wa-law.org > bill > 2025-26 > HB 1960 > Third Substitute
The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
"Battery electric storage systems" means commercially available technology that is capable of retaining electricity, storing the energy for a period of time, and delivering the electricity after storage by chemical, thermal, mechanical, or other means that has at least 10 megawatt-hour of storage. "Battery electric storage systems" does not include any form of hydroelectric power.
"Energy storage" means commercially available technology that is capable of retaining electricity, storing the energy for a period of time, and delivering the electricity after storage by chemical, thermal, mechanical, or other means.
"Personal property" has the same meaning as in RCW 84.04.080.
"Qualified renewable energy facility" means an electric generating facility powered by wind or solar energy with alternating current nameplate capacity of at least 10 megawatts.
"Renewable energy" means energy produced by a solar or wind facility with a nameplate capacity sufficient to generate at least 10 megawatts of alternating current power.
"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 storage capacity" means the battery storage capacity per megawatt-hour.
"Repowered" means the rebuild or refurbishment of a majority of the wind or solar energy facility due to the facility reaching the end of its useful life or useful reasonable economic life as determined by the county assessor. The rebuild or refurbishment does not constitute repowering if it is part of routine major maintenance or the maintenance of or replacement of equipment that does not materially affect the expected physical or economic life of the facility.
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All personal property used primarily for the generation of renewable energy in a qualified renewable energy facility that becomes operational on or after January 1, 2028, or a renewable energy facility that is repowered on or after January 1, 2028, is exempt from property taxation.
All personal property used primarily for the generation of renewable energy in a qualified renewable energy facility that became operational before January 1, 2028, meets the conditions in section 106 of this act, and opts into the tax imposed under section 103 of this act is exempt from property taxation.
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All personal property used primarily for a battery electric storage system that becomes operational on or after January 1, 2028, or that is repowered on or after January 1, 2028, is exempt from property taxation.
All personal property used primarily for the energy storage in a qualified renewable energy facility that became operational before January 1, 2028, meets the conditions of section 106 of this act, and opts into the tax imposed under section 103 of this act is exempt from property taxation.
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Each qualified renewable energy facility and battery electric storage system 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, energy storage capacity, and repowering of the personal property exempt under this section, as well as any other information required by the department.
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.
The definitions in section 101 of this act apply throughout this section.
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Beginning January 1, 2028, a state renewable energy excise tax is imposed and collected on the privilege of using a renewable energy generating system for an electric power source in the state. This tax applies to renewable energy generating systems:
That begin operation on or after January 1, 2028; or
For systems in operation prior to January 1, 2028, when one of the following occur:
(A) The repowering of a project; or
(B) The project developer opts into the renewable energy excise tax pursuant to section 106 of this act.
b. Beginning January 1, 2028, a state renewable energy excise tax is imposed and collected on the privilege of using a battery electric storage system. This tax applies to battery electric storage systems:
i. That begin operation on or after January 1, 2028; or
ii. For systems in operation before January 1, 2028, when one of the following occur:
(A) The repowering of a project; or
(B) The project developer opts into the renewable energy excise tax pursuant to section 106 of this act.
The taxes must be paid monthly in the manner and form prescribed by the department.
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.
The moneys from this tax must be deposited into the local investment distribution account created in section 116 of this act.
Beginning January 1, 2028, the legislative body of any county may impose a local renewable energy excise tax for the privilege of using a battery electric storage system or a renewable energy generating system for an electric power source in the state. This tax applies to battery electric storage systems and renewable energy generating systems:
That begin operation on or after January 1, 2028; or
For systems in operation prior to January 1, 2028, when one of the following occur:
The repowering of a project; or
The project developer opts into the renewable energy excise tax pursuant to section 106 of this act.
The application of the tax is subject to the conditions of this chapter and is in addition to any taxes imposed upon the same persons under section 103 of this act or chapter 82.04 or 82.16 RCW.
The rate of the tax is established in section 105 of this act. The taxes must be paid monthly in the manner and form prescribed by the county treasurer.
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, 2028.
The definitions in section 101 of this act apply throughout this section.
The rates of the state and local renewable energy excise taxes authorized in sections 103 and 104 of this act on renewable energy generating systems are as follows:
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The state renewable energy excise tax rate is $968 per year per megawatt of nameplate capacity of alternating current power for a renewable energy generating system that uses solar energy to generate electricity.
