Renewable energy

AN ACT Relating to encouraging renewable energy in Washington 1
through tax policy and investment in local communities; amending RCW 2
84.55.010, 84.55.030, 84.55.092, 84.55.120, 82.32.330, and 82.96.020; 3
reenacting and amending RCW 84.55.020; adding new sections to chapter 4
84.36 RCW; adding new sections to chapter 82.96 RCW; adding a new 5
section to chapter 84.55 RCW; adding new sections to chapter 43.63A 6
RCW; adding a new section to chapter 43.21A RCW; creating new 7
sections; repealing RCW 84.36.680 and 82.96.010; and providing an 8
effective date. 9
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:10
PART I11
RENEWABLE ENERGY EXCISE TAX12
NEW SECTION. Sec. 101. A new section is added to chapter 84.36 13
RCW to read as follows: 14
(1) All personal property used exclusively for the generation of 15
renewable energy in a qualified renewable energy facility that 16
becomes operational on or after January 1, 2026, or a renewable 17
energy facility that is repowered on or after January 1, 2026, is 18
exempt from property taxation. 19
H-1163.2
HOUSE BILL 1960
State of Washington 69th Legislature 2025 Regular Session
By Representatives Ramel, Berg, Doglio, Fitzgibbon, Parshley, Scott,
Reed, and Hill
Prefiled 02/11/25. Read first time 02/12/25. Referred to Committee
on Finance.
p. 1 HB 1960
(2) All personal property used exclusively for renewable energy 1
storage in a qualified renewable energy facility that becomes 2
operational on or after January 1, 2026, or a renewable energy 3
facility that is repowered on or after January 1, 2026, is exempt 4
from property taxation. 5
(3)(a) Each qualified renewable energy facility in this state 6
must annually, on or before the 15th day of March, make and file with 7
the department an annual report as to the location and nameplate 8
capacity of the personal property exempt under this section.9
(b) The department must provide each respective county treasurer 10
and county assessor a copy of the report filed under (a) of this 11
subsection. 12
(4) The department may adopt such rules in accordance with 13
chapter 34.05 RCW and prescribe such forms as it deems necessary and 14
appropriate to implement and administer this section and section 102 15
of this act. 16
(5) For the purposes of this section and section 102 of this act, 17
the following definitions apply: 18
(a) "Personal property" has the same meaning as in RCW 84.04.080.19
(b) "Qualified renewable energy facility" means:20
(i) A renewable energy facility that becomes operational on or 21
after January 1, 2026, or a renewable energy facility that is 22
repowered on or after January 1, 2026, and is exempt under this 23
section; or 24
(ii) A renewable energy facility that becomes operational before 25
January 1, 2026, and is exempt under section 102 of this act.26
(c) "Renewable energy" means energy produced by a solar or wind 27
facility with a nameplate capacity sufficient to generate at least 50 28
megawatts of alternating current power. 29
(d) "Renewable energy storage" means a battery storage or battery 30
energy storage system that can store renewable energy when production 31
exceeds demand and release that energy when energy demand increases.32
(e) "Repowered" means the replacement of 30 percent or more of 33
solar panels or wind turbines in a qualified renewable energy 34
facility after it first becomes operational. 35
NEW SECTION. Sec. 102. A new section is added to chapter 84.36 36
RCW to read as follows: 37
(1) All personal property used exclusively for the generation of 38
renewable energy in a qualified renewable energy facility that 39
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becomes operational before January 1, 2026, is exempt from property 1
taxation. 2
(2) All personal property used exclusively for renewable energy 3
storage in a qualified renewable energy facility that becomes 4
operational before January 1, 2026, is exempt from property taxation.5
(3)(a) The assessed value of the personal property exempted under 6
this section must be excluded from the calculation of the property 7
tax levy as provided in chapter 84.55 RCW pursuant to section 107 of 8
this act for any taxing district, other than the state, where the 9
exempt personal property is located; and 10
(b)(i) For taxes levied for collection in calendar year 2027, the 11
county assessor must use the most recent assessed valuation available 12
to determine the value of any personal property exempted under this 13
section to be removed from the assessment roll under section 107 of 14
this act; and 15
(ii) On or before June 30, 2026, if any personal property has 16
been previously assessed under chapter 84.12 RCW, the department must 17
provide the county assessor with the apportioned assessed value from 18
the prior year to be removed from the assessment roll under section 19
107 of this act. 20
(4)(a) By March 15, 2026, and each March 15th thereafter, each 21
qualified renewable energy facility in this state must annually make 22
and file with the department an annual report as to the location and 23
nameplate capacity of the personal property exempt under this 24
section. 25
(b) The department must provide each respective county treasurer 26
and county assessor a copy of the report under (a) of this 27
subsection. 28
NEW SECTION. Sec. 103. A new section is added to chapter 82.96 29
RCW to read as follows: 30
(1)(a) Beginning January 1, 2027, a renewable energy excise tax 31
is imposed and collected on the privilege of using qualified 32
renewable energy systems for an electric power source in the state. 33
The rate of the tax is as follows: 34
(i)(A) $4,000 per year per megawatt of nameplate capacity of 35
alternating current power for a qualified renewable energy generating 36
system that uses solar energy to generate electricity if the system 37
became operational before January 1, 2027. 38
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(B) $4,500 per year per megawatt of nameplate capacity of 1
alternating current power for a qualified renewable energy generating 2
system that uses solar energy to generate electricity if the system 3
became operational on or after January 1, 2027, or was repowered on 4
or after January 1, 2027. 5
(ii)(A) $800 per year per megawatt of nameplate capacity of 6
alternating current power for a qualified renewable energy generating 7
system that uses wind energy to generate electricity if the system 8
became operational on or before December 31, 2004. 9
(B) $2,900 per year per megawatt of nameplate capacity of 10
alternating current power for a qualified renewable energy generating 11
system that uses wind energy to generate electricity if the system 12
became operational on or after January 1, 2005, and before January 1, 13
2020, or was repowered on or after January 1, 2005, and before 14
January 1, 2020. 15
(C) $6,000 per year per megawatt of nameplate capacity of 16
alternating current power for a qualified renewable energy generating 17
system that uses wind energy to generate electricity if the system 18
became operational on or after January 1, 2020, and before January 1, 19
2027, or was repowered on or after January 1, 2020, and before 20
January 1, 2027. 21
(D) $6,300 per year per megawatt of nameplate capacity of 22
alternating current power for a qualified renewable energy generating 23
system that uses wind energy to generate electricity if the system 24
became operational on or after January 1, 2027, or was repowered on 25
or after January 1, 2027. 26
(b)(i) Beginning January 1, 2027, an annual renewable energy 27
excise tax is imposed and collected on the privilege of using a 28
renewable energy storage system of a qualified renewable energy 29
generating system. 30
(ii) The rate of tax is $1,500 per megawatt hour of renewable 31
energy storage capacity. 32
(2) Beginning October 1, 2028, and every year thereafter, the 33
renewable energy excise tax under subsection (1) of this section must 34
be adjusted annually by the department for inflation. The annual 35
adjustment is determined by multiplying the rates in subsection (1) 36
of this section by the sum of one plus the percentage by which the 37
most recent October consumer price index exceeds the consumer price 38
index for October 2026 and rounding the result to the nearest $1. No 39
adjustment is made for a calendar year if the adjustment would result 40
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in the same or a lesser applicable rate than the applicable rate in 1
the immediately preceding calendar year. The new rates take effect at 2
the beginning of the following calendar year, starting with January 3
1, 2029. 4
(3) The taxes imposed by this chapter are in addition to any 5
