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HB 1847 - Distributed alt. energy dev. ¶

Section 1 ¶

The legislature finds that, as Washington works towards meeting its goals under the clean energy transformation act, we see many larger-scale renewable energy projects proposed. These projects can come with significant challenges. This act aims to incentivize the development of renewable energy on lands and structures that have minimal disruption to natural habitats, communities, cultural resources, and agriculture. This could include small-scale wind energy developments, solar energy developments on landfills, structures, and other developed lands, and the placement of solar panels on agricultural lands that ensure the continued viability of agriculture alongside energy production.
Washington state can lead by example, showing commitment to our own clean energy goals by identifying state lands and buildings appropriate for clean energy projects, ensuring that state resources are leveraged to meet our broader goals. Utilities can integrate lower conflict clean energy development into their clean energy targets. Incentivizing distributed energy can help us protect our rich agricultural lands and meet our clean energy goals.

Section 2 ¶

The following categories of clean energy facilities and nonproject activities that reduce environmental impacts are determined to constitute distributed energy priorities:
1. Solar energy generation and accompanying energy storage and electricity transmission and distribution, including vehicle charging equipment, when such facilities are located:
  1. Within the easement, right-of-way, or existing footprint of electrical transmission facilities;
  2. Within the easement, right-of-way, or existing footprint of a state highway or city or county road;
  3. On structures over or enclosing irrigation canals, drainage ditches, and irrigation, agricultural, livestock supply, stormwater, or wastewater reservoirs or similar impoundments of state waters that do not host salmon or steelhead trout runs;
  4. On elevated structures over parking lots;
2. On lands within an airport or restricted from other developments by airport operations;
1. On closed or capped portions of landfills;
2. On reclaimed or former surface mine lands or contaminated sites that have been remediated under chapter 70A.305 RCW or the federal comprehensive environmental response, compensation, and liability act (42 U.S.C. Sec. 9601 et seq.) in a manner that includes an asphalt or soil cap;
3. As an agrivoltaic facility; and
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 ix. On existing structures;
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1. Wind energy generation that is not a utility-scale wind energy facility as defined in RCW 70A.550.010, and accompanying energy storage and transmission and distribution equipment, including vehicle charging equipment;
2. Energy storage, when such facilities are located:
  1. Within the easement, right-of-way, or existing footprint of electrical transmission facilities;
  2. Within the easement, right-of-way, or existing footprint of a state highway or city or county road;
  3. On lands within an airport or restricted from other developments by airport operations;
  4. On closed or capped portions of landfills;
3. On reclaimed or former surface mine lands;
1. On contaminated sites that have been remediated under chapter 70A.305 RCW or the federal comprehensive environmental response, compensation, and liability act (42 U.S.C. Sec. 9601 et seq.) in a manner that includes an asphalt or soil cap; and
2. On or in existing structures;
3. Programs that reduce electric demand, manage the level or timing of electricity consumption, or provide electricity storage, renewable or nonemitting electric energy, capacity, or ancillary services to an electric utility and that are located on the distribution system, any subsystem of the distribution system, or behind the customer meter, including conservation and energy efficiency; and
1. Programs that reduce energy demand, manage the level or timing of energy consumption, or provide thermal energy storage.
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1. The department must review and, when appropriate, periodically recommend to the legislature additional types of distributed energy priorities for inclusion on the list under subsection (1) of this section.
2. The identification of distributed energy priorities in subsection (1) of this section applies to the maximum extent practical under state and federal law, but does not include any development sites or activities prohibited under other state or federal laws.
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1. For purposes of this section, "agrivoltaic facility" means a solar energy generation facility designed to be operated coincident with continued productive agricultural use of the land or the provision of ecological value, including habitat, or both.
2. An agrivoltaic facility must not permanently or significantly degrade the agricultural or ecological productivity of the land after the cessation of the operation of the facility or involve the sale of a water right associated with the land.
3. An agrivoltaics facility must not cause the temporary or permanent conversion of land from agricultural uses.
4. An agrivoltaic facility must be designed to continue to produce marketable and measurable agricultural products or ecosystem services under a business plan that considers soils, infrastructure, support services, water access, succession, and market access of any agricultural products to be produced at the facility.
5. For agrivoltaic facilities featuring continued agricultural production, solar panel arrays must be designed and installed in a manner that supports the continuation of a viable farm operation for the life of the array, and must consider, as appropriate, the availability of light, water infrastructure for crops or animals, and panel height and spacing relative to farm machinery needs.

Section 3 ¶

The department must assist in identifying, coordinating, and implementing opportunities for state government, in its role as a regulator, energy consumer, or possessor of property and assets capable of being used for alternative energy resource production, to facilitate the development of alternative energy resources, as defined in RCW 80.50.020, including facilitating distributed energy priorities identified in section 2 of this act.

Section 4 ¶

The definitions in this subsection apply throughout this section unless the context clearly requires otherwise.
1. "Alternative energy resource" has the same meaning as defined in RCW 80.50.020.
2. "Alternative jet fuel" has the same meaning as defined in RCW 43.158.010.
3. "Associated facilities" has the same meaning as defined in RCW 43.158.010.
4. "Clean energy product manufacturing facility" has the same meaning as defined in RCW 43.158.010.
5. "Clean energy project" has the same meaning as defined in RCW 43.158.010.
6. "Closely related proposals" means proposals that:
  1. Cannot or will not proceed unless the other proposals, or parts of proposals, are implemented simultaneously with them; or
  2. Are interdependent parts of a larger proposal and depend on the larger proposal as their justification or for their implementation.
7. "Green electrolytic hydrogen" has the same meaning as defined in RCW 80.50.020.
8. "Green hydrogen carrier" has the same meaning as defined in RCW 80.50.020.
  1. "Renewable hydrogen" has the same meaning as defined in RCW 80.50.020.
9. "Renewable natural gas" has the same meaning as defined in RCW 80.50.020.
10. "Renewable resource" has the same meaning as defined in RCW 80.50.020.
11. "Storage facility" has the same meaning as defined in RCW 80.50.020.
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1. After the submission of an environmental checklist and prior to issuing a threshold determination that a clean energy project proposal is likely to cause a probable significant adverse environmental impact consistent with RCW 43.21C.033, the lead agency must notify the project applicant and explain in writing the basis for its anticipated determination of significance. Prior to issuing the threshold determination of significance, the lead agency must give the project applicant the option of withdrawing and revising its application and the associated environmental checklist. The lead agency shall make its threshold determination based upon the changed or clarified application and associated environmental checklist. The responsible official has no more than 30 days from the date of the resubmission of a clarified or changed application to make a threshold determination, unless the applicant makes material changes that substantially modify the impact of the proposal, in which case the responsible official must treat the resubmitted clarified or changed application as new, and is subject to the timelines established in RCW 43.21C.033.
2. The notification required under (a) of this subsection is not an official determination by the lead agency and is not subject to appeal under this chapter.
3. Nothing in this subsection amends the requirements of RCW 43.21C.033 as they apply to proposals that are not for clean energy projects and nothing in this subsection precludes the lead agency from allowing an applicant for a proposal that is not a clean energy project to follow application processes similar to or the same as the application processes identified in this subsection.
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1. When an environmental impact statement is required, a lead agency shall prepare a final environmental impact statement for clean energy projects within 24 months of a threshold determination of a probable significant, adverse environmental impact.
2. A lead agency may work with clean energy project applicants to set or extend a time limit longer than 24 months under (a) of this subsection, provided the:
  1. Applicant agrees to a longer time limit; and
  2. Responsible official for the lead agency maintains an updated schedule available for public review.
3. For all clean energy projects that require the preparation of an environmental impact statement, the lead agency shall work collaboratively with applicants and all agencies that will have actions requiring review under this chapter to develop a schedule that shall:
  1. Include a list of, and roles and responsibilities for, all entities that have actions requiring review under this chapter for the project;
  2. Include a comprehensive schedule of dates by which review under this chapter will be completed, all actions requiring review under this chapter will be taken, and the public will have an opportunity to participate;
  3. Be completed within 60 days of issuance of a determination of significance;
  4. Be updated as needed, but no later than 30 days of missing a date on the schedule; and
4. Be available for public review on the state environmental policy act register.
5. A lead agency may fulfill its responsibilities under this subsection with a coordinated project plan prepared pursuant to 42 U.S.C. Sec. 4370m–2(c)(1) if it includes all dates identified under (c)(ii) of this subsection.
6. A failure to comply with the requirements in this subsection is not subject to appeal and does not provide a basis for the invalidation of the review by an agency under this chapter. Nothing in this subsection creates any civil liability for an agency or creates a new cause of action against an agency.
7. For clean energy projects, the provisions of this subsection are in addition to the requirements of RCW 43.21C.0311.
This subsection provides clarifications on the content of review under this chapter specific to clean energy projects.
1. In defining the proposal that is the subject of review under this chapter, a lead agency may not combine the evaluation of a clean energy project proposal with other proposals unless the:
  1. Proposals are closely related; or
  2. Applicant agrees to combining the proposals' evaluation.
2. An agency with authority to impose mitigation under RCW 43.21C.060 may require mitigation measures for clean energy projects only to address the environmental impacts that are attributable to and caused by a proposal.
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  1. The department of ecology must evaluate, in light of the goals of chapters 70A.45 and 19.405 RCW, the appropriateness of tools available under this chapter to expedite the processes required by this chapter, for alternative energy resource, energy storage, and electricity transmission and distribution actions that are unlikely to result in significant adverse environmental impacts. For each specific category of such projects, the department of ecology may, as appropriate:

