wa-law.org > bill > 2025-26 > HB 1960 > Original Bill
All personal property used exclusively for the generation of renewable energy in a qualified renewable energy facility that becomes operational on or after January 1, 2026, or a renewable energy facility that is repowered on or after January 1, 2026, is exempt from property taxation.
All personal property used exclusively for renewable energy storage in a qualified renewable energy facility that becomes operational on or after January 1, 2026, or a renewable energy facility that is repowered on or after January 1, 2026, is exempt from property taxation.
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Each qualified renewable energy facility in this state must annually, on or before the 15th day of March, make and file with the department an annual report as to the location and nameplate capacity of the personal property exempt under this section.
The department must provide each respective county treasurer and county assessor a copy of the report filed under (a) of this subsection.
The department may adopt such rules in accordance with chapter 34.05 RCW and prescribe such forms as it deems necessary and appropriate to implement and administer this section and section 102 of this act.
For the purposes of this section and section 102 of this act, the following definitions apply:
"Personal property" has the same meaning as in RCW 84.04.080.
"Qualified renewable energy facility" means:
A renewable energy facility that becomes operational on or after January 1, 2026, or a renewable energy facility that is repowered on or after January 1, 2026, and is exempt under this section; or
A renewable energy facility that becomes operational before January 1, 2026, and is exempt under section 102 of this act.
"Renewable energy" means energy produced by a solar or wind facility with a nameplate capacity sufficient to generate at least 50 megawatts of alternating current power.
"Renewable energy storage" means a battery storage or battery energy storage system that can store renewable energy when production exceeds demand and release that energy when energy demand increases.
"Repowered" means the replacement of 30 percent or more of solar panels or wind turbines in a qualified renewable energy facility after it first becomes operational.
All personal property used exclusively for the generation of renewable energy in a qualified renewable energy facility that becomes operational before January 1, 2026, is exempt from property taxation.
All personal property used exclusively for renewable energy storage in a qualified renewable energy facility that becomes operational before January 1, 2026, is exempt from property taxation.
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The assessed value of the personal property exempted under this section must be excluded from the calculation of the property tax levy as provided in chapter 84.55 RCW pursuant to section 107 of this act for any taxing district, other than the state, where the exempt personal property is located; and
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For taxes levied for collection in calendar year 2027, the county assessor must use the most recent assessed valuation available to determine the value of any personal property exempted under this section to be removed from the assessment roll under section 107 of this act; and
On or before June 30, 2026, if any personal property has been previously assessed under chapter 84.12 RCW, the department must provide the county assessor with the apportioned assessed value from the prior year to be removed from the assessment roll under section 107 of this act.
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By March 15, 2026, and each March 15th thereafter, each qualified renewable energy facility in this state must annually make and file with the department an annual report as to the location and nameplate capacity of the personal property exempt under this section.
The department must provide each respective county treasurer and county assessor a copy of the report under (a) of this subsection.
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Beginning January 1, 2027, a renewable energy excise tax is imposed and collected on the privilege of using qualified renewable energy systems for an electric power source in the state. The rate of the tax is as follows:
i.(A) $4,000 per year per megawatt of nameplate capacity of alternating current power for a qualified renewable energy generating system that uses solar energy to generate electricity if the system became operational before January 1, 2027.
(B) $4,500 per year per megawatt of nameplate capacity of alternating current power for a qualified renewable energy generating system that uses solar energy to generate electricity if the system became operational on or after January 1, 2027, or was repowered on or after January 1, 2027.
ii.(A) $800 per year per megawatt of nameplate capacity of alternating current power for a qualified renewable energy generating system that uses wind energy to generate electricity if the system became operational on or before December 31, 2004.
(B) $2,900 per year per megawatt of nameplate capacity of alternating current power for a qualified renewable energy generating system that uses wind energy to generate electricity if the system became operational on or after January 1, 2005, and before January 1, 2020, or was repowered on or after January 1, 2005, and before January 1, 2020.
(C) $6,000 per year per megawatt of nameplate capacity of alternating current power for a qualified renewable energy generating system that uses wind energy to generate electricity if the system became operational on or after January 1, 2020, and before January 1, 2027, or was repowered on or after January 1, 2020, and before January 1, 2027.
(D) $6,300 per year per megawatt of nameplate capacity of alternating current power for a qualified renewable energy generating system that uses wind energy to generate electricity if the system became operational on or after January 1, 2027, or was repowered on or after January 1, 2027.
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i. Beginning January 1, 2027, an annual renewable energy excise tax is imposed and collected on the privilege of using a renewable energy storage system of a qualified renewable energy generating system.
ii. The rate of tax is $1,500 per megawatt hour of renewable energy storage capacity.
Beginning October 1, 2028, and every year thereafter, the renewable energy excise tax under subsection (1) of this section must be adjusted annually by the department for inflation. The annual adjustment is determined by multiplying the rates in subsection (1) of this section by the sum of one plus the percentage by which the most recent October consumer price index exceeds the consumer price index for October 2026 and rounding the result to the nearest $1. No adjustment is made for a calendar year if the adjustment would result in the same or a lesser applicable rate than the applicable rate in the immediately preceding calendar year. The new rates take effect at the beginning of the following calendar year, starting with January 1, 2029.
