Carbon capture

AN ACT Relating to the use of carbon capture and utilization, 1
mineralization, or sequestration technologies under the Washington 2
clean energy transformation act; amending RCW 19.405.020, 19.405.040, 3
19.405.050, 19.405.060, 19.405.080, 19.405.090, 19.405.160, and 4
19.405.170; and creating a new section. 5
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:6
NEW SECTION. Sec. 1. (1) The legislature finds that:7
(a) Washington has established ambitious policies to decarbonize 8
all sectors of the state's economy by 2050, including:9
(i) Economy-wide greenhouse gas emissions limits that reach 95 10
percent below 1990 levels and net-zero emissions by 2050, under 11
chapter 70A.45 RCW; and 12
(ii) A requirement that 100 percent of all sales of electricity 13
to Washington retail electric customers be met by nonemitting 14
electric generation and electricity from renewable resources by 15
January 1, 2045, under chapter 19.405 RCW; 16
(b) According to the 2025 northwest regional forecast of power 17
loads and resources, the northwest is dangerously close to 18
experiencing significant energy supply disruption as resource 19
additions in the region continue to lag behind unprecedented electric 20
H-2694.1
HOUSE BILL 2285
State of Washington 69th Legislature 2026 Regular Session
By Representatives Ybarra, Graham, and Barnard
Prefiled 01/07/26. Read first time 01/12/26. Referred to Committee
on Environment & Energy.
p. 1 HB 2285
demand growth, which could lead to blackouts during peak demand 1
events; 2
(c) In the summary report submitted to the legislature by the 3
department of commerce and utilities and transportation commission 4
following the 2025 long-term resource adequacy meeting, the agencies 5
acknowledge a need to consider potential changes to the state's mix 6
of generating resources with a greater focus on the capacity and fuel 7
requirements of the power system during critical periods, such as 8
days of extreme cold combined with low hydroelectric and wind 9
generation; 10
(d) Natural gas used to generate electricity will play an 11
increasingly critical role in the reliable operation of the region's 12
power system between now and 2050, particularly during periods of 13
extreme cold combined with low hydroelectric and wind generation;14
(e) Carbon capture and utilization, or storage technologies such 15
as mineralization or sequestration, including technologies for 16
mineralization and geological sequestration, are commercially viable 17
solutions for mitigating the greenhouse gas emissions associated with 18
electricity generation from natural gas systems; 19
(f) According to the 2021 Washington state energy strategy, 20
initial investigations by the United States geological survey show 21
meaningful potential for geological carbon storage in Washington, 22
while research by the Pacific Northwest national laboratory has shown 23
previously unrealized potential for carbon storage in the flood 24
basalts common to the state's landscape; and 25
(g) In the 2024 biennial update to the 2021 Washington state 26
energy strategy, the department of commerce identified clarifying the 27
eligibility of projects using carbon capture and storage under the 28
Washington clean energy transformation act as a priority strategy for 29
meeting the state's clean energy and decarbonization goals.30
(2) Therefore, it is the intent of the legislature to authorize 31
electric utilities to use electricity from natural gas systems 32
operated with carbon capture and utilization, mineralization, or 33
sequestration technology in meeting the 2030 and 2045 requirements of 34
the Washington clean energy transformation act. 35
Sec. 2. RCW 19.405.020 and 2025 c 221 s 1 are each amended to 36
read as follows: 37
The definitions in this section apply throughout this chapter 38
unless the context clearly requires otherwise. 39
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(1) "Allocation of electricity" means, for the purposes of 1
setting electricity rates, the costs and benefits associated with the 2
resources used to provide electricity to an electric utility's retail 3
electricity consumers that are located in this state.4
(2) "Alternative compliance payment" means the payment 5
established in RCW 19.405.090(2). 6
(3) "Attorney general" means the Washington state office of the 7
attorney general. 8
(4) "Auditor" means: (a) The Washington state auditor's office or 9
its designee for utilities under its jurisdiction under this chapter 10
that are consumer-owned utilities; or (b) an independent auditor 11
selected by a utility that is not under the jurisdiction of the state 12
auditor and is not an investor-owned utility. 13
(5)(a) "Biomass energy" includes: (i) Organic by-products of 14
pulping and the wood manufacturing process; (ii) animal manure; (iii) 15
solid organic fuels from wood; (iv) forest or field residues; (v) 16
untreated wooden demolition or construction debris; (vi) food waste 17
and food processing residuals; (vii) liquors derived from algae; 18
(viii) dedicated energy crops; and (ix) yard waste.19
(b) "Biomass energy" does not include: (i) Wood pieces that have 20
been treated with chemical preservatives such as creosote, 21
pentachlorophenol, or copper-chrome-arsenic; (ii) wood from old 22
growth forests; or (iii) municipal solid waste. 23
(6) "Carbon capture and utilization, mineralization, or 24
sequestration technology" means technology that has the principal 25
purpose of capturing and then any combination of reusing, storing, 26
mineralizing, sequestering, or using carbon dioxide emissions to 27
prevent carbon dioxide from entering the atmosphere, whether 28
constructed integral or adjacent to a natural gas system.29
(7) "Carbon dioxide equivalent" has the same meaning as defined 30
in RCW 70A.45.010. 31
(((7))) (8)(a) "Coal-fired resource" means a facility that uses 32
coal-fired generating units, or that uses units fired in whole or in 33
part by coal as feedstock, to generate electricity.34
(b)(i) "Coal-fired resource" does not include unspecified 35
electricity that is included as part of a limited duration wholesale 36
power purchase made by an electric utility for delivery to retail 37
electric customers that are located in this state, where the purchase 38
is: 39
(A)(I) For a contract duration not to exceed three months; or40
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(II) A purchase of system sales for a contract duration not to 1
exceed six months, provided that the purchase is used to demonstrate 2
compliance with the electric utility's seasonal resource adequacy 3
requirements under a regional resource adequacy program; and4
(B) Not used for the purpose of avoiding the restrictions on 5
coal-fired resources under RCW 19.405.030. 6
(ii) "Coal-fired resource" does not include an electric 7
generating facility that is subject to an obligation to meet the 8
standards contained in RCW 80.80.040(3)(c). 9
(((8))) (9) "Commission" means the Washington utilities and 10
transportation commission. 11
(((9))) (10) "Conservation and efficiency resources" means any 12
reduction in electric power consumption that results from increases 13
in the efficiency of energy use, production, transmission, or 14
distribution. 15
(((10))) (11) "Consumer-owned utility" means a municipal electric 16
utility formed under Title 35 RCW, a public utility district formed 17
under Title 54 RCW, an irrigation district formed under chapter 87.03 18
RCW, a cooperative formed under chapter 23.86 RCW, or a mutual 19
corporation or association formed under chapter 24.06 RCW, that is 20
engaged in the business of distributing electricity to more than one 21
retail electric customer in the state. 22
(((11))) (12) "Demand response" means changes in electric usage 23
by demand-side resources from their normal consumption patterns in 24
response to changes in the price of electricity, or to incentive 25
payments designed to induce lower electricity use, at times of high 26
wholesale market prices or when system reliability is jeopardized. 27
"Demand response" may include measures to increase or decrease 28
electricity production on the customer's side of the meter in 29
response to incentive payments. 30
(((12))) (13) "Department" means the department of commerce.31
(((13))) (14) "Distributed energy resource" means a nonemitting 32
electric generation ((or)), renewable resource , electricity from 33
natural gas systems operated with carbon capture and utilization, 34
mineralization, or sequestration technology, or program that reduces 35
electric demand, manages the level or timing of electricity 36
consumption, or provides storage, electric energy, capacity, or 37