The local renewable energy excise tax rate is $2,905 per year per megawatt of nameplate capacity of alternating current power for a renewable energy generating system that uses solar energy to generate electricity.
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The state renewable excise tax rate is $1,286 per year per megawatt of nameplate capacity of alternating current power for a renewable energy generating system that uses wind energy to generate electricity.
The local renewable energy excise tax rate is $3,857 per year per megawatt of nameplate capacity of alternating current power for a renewable energy generating system that uses wind energy to generate electricity.
The rates of the state and local renewable energy excise taxes authorized in sections 103 and 104 of this act on battery electric storage system are as follows:
The state renewable energy excise tax is $156 per megawatt-hour of battery electric storage system capacity.
The local renewable energy excise tax is $467 per megawatt-hour of battery electric storage system capacity.
The rates in this section apply for the lifetime of the renewable energy generating system or the battery electric storage system or until the renewable energy generating system or the battery electric storage system repowers.
A renewable energy generating facility or a battery electric storage system under construction before January 1, 2028, and not on the county property tax rolls may opt into the tax imposed under sections 103 and 104 of this act and receive a property tax exemption under section 102 of this act if:
The renewable energy generating facility or battery electric storage system notifies the department and the county assessor in which the project is located that they intend to opt into the tax imposed under sections 103 and 104 of this act before beginning construction; and
The legislative authority of the county in which the renewable energy generating facility or battery electric storage system is located has authorized the imposition of a local renewable energy excise tax.
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A renewable energy generating facility or battery electric storage system operating before January 1, 2028, may opt into the tax imposed under sections 103 and 104 of this act after the renewable energy generating facility or a battery electric storage system has been in operation for at least 25 years so long as the county imposes the local renewable energy excise tax.
To opt in, the renewable energy generating facility or the battery electric storage system must notify the department and county assessor of their intent to opt in by July 1st in order to claim a personal property tax exemption under section 102 of this act and for state and local renewable energy excise taxes to be assessed beginning January 1st of the next calendar year.
Notice must occur in the manner and form as required by the department and the county assessor. The county assessor must determine that the renewable energy generating facility or battery electric storage system meets the required years of operation.
The personal property tax exemption in section 102 of this act and the taxes imposed pursuant sections 103 and 104 of this act automatically apply to a renewable energy generating facility or a battery electric storage system operating before January 1, 2028, after the facility or system has operated for 35 years as determined by the county assessor.
Beginning January 1, 2028, the legislative authority of a county may impose a special local renewable energy excise tax if (a) a local taxing district within the county imposes an excess levy as authorized pursuant to RCW 84.52.052, or (b) a school district imposes a levy as authorized pursuant to RCW 84.52.053 or 84.52.0531 after the effective date of this section.
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The applicable local renewable energy excise rate established in section 105 of this act must be multiplied by the excess levy increment as provided in this subsection to determine the special local renewable energy excise tax rate.
The rate of the excess levy increment is calculated by dividing the sum of the applicable county and junior taxing district property levy rates by the applicable excess levy rate. This is the excess levy increment unless:
The excess levy increment exceeds five percent and there is only a single excess levy, in which case five percent must be used in the calculation of the special local renewable energy excise tax under this section; or
Multiple taxing districts impose excess levies, in which case the excess levy increment for all the multiple taxing districts must be combined and may not exceed 10 percent in total.
The special local renewable tax rate may be adjusted annually to accommodate new and expiring excess levies and expires at the same time as the corresponding levy.
The proceeds of the special local renewable tax must be distributed to the taxing districts that are imposing the excess levy.
The joint legislative audit and review committee must review the tax rates contained in section 105 of this act and report to the legislature by October 31, 2031. The report must include:
Estimates of what the taxpayer would have paid over the life cycle of the renewable energy generating facilities and battery electric storage systems if the property remained subject to property taxes. The estimate must consider assumptions including the cost to construct, federal tax credits, trend factors, depreciation, and the average county tax rates across Washington;
Comparisons to the renewable energy generating facilities' and battery electric storage systems' economic and tax environments of other states;
An evaluation of any changes in the average per megawatt construction costs for different types of projects, the value of any federal or state tax incentives, the impact of technology improvements on the costs to construct projects, and any change in the annual project equipment depreciation guidelines compared to the previous five-year period; and
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Recommendations, based on the findings, regarding future rate adjustments to ensure that taxpayers, the state, and local taxing districts are not disadvantaged by the renewable energy excise tax when new renewable energy generating systems and battery electric storage systems are subject to the renewable energy excise tax.