The taxes imposed by this chapter are in addition to any taxes imposed upon the same persons under chapter 82.04 or 82.16 RCW.
For the purposes of this section, the following definitions apply:
"Consumer price index" means the consumer price index for all urban consumers, all items, for the Seattle area as calculated by the United States bureau of labor statistics. For the purposes of this subsection, "Seattle area" means the geographic area sample that includes Seattle.
"Qualified renewable energy generating system" means a set of devices whose primary purpose is to produce electricity by means of any combination of collecting, transferring, or converting renewable energy.
"Renewable energy" means energy produced by a solar or wind facility with a nameplate capacity sufficient to generate at least 50 megawatts of alternating current power.
"Renewable energy storage capacity" means the battery storage capacity per megawatt hour.
"Renewable energy storage system" means battery storage or battery energy storage system that can store renewable energy when production exceeds demand and release energy when energy demand increases and is colocated with a qualified renewable energy generating system.
"Repowered" means the replacement of 30 percent or more of solar panels or wind turbines in a qualified renewable energy facility after it first became operational.
All revenue received by the department from the renewable energy excise tax under section 103 of this act must be distributed as follows:
The department must determine the allocation of the renewable energy excise tax to be apportioned between the state and each county. The allocation is based on the location of a qualified renewable energy generating system or renewable energy storage system taxed under section 103 of this act.
The state portion of the revenue must be deposited in the renewable energy local benefit account created in RCW 82.96.020.
The local portion of the revenue must be deposited in the local community investment account created in section 114 of this act.
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Monthly, the state treasurer must make distributions from the local community investment account to the respective county treasurer from where the renewable energy excise tax was received.
Monthly, the state treasurer must disburse earnings from the local community investment account to the respective county treasurer proportionate to the amount of the renewable energy excise tax received.
The state treasurer shall make the distribution under this subsection without appropriation.
The county treasurer shall distribute any revenues received under this section to each appropriate local taxing district in the county that reflects the pro rata share of the property tax rate in the prior tax year of the district in accordance with RCW 84.56.230, except any voter-approved excess property tax levies within a taxing district authorized after January 1, 2026.
All of the provisions contained in chapter 82.32 RCW not inconsistent with this chapter have full force and application with respect to taxes imposed under this chapter.
The department may adopt such rules in accordance with chapter 34.05 RCW, and prescribe such forms, as it deems necessary and appropriate to implement and administer this chapter.
For taxes levied for collection in calendar year 2027, each taxing district, other than the state, that receives renewable energy excise tax revenues under section 103 of this act must have its highest lawful levy under this chapter permanently reduced by the amount of revenue based on the assessed value for property exempt under section 102 of this act that would have otherwise been levied.
Except as provided in this chapter, the levy for a taxing district in any year must be set so that the regular property taxes payable in the following year do not exceed the limit factor multiplied by the amount of regular property taxes lawfully levied for such district in the highest of the three most recent years in which such taxes were levied for such district, excluding any increase due to (e) of this subsection, unless the highest levy was the statutory maximum rate amount, plus an additional dollar amount calculated by multiplying the regular property tax levy rate of that district for the preceding year by the increase in assessed value in that district resulting from:
New construction;
Increases in assessed value due to construction of biomass and geothermal facilities, if such facilities generate electricity and the property is not included elsewhere under this section for purposes of providing an additional dollar amount. The property may be classified as real or personal property;
Improvements to property;
Any increase in the assessed value of state-assessed property; and
Any increase in the assessed value of real property, as that term is defined in RCW 39.114.010, within an increment area as designated by any local government in RCW 39.114.020 provided that such increase is not included elsewhere under this section. This subsection (1)(e) does not apply to levies by the state or by port districts and public utility districts for the purpose of making required payments of principal and interest on general indebtedness.
The requirements of this section do not apply to:
State property taxes levied under RCW 84.52.065(1) for collection in calendar years 2019 through 2021; and
State property taxes levied under RCW 84.52.065(2) for collection in calendar years 2018 through 2021.
Notwithstanding the limitation set forth in RCW 84.55.010, the first levy for a taxing district created from consolidation of similar taxing districts must be set so that the regular property taxes payable in the following year do not exceed the limit factor multiplied by the sum of the amount of regular property taxes each component taxing district could have levied under RCW 84.55.092 plus the additional dollar amount calculated by multiplying the regular property tax rate of each component district for the preceding year by the increase in assessed value in each component district resulting from:
For the first levy for a taxing district following annexation of additional property, the limitation set forth in RCW 84.55.010 must be increased by an amount equal to the aggregate assessed valuation of the newly annexed property as shown by the current completed and balanced tax rolls of the county or counties within which such property lies, multiplied by the dollar rate that would have been used by the annexing unit in the absence of such annexation, plus the additional dollar amount calculated by multiplying the regular property tax levy rate of that annexing taxing district for the preceding year by the increase in assessed value in the annexing district resulting from:
New construction;
Increases in assessed value due to construction of biomass and geothermal facilities, if such facilities generate electricity and the property is not included elsewhere under this section for purposes of providing an additional dollar amount. The property may be classified as real or personal property;
Improvements to property;
Any increase in the assessed value of state-assessed property; and
Any increase in the assessed value of real property, as defined in RCW 39.114.010, within an increment area as designated by any local government in RCW 39.114.020 if the increase is not included elsewhere under this section. This subsection does not apply to levies by the state or by port districts or public utility districts for the purpose of making required payments of principal and interest on general indebtedness.
