (1)(b) ofthis section cannot be made, then that share shall be proratedamong the state and remaining local districts.

(4) All distributions directed by this section to be made onthe basis of population shall be calculated in accordance withdata to be provided by the office of financial management. [1986c 189 § 1; 1982 1st ex.s. c 35 § 22; 1979 c 151 § 165; 1977 ex.s.c 366 § 7.]

NOTES:

.*Reviser's note: RCW 27.12.010 was alphabetized pursuantto RCW 1.08.015(2)(k), changing subsections (4) through (7) tosubsections (6), (7), (2), and (3), respectively.


RCW 54.28.060 Interest. Interest at the rate as computedunder RCW 82.32.050(2) shall be added to the tax hereby imposedfrom the due date until the date of payment. The tax shallconstitute a debt to the state and may be collected as such. [1996 c 149 § 12; 1957 c 278 § 6. Prior: 1949 c 227 § 1(e);1947 c 259 § 1(e); 1941 c 245 § 2(e); Rem. Supp. 1949 §11616-2(e).]

NOTES:


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Findings--Intent--Effective date--1996 c 149: See notesfollowing RCW 82.32.050.

RCW 54.28.070 Municipal taxes--May be passed on. Any cityor town in which a public utility district operates works, plantsor facilities for the distribution and sale of electricity shallhave the power to levy and collect from such district a tax onthe gross revenues derived by such district from the sale ofelectricity within the city or town, exclusive of the revenuesderived from the sale of electricity for purposes of resale. Such tax when levied shall be a debt of the district, and may becollected as such. Any such district shall have the power to addthe amount of such tax to the rates or charges it makes forelectricity so sold within the limits of such city or town. [1941 c 245 § 3; Rem. Supp. 1941 § 11616-3.]

RCW 54.28.080 Additional tax for payment on bondedindebtedness of school districts. Whenever any district acquiresan operating property from any private person, firm, orcorporation and a portion of the operating property is situatedwithin the boundaries of any school district and at the time ofsuch acquisition there is an outstanding bonded indebtedness ofthe school district, then the public utility district shall, inaddition to the tax imposed by this chapter, pay directly to theschool district a proportion of all subsequent payments by theschool district of principal and interest on said bondedindebtedness, said additional payments to be computed and paid asfollows: The amount of principal and interest required to bepaid by the school district shall be multiplied by the percentagewhich the assessed value of the property acquired bore to theassessed value of the total property in the school district atthe time of such acquisition. Such additional amounts shall bepaid by the public utility district to the school district notless than fifteen days prior to the date that such principal andinterest payments are required to be paid by the school district. In addition, any public utility district which acquires from anyprivate person, firm, or corporation an operating propertysituated within a school district, is authorized to makevoluntary payments to such school district for the use andbenefit of the school district. [1957 c 278 § 8. Prior: 1949 c227 § 1(g); 1941 c 245 § 2; Rem. Supp. 1949 § 11616-2(g).]

RCW 54.28.090 Deposit of funds to credit of certain taxingdistricts. The county legislative authority of each county shalldirect the county treasurer to deposit funds to the credit ofeach taxing district in the county, other than school districts,according to the manner they deem most equitable; except not lessthan an amount equal to three-fourths of one percent of the grossrevenues obtained by a district from the sale of electric energywithin any incorporated city or town shall be remitted to suchcity or town. Information furnished by the district to the


Page 83

county legislative authority shall be the basis for thedetermination of the amount to be paid to such cities or towns.

The provisions of this section shall not apply to thedistribution of taxes collected under RCW 54.28.025. [1980 c 154§ 9; 1977 ex.s. c 366 § 5; 1957 c 278 § 10.]

NOTES:

Purpose--Effective dates--Savings--Disposition of certainfunds--Severability--1980 c 154: See notes following chapter82.45 RCW digest.

RCW 54.28.100 Use of moneys received by taxing district. All moneys received by any taxing district shall be used forpurposes for which state taxes may be used under the provisionsof the state constitution. [1957 c 278 § 11.]

NOTES:

Revenue and taxation: State Constitution Art. 7.

RCW 54.28.110 Voluntary payments by district to taxingentity for removal of property from tax rolls. Whenever,hereafter, property is removed from the tax rolls as a result ofthe acquisition of operating property or the construction of agenerating plant by a public utility district, such publicutility district may make voluntary payments to any municipalcorporation or other entity authorized to levy and collect taxesin an amount not to exceed the amount of tax revenues beingreceived by such municipal corporation or other entity at thetime of said acquisition or said construction and which are lostby such municipal corporation or other entity as a result of theacquisition of operating property or the construction of agenerating plant by the public utility district: PROVIDED, Thatthis section shall not apply to taxing districts as defined inRCW 54.28.010, and: PROVIDED FURTHER, That in the event anyoperating property so removed from the tax rolls is dismantled orpartially dismantled the payment which may be paid hereundershall be correspondingly reduced. [1957 c 278 § 13.]

