Utilities/education entities

AN ACT Relating to requiring utilities to provide discounted 1
rates to entities that provide a public education for elementary and 2
secondary students; amending RCW 57.08.005 and 35.92.020; adding a 3
new section to chapter 80.28 RCW; adding a new section to chapter 4
57.08 RCW; adding a new chapter to Title 80 RCW; and creating new 5
sections. 6
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:7
NEW SECTION. Sec. 1. (1) The legislature finds that:8
(a) The Washington state Constitution declares education to be 9
the paramount duty of the state and requires the state to make ample 10
provision for the education of all children; 11
(b) School districts serve as political subdivisions of the state 12
for purposes of delivering this constitutionally prioritized duty;13
(c) The Constitution places the responsibility for funding basic 14
education on the state and does not require school districts to rely 15
on local property tax levies to fulfill the state's duty;16
(d) School districts and other entities providing education to 17
public elementary and secondary students have experienced increasing 18
and unpredictable utility costs, including costs for electricity, 19
gas, and water; and 20
H-2914.1
HOUSE BILL 2519
State of Washington 69th Legislature 2026 Regular Session
By Representatives Bergquist, Simmons, Goodman, Pollet, and Reed
Read first time 01/15/26. Referred to Committee on Environment &
Energy.
p. 1 HB 2519
(e) These increasing utility costs impose growing financial 1
burdens on school districts and other education providers, diverting 2
resources away from direct public educational services.3
(2) Therefore, it is the intent of the legislature to align state 4
policy with the constitutional promise of paramount duty and ample 5
provision by supporting the affordability of public education 6
operations by requiring utility companies to provide discounted 7
utility rates to school districts and other entities providing 8
education to public elementary and secondary students.9
NEW SECTION. Sec. 2. The definitions in this section apply 10
throughout this chapter unless the context clearly requires 11
otherwise.12
(1) "Consumer-owned utility" has the same meaning as in RCW 13
19.29A.010. 14
(2) "Electric utility" means a consumer-owned or investor-owned 15
utility. 16
(3) "Gas company" has the same meaning as in RCW 80.04.010.17
(4) "Investor-owned utility" means a company owned by investors 18
that is a corporation as defined in RCW 80.04.010 and is engaged in 19
distributing electricity to more than one retail electric customer in 20
the state. 21
(5) "Water utility" means any utility providing water or sewer 22
services to a school district. 23
NEW SECTION. Sec. 3. Each gas company, electric utility, and 24
water utility must provide rate discounts to each school district as 25
follows:26
(1) A discount of 10 percent by January 1, 2027;27
(2) A discount of 20 percent by January 1, 2028;28
(3) A discount of 30 percent by January 1, 2029;29
(4) A discount of 40 percent by January 1, 2030;30
(5) A discount of 50 percent by January 1, 2031; and31
(6) A discount of 60 percent by January 1, 2032, and for every 32
year thereafter. 33
NEW SECTION. Sec. 4. A consumer-owned utility's governing board 34
must approve rates at a discount for school districts. Expenses and 35
lost revenues as a result of these discounts must be included in the 36
utility's cost of service and recovered in rates to other customers. 37
p. 2 HB 2519
NEW SECTION. Sec. 5. This chapter applies to utilities paid by 1
charter schools established under chapter 28A.710 RCW and state-2
tribal education compact schools subject to chapter 28A.715 RCW to 3
the same extent as it applies to school districts.4
NEW SECTION. Sec. 6. A new section is added to chapter 80.28 5
RCW to read as follows: 6
Upon its own motion, or upon request by an investor-owned 7
utility, gas company, or water utility subject to its jurisdiction, 8
or other party to a general rate case hearing, or other proceeding to 9
set rates, the utilities and transportation commission must approve 10
rates at a discount for school districts, charter schools established 11
under chapter 28A.710 RCW, and state-tribal education compact schools 12
subject to chapter 28A.715 RCW. Expenses and lost revenues as a 13
result of these discounts must be included in the utility's or 14
company's cost of service and recovered in rates to other customers. 15
Each investor-owned utility, gas company, and water utility must 16
propose a program comprised of a discount rate for school districts 17
to the commission. The commission must approve, disapprove, or 18
approve with modifications each discount rate program. Nothing in 19
this section may be construed as limiting the commission's authority 20
to approve or modify tariffs authorizing school district discounts.21
NEW SECTION. Sec. 7. A new section is added to chapter 57.08 22
RCW to read as follows: 23
A district must approve rates at a discount for school districts, 24
charter schools established under chapter 28A.710 RCW, and state-25
tribal education compact schools subject to chapter 28A.715 RCW. 26
Expenses and lost revenues as a result of these discounts must be 27
included in the district's cost of service and recovered in rates to 28
other customers. 29
Sec. 8. RCW 57.08.005 and 2009 c 253 s 1 are each amended to 30
read as follows: 31
A district shall have the following powers: 32
(1) To acquire by purchase or condemnation, or both, all lands, 33
property and property rights, and all water and water rights, both 34
within and without the district, necessary for its purposes. The 35
