Electric transmission system

AN ACT Relating to improving reliability and capacity of the 1
electric transmission system in Washington state; reenacting and 2
amending RCW 43.84.092 and 43.84.092; adding new sections to chapter 3
43.21C RCW; adding new sections to chapter 80.28 RCW; adding a new 4
chapter to Title 43 RCW; creating a new section; providing an 5
effective date; and providing an expiration date. 6
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:7
NEW SECTION. Sec. 1. (1) The legislature finds that Washington 8
has committed to decarbonizing its electricity system so that it is 9
carbon neutral by 2030 and carbon free by 2045. Achieving those goals 10
includes retiring coal and gas resources, adding new generation from 11
renewable and nonemitting resources, and leveraging energy storage 12
technologies. At the same time, demand for electricity is increasing 13
significantly due to the electrification of vehicles, home heating 14
and cooling, and manufacturing, and the expansion of the information 15
services sector in Washington. There are significant federal, state, 16
and private investments in clean energy development, including wind, 17
solar, and battery storage, that support decarbonization goals and 18
supply new electrical load. However, Washington's existing 19
transmission system is outdated and lacks the capacity to support the 20
growing demand for clean electricity.21
H-0903.1
HOUSE BILL 1673
State of Washington 69th Legislature 2025 Regular Session
By Representatives Ramel, Doglio, Berry, Reed, Ormsby, and Parshley
Read first time 01/28/25. Referred to Committee on Environment &
Energy.
p. 1 HB 1673
(2) The legislature also finds that extreme weather events and 1
changes to seasonal highs and lows puts new strain on the existing 2
transmission system and threatens reliability. Extreme weather events 3
such as high-speed winds, floods, freezing, and heat domes can damage 4
grid infrastructure and cause disruptions to the power supply. Warmer 5
summers and colder winters increase the need for heating and cooling 6
and thereby intensify and extend periods of peak demand.7
(3) The legislature further finds that to maintain reliability 8
and build resilience, Washington's transmission system needs to be 9
expanded and upgraded to access diverse portfolios of clean and 10
reliable energy across the region, including solar resources in the 11
southwest and wind resources across the mountain west. A more robust 12
and updated transmission system will support affordability and 13
reliability goals by enabling the efficient dispatch of least-cost 14
resources across the region. 15
(4) Therefore, it is the intent of the legislature to create the 16
Washington electric transmission office to improve transmission 17
capacity, reliability, and efficiency by engaging in long-term 18
planning; providing development services; coordinating siting and 19
permitting; leveraging research; and engaging with utilities, 20
transmission developers, local jurisdictions, state agencies, 21
regional entities, the federal government, and affected communities. 22
The legislature intends for the office to achieve the following 23
goals: 24
(a) Improve reliability and resilience, including during extreme 25
weather events; 26
(b) Increase access to low-cost renewable energy;27
(c) Achieve clean electricity requirements and greenhouse gas 28
emissions limits; 29
(d) Support economic growth; and 30
(e) Maintain affordable energy rates. 31
(5) The legislature intends to initially set up the Washington 32
electric transmission office within the department of commerce in 33
order to leverage existing energy policy expertise and administrative 34
support. However, upon guidance from the office and the electric 35
transmission advisory board, the legislature may decide to separate 36
it from the department and establish it as an independent authority 37
in the future. 38
PART I - WASHINGTON ELECTRIC TRANSMISSION OFFICE39
p. 2 HB 1673
NEW SECTION. Sec. 2. The definitions in this section apply 1
throughout this chapter unless the context clearly requires 2
otherwise.3
(1) "Advisory board" means the electric transmission advisory 4
board. 5
(2) "Department" means the department of commerce.6
(3) "Grid-enhancing technologies" means hardware and software 7
that increases the capacity of electrical lines and improves the 8
efficiency, reliability, and safety of the grid. Grid-enhancing 9
technologies include, but are not limited to, dynamic line rating 10
systems, advanced power flow control systems, and optimization 11
software. 12
(4) "Office" means the Washington electric transmission office.13
(5) "Reconductoring with advanced conductors" means replacing the 14
existing electric conductor with a conductor that has a direct 15
current electrical resistance at least 10 percent lower than existing 16
conductors of a similar diameter on the system and may include 17
rebuilding support structures or other associated facilities.18
NEW SECTION. Sec. 3. (1) The Washington electric transmission 19
office is established within the department.20
(2) The purpose of the office is to: 21
(a) Support the expeditious and efficient expansion of new 22
electric transmission lines within the state that are prudent and 23
needed investments to serve Washington customers; 24
(b) Support the development of community microgrids, distributed 25