RCW 54.28.120 Amount of tax if district acquires electricutility property from public service company. In the event anydistrict hereafter purchases or otherwise acquires electricutility properties comprising all or a portion of an electricgeneration and/or distribution system from a public servicecompany, as defined in RCW 80.04.010, the total amount ofprivilege taxes imposed under chapter 278, Laws of 1957 to bepaid by the district annually on the combined operating propertywithin each county where such utility property is located,irrespective of any other basis of levy contained in thischapter, will be not less than the combined total of the advalorem taxes, based on regular levies, last levied against the


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electric utility property constituting the system so purchased oracquired plus the taxes paid by the district for the same year onthe revenues of other operating property in the same county underterms of this chapter. If all or any portion of the property soacquired is subsequently sold, or if rates charged to purchasersof electric energy are reduced, the amount of privilege taxrequired under this section shall be proportionately reduced. [1957 c 278 § 14.]

CHAPTER 54.32 RCW

CONSOLIDATION AND ANNEXATION

Sections

54.32.001 Actions subject to review by boundary review board.54.32.010 Consolidation of districts--Property

taxed--Boundaries enlarged.54.32.040 Right of countywide utility district to acquire

distribution properties.

NOTES:

Annexation of territory: RCW 54.04.035.

RCW 54.32.001 Actions subject to review by boundary reviewboard. Actions taken under chapter 54.32 RCW may be subject topotential review by a boundary review board under chapter 36.93RCW. [1989 c 84 § 49.]

RCW 54.32.010 Consolidation of districts--Propertytaxed--Boundaries enlarged. Two or more contiguous publicutility districts may become consolidated into one public utilitydistrict after proceedings had as required by .*sections 8909,8910 and 8911, of Remington's Compiled Statutes of Washington,PROVIDED, That a ten percent petition shall be sufficient; andpublic utility districts shall be held to be municipalcorporations within the meaning of said sections, and thecommission shall be held to be the legislative body of the publicutility district as the term legislative body is used in saidsections: PROVIDED, That any such consolidation shall in nowiseaffect or impair the title to any property owned or held by anysuch public utility district, or in trust therefor, or any debts,demands, liabilities or obligations existing in favor of oragainst either of the districts so consolidated, or anyproceeding then pending: PROVIDED, FURTHER, That no propertywithin either of the former public utility districts shall everbe taxed to pay any of the indebtedness of either of the othersuch former districts.

The boundaries of any public utility district may beenlarged and new territory included therein, after proceedingshad as required by .*.*section 8894 of Remington's Compiled


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Statutes of Washington: PROVIDED, That a ten percent petitionshall be sufficient; and public utility districts shall be heldto be municipal corporations within the meaning of said section,and the commission shall be held to be the legislative body ofthe public utility district: PROVIDED, That no property withinsuch territory so annexed shall ever be taxed to pay any portionof any indebtedness of such public utility district contractedprior to or existing at the date of such annexation.

In all cases wherein public utility districts of less areathan an entire county desire to be consolidated with a publicutility district including an entire county, and in all caseswherein it is desired to enlarge a public utility districtincluding an entire county, by annexing a lesser area than anentire county, no election shall be required to be held in thedistrict including an entire county. [1931 c 1 § 10; RRS §11614. Formerly RCW 54.32.010 through 54.32.030.]

NOTES:

Reviser's note: .*(1) Rem. Comp. Stat. §§ 8909, 8910, and8911 relating to the consolidation of municipal corporations hadbeen repealed and reenacted by 1929 c 64 at the time the abovesection was enacted. 1929 c 64 was compiled as RRS § 8909-1through 8909-12; see chapter 35.10 RCW.

.*.*(2) Rem. Comp. Stat. § 8894 became chapter 35.12 RCW. RCW 35.12.010, the only section in that chapter, was repealed by1969 ex.s. c 89 § 18.

RCW 54.32.040 Right of countywide utility district toacquire distribution properties. Upon the formation of acountywide public utility district in any county such districtshall have the right, in addition to any other right provided bylaw, to acquire by purchase or condemnation any electricaldistribution properties in the county from any other publicutility district or combination of public utility districts for aperiod of five years from the time of organization of said publicutility district. [1951 c 272 § 2.]

NOTES:

Acquisition of electrical distribution property from publicutility district by cities and towns: RCW 35.92.054.

CHAPTER 54.36 RCW

LIABILITY TO OTHER TAXING DISTRICTS

Sections

54.36.010 Definitions.54.36.020 Increased financial burden on school

district--Determination of number of constructionpupils.


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54.36.030 Compensation of school district for constructionpupils--Computation.

54.36.040 Compensation of school district for constructionpupils--Amount to be paid.

54.36.050 Compensation of school district for constructionpupils--How paid when more than one project inthe same school district.