The report must not recommend changes to the renewable energy excise tax rate for renewable energy generating systems and battery electric storage systems that are paying the taxes imposed by this act.
The legislature intends that any future rate adjustments will be announced three years before the effective date of the rate change and that rate changes will not occur before January 1, 2034.
The joint legislative audit and review committee shall collect data from the department of revenue, county assessors, and other relevant entities during the course of its review.
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.
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. For the purposes of this subsection (1)(e), "increment area" does not include increment areas that are not approved by the taxing district's governing body for participation in the tax increment project pursuant to RCW 39.114.020(1)(c)(ii)(D).
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:
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 under RCW 39.114.020 if the increase is not included elsewhere under this section. This subsection (5) 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 the purposes of this subsection (5), "increment area" does not include increment areas that are not approved by the taxing district's governing body for participation in the tax increment project pursuant to RCW 39.114.020(1)(c)(ii)(D).
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. For the purposes of this subsection (5), "increment area" does not include increment areas that are not approved by the taxing district's governing body for participation in the tax increment project pursuant to RCW 39.114.020(1)(c)(ii)(D).
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 the purposes of this subsection (3)(b)(v), "increment area" does not include increment areas that are not approved by the taxing district's governing body for participation in the tax increment project pursuant to RCW 39.114.020(1)(c)(ii)(D).
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 sections 103 and 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 investment distribution account is created in the state treasury. All receipts from the state renewable energy excise tax imposed by section 103 of this act must be deposited into the account. Expenditures from the account may be used for the local investment distributions contained in sections 202 and 203 of this act.
It is the intent of the legislature to create favorable conditions that result in investments in communities hosting renewable energy project development. Encouraging such developments, including by increasing revenues for local governments, 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 accrue to the benefit of the local community.
The department shall establish the renewable energy development local investment distribution program.
Subject to the availability of amounts appropriated for this purpose, the department must provide funds through the program to each county that hosts a qualifying energy project under this section. The total distribution under this subsection must be in a proportion equal to the amount of state excise tax under section 103 of this act attributable to a county during the previous tax reporting period.
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Except for a rural county as defined in RCW 82.14.370, each county must distribute funds received from the department to the local taxing districts within the county in which each qualifying energy project is located, according to the taxing district's relative share of the local property tax levy.
For distributions for qualifying energy projects in a rural county, as defined in RCW 82.14.370, the rural county may elect to retain the full amount provided by the department, without distribution to local taxing districts.
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In order for a county to be eligible to receive funds in a proportion equal to the amount of state excise tax under section 103 of this act attributable to a county, the department must determine that:
The qualifying energy project is located in the county, and the project was operating before January 1, 2029; or
The qualifying energy project is located in the county, and the county has adopted or substantially adopted the model ordinance published by the department under section 203 of this act. For the purposes of this section, "substantially adopted" means, in the opinion of the department, the county has adopted development regulations that achieve the intent of the model ordinance published by the department, are not more restrictive or burdensome than the model ordinance, and do not unnecessarily impede the development of renewable energy projects within the county.
In order for a county to be determined to be eligible to receive funds under this subsection (2) for a project that applies to and completes the county's process for development approval and files an environmental policy checklist pursuant to chapter 43.21C RCW after the effective date of this section, a county must include in its development regulations that:
(A) Initiate and document the offer to conduct early and meaningful engagement, before the submission of an environmental policy 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, with the objective of agreeing on a plan for protecting the archaeological and cultural resources that are potentially affected by the project;
(B) 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, with the objective of agreeing on a plan for protecting the archaeological and cultural resources that are potentially affected by the project; and
(C) 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 within 60 days of the notification in (b)(i)(B) of this subsection (2); and
ii. The county may condition an application by a qualifying energy project developer in accordance with a plan agreement between the qualifying energy project developer and either the federally recognized Indian tribe or the department of archaeology and historic preservation, or both, for protecting the archaeological cultural resources that are potentially affected by the project.