taxes imposed upon the same persons under chapter 82.04 or 82.16 RCW.6
(4) For the purposes of this section, the following definitions 7
apply: 8
(a) "Consumer price index" means the consumer price index for all 9
urban consumers, all items, for the Seattle area as calculated by the 10
United States bureau of labor statistics. For the purposes of this 11
subsection, "Seattle area" means the geographic area sample that 12
includes Seattle. 13
(b) "Qualified renewable energy generating system" means a set of 14
devices whose primary purpose is to produce electricity by means of 15
any combination of collecting, transferring, or converting renewable 16
energy. 17
(c) "Renewable energy" means energy produced by a solar or wind 18
facility with a nameplate capacity sufficient to generate at least 50 19
megawatts of alternating current power. 20
(d) "Renewable energy storage capacity" means the battery storage 21
capacity per megawatt hour. 22
(e) "Renewable energy storage system" means battery storage or 23
battery energy storage system that can store renewable energy when 24
production exceeds demand and release energy when energy demand 25
increases and is colocated with a qualified renewable energy 26
generating system. 27
(f) "Repowered" means the replacement of 30 percent or more of 28
solar panels or wind turbines in a qualified renewable energy 29
facility after it first became operational. 30
NEW SECTION. Sec. 104. A new section is added to chapter 82.96 31
RCW to read as follows: 32
(1) All revenue received by the department from the renewable 33
energy excise tax under section 103 of this act must be distributed 34
as follows: 35
(a) The department must determine the allocation of the renewable 36
energy excise tax to be apportioned between the state and each 37
county. The allocation is based on the location of a qualified 38
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renewable energy generating system or renewable energy storage system 1
taxed under section 103 of this act. 2
(b) The state portion of the revenue must be deposited in the 3
renewable energy local benefit account created in RCW 82.96.020.4
(c) The local portion of the revenue must be deposited in the 5
local community investment account created in section 114 of this 6
act. 7
(2)(a) Monthly, the state treasurer must make distributions from 8
the local community investment account to the respective county 9
treasurer from where the renewable energy excise tax was received.10
(b) Monthly, the state treasurer must disburse earnings from the 11
local community investment account to the respective county treasurer 12
proportionate to the amount of the renewable energy excise tax 13
received. 14
(c) The state treasurer shall make the distribution under this 15
subsection without appropriation. 16
(3) The county treasurer shall distribute any revenues received 17
under this section to each appropriate local taxing district in the 18
county that reflects the pro rata share of the property tax rate in 19
the prior tax year of the district in accordance with RCW 84.56.230, 20
except any voter-approved excess property tax levies within a taxing 21
district authorized after January 1, 2026. 22
NEW SECTION. Sec. 105. A new section is added to chapter 82.96 23
RCW to read as follows: 24
All of the provisions contained in chapter 82.32 RCW not 25
inconsistent with this chapter have full force and application with 26
respect to taxes imposed under this chapter. 27
NEW SECTION. Sec. 106. A new section is added to chapter 82.96 28
RCW to read as follows: 29
The department may adopt such rules in accordance with chapter 30
34.05 RCW, and prescribe such forms, as it deems necessary and 31
appropriate to implement and administer this chapter.32
NEW SECTION. Sec. 107. A new section is added to chapter 84.55 33
RCW to read as follows: 34
For taxes levied for collection in calendar year 2027, each 35
taxing district, other than the state, that receives renewable energy 36
excise tax revenues under section 103 of this act must have its 37
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highest lawful levy under this chapter permanently reduced by the 1
amount of revenue based on the assessed value for property exempt 2
under section 102 of this act that would have otherwise been levied.3
Sec. 108. RCW 84.55.010 and 2021 c 207 s 10 are each amended to 4
read as follows: 5
(1) Except as provided in this chapter, the levy for a taxing 6
district in any year must be set so that the regular property taxes 7
payable in the following year do not exceed the limit factor 8
multiplied by the amount of regular property taxes lawfully levied 9
for such district in the highest of the three most recent years in 10
which such taxes were levied for such district, excluding any 11
increase due to (e) of this subsection, unless the highest levy was 12
the statutory maximum rate amount, plus an additional dollar amount 13
calculated by multiplying the regular property tax levy rate of that 14
district for the preceding year by the increase in assessed value in 15
that district resulting from: 16
(a) New construction; 17
(b) Increases in assessed value due to construction of ((wind 18
turbine, solar, )) biomass((,)) and geothermal facilities, if such 19
facilities generate electricity and the property is not included 20
elsewhere under this section for purposes of providing an additional 21
dollar amount. The property may be classified as real or personal 22
property; 23
(c) Improvements to property; 24
(d) Any increase in the assessed value of state-assessed 25
property; and 26
(e) Any increase in the assessed value of real property, as that 27
term is defined in RCW 39.114.010, within an increment area as 28
designated by any local government in RCW 39.114.020 provided that 29
such increase is not included elsewhere under this section. This 30
subsection (1)(e) does not apply to levies by the state or by port 31
districts and public utility districts for the purpose of making 32
required payments of principal and interest on general indebtedness.33
(2) The requirements of this section do not apply to:34
(a) State property taxes levied under RCW 84.52.065(1) for 35
collection in calendar years 2019 through 2021; and36
(b) State property taxes levied under RCW 84.52.065(2) for 37
collection in calendar years 2018 through 2021. 38
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Sec. 109. RCW 84.55.020 and 2023 c 354 s 5 and 2023 c 28 s 9 are 1
each reenacted and amended to read as follows: 2
Notwithstanding the limitation set forth in RCW 84.55.010, the 3
first levy for a taxing district created from consolidation of 4
similar taxing districts must be set so that the regular property 5
taxes payable in the following year do not exceed the limit factor 6
multiplied by the sum of the amount of regular property taxes each 7
component taxing district could have levied under RCW 84.55.092 plus 8
the additional dollar amount calculated by multiplying the regular 9
property tax rate of each component district for the preceding year 10
by the increase in assessed value in each component district 11
resulting from: 12
(1) New construction; 13
(2) Increases in assessed value due to construction of ((wind 14
turbine, solar, )) biomass((,)) and geothermal facilities, if such 15
facilities generate electricity and the property is not included 16
elsewhere under this section for purposes of providing an additional 17
dollar amount. The property may be classified as real or personal 18
property; 19
(3) Improvements to property; 20
(4) Any increase in the assessed value of state-assessed 21
property; and 22
(5) Any increase in the assessed value of real property, as 23
defined in RCW 39.114.010, within an increment area as designated by 24
any local government under RCW 39.114.020 if the increase is not 25
included elsewhere under this section. This subsection (5) does not 26
apply to levies by the state or by port districts and public utility 27
districts for the purpose of making required payments of principal 28
and interest on general indebtedness. 29
Sec. 110. RCW 84.55.030 and 2023 c 354 s 6 are each amended to 30
read as follows: 31
For the first levy for a taxing district following annexation of 32
additional property, the limitation set forth in RCW 84.55.010 must 33
be increased by an amount equal to the aggregate assessed valuation 34
of the newly annexed property as shown by the current completed and 35
balanced tax rolls of the county or counties within which such 36
property lies, multiplied by the dollar rate that would have been 37
used by the annexing unit in the absence of such annexation, plus the 38
additional dollar amount calculated by multiplying the regular 39