(a) Except as provided in (b) of this subsection, the regular property tax levy for each taxing district other than the state's levies may be set at the amount which would be allowed otherwise under this chapter if the regular property tax levy for the district for taxes due in prior years beginning with 1986 had been set at the full amount allowed under this chapter including any levy authorized under RCW 52.16.160 or 52.26.140(1)(c) that would have been imposed but for the limitation in RCW 52.18.065 or 52.26.240, applicable upon imposition of the benefit charge under chapter 52.18 or 52.26 RCW.
The purpose of subsection (1)(a) of this section is to remove the incentive for a taxing district to maintain its tax levy at the maximum level permitted under this chapter, and to protect the future levy capacity of a taxing district that reduces its tax levy below the level that it otherwise could impose under this chapter, by removing the adverse consequences to future levy capacities resulting from such levy reductions.
Subsection (1) of this section does not apply to any portion of a city or town's regular property tax levy that has been reduced as part of the formation of a fire protection district under RCW 52.02.160.
A taxing district, other than the state, that collects regular levies must hold a public hearing on revenue sources for the district's following year's current expense budget. The hearing must include consideration of possible increases in property tax revenues and must be held prior to the time the taxing district levies the taxes or makes the request to have the taxes levied. The county legislative authority, or the taxing district's governing body if the district is a city, town, or other type of district, must hold the hearing. For purposes of this section, "current expense budget" means that budget which is primarily funded by taxes and charges and reflects the provision of ongoing services. It does not mean the capital, enterprise, or special assessment budgets of cities, towns, counties, or special purpose districts.
If the taxing district is otherwise required to hold a public hearing on its proposed regular tax levy, a single public hearing may be held on this matter.
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Except as provided in (b) of this subsection (3), no increase in property tax revenue may be authorized by a taxing district, other than the state, except by adoption of a separate ordinance or resolution, pursuant to notice, specifically authorizing the increase in terms of both dollars and percentage. The ordinance or resolution may cover a period of up to two years, but the ordinance must specifically state for each year the dollar increase and percentage change in the levy from the previous year.
Exempt from the requirements of (a) of this subsection are increases in revenue resulting from the addition of:
New construction;
Increases in assessed value due to construction of biomass and geothermal facilities, if such facilities generate electricity and the property is not included elsewhere under this section for purposes of providing an additional dollar amount. The property may be classified as real or personal property;
Improvements to property;
Any increase in the value of state‑assessed property; and
Any increase in the assessed value of real property, as that term is defined in RCW 39.114.010, within an increment area as designated by any local government in RCW 39.114.020 provided that such increase is not included elsewhere under this section. This subsection (3)(b)(v) does not apply to levies by the state or by port districts and public utility districts for the purpose of making required payments of principal and interest on general indebtedness.
For purposes of this section:
"Disclose" means to make known to any person in any manner whatever a return or tax information;
"Return" means a tax or information return or claim for refund required by, or provided for or permitted under, the laws of this state which is filed with the department of revenue by, on behalf of, or with respect to a person, and any amendment or supplement thereto, including supporting schedules, attachments, or lists that are supplemental to, or part of, the return so filed;
"Tax information" means (i) a taxpayer's identity, (ii) the nature, source, or amount of the taxpayer's income, payments, receipts, deductions, exemptions, credits, assets, liabilities, net worth, tax liability deficiencies, overassessments, or tax payments, whether taken from the taxpayer's books and records or any other source, (iii) whether the taxpayer's return was, is being, or will be examined or subject to other investigation or processing, (iv) a part of a written determination that is not designated as a precedent and disclosed pursuant to RCW 82.32.410, or a background file document relating to a written determination, and (v) other data received by, recorded by, prepared by, furnished to, or collected by the department of revenue with respect to the determination of the existence, or possible existence, of liability, or the amount thereof, of a person under the laws of this state for a tax, penalty, interest, fine, forfeiture, or other imposition, or offense. However, data, material, or documents that do not disclose information related to a specific or identifiable taxpayer do not constitute tax information under this section. Except as provided by RCW 82.32.410, nothing in this chapter requires any person possessing data, material, or documents made confidential and privileged by this section to delete information from such data, material, or documents so as to permit its disclosure;
"State agency" means every Washington state office, department, division, bureau, board, commission, or other state agency;
"Taxpayer identity" means the taxpayer's name, address, telephone number, registration number, or any combination thereof, or any other information disclosing the identity of the taxpayer; and
"Department" means the department of revenue or its officer, agent, employee, or representative.
Returns and tax information are confidential and privileged, and except as authorized by this section, neither the department of revenue nor any other person may disclose any return or tax information.