ancillary services to an electric utility and that is located on the 38
distribution system, any subsystem of the distribution system, or 39
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behind the customer meter, including conservation and energy 1
efficiency. 2
(((14))) (15) "Electric utility" or "utility" means a consumer-3
owned utility or an investor-owned utility. 4
(((15))) (16) "Energy assistance" means a program undertaken by a 5
utility to reduce the household energy burden of its customers.6
(a) Energy assistance includes, but is not limited to, 7
weatherization, conservation and efficiency services, and monetary 8
assistance, such as a grant program or discounts for lower income 9
households, intended to lower a household's energy burden.10
(b) Energy assistance may include direct customer ownership in 11
distributed energy resources or other strategies if such strategies 12
achieve a reduction in energy burden for the customer above other 13
available conservation and demand-side measures. 14
(((16))) (17) "Energy assistance need" means the amount of 15
assistance necessary to achieve a level of household energy burden 16
established by the department or commission. 17
(((17))) (18) "Energy burden" means the share of annual household 18
income used to pay annual home energy bills. 19
(((18))) (19)(a) "Energy transformation project" means a project 20
or program that: Provides energy-related goods or services, other 21
than the generation of electricity; results in a reduction of fossil 22
fuel consumption and in a reduction of the emission of greenhouse 23
gases attributable to that consumption; and provides benefits to the 24
customers of an electric utility. 25
(b) "Energy transformation project" may include but is not 26
limited to: 27
(i) Home weatherization or other energy efficiency measures, 28
including market transformation for energy efficiency products, in 29
excess of: The target established under RCW 19.285.040(1), if 30
applicable; other state obligations; or other obligations in effect 31
on May 7, 2019; 32
(ii) Support for electrification of the transportation sector 33
including, but not limited to: 34
(A) Equipment on an electric utility's transmission and 35
distribution system to accommodate electric vehicle connections, as 36
well as smart grid systems that enable electronic interaction between 37
the electric utility and charging systems, and facilitate the 38
utilization of vehicle batteries for system needs;39
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(B) Incentives for the sale or purchase of electric vehicles, 1
both battery and fuel cell powered, as authorized under state or 2
federal law; 3
(C) Incentives for the installation of charging equipment for 4
electric vehicles; 5
(D) Incentives for the electrification of vehicle fleets 6
utilizing a battery or fuel cell for electric supply;7
(E) Incentives to install and operate equipment to produce or 8
distribute renewable hydrogen; and 9
(F) Incentives for renewable hydrogen fueling stations;10
(iii) Investment in distributed energy resources and grid 11
modernization to facilitate distributed energy resources and improved 12
grid resilience; 13
(iv) Investments in equipment for renewable natural gas 14
processing, conditioning, and production, or equipment or 15
infrastructure used solely for the purpose of delivering renewable 16
natural gas for consumption or distribution; 17
(v) Contributions to self-directed investments in the following 18
measures to serve the sites of large industrial gas and electrical 19
customers: (A) Conservation; (B) new renewable resources; (C) behind-20
the-meter technology that facilitates demand response cooperation to 21
reduce peak loads; (D) infrastructure to support electrification of 22
transportation needs, including battery and fuel cell 23
electrification; or (E) renewable natural gas processing, 24
conditioning, or production; and 25
(vi) Projects and programs that achieve energy efficiency and 26
emission reductions in the agricultural sector, including bioenergy 27
and renewable natural gas projects. 28
(((19))) (20) "Fossil fuel" means natural gas, petroleum, coal, 29
or any form of solid, liquid, or gaseous fuel derived from such a 30
material. 31
(((20))) (21) "Governing body" means: The council of a city or 32
town; the commissioners of an irrigation district, municipal electric 33
utility, or public utility district; or the board of directors of an 34
electric cooperative or mutual association that has the authority to 35
set and approve rates. 36
(((21))) (22) "Greenhouse gas" includes carbon dioxide, methane, 37
nitrous oxide, hydrofluorocarbons, perfluorocarbons, sulfur 38
hexafluoride, and any other gas or gases designated by the department 39
of ecology by rule under RCW 70A.45.010. 40
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(((22))) (23) "Highly impacted community" means a community 1
designated by the department of health based on cumulative impact 2
analyses in RCW 19.405.140 or a community located in census tracts 3
that are fully or partially on "Indian country" as defined in 18 4
U.S.C. Sec. 1151. 5
(((23))) (24) "Investor-owned utility" means a company owned by 6
investors that meets the definition of "corporation" in RCW 80.04.010 7
and is engaged in distributing electricity to more than one retail 8
electric customer in the state. 9
(((24))) (25) "Low-income" means household incomes as defined by 10
the department or commission, provided that the definition may not 11
exceed the higher of ((eighty)) 80 percent of area median household 12
income or ((two hundred )) 200 percent of the federal poverty level, 13
adjusted for household size. 14
(((25))) (26)(a) "Market customer" means a nonresidential 15
customer of an electric utility that: (i) Purchases electricity from 16
an entity or entities other than the utility with which it is 17
directly interconnected; or (ii) generates electricity to meet ((one 18
hundred)) 100 percent of its own needs. 19
(b) An "affected market customer" is a customer of a utility who 20
becomes a market customer after May 7, 2019. 21
(((26))) (27)(a) "Natural gas" means naturally occurring mixtures 22
of hydrocarbon gases and vapors consisting principally of methane, 23
whether in gaseous or liquid form, including methane clathrate.24
(b) "Natural gas" does not include renewable natural gas or the 25
portion of renewable natural gas when blended into other fuels.26
(((27))) (c) "Natural gas" does not include a natural gas system 27
operated with carbon capture and utilization, mineralization, or 28
sequestration technology in a manner consistent with RCW 29
19.405.050(7).30
(28)(a) "Nonemitting electric generation" means electricity from 31
a generating facility or a resource that provides electric energy, 32
capacity, or ancillary services to an electric utility and that does 33
not emit greenhouse gases as a by-product of energy generation.34
(b) "Nonemitting electric generation" does not include renewable 35
resources. 36
(((28))) (29)(a) "Nonpower attributes" means all environmentally 37
related characteristics, exclusive of energy, capacity reliability, 38
and other electrical power service attributes, that are associated 39
with the generation of electricity, including but not limited to the 40
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facility's fuel type, geographic location, vintage, qualification as 1
a renewable resource, and avoided emissions of pollutants to the air, 2
soil, or water, and avoided emissions of carbon dioxide and other 3
greenhouse gases. 4
(b) "Nonpower attributes" does not include any aspects, claims, 5
characteristics, and benefits associated with the on-site capture and 6
destruction of methane or other greenhouse gases at a facility 7
through a digester system, landfill gas collection system, or other 8
mechanism, which may be separately marketable as greenhouse gas 9
emission reduction credits, offsets, or similar tradable commodities. 10
However, these separate avoided emissions may not result in or 11
otherwise have the effect of attributing greenhouse gas emissions to 12
the electricity. 13
(((29))) (30) "Qualified transmission line" means an overhead 14
transmission line that is: (a) Designed to carry a voltage in excess 15
of ((one hundred thousand )) 100,000 volts; (b) owned in whole or in 16
part by an investor-owned utility; and (c) primarily or exclusively 17
used by such an investor-owned utility as of May 7, 2019, to transmit 18
electricity generated by a coal-fired resource. 19
(((30))) (31) "Renewable energy credit" means a tradable 20