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property tax levy rate of that annexing taxing district for the 1
preceding year by the increase in assessed value in the annexing 2
district resulting from: 3
(1) New construction; 4
(2) Increases in assessed value due to construction of ((wind 5
turbine, solar, )) biomass((,)) and geothermal facilities, if such 6
facilities generate electricity and the property is not included 7
elsewhere under this section for purposes of providing an additional 8
dollar amount. The property may be classified as real or personal 9
property; 10
(3) Improvements to property; 11
(4) Any increase in the assessed value of state-assessed 12
property; and 13
(5) Any increase in the assessed value of real property, as 14
defined in RCW 39.114.010, within an increment area as designated by 15
any local government in RCW 39.114.020 if the increase is not 16
included elsewhere under this section. This subsection does not apply 17
to levies by the state or by port districts or public utility 18
districts for the purpose of making required payments of principal 19
and interest on general indebtedness. 20
Sec. 111. RCW 84.55.092 and 2017 3rd sp.s. c 13 s 309 are each 21
amended to read as follows: 22
(1) ((The)) (a) Except as provided in (b) of this subsection, the 23
regular property tax levy for each taxing district other than the 24
state's levies may be set at the amount which would be allowed 25
otherwise under this chapter if the regular property tax levy for the 26
district for taxes due in prior years beginning with 1986 had been 27
set at the full amount allowed under this chapter including any levy 28
authorized under RCW 52.16.160 or 52.26.140(1)(c) that would have 29
been imposed but for the limitation in RCW 52.18.065 or 52.26.240, 30
applicable upon imposition of the benefit charge under chapter 52.18 31
or 52.26 RCW. 32
(b) For taxes levied for collection in 2027, a taxing district, 33
other than the state, that received renewable energy excise tax 34
revenues under section 103 of this act must reduce the levy in (a) of 35
this subsection by the amount of the reduction under section 107 of 36
this act. The purpose of this subsection (1)(b) is to reset a taxing 37
district's maximum levy under (a) of this subsection.38
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(2) The purpose of subsection (1)(a) of this section is to remove 1
the incentive for a taxing district to maintain its tax levy at the 2
maximum level permitted under this chapter, and to protect the future 3
levy capacity of a taxing district that reduces its tax levy below 4
the level that it otherwise could impose under this chapter, by 5
removing the adverse consequences to future levy capacities resulting 6
from such levy reductions. 7
(3) Subsection (1) of this section does not apply to any portion 8
of a city or town's regular property tax levy that has been reduced 9
as part of the formation of a fire protection district under RCW 10
52.02.160. 11
Sec. 112. RCW 84.55.120 and 2021 c 207 s 11 are each amended to 12
read as follows: 13
(1) A taxing district, other than the state, that collects 14
regular levies must hold a public hearing on revenue sources for the 15
district's following year's current expense budget. The hearing must 16
include consideration of possible increases in property tax revenues 17
and must be held prior to the time the taxing district levies the 18
taxes or makes the request to have the taxes levied. The county 19
legislative authority, or the taxing district's governing body if the 20
district is a city, town, or other type of district, must hold the 21
hearing. For purposes of this section, "current expense budget" means 22
that budget which is primarily funded by taxes and charges and 23
reflects the provision of ongoing services. It does not mean the 24
capital, enterprise, or special assessment budgets of cities, towns, 25
counties, or special purpose districts. 26
(2) If the taxing district is otherwise required to hold a public 27
hearing on its proposed regular tax levy, a single public hearing may 28
be held on this matter. 29
(3)(a) Except as provided in (b) of this subsection (3), no 30
increase in property tax revenue may be authorized by a taxing 31
district, other than the state, except by adoption of a separate 32
ordinance or resolution, pursuant to notice, specifically authorizing 33
the increase in terms of both dollars and percentage. The ordinance 34
or resolution may cover a period of up to two years, but the 35
ordinance must specifically state for each year the dollar increase 36
and percentage change in the levy from the previous year.37
(b) Exempt from the requirements of (a) of this subsection are 38
increases in revenue resulting from the addition of:39
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(i) New construction; 1
(ii) Increases in assessed value due to construction of ((wind 2
turbine, solar, )) biomass((,)) and geothermal facilities, if such 3
facilities generate electricity and the property is not included 4
elsewhere under this section for purposes of providing an additional 5
dollar amount. The property may be classified as real or personal 6
property; 7
(iii) Improvements to property; 8
(iv) Any increase in the value of state-assessed property; and9
(v) Any increase in the assessed value of real property, as that 10
term is defined in RCW 39.114.010, within an increment area as 11
designated by any local government in RCW 39.114.020 provided that 12
such increase is not included elsewhere under this section. This 13
subsection (3)(b)(v) does not apply to levies by the state or by port 14
districts and public utility districts for the purpose of making 15
required payments of principal and interest on general indebtedness.16
Sec. 113. RCW 82.32.330 and 2022 c 56 s 9 are each amended to 17
read as follows: 18
(1) For purposes of this section: 19
(a) "Disclose" means to make known to any person in any manner 20
whatever a return or tax information; 21
(b) "Return" means a tax or information return or claim for 22
refund required by, or provided for or permitted under, the laws of 23
this state which is filed with the department of revenue by, on 24
behalf of, or with respect to a person, and any amendment or 25
supplement thereto, including supporting schedules, attachments, or 26
lists that are supplemental to, or part of, the return so filed;27
(c) "Tax information" means (i) a taxpayer's identity, (ii) the 28
nature, source, or amount of the taxpayer's income, payments, 29
receipts, deductions, exemptions, credits, assets, liabilities, net 30
worth, tax liability deficiencies, overassessments, or tax payments, 31
whether taken from the taxpayer's books and records or any other 32
source, (iii) whether the taxpayer's return was, is being, or will be 33
examined or subject to other investigation or processing, (iv) a part 34
of a written determination that is not designated as a precedent and 35
disclosed pursuant to RCW 82.32.410, or a background file document 36
relating to a written determination, and (v) other data received by, 37
recorded by, prepared by, furnished to, or collected by the 38
department of revenue with respect to the determination of the 39
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existence, or possible existence, of liability, or the amount 1
thereof, of a person under the laws of this state for a tax, penalty, 2
interest, fine, forfeiture, or other imposition, or offense. However, 3
data, material, or documents that do not disclose information related 4
to a specific or identifiable taxpayer do not constitute tax 5
information under this section. Except as provided by RCW 82.32.410, 6
nothing in this chapter requires any person possessing data, 7
material, or documents made confidential and privileged by this 8
section to delete information from such data, material, or documents 9
so as to permit its disclosure; 10
(d) "State agency" means every Washington state office, 11
department, division, bureau, board, commission, or other state 12
agency; 13
(e) "Taxpayer identity" means the taxpayer's name, address, 14
telephone number, registration number, or any combination thereof, or 15
any other information disclosing the identity of the taxpayer; and16
(f) "Department" means the department of revenue or its officer, 17
agent, employee, or representative. 18
(2) Returns and tax information are confidential and privileged, 19
and except as authorized by this section, neither the department of 20
revenue nor any other person may disclose any return or tax 21
information. 22
(3) This section does not prohibit the department of revenue 23
from: 24
(a) Disclosing such return or tax information in a civil or 25