(A) Categorically exempt from compliance with this chapter certain projects. The department may limit the availability of a categorical exemption under this subsection to development actions that do not exceed certain size thresholds or that are carried out in specified circumstances or locations; or

(B) Identify circumstances where it is appropriate to identify standardized mitigation, which may include best management practices, for potential adverse environmental impacts. When implemented, the standardized mitigation developed under this subsection must be considered in a threshold determination under this chapter.

    ii. The categorical exemption or standardized mitigation available under this subsection must, at minimum, be available, under specified circumstances, to proposed actions related to the:

(A) Categories of projects identified as distributed energy priorities under section 2 of this act other than projects on elevated structures over irrigation canals, drainage ditches, and reservoirs or similar impoundments of state waters; and

(B) Construction of structures with a footprint of less than 1,000 square feet that support solar energy generation panels or other equipment, if the construction of such structures is not undertaken wholly or partly on lands covered by water.

b. In adopting rules under this subsection, the department must:

    i. Consider the nonproject environmental impact statements prepared pursuant to RCW 43.21C.405 and 43.21C.535;

    ii. Consider applicable rules, guidance, and environmental best management practices adopted by federal agencies, and the scope and applicability of any similar exemptions under federal statute and rules to environmental review requirements under the national environmental policy act, 42 U.S.C. Sec. 4321 et seq.; and

    iii. Request and consider input from agencies, federally recognized Indian tribes, stakeholders, local governments, and the public in a manner that satisfies the obligations of chapters 34.05 and 70A.02 RCW, including to assist in the identification of the suitable scope, size thresholds, circumstances, best management practices, and mitigation measures.

c. In recognition of the state's regulatory requirements, which include 2030 and 2045 compliance deadlines for clean energy under chapter 19.405 RCW, and the urgency of the need to facilitate energy infrastructure developments, the department must aspire to finalize the adoption of rules under this subsection by January 1, 2028, so as to enable the application of the categorical exemptions and standardized mitigation under this subsection as quickly as possible.

Section 5 ¶

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1. By December 1, 2026, each of the following state agencies, in consultation with the department, must identify real property assets, such as rooftops, parking structures, and adjoining lands, within its management purview that are most suitable for alternative energy resource, energy storage, or electricity transmission and distribution, including electric vehicle charging equipment and development:
  1. The department of transportation;
  2. The department of natural resources;
  3. The department of enterprise services;
  4. The department of fish and wildlife;
2. The state parks and recreation commission;
1. The department of corrections;
2. The department of social and health services;
3. The department of children, youth, and families; and
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 ix. Institutions of higher education, as defined in RCW 28B.10.016.
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1. In identifying lands under (a) of this subsection, each agency:
  1. Must consult with the department, the department of ecology, and the electric utilities that provide service in the geographic areas of assets under state agency consideration;
  2. Must take into consideration potential environmental impacts, social conflicts associated with such developments, the potential economic value of the alternative energy resource, energy storage, or transmission development, and the likely costs of such development;
  3. Must prioritize the identification of real property assets that are suitable for distributed energy priorities identified in section 2 of this act; and
  4. May rely on and update, as appropriate, any previous assessments of assets under the agency's purview for purposes of fulfilling the obligations of this section.
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1. By December 1, 2026, the department, in consultation with the state agencies identified in subsection (1) of this section, must submit a report to appropriate committees of the legislature and the interagency clean energy siting coordinating council identifying the lands specified in subsection (1) of this section.
2. By December 1, 2028, relying upon the reports of each state agency under subsection (1) of this section, the department must publish targets for each state agency to make available real property assets in support of the achievement of the limits and targets specified in chapters 70A.45, 19.405, and 70A.65 RCW and that are reasonably achievable by each agency by the conclusion of calendar year 2035. The targets established under this section must include separate agencywide targets for each state agency named in subsection (1) of this section for each of the following: (i) Electricity production capacity of distributed energy priorities identified in section 2(1) (a) and (b) of this act; (ii) energy storage capacity; and (iii) electricity transmission and distribution capacity.
3. Each state agency identified in subsection (1) of this section must, to the extent authorized by state law, proactively make real property assets available for development through leases, agreements, or other mechanisms, or directly carry out development, of distributed energy priorities identified in section 2(1) (a) and (b) of this act, energy storage, and electricity transmission and distribution facilities, to enable the achievement of the targets established in (b) of this subsection.
For purposes of this section, "alternative energy resource" has the same meaning as in RCW 80.50.020.

Section 6 ¶

In support of the limits of chapter 70A.45 RCW and the clean power imperatives under chapter 19.405 RCW, it is the duty of the department, in a manner that does not conflict with the other powers, duties, and functions assigned to the department by law, to facilitate the development of real property assets, such as rooftops, parking structures, and adjoining lands, within its purview that are suitable for distributed energy priorities identified in section 2 of this act, energy storage, and electricity transmission and distribution.

Section 7 ¶

Section 8 ¶

In support of the limits of chapter 70A.45 RCW and the clean power imperatives under chapter 19.405 RCW, it is the duty of the commission, in a manner that does not conflict with the other powers, duties, and functions assigned to the commission by law, to facilitate the development of real property assets, such as rooftops, parking structures, and adjoining lands, within its purview that are suitable for distributed energy priorities identified in section 2 of this act, energy storage, and electricity transmission and distribution.

Section 9 ¶

Section 10 ¶

Section 11 ¶

Section 12 ¶

Section 13 ¶

Section 14 ¶

Subject to appropriation, the department must administer a matching grant program to support the activities of nonprofit organizations that provide wastewater utility services and counties, cities, port districts, and other municipal corporations in identifying and developing or making available for development real property assets, such as rooftops, parking structures, and adjoining lands, within the purview of those jurisdictions as market participants that are potentially suitable for distributed energy priorities identified in section 2 of this act, energy storage, and electricity transmission and distribution. The department must, upon request, provide technical assistance in support of the activities of counties, cities, port districts, and other municipal corporations in identifying and developing or making available for development real property assets within its ownership that are potentially suitable for alternative energy resource development.