certificate of proof of one megawatt-hour of a renewable resource. 21
The certificate includes all of the nonpower attributes associated 22
with that one megawatt-hour of electricity and the certificate is 23
verified by a renewable energy credit tracking system selected by the 24
department. 25
(((31))) (32) "Renewable hydrogen" means hydrogen produced using 26
renewable resources both as the source for the hydrogen and the 27
source for the energy input into the production process.28
(((32))) (33) "Renewable natural gas" means a gas consisting 29
largely of methane and other hydrocarbons derived from the 30
decomposition of organic material in landfills, wastewater treatment 31
facilities, and anaerobic digesters. 32
(((33))) (34) "Renewable resource" means: (a) Water; (b) wind; 33
(c) solar energy; (d) geothermal energy; (e) renewable natural gas; 34
(f) renewable hydrogen; (g) wave, ocean, or tidal power; (h) 35
biodiesel fuel that is not derived from crops raised on land cleared 36
from old growth or first growth forests; or (i) biomass energy.37
(((34))) (35)(a) "Retail electric customer" means a person or 38
entity that purchases electricity from any electric utility for 39
ultimate consumption and not for resale. 40
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(b) "Retail electric customer" does not include, in the case of 1
any electric utility, any person or entity that purchases electricity 2
exclusively from carbon-free and eligible renewable resources, as 3
defined in RCW 19.285.030 as of January 1, 2019, pursuant to a 4
special contract with an investor-owned utility approved by an order 5
of the commission prior to May 7, 2019. 6
(((35))) (36) "Retail electric load" means the amount of 7
megawatt-hours of electricity delivered in a given calendar year by 8
an electric utility to its Washington retail electric customers. 9
"Retail electric load" does not include: 10
(a) Megawatt-hours delivered from qualifying facilities under the 11
federal public utility regulatory policies act of 1978, P.L. 95-617, 12
in operation prior to May 7, 2019, provided that no entity other than 13
the electric utility can make a claim on delivery of the megawatt-14
hours from those resources; or 15
(b) Megawatt-hours delivered to an electric utility's system from 16
a renewable resource through a voluntary renewable energy purchase by 17
a retail electric customer of the utility in which the renewable 18
energy credits associated with the megawatt-hours delivered are 19
retired on behalf of the retail electric customer.20
(((36))) (37) "Thermal renewable energy credit" means, with 21
respect to a facility that generates electricity using biomass energy 22
that also generates thermal energy for a secondary purpose, a 23
renewable energy credit that is equivalent to three million four 24
hundred twelve thousand British thermal units of energy used for such 25
secondary purpose. 26
(((37))) (38) "Unbundled renewable energy credit" means a 27
renewable energy credit that is sold, delivered, or purchased 28
separately from electricity. All thermal renewable energy credits are 29
considered unbundled renewable energy credits. 30
(((38))) (39) "Unspecified electricity" means an electricity 31
source for which the fuel attribute is unknown or has been separated 32
from the energy delivered to retail electric customers.33
(((39))) (40) "Vulnerable populations" means communities that 34
experience a disproportionate cumulative risk from environmental 35
burdens due to: 36
(a) Adverse socioeconomic factors, including unemployment, high 37
housing and transportation costs relative to income, access to food 38
and health care, and linguistic isolation; and 39
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(b) Sensitivity factors, such as low birth weight and higher 1
rates of hospitalization. 2
Sec. 3. RCW 19.405.040 and 2019 c 288 s 4 are each amended to 3
read as follows: 4
(1) It is the policy of the state that all retail sales of 5
electricity to Washington retail electric customers be greenhouse gas 6
neutral by January 1, 2030. 7
(a) For the four-year compliance period beginning January 1, 8
2030, and for each multiyear compliance period thereafter through 9
December 31, 2044, an electric utility must demonstrate its 10
compliance with this standard using a combination of nonemitting 11
electric generation ((and)), electricity from renewable resources, 12
and electricity from natural gas systems operated with carbon capture 13
and utilization, mineralization, or sequestration technology in a 14
manner consistent with RCW 19.405.050(7), or alternative compliance 15
options, as provided in this section. To achieve compliance with this 16
standard, an electric utility must: (i) Pursue all cost-effective, 17
reliable, and feasible conservation and efficiency resources to 18
reduce or manage retail electric load, using the methodology 19
established in RCW 19.285.040, if applicable; and (ii) use 20
electricity from renewable resources ((and)), nonemitting electric 21
generation, and natural gas systems operated with carbon capture and 22
utilization, mineralization, or sequestration technology in a manner 23
consistent with RCW 19.405.050(7) in an amount equal to ((one 24
hundred)) 100 percent of the utility's retail electric loads over 25
each multiyear compliance period. An electric utility must achieve 26
compliance with this standard for the following compliance periods: 27
January 1, 2030, through December 31, 2033; January 1, 2034, through 28
December 31, 2037; January 1, 2038, through December 31, 2041; and 29
January 1, 2042, through December 31, 2044. 30
(b) Through December 31, 2044, an electric utility may satisfy up 31
to ((twenty)) 20 percent of its compliance obligation under (a) of 32
this subsection with an alternative compliance option consistent with 33
this section. An alternative compliance option may include any 34
combination of the following: 35
(i) Making an alternative compliance payment under RCW 36
19.405.090(2); 37
(ii) Using unbundled renewable energy credits, provided that 38
there is no double counting of any nonpower attributes associated 39
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with renewable energy credits within Washington or programs in other 1
jurisdictions, as follows: 2
(A) Unbundled renewable energy credits produced from eligible 3
renewable resources, as defined under RCW 19.285.030, which may be 4
used by the electric utility for compliance with RCW 19.285.040 and 5
this section as provided under RCW 19.285.040(2)(e); and6
(B) Unbundled renewable energy credits, other than those included 7
in (b)(ii)(A) of this subsection, that represent electricity 8
generated within the compliance period; 9
(iii) Investing in energy transformation projects, including 10
additional conservation and efficiency resources beyond what is 11
otherwise required under this section, provided the projects meet the 12
requirements of subsection (2) of this section and are not credited 13
as resources used to meet the standard under (a) of this subsection; 14
or 15
(iv) Using electricity from an energy recovery facility using 16
municipal solid waste as the principal fuel source, where the 17
facility was constructed prior to 1992, and the facility is operated 18
in compliance with federal laws and regulations and meets state air 19
quality standards. An electric utility may only use electricity from 20
such an energy recovery facility if the department and the department 21
of ecology determine that electricity generation at the facility 22
provides a net reduction in greenhouse gas emissions compared to any 23
other available waste management best practice. The determination 24
must be based on a life-cycle analysis comparing the energy recovery 25
facility to other technologies available in the jurisdiction in which 26
the facility is located for the waste management best practices of 27
waste reduction, recycling, composting, and minimizing the use of a 28
landfill. 29
(c) Electricity from renewable resources used to meet the 30
standard under (a) of this subsection must be verified by the 31
retirement of renewable energy credits. Renewable energy credits must 32
be tracked and retired in the tracking system selected by the 33
department. 34
(d) Hydroelectric generation used by an electric utility in 35
meeting the standard under (a) of this subsection may not include new 36
diversions, new impoundments, new bypass reaches, or expansion of 37
existing reservoirs constructed after May 7, 2019, unless the 38
diversions, bypass reaches, or reservoir expansions are necessary for 39
the operation of a pumped storage facility that: (i) Does not 40