This section does not prohibit the department of revenue from:
Disclosing such return or tax information in a civil or criminal judicial proceeding or an administrative proceeding:
In respect of any tax imposed under the laws of this state if the taxpayer or its officer or other person liable under this title or chapter 83.100 RCW is a party in the proceeding;
In which the taxpayer about whom such return or tax information is sought and another state agency are adverse parties in the proceeding; or
Brought by the department under RCW 18.27.040 or 19.28.071;
Disclosing, subject to such requirements and conditions as the director prescribes by rules adopted pursuant to chapter 34.05 RCW, such return or tax information regarding a taxpayer to such taxpayer or to such person or persons as that taxpayer may designate in a request for, or consent to, such disclosure, or to any other person, at the taxpayer's request, to the extent necessary to comply with a request for information or assistance made by the taxpayer to such other person. However, tax information not received from the taxpayer must not be so disclosed if the director determines that such disclosure would compromise any investigation or litigation by any federal, state, or local government agency in connection with the civil or criminal liability of the taxpayer or another person, or that such disclosure would identify a confidential informant, or that such disclosure is contrary to any agreement entered into by the department that provides for the reciprocal exchange of information with other government agencies which agreement requires confidentiality with respect to such information unless such information is required to be disclosed to the taxpayer by the order of any court;
Disclosing the name of a taxpayer against whom a warrant under RCW 82.32.210 has been either issued or filed and remains outstanding for a period of at least ten working days. The department is not required to disclose any information under this subsection if a taxpayer has entered a deferred payment arrangement with the department for the payment of a warrant that has not been filed and is making payments upon such deficiency that will fully satisfy the indebtedness within twelve months;
Publishing statistics so classified as to prevent the identification of particular returns or reports or items thereof;
Disclosing such return or tax information, for official purposes only, to the governor or attorney general, or to any state agency, or to any committee or subcommittee of the legislature dealing with matters of taxation, revenue, trade, commerce, the control of industry or the professions;
Permitting the department of revenue's records to be audited and examined by the proper state officer, his or her agents and employees;
Disclosing any such return or tax information to a peace officer as defined in RCW 9A.04.110 or county prosecuting attorney, for official purposes. The disclosure may be made only in response to a search warrant, subpoena, or other court order, unless the disclosure is for the purpose of criminal tax enforcement. A peace officer or county prosecuting attorney who receives the return or tax information may disclose that return or tax information only for use in the investigation and a related court proceeding, or in the court proceeding for which the return or tax information originally was sought;
Disclosing any such return or tax information to the proper officer of the internal revenue service of the United States, the Canadian government or provincial governments of Canada, or to the proper officer of the tax department of any state or city or town or county, for official purposes, but only if the statutes of the United States, Canada or its provincial governments, or of such other state or city or town or county, as the case may be, grants substantially similar privileges to the proper officers of this state;
Publishing or otherwise disclosing the text of a written determination designated by the director as a precedent pursuant to RCW 82.32.410;
Disclosing, in a manner that is not associated with other tax information, the taxpayer name, entity type, business address, mailing address, revenue tax registration numbers, reseller permit numbers and the expiration date and status of such permits, North American industry classification system or standard industrial classification code of a taxpayer, and the dates of opening and closing of business. This subsection may not be construed as giving authority to the department to give, sell, or provide access to any list of taxpayers for any commercial purpose;
Disclosing such return or tax information that is also maintained by another Washington state or local governmental agency as a public record available for inspection and copying under the provisions of chapter 42.56 RCW or is maintained by a court of record and is not otherwise prohibited from disclosure;
Disclosing such return or tax information to the United States department of agriculture for the limited purpose of investigating food stamp fraud by retailers;
Disclosing to a financial institution, escrow company, or title company, in connection with specific real property that is the subject of a real estate transaction, current amounts due the department for a filed tax warrant, judgment, or lien against the real property;
Disclosing to a person against whom the department has asserted liability as a successor under RCW 82.32.140 return or tax information pertaining to the specific business of the taxpayer to which the person has succeeded;
Disclosing real estate excise tax affidavit forms filed under RCW 82.45.150 in the possession of the department, including real estate excise tax affidavit forms for transactions exempt or otherwise not subject to tax;
Disclosing to local taxing jurisdictions the identity of sellers granted relief under RCW 82.32.430(5)(b)(i) and the period for which relief is granted;
Disclosing such return or tax information to the court in respect to the department's application for a subpoena under RCW 82.32.117;
Disclosing to a person against whom the department has asserted liability under RCW 83.100.120 return or tax information pertaining to that person's liability for tax under chapter 83.100 RCW;
Disclosing such return or tax information to the streamlined sales tax governing board, member states of the streamlined sales tax governing board, or authorized representatives of such board or states, for the limited purposes of:
Conducting on behalf of member states sales and use tax audits of taxpayers; or
Auditing certified service providers or certified automated systems providers;
Disclosing any such return or tax information when the disclosure is specifically authorized under any other section of the Revised Code of Washington;
Disclosing to an individual to whom the department has issued an assessment under RCW 82.32.145 for unpaid trust fund taxes of a defunct or insolvent entity, return or tax information of that entity pertaining to those unpaid trust fund taxes;
Disclosing any such return or tax information pursuant to a federal grand jury subpoena or subpoena issued by a United States attorney, only to be used in the criminal investigation and related court proceedings, or in the court proceeding for which the return or tax information originally was sought;
Disclosing any return or tax information to an individual when the return or tax information is related directly to that person's individual liability, as part of a marital community, for amounts due under a warrant issued under the authority of RCW 59.30.090 or 82.32.210; or
Disclosing to local taxing officials, including county assessors or treasurers, the identity and tax information of persons subject to the renewable energy excise tax under section 103 of this act associated with the tax distribution under section 104 of this act.