Section 15 ¶

Each county is encouraged to identify and develop or make available for development real property assets, such as rooftops, parking structures, and adjoining lands, within its purview as a market participant that are potentially suitable for distributed energy priorities identified in section 2 of this act, energy storage development, and electrical transmission and distribution.

Section 16 ¶

Each city is encouraged to identify and develop or make available for development real property assets, such as rooftops, parking structures, and adjoining lands, within its purview as a market participant that are potentially suitable for distributed energy priorities identified in section 2 of this act, energy storage development, and electrical transmission and distribution.

Section 17 ¶

Each city is encouraged to identify and develop or make available for development real property assets, such as rooftops, parking structures, and adjoining lands, within its purview as a market participant that are potentially suitable for distributed energy resources identified in section 2 of this act, energy storage development, and electrical transmission and distribution.

Section 18 ¶

Each port district is encouraged to identify and develop or make available for development real property assets, such as rooftops, parking structures, and adjoining lands, that are potentially suitable for distributed energy priorities identified in section 2 of this act, energy storage development, and electrical transmission and distribution.

Section 19 ¶

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1. By January 1, 2022, and every four years thereafter, each investor-owned utility must develop and submit to the commission:
  1. A four-year clean energy implementation plan for the standards established under RCW 19.405.040(1) and 19.405.050(1) that proposes specific targets for energy efficiency, demand response, renewable energy, distributed energy priorities identified in section 2 of this act, and community solar projects as defined in RCW 80.28.370; and
  2. Proposed interim targets for meeting the standard under RCW 19.405.040(1) during the years prior to 2030 and between 2030 and 2045.
2. An investor-owned utility's clean energy implementation plan must:
  1. Be informed by the investor-owned utility's clean energy action plan developed under RCW 19.280.030;
  2. Be consistent with subsections (3) and (7) of this section; and
  3. Identify specific actions to be taken by the investor-owned utility over the next four years, consistent with the utility's long-range integrated resource plan and resource adequacy requirements, that demonstrate progress toward meeting the standards under RCW 19.405.040(1) and 19.405.050(1) and the interim targets proposed under (a)(i) of this subsection. The specific actions identified must be informed by the investor-owned utility's historic performance under median water conditions and resource capability and by the investor-owned utility's participation in centralized markets. In identifying specific actions in its clean energy implementation plan, the investor-owned utility may also take into consideration any significant and unplanned loss or addition of load it experiences.
3. The commission, after a hearing, must by order approve, reject, or approve with conditions an investor-owned utility's clean energy implementation plan and interim targets. The commission may, in its order, recommend or require more stringent targets than those proposed by the investor-owned utility. The commission may periodically adjust or expedite timelines if it can be demonstrated that the targets or timelines can be achieved in a manner consistent with the following:
  1. Maintaining and protecting the safety, reliable operation, and balancing of the electric system;
  2. Planning to meet the standards at the lowest reasonable cost, considering risk;
  3. Ensuring that all customers are benefiting from the transition to clean energy: Through the equitable distribution of energy and nonenergy benefits and the reduction of burdens to vulnerable populations and highly impacted communities; long-term and short-term public health and environmental benefits and reduction of costs and risks; and energy security and resiliency; and
  4. Ensuring that no customer or class of customers is unreasonably harmed by any resulting increases in the cost of utility-supplied electricity as may be necessary to comply with the standards.
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1. By January 1, 2022, and every four years thereafter, each consumer-owned utility must develop and submit to the department a four-year clean energy implementation plan for the standards established under RCW 19.405.040(1) and 19.405.050(1) that:
  1. Proposes interim targets for meeting the standard under RCW 19.405.040(1) during the years prior to 2030 and between 2030 and 2045, as well as specific targets for energy efficiency, demand response, renewable energy, and any combination of distributed energy priorities identified in section 2 of this act and community solar projects as defined in RCW 80.28.370;
  2. Is informed by the consumer-owned utility's clean energy action plan developed under RCW 19.280.030(1) or other ten-year plan developed under RCW 19.280.030(5);
  3. Is consistent with subsections (4) and (7) of this section; and
  4. Identifies specific actions to be taken by the consumer-owned utility over the next four years, consistent with the utility's long-range resource plan and resource adequacy requirements, that demonstrate progress towards meeting the standards under RCW 19.405.040(1) and 19.405.050(1) and the interim targets proposed under (a)(i) of this subsection. The specific actions identified must be informed by the consumer-owned utility's historic performance under median water conditions and resource capability and by the consumer-owned utility's participation in centralized markets. In identifying specific actions in its clean energy implementation plan, the consumer-owned utility may also take into consideration any significant and unplanned loss or addition of load it experiences.
2. The governing body of the consumer-owned utility must, after a public meeting, adopt the consumer-owned utility's clean energy implementation plan. The clean energy implementation plan must be submitted to the department and made available to the public. The governing body may adopt more stringent targets than those proposed by the consumer-owned utility and periodically adjust or expedite timelines if it can be demonstrated that such targets or timelines can be achieved in a manner consistent with the following:
  1. Maintaining and protecting the safety, reliable operation, and balancing of the electric system;
  2. Planning to meet the standards at the lowest reasonable cost, considering risk;
  3. Ensuring that all customers are benefiting from the transition to clean energy: Through the equitable distribution of energy and nonenergy benefits and reduction of burdens to vulnerable populations and highly impacted communities; long-term and short-term public health and environmental benefits and reduction of costs and risks; and energy security and resiliency; and
  4. Ensuring that no customer or class of customers is unreasonably harmed by any resulting increases in the cost of utility-supplied electricity as may be necessary to comply with the standards.
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1. An investor-owned utility must be considered to be in compliance with the standards under RCW 19.405.040(1) and 19.405.050(1) if, over the four-year compliance period, the average annual incremental cost of meeting the standards or the interim targets established under subsection (1) of this section equals a two percent increase of the investor-owned utility's weather-adjusted sales revenue to customers for electric operations above the previous year, as reported by the investor-owned utility in its most recent commission basis report. All costs included in the determination of cost impact must be directly attributable to actions necessary to comply with the requirements of RCW 19.405.040 and 19.405.050.
2. If an investor-owned utility relies on (a) of this subsection as a basis for compliance with the standard under RCW 19.405.040(1), then it must demonstrate that it has maximized investments in renewable resources and nonemitting electric generation prior to using alternative compliance options allowed under RCW 19.405.040(1)(b).
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1. A consumer-owned utility must be considered to be in compliance with the standards under RCW 19.405.040(1) and 19.405.050(1) if, over the four-year compliance period, the average annual incremental cost of meeting the standards or the interim targets established under subsection (2) of this section meets or exceeds a two percent increase of the consumer-owned utility's retail revenue requirement above the previous year. All costs included in the determination of cost impact must be directly attributable to actions necessary to comply with the requirements of RCW 19.405.040 and 19.405.050.
2. If a consumer-owned utility relies on (a) of this subsection as a basis for compliance with the standard under RCW 19.405.040(1), and it has not met eighty percent of its annual retail electric load using electricity from renewable resources and nonemitting electric generation, then it must demonstrate that it has maximized investments in renewable resources and nonemitting electric generation prior to using alternative compliance options allowed under RCW 19.405.040(1)(b).
The commission, for investor-owned utilities, and the department, for consumer-owned utilities, must adopt rules establishing the methodology for calculating the incremental cost of compliance under this section, as compared to the cost of an alternative lowest reasonable cost portfolio of investments that are reasonably available.
The commission may require a large combination utility as defined in RCW 80.86.010 to incorporate the requirements of this section into an integrated system plan established under RCW 80.86.020.
Each investor-owned utility with more than 25,000 customers and each consumer-owned utility with more than 25,000 customers must establish annual targets for the retail sale of electricity from sources and demand programs identified in subsection (8) of this section that initiate operations after August 1, 2025.
1. In establishing targets under this subsection, the utility must identify annual targets that are a percentage of its clean energy targets set under subsection (1) or (2) of this section to be met through sources and demand programs identified in subsection (8) of this section that are located in Washington.
2. At a minimum, each utility subject to the requirements of this subsection must establish a target under this subsection of at least 10 percent of its clean energy target under subsection (1) or (2) of this section for the retail sale of electricity from sources and demand programs identified in subsection (8) of this section that initiate operations after August 1, 2025, by the end of the utility's second four-year clean energy implementation plan under this section.
3. To the extent practicable, in meeting the requirements of this subsection, each utility subject to the requirements of this subsection must prioritize projects and activities that reduce the energy burden for low-income customers and highly impacted communities.
The targets in subsection (7) of this section may be met through the use of electricity from the following demand programs and sources, or the acquisition of equivalent renewable energy credits associated with electricity generated from the following sources, located in Washington:
1. Distributed energy priorities identified in section 2 of this act; or
2. Community solar projects as defined in RCW 80.28.370.
Each utility required to establish targets under subsection (7) of this section must achieve those targets.