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conflict with existing state or federal fish recovery plans; and (ii) 1
complies with all local, state, and federal laws and regulations.2
(e) Nothing in (d) of this subsection precludes an electric 3
utility that owns and operates hydroelectric generating facilities, 4
or the owner of a hydroelectric generating facility whose energy 5
output is marketed by the Bonneville power administration, from 6
making efficiency or other improvements to its hydroelectric 7
generating facilities existing as of May 7, 2019, or from installing 8
hydroelectric generation in pipes, culverts, irrigation canals, and 9
other man-made waterways, as long as those changes do not create 10
conflicts with existing state or federal fish recovery plans and 11
comply with all local, state, and federal laws and regulations.12
(f) Nonemitting electric generation used to meet the standard 13
under (a) of this subsection must be generated during the compliance 14
period and must be verified by documentation that the electric 15
utility owns the nonpower attributes of the electricity generated by 16
the nonemitting electric generation resource. 17
(g) Nothing in this section prohibits an electric utility from 18
purchasing or exchanging power from the Bonneville power 19
administration. 20
(2) Investments in energy transformation projects used to satisfy 21
an alternative compliance option provided under subsection (1)(b) of 22
this section must use criteria developed by the department of 23
ecology, in consultation with the department and the commission. For 24
the purpose of crediting an energy transformation project toward the 25
standard in subsection (1)(a) of this section, the department of 26
ecology must establish a conversion factor of emissions reductions 27
resulting from energy transformation projects to megawatt-hours of 28
electricity from nonemitting electric generation that is consistent 29
with the emission factors for unspecified electricity, or for energy 30
transformation projects in the transportation sector, consistent with 31
default emissions or conversion factors established by other 32
jurisdictions for clean alternative fuels. Emissions reductions from 33
energy transformation projects must be: 34
(a) Real, specific, identifiable, and quantifiable;35
(b) Permanent: The department of ecology must look to other 36
jurisdictions in setting this standard and make a reasonable 37
determination on length of time; 38
(c) Enforceable by the state of Washington; 39
(d) Verifiable; 40
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(e) Not required by another statute, rule, or other legal 1
requirement; and 2
(f) Not reasonably assumed to occur absent investment, or if an 3
investment has already been made, not reasonably assumed to occur 4
absent additional funding in the near future. 5
(3) Energy transformation projects must be associated with the 6
consumption of energy in Washington and must not create a new use of 7
fossil fuels that results in a net increase of fossil fuel usage.8
(4) The compliance eligibility of energy transformation projects 9
may be scaled or prorated by an approved protocol in order to 10
distinguish effects related to reductions in electricity usage from 11
reductions in fossil fuel usage. 12
(5) Any compliance obligation fulfilled through an investment in 13
an energy transformation project is eligible for use only: (a) By the 14
electric utility that makes the investment; (b) if the investment is 15
made by the Bonneville power administration, by electric utilities 16
that are preference customers of the Bonneville power administration; 17
or (c) if the investment is made by a joint operating agency 18
organized under chapter 43.52 RCW, by a member of the joint operating 19
agency. An electric utility making an investment in partnership with 20
another electric utility or entity may claim credit proportional to 21
its share invested in the total project cost. 22
(6)(a) In meeting the standard under subsection (1) of this 23
section, an electric utility must, consistent with the requirements 24
of RCW 19.285.040, if applicable, pursue all cost-effective, 25
reliable, and feasible conservation and efficiency resources, and 26
demand response. In making new investments, an electric utility must, 27
to the maximum extent feasible: 28
(i) Achieve targets at the lowest reasonable cost, considering 29
risk; 30
(ii) Consider acquisition of existing renewable resources; and31
(iii) In the acquisition of new resources constructed after May 32
7, 2019, rely on renewable resources and energy storage, insofar as 33
doing so is consistent with (a)(i) of this subsection.34
(b) Electric utilities subject to RCW 19.285.040 must demonstrate 35
pursuit of all conservation and efficiency resources through 36
compliance with the requirements in RCW 19.285.040.37
(7) An electric utility that fails to meet the requirements of 38
this section must pay the administrative penalty established under 39
RCW 19.405.090(1), except as otherwise provided in this chapter.40
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(8) In complying with this section, an electric utility must, 1
consistent with the requirements of RCW 19.280.030 and 19.405.140, 2
ensure that all customers are benefiting from the transition to clean 3
energy: Through the equitable distribution of energy and nonenergy 4
benefits and reduction of burdens to vulnerable populations and 5
highly impacted communities; long-term and short-term public health 6
and environmental benefits and reduction of costs and risks; and 7
energy security and resiliency. 8
(9) Carbon capture and utilization, mineralization, or 9
sequestration technology that is operated with a natural gas system 10
in a manner consistent with RCW 19.405.050(7) and used by an electric 11
utility to satisfy the requirements of this section must comply with 12
all local, state, and federal laws and regulations.13
(10) Affected market customers must comply with the standard 14
established under subsection (1) of this section. 15
(((10))) (11) A market customer that purchases electricity 16
exclusively from carbon-free resources and eligible renewable 17
resources, as defined in RCW 19.285.030 as of January 1, 2019, 18
pursuant to a special contract with an investor-owned utility 19
approved, prior to May 7, 2019, by order of the commission is subject 20
to the requirements of such an order and not to the standard 21
established in this section. For purposes of interpreting any such 22
special contract, chapter 19.285 RCW, as in effect on January 1, 23
2019, is not, either directly or indirectly, amended or supplemented.24
(((11))) (12) To reduce costs for utility customers or avoid 25
exceeding the cost impact limit in RCW 19.405.060(3)(a), a multistate 26
electric utility with fewer than two hundred fifty thousand customers 27
in Washington may apply the total amount of megawatt-hours of coal-28
fired resources eliminated from the utility's allocation of 29
electricity before December 31, 2025, as an equivalent amount of 30
megawatt-hours of nonemitting electric generation or electricity from 31
renewable resources required to comply with subsection (1)(a) of this 32
section. The utility must demonstrate that for every megawatt-hour of 33
early action compliance credit there is a real, permanent reduction 34
in greenhouse gas emissions in the western interconnection directly 35
associated with that credit. A multistate electric utility must 36
request to use early action compliance credit in its clean energy 37
implementation plan that is submitted under RCW 19.405.060. The 38
multistate electric utility must specify in its clean energy 39
implementation plan the compliance years to which the early action 40
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compliance credit will apply, but in no event may the multistate 1
electric utility use the early action compliance credits beyond 2035. 2
The commission must establish conditions for use of early action 3
compliance credits, including a determination of whether action 4
constitutes early action, before the multistate electric utility's 5
use of early action compliance credits in a clean energy 6
implementation plan. 7
Sec. 4. RCW 19.405.050 and 2019 c 288 s 5 are each amended to 8
read as follows: 9
(1) It is the policy of the state that nonemitting electric 10
generation ((and)), electricity from renewable resources , and 11
electricity from natural gas systems operated with carbon capture and 12
utilization, mineralization, or sequestration technology in a manner 13