criminal judicial proceeding or an administrative proceeding:26
(i) In respect of any tax imposed under the laws of this state if 27
the taxpayer or its officer or other person liable under this title 28
or chapter 83.100 RCW is a party in the proceeding;29
(ii) In which the taxpayer about whom such return or tax 30
information is sought and another state agency are adverse parties in 31
the proceeding; or 32
(iii) Brought by the department under RCW 18.27.040 or 19.28.071;33
(b) Disclosing, subject to such requirements and conditions as 34
the director prescribes by rules adopted pursuant to chapter 34.05 35
RCW, such return or tax information regarding a taxpayer to such 36
taxpayer or to such person or persons as that taxpayer may designate 37
in a request for, or consent to, such disclosure, or to any other 38
person, at the taxpayer's request, to the extent necessary to comply 39
with a request for information or assistance made by the taxpayer to 40
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such other person. However, tax information not received from the 1
taxpayer must not be so disclosed if the director determines that 2
such disclosure would compromise any investigation or litigation by 3
any federal, state, or local government agency in connection with the 4
civil or criminal liability of the taxpayer or another person, or 5
that such disclosure would identify a confidential informant, or that 6
such disclosure is contrary to any agreement entered into by the 7
department that provides for the reciprocal exchange of information 8
with other government agencies which agreement requires 9
confidentiality with respect to such information unless such 10
information is required to be disclosed to the taxpayer by the order 11
of any court; 12
(c) Disclosing the name of a taxpayer against whom a warrant 13
under RCW 82.32.210 has been either issued or filed and remains 14
outstanding for a period of at least ten working days. The department 15
is not required to disclose any information under this subsection if 16
a taxpayer has entered a deferred payment arrangement with the 17
department for the payment of a warrant that has not been filed and 18
is making payments upon such deficiency that will fully satisfy the 19
indebtedness within twelve months; 20
(d) Publishing statistics so classified as to prevent the 21
identification of particular returns or reports or items thereof;22
(e) Disclosing such return or tax information, for official 23
purposes only, to the governor or attorney general, or to any state 24
agency, or to any committee or subcommittee of the legislature 25
dealing with matters of taxation, revenue, trade, commerce, the 26
control of industry or the professions; 27
(f) Permitting the department of revenue's records to be audited 28
and examined by the proper state officer, his or her agents and 29
employees; 30
(g) Disclosing any such return or tax information to a peace 31
officer as defined in RCW 9A.04.110 or county prosecuting attorney, 32
for official purposes. The disclosure may be made only in response to 33
a search warrant, subpoena, or other court order, unless the 34
disclosure is for the purpose of criminal tax enforcement. A peace 35
officer or county prosecuting attorney who receives the return or tax 36
information may disclose that return or tax information only for use 37
in the investigation and a related court proceeding, or in the court 38
proceeding for which the return or tax information originally was 39
sought; 40
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(h) Disclosing any such return or tax information to the proper 1
officer of the internal revenue service of the United States, the 2
Canadian government or provincial governments of Canada, or to the 3
proper officer of the tax department of any state or city or town or 4
county, for official purposes, but only if the statutes of the United 5
States, Canada or its provincial governments, or of such other state 6
or city or town or county, as the case may be, grants substantially 7
similar privileges to the proper officers of this state;8
(i) Disclosing any such return or tax information to the United 9
States department of justice, including the bureau of alcohol, 10
tobacco, firearms and explosives, the department of defense, the 11
immigration and customs enforcement and the customs and border 12
protection agencies of the United States department of homeland 13
security, the United States coast guard, the alcohol and tobacco tax 14
and trade bureau of the United States department of treasury, and the 15
United States department of transportation, or any authorized 16
representative of these federal agencies, for official purposes;17
(j) Publishing or otherwise disclosing the text of a written 18
determination designated by the director as a precedent pursuant to 19
RCW 82.32.410; 20
(k) Disclosing, in a manner that is not associated with other tax 21
information, the taxpayer name, entity type, business address, 22
mailing address, revenue tax registration numbers, reseller permit 23
numbers and the expiration date and status of such permits, North 24
American industry classification system or standard industrial 25
classification code of a taxpayer, and the dates of opening and 26
closing of business. This subsection may not be construed as giving 27
authority to the department to give, sell, or provide access to any 28
list of taxpayers for any commercial purpose; 29
(l) Disclosing such return or tax information that is also 30
maintained by another Washington state or local governmental agency 31
as a public record available for inspection and copying under the 32
provisions of chapter 42.56 RCW or is maintained by a court of record 33
and is not otherwise prohibited from disclosure; 34
(m) Disclosing such return or tax information to the United 35
States department of agriculture for the limited purpose of 36
investigating food stamp fraud by retailers; 37
(n) Disclosing to a financial institution, escrow company, or 38
title company, in connection with specific real property that is the 39
subject of a real estate transaction, current amounts due the 40
p. 14 HB 1960
department for a filed tax warrant, judgment, or lien against the 1
real property; 2
(o) Disclosing to a person against whom the department has 3
asserted liability as a successor under RCW 82.32.140 return or tax 4
information pertaining to the specific business of the taxpayer to 5
which the person has succeeded; 6
(p) Disclosing real estate excise tax affidavit forms filed under 7
RCW 82.45.150 in the possession of the department, including real 8
estate excise tax affidavit forms for transactions exempt or 9
otherwise not subject to tax; 10
(q) Disclosing to local taxing jurisdictions the identity of 11
sellers granted relief under RCW 82.32.430(5)(b)(i) and the period 12
for which relief is granted; 13
(r) Disclosing such return or tax information to the court in 14
respect to the department's application for a subpoena under RCW 15
82.32.117; 16
(s) Disclosing to a person against whom the department has 17
asserted liability under RCW 83.100.120 return or tax information 18
pertaining to that person's liability for tax under chapter 83.100 19
RCW; 20
(t) Disclosing such return or tax information to the streamlined 21
sales tax governing board, member states of the streamlined sales tax 22
governing board, or authorized representatives of such board or 23
states, for the limited purposes of: 24
(i) Conducting on behalf of member states sales and use tax 25
audits of taxpayers; or 26
(ii) Auditing certified service providers or certified automated 27
systems providers; 28
(u) Disclosing any such return or tax information when the 29
disclosure is specifically authorized under any other section of the 30
Revised Code of Washington; 31
(v) Disclosing to an individual to whom the department has issued 32
an assessment under RCW 82.32.145 for unpaid trust fund taxes of a 33
defunct or insolvent entity, return or tax information of that entity 34
pertaining to those unpaid trust fund taxes; 35
(w) Disclosing any such return or tax information pursuant to a 36
federal grand jury subpoena or subpoena issued by a United States 37
attorney, only to be used in the criminal investigation and related 38
court proceedings, or in the court proceeding for which the return or 39
tax information originally was sought; ((or))40
p. 15 HB 1960
(x) Disclosing any return or tax information to an individual 1
when the return or tax information is related directly to that 2
person's individual liability, as part of a marital community, for 3
amounts due under a warrant issued under the authority of RCW 4
59.30.090 or 82.32.210; or5