54.36.060 Power to make voluntary payments to school districtfor capital construction.

54.36.070 Increased financial burden on county or other taxingdistrict--Power to make payments.

54.36.080 Funds received by school district--Equalizationapportionment.

RCW 54.36.010 Definitions. As used in this chapter:"Public utility district" means public utility district or

districts or a joint operating agency or agencies."Construction project" means the construction of generating

facilities by a public utility district. It includes therelocation of highways and railroads, by whomever done, to theextent that it is occasioned by the overflowing of their formerlocations, or by destruction or burying incident to theconstruction.

"Base-year enrollment" means the number of pupils enrolledin a school district on the first of May next preceding the dateconstruction was commenced.

"Subsequent-year enrollment" means the number of pupilsenrolled in a school district on any first of May afterconstruction was commenced.

"Construction pupils" means pupils who have a parent who isa full time employee on the construction project and who movedinto the school district subsequent to the first day of May nextpreceding the day the construction was commenced.

"Nonconstruction pupils" means other pupils. [1975 1stex.s. c 10 § 1; 1973 1st ex.s. c 154 § 99; 1957 c 137 § 1.]

NOTES:

Severability--1973 1st ex.s. c 154: See note following RCW2.12.030.

Operating agencies: Chapter 43.52 RCW.

RCW 54.36.020 Increased financial burden on schooldistrict--Determination of number of construction pupils. Whenas the result of a public utility district construction project aschool district considers it is suffering an increased financialburden in any year during the construction project, it shalldetermine the number of construction pupils enrolled in theschool district on the first of May of such year. [1957 c 137 §2.]


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RCW 54.36.030 Compensation of school district forconstruction pupils--Computation. If the subsequent-yearenrollment exceeds one hundred and three percent of the base-yearenrollment, the public utility district shall compensate theschool district for a number of construction pupils computed asfollows:

(1) If the subsequent-year enrollment of nonconstructionpupils is less than the base-year enrollment, compensation shallbe paid for the total number of all pupils minus one hundred andthree percent of the base-year enrollment.

(2) If the subsequent-year enrollment of nonconstructionpupils is not less than the base-year enrollment, compensationshall be paid for the total number of construction pupils minusthree percent of the base-year enrollment. [1957 c 137 § 3.]

RCW 54.36.040 Compensation of school district forconstruction pupils--Amount to be paid. The compensation to bepaid per construction pupils as computed in RCW 54.36.030 shallbe one-third of the average per-pupil cost of the local schooldistrict, for the school year then current. [1957 c 137 § 4.]

RCW 54.36.050 Compensation of school district forconstruction pupils--How paid when more than one project in thesame school district. If more than one public utility districtor joint operating agency is carrying on a construction projectin the same school district, the number of construction pupilsfor whom the school district is to receive compensation shall becomputed as if the projects were constructed by a single agency. The public utility districts or joint operating agencies involvedshall divide the cost of such compensation between themselves inproportion to the number of construction pupils occasioned by theoperations of each. [1957 c 137 § 5.]

RCW 54.36.060 Power to make voluntary payments to schooldistrict for capital construction. Public utility districts arehereby authorized to make voluntary payments to a school districtfor capital construction if their construction projects cause anincreased financial burden for such purpose on the schooldistrict. [1957 c 137 § 6.]

RCW 54.36.070 Increased financial burden on county or othertaxing district--Power to make payments. Public utilities arehereby authorized to make payments to a county or other taxingdistrict in existence before the commencement of construction onthe construction project which suffers an increased financialburden because of their construction projects, but such amountshall not be more than the amount by which the property taxeslevied against the contractors engaged in the work on theconstruction project failed to meet said increased financialburden. [1957 c 137 § 7.]


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RCW 54.36.080 Funds received by schooldistrict--Equalization apportionment. The funds paid by a publicutility district to a school district under the provisions ofthis chapter shall not be considered a school district receipt bythe superintendent of public instruction in determiningequalization apportionments under .*RCW 28.41.080. [1957 c 137 §8.]

NOTES:

.*Reviser's note: RCW 28.41.080 was repealed by 1965 ex.s.c 154 § 12; as a part thereof said section concludes with thefollowing proviso ". . . PROVIDED, That the provisions of suchstatutes herein repealed insofar as they are expressly orimpliedly adopted by reference or otherwise referred to in or forthe benefit of any other statutes, are hereby preserved for suchpurposes."

CHAPTER 54.40 RCW

FIVE COMMISSIONER DISTRICTS(Formerly: First-class districts)

Sections

54.40.010 Five commissioner districts--Requirements.54.40.020 Existing districts--Qualifications--Voters' approval.54.40.030 Transmittal of copies of federal hydroelectric

license to county auditor.54.40.040 Criteria, election to reclassify as a five

commissioner district--Ballot form--Voterequired.

54.40.050 Petition for reclassification--Certificate ofsufficiency--Election.

54.40.060 Division of district.54.40.070 Special election for commissioners from

districts--Terms.