energy resources, and energy conservation; 26
(c) Pursue cost-effective nonwire alternatives to increase the 27
capacity of existing electrical infrastructure; 28
(d) Be a statewide resource for developing and coordinating 29
upgrades to existing transmission lines; 30
(e) Collaborate with electric utilities, local jurisdictions, 31
regional entities, and the federal government to develop interstate 32
and regional transmission resources; 33
(f) Facilitate access to regional wholesale markets; and34
(g) Support community and economic development.35
(3) To the greatest extent practicable, the office shall seek to:36
(a) Protect cultural and natural resources; 37
(b) Avoid impacts to overburdened communities and vulnerable 38
populations; 39
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(c) Support good jobs; 1
(d) Maximize the use of existing rights-of-way for transmission 2
development; and 3
(e) Mitigate wildfire risk. 4
(4) The director of the department shall appoint a director of 5
the office, who may employ staff as necessary to carry out the 6
office's duties as prescribed by this act, subject to the 7
availability of amounts appropriated for this specific purpose.8
NEW SECTION. Sec. 4. (1) The electric transmission advisory 9
board is created to advise the office on the transmission needs 10
assessment and transmission system enhancement roadmap required under 11
section 5 of this act and other policies that are consistent with the 12
purposes of this chapter.13
(2) The seven members of the advisory board are as follows:14
(a) The director of the department, or the director's designee;15
(b) One member appointed by the governor with special knowledge 16
of the public utility industry, as evidenced by a college degree or 17
by experience, at least five years of which must be with the electric 18
utility industry; 19
(c) One member appointed by the governor with knowledge of land 20
use planning and law; 21
(d) One member appointed by the governor with expertise in clean 22
energy development; 23
(e) One member appointed by the governor with expertise in 24
ratepayer protection; 25
(f) One member appointed by the governor representing utility 26
workers with expertise in building electrical transmission; and27
(g) One member appointed by the governor with experience 28
financing large infrastructure projects. 29
(3) No member must represent a person that owns or operates 30
electric generating or transmission facilities. 31
(4) Members of the advisory board appointed by the governor shall 32
serve four-year terms. However, the governor must stagger the terms 33
of six of the initial appointees for terms of one, two, and three 34
years. At the end of the term, these members may be reappointed by 35
the governor, or the governor may choose to appoint a new member.36
(5) Decisions of the advisory board require a simple majority 37
vote of all the members on the board. 38
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(6) Members of the advisory board must elect a chair from among 1
its membership to serve for a two-year period. 2
(7) The advisory board must meet at least quarterly.3
(8) The office must provide staff support to the advisory board.4
(9) Members of the advisory board must receive reimbursement for 5
travel expenses as provided by RCW 43.03.050 and 43.03.060.6
NEW SECTION. Sec. 5. The office must:7
(1) Develop a 20-year transmission needs assessment that 8
identifies inefficiencies and deficits in the existing transmission 9
system. 10
(a) The needs assessment must: 11
(i) Identify high-priority corridors that are needed to meet 12
current and forecasted transmission demand, including whether new 13
transmission lines could be built on existing rights-of-way;14
(ii) Identify investments in existing transmission lines, such as 15
grid-enhancing technologies and reconductoring with advanced 16
conductors, to alleviate the need for new transmission lines;17
(iii) Identify and evaluate nonwire alternatives that can reduce 18
the need to build new transmission lines, such as demand response, 19
energy storage, and energy efficiency; and 20
(iv) Align with the state energy strategy as defined in RCW 21
43.21F.025. 22
(b) When developing the needs assessment, the office may consult 23
the advisory board about using existing transmission plans developed 24
by regional or federal entities. 25
(c) The office must complete the first needs assessment by June 26
30, 2026, and then complete a needs assessment every five years 27
thereafter; 28
(2) Develop a transmission system enhancement roadmap that 29
identifies specific actions and corresponding timelines to meet the 30
needs identified in the transmission needs assessment.31
(a) The transmission system enhancement roadmap must prioritize 32
actions based on the following criteria: 33
(i) The capacity for the project to cost-effectively help meet 34
Washington's clean electricity targets; 35
(ii) The least cost to ratepayers; 36
(iii) The least impact to natural and cultural resources on 37
tribal lands; and 38
(iv) The least environmental impact. 39
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(b) The office must complete the first transmission system 1
enhancement roadmap along with the transmission needs assessment by 2
June 30, 2026, and then update the roadmap every two years 3
thereafter; 4
(3) Provide assistance to local governments and tribal 5