Section 20 ¶

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1. An electric utility or an affected market customer that fails to meet the standards established under RCW 19.405.030(1) , 19.405.040(1), and 19.405.060(7) must pay an administrative penalty to the state of Washington in the amount of one hundred dollars, times the following multipliers, for each megawatt-hour of electric generation used to meet load that is not electricity from a renewable resource , nonemitting electric generation, or source specified in RCW 19.405.060(8):
  1. 1.5 for coal-fired resources;
  2. 0.84 for gas-fired peaking power plants;
  3. 0.60 for gas-fired combined-cycle power plants; and
  4. 0.60 for electricity used to meet a target under RCW 19.405.060(7) that does not come from a source specified in RCW 19.405.060(8).
2. Beginning in 2027, this penalty must be adjusted on a biennial basis according to the rate of change of the inflation indicator, gross domestic product implicit price deflator, as published by the bureau of economic analysis of the United States department of commerce or its successor. Beginning in 2040, the commission may by rule increase this penalty for investor-owned utilities if the commission determines that doing so will accelerate utilities' compliance with the standards established under this chapter and that doing so is in the public interest.
Consistent with the requirements of RCW 19.405.040(1)(b), a utility may opt to make a payment in the amount of the administrative penalty as an alternative compliance payment, without incurring a penalty for noncompliance.
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1. Upon its own motion or at the request of an investor-owned utility, and after a hearing, the commission may issue an order relieving the utility of its administrative penalty obligation under subsection (1) of this section if it finds that:
  1. After taking all reasonable measures, the investor-owned utility's compliance with this chapter is likely to result in conflicts with or compromises to its obligation to comply with the mandatory and enforceable reliability standards of the North American electric reliability corporation, violate prudent utility practice for assuring resource adequacy, or compromise the power quality or integrity of its system; or
  2. The investor-owned utility is unable to comply with the standards established in RCW 19.405.030(1) or 19.405.040(1) due to reasons beyond the reasonable control of the investor-owned utility, as set forth in subsection (6) of this section.
2. If the commission issues an order pursuant to (a) of this subsection that relieves an investor-owned utility of its administrative penalty obligation under subsection (1) of this section, the commission may issue an order:
  1. Temporarily exempting the investor-owned utility from the requirements of RCW 19.405.040(1) for an amount of time sufficient to allow the investor-owned utility to achieve full compliance with the standard;
  2. Directing the investor-owned utility to file a progress report to the commission on achieving full compliance with the standard within six months after issuing the order, or within an amount of time determined to be reasonable by the commission; and
  3. Directing the investor-owned utility to take specific actions to achieve full compliance with the requirements of this chapter.
3. An investor-owned utility may request an extension of a temporary exemption granted under this section. An investor-owned utility that requests an extension must request an update to the order issued by the commission under (b) of this subsection.
Subsection (3) of this section does not permanently relieve an investor-owned utility of its obligation to comply with the requirements of this chapter.
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1. The governing body of a consumer-owned utility may authorize a temporary exemption from the standard established under RCW 19.405.040(1), for an amount of time sufficient to allow the consumer-owned utility to achieve full compliance with the standard, if the governing body finds that:
  1. The consumer-owned utility's compliance with the standard is likely to: Result in conflicts with or compromises to its obligation to comply with the mandatory and enforceable reliability standards of the North American electric reliability corporation; violate prudent utility practice for assuring resource adequacy; or compromise the power quality or integrity of its system; or
  2. The consumer-owned utility is unable to comply with the standard due to reasons beyond the reasonable control of the utility, as set forth in subsection (6) of this section; and
  3. The consumer-owned utility has provided to the department a plan demonstrating how it plans to achieve full compliance with the standard, consistent with the findings of the report submitted to the legislature under RCW 19.405.080.
2. Upon request by the governing body of a consumer-owned utility, a consumer-owned utility must be relieved of its administrative penalty obligation under subsection (1) of this section if the auditor issues a finding that:
  1. The governing body of the consumer-owned utility has properly issued a temporary exemption under (a) of this subsection for a period of time not to exceed six months; and
  2. The governing body of the consumer-owned utility has submitted to the department a plan to take specific actions to achieve full compliance with the standard, consistent with the findings of the report submitted to the legislature under RCW 19.405.080.
3. Upon issuance of a finding by the auditor, the consumer-owned utility must submit a progress report to the department on achieving full compliance with the standard within the term authorized in the temporary exemption.
4. A consumer-owned utility may request an extension of a temporary exemption granted under this subsection, subject to the same requirements as provided in (a) through (c) of this subsection.
5. The attorney general may bring a civil action in the name of the state for any appropriate civil remedy including, but not limited to, injunctive relief, penalties, costs, and attorneys' fees, to enforce compliance with this chapter:
  1. Upon the failure of the governing body of a consumer-owned utility to comply with the conditions of a temporary exemption found by the auditor to be properly adopted or extended; or
  2. Upon failure of the governing body of a consumer-owned utility to comply with a finding by the auditor that a temporary exemption is not properly granted.
6. This subsection does not permanently relieve a consumer-owned utility of its obligation to comply with the requirements of this chapter.
To the extent an event or circumstance cannot be reasonably foreseen and ameliorated, such events or circumstances beyond the reasonable control of an electric utility may include but are not limited to:
1. Weather-related damage;
2. Natural disasters;
3. Mechanical or resource failure;
4. Failure of a third party to meet contractual obligations to the electric utility;
5. Actions of governmental authorities that adversely affect the generation, transmission, or distribution of nonemitting electric generation or renewable resources owned or under contract to an electric utility, including condemnation actions by municipal electric utilities, public utility districts, or irrigation districts that adversely affect an investor-owned utility's ability to meet the standard established in RCW 19.405.030(1) and 19.405.040(1);
6. Inability to acquire sufficient transmission to transmit electricity from nonemitting electric generation or renewable resources to load; and
7. Substantial limitations, restrictions, or prohibitions on nonemitting electric generation or renewable resources.
An electric utility must notify its retail electric customers in published form within three months of paying the administrative penalty established under subsection (1) of this section. An electric utility is not required to notify its retail electric customers when making a payment in the amount of the administrative penalty as an alternative compliance payment consistent with the requirements of RCW 19.405.040(1)(b).
Moneys collected under this section must be deposited into the low-income weatherization and structural rehabilitation assistance account created in RCW 70A.35.030.
For an investor-owned utility, the commission must determine compliance with the requirements of this chapter.
For consumer-owned utilities, the auditor is responsible for auditing compliance with this chapter and rules adopted under this chapter that apply to those utilities and the attorney general is responsible for enforcing that compliance.
If the report submitted under RCW 19.405.080 demonstrates adverse system reliability impacts from the implementation of RCW 19.405.040 and 19.405.050, the governor, consistent with the emergency powers under RCW 43.21G.040, may suspend or delay implementation of this chapter, or exempt an electric utility from paying the administrative penalty under this section, until system reliability impacts can be addressed. Adverse system reliability impacts may include, but are not limited to, the inability of electric utilities or transmission operators to meet reliability standards mandated by federal or state law and required by prudent utility practices.
Notwithstanding RCW 54.16.020, the fair market value compensation for an asset that is condemned by a municipal electric utility, public utility district, or irrigation district and that is either demonstrated in an electric utility's clean energy action plan or clean energy implementation plan to be used or acquired after May 7, 2019, to meet the requirements of RCW 19.405.040 and 19.405.050, or an asset that generates electricity from renewable resources or nonemitting electric generation, must include but not be limited to a replacement value approach. Additionally, the electric utility may seek, and the court may award, damages attributable to the severance, separation, replacement, or relocation of utility assets. The trier of fact may also consider other damages, as well as offsetting benefits, that it finds just and equitable.
An entity that establishes or extends service to the premises of a customer who is being served by an electric utility or was served by an electric utility prior to May 7, 2019, must serve those premises in a manner that complies with the requirements of this chapter and with chapter 19.285 RCW, if applicable. An electric utility or other entity that fails to comply with the requirements of this subsection must pay the administrative penalty under subsection (1) of this section for each megawatt-hour of electric generation used to serve load that does not meet the terms of this subsection.