RCW 54.40.010 Five commissioner districts--Requirements. Afive commissioner public utility district is a district that (1)either: (a) Has or had a license from the federal powercommission to construct a hydroelectric project of an estimatedcost of more than two hundred and fifty million dollars,including interest during construction; or (b) has a populationof five hundred thousand or more; and (2) voters of the districtapproved a ballot proposition authorizing the district to becomea five commissioner district as provided under RCW 54.40.040. All other public utility districts shall be known as threecommissioner districts. [1994 c 223 § 57; 1977 ex.s. c 36 § 1;1959 c 265 § 2.]


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RCW 54.40.020 Existing districts--Qualifications--Voters'approval. Every public utility district which on September 21,1977, shall be in existence and have such a license shall bequalified to become a five commissioner district upon approval ofthe voters of said district, and every public utility districtwhich on September 21, 1977, shall have become a first-classdistrict as previously provided by chapter 265, Laws of 1959shall be a five commissioner district. [1977 ex.s. c 36 § 2;1959 c 265 § 3.]

RCW 54.40.030 Transmittal of copies of federalhydroelectric license to county auditor. Within five days aftera public utility district shall receive a license from thefederal power commission to construct a hydroelectric project ofan estimated cost of more than two hundred and fifty milliondollars, including interest during construction, or, in the caseof a district which on September 21, 1977, is in existence andhas such a license within five days of September 21, 1977, thedistrict shall forward a true copy of said license, certified bythe secretary of the district, to the county auditor of thecounty wherein said district is located. [1977 ex.s. c 36 § 3;1959 c 265 § 4.]

RCW 54.40.040 Criteria, election to reclassify as a fivecommissioner district--Ballot form--Vote required. A publicutility district that has or had a license from the federal powercommission to construct a hydroelectric project of an estimatedcost of more than two hundred fifty million dollars, includinginterest during construction, or has a population of five hundredthousand or more, shall be classified as a five commissionerdistrict if voters of the district approve a ballot propositionauthorizing the change. In submitting the question to the votersfor their approval or rejection, the proposition shall beexpressed on the ballot in substantially the following terms:

Shall Public Utility District No. . . . . be reclassified a Five Commissioner District

for the purpose of increasing the number of commissioners to five. . . YES G

NO G

Should a majority of the voters voting on the question approvethe proposition, the district shall be declared a fivecommissioner district upon the certification of the electionreturns. [1994 c 223 § 58; 1977 ex.s. c 36 § 4; 1959 c 265 § 5.]

RCW 54.40.050 Petition for reclassification--Certificate ofsufficiency--Election. The question of reclassification of apublic utility district that has or had a license from thefederal power commission to construct a hydroelectric project ofan estimated cost of more than two hundred fifty million dollars,including interest during construction, or has a population offive hundred thousand or more, as a five commissioner publicutility district shall be submitted to the voters if a petition


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proposing the change is filed with the county auditor of thecounty in which the district is located, identifying the districtby number and praying that an election be held to determinewhether it shall become a five commissioner district. Thepetition must be signed by a number of registered voters of thedistrict equal to at least ten percent of the number ofregistered voters in the district who voted at the last generalelection and include each signer's residence address.

The petition shall be filed with the county auditor forverification of the validity of the signatures. Within thirtydays after receipt of the petition, the county auditor shalldetermine the sufficiency of the petition. If the petition isfound insufficient, the person who filed the same shall benotified by mail and he shall have an additional fifteen daysfrom the date of mailing such notice within which to submitadditional signatures, and the county auditor shall have anadditional thirty days after the submission of such additionalsignatures to determine the validity of the entire petition. Nosignature may be withdrawn after the petition has been filed.

If the petition, including these additional signatures ifany, is found sufficient, the county auditor shall certify itssufficiency to the public utility district and if thecommissioners of the public utility district had certified to thecounty auditor the eligibility of the district forreclassification as provided in this chapter, the county auditorshall submit to the voters of the district the question ofwhether the district shall become a five commissioner district. The election shall be held at the next state general electionoccurring sixty or more days after the petition was certified ashaving sufficient valid signatures. [1994 c 223 § 59; 1977 ex.s.c 36 § 5; 1959 c 265 § 6.]

RCW 54.40.060 Division of district. If thereclassification to a five commissioner district is approved bythe voters, the public utility district commission within sixtydays after the results of said election are certified shalldivide the public utility district into two districts of asnearly equal population as possible, and shall designate thedistricts as District A and District B. [1994 c 223 § 60; 1977ex.s. c 36 § 6; 1959 c 265 § 7.]