(y) Disclosing to local taxing officials, including county 6
assessors or treasurers, the identity and tax information of persons 7
subject to the renewable energy excise tax under section 103 of this 8
act associated with the tax distribution under section 104 of this 9
act. 10
(4)(a) The department may disclose return or taxpayer information 11
to a person under investigation or during any court or administrative 12
proceeding against a person under investigation as provided in this 13
subsection (4). The disclosure must be in connection with the 14
department's official duties relating to an audit, collection 15
activity, or a civil or criminal investigation. The disclosure may 16
occur only when the person under investigation and the person in 17
possession of data, materials, or documents are parties to the return 18
or tax information to be disclosed. The department may disclose 19
return or tax information such as invoices, contracts, bills, 20
statements, resale or exemption certificates, or checks. However, the 21
department may not disclose general ledgers, sales or cash receipt 22
journals, check registers, accounts receivable/payable ledgers, 23
general journals, financial statements, expert's workpapers, income 24
tax returns, state tax returns, tax return workpapers, or other 25
similar data, materials, or documents. 26
(b) Before disclosure of any tax return or tax information under 27
this subsection (4), the department must, through written 28
correspondence, inform the person in possession of the data, 29
materials, or documents to be disclosed. The correspondence must 30
clearly identify the data, materials, or documents to be disclosed. 31
The department may not disclose any tax return or tax information 32
under this subsection (4) until the time period allowed in (c) of 33
this subsection has expired or until the court has ruled on any 34
challenge brought under (c) of this subsection. 35
(c) The person in possession of the data, materials, or documents 36
to be disclosed by the department has twenty days from the receipt of 37
the written request required under (b) of this subsection to petition 38
the superior court of the county in which the petitioner resides for 39
p. 16 HB 1960
injunctive relief. The court must limit or deny the request of the 1
department if the court determines that: 2
(i) The data, materials, or documents sought for disclosure are 3
cumulative or duplicative, or are obtainable from some other source 4
that is more convenient, less burdensome, or less expensive;5
(ii) The production of the data, materials, or documents sought 6
would be unduly burdensome or expensive, taking into account the 7
needs of the department, the amount in controversy, limitations on 8
the petitioner's resources, and the importance of the issues at 9
stake; or 10
(iii) The data, materials, or documents sought for disclosure 11
contain trade secret information that, if disclosed, could harm the 12
petitioner. 13
(d) The department must reimburse reasonable expenses for the 14
production of data, materials, or documents incurred by the person in 15
possession of the data, materials, or documents to be disclosed.16
(e) Requesting information under (b) of this subsection that may 17
indicate that a taxpayer is under investigation does not constitute a 18
disclosure of tax return or tax information under this section.19
(5) Service of a subpoena issued under RCW 82.32.117 does not 20
constitute a disclosure of return or tax information under this 21
section. Notwithstanding anything else to the contrary in this 22
section, a person served with a subpoena under RCW 82.32.117 may 23
disclose the existence or content of the subpoena to that person's 24
legal counsel. 25
(6) Any person acquiring knowledge of any return or tax 26
information in the course of his or her employment with the 27
department of revenue and any person acquiring knowledge of any 28
return or tax information as provided under subsection (3) (e), (f), 29
(g), (h), (i), (m), (v), and (w) of this section, who discloses any 30
such return or tax information to another person not entitled to 31
knowledge of such return or tax information under the provisions of 32
this section, is guilty of a misdemeanor. If the person guilty of 33
such violation is an officer or employee of the state, such person 34
must forfeit such office or employment and is incapable of holding 35
any public office or employment in this state for a period of two 36
years thereafter. 37
NEW SECTION. Sec. 114. A new section is added to chapter 82.96 38
RCW to read as follows: 39
p. 17 HB 1960
The local community investment account is created in the state 1
treasury. All receipts from the excise tax imposed by section 103 of 2
this act and allocated to the local counties and local taxing 3
districts in section 104 (1) of this act must be deposited into the 4
account. Moneys must be distributed to the respective county 5
treasurers pursuant to section 104(2) of this act. 6
Sec. 115. RCW 82.96.020 and 2023 c 427 s 3 are each amended to 7
read as follows: 8
(((1))) The renewable energy local benefit account is created in 9
the state treasury. All receipts from the ((production excise tax in 10
RCW 82.96.010)) renewable energy excise tax imposed pursuant to 11
section 103 of this act and allocated to the state pursuant to 12
section 104 (1) of this act must be deposited in the account. Moneys 13
in the account may be spent only after appropriation. Expenditures 14
from the account may be used for ((qualified local counties and 15
qualified school districts.16
(2) The total amount appropriated to qualified counties and the 17
qualified school districts within those counties must be in 18
proportion to the amount of production excise tax paid by renewable 19
energy systems located in those counties and must be distributed as 20
follows:21
(a) Each qualified county must receive an appropriation equal to 22
42.5 percent of the production excise tax paid by a renewable energy 23
system located in the county.24
(b) Qualified federally recognized Indian tribes must receive an 25
appropriation totaling 15 percent of the production excise tax paid 26
by a renewable energy system impacting the tribes' resources or 27
rights.28
(c) Each qualified school district must receive an appropriation 29
from the remaining 42.5 percent of the production excise tax paid by 30
a renewable energy system located in the same county in proportion to 31
the number of students being served by that district.32
(3) For the purposes of this section, the definitions in this 33
subsection apply unless the context clearly requires otherwise.34
(a) "Qualified county" means a county that has a renewable energy 35
system that receives a tax exemption under RCW 84.36.680 and pays the 36
production excise tax under RCW 82.96.010.37
(b) "Qualified federally recognized Indian tribe" means a 38
federally recognized Indian tribe with rights or lands reserved or 39
p. 18 HB 1960
protected by federal treaty, statute, or executive order that are 1
potentially impacted by a renewable energy system that receives a tax 2
exemption under RCW 84.36.680 and pays the production excise tax 3
under RCW 82.96.010. 4
(c) "Qualified school district" means a school district that is 5
located in a county that has a renewable energy system that receives 6
a tax exemption under RCW 84.36.680 and pays the production excise 7
tax under RCW 82.96.010)) the local community investments contained 8
in sections 202, 203, and 204 of this act. 9
PART II10
LOCAL COMMUNITY INVESTMENTS11
NEW SECTION. Sec. 201. (1) It is the intent of the legislature 12
to encourage agreements under this act between renewable energy 13
project developers and local governments that result in investments 14
in communities hosting development. Encouraging such developments 15
will help achieve state clean energy goals under the clean energy 16
transformation act, achieve energy reliability and affordability, and 17
ensure that the economic benefits of these projects will accrue to 18
the benefit of the local community.19
(2) It is not the intent of the legislature for the agreements 20
specified in this act to replace or supplant the important and 21
necessary agreements between project developers and local labor 22
organizations. Although not addressed by the substance of this act, 23
the legislature recognizes that project labor agreements, including 24
local hire commitments, wage standards, apprenticeship utilization 25
commitments, and similar standards, are an important part of the 26
benefit that renewable energy development projects can bring to the 27
communities hosting those projects. 28
NEW SECTION. Sec. 202. A new section is added to chapter 43.63A 29