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The department may disclose return or taxpayer information to a person under investigation or during any court or administrative proceeding against a person under investigation as provided in this subsection (4). The disclosure must be in connection with the department's official duties relating to an audit, collection activity, or a civil or criminal investigation. The disclosure may occur only when the person under investigation and the person in possession of data, materials, or documents are parties to the return or tax information to be disclosed. The department may disclose return or tax information such as invoices, contracts, bills, statements, resale or exemption certificates, or checks. However, the department may not disclose general ledgers, sales or cash receipt journals, check registers, accounts receivable/payable ledgers, general journals, financial statements, expert's workpapers, income tax returns, state tax returns, tax return workpapers, or other similar data, materials, or documents.
Before disclosure of any tax return or tax information under this subsection (4), the department must, through written correspondence, inform the person in possession of the data, materials, or documents to be disclosed. The correspondence must clearly identify the data, materials, or documents to be disclosed. The department may not disclose any tax return or tax information under this subsection (4) until the time period allowed in (c) of this subsection has expired or until the court has ruled on any challenge brought under (c) of this subsection.
The person in possession of the data, materials, or documents to be disclosed by the department has twenty days from the receipt of the written request required under (b) of this subsection to petition the superior court of the county in which the petitioner resides for injunctive relief. The court must limit or deny the request of the department if the court determines that:
The data, materials, or documents sought for disclosure are cumulative or duplicative, or are obtainable from some other source that is more convenient, less burdensome, or less expensive;
The production of the data, materials, or documents sought would be unduly burdensome or expensive, taking into account the needs of the department, the amount in controversy, limitations on the petitioner's resources, and the importance of the issues at stake; or
The data, materials, or documents sought for disclosure contain trade secret information that, if disclosed, could harm the petitioner.
The department must reimburse reasonable expenses for the production of data, materials, or documents incurred by the person in possession of the data, materials, or documents to be disclosed.
Requesting information under (b) of this subsection that may indicate that a taxpayer is under investigation does not constitute a disclosure of tax return or tax information under this section.
Service of a subpoena issued under RCW 82.32.117 does not constitute a disclosure of return or tax information under this section. Notwithstanding anything else to the contrary in this section, a person served with a subpoena under RCW 82.32.117 may disclose the existence or content of the subpoena to that person's legal counsel.
Any person acquiring knowledge of any return or tax information in the course of his or her employment with the department of revenue and any person acquiring knowledge of any return or tax information as provided under subsection (3) (e), (f), (g), (h), (i), (m), (v), and (w) of this section, who discloses any such return or tax information to another person not entitled to knowledge of such return or tax information under the provisions of this section, is guilty of a misdemeanor. If the person guilty of such violation is an officer or employee of the state, such person must forfeit such office or employment and is incapable of holding any public office or employment in this state for a period of two years thereafter.
The local community investment account is created in the state treasury. All receipts from the excise tax imposed by section 103 of this act and allocated to the local counties and local taxing districts in section 104(1) of this act must be deposited into the account. Moneys must be distributed to the respective county treasurers pursuant to section 104(2) of this act.
The renewable energy local benefit account is created in the state treasury. All receipts from the renewable energy excise tax imposed pursuant to section 103 of this act and allocated to the state pursuant to section 104(1) of this act must be deposited in the account. Moneys in the account may be spent only after appropriation. Expenditures from the account may be used for
the local community investments contained in sections 202, 203, and 204 of this act.
It is the intent of the legislature to encourage agreements under this act between renewable energy project developers and local governments that result in investments in communities hosting development. Encouraging such developments will help achieve state clean energy goals under the clean energy transformation act, achieve energy reliability and affordability, and ensure that the economic benefits of these projects will accrue to the benefit of the local community.
It is not the intent of the legislature for the agreements specified in this act to replace or supplant the important and necessary agreements between project developers and local labor organizations. Although not addressed by the substance of this act, the legislature recognizes that project labor agreements, including local hire commitments, wage standards, apprenticeship utilization commitments, and similar standards, are an important part of the benefit that renewable energy development projects can bring to the communities hosting those projects.
The department shall establish the renewable energy development local investment commitment matching grant program. Through the program, the department must provide matching funds, on a first-come, first-served basis, for each eligible project in an amount that increases commensurately with increases in the value of the contribution to the local investment commitment made by the project developer and the nameplate storage and generation capacity of the qualifying energy project. Each biennium, the department must establish a formula determining the size of grants awarded to applicants that considers the nameplate capacity of a qualifying energy facility, the value of the contribution to the local investment commitment made by a project developer, the total number of eligible grant applications expected to be received during the biennium, and the total amounts appropriated to the department for purposes of this program in the biennium.