RCW 54.40.070 Special election for commissioners fromdistricts--Terms. Within thirty days after the public utilitydistrict commission divides the district into District A andDistrict B, the county legislative authority shall call a specialelection, to be held at the next special election date providedfor under .*RCW 29.13.010 that occurs sixty or more days afterthe call, at which time the initial commissioners for District Aand District B shall be elected. No primary shall be held and aspecial filing period shall be opened as provided in .*RCW29.15.170 and 29.15.180. The person receiving the greatestnumber of votes for each position shall be elected.


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The person who is elected receiving the greatest number ofvotes shall be elected to a four-year term of office, and theother person who is elected shall be elected to a two-year termof office, if the election is held in an even-numbered year, orthe person who is elected receiving the greatest number of votesshall be elected to a three-year term of office, and the otherperson who is elected shall be elected to a one-year term ofoffice, if the election is held in an odd-numbered year. Thelength of these terms of office shall be calculated from thefirst day in January in the year following their elections.

The newly elected commissioners shall assume officeimmediately after being elected and qualified and shall serveuntil their successors are elected and qualified and assumeoffice in accordance with .*RCW 29.04.170. Each successor shallbe elected to a four-year term of office. [1994 c 223 § 61; 1977ex.s. c 36 § 7; 1959 c 265 § 8.]

NOTES:

.*Reviser's note: RCW 29.13.010, 29.15.170, 29.15.180, and29.04.170 were recodified as RCW 29A.04.320, 29A.24.170,29A.24.180, and 29A.20.040, respectively, pursuant to 2003 c 111§ 2401, effective July 1, 2004. RCW 29A.04.320, 29A.24.170, and29A.24.180 were subsequently repealed by 2004 c 271 § 193. Laterenactment of RCW 29A.04.320, 29A.24.170, and 29A.24.180, see RCW29A.04.321, 29A.24.171, and 29A.24.181, respectively.

CHAPTER 54.44 RCW

NUCLEAR, THERMAL, ELECTRIC GENERATING POWER FACILITIES--JOINT DEVELOPMENT

Sections

54.44.010 Declaration of public purpose.54.44.020 Authority to participate in and enter into

agreements--Percentage ofownership--Expenses--Taxes--Payments.

54.44.030 Liability of city, joint operating agency, or publicutility district--Extent--Limitations.

54.44.040 Authority to provide money and/or property, issuerevenue bonds--Declaration of public purpose.

54.44.050 Depositories--Disbursement of funds.54.44.060 Agreements to conform to applicable laws.54.44.900 Liberal construction--Not to affect existing acts.54.44.901 Severability--1973 1st ex.s. c 7.54.44.910 Severability--1967 c 159.

RCW 54.44.010 Declaration of public purpose. It isdeclared to be in the public interest and for a public purposethat cities of the first class, public utility districts, jointoperating agencies organized under chapter 43.52 RCW, regulatedelectrical companies and, rural electrical cooperatives including


Page 92

generation and transmission cooperatives be permitted toparticipate together in the development of nuclear and otherthermal power facilities and transmission facilities ashereinafter provided as one means of achieving economies of scaleand thereby promoting the economic development of the state andits natural resources to meet the future power needs of the stateand all its inhabitants. [1975-'76 2nd ex.s. c 72 § 1; 1973 1stex.s. c 7 § 1; 1967 c 159 § 1.]

NOTES:

Severability--1975-'76 2nd ex.s. c 72: "If any provision ofthis 1976 amendatory act, or its application to any person orcircumstance is held invalid, the remainder of the act, or theapplication of the provision to other persons or circumstances isnot affected." [1975-'76 2nd ex.s. c 72 § 3.]

Legislative finding--Emergency--1973 1st ex.s. c 7: "Thelegislature finds that the immediate planning, financing,acquisition and construction of electric generating andtransmission facilities as provided in sections 1 through 6 ofthis 1973 amendatory act is a public necessity to meet the powerrequirements of the public utility districts, cities, jointoperating agencies and regulated utilities referred to insections 1 through 6 of this 1973 amendatory act and theinhabitants of this state; further that such public utilitydistricts, cities, joint operating agencies and regulatedutilities are ready, willing and able to undertake such planning,financing, acquisition and construction of said electricgenerating and transmission facilities immediately upon thepassage of sections 1 through 6 of this 1973 amendatory act. This 1973 amendatory act is necessary for the immediatepreservation of the public peace, health and safety, the supportof the state government and its existing public institutions, andshall take effect immediately." [1973 1st ex.s. c 7 § 7.]

Energy facilities, site locations: Chapter 80.50 RCW.

Nuclear energy and radiation: Chapter 70.98 RCW.