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 pursuant to RCW 43.394.020, or through permit processes overseen by the city or county.
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The department must establish an application process for the program.
The department may charge a reasonable fee for administrative costs. Fees must be deposited in the local investment distribution account created in section 116 of this act.
Beginning in fiscal year 2029, the legislature intends to dedicate at least 75 percent of the local investment distribution account appropriations each biennium to the funding of the local investment distribution program described in this section. It is the intent of the legislature to apply any balance in the local investment distribution account that is in excess of the eligible expenses for the local investment distribution program under this section first to the tribal capacity grant program in section 204 of this act in amount not to exceed a total of $21,500,000 each biennium and second to the general fund.
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:
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"Energy storage system" means commercially available technology that is capable of retaining electricity, storing the energy for a period of time, and delivering the electricity after storage by chemical, thermal, mechanical, or other means.
"Energy storage system" does not include a solar or wind energy production facility.
"Qualifying energy project" means an energy storage system, a wind or solar energy production facility, associated facilities, or any combination thereof, constructed after the effective date of this section.
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The department shall provide technical assistance and ongoing liaison support to local governments, including methods and best practices for siting qualifying energy projects specified in section 202 of this act, for use by local governments.
As part of this work, the department must develop and publish a model ordinance applicable to the siting of qualifying energy projects specified in section 202 of this act by July 1, 2028. The model ordinance must include, but is not limited to, standards for the decommissioning of and provision of financial assurance for wind energy facilities and means to avoid detrimental impact to natural resources and cultural resource areas. The model ordinance must also consider local government compliance with the growth management act. The department must consider whether the model ordinance should specify or encourage expedited timelines for permit review that are adhered to by the county or city. The department must develop the model ordinance in consultation with qualifying energy project developers, qualifying energy project owners, counties, federally recognized tribes, and other interested stakeholders.
Effective six months after the department's publication of a model ordinance under subsection (1) of this section, to be eligible for the grant program in section 202 of this act, a county or city ordinance or other restriction that limits the siting of a qualifying energy project may not contain standards that are more restrictive or burdensome than the applicable model ordinance published by the department under subsection (1) of this section.
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The department must review the model ordinance created in this section under the provisions of chapter 43.21C RCW. To the maximum extent appropriate consistent with WAC 197-11-600 as it existed as of the effective date of this section, the department must use the nonproject environmental impact statements prepared by the department of ecology under RCW 43.21C.535 and by the energy facility site evaluation council under RCW 43.21C.405.
A county that adopts the model ordinance under this section that has been reviewed by the department under the provisions of chapter 43.21C RCW is not required to review the ordinance under the provisions of chapter 43.21C RCW.
Nothing in this section renders qualifying energy projects ineligible for the grant 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, "qualifying energy project" has the same meaning as in section 202 of this act.
The department must implement an ongoing program to provide biennial capacity grants to federally recognized tribes consistent with this section and RCW 70A.65.250. It is the intent of the legislature to fund this program in the amount of at least $21,500,000 each biennium, adjusted for inflation using the most recent consumer price index.
For purposes of fiscal year 2028, the legislature intends to fund the grant program with appropriations from the climate investment account created in RCW 70A.65.250.
Beginning in fiscal year 2029, the legislature intends funding for the grant program to be increasingly paid for through the local investment distribution account created in section 116 of this act and intends to dedicate up to 25 percent of the appropriations from that account each biennium towards the total cost of the program, up to a total contribution from the local investment distribution account of no more than $21,500,000 each biennium. The legislature further intends for any balance necessary for the grant program to be funded in an amount of at least $21,500,000 through the climate investment account created in RCW 70A.65.250.
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 created in RCW 70A.65.260, 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.
Amendments to regulations and other nonproject actions taken by a city or county to adopt or implement the model ordinance created by the department under RCW 70A.207.030 or by a county to adopt or implement the model ordinance created by the department of commerce under section 203 of this act are not subject to the requirements of this chapter.
RCW 82.32.805 and 82.32.808 do not apply to this act.
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.
Section 102 of this act applies to property taxes levied for collection in 2029 and thereafter.
Sections 108 through 111 of this act apply to property taxes levied for collection in 2028 and thereafter.
This act takes effect January 1, 2028.