Section 21 ¶

Each electric utility must develop a plan consistent with this section.

Utilities with more than 25,000 customers that are not full requirements customers must develop or update an integrated resource plan by September 1, 2008. At a minimum, progress reports reflecting changing conditions and the progress of the integrated resource plan must be produced every two years thereafter. An updated integrated resource plan must be developed at least every four years subsequent to the 2008 integrated resource plan. The integrated resource plan, at a minimum, must include:
1. A range of forecasts, for at least the next 10 years or longer, of projected customer demand which takes into account econometric data and customer usage;
2. An assessment of commercially available conservation and efficiency resources, as informed, as applicable, by the assessment for conservation potential under RCW 19.285.040 for the planning horizon consistent with (a) of this subsection. Such assessment may include, as appropriate, opportunities for development of combined heat and power as an energy and capacity resource, demand response and load management programs, and currently employed and new policies and programs needed to obtain the conservation and efficiency resources;
3. An assessment of commercially available, utility scale renewable and nonrenewable generating technologies including a comparison of the benefits and risks of purchasing power or building new resources;
4. A comparative evaluation of renewable and nonrenewable generating resources, including transmission and distribution delivery costs, and conservation and efficiency resources using "lowest reasonable cost" as a criterion;
5. An assessment of methods, commercially available technologies, or facilities for integrating renewable resources, including but not limited to battery storage and pumped storage, and addressing overgeneration events, if applicable to the utility's resource portfolio;
6. An assessment and 20-year forecast of the availability of and requirements for regional generation and transmission capacity to provide and deliver electricity to the utility's customers and to meet the requirements of chapter 19.405 RCW and the state's greenhouse gas emissions reduction limits in RCW 70A.45.020. The transmission assessment must identify the utility's expected needs to acquire new long-term firm rights, develop new, or expand or upgrade existing, bulk transmission facilities consistent with the requirements of this section and reliability standards;
  1. If an electric utility operates transmission assets rated at 115,000 volts or greater, the transmission assessment must take into account opportunities to make more effective use of existing transmission capacity through improved transmission system operating practices, energy efficiency, demand response, grid modernization, nonwires solutions, and other programs if applicable;
  2. An electric utility that relies entirely or primarily on a contract for transmission service to provide necessary transmission services may comply with the transmission requirements of this subsection by requesting that the counterparty to the transmission service contract include the provisions of chapters 19.405 and 70A.45 RCW as public policy mandates in the transmission service provider's process for assessing transmission need, and planning and acquiring necessary transmission capacity;
  3. An electric utility may comply with the requirements of this subsection (1)(f) by relying on and incorporating the results of a separate transmission assessment process, conducted individually or jointly with other utilities and transmission system users, if that assessment process meets the requirements of this subsection;
7. A determination of resource adequacy metrics for the resource plan consistent with the forecasts;
8. A forecast of distributed energy resources that may be installed by the utility's customers and an assessment of their effect on the utility's load and operations;
  1. An identification of an appropriate resource adequacy requirement and measurement metric consistent with prudent utility practice in implementing RCW 19.405.030 through 19.405.050;
9. The integration of the demand forecasts, resource evaluations, and resource adequacy requirement into a long‑range assessment describing the mix of supply side generating resources and conservation and efficiency resources that will meet current and projected needs, including mitigating overgeneration events and implementing RCW 19.405.030 through 19.405.050 and 19.405.060(7), at the lowest reasonable cost and risk to the utility and its customers, while maintaining and protecting the safety, reliable operation, and balancing of its electric system;
10. An assessment, informed by the cumulative impact analysis conducted under RCW 19.405.140, of: Energy and nonenergy benefits and the avoidance and reductions of burdens to vulnerable populations and highly impacted communities; long-term and short-term public health and environmental benefits, costs, and risks; and energy security and risk;
11. A 10-year clean energy action plan for implementing RCW 19.405.030 through 19.405.050 and 19.405.060(7) at the lowest reasonable cost, and at an acceptable resource adequacy standard, that identifies the specific actions to be taken by the utility consistent with the long‑range integrated resource plan; and
12. An analysis of how the plan accounts for:
  1. Modeled load forecast scenarios that consider the anticipated levels of zero emissions vehicle use in a utility's service area, including anticipated levels of zero emissions vehicle use in the utility's service area provided in RCW 47.01.520, if feasible;
  2. Analysis, research, findings, recommendations, actions, and any other relevant information found in the electrification of transportation plans submitted under RCW 35.92.450, 54.16.430, and 80.28.365; and
  3. Assumed use case forecasts and the associated energy impacts. Electric utilities may, but are not required to, use the forecasts generated by the mapping and forecasting tool created in RCW 47.01.520. This subsection (1)(m)(iii) applies only to plans due to be filed after September 1, 2023.
The clean energy action plan must:
1. Identify and be informed by the utility's 10-year cost-effective conservation potential assessment as determined under RCW 19.285.040, if applicable;
2. Establish a resource adequacy requirement;
3. Identify the potential cost-effective demand response and load management programs that may be acquired;
4. Identify renewable resources, nonemitting electric generation, and distributed energy resources that may be acquired and evaluate how each identified resource may be expected to contribute to meeting the utility's resource adequacy requirement;
5. Identify any need to develop new, or expand or upgrade existing, bulk transmission and distribution facilities and document existing and planned efforts by the utility to make more effective use of existing transmission capacity and secure additional transmission capacity consistent with the requirements of subsection (1)(f) of this section; and
6. Identify the nature and possible extent to which the utility may need to rely on alternative compliance options under RCW 19.405.040(1)(b), if appropriate.
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1. An electric or large combination utility shall consider the social cost of greenhouse gas emissions, as determined by the commission for investor-owned utilities pursuant to RCW 80.28.405 and the department for consumer-owned utilities, when developing integrated resource plans and clean energy action plans. An electric utility must incorporate the social cost of greenhouse gas emissions as a cost adder when:
  1. Evaluating and selecting conservation policies, programs, and targets;
  2. Developing integrated resource plans and clean energy action plans; and
  3. Evaluating and selecting intermediate term and long-term resource options.
2. For the purposes of this subsection (3): (i) Gas consisting largely of methane and other hydrocarbons derived from the decomposition of organic material in landfills, wastewater treatment facilities, and anaerobic digesters must be considered a nonemitting resource; and (ii) qualified biomass energy must be considered a nonemitting resource.
To facilitate broad, equitable, and efficient implementation of chapter 19.405 RCW, a consumer-owned energy utility may enter into an agreement with a joint operating agency organized under chapter 43.52 RCW or other nonprofit organization to develop and implement a joint clean energy action plan in collaboration with other utilities.
All other utilities may elect to develop a full integrated resource plan as set forth in subsection (1) of this section or, at a minimum, shall develop a resource plan that:
1. Estimates loads for the next five and 10 years;
2. Enumerates the resources that will be maintained and/or acquired to serve those loads;
3. Explains why the resources in (b) of this subsection were chosen and, if the resources chosen are not: (i) Renewable resources; (ii) methods, commercially available technologies, or facilities for integrating renewable resources, including addressing any overgeneration event; or (iii) conservation and efficiency resources, why such a decision was made;
4. By December 31, 2020, and in every resource plan thereafter, identifies how the utility plans over a 10-year period to implement RCW 19.405.040 , 19.405.050, and 19.405.060(7); and
5. Accounts for:
  1. Modeled load forecast scenarios that consider the anticipated levels of zero emissions vehicle use in a utility's service area, including anticipated levels of zero emissions vehicle use in the utility's service area provided in RCW 47.01.520, if feasible;
  2. Analysis, research, findings, recommendations, actions, and any other relevant information found in the electrification of transportation plans submitted under RCW 35.92.450, 54.16.430, and 80.28.365; and
  3. Assumed use case forecasts and the associated energy impacts. Electric utilities may, but are not required to, use the forecasts generated by the mapping and forecasting tool created in RCW 47.01.520. This subsection (5)(e)(iii) applies only to plans due to be filed after September 1, 2023.
Assessments for demand-side resources included in an integrated resource plan may include combined heat and power systems as one of the measures in a conservation supply curve. The value of recoverable waste heat resulting from combined heat and power must be reflected in analyses of cost-effectiveness under this subsection.
An electric utility that is required to develop a resource plan under this section must complete its initial plan by September 1, 2008.
Plans developed under this section must be updated on a regular basis, on intervals approved by the commission or the department, or at a minimum on intervals of two years.
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1. Plans shall not be a basis to bring legal action against electric utilities. However, nothing in this subsection (9)(a) may be construed as limiting the commission or any party from bringing any action pursuant to Title 80 RCW, this chapter, or chapter 19.405 RCW against any large combination utility related to an integrated system plan submitted pursuant to RCW 80.86.020.
2. The commission may approve, reject, or approve with conditions, any integrated system plans submitted by a large combination utility as defined in RCW 80.86.010.
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1. To maximize transparency, the commission, for investor-owned utilities, or the governing body, for consumer-owned utilities, may require an electric utility to make the utility's data input files available in a native format. Each electric utility shall publish its final plan either as part of an annual report or as a separate document available to the public. The report may be in an electronic form.
2. Nothing in this subsection limits the protection of records containing commercial information under RCW 80.04.095.
The commission may require a large combination utility as defined in RCW 80.86.010 to incorporate the requirements of this section into an integrated system plan established under RCW 80.86.020.