consistent with subsection (7) of this section supply ((one hundred)) 14
100 percent of all sales of electricity to Washington retail electric 15
customers by January 1, 2045. By January 1, 2045, and each year 16
thereafter, each electric utility must demonstrate its compliance 17
with this standard using a combination of nonemitting electric 18
generation ((and)), electricity from renewable resources , and 19
electricity from natural gas systems operated with carbon capture and 20
utilization, mineralization, or sequestration technology in a manner 21
consistent with subsection (7) of this section. 22
(2) Each electric utility must incorporate subsection (1) of this 23
section into all relevant planning and resource acquisition practices 24
including, but not limited to: Resource planning under chapter 19.280 25
RCW; the construction or acquisition of property, including electric 26
generating facilities; and the provision of electricity service to 27
retail electric customers. 28
(3) In planning to meet projected demand consistent with the 29
requirements of subsection (2) of this section and RCW 19.285.040, if 30
applicable, an electric utility must pursue all cost-effective, 31
reliable, and feasible conservation and efficiency resources, and 32
demand response. In making new investments, an electric utility must, 33
to the maximum extent feasible: 34
(a) Achieve targets at the lowest reasonable cost, considering 35
risk; 36
(b) Consider acquisition of existing renewable resources; and37
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(c) In the acquisition of new resources constructed after May 7, 1
2019, rely on renewable resources and energy storage, insofar as 2
doing so is consistent with (a) of this subsection.3
(4) The commission, department, energy facility site evaluation 4
council, department of ecology, and all other state agencies must 5
incorporate this section into all relevant planning and utilize all 6
programs authorized by statute to achieve subsection (1) of this 7
section. 8
(5)(a) Hydroelectric generation used by an electric utility to 9
satisfy the requirements of this section may not include new 10
diversions, new impoundments, new bypass reaches, or expansion of 11
existing reservoirs constructed after May 7, 2019, unless the 12
diversions, bypass reaches, or reservoir expansions are necessary for 13
the operation of a pumped storage facility that: (i) Does not 14
conflict with existing state or federal fish recovery plans; and (ii) 15
complies with all local, state, and federal laws and regulations.16
(b) Nothing in (a) of this subsection precludes an electric 17
utility that owns and operates hydroelectric generating facilities, 18
or the owner of a hydroelectric generating facility whose energy 19
output is marketed by the Bonneville power administration, from 20
making efficiency or other improvements to its hydroelectric 21
generating facilities existing as of May 7, 2019, or from installing 22
hydroelectric generation in pipes, culverts, irrigation canals, and 23
other man-made waterways as long as those changes do not create 24
conflicts with existing state or federal fish recovery plans and 25
comply with all local, state, and federal laws and regulations.26
(6) Nothing in this section prohibits an electric utility from 27
purchasing or exchanging power from the Bonneville power 28
administration. 29
(7)(a) Carbon capture and utilization, mineralization, or 30
sequestration technology that is operated with a natural gas system 31
and used by an electric utility to satisfy the requirements of this 32
section must:33
(i) Comply with all local, state, and federal laws and 34
regulations; and35
(ii) Have a capture design capacity of not less than 75 percent 36
of the baseline carbon dioxide production of each natural gas system 37
for which such technology is installed.38
(b) For the purposes of this subsection, "baseline carbon dioxide 39
production" means:40
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(i) In the case of an applicable natural gas system that was 1
originally placed in service more than one year prior to the date on 2
which construction of the carbon capture and utilization, 3
mineralization, or sequestration technology begins, the average 4
annual carbon dioxide production, by mass, from such system during:5
(A) In the case of an applicable natural gas system that was 6
originally placed in service up to three years prior to the date on 7
which construction of the carbon capture utilization, mineralization, 8
or sequestration technology begins, the period beginning on the date 9
such system was placed in service and ending the date on which 10
construction of such technology began; and11
(B) In the case of an applicable natural gas system that was 12
originally placed in service more than three years prior to the date 13
on which construction of the carbon capture and utilization, 14
mineralization, or sequestration technology begins, the three years 15
with the highest annual carbon dioxide production during the 12-year 16
period preceding the date on which construction of such technology 17
began;18
(ii) In the case of an applicable natural gas system that: (A) As 19
of the date on which construction of the carbon capture and 20
utilization, mineralization, or sequestration technology begins, is 21
not yet placed in service; or (B) was placed in service during the 22
one-year period prior to the date on which construction of the carbon 23
capture and utilization, mineralization, or sequestration technology 24
begins, the designed annual carbon dioxide production, by mass, as 25
determined based on an assumed capacity factor of 60 percent.26
(8) Affected market customers must comply with the obligations of 27
this section. 28
(((8))) (9) Any market customer that purchases electricity 29
exclusively from carbon-free resources and eligible renewable 30
resources, as defined in RCW 19.285.030 as of January 1, 2019, 31
pursuant to a special contract with an investor-owned utility 32
approved, prior to May 7, 2019, by order of the commission is subject 33
to the requirements of such an order and not to the standards 34
established in this section. For the purposes of interpreting such a 35
special contract, chapter 19.285 RCW, as in effect on January 1, 36
2019, is not, either directly or indirectly, amended or supplemented.37
Sec. 5. RCW 19.405.060 and 2024 c 351 s 14 are each amended to 38
read as follows: 39
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(1)(a) By January 1, 2022, and every four years thereafter, each 1
investor-owned utility must develop and submit to the commission:2
(i) A four-year clean energy implementation plan for the 3
standards established under RCW 19.405.040(1) and 19.405.050(1) that 4
proposes specific targets for energy efficiency, demand response, and 5
renewable energy; and 6
(ii) Proposed interim targets for meeting the standard under RCW 7
19.405.040(1) during the years prior to 2030 and between 2030 and 8
2045. 9
(b) An investor-owned utility's clean energy implementation plan 10
must: 11
(i) Be informed by the investor-owned utility's clean energy 12
action plan developed under RCW 19.280.030; 13
(ii) Be consistent with subsection (3) of this section; and14
(iii) Identify specific actions to be taken by the investor-owned 15
utility over the next four years, consistent with the utility's long-16
range integrated resource plan and resource adequacy requirements, 17
that demonstrate progress toward meeting the standards under RCW 18
19.405.040(1) and 19.405.050(1) and the interim targets proposed 19
under (a)(i) of this subsection. The specific actions identified must 20
be informed by the investor-owned utility's historic performance 21
under median water conditions and resource capability and by the 22
investor-owned utility's participation in centralized markets. In 23
identifying specific actions in its clean energy implementation plan, 24
the investor-owned utility may also take into consideration any 25
significant and unplanned loss or addition of load it experiences.26
(c) The commission, after a hearing, must by order approve, 27
reject, or approve with conditions an investor-owned utility's clean 28
energy implementation plan and interim targets. The commission may, 29
in its order, recommend or require more stringent targets than those 30
proposed by the investor-owned utility. The commission may 31
periodically adjust or expedite timelines if it can be demonstrated 32
that the targets or timelines can be achieved in a manner consistent 33
with the following: 34
(i) Maintaining and protecting the safety, reliable operation, 35
and balancing of the electric system; 36