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In order for a jurisdiction to be eligible for matching funds from the program, a local investment commitment finalized after the effective date of this section must:
(A) Located entirely within a city, the city is the primary jurisdiction;
(B) Located entirely within the unincorporated area of a county, or partially within the unincorporated area of a county and partially within a city, the county is the primary jurisdiction; and
(C) Located partially within multiple counties, each county is a primary jurisdiction and must receive benefits under a local investment commitment with the project developer in an amount proportional to the nameplate capacity located in each county;
ii. Benefit only counties or cities, or both, that have not established explicit or de facto moratoria on the development of qualifying energy projects determined consistent with section 203 of this act;
iii. For wind energy production facilities, include commitments for the project developer to decommission the facility and provide financial assurance consistent with section 204 of this act; and
iv. Include a relinquishment, by the project developer, of the property developer's right under RCW 84.40.038 to petition for a retroactive change in the assessed valuation of the property addressed in the local investment commitment, effective upon the receipt by the jurisdiction of funds under this section.
b. Jurisdictions entering into local investment commitments finalized between January 1, 2023, and the effective date of this section are eligible for grants under this section and are not required to meet the criteria in (a) of this subsection.
c. In order for a local investment commitment for a project that applies to and completes the county's process for development approval and files a state environmental policy act checklist pursuant to chapter 43.21C RCW after the effective date of this section to be eligible for funding under this section, a county must include in its development regulations that a qualifying energy project developer must:
i. Initiate and document the offer to conduct early and meaningful engagement, before the submission of a checklist under chapter 43.21C RCW, related to the qualifying energy project with each federally recognized Indian tribe within whose ceded territory and usual and accustomed area the qualifying energy project is proposed to be located in a manner that recognizes the sovereignty and legal rights of the tribe;
ii. Notify, and offer to meet with, the department of archaeology and historic preservation regarding the geographical location, detailed scope of the proposed project, preliminary application details available to federal, state, or local jurisdictions, and all publicly available materials; and
iii. Survey the proposed project site in a manner that reflects input solicited from the department of archaeology and historic preservation and each federally recognized Indian tribe whose lands described in this section are impacted, if any such input is received by the project developer.
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A qualifying energy project may be eligible under this section if the project has received applicable permits under the energy facility site evaluation council process established in chapter 80.50 RCW, the clean energy coordinated permit process established in RCW 43.394.020, or through permit processes overseen by the city or county.
A jurisdiction receiving a grant under this section may not expend state funds in a manner that conflicts with Article VIII, section 5 or Article VIII, section 7 of the Washington state Constitution.
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The department must establish an application process for the program.
The department may expend up to five percent of the funds appropriated for the program for administrative costs.
Nothing in this section limits the authority of a county or city to administratively object to or legally appeal a qualifying energy project or component thereof or to be eligible for grant funds under this section if they file such an objection or appeal.
For purposes of this section, the following definitions apply:
"Program" means the renewable energy development local investment commitment matching grant program established in this section.
"Project developer" means a person that enters into a local investment commitment associated with a qualifying energy project.
"Qualifying energy project" means a battery energy storage facility and a wind or solar energy production facility, associated facilities, and any combination thereof, constructed after the effective date of this section and that is located in a county or city that has entered into a local investment commitment with the project developer.
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For purposes of the grant program in section 202 of this act, a county or city ordinance or other restriction that limits the siting of a wind qualifying energy project as follows constitutes a de facto moratoria on the development of qualifying energy projects:
(A) For occupied community buildings: 2.1 times the maximum blade tip height of the wind tower to the nearest point on the outside wall of the structure;
(B) For participating residences: 1.1 times the maximum blade tip height of the wind tower to the nearest point on the outside wall of the structure;
(C) For nonparticipating residences: 2.1 times the maximum blade tip height of the wind tower to the nearest point on the outside wall of the structure;
(D) For participating property boundary lines: Zero feet;
(E) For nonparticipating property boundary lines: 1.1 times the maximum blade tip height of the wind tower to the nearest point on the property line of the nonparticipating property;
(F) For public road rights-of-way: 1.1 times the maximum blade tip height of the wind tower to the center point of the public road right-of-way;
(G) For overhead communication and electrical transmission and distribution facilities other than overhead utility service lines to individual houses or outbuildings: 1.1 times the maximum blade tip height of the wind tower to the nearest edge of the property line, easement, or right-of-way containing the overhead line; and
(H) For overhead utility service lines to individual houses or outbuildings: Zero feet;
ii. Requirements that a wind tower be sited so that industry standard computer modeling indicates that any occupied community building or nonparticipating residence not experience 30 hours or more per year of shadow flicker under planned operating conditions; and
iii. Blade height tip limitations that are more restrictive than the height allowed under a determination of no hazard to air avigation by the federal aviation administration under 14 C.F.R. Part 77.
b. For purposes of the grant program in section 202 of this act, a county or city ordinance or other restriction that limits the siting of a solar qualifying energy project as follows constitutes a de facto moratoria on the development of qualifying energy projects:
i. Requirements for setbacks from solar energy facilities that exceed:
(A) For occupied community buildings and dwellings on nonparticipating properties: 150 feet from the nearest point on the outside wall of the structure;
(B) For boundary lines of participating properties: Zero feet;
(C) For public road rights-of-way: 50 feet from the nearest edge of any component of the facility; and
(D) For boundary lines of nonparticipating properties: 50 feet to the nearest point on the property line of the nonparticipating property;
ii. A requirement for commercial solar energy facilities to be sited so that the facility's perimeter is enclosed by fencing having a height of 25 feet or more;
iii. A requirement for commercial solar energy facilities to be sited so that components of the solar panel must have a height of 20 feet or less above ground when the facility's arrays are at full tilt.