Section 22 ¶

All leasehold interests in publicly owned, or specified privately owned, real or personal property, are exempt from tax under this chapter, for the duration of the lease, for the portion of the property used for the placement of distributed energy priorities identified in section 2 of this act or energy storage, and the distributed energy priority or energy storage lease was entered into after the effective date of this section.

Section 23 ¶

The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.

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1. "Open space land" means : (i) Any land area so designated by an official comprehensive land use plan adopted by any city or county and zoned accordingly; or (ii) any land area, the preservation of which in its present use would (A) conserve and enhance natural or scenic resources, or (B) protect streams or water supply, or (C) promote conservation of soils, wetlands, beaches or tidal marshes, or (D) enhance the value to the public of abutting or neighboring parks, forests, wildlife preserves, nature reservations or sanctuaries or other open space, or (E) enhance recreation opportunities, or (F) preserve historic sites, or (G) preserve visual quality along highway, road, and street corridors or scenic vistas, or (H) retain in its natural state tracts of land not less than one acre situated in an urban area and open to public use on such conditions as may be reasonably required by the legislative body granting the open space classification; or (iii) any land meeting the definition of farm and agricultural conservation land under subsection (8) of this section. As a condition of granting open space classification, the legislative body may not require public access on land classified under (a)(ii)(C) of this subsection for the purpose of promoting conservation of wetlands.
2. "Open space land" includes land on which an agrivoltaic facility is located.
"Farm and agricultural land" means:
1. Any parcel of land that is 20 or more acres or multiple parcels of land that are contiguous and total 20 or more acres:
  1. Devoted primarily to the production of livestock or agricultural commodities for commercial purposes;
  2. Enrolled in the federal conservation reserve program or its successor administered by the United States department of agriculture; or
  3. Other similar commercial activities as may be established by rule;
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  1. Any parcel of land that is five acres or more but less than 20 acres devoted primarily to agricultural uses, which has produced a gross income from agricultural uses equivalent to, as of January 1, 1993:

(A) $100 or more per acre per year for three of the five calendar years preceding the date of application for classification under this chapter for all parcels of land that are classified under this subsection or all parcels of land for which an application for classification under this subsection is made with the granting authority prior to January 1, 1993; and

(B) On or after January 1, 1993, $200 or more per acre per year for three of the five calendar years preceding the date of application for classification under this chapter;

    ii. For the purposes of (b)(i) of this subsection, "gross income from agricultural uses" includes, but is not limited to, the wholesale value of agricultural products donated to nonprofit food banks or feeding programs;

c. Any parcel of land of less than five acres devoted primarily to agricultural uses which has produced a gross income as of January 1, 1993, of:

    i. $1,000 or more per year for three of the five calendar years preceding the date of application for classification under this chapter for all parcels of land that are classified under this subsection or all parcels of land for which an application for classification under this subsection is made with the granting authority prior to January 1, 1993; and

    ii. On or after January 1, 1993, $1,500 or more per year for three of the five calendar years preceding the date of application for classification under this chapter. Parcels of land described in (b)(i)(A) and (c)(i) of this subsection will, upon any transfer of the property excluding a transfer to a surviving spouse or surviving state registered domestic partner, be subject to the limits of (b)(i)(B) and (c)(ii) of this subsection;

d. Any parcel of land that is five acres or more but less than 20 acres devoted primarily to agricultural uses, which meet one of the following criteria:

    i. Has produced a gross income from agricultural uses equivalent to two hundred dollars or more per acre per year for three of the five calendar years preceding the date of application for classification under this chapter;

    ii. Has standing crops with an expectation of harvest within seven years, except as provided in (d)(iii) of this subsection, and a demonstrable investment in the production of those crops equivalent to one hundred dollars or more per acre in the current or previous calendar year. For the purposes of this subsection (2)(d)(ii), "standing crop" means Christmas trees, vineyards, fruit trees, or other perennial crops that: (A) Are planted using agricultural methods normally used in the commercial production of that particular crop; and (B) typically do not produce harvestable quantities in the initial years after planting; or

    iii. Has a standing crop of short rotation hardwoods with an expectation of harvest within 15 years and a demonstrable investment in the production of those crops equivalent to $100 or more per acre in the current or previous calendar year;