RCW 54.44.020 Authority to participate in and enter intoagreements--Percentage of ownership--Expenses--Taxes--Payments. (1) Except as provided in subsections (2) and (3) of thissection, cities of the first class, public utility districtsorganized under chapter 54.08 RCW, and joint operating agenciesorganized under chapter 43.52 RCW, any such cities and publicutility districts which operate electric generating facilities ordistribution systems and any joint operating agency shall havepower and authority to participate and enter into agreements witheach other and with electrical companies which are subject to thejurisdiction of the Washington utilities and transportationcommission or the public utility commissioner of Oregon,hereinafter called "regulated utilities", and with rural electriccooperatives, including generation and transmission cooperatives


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for the undivided ownership of any type of electric generatingplants and facilities, including, but not limited to, nuclear andother thermal power generating plants and facilities andtransmission facilities including, but not limited to, relatedtransmission facilities, hereinafter called "common facilities",and for the planning, financing, acquisition, construction,operation and maintenance thereof. It shall be provided in suchagreements that each city, public utility district, or jointoperating agency shall own a percentage of any common facilityequal to the percentage of the money furnished or the value ofproperty supplied by it for the acquisition and constructionthereof and shall own and control a like percentage of theelectrical output thereof.

(2) Cities of the first class, public utility districtsorganized under chapter 54.08 RCW, and joint operating agenciesorganized under chapter 43.52 RCW, shall have the power andauthority to participate and enter into agreements for theundivided ownership of a coal-fired thermal electric generatingplant and facility placed in operation before July 1, 1975,including related common facilities, and for the planning,financing, acquisition, construction, operation, and maintenanceof the plant and facility. It shall be provided in suchagreements that each city, public utility district, or jointoperating agency shall own a percentage of any common facilityequal to the percentage of the money furnished or the value ofproperty supplied by the city, district, or agency, for theacquisition and construction of the facility, and shall own andcontrol a like percentage of the electrical output thereof. Cities of the first class, public utility districts, and jointoperating agencies may enter into agreements under thissubsection with each other, with regulated utilities, with ruralelectric cooperatives, with electric companies subject to thejurisdiction of the regulatory commission of any other state, andwith any power marketer subject to the jurisdiction of thefederal energy regulatory commission.

(3)(a) Except as provided in subsections (1) and (2) of thissection, cities of the first class, public utility districtsorganized under chapter 54.08 RCW, any cities that operateelectric generating facilities or distribution systems, any jointoperating agency organized under chapter 43.52 RCW, or anyseparate legal entity comprising two or more thereof organizedunder chapter 39.34 RCW shall, either directly or as co-owners ofa separate legal entity, have power and authority to participateand enter into agreements described in (b) and (c) of thissubsection with each other, and with any of the following, eitherdirectly or as co-owners of a separate legal entity:

(i) Any public agency, as that term is defined in RCW39.34.020;

(ii) Electrical companies that are subject to thejurisdiction of the Washington utilities and transportationcommission or the regulatory commission of any state; and

(iii) Rural electric cooperatives and generation andtransmission cooperatives or any wholly owned subsidiaries ofeither rural electric cooperatives or generation and transmissioncooperatives.

(b) Agreements may provide for:Revised Code of Washington Title 54 - Public Utility Districts (2009)

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(i) The undivided ownership, or indirect ownership in thecase of a separate legal entity, of common facilities thatinclude any type of electric generating plant powered by aneligible renewable resource, as defined in RCW 19.285.030, andtransmission facilities including, but not limited to, relatedtransmission facilities, and for the planning, financing,acquisition, construction, operation, and maintenance thereof;and

(ii) The formation, operation, and ownership of a separatelegal entity that may own the common facilities.

(c) Agreements must provide that each city, public utilitydistrict, or joint operating agency:

(i) Owns a percentage of any common facility or a percentageof any separate legal entity equal to the percentage of the moneyfurnished or the value of property supplied by it for theacquisition and construction thereof; and

(ii) Owns and controls, or has a right to own and control inthe case of a separate legal entity, a like percentage of theelectrical output thereof.

(d) Any entity in which a public utility districtparticipates, either directly or as co-owner of a separate legalentity, in constructing or developing a common facility pursuantto this subsection shall comply with the provisions of chapter39.12 RCW.

(4) Each participant shall defray its own interest and otherpayments required to be made or deposited in connection with anyfinancing undertaken by it to pay its percentage of the moneyfurnished or value of property supplied by it for the planning,acquisition and construction of any common facility, or anyadditions or betterments thereto. The agreement shall provide auniform method of determining and allocating operation andmaintenance expenses of the common facility.

(5) Each city, public utility district, joint operatingagency, regulated utility, and cooperatives participating in thedirect or indirect ownership or operation of a common facilitydescribed in subsections (1) through (3) of this section shallpay all taxes chargeable to its share of the common facility andthe electric energy generated thereby under applicable statutesas now or hereafter in effect, and may make payments duringpreliminary work and construction for any increased financialburden suffered by any county or other existing taxing districtin the county in which the common facility is located, pursuantto agreement with such county or taxing district. [2008 c 198 §3; 1997 c 230 § 2; 1975-'76 2nd ex.s. c 72 § 2; 1974 ex.s. c 72 §1; 1973 1st ex.s. c 7 § 2; 1967 c 159 § 2.]

