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Committee hears bill to align joint operating agencies’ bid thresholds with public utility districts

January 27, 2025 | Environment & Energy, House of Representatives, Legislative Sessions, Washington


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Committee hears bill to align joint operating agencies’ bid thresholds with public utility districts
The House Environment & Energy Committee heard testimony on House Bill 1461 on Oct. 12. The bill would eliminate lower dollar thresholds that currently require joint operating agencies (JOAs) to follow public utility district (PUD) sealed-bid standards at lower amounts than PUDs themselves.

Representative Chris Stearns, sponsor of the bill, told the committee JOAs such as Energy Northwest are treated differently under current law and the change restores parity. ‘‘When local governments or special purpose districts such as public utility districts need work done, if it's below a certain financial threshold, they can do that in house. And then if it's above that threshold, they have to put that work out to bid. Energy Northwest…has to follow the same rules. But a few years ago, we had the threshold increased for local governments and PUDs, but not joint operating authority agencies,’’ Stearns said.

Energy Northwest procurement manager Richard Schaff testified in support and described operational impacts. He said the agency operates an all-clean generation portfolio including nuclear, wind, solar and hydro, and that the discrepancy in thresholds leaves JOAs operating under ‘‘outdated bid thresholds.’’ Schaff said raising the JOA thresholds would improve procurement flexibility and align JOAs with member utilities.

Committee staff explained current statutory thresholds: JOAs are subject to sealed bidding for purchases over $15,000 (materials) and $25,000 (work) while PUD thresholds are higher. The bill would raise those JOA thresholds to $30,000 and $150,000 respectively, matching PUD standards and reducing procedural asymmetry between JOAs and their member utilities.

No committee action or vote was recorded during the hearing; the committee closed the hearing after testimony and questions.

Why it matters: Proponents argue the change removes an outdated legal gap that constrains JOAs’ ability to operate efficiently and deliver clean-energy projects on behalf of member utilities. Opponents did not appear on the record in committee testimony.

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