governments that are permitting the construction and operation of 6
electric transmission projects including, but not limited to, easily 7
accessible information on advanced technologies in Washington;8
(4) Consult with bond counsel to identify the appropriate state 9
bonding authority needed to improve capacity to develop electric 10
transmission in Washington, including identifying the activities to 11
be funded by electric transmission bonds. By October 1, 2026, the 12
office must prepare request legislation to establish bonding 13
authority for the office; 14
(5) Submit a report of the office's activities to the governor 15
and to the appropriate committees of the legislature by December 1, 16
2025, and annually every September 1st thereafter. The report may 17
include legislative recommendations for providing additional 18
authorities the office needs to expand electric grid capacity and 19
reliability. 20
NEW SECTION. Sec. 6. The office may:21
(1) Adopt rules as necessary to implement this chapter;22
(2) Exercise the power of eminent domain as outlined under the 23
provisions of chapter 8.04 RCW only for land acquisition necessary to 24
secure rights-of-way for new transmission corridors;25
(3) Enter into contracts and agreements; 26
(4) Solicit and receive and expend gifts, grants, and donations;27
(5) Apply for and accept federal loans; 28
(6) Enter into partnerships with public or private entities;29
(7) Engage in transmission planning activities with entities 30
within and outside the state of Washington; 31
(8) Lease, purchase, accept donations of, or otherwise own, hold, 32
improve, or use any property; 33
(9) Sell, lease, exchange, or otherwise dispose of any property;34
(10) Own electric transmission equipment and systems;35
(11)(a) Select a qualified transmission builder or operator, as 36
defined by the office in rule, to build, finance, plan, acquire, 37
maintain, and operate an electric transmission project;38
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(b) Before developing or operating a project, the office must 1
adopt criteria in rule for when the office may proceed to 2
construction and operator as a builder and operator of last resort if 3
there is not sufficient interest from existing utilities or 4
independent transmission developers in developing infrastructure 5
determined to be necessary to meet the goals of the office under this 6
act; and 7
(12) Sell a state-owned electric transmission project at any 8
stage of development. 9
(a) The office may sell a project to a utility serving customers 10
in the state of Washington, a joint operating agency formed under RCW 11
43.52.360, the Bonneville power administration, an independent 12
transmission developer, or an independent system operator.13
(b) Before selling a project, the office must adopt criteria in 14
rule for developing a transparent process, issuing a competitive 15
request for proposals, evaluating proposals, and selecting a project 16
developer. 17
(c) The office is not required to sell to the highest bidder. The 18
office must adopt criteria in rule to determine when the office would 19
continue developing or operating a project after receiving bids on a 20
request for proposals if it determines, after a thorough internal 21
examination, that it is in the best interest of the public to 22
continue owning the project. 23
NEW SECTION. Sec. 7. The electric transmission operating 24
account is created in the state treasury. All receipts from 25
appropriations made by the legislature, federal funds, or gifts or 26
grants from the private sector or foundations and other sources must 27
be deposited in the account. Moneys in the account may be spent only 28
after appropriation. Expenditures from the account may be used only 29
for operating cost purposes consistent with this chapter.30
NEW SECTION. Sec. 8. The electric transmission capital account 31
is created in the state treasury. All moneys received for the 32
acquisition, sale, management, and administration of the office's 33
duties under this chapter for electric transmission projects 34
including, but not limited to, proceeds from the sale of land and/or 35
improvements, interest earned on investments in the account, and all 36
other revenue related to electric transmission projects created or 37
acquired pursuant to this chapter must be deposited into the account. 38
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The account is authorized to receive fund transfers and 1
appropriations from the general fund, as well as gifts, grants, and 2
endowments from public or private sources as may be made from time to 3
time. Moneys in the account may be spent only after appropriation. 4
Expenditures from the account may be used by the director, or the 5
director's designee, to reimburse management costs incurred by the 6
office on electric transmission projects, for the acquisition of 7
interests in land or other real property to be managed as electric 8
transmission projects, and for all other nonoperating cost purposes 9
consistent with this chapter. 10
NEW SECTION. Sec. 9. (1) Except where doing so would reveal 11
critical state transmission assets, all nonfederal providers of 12
transmission in Washington state must provide to the office as much 13
information as the office deems necessary for conducting the 14