NOTES:

Finding--2008 c 198: See note following RCW 39.34.030.

Severability--1975-'76 2nd ex.s. c 72: See note followingRCW 54.44.010.


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RCW 54.44.030 Liability of city, joint operating agency, orpublic utility district--Extent--Limitations. In carrying outthe powers granted in this chapter, each such city, publicutility district, or joint operating agency shall be severallyliable only for its own acts and not jointly or severally liablefor the acts, omissions or obligations of others. No money orproperty supplied by any such city, public utility district, orjoint operating agency for the planning, financing, acquisition,construction, operation or maintenance of any common facilityshall be credited or otherwise applied to the account of anyother participant therein, nor shall the undivided share of anycity, public utility district, or joint operating agency in anycommon facility be charged, directly or indirectly, with any debtor obligation of any other participant or be subject to any lienas a result thereof. No action in connection with a commonfacility shall be binding upon any public utility district, city,or joint operating agency unless authorized or approved byresolution or ordinance of its governing body. [1973 1st ex.s. c7 § 3; 1967 c 159 § 3.]

RCW 54.44.040 Authority to provide money and/or property,issue revenue bonds--Declaration of public purpose. Any suchcity, public utility district, or joint operating agencyparticipating in common facilities under this chapter, without anelection, may furnish money and provide property, both real andpersonal, issue and sell revenue bonds pledging revenues of itselectric system and its interest or share of the revenues derivedfrom the common facilities and any additions and bettermentsthereto in order to pay its respective share of the costs of theplanning, financing, acquisition and construction thereof. Suchbonds shall be issued under the provisions of applicable lawsauthorizing the issuance of revenue bonds for the acquisition andconstruction of electric public utility properties by cities,public utility districts, or joint operating agencies as the casemay be. All moneys paid or property supplied by any such city,public utility district, or joint operating agency for thepurpose of carrying out the powers conferred herein are declaredto be for a public purpose. [1973 1st ex.s. c 7 § 4; 1967 c 159§ 4.]

RCW 54.44.050 Depositories--Disbursement of funds. Allmoneys belonging to cities, public utility districts, and jointoperating agencies in connection with common facilities shall bedeposited in such depositories as qualify for the deposit ofpublic funds and shall be accounted for and disbursed inaccordance with applicable law. [1973 1st ex.s. c 7 § 5; 1967 c159 § 5.]

RCW 54.44.060 Agreements to conform to applicable laws. Any agreement with respect to work to be done or materialfurnished by any such city, public utility district, or jointoperating agency in connection with the construction, maintenance


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and operation of the common facilities, and any additions andbetterments thereto shall be in conformity, as near as may be,with applicable laws now or hereafter in effect relating topublic utility districts or cities of the first class. [1973 1stex.s. c 7 § 6; 1967 c 159 § 6.]

RCW 54.44.900 Liberal construction--Not to affect existingacts. The provisions of this chapter shall be liberallyconstrued to effectuate the purposes thereof. This chapter shallnot be construed to affect any existing act or part thereofrelating to the construction, operation or maintenance of anypublic utility. [1967 c 159 § 7.]

RCW 54.44.901 Severability--1973 1st ex.s. c 7. If anyprovision of this 1973 amendatory act, or its application to anyperson or circumstance is held invalid, the remainder of the act,or the application of the provision to other persons orcircumstances is not affected. [1973 1st ex.s. c 7 § 8.]

RCW 54.44.910 Severability--1967 c 159. If any provisionsof this act or its application to any person or circumstanceshall be held invalid or unconstitutional, the remainder of thisact or its application to other persons or circumstances shallnot be affected. [1967 c 159 § 8.]

CHAPTER 54.48 RCW

AGREEMENTS BETWEEN ELECTRICAL PUBLIC UTILITIES AND COOPERATIVES

Sections

54.48.010 Definitions.54.48.020 Legislative declaration of policy.54.48.030 Agreements between public utilities and cooperatives

authorized--Boundaries--Extensionprocedures--Purchase or sale--Approval.

54.48.040 Cooperatives not to be classified as public utilitiesor under authority of utilities andtransportation commission.

RCW 54.48.010 Definitions. When used in this chapter:(1) "Public utility" means any privately owned public

utility company engaged in rendering electric service to thepublic for hire, any public utility district engaged in renderingservice to residential customers and any city or town engaged inthe electric business.

(2) "Cooperative" means any cooperative having authority toengage in the electric business. [1969 c 102 § 1.]


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RCW 54.48.020 Legislative declaration of policy. Thelegislature hereby declares that the duplication of the electriclines and service of public utilities and cooperatives isuneconomical, may create unnecessary hazards to the publicsafety, discourages investment in permanent undergroundfacilities, and is unattractive, and thus is contrary to thepublic interest and further declares that it is in the publicinterest for public utilities and cooperatives to enter intoagreements for the purpose of avoiding or eliminating suchduplication. [1969 c 102 § 2.]