e. Any lands including incidental uses as are compatible with agricultural purposes, including wetlands preservation, provided such incidental use does not exceed 20 percent of the classified land and the land on which appurtenances necessary to the production, preparation, or sale of the agricultural products exist in conjunction with the lands producing such products. Agricultural lands also include any parcel of land of one to five acres, which is not contiguous, but which otherwise constitutes an integral part of farming operations being conducted on land qualifying under this section as "farm and agricultural lands";

f. The land on which housing for employees and the principal place of residence of the farm operator or owner of land classified pursuant to (a) of this subsection is sited if: The housing or residence is on or contiguous to the classified parcel; and the use of the housing or the residence is integral to the use of the classified land for agricultural purposes;

g. Any land that is used primarily for equestrian related activities for which a charge is made, including, but not limited to, stabling, training, riding, clinics, schooling, shows, or grazing for feed and that otherwise meet the requirements of (a), (b), or (c) of this subsection;

h. Any land primarily used for commercial horticultural purposes, including growing seedlings, trees, shrubs, vines, fruits, vegetables, flowers, herbs, and other plants in containers, whether under a structure or not, subject to the following:

    i. The land is not primarily used for the storage, care, or selling of plants purchased from other growers for retail sale;

    ii. If the land is less than five acres and used primarily to grow plants in containers, such land does not qualify as "farm and agricultural land" if more than 25 percent of the land used primarily to grow plants in containers is open to the general public for on-site retail sales;

    iii. If more than 20 percent of the land used for growing plants in containers qualifying under this subsection (2)(h) is covered by pavement, none of the paved area is eligible for classification as "farm and agricultural land" under this subsection (2)(h). The eligibility limitations described in this subsection (2)(h)(iii) do not affect the land's eligibility to qualify under (e) of this subsection; and

    iv. If the land classified under this subsection (2)(h), in addition to any contiguous land classified under this subsection, is less than 20 acres, it must meet the applicable income or investment requirements in (b), (c), or (d) of this subsection; or

    i. Lands identified in (a) through (h) of this subsection on which an agrivoltaic facility is located.

"Timberland" means any parcel of land that is five or more acres or multiple parcels of land that are contiguous and total five or more acres which is or are devoted primarily to the growth and harvest of timber for commercial purposes. Timberland means the land only and does not include a residential homesite. The term includes land used for incidental uses that are compatible with the growing and harvesting of timber but no more than 10 percent of the land may be used for such incidental uses. It also includes the land on which appurtenances necessary for the production, preparation, or sale of the timber products exist in conjunction with land producing these products.
"Current" or "currently" means as of the date on which property is to be listed and valued by the assessor.
"Owner" means the party or parties having the fee interest in land, except that where land is subject to real estate contract "owner" means the contract vendee.
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1. "Contiguous" means land adjoining and touching other property held by the same ownership. Land divided by a public road, but otherwise an integral part of a farming operation, is considered contiguous.
2. For purposes of this subsection (6):
  1. "Same ownership" means owned by the same person or persons, except that parcels owned by different persons are deemed held by the same ownership if the parcels are:

(A) Managed as part of a single operation; and

(B) Owned by:

(I) Members of the same family;

(II) Legal entities that are wholly owned by members of the same family; or

(III) An individual who owns at least one of the parcels and a legal entity or entities that own the other parcel or parcels if the entity or entities are wholly owned by that individual, members of his or her family, or that individual and members of his or her family.

    ii. "Family" includes only:

(A) An individual and his or her spouse or domestic partner, child, stepchild, adopted child, grandchild, parent, stepparent, grandparent, cousin, or sibling;

(B) The spouse or domestic partner of an individual's child, stepchild, adopted child, grandchild, parent, stepparent, grandparent, cousin, or sibling;

(C) A child, stepchild, adopted child, grandchild, parent, stepparent, grandparent, cousin, or sibling of the individual's spouse or the individual's domestic partner; and

(D) The spouse or domestic partner of any individual described in (b)(ii)(C) of this subsection (6).

"Granting authority" means the appropriate agency or official who acts on an application for classification of land pursuant to this chapter.
"Farm and agricultural conservation land" means either:
1. Land that was previously classified under subsection (2) of this section, that no longer meets the criteria of subsection (2) of this section, and that is reclassified under subsection (1) of this section; or
2. Land that is traditional farmland that is not classified under chapter 84.33 or 84.34 RCW, that has not been irrevocably devoted to a use inconsistent with agricultural uses, and that has a high potential for returning to commercial agriculture.
"Agrivoltaic facility" has the same meaning as described in section 2 of this act.

Section 24 ¶

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1. When land has once been classified under this chapter, it must remain under such classification and must not be applied to other use except as provided by subsection (2) of this section for at least ten years from the date of classification. It must continue under such classification until and unless withdrawn from classification after notice of request for withdrawal is made by the owner. After the initial 10-year classification period has elapsed, notice of request for withdrawal of all or a portion of the land may be given by the owner to the assessor or assessors of the county or counties in which the land is situated. If a portion of a parcel is removed from classification, the remaining portion must meet the same requirements as did the entire parcel when the land was originally granted classification under this chapter unless the remaining parcel has different income criteria. Within seven days the assessor must transmit one copy of the notice to the legislative body that originally approved the application. The assessor or assessors, as the case may be, must withdraw the land from the classification and the land is subject to the additional tax and applicable interest due under RCW 84.34.108. Agreement to tax according to use is not considered to be a contract and can be abrogated at any time by the legislature in which event no additional tax or penalty may be imposed.
2. If the assessor gives written notice of removal as provided in RCW 84.34.108(1)(d)(i) of all or a portion of land classified under this chapter before the owner gives a notice of request for withdrawal in (a) of this subsection, the provisions of RCW 84.34.108 apply.
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1. The following reclassifications are not considered withdrawals or removals and are not subject to additional tax under RCW 84.34.108:
  1. Reclassification between lands under RCW 84.34.020 (2) and (3);
  2. Reclassification of land classified under RCW 84.34.020 (2) or (3) or designated under chapter 84.33 RCW to open space land under RCW 84.34.020(1);
  3. Reclassification of land classified under RCW 84.34.020 (2) or (3) to forestland designated under chapter 84.33 RCW; and
  4. Reclassification of land classified as open space land under RCW 84.34.020(1)(a)(iii) and reclassified to farm and agricultural land under RCW 84.34.020(2) if the land had been previously classified as farm and agricultural land under RCW 84.34.020(2).
2. Designation as forestland under RCW 84.33.130(1) as a result of a merger adopted under RCW 84.34.400 is not considered a withdrawal or removal and is not subject to additional tax under RCW 84.34.108.
Applications for reclassification are subject to applicable provisions of RCW 84.34.037, 84.34.035, 84.34.041, and chapter 84.33 RCW.
The income criteria for land classified under RCW 84.34.020(2) (b) and (c) may be deferred for land being reclassified from land classified under RCW 84.34.020 (1)(a)(iii) or (3), or chapter 84.33 RCW into RCW 84.34.020(2) (b) or (c) for a period of up to five years from the date of reclassification.
The addition of an agrivoltaic facility does not constitute a reclassification for purposes of this chapter and is not considered a withdrawal or removal subject to additional tax under RCW 84.34.108.