RCW to read as follows: 30
(1) The department shall establish the renewable energy 31
development local investment commitment matching grant program. 32
Through the program, the department must provide matching funds, on a 33
first-come, first-served basis, for each eligible project in an 34
amount that increases commensurately with increases in the value of 35
the contribution to the local investment commitment made by the 36
project developer and the nameplate storage and generation capacity 37
p. 19 HB 1960
of the qualifying energy project. Each biennium, the department must 1
establish a formula determining the size of grants awarded to 2
applicants that considers the nameplate capacity of a qualifying 3
energy facility, the value of the contribution to the local 4
investment commitment made by a project developer, the total number 5
of eligible grant applications expected to be received during the 6
biennium, and the total amounts appropriated to the department for 7
purposes of this program in the biennium. 8
(2)(a) In order for a jurisdiction to be eligible for matching 9
funds from the program, a local investment commitment finalized after 10
the effective date of this section must: 11
(i) Include the provision of funds from a qualifying energy 12
project developer to the primary jurisdiction in which the project is 13
located, for use by the jurisdiction or to provide benefits to the 14
jurisdiction's residents. A primary jurisdiction receiving funds 15
under this section may provide for the transfer or allocation of 16
funds to other municipal corporations of the state formed to provide 17
benefits to the jurisdiction's residents. For purposes of this 18
section, if a project is: 19
(A) Located entirely within a city, the city is the primary 20
jurisdiction; 21
(B) Located entirely within the unincorporated area of a county, 22
or partially within the unincorporated area of a county and partially 23
within a city, the county is the primary jurisdiction; and24
(C) Located partially within multiple counties, each county is a 25
primary jurisdiction and must receive benefits under a local 26
investment commitment with the project developer in an amount 27
proportional to the nameplate capacity located in each county;28
(ii) Benefit only counties or cities, or both, that have not 29
established explicit or de facto moratoria on the development of 30
qualifying energy projects determined consistent with section 203 of 31
this act; 32
(iii) For wind energy production facilities, include commitments 33
for the project developer to decommission the facility and provide 34
financial assurance consistent with section 204 of this act; and35
(iv) Include a relinquishment, by the project developer, of the 36
property developer's right under RCW 84.40.038 to petition for a 37
retroactive change in the assessed valuation of the property 38
addressed in the local investment commitment, effective upon the 39
receipt by the jurisdiction of funds under this section.40
p. 20 HB 1960
(b) Jurisdictions entering into local investment commitments 1
finalized between January 1, 2023, and the effective date of this 2
section are eligible for grants under this section and are not 3
required to meet the criteria in (a) of this subsection.4
(c) In order for a local investment commitment for a project that 5
applies to and completes the county's process for development 6
approval and files a state environmental policy act checklist 7
pursuant to chapter 43.21C RCW after the effective date of this 8
section to be eligible for funding under this section, a county must 9
include in its development regulations that a qualifying energy 10
project developer must: 11
(i) Initiate and document the offer to conduct early and 12
meaningful engagement, before the submission of a checklist under 13
chapter 43.21C RCW, related to the qualifying energy project with 14
each federally recognized Indian tribe within whose ceded territory 15
and usual and accustomed area the qualifying energy project is 16
proposed to be located in a manner that recognizes the sovereignty 17
and legal rights of the tribe; 18
(ii) Notify, and offer to meet with, the department of 19
archaeology and historic preservation regarding the geographical 20
location, detailed scope of the proposed project, preliminary 21
application details available to federal, state, or local 22
jurisdictions, and all publicly available materials; and23
(iii) Survey the proposed project site in a manner that reflects 24
input solicited from the department of archaeology and historic 25
preservation and each federally recognized Indian tribe whose lands 26
described in this section are impacted, if any such input is received 27
by the project developer. 28
(3)(a) A qualifying energy project may be eligible under this 29
section if the project has received applicable permits under the 30
energy facility site evaluation council process established in 31
chapter 80.50 RCW, the clean energy coordinated permit process 32
established in RCW 43.394.020, or through permit processes overseen 33
by the city or county. 34
(b) A jurisdiction receiving a grant under this section may not 35
expend state funds in a manner that conflicts with Article VIII, 36
section 5 or Article VIII, section 7 of the Washington state 37
Constitution. 38
(4)(a) The department must establish an application process for 39
the program. 40
p. 21 HB 1960
(b) The department may expend up to five percent of the funds 1
appropriated for the program for administrative costs.2
(5) Nothing in this section limits the authority of a county or 3
city to administratively object to or legally appeal a qualifying 4
energy project or component thereof or to be eligible for grant funds 5
under this section if they file such an objection or appeal.6
(6) For purposes of this section, the following definitions 7
apply: 8
(a) "Program" means the renewable energy development local 9
investment commitment matching grant program established in this 10
section. 11
(b) "Project developer" means a person that enters into a local 12
investment commitment associated with a qualifying energy project.13
(c) "Qualifying energy project" means a battery energy storage 14
facility and a wind or solar energy production facility, associated 15
facilities, and any combination thereof, constructed after the 16
effective date of this section and that is located in a county or 17
city that has entered into a local investment commitment with the 18
project developer. 19
NEW SECTION. Sec. 203. A new section is added to chapter 43.63A 20
RCW to read as follows: 21
(1)(a) For purposes of the grant program in section 202 of this 22
act, a county or city ordinance or other restriction that limits the 23
siting of a wind qualifying energy project as follows constitutes a 24
de facto moratoria on the development of qualifying energy projects:25
(i) Requirements for setbacks from wind energy facilities that 26
exceed: 27
(A) For occupied community buildings: 2.1 times the maximum blade 28
tip height of the wind tower to the nearest point on the outside wall 29
of the structure; 30
(B) For participating residences: 1.1 times the maximum blade tip 31
height of the wind tower to the nearest point on the outside wall of 32
the structure; 33
(C) For nonparticipating residences: 2.1 times the maximum blade 34
tip height of the wind tower to the nearest point on the outside wall 35
of the structure; 36
(D) For participating property boundary lines: Zero feet;37
p. 22 HB 1960
(E) For nonparticipating property boundary lines: 1.1 times the 1
maximum blade tip height of the wind tower to the nearest point on 2
the property line of the nonparticipating property;3
(F) For public road rights-of-way: 1.1 times the maximum blade 4
tip height of the wind tower to the center point of the public road 5
right-of-way; 6
(G) For overhead communication and electrical transmission and 7
distribution facilities other than overhead utility service lines to 8
individual houses or outbuildings: 1.1 times the maximum blade tip 9
height of the wind tower to the nearest edge of the property line, 10
easement, or right-of-way containing the overhead line; and11
(H) For overhead utility service lines to individual houses or 12
outbuildings: Zero feet; 13
(ii) Requirements that a wind tower be sited so that industry 14
standard computer modeling indicates that any occupied community 15
building or nonparticipating residence not experience 30 hours or 16
more per year of shadow flicker under planned operating conditions; 17
and 18
(iii) Blade height tip limitations that are more restrictive than 19
the height allowed under a determination of no hazard to air 20
avigation by the federal aviation administration under 14 C.F.R. Part 21