c. For purposes of the grant program in section 202 of this act, a county or city ordinance or other restriction that limits the siting of any type qualifying energy project as follows constitutes a de facto moratoria on the development of qualifying energy projects:
i. Sound limitations that are more restrictive on any type of qualifying energy project than the limitations that apply to other, similar types of developments or facilities in the jurisdiction;
ii. Zoning regulations that disallow, permanently or temporarily, qualifying energy projects from being developed or operated in any area zoned to allow industrial or agricultural uses;
iii. Application fees for qualifying energy projects that are unreasonable or that are not consistent with fees for projects in the jurisdiction with a similar capital value and cost;
iv. Standards for construction, decommissioning, or deconstruction of a facility or related financial assurances that are more restrictive than those applicable to projects with a similar capital value and cost or that are not demonstrably related to the cost of anticipated decommissioning or deconstruction;
v. Requirements, including the conditioning of approval, upon a property value guarantee or the payment by a facility owner into a neighboring property devaluation escrow account;
vi. Requirements for earthen berms or similar structures other than vegetative screenings surrounding a qualifying energy facility;
vii. Requirements that a qualifying energy project developer pay costs, fees, or other charges for road work that is not specifically and uniquely attributable to the construction or operation of a qualifying energy facility; and
viii. Other standards or criteria, as determined by the department, established by a city or county that apply to one or more types of qualifying energy project but that do not apply to developments or facilities similar to a qualifying energy project within the jurisdiction, and which are not intended to address a specific community impact that is unique to qualifying energy projects and is not likely to result from the other, similar types of developments or facilities.
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Qualifying energy projects that receive applicable permits to develop and operate from the jurisdiction in which the project is located, and which do not use the site certification process in chapter 80.50 RCW, are located in a jurisdiction that does not have a de facto moratoria on the development of qualifying energy projects, and are eligible for the grant program in section 202 of this act.
In order for a qualifying energy project that receives site certification under chapter 80.50 RCW to be eligible for the grant program in section 202 of this act, the primary jurisdiction in which the project is located must demonstrate to the department that the jurisdiction does not have a de facto moratoria on qualifying energy developments and that the qualifying energy development would have been eligible to receive applicable permits from the jurisdiction.
Nothing in this section renders qualifying energy projects ineligible for the program in section 202 of this act on the basis of:
Being located in a jurisdiction that imposes requirements, standards, or restrictions on qualifying energy projects that are consistent with the permit requirements, guidelines, or best practices for the siting, development, or operation of qualifying energy facilities imposed by a state agency or otherwise required under state law; or
Mitigation being imposed as a result of environmental review under chapter 43.21C or 80.50 RCW to address a probable significant adverse environmental impact.
For purposes of this section, the following definitions apply:
"Nonparticipating property" means a property other than a participating property.
"Nonparticipating residence" means a residence that is existing and occupied on the date that an application for a permit or site certification to develop the qualifying energy project is filed, and that is not located on participating property.
"Occupied community building" means any one or more of the following buildings that is existing and occupied on the date that the application for a permit or site certification to develop a qualifying energy project is filed: School, places of worship, day care facility, public library, or community center.
"Participating property" means real property that is owned by the project developer or is the subject of a written agreement between the project developer and the owner of the real property that provides the project developer an easement, option, lease, or license to use the real property for purposes of the qualifying energy project.
"Participating residence" means a residence that is existing and occupied on the date that an application for a permit or site certification to develop the qualifying energy project is filed and is located on a participating property.
"Program" has the same meaning as in section 202 of this act.
"Project developer" has the same meaning as in section 202 of this act.
"Qualifying energy project" has the same meaning as in section 202 of this act.
The department must identify, for purposes of qualification for the grant program established in section 202 of this act, minimum standards for the decommissioning of a facility that includes the production of wind energy. The minimum standards for the decommissioning of a facility under a wind power facility agreement must, at minimum:
Provide that the grantee is responsible for removing the grantee's wind power facilities from the landowner's property and that the grantee shall safely:
(A) Each wind turbine generator, including towers and pad-mount transformers;
(B) All liquids, greases, or similar substances contained in a wind turbine generator;
(C) Each substation; and
(D) All liquids, greases, or similar substances contained in a substation;
ii. For each tower foundation and pad-mount transformer foundation installed in the ground:
(A) Clear, clean, and remove the foundation from the ground to a depth of at least three feet below the surface grade of the land in which the foundation is installed; and
(B) Ensure that each hole or cavity created in the ground by the removal is filled with topsoil by the same type or a similar type as the predominant topsoil found on the property;
iii. For each buried cable, including power, fiber optic, and communications cables, installed in the ground:
(A) Clear, clean, and remove the cable from the ground to a depth of at least three feet below the surface grade of the land in which the cable is installed; and
(B) Ensure that each hole or cavity created in the ground by the removal is filled with topsoil of the same type or a similar type as the predominant topsoil found on the property; and
iv. Clear, clean, and remove from the property each overhead power or communications line installed by the grantee on the property;
b. Provide that, at the request of the landowner, the grantee must:
i. Clear, clean, and remove each road constructed by the grantee on the property; and
ii. Ensure that each hole or cavity created in the ground by the removal is filled with topsoil of the same type or a similar type as the predominant topsoil found on the property;
c. Provide that, at the request of a landowner, the grantee must, if reasonable:
i. Remove from the property all rocks over 12 inches in diameter excavated during the decommissioning or removal process;
ii. Return the property to a tillable state using scarification, v-rip, or disc methods, as appropriate; and
iii. Ensure that:
(A) Each hole or cavity created in the ground by the removal under (c)(i) of this subsection (1) is filled with topsoil of the same type or a similar type as the predominant topsoil found on the property; and
(B) The surface is returned as near as reasonably possible to the same condition as before the grantee dug holes or cavities, including by reseeding pasture land with native grasses prescribed by an appropriate governmental agency, if any.