transmission needs assessment and transmission system enhancement 15
roadmap outlined in section 5 of this act.16
(2) The Bonneville power administration is encouraged to provide 17
all necessary information to the office to conduct the transmission 18
needs assessment and transmission system enhancement roadmap outlined 19
in section 5 of this act. 20
(3) Information provided to the office by transmission providers 21
that is determined to be confidential by such transmission providers 22
must be kept confidential by the office, used only in the aggregate 23
for the transmission needs assessment and transmission system 24
enhancement roadmap, and is not subject to disclosure under chapter 25
42.56 RCW. 26
PART II - APPLICATION OF THE STATE ENVIRONMENTAL POLICY ACT TO 27
TRANSMISSION IMPROVEMENTS28
NEW SECTION. Sec. 10. A new section is added to chapter 43.21C 29
RCW to read as follows: 30
The following utility-related actions are categorically exempt 31
from compliance with this chapter as long as the actions occur within 32
existing rights-of-way: 33
(1) Upgrading or rebuilding an existing transmission line by 34
reconductoring the line with advanced conductors as defined in 35
section 2 of this act; and 36
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(2) Upgrading an existing transmission line with grid-enhancing 1
technologies as defined in section 2 of this act. 2
NEW SECTION. Sec. 11. A new section is added to chapter 43.21C 3
RCW to read as follows: 4
For a project that is categorically exempt under section 10 of 5
this act, the utility must notify the department of archaeology and 6
historic preservation created in chapter 43.334 RCW and each 7
federally recognized Indian tribe with usual and accustomed areas in 8
the area where the right-of-way exists before commencing the project. 9
The purpose of the consultation required under this section is to 10
allow the utility to determine that there are no existing 11
archaeological, cultural, or tribal resources in the right-of-way. 12
The department of archaeology and historic preservation must ensure 13
that consultation with such tribes occurs, and must determine if 14
archaeological, cultural, or tribal resources are identified in an 15
existing right-of-way. If any such resources are identified, the 16
department of archaeology and historic preservation must ensure that 17
the utility accounts for and protects the resources under chapter 18
27.53 RCW. 19
PART III - INCENTIVES FOR ELECTRIC TRANSMISSION INVESTMENT20
NEW SECTION. Sec. 12. A new section is added to chapter 80.28 21
RCW to read as follows: 22
(1) In establishing rates for each electrical company regulated 23
under this title, the commission may allow an incentive rate of 24
return on investment through December 31, 2040, on capital 25
expenditures for grid-enhancing technologies and reconductoring with 26
advanced conductors as defined in section 2 of this act that are 27
deployed for the benefit of ratepayers on transmission owned and 28
operated by the electrical company. The commission must consider and 29
may adopt other policies to encourage increased deployment of 30
electric transmission infrastructure improvements that increase the 31
capacity of existing transmission infrastructure. 32
(2) An incentive rate of return on investment under this section 33
may be allowed only if the company chooses to pursue capital 34
investments in grid-enhancing technologies or reconductoring with 35
advanced conductors. In the case of an incentive rate of return on 36
investment allowed under this section, an increment of up to two 37
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percent may be added to the rate of return on common equity allowed 1
on the company's other investments. 2
(3) The incentive rate of return on investment authorized in 3
subsection (2) of this section applies only to projects which have 4
been installed after July 1, 2025. 5
(4) The incentive rate of return on investment increment pursuant 6
to this section may be earned only for a period up to the depreciable 7
life of the investment as defined in the depreciation schedules 8
approved by the commission for review. 9
(5) By December 31, 2027, the commission must provide an interim 10
report to the appropriate committees of the legislature with 11
recommendations on policies to encourage increased deployment of 12
electric transmission infrastructure improvements that increase the 13
capacity of existing transmission infrastructure as described in 14
subsection (1) of this section. The commission must consider options 15
to develop and include grid modernization performance metrics in 16
performance-based ratemaking in the interim report.17
(6) By December 31, 2029, the commission must report to the 18
appropriate committees of the legislature on the use of any 19
incentives allowed under this section, the quantifiable impacts of 20
the incentives on electric transmission deployment, and any 21
recommendations to the legislature about further utility investments 22
in electric transmission. 23
NEW SECTION. Sec. 13. A new section is added to chapter 80.28 24
RCW to read as follows: 25
In establishing rates for each electrical company regulated under 26
this title, the commission may allow a rate of return on investments 27
made to upgrade transmission lines owned and operated by the 28
Bonneville power administration where the electrical company has 29