77. 22
(b) For purposes of the grant program in section 202 of this act, 23
a county or city ordinance or other restriction that limits the 24
siting of a solar qualifying energy project as follows constitutes a 25
de facto moratoria on the development of qualifying energy projects:26
(i) Requirements for setbacks from solar energy facilities that 27
exceed: 28
(A) For occupied community buildings and dwellings on 29
nonparticipating properties: 150 feet from the nearest point on the 30
outside wall of the structure; 31
(B) For boundary lines of participating properties: Zero feet;32
(C) For public road rights-of-way: 50 feet from the nearest edge 33
of any component of the facility; and 34
(D) For boundary lines of nonparticipating properties: 50 feet to 35
the nearest point on the property line of the nonparticipating 36
property; 37
(ii) A requirement for commercial solar energy facilities to be 38
sited so that the facility's perimeter is enclosed by fencing having 39
a height of 25 feet or more; 40
p. 23 HB 1960
(iii) A requirement for commercial solar energy facilities to be 1
sited so that components of the solar panel must have a height of 20 2
feet or less above ground when the facility's arrays are at full 3
tilt. 4
(c) For purposes of the grant program in section 202 of this act, 5
a county or city ordinance or other restriction that limits the 6
siting of any type qualifying energy project as follows constitutes a 7
de facto moratoria on the development of qualifying energy projects:8
(i) Sound limitations that are more restrictive on any type of 9
qualifying energy project than the limitations that apply to other, 10
similar types of developments or facilities in the jurisdiction;11
(ii) Zoning regulations that disallow, permanently or 12
temporarily, qualifying energy projects from being developed or 13
operated in any area zoned to allow industrial or agricultural uses;14
(iii) Application fees for qualifying energy projects that are 15
unreasonable or that are not consistent with fees for projects in the 16
jurisdiction with a similar capital value and cost;17
(iv) Standards for construction, decommissioning, or 18
deconstruction of a facility or related financial assurances that are 19
more restrictive than those applicable to projects with a similar 20
capital value and cost or that are not demonstrably related to the 21
cost of anticipated decommissioning or deconstruction;22
(v) Requirements, including the conditioning of approval, upon a 23
property value guarantee or the payment by a facility owner into a 24
neighboring property devaluation escrow account; 25
(vi) Requirements for earthen berms or similar structures other 26
than vegetative screenings surrounding a qualifying energy facility;27
(vii) Requirements that a qualifying energy project developer pay 28
costs, fees, or other charges for road work that is not specifically 29
and uniquely attributable to the construction or operation of a 30
qualifying energy facility; and 31
(viii) Other standards or criteria, as determined by the 32
department, established by a city or county that apply to one or more 33
types of qualifying energy project but that do not apply to 34
developments or facilities similar to a qualifying energy project 35
within the jurisdiction, and which are not intended to address a 36
specific community impact that is unique to qualifying energy 37
projects and is not likely to result from the other, similar types of 38
developments or facilities. 39
p. 24 HB 1960
(2)(a) Qualifying energy projects that receive applicable permits 1
to develop and operate from the jurisdiction in which the project is 2
located, and which do not use the site certification process in 3
chapter 80.50 RCW, are located in a jurisdiction that does not have a 4
de facto moratoria on the development of qualifying energy projects, 5
and are eligible for the grant program in section 202 of this act.6
(b) In order for a qualifying energy project that receives site 7
certification under chapter 80.50 RCW to be eligible for the grant 8
program in section 202 of this act, the primary jurisdiction in which 9
the project is located must demonstrate to the department that the 10
jurisdiction does not have a de facto moratoria on qualifying energy 11
developments and that the qualifying energy development would have 12
been eligible to receive applicable permits from the jurisdiction.13
(3) Nothing in this section renders qualifying energy projects 14
ineligible for the program in section 202 of this act on the basis 15
of: 16
(a) Being located in a jurisdiction that imposes requirements, 17
standards, or restrictions on qualifying energy projects that are 18
consistent with the permit requirements, guidelines, or best 19
practices for the siting, development, or operation of qualifying 20
energy facilities imposed by a state agency or otherwise required 21
under state law; or 22
(b) Mitigation being imposed as a result of environmental review 23
under chapter 43.21C or 80.50 RCW to address a probable significant 24
adverse environmental impact. 25
(4) For purposes of this section, the following definitions 26
apply: 27
(a) "Nonparticipating property" means a property other than a 28
participating property. 29
(b) "Nonparticipating residence" means a residence that is 30
existing and occupied on the date that an application for a permit or 31
site certification to develop the qualifying energy project is filed, 32
and that is not located on participating property.33
(c) "Occupied community building" means any one or more of the 34
following buildings that is existing and occupied on the date that 35
the application for a permit or site certification to develop a 36
qualifying energy project is filed: School, places of worship, day 37
care facility, public library, or community center.38
(d) "Participating property" means real property that is owned by 39
the project developer or is the subject of a written agreement 40
p. 25 HB 1960
between the project developer and the owner of the real property that 1
provides the project developer an easement, option, lease, or license 2
to use the real property for purposes of the qualifying energy 3
project. 4
(e) "Participating residence" means a residence that is existing 5
and occupied on the date that an application for a permit or site 6
certification to develop the qualifying energy project is filed and 7
is located on a participating property. 8
(f) "Program" has the same meaning as in section 202 of this act.9
(g) "Project developer" has the same meaning as in section 202 of 10
this act. 11
(h) "Qualifying energy project" has the same meaning as in 12
section 202 of this act. 13
NEW SECTION. Sec. 204. A new section is added to chapter 43.63A 14
RCW to read as follows: 15
(1) The department must identify, for purposes of qualification 16
for the grant program established in section 202 of this act, minimum 17
standards for the decommissioning of a facility that includes the 18
production of wind energy. The minimum standards for the 19
decommissioning of a facility under a wind power facility agreement 20
must, at minimum: 21
(a) Provide that the grantee is responsible for removing the 22
grantee's wind power facilities from the landowner's property and 23
that the grantee shall safely: 24
(i) Clear, clean, and remove from the property:25
(A) Each wind turbine generator, including towers and pad-mount 26
transformers; 27
(B) All liquids, greases, or similar substances contained in a 28
wind turbine generator; 29
(C) Each substation; and 30
(D) All liquids, greases, or similar substances contained in a 31
substation; 32
(ii) For each tower foundation and pad-mount transformer 33
foundation installed in the ground: 34
(A) Clear, clean, and remove the foundation from the ground to a 35
depth of at least three feet below the surface grade of the land in 36
which the foundation is installed; and 37
p. 26 HB 1960
(B) Ensure that each hole or cavity created in the ground by the 1
removal is filled with topsoil by the same type or a similar type as 2
the predominant topsoil found on the property; 3
(iii) For each buried cable, including power, fiber optic, and 4
communications cables, installed in the ground: 5
(A) Clear, clean, and remove the cable from the ground to a depth 6
of at least three feet below the surface grade of the land in which 7
the cable is installed; and 8
(B) Ensure that each hole or cavity created in the ground by the 9
removal is filled with topsoil of the same type or a similar type as 10
the predominant topsoil found on the property; and11
(iv) Clear, clean, and remove from the property each overhead 12
power or communications line installed by the grantee on the 13