(ii) Planning to meet the standards at the lowest reasonable 37
cost, considering risk; 38
(iii) Ensuring that all customers are benefiting from the 39
transition to clean energy: Through the equitable distribution of 40
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energy and nonenergy benefits and the reduction of burdens to 1
vulnerable populations and highly impacted communities; long-term and 2
short-term public health and environmental benefits and reduction of 3
costs and risks; and energy security and resiliency; and4
(iv) Ensuring that no customer or class of customers is 5
unreasonably harmed by any resulting increases in the cost of 6
utility-supplied electricity as may be necessary to comply with the 7
standards. 8
(2)(a) By January 1, 2022, and every four years thereafter, each 9
consumer-owned utility must develop and submit to the department a 10
four-year clean energy implementation plan for the standards 11
established under RCW 19.405.040(1) and 19.405.050(1) that:12
(i) Proposes interim targets for meeting the standard under RCW 13
19.405.040(1) during the years prior to 2030 and between 2030 and 14
2045, as well as specific targets for energy efficiency, demand 15
response, and renewable energy; 16
(ii) Is informed by the consumer-owned utility's clean energy 17
action plan developed under RCW 19.280.030(1) or other ten-year plan 18
developed under RCW 19.280.030(5); 19
(iii) Is consistent with subsection (4) of this section; and20
(iv) Identifies specific actions to be taken by the consumer-21
owned utility over the next four years, consistent with the utility's 22
long-range resource plan and resource adequacy requirements, that 23
demonstrate progress towards meeting the standards under RCW 24
19.405.040(1) and 19.405.050(1) and the interim targets proposed 25
under (a)(i) of this subsection. The specific actions identified must 26
be informed by the consumer-owned utility's historic performance 27
under median water conditions and resource capability and by the 28
consumer-owned utility's participation in centralized markets. In 29
identifying specific actions in its clean energy implementation plan, 30
the consumer-owned utility may also take into consideration any 31
significant and unplanned loss or addition of load it experiences.32
(b) The governing body of the consumer-owned utility must, after 33
a public meeting, adopt the consumer-owned utility's clean energy 34
implementation plan. The clean energy implementation plan must be 35
submitted to the department and made available to the public. The 36
governing body may adopt more stringent targets than those proposed 37
by the consumer-owned utility and periodically adjust or expedite 38
timelines if it can be demonstrated that such targets or timelines 39
can be achieved in a manner consistent with the following:40
p. 19 HB 2285
(i) Maintaining and protecting the safety, reliable operation, 1
and balancing of the electric system; 2
(ii) Planning to meet the standards at the lowest reasonable 3
cost, considering risk; 4
(iii) Ensuring that all customers are benefiting from the 5
transition to clean energy: Through the equitable distribution of 6
energy and nonenergy benefits and reduction of burdens to vulnerable 7
populations and highly impacted communities; long-term and short-term 8
public health and environmental benefits and reduction of costs and 9
risks; and energy security and resiliency; and 10
(iv) Ensuring that no customer or class of customers is 11
unreasonably harmed by any resulting increases in the cost of 12
utility-supplied electricity as may be necessary to comply with the 13
standards. 14
(3)(a) An investor-owned utility must be considered to be in 15
compliance with the standards under RCW 19.405.040(1) and 16
19.405.050(1) if, over the four-year compliance period, the average 17
annual incremental cost of meeting the standards or the interim 18
targets established under subsection (1) of this section equals a two 19
percent increase of the investor-owned utility's weather-adjusted 20
sales revenue to customers for electric operations above the previous 21
year, as reported by the investor-owned utility in its most recent 22
commission basis report. All costs included in the determination of 23
cost impact must be directly attributable to actions necessary to 24
comply with the requirements of RCW 19.405.040 and 19.405.050.25
(b) If an investor-owned utility relies on (a) of this subsection 26
as a basis for compliance with the standard under RCW 19.405.040(1), 27
then it must demonstrate that it has maximized investments in 28
renewable resources , electricity from a natural gas system operated 29
with carbon capture and utilization, mineralization, or sequestration 30
technology in a manner consistent with RCW 19.405.050(7), and 31
nonemitting electric generation prior to using alternative compliance 32
options allowed under RCW 19.405.040(1)(b). 33
(4)(a) A consumer-owned utility must be considered to be in 34
compliance with the standards under RCW 19.405.040(1) and 35
19.405.050(1) if, over the four-year compliance period, the average 36
annual incremental cost of meeting the standards or the interim 37
targets established under subsection (2) of this section meets or 38
exceeds a two percent increase of the consumer-owned utility's retail 39
revenue requirement above the previous year. All costs included in 40
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the determination of cost impact must be directly attributable to 1
actions necessary to comply with the requirements of RCW 19.405.040 2
and 19.405.050. 3
(b) If a consumer-owned utility relies on (a) of this subsection 4
as a basis for compliance with the standard under RCW 19.405.040(1), 5
and it has not met ((eighty)) 80 percent of its annual retail 6
electric load using electricity from renewable resources , electricity 7
from a natural gas system operated with carbon capture and 8
utilization, mineralization, or sequestration technology in a manner 9
consistent with RCW 19.405.050(7), and nonemitting electric 10
generation, then it must demonstrate that it has maximized 11
investments in renewable resources , carbon capture and utilization, 12
mineralization, or sequestration technology consistent with RCW 13
19.405.050(7), and nonemitting electric generation prior to using 14
alternative compliance options allowed under RCW 19.405.040(1)(b).15
(5) The commission, for investor-owned utilities, and the 16
department, for consumer-owned utilities, must adopt rules 17
establishing the methodology for calculating the incremental cost of 18
compliance under this section, as compared to the cost of an 19
alternative lowest reasonable cost portfolio of investments that are 20
reasonably available. 21
(6) The commission may require a large combination utility as 22
defined in RCW 80.86.010 to incorporate the requirements of this 23
section into an integrated system plan established under RCW 24
80.86.020. 25
Sec. 6. RCW 19.405.080 and 2019 c 288 s 8 are each amended to 26
read as follows: 27
By January 1, 2024, and at least every four years thereafter and 28
in compliance with RCW 43.01.036, the department must submit a report 29
to the legislature. The report must include the following:30
(1) A review of the standards described in RCW 19.405.030 through 31
19.405.050 focused on technologies, forecasts, and existing 32
transmission, and an evaluation of safety, environmental and public 33
safety protection, affordability, and system reliability.34
(2)(a) An evaluation, produced in consultation with the 35
commission, electric utilities, transmission operators in Washington, 36
the reliability coordinator for electric utilities, any regional 37
planning organization serving electric utilities, public interest and 38
environmental organizations, and the regional entity for the western 39
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interconnection identifying the potential benefits, impacts, and 1
risks on system reliability associated with achieving the standards 2
described in RCW 19.405.040 and 19.405.050. The evaluation must 3
assess whether electric utilities have sufficient electric generation 4
resources to meet forecasted retail electric load in addition to 5
adequate transmission capability to implement RCW 19.405.030 through 6
19.405.050 without: (i) Violating mandatory and enforceable 7
reliability standards of the North American electric reliability 8
corporation; (ii) violating prudent utility practice for assuring 9
resource adequacy; or (iii) compromising the power quality or 10
integrity of the electricity system. Subject to funding appropriated 11