exclusive use to the transmission service provided on such lines.30
PART IV - MISCELLANEOUS31
Sec. 14. RCW 43.84.092 and 2024 c 210 s 4 and 2024 c 168 s 12 32
are each reenacted and amended to read as follows:33
(1) All earnings of investments of surplus balances in the state 34
treasury shall be deposited to the treasury income account, which 35
account is hereby established in the state treasury.36
p. 10 HB 1673
(2) The treasury income account shall be utilized to pay or 1
receive funds associated with federal programs as required by the 2
federal cash management improvement act of 1990. The treasury income 3
account is subject in all respects to chapter 43.88 RCW, but no 4
appropriation is required for refunds or allocations of interest 5
earnings required by the cash management improvement act. Refunds of 6
interest to the federal treasury required under the cash management 7
improvement act fall under RCW 43.88.180 and shall not require 8
appropriation. The office of financial management shall determine the 9
amounts due to or from the federal government pursuant to the cash 10
management improvement act. The office of financial management may 11
direct transfers of funds between accounts as deemed necessary to 12
implement the provisions of the cash management improvement act, and 13
this subsection. Refunds or allocations shall occur prior to the 14
distributions of earnings set forth in subsection (4) of this 15
section. 16
(3) Except for the provisions of RCW 43.84.160, the treasury 17
income account may be utilized for the payment of purchased banking 18
services on behalf of treasury funds including, but not limited to, 19
depository, safekeeping, and disbursement functions for the state 20
treasury and affected state agencies. The treasury income account is 21
subject in all respects to chapter 43.88 RCW, but no appropriation is 22
required for payments to financial institutions. Payments shall occur 23
prior to distribution of earnings set forth in subsection (4) of this 24
section. 25
(4) Monthly, the state treasurer shall distribute the earnings 26
credited to the treasury income account. The state treasurer shall 27
credit the general fund with all the earnings credited to the 28
treasury income account except: 29
(a) The following accounts and funds shall receive their 30
proportionate share of earnings based upon each account's and fund's 31
average daily balance for the period: The abandoned recreational 32
vehicle disposal account, the aeronautics account, the Alaskan Way 33
viaduct replacement project account, the ambulance transport fund, 34
the budget stabilization account, the capital vessel replacement 35
account, the capitol building construction account, the Central 36
Washington University capital projects account, the charitable, 37
educational, penal and reformatory institutions account, the Chehalis 38
basin account, the Chehalis basin taxable account, the clean fuels 39
credit account, the clean fuels transportation investment account, 40
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the cleanup settlement account, the climate active transportation 1
account, the climate transit programs account, the Columbia river 2
basin water supply development account, the Columbia river basin 3
taxable bond water supply development account, the Columbia river 4
basin water supply revenue recovery account, the common school 5
construction fund, the community forest trust account, the connecting 6
Washington account, the county arterial preservation account, the 7
county criminal justice assistance account, the covenant 8
homeownership account, the deferred compensation administrative 9
account, the deferred compensation principal account, the department 10
of licensing services account, the department of retirement systems 11
expense account, the developmental disabilities community services 12
account, the diesel idle reduction account, the opioid abatement 13
settlement account, the drinking water assistance account, the 14
administrative subaccount of the drinking water assistance account, 15
the early learning facilities development account, the early learning 16
facilities revolving account, the Eastern Washington University 17
capital projects account, the education construction fund, the 18
education legacy trust account, the election account, the electric 19
transmission capital account, the electric vehicle account, the 20
energy freedom account, the energy recovery act account, the 21
essential rail assistance account, The Evergreen State College 22
capital projects account, the fair start for kids account, the family 23
medicine workforce development account, the ferry bond retirement 24
fund, the fish, wildlife, and conservation account, the freight 25
mobility investment account, the freight mobility multimodal account, 26
the grade crossing protective fund, the higher education retirement 27
plan supplemental benefit fund, the Washington student loan account, 28
the highway bond retirement fund, the highway infrastructure account, 29
the highway safety fund, the hospital safety net assessment fund, the 30
Interstate 5 bridge replacement project account, the Interstate 405 31
and state route number 167 express toll lanes account, the judges' 32
retirement account, the judicial retirement administrative account, 33
the judicial retirement principal account, the limited fish and 34
