AN ORDINANCE relating to the City Light Department; adopting the Washington State Department of Commerce's advisory opinion on the eligibility of Nucor Steel's waste heat to power project as energy conservation under the Washington Energy Independence
Act; authorizing the Superintendent of City Light, or his designee, to enter into a multiyear energy conservation funding agreement with Nucor Steel for the project; and ratifying and confirming certain prior acts.
WHEREAS, Ballot Initiative 937, the Energy Independence Act ("I-937"), was passed by Washington state voters on November 7, 2006, which requires qualifying electric utilities to obtain new renewable resources and undertake cost-effective energy
conservation; and
WHEREAS, the Revised Code of Washington ("RCW") 19.285.045 requires that the Washington State Department of Commerce provide an advisory opinion on whether a proposed electric generation project or conservation resource qualifies to meet a target under
RCW 19.285.040 within ninety days of receiving an application for an advisory opinion; and
WHEREAS, Nucor Steel submitted a letter of application to the State Department of Commerce requesting an advisory opinion on whether a waste heat to power project at its Seattle facility is eligible as energy conservation under Initiative 937; and,
WHEREAS, the Washington Department of Commerce has reviewed Nucor's waste heat to power project and issued an advisory opinion dated July 24, 2012, affirming that the project complies with RCW 19.285.040 and 19.285.060; and
WHEREAS, the City Council, as the governing board of City Light, must either adopt or reject the advisory opinion after public notice and hearing; and
WHEREAS, under its responsibilities in RCW 19.285.060, the State Auditor shall consider any project or resource reviewed and adopted under the process in this section as being in compliance with RCW 19.285.040 and19.285.060, but only if (a) the advisory
opinion affirmatively qualifies the project or resource; (b) the governing board of the consumer-owned utility that will use the project or resource adopts the advisory opinion after public notice and hearing; and (c) the project or resource is built or
acquired as proposed; and
WHEREAS, Seattle City Light's Conservation Resources Division intends to offer Nucor Steel an energy conservation funding agreement for the waste heat to power project with incentive payments based on the Washington Department of Commerce's advisory
opinion and the actual delivery of net energy production paid over a three-year period; NOW, THEREFORE,
BE IT ORDAINED BY THE CITY OF SEATTLE AS FOLLOWS:
Section 1. Pursuant to RCW 19.285.045 and after public notice and hearing, the City Council adopts the Washington Department of Commerce's advisory opinion dated July 24, 2012 qualifying Nucor Steel's waste heat to power project as an approved
conservation resource for purposes of RCW 19.285.040 . The advisory opinion is attached hereto as Attachment 1.
Section 2. The Superintendent of the City Light Department, or his designee, is hereby authorized to enter into a conservation agreement to provide funding for Nucor's waste heat to power project with incentive payments to be made over a three year
period. The agreement shall at a minimum include provisions consistent with the Nucor Waste Heat Recovery Project Term Sheet attached hereto as Attachment 2.
Section 3. Any act consistent with the authority of this ordinance and in compliance with the conditions of this ordinance taken after its passage and prior to its effective date is ratified and confirmed.
Section 4. This ordinance shall take effect and be in force 30 days after its approval by the Mayor, but if not approved and returned by the Mayor within ten days after presentation, it shall take effect as provided by Seattle Municipal Code Section
1.04.020.
Passed by the City Council the ____ day of ________________________, 2013, and signed by me in open session in authentication of its passage this
_____ day of ___________________, 2013.
_________________________________
President __________of the City Council
Approved by me this ____ day of _____________________, 2013.
_________________________________
Michael McGinn, Mayor
Filed by me this ____ day of __________________________, 2013.
____________________________________
Monica Martinez Simmons, City Clerk
(Seal)
Glenn Atwood SCL Waste Heat to Power Project ORD December 11, 2012 Version #1
Attachment 1: Department of Commerce Advisory Opinion, dated July 24, 2012
Attachment 2: Nucor Waste Heat Recovery Project Term Sheet