RCW 54.48.030 Agreements between public utilities andcooperatives authorized--Boundaries--Extensionprocedures--Purchase or sale--Approval. In aid of the foregoingdeclaration of policy, any public utility and any cooperative ishereby authorized to enter into agreements with any one or moreother public utility or one or more other cooperative for thedesignation of the boundaries of adjoining service areas whicheach such public utility or each such cooperative shall observe,for the establishment of procedures for orderly extension ofservice in adjoining areas not currently served by any suchpublic utility or any such cooperative and for the acquisition ordisposal by purchase or sale by any such public utility or anysuch cooperative of duplicating utility facilities, whichagreements shall be for a reasonable period of time not in excessof twenty-five years: PROVIDED, That the participation in suchagreement of any public utility which is an electrical companyunder RCW 80.04.010, excepting cities and towns, shall beapproved by the Washington utilities and transportationcommission. [1969 c 102 § 3.]

RCW 54.48.040 Cooperatives not to be classified as publicutilities or under authority of utilities and transportationcommission. Nothing herein shall be construed to classify acooperative having authority to engage in the electric businessas a public utility or to include cooperatives under theauthority of the Washington utilities and transportationcommission. [1969 c 102 § 4.]

CHAPTER 54.52 RCW

VOLUNTARY CONTRIBUTIONS TO ASSIST LOW-INCOME CUSTOMERS

Sections

54.52.010 Voluntary contributions to assist low-incomeresidential customers--Administration.

54.52.020 Disbursal of contributions--Quarterly report.54.52.030 Contributions not considered commingling of funds.


Page 98

RCW 54.52.010 Voluntary contributions to assist low-incomeresidential customers--Administration. A public utility districtmay include along with, or as part of its regular customerbillings, a request for voluntary contributions to assistqualified low-income residential customers of the district inpaying their electricity bills. All funds received by thedistrict in response to such requests shall be (1) transmitted(a) to the grantee of the .*department of community, trade, andeconomic development which administers federally funded energyassistance programs for the state in the district's service areaor (b) to a charitable organization within the district's servicearea; or (2) retained by the district. All such funds shall beused solely to supplement assistance to low-income residentialcustomers of the district in paying their electricity bills. Thegrantee, charitable organization, or district is responsible todetermine which of the district's customers are qualified forlow-income assistance and the amount of assistance to be providedto those who are qualified. [2007 c 132 § 1; 1995 c 399 § 145;1985 c 6 § 20; 1984 c 59 § 1.]

NOTES:


RCW 54.52.020 Disbursal of contributions--Quarterly report. All assistance provided under this chapter shall be disbursed bythe grantee, charitable organization, or district. Whenapplicable, the public utility district will be paid on behalf ofthe customer by the grantee or the charitable organization. Whendirect vendor payment is not feasible, a check will be issuedjointly payable to the customer and the public utility district. The availability of funds for assistance to a district'slow-income customers as a result of voluntary contributions shallnot reduce the amount of assistance for which the district'scustomers are eligible under the federally funded energyassistance programs administered by the grantee of the.*department of community, trade, and economic development withinthe district's service area. When applicable, the grantee orcharitable organization shall provide the district with aquarterly report on January 15th, April 15th, July 15th, andOctober 15th which includes information concerning the totalamount of funds received from the district, the names of allrecipients of assistance from these funds, the amount received byeach recipient, and the amount of funds received from thedistrict currently on hand and available for future low-incomeassistance. [2007 c 132 § 2; 1995 c 399 § 146; 1985 c 6 § 21;1984 c 59 § 2.]

NOTES:


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RCW 54.52.030 Contributions not considered commingling offunds. Contributions received under a program implemented by apublic utility district in compliance with this chapter shall notbe considered a commingling of funds. [1984 c 59 § 3.]


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VERIFICATION STATEMENT

This Draft License Application is executed in the:

State of Washington,

County of Snohomish,

By: Steven J. Klein General Manager Public Utility District No. 1 of Snohomish County, Washington P.O. Box 1107 2320 California Street Everett, WA 98206-1 107 Tel: 425-783-8473 Fax: 425-783-8305 sj klein@,snopud.com

Steven J. Klein, being duly sworn, deposes and says that the contents of this Draft License Application of the Public Utility District No. 1 of Snohomish County, Washington, for a Hydrokinetic Pilot Project License for the Admiralty Tnlet Pilot Tidal Project, are true and correct to the best of h's knowledge and belief, and that this Draft License Application was signed on t h e 2 2 . 4 ay of December, 2009.

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Subscribed and sworn to before me on this3E+ay of December, 2009 by Steven J. Klein, personally known to me.

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~ V L , Printed Name

Residing at:

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... ? < . My commission expires: ~ / 7 . - ~ J S L

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Admiralty Inlet Pilot Tidal Project

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