wildlife account, the local leasehold excise tax account, the local 35
real estate excise tax account, the local sales and use tax account, 36
the marine resources stewardship trust account, the medical aid 37
account, the money-purchase retirement savings administrative 38
account, the money-purchase retirement savings principal account, the 39
motor vehicle fund, the motorcycle safety education account, the move 40
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ahead WA account, the move ahead WA flexible account, the multimodal 1
transportation account, the multiuse roadway safety account, the 2
municipal criminal justice assistance account, the oyster reserve 3
land account, the pension funding stabilization account, the 4
perpetual surveillance and maintenance account, the pilotage account, 5
the pollution liability insurance agency underground storage tank 6
revolving account, the public employees' retirement system plan 1 7
account, the public employees' retirement system combined plan 2 and 8
plan 3 account, the public facilities construction loan revolving 9
account, the public health supplemental account, the public works 10
assistance account, the Puget Sound capital construction account, the 11
Puget Sound ferry operations account, the Puget Sound Gateway 12
facility account, the Puget Sound taxpayer accountability account, 13
the real estate appraiser commission account, the recreational 14
vehicle account, the regional mobility grant program account, the 15
reserve officers' relief and pension principal fund, the resource 16
management cost account, the rural arterial trust account, the rural 17
mobility grant program account, the rural Washington loan fund, the 18
second injury fund, the sexual assault prevention and response 19
account, the site closure account, the skilled nursing facility 20
safety net trust fund, the small city pavement and sidewalk account, 21
the special category C account, the special wildlife account, the 22
state hazard mitigation revolving loan account, the state investment 23
board expense account, the state investment board commingled trust 24
fund accounts, the state patrol highway account, the state 25
reclamation revolving account, the state route number 520 civil 26
penalties account, the state route number 520 corridor account, the 27
statewide broadband account, the statewide tourism marketing account, 28
the supplemental pension account, the Tacoma Narrows toll bridge 29
account, the teachers' retirement system plan 1 account, the 30
teachers' retirement system combined plan 2 and plan 3 account, the 31
tobacco prevention and control account, the tobacco settlement 32
account, the toll facility bond retirement account, the 33
transportation 2003 account (nickel account), the transportation 34
equipment fund, the JUDY transportation future funding program 35
account, the transportation improvement account, the transportation 36
improvement board bond retirement account, the transportation 37
infrastructure account, the transportation partnership account, the 38
traumatic brain injury account, the tribal opioid prevention and 39
treatment account, the University of Washington bond retirement fund, 40
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the University of Washington building account, the voluntary cleanup 1
account, the volunteer firefighters' relief and pension principal 2
fund, the volunteer firefighters' and reserve officers' 3
administrative fund, the vulnerable roadway user education account, 4
the Washington judicial retirement system account, the Washington law 5
enforcement officers' and firefighters' system plan 1 retirement 6
account, the Washington law enforcement officers' and firefighters' 7
system plan 2 retirement account, the Washington public safety 8
employees' plan 2 retirement account, the Washington school 9
employees' retirement system combined plan 2 and 3 account, the 10
Washington state patrol retirement account, the Washington State 11
University building account, the Washington State University bond 12
retirement fund, the water pollution control revolving administration 13
account, the water pollution control revolving fund, the Western 14
Washington University capital projects account, the Yakima integrated 15
plan implementation account, the Yakima integrated plan 16
implementation revenue recovery account, and the Yakima integrated 17
plan implementation taxable bond account. Earnings derived from 18
investing balances of the agricultural permanent fund, the normal 19
school permanent fund, the permanent common school fund, the 20
scientific permanent fund, and the state university permanent fund 21
shall be allocated to their respective beneficiary accounts.22
(b) Any state agency that has independent authority over accounts 23
or funds not statutorily required to be held in the state treasury 24
that deposits funds into a fund or account in the state treasury 25
pursuant to an agreement with the office of the state treasurer shall 26
receive its proportionate share of earnings based upon each account's 27
or fund's average daily balance for the period. 28
(5) In conformance with Article II, section 37 of the state 29
Constitution, no treasury accounts or funds shall be allocated 30
earnings without the specific affirmative directive of this section.31
Sec. 15. RCW 43.84.092 and 2024 c 210 s 5 and 2024 c 168 s 13 32