for this purpose, the department must consult with a national 12
laboratory with expertise in grid reliability, security, and 13
resilience. 14
(b) The evaluation should assess the anticipated financial costs 15
and benefits of investments necessary to correct those deficiencies 16
at the lowest reasonable costs as identified by electric utilities, 17
transmission operators in Washington, the regional entity for the 18
western interconnection, or any regional planning organization 19
serving electric utilities. The assessment of these investments in 20
the report is not deemed to be approval of such investments for rate 21
recovery by any authorizing entity. 22
(3) An evaluation identifying the nature of any anticipated 23
financial costs and benefits to electric utilities, including 24
customer rate impacts and benefits including, but not limited to:25
(a) Greenhouse gas emissions of electric utilities;26
(b) The allocation of risk between customers and electric 27
utilities; 28
(c) The allocation of financial costs among electric utilities in 29
the state and whether retail electric customers are equitably bearing 30
the financial costs of implementing RCW 19.405.030 through 31
19.405.050; 32
(d) The timing of cost recovery for electricity generated by 33
nonemitting electric generation , carbon capture and utilization, 34
mineralization, or sequestration technology consistent with RCW 35
19.405.050(7), or renewable resources; 36
(e) The resource procurement process of electric utilities; and37
(f) The barriers to, and benefits of, implementing RCW 19.405.040 38
and 19.405.050. 39
p. 22 HB 2285
(4) An evaluation of new or emerging technologies that could be 1
considered to be a renewable resource. 2
(5) An assessment of the impacts of RCW 19.405.030 through 3
19.405.050 on middle-income families, small businesses, and 4
manufacturers in Washington. 5
Sec. 7. RCW 19.405.090 and 2021 c 65 s 20 are each amended to 6
read as follows: 7
(1)(a) An electric utility or an affected market customer that 8
fails to meet the standards established under RCW 19.405.030(1) and 9
19.405.040(1) must pay an administrative penalty to the state of 10
Washington in the amount of ((one hundred dollars )) $100, times the 11
following multipliers, for each megawatt-hour of electric generation 12
used to meet load that is not electricity from a renewable resource , 13
natural gas system operated with carbon capture and utilization, 14
mineralization, or sequestration technology in a manner consistent 15
with RCW 19.405.050(7), or nonemitting electric generation:16
(i) 1.5 for coal-fired resources; 17
(ii) 0.84 for gas-fired peaking power plants that are not 18
operated with carbon capture and utilization, mineralization, or 19
sequestration technology in a manner consistent with RCW 20
19.405.050(7); and 21
(iii) 0.60 for gas-fired combined-cycle power plants that are not 22
operated with carbon capture and utilization, mineralization, or 23
sequestration technology in a manner consistent with RCW 24
19.405.050(7). 25
(b) Beginning in 2027, this penalty must be adjusted on a 26
biennial basis according to the rate of change of the inflation 27
indicator, gross domestic product implicit price deflator, as 28
published by the bureau of economic analysis of the United States 29
department of commerce or its successor. Beginning in 2040, the 30
commission may by rule increase this penalty for investor-owned 31
utilities if the commission determines that doing so will accelerate 32
utilities' compliance with the standards established under this 33
chapter and that doing so is in the public interest.34
(2) Consistent with the requirements of RCW 19.405.040(1)(b), a 35
utility may opt to make a payment in the amount of the administrative 36
penalty as an alternative compliance payment, without incurring a 37
penalty for noncompliance. 38
p. 23 HB 2285
(3)(a) Upon its own motion or at the request of an investor-owned 1
utility, and after a hearing, the commission may issue an order 2
relieving the utility of its administrative penalty obligation under 3
subsection (1) of this section if it finds that: 4
(i) After taking all reasonable measures, the investor-owned 5
utility's compliance with this chapter is likely to result in 6
conflicts with or compromises to its obligation to comply with the 7
mandatory and enforceable reliability standards of the North American 8
electric reliability corporation, violate prudent utility practice 9
for assuring resource adequacy, or compromise the power quality or 10
integrity of its system; or 11
(ii) The investor-owned utility is unable to comply with the 12
standards established in RCW 19.405.030(1) or 19.405.040(1) due to 13
reasons beyond the reasonable control of the investor-owned utility, 14
as set forth in subsection (6) of this section. 15
(b) If the commission issues an order pursuant to (a) of this 16
subsection that relieves an investor-owned utility of its 17
administrative penalty obligation under subsection (1) of this 18
section, the commission may issue an order: 19
(i) Temporarily exempting the investor-owned utility from the 20
requirements of RCW 19.405.040(1) for an amount of time sufficient to 21
allow the investor-owned utility to achieve full compliance with the 22
standard; 23
(ii) Directing the investor-owned utility to file a progress 24
report to the commission on achieving full compliance with the 25
standard within six months after issuing the order, or within an 26
amount of time determined to be reasonable by the commission; and27
(iii) Directing the investor-owned utility to take specific 28
actions to achieve full compliance with the requirements of this 29
chapter. 30
(c) An investor-owned utility may request an extension of a 31
temporary exemption granted under this section. An investor-owned 32
utility that requests an extension must request an update to the 33
order issued by the commission under (b) of this subsection.34
(4) Subsection (3) of this section does not permanently relieve 35
an investor-owned utility of its obligation to comply with the 36
requirements of this chapter. 37
(5)(a) The governing body of a consumer-owned utility may 38
authorize a temporary exemption from the standard established under 39
RCW 19.405.040(1), for an amount of time sufficient to allow the 40
p. 24 HB 2285
consumer-owned utility to achieve full compliance with the standard, 1
if the governing body finds that: 2
(i) The consumer-owned utility's compliance with the standard is 3
likely to: Result in conflicts with or compromises to its obligation 4
to comply with the mandatory and enforceable reliability standards of 5
the North American electric reliability corporation; violate prudent 6
utility practice for assuring resource adequacy; or compromise the 7
power quality or integrity of its system; or 8
(ii) The consumer-owned utility is unable to comply with the 9
standard due to reasons beyond the reasonable control of the utility, 10
as set forth in subsection (6) of this section; and11
(iii) The consumer-owned utility has provided to the department a 12
plan demonstrating how it plans to achieve full compliance with the 13
standard, consistent with the findings of the report submitted to the 14
legislature under RCW 19.405.080. 15
(b) Upon request by the governing body of a consumer-owned 16
utility, a consumer-owned utility must be relieved of its 17
administrative penalty obligation under subsection (1) of this 18
section if the auditor issues a finding that: 19
(i) The governing body of the consumer-owned utility has properly 20
issued a temporary exemption under (a) of this subsection for a 21
period of time not to exceed six months; and 22
(ii) The governing body of the consumer-owned utility has 23
submitted to the department a plan to take specific actions to 24
achieve full compliance with the standard, consistent with the 25
findings of the report submitted to the legislature under RCW 26
19.405.080. 27
(c) Upon issuance of a finding by the auditor, the consumer-owned 28
utility must submit a progress report to the department on achieving 29
full compliance with the standard within the term authorized in the 30
temporary exemption. 31
(d) A consumer-owned utility may request an extension of a 32
temporary exemption granted under this subsection, subject to the 33
same requirements as provided in (a) through (c) of this subsection.34
(e) The attorney general may bring a civil action in the name of 35
the state for any appropriate civil remedy including, but not limited 36
to, injunctive relief, penalties, costs, and attorneys' fees, to 37
enforce compliance with this chapter: 38