property; 14
(b) Provide that, at the request of the landowner, the grantee 15
must: 16
(i) Clear, clean, and remove each road constructed by the grantee 17
on the property; and 18
(ii) Ensure that each hole or cavity created in the ground by the 19
removal is filled with topsoil of the same type or a similar type as 20
the predominant topsoil found on the property; 21
(c) Provide that, at the request of a landowner, the grantee 22
must, if reasonable: 23
(i) Remove from the property all rocks over 12 inches in diameter 24
excavated during the decommissioning or removal process;25
(ii) Return the property to a tillable state using scarification, 26
v-rip, or disc methods, as appropriate; and 27
(iii) Ensure that: 28
(A) Each hole or cavity created in the ground by the removal 29
under (c)(i) of this subsection (1) is filled with topsoil of the 30
same type or a similar type as the predominant topsoil found on the 31
property; and 32
(B) The surface is returned as near as reasonably possible to the 33
same condition as before the grantee dug holes or cavities, including 34
by reseeding pasture land with native grasses prescribed by an 35
appropriate governmental agency, if any. 36
(2) In order to qualify for the grant program established in 37
section 202 of this act, a wind power facility agreement must provide 38
that the grantee obtain and deliver to the landowner evidence of 39
financial assurance meeting the requirements of this subsection to 40
p. 27 HB 1960
secure the performance of the grantee's obligation to remove the 1
grantee's wind power facilities located on the landowner's property 2
as described in subsection (1) of this section. 3
(a) Acceptable forms of financial assurance include a parent 4
company guaranty with a minimum investment grade credit rating for 5
the parent company issued by a major domestic credit rating agency, a 6
letter of credit, a bond, or another form of financial assurance 7
acceptable to the landowner. 8
(b) The amount of the financial assurance must be at least equal 9
to the estimated amount by which the cost of removing the wind power 10
facilities from the landowner's property and restoring the property 11
to as near as reasonably possible the condition of the property as of 12
the date the agreement begins exceeds the salvage value of the wind 13
power facilities, minus any portion of the value of the wind power 14
facilities pledged to secure outstanding debt. 15
(c) The wind power facility agreement must provide that:16
(i) The estimated cost of removing the wind power facilities from 17
the landowner's property and restoring the property to as near as 18
reasonably possible the condition of the property as of the date the 19
agreement begins and the estimated salvage value of the wind power 20
facilities must be determined by an independent, third-party 21
professional engineer licensed in Washington; 22
(ii) The grantee must deliver to the landowner an updated 23
estimate, prepared by an independent, third-party professional 24
engineer licensed in Washington, of the cost of removal and the 25
salvage value at least once every five years for the remainder of the 26
term of the agreement; and 27
(iii) The grantee is responsible for ensuring that the amount of 28
the financial assurance remains sufficient to cover the amount 29
required by (b) of this subsection, consistent with the estimates 30
required by this subsection (2)(c). 31
(d) The grantee is responsible for the costs of obtaining 32
financial assurance described in this subsection (2) and the costs of 33
determining the estimated removal costs and salvage value.34
(e) The agreement must provide that the grantee must deliver the 35
financial assurance no later than the earlier of: 36
(i) The date the wind power facility agreement is terminated; or37
(ii) The 10th anniversary of the commercial operations date of 38
the wind power facilities. 39
p. 28 HB 1960
(f) The grantee may not cancel financial assurance before the 1
date the grantee has completed the grantee's obligation to remove the 2
grantee's wind power facilities located on the landowner's property 3
in the manner provided by this section, unless the grantee provides 4
the landowner with replacement financial assurance at the time of or 5
before the cancellation. In the event of a transfer of ownership of 6
the grantee's wind power facilities, the financial security provided 7
by the grantee must remain in place until the date evidence of 8
financial security meeting the requirements of this section is 9
provided to the landowner. 10
(3) Nothing in this section requires a wind energy production 11
facility to meet the decommissioning standards established in 12
subsection (1) of this section or provide the financial assurance 13
described in subsection (2) of this section, except for purposes of 14
qualifying for the grant program in section 202 of this act.15
(4) For purposes of this section, the following definitions 16
apply: 17
(a) "Grantee" means a person that: 18
(i) Leases property from a landowner; and 19
(ii) Operates a wind power facility on the property.20
(b) "Wind power facility agreement" means a lease agreement 21
between a grantee and a landowner that authorizes the grantee to 22
operate a wind power facility on the leased property.23
NEW SECTION. Sec. 205. A new section is added to chapter 43.21A 24
RCW to read as follows: 25
(1) The department must establish an ongoing program to provide 26
biennial capacity grants to federally recognized tribes consistent 27
with this section. It is the intent of the legislature to fund this 28
program in the amount of $21,500,000 each biennium, adjusted for 29
inflation using the most recent consumer price index.30
(a) For purposes of fiscal year 2025, the legislature intends to 31
fund the grant program with appropriations from the climate 32
commitment account created in RCW 70A.65.260. 33
(b) Beginning in fiscal year 2026, the legislature intends 34
funding for the grant program to be increasingly paid for through the 35
local community investment account created in section 114 of this act 36
and intends to dedicate up to 50 percent of the available funds in 37
that account towards the total cost of the program, with the balance 38
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of $21,500,000 being funded through the climate commitment account 1
created in RCW 70A.65.260. 2
(2) A capacity grant may be used by a recipient federally 3
recognized tribe, at the discretion of each tribe in a manner that 4
recognizes their sovereignty, for: 5
(a) Consultation on spending decisions on grants in accordance 6
with RCW 70A.65.305; 7
(b) Consultation on clean energy siting projects;8
(c) Activities supporting climate resilience and adaptation;9
(d) Developing tribal clean energy projects, as defined in RCW 10
43.158.010; 11
(e) Applying for state or federal grant funding;12
(f) Other activities for which funds in the climate commitment 13
account, or the natural climate solutions account created in RCW 14
70A.65.270, are eligible; and 15
(g) Other related work. 16
(3) In order to satisfy the requirements of RCW 70A.65.230(1)(b), 17
tribal applicants are encouraged to include a tribal resolution 18
supporting their request with their grant application.19
(4) The department must award funds available under this section 20
equally among grant applicants. 21
(5) Nothing in this section limits the authority of a tribe that 22
receives funds under this section to administratively object to or 23
legally appeal a qualifying energy project or component thereof or to 24
be eligible for grant funds under this section if they file such an 25
objection or appeal. 26
PART III27
MISCELLANEOUS28
NEW SECTION. Sec. 301. The following acts or parts of acts are 29
each repealed:30
(1) RCW 84.36.680 (Generation or storage of renewable energy) and 31
2023 c 427 s 1; and 32
(2) RCW 82.96.010 (Tax on renewable energy generation or storage— 33
Rates— Administration) and 2023 c 427 s 2. 34
NEW SECTION. Sec. 302. RCW 82.32.805 and 82.32.808 do not apply 35
to this act.36
p. 30 HB 1960
NEW SECTION. Sec. 303. If any provision of this act or its 1
application to any person or circumstance is held invalid, the 2
remainder of the act or the application of the provision to other 3
persons or circumstances is not affected.4
NEW SECTION. Sec. 304. Sections 101 through 107 and 111 of this 5
act apply to property taxes levied for collection in 2027 and 6
thereafter.7
NEW SECTION. Sec. 305. Sections 108 through 110 and 112 of this 8
act apply to property taxes levied for collection in 2026 and 9
thereafter.10
NEW SECTION. Sec. 306. This act takes effect January 1, 2026.11
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