are each reenacted and amended to read as follows:33
(1) All earnings of investments of surplus balances in the state 34
treasury shall be deposited to the treasury income account, which 35
account is hereby established in the state treasury.36
(2) The treasury income account shall be utilized to pay or 37
receive funds associated with federal programs as required by the 38
federal cash management improvement act of 1990. The treasury income 39
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account is subject in all respects to chapter 43.88 RCW, but no 1
appropriation is required for refunds or allocations of interest 2
earnings required by the cash management improvement act. Refunds of 3
interest to the federal treasury required under the cash management 4
improvement act fall under RCW 43.88.180 and shall not require 5
appropriation. The office of financial management shall determine the 6
amounts due to or from the federal government pursuant to the cash 7
management improvement act. The office of financial management may 8
direct transfers of funds between accounts as deemed necessary to 9
implement the provisions of the cash management improvement act, and 10
this subsection. Refunds or allocations shall occur prior to the 11
distributions of earnings set forth in subsection (4) of this 12
section. 13
(3) Except for the provisions of RCW 43.84.160, the treasury 14
income account may be utilized for the payment of purchased banking 15
services on behalf of treasury funds including, but not limited to, 16
depository, safekeeping, and disbursement functions for the state 17
treasury and affected state agencies. The treasury income account is 18
subject in all respects to chapter 43.88 RCW, but no appropriation is 19
required for payments to financial institutions. Payments shall occur 20
prior to distribution of earnings set forth in subsection (4) of this 21
section. 22
(4) Monthly, the state treasurer shall distribute the earnings 23
credited to the treasury income account. The state treasurer shall 24
credit the general fund with all the earnings credited to the 25
treasury income account except: 26
(a) The following accounts and funds shall receive their 27
proportionate share of earnings based upon each account's and fund's 28
average daily balance for the period: The abandoned recreational 29
vehicle disposal account, the aeronautics account, the Alaskan Way 30
viaduct replacement project account, the budget stabilization 31
account, the capital vessel replacement account, the capitol building 32
construction account, the Central Washington University capital 33
projects account, the charitable, educational, penal and reformatory 34
institutions account, the Chehalis basin account, the Chehalis basin 35
taxable account, the clean fuels credit account, the clean fuels 36
transportation investment account, the cleanup settlement account, 37
the climate active transportation account, the climate transit 38
programs account, the Columbia river basin water supply development 39
account, the Columbia river basin taxable bond water supply 40
p. 15 HB 1673
development account, the Columbia river basin water supply revenue 1
recovery account, the common school construction fund, the community 2
forest trust account, the connecting Washington account, the county 3
arterial preservation account, the county criminal justice assistance 4
account, the covenant homeownership account, the deferred 5
compensation administrative account, the deferred compensation 6
principal account, the department of licensing services account, the 7
department of retirement systems expense account, the developmental 8
disabilities community services account, the diesel idle reduction 9
account, the opioid abatement settlement account, the drinking water 10
assistance account, the administrative subaccount of the drinking 11
water assistance account, the early learning facilities development 12
account, the early learning facilities revolving account, the Eastern 13
Washington University capital projects account, the education 14
construction fund, the education legacy trust account, the election 15
account, the electric transmission capital account, the electric 16
vehicle account, the energy freedom account, the energy recovery act 17
account, the essential rail assistance account, The Evergreen State 18
College capital projects account, the fair start for kids account, 19
the family medicine workforce development account, the ferry bond 20
retirement fund, the fish, wildlife, and conservation account, the 21
freight mobility investment account, the freight mobility multimodal 22
account, the grade crossing protective fund, the higher education 23
retirement plan supplemental benefit fund, the Washington student 24
loan account, the highway bond retirement fund, the highway 25
infrastructure account, the highway safety fund, the hospital safety 26
net assessment fund, the Interstate 5 bridge replacement project 27
account, the Interstate 405 and state route number 167 express toll 28
lanes account, the judges' retirement account, the judicial 29
retirement administrative account, the judicial retirement principal 30
account, the limited fish and wildlife account, the local leasehold 31
excise tax account, the local real estate excise tax account, the 32
local sales and use tax account, the marine resources stewardship 33