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(i) Upon the failure of the governing body of a consumer-owned 1
utility to comply with the conditions of a temporary exemption found 2
by the auditor to be properly adopted or extended; or3
(ii) Upon failure of the governing body of a consumer-owned 4
utility to comply with a finding by the auditor that a temporary 5
exemption is not properly granted. 6
(f) This subsection does not permanently relieve a consumer-owned 7
utility of its obligation to comply with the requirements of this 8
chapter. 9
(6) To the extent an event or circumstance cannot be reasonably 10
foreseen and ameliorated, such events or circumstances beyond the 11
reasonable control of an electric utility may include but are not 12
limited to: 13
(a) Weather-related damage; 14
(b) Natural disasters; 15
(c) Mechanical or resource failure; 16
(d) Failure of a third party to meet contractual obligations to 17
the electric utility; 18
(e) Actions of governmental authorities that adversely affect the 19
generation, transmission, or distribution of nonemitting electric 20
generation or renewable resources owned or under contract to an 21
electric utility, including condemnation actions by municipal 22
electric utilities, public utility districts, or irrigation districts 23
that adversely affect an investor-owned utility's ability to meet the 24
standard established in RCW 19.405.030(1) and 19.405.040(1);25
(f) Inability to acquire sufficient transmission to transmit 26
electricity from nonemitting electric generation or renewable 27
resources to load; and 28
(g) Substantial limitations, restrictions, or prohibitions on 29
nonemitting electric generation , carbon capture and utilization, 30
mineralization, or sequestration technology consistent with RCW 31
19.405.050(7), or renewable resources. 32
(7) An electric utility must notify its retail electric customers 33
in published form within three months of paying the administrative 34
penalty established under subsection (1) of this section. An electric 35
utility is not required to notify its retail electric customers when 36
making a payment in the amount of the administrative penalty as an 37
alternative compliance payment consistent with the requirements of 38
RCW 19.405.040(1)(b). 39
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(8) Moneys collected under this section must be deposited into 1
the low-income weatherization and structural rehabilitation 2
assistance account created in RCW 70A.35.030. 3
(9) For an investor-owned utility, the commission must determine 4
compliance with the requirements of this chapter. 5
(10) For consumer-owned utilities, the auditor is responsible for 6
auditing compliance with this chapter and rules adopted under this 7
chapter that apply to those utilities and the attorney general is 8
responsible for enforcing that compliance. 9
(11) If the report submitted under RCW 19.405.080 demonstrates 10
adverse system reliability impacts from the implementation of RCW 11
19.405.040 and 19.405.050, the governor, consistent with the 12
emergency powers under RCW 43.21G.040, may suspend or delay 13
implementation of this chapter, or exempt an electric utility from 14
paying the administrative penalty under this section, until system 15
reliability impacts can be addressed. Adverse system reliability 16
impacts may include, but are not limited to, the inability of 17
electric utilities or transmission operators to meet reliability 18
standards mandated by federal or state law and required by prudent 19
utility practices. 20
(12) Notwithstanding RCW 54.16.020, the fair market value 21
compensation for an asset that is condemned by a municipal electric 22
utility, public utility district, or irrigation district and that is 23
either demonstrated in an electric utility's clean energy action plan 24
or clean energy implementation plan to be used or acquired after May 25
7, 2019, to meet the requirements of RCW 19.405.040 and 19.405.050, 26
or an asset that generates electricity from renewable resources , 27
carbon capture and utilization, mineralization, or sequestration 28
technology consistent with RCW 19.405.050(7), or nonemitting electric 29
generation, must include but not be limited to a replacement value 30
approach. Additionally, the electric utility may seek, and the court 31
may award, damages attributable to the severance, separation, 32
replacement, or relocation of utility assets. The trier of fact may 33
also consider other damages, as well as offsetting benefits, that it 34
finds just and equitable. 35
(13) An entity that establishes or extends service to the 36
premises of a customer who is being served by an electric utility or 37
was served by an electric utility prior to May 7, 2019, must serve 38
those premises in a manner that complies with the requirements of 39
chapter 288, Laws of 2019 and with chapter 19.285 RCW, if applicable. 40
p. 27 HB 2285
An electric utility or other entity that fails to comply with the 1
requirements of this subsection must pay the administrative penalty 2
under subsection (1) of this section for each megawatt-hour of 3
electric generation used to serve load that does not meet the terms 4
of this subsection. 5
Sec. 8. RCW 19.405.160 and 2022 c 92 s 1 are each amended to 6
read as follows: 7
(1) An investor-owned utility may petition the commission for a 8
declaratory order pursuant to RCW 34.05.240 to determine whether a 9
proposed energy transformation project, nonemitting electric 10
generation project, project to apply carbon capture and utilization, 11
mineralization, or sequestration technology in a manner consistent 12
with RCW 19.405.050(7), or renewable resource project meets the 13
requirements of RCW 19.405.040 (1) through (3) and 19.405.050 (1) and 14
(5). 15
(2) The petition for a declaratory order must be in writing and 16
must include information that accurately describes the proposed 17
project. 18
(3) A project that the commission has determined under this 19
section to comply with the requirements of RCW 19.405.040 (1) through 20
(3) or 19.405.050 (1) and (5) may be identified in an investor-owned 21
utility's clean energy action plan under RCW 19.280.030(2) and the 22
utility's clean energy implementation plan under RCW 19.405.060(1).23
(4) If an investor-owned utility seeks approval of a resource or 24
project in a clean energy implementation plan under RCW 19.405.060, 25
or in a proceeding to set rates, that the commission has previously 26
determined under this section complies with the requirements of RCW 27
19.405.040 (1) through (3) or 19.405.050 (1) and (5) and the resource 28
or project deviates substantively from the one described in the 29
commission's determination in a manner that affects the resource's or 30
project's potential compliance with RCW 19.405.040 (1) through (3) or 31
19.405.050 (1) and (5), the commission may reevaluate the resource or 32
project to determine if it complies. 33
Sec. 9. RCW 19.405.170 and 2022 c 92 s 2 are each amended to 34
read as follows: 35
(1) The commission may require an applicant to pay an application 36
fee for a declaratory order requested under RCW 19.405.160. The 37
amount of the fee must be set by the commission to solely cover the 38
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cost of reviewing the project and preparing a declaratory order, 1
including a legal analysis. 2
(2) Nothing in RCW 19.405.160 preempts the authority of the 3
commission from making a determination, independent of the processes 4
under RCW 19.405.160, on whether a proposed energy transformation 5
project, nonemitting electric generation project, project to apply 6
carbon capture and utilization, mineralization, or sequestration 7
technology in a manner consistent with RCW 19.405.050(7), or 8
renewable resource project, under RCW 19.405.040 and 19.405.050, 9
meets the planning and portfolio requirements of an investor-owned 10
utility's clean energy implementation plan under this chapter.11
(3) A declaratory order issued under RCW 19.405.160 does not by 12
itself determine the prudency associated with an energy 13
transformation project, nonemitting electric generation project, 14
project to apply carbon capture and utilization, mineralization, or 15
sequestration technology in a manner consistent with RCW 16
19.405.050(7), or renewable resource project. 17
(4) Nothing in RCW 19.405.160 may be construed to require an 18
investor-owned utility to seek an order declaring whether the 19
proposed resource or project complies with the requirements of RCW 20
19.405.040 (1) through (3) or 19.405.050 (1) and (5).21
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p. 29 HB 2285