Section 25 ¶

A county or a city may use a variety of innovative zoning techniques in areas designated as agricultural lands of long-term commercial significance under RCW 36.70A.170. The innovative zoning techniques should be designed to conserve agricultural lands and encourage the agricultural economy. Except as provided in subsection (3) of this section, a county or city should encourage nonagricultural uses to be limited to lands with poor soils or otherwise not suitable for agricultural purposes.
Innovative zoning techniques a county or city may consider include, but are not limited to:
1. Agricultural zoning, which limits the density of development and restricts or prohibits nonfarm uses of agricultural land and may allow accessory uses, including nonagricultural accessory uses and activities, that support, promote, or sustain agricultural operations and production, as provided in subsection (3) of this section;
2. Cluster zoning, which allows new development on one portion of the land, leaving the remainder in agricultural or open space uses;
3. Large lot zoning, which establishes as a minimum lot size the amount of land necessary to achieve a successful farming practice;
4. Quarter/quarter zoning, which permits one residential dwelling on a one-acre minimum lot for each one-sixteenth of a section of land; and
5. Sliding scale zoning, which allows the number of lots for single-family residential purposes with a minimum lot size of one acre to increase inversely as the size of the total acreage increases.
Accessory uses allowed under subsection (2)(a) of this section shall comply with the following:
1. Accessory uses shall be located, designed, and operated so as to not interfere with, and to support the continuation of, the overall agricultural use of the property and neighboring properties, and shall comply with the requirements of this chapter;
2. Accessory uses may include:
  1. Agricultural accessory uses and activities, including but not limited to the storage, distribution, and marketing of regional agricultural products from one or more producers, agriculturally related experiences, or the production, marketing, and distribution of value-added agricultural products, including support services that facilitate these activities;
  2. Nonagricultural accessory uses and activities as long as they are consistent with the size, scale, and intensity of the existing agricultural use of the property and the existing buildings on the site. Nonagricultural accessory uses and activities, including new buildings, parking, or supportive uses, shall not be located outside the general area already developed for buildings and residential uses and shall not otherwise convert more than one acre of agricultural land to nonagricultural uses; and
  3. Agrivoltaic facilities, as described in section 2 of this act, and other developments that place solar panels in agricultural lands of long-term commercial significance under RCW 36.70A.170 in a manner that does not meet the description of agrivoltaic facilities in section 2 of this act, but that meets the standards established under (b)(i) or (ii) of this subsection; and
3. Except for agrivoltaic facilities, counties and cities have the authority to limit or exclude accessory uses otherwise authorized in this subsection (3) in areas designated as agricultural lands of long-term commercial significance.
This section shall not be interpreted to limit agricultural production on designated agricultural lands.

Section 26 ¶

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1. Each county that is required or chooses to plan under RCW 36.70A.040, and each city within such county, shall adopt development regulations on or before September 1, 1991, to assure the conservation of agricultural, forest, and mineral resource lands designated under RCW 36.70A.170. Regulations adopted under this subsection may not prohibit uses legally existing on any parcel prior to their adoption and shall remain in effect until the county or city adopts development regulations pursuant to RCW 36.70A.040. Such regulations shall assure that the use of lands adjacent to agricultural, forest, or mineral resource lands shall not interfere with the continued use, in the accustomed manner and in accordance with best management practices, of these designated lands for the production of food, agricultural products, or timber, or for the extraction of minerals. As of the effective date of this section, agrivoltaic facilities, as described in section 2 of this act, are determined not to interfere with the continued use, in the accustomed manner and in accordance with best management practices, of designated agricultural resources lands for the production of food and agricultural products, and county regulations adopted under this section must be revised to be consistent with this determination. Any county located to the west of the crest of the Cascade mountains that has both a population of at least four hundred thousand and a border that touches another state, and any city in such county, may adopt development regulations to assure that agriculture, forest, and mineral resource lands adjacent to short line railroads may be developed for freight rail dependent uses.
2. Counties and cities shall require that all plats, short plats, development permits, and building permits issued for development activities on, or within five hundred feet of, lands designated as agricultural lands, forestlands, or mineral resource lands, contain a notice that the subject property is within or near designated agricultural lands, forestlands, or mineral resource lands on which a variety of commercial activities may occur that are not compatible with residential development for certain periods of limited duration. The notice for mineral resource lands shall also inform that an application might be made for mining-related activities, including mining, extraction, washing, crushing, stockpiling, blasting, transporting, and recycling of minerals.
3. Each county that adopts a resolution of partial planning under RCW 36.70A.040(2)(b), and each city within such county, shall adopt development regulations within one year after the adoption of the resolution of partial planning to assure the conservation of agricultural, forest, and mineral resource lands designated under RCW 36.70A.170. Regulations adopted under this subsection (1)(c) must comply with the requirements governing regulations adopted under (a) of this subsection.
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  1. A county that adopts a resolution of partial planning under RCW 36.70A.040(2)(b) and that is not in compliance with the planning requirements of this section, RCW 36.70A.040(4), 36.70A.070(5), 36.70A.170, and 36.70A.172 at the time the resolution is adopted must, by January 30, 2017, apply for a determination of compliance from the department finding that the county's development regulations, including development regulations adopted to protect critical areas, and comprehensive plans are in compliance with the requirements of this section, RCW 36.70A.040(4), 36.70A.070(5), 36.70A.170, and 36.70A.172. The department must approve or deny the application for a determination of compliance within one hundred twenty days of its receipt or by June 30, 2017, whichever date is earlier.
  2. If the department denies an application under (d)(i) of this subsection, the county and each city within is obligated to comply with all requirements of this chapter and the resolution for partial planning adopted under RCW 36.70A.040(2)(b) is no longer in effect.
  3. A petition for review of a determination of compliance under (d)(i) of this subsection may only be appealed to the growth management hearings board within 60 days of the issuance of the decision by the department.
  4. In the event of a filing of a petition in accordance with (d)(iii) of this subsection, the county and the department must equally share the costs incurred by the department for defending an approval of determination of compliance that is before the growth management hearings board.
5. The department may implement this subsection (1)(d) by adopting rules related to determinations of compliance. The rules may address, but are not limited to: The requirements for applications for a determination of compliance; charging of costs under (d)(iv) of this subsection; procedures for processing applications; criteria for the evaluation of applications; issuance and notice of department decisions; and applicable timelines.
6. Any county that borders both the Cascade mountains and another country and has a population of less than fifty thousand people, and any city in such county, may adopt development regulations to assure that agriculture, forest, and mineral resource lands adjacent to short line railroads may be developed for freight rail dependent uses.
Each county and city shall adopt development regulations that protect critical areas that are required to be designated under RCW 36.70A.170. For counties and cities that are required or choose to plan under RCW 36.70A.040, such development regulations shall be adopted on or before September 1, 1991. For the remainder of the counties and cities, such development regulations shall be adopted on or before March 1, 1992.
Such counties and cities shall review these designations and development regulations when adopting their comprehensive plans under RCW 36.70A.040 and implementing development regulations under RCW 36.70A.120 and may alter such designations and development regulations to ensure consistency.
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1. A city with a population fewer than 25,000 may adopt the county's critical areas regulations by reference to satisfy the requirements under this section to designate and protect critical areas; provided, that the county's critical areas regulations are not subject to any outstanding administrative or judicial appeals at the time of the city's adoption. Nothing in this subsection prohibits a city from adopting its own critical areas regulations.
2. The city legislative action adopting the county regulations by reference must incorporate future amendments to the critical areas policies and development regulations of the county.
3. A city that adopts the county's critical areas regulations by reference is not required to take legislative action to review and update development regulations protecting critical areas under RCW 36.70A.130.
4. If grant funding is available for a local jurisdiction's periodic comprehensive planning updates as required in RCW 36.70A.070, and a city has adopted by reference the county's critical areas regulations as allowed in (a) through (c) of this subsection, the county in which the city is located shall be entitled to the portion of the city's grant funding that would otherwise have been utilized for updating the city's critical areas regulations. The department is authorized to determine what portion of the available grant funding the city would have received for the critical areas regulations update the county is entitled to receive.
Forestland and agricultural land located within urban growth areas shall not be designated by a county or city as forestland or agricultural land of long-term commercial significance under RCW 36.70A.170 unless the city or county has enacted a program authorizing transfer or purchase of development rights.

Section 27 ¶

If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.

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