trust account, the medical aid account, the money-purchase retirement 34
savings administrative account, the money-purchase retirement savings 35
principal account, the motor vehicle fund, the motorcycle safety 36
education account, the move ahead WA account, the move ahead WA 37
flexible account, the multimodal transportation account, the multiuse 38
roadway safety account, the municipal criminal justice assistance 39
account, the oyster reserve land account, the pension funding 40
p. 16 HB 1673
stabilization account, the perpetual surveillance and maintenance 1
account, the pilotage account, the pollution liability insurance 2
agency underground storage tank revolving account, the public 3
employees' retirement system plan 1 account, the public employees' 4
retirement system combined plan 2 and plan 3 account, the public 5
facilities construction loan revolving account, the public health 6
supplemental account, the public works assistance account, the Puget 7
Sound capital construction account, the Puget Sound ferry operations 8
account, the Puget Sound Gateway facility account, the Puget Sound 9
taxpayer accountability account, the real estate appraiser commission 10
account, the recreational vehicle account, the regional mobility 11
grant program account, the reserve officers' relief and pension 12
principal fund, the resource management cost account, the rural 13
arterial trust account, the rural mobility grant program account, the 14
rural Washington loan fund, the second injury fund, the sexual 15
assault prevention and response account, the site closure account, 16
the skilled nursing facility safety net trust fund, the small city 17
pavement and sidewalk account, the special category C account, the 18
special wildlife account, the state hazard mitigation revolving loan 19
account, the state investment board expense account, the state 20
investment board commingled trust fund accounts, the state patrol 21
highway account, the state reclamation revolving account, the state 22
route number 520 civil penalties account, the state route number 520 23
corridor account, the statewide broadband account, the statewide 24
tourism marketing account, the supplemental pension account, the 25
Tacoma Narrows toll bridge account, the teachers' retirement system 26
plan 1 account, the teachers' retirement system combined plan 2 and 27
plan 3 account, the tobacco prevention and control account, the 28
tobacco settlement account, the toll facility bond retirement 29
account, the transportation 2003 account (nickel account), the 30
transportation equipment fund, the JUDY transportation future funding 31
program account, the transportation improvement account, the 32
transportation improvement board bond retirement account, the 33
transportation infrastructure account, the transportation partnership 34
account, the traumatic brain injury account, the tribal opioid 35
prevention and treatment account, the University of Washington bond 36
retirement fund, the University of Washington building account, the 37
voluntary cleanup account, the volunteer firefighters' relief and 38
pension principal fund, the volunteer firefighters' and reserve 39
officers' administrative fund, the vulnerable roadway user education 40
p. 17 HB 1673
account, the Washington judicial retirement system account, the 1
Washington law enforcement officers' and firefighters' system plan 1 2
retirement account, the Washington law enforcement officers' and 3
firefighters' system plan 2 retirement account, the Washington public 4
safety employees' plan 2 retirement account, the Washington school 5
employees' retirement system combined plan 2 and 3 account, the 6
Washington state patrol retirement account, the Washington State 7
University building account, the Washington State University bond 8
retirement fund, the water pollution control revolving administration 9
account, the water pollution control revolving fund, the Western 10
Washington University capital projects account, the Yakima integrated 11
plan implementation account, the Yakima integrated plan 12
implementation revenue recovery account, and the Yakima integrated 13
plan implementation taxable bond account. Earnings derived from 14
investing balances of the agricultural permanent fund, the normal 15
school permanent fund, the permanent common school fund, the 16
scientific permanent fund, and the state university permanent fund 17
shall be allocated to their respective beneficiary accounts.18
(b) Any state agency that has independent authority over accounts 19
or funds not statutorily required to be held in the state treasury 20
that deposits funds into a fund or account in the state treasury 21
pursuant to an agreement with the office of the state treasurer shall 22
receive its proportionate share of earnings based upon each account's 23
or fund's average daily balance for the period. 24
(5) In conformance with Article II, section 37 of the state 25
Constitution, no treasury accounts or funds shall be allocated 26
earnings without the specific affirmative directive of this section.27
NEW SECTION. Sec. 16. Section 14 of this act expires July 1, 28
2028. 29
NEW SECTION. Sec. 17. Section 15 of this act takes effect July 30
1, 2028. 31
NEW SECTION. Sec. 18. Sections 2 through 9 of this act 32
constitute a new chapter in Title 43 RCW.33
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