In order to qualify for the grant program established in section 202 of this act, a wind power facility agreement must provide that the grantee obtain and deliver to the landowner evidence of financial assurance meeting the requirements of this subsection to secure the performance of the grantee's obligation to remove the grantee's wind power facilities located on the landowner's property as described in subsection (1) of this section.
Acceptable forms of financial assurance include a parent company guaranty with a minimum investment grade credit rating for the parent company issued by a major domestic credit rating agency, a letter of credit, a bond, or another form of financial assurance acceptable to the landowner.
The amount of the financial assurance must be at least equal to the estimated amount by which the cost of removing the wind power facilities from the landowner's property and restoring the property to as near as reasonably possible the condition of the property as of the date the agreement begins exceeds the salvage value of the wind power facilities, minus any portion of the value of the wind power facilities pledged to secure outstanding debt.
The wind power facility agreement must provide that:
The estimated cost of removing the wind power facilities from the landowner's property and restoring the property to as near as reasonably possible the condition of the property as of the date the agreement begins and the estimated salvage value of the wind power facilities must be determined by an independent, third-party professional engineer licensed in Washington;
The grantee must deliver to the landowner an updated estimate, prepared by an independent, third-party professional engineer licensed in Washington, of the cost of removal and the salvage value at least once every five years for the remainder of the term of the agreement; and
The grantee is responsible for ensuring that the amount of the financial assurance remains sufficient to cover the amount required by (b) of this subsection, consistent with the estimates required by this subsection (2)(c).
The grantee is responsible for the costs of obtaining financial assurance described in this subsection (2) and the costs of determining the estimated removal costs and salvage value.
The agreement must provide that the grantee must deliver the financial assurance no later than the earlier of:
The date the wind power facility agreement is terminated; or
The 10th anniversary of the commercial operations date of the wind power facilities.
The grantee may not cancel financial assurance before the date the grantee has completed the grantee's obligation to remove the grantee's wind power facilities located on the landowner's property in the manner provided by this section, unless the grantee provides the landowner with replacement financial assurance at the time of or before the cancellation. In the event of a transfer of ownership of the grantee's wind power facilities, the financial security provided by the grantee must remain in place until the date evidence of financial security meeting the requirements of this section is provided to the landowner.
Nothing in this section requires a wind energy production facility to meet the decommissioning standards established in subsection (1) of this section or provide the financial assurance described in subsection (2) of this section, except for purposes of qualifying for the grant program in section 202 of this act.
For purposes of this section, the following definitions apply:
"Grantee" means a person that:
Leases property from a landowner; and
Operates a wind power facility on the property.
"Wind power facility agreement" means a lease agreement between a grantee and a landowner that authorizes the grantee to operate a wind power facility on the leased property.
The department must establish an ongoing program to provide biennial capacity grants to federally recognized tribes consistent with this section. It is the intent of the legislature to fund this program in the amount of $21,500,000 each biennium, adjusted for inflation using the most recent consumer price index.
For purposes of fiscal year 2025, the legislature intends to fund the grant program with appropriations from the climate commitment account created in RCW 70A.65.260.
Beginning in fiscal year 2026, the legislature intends funding for the grant program to be increasingly paid for through the local community investment account created in section 114 of this act and intends to dedicate up to 50 percent of the available funds in that account towards the total cost of the program, with the balance of $21,500,000 being funded through the climate commitment account created in RCW 70A.65.260.
A capacity grant may be used by a recipient federally recognized tribe, at the discretion of each tribe in a manner that recognizes their sovereignty, for:
Consultation on spending decisions on grants in accordance with RCW 70A.65.305;
Consultation on clean energy siting projects;
Activities supporting climate resilience and adaptation;
Developing tribal clean energy projects, as defined in RCW 43.158.010;
Applying for state or federal grant funding;
Other activities for which funds in the climate commitment account, or the natural climate solutions account created in RCW 70A.65.270, are eligible; and
Other related work.
In order to satisfy the requirements of RCW 70A.65.230(1)(b), tribal applicants are encouraged to include a tribal resolution supporting their request with their grant application.
The department must award funds available under this section equally among grant applicants.
Nothing in this section limits the authority of a tribe that receives funds under this section to administratively object to or legally appeal a qualifying energy project or component thereof or to be eligible for grant funds under this section if they file such an objection or appeal.
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.
Sections 101 through 107 and 111 of this act apply to property taxes levied for collection in 2027 and thereafter.
Sections 108 through 110 and 112 of this act apply to property taxes levied for collection in 2026 and thereafter.
This act takes effect January 1, 2026.