right of eminent domain shall be exercised in the same manner and by 36
the same procedure as provided for cities and towns, insofar as 37
p. 3 HB 2519
consistent with this title, except that all assessment or 1
reassessment rolls to be prepared and filed by eminent domain 2
commissioners or commissioners appointed by the court shall be 3
prepared and filed by the district, and the duties devolving upon the 4
city treasurer are imposed upon the county treasurer;5
(2) To lease real or personal property necessary for its purposes 6
for a term of years for which that leased property may reasonably be 7
needed; 8
(3) To construct, condemn and purchase, add to, maintain, and 9
supply waterworks to furnish the district and inhabitants thereof and 10
any other persons, both within and without the district, with an 11
ample supply of water for all uses and purposes public and private 12
with full authority to regulate and control the use, content, 13
distribution, and price thereof in such a manner as is not in 14
conflict with general law and may construct, acquire, or own 15
buildings and other necessary district facilities. Where a customer 16
connected to the district's system uses the water on an intermittent 17
or transient basis, a district may charge for providing water service 18
to such a customer, regardless of the amount of water, if any, used 19
by the customer. District waterworks may include facilities ((which)) 20
that result in combined water supply and electric generation, if the 21
electricity generated thereby is a by -product of the water supply 22
system. That electricity may be used by the district or sold to any 23
entity authorized by law to use or distribute electricity. 24
Electricity is deemed a by-product when the electrical generation is 25
subordinate to the primary purpose of water supply. For such 26
purposes, a district may take, condemn and purchase, acquire, and 27
retain water from any public or navigable lake, river or watercourse, 28
or any underflowing water, and by means of aqueducts or pipeline 29
conduct the same throughout the district and any city or town therein 30
and carry it along and upon public highways, roads, and streets, 31
within and without such district. For the purpose of constructing or 32
laying aqueducts or pipelines, dams, or waterworks or other necessary 33
structures in storing and retaining water or for any other lawful 34
purpose such district may occupy the beds and shores up to the high 35
water mark of any such lake, river, or other watercourse, and may 36
acquire by purchase or condemnation such property or property rights 37
or privileges as may be necessary to protect its water supply from 38
pollution. For the purposes of waterworks ((which)) that include 39
facilities for the generation of electricity as a by-product, nothing 40
p. 4 HB 2519
in this section may be construed to authorize a district to condemn 1
electric generating, transmission, or distribution rights or 2
facilities of entities authorized by law to distribute electricity, 3
or to acquire such rights or facilities without the consent of the 4
owner; 5
(4) To purchase and take water from any municipal corporation, 6
private person, or entity. A district contiguous to Canada may 7
contract with a Canadian corporation for the purchase of water and 8
for the construction, purchase, maintenance, and supply of waterworks 9
to furnish the district and inhabitants thereof and residents of 10
Canada with an ample supply of water under the terms approved by the 11
board of commissioners; 12
(5) To construct, condemn and purchase, add to, maintain, and 13
operate systems of sewers for the purpose of furnishing the district, 14
the inhabitants thereof, and persons outside the district with an 15
adequate system of sewers for all uses and purposes, public and 16
private((,)) including, but not limited to , on-site sewage disposal 17
facilities, approved septic tanks or approved septic tank systems, 18
on-site sanitary sewerage systems, inspection services and 19
maintenance services for private and public on-site systems, point 20
and nonpoint water pollution monitoring programs that are directly 21
related to the sewerage facilities and programs operated by a 22
district, other facilities, programs, and systems for the collection, 23
interception, treatment, and disposal of wastewater, and for the 24
control of pollution from wastewater with full authority to regulate 25
the use and operation thereof and the service rates to be charged. 26
Under this chapter, after July 1, 1998, any requirements for pumping 27
the septic tank of an on-site sewage system should be based, among 28
other things, on actual measurement of accumulation of sludge and 29
scum by a trained inspector, trained owner's agent, or trained owner. 30
Training must occur in a program approved by the state board of 31
health or by a local health officer. Sewage facilities may include 32
facilities ((which)) that result in combined sewage disposal or 33
treatment and electric or methane gas generation, except that the 34
electricity or methane gas generated thereby is a by-product of the 35
system of sewers. Such electricity or methane gas may be used by the 36
district or sold to any entity authorized by law to distribute 37
electricity or methane gas. Electricity and methane gas are deemed 38
by-products when the electrical or methane gas generation is 39
subordinate to the primary purpose of sewage disposal or treatment. 40
p. 5 HB 2519
The district may also sell surplus methane gas, which may be produced 1
as a by-product. For such purposes a district may conduct sewage 2
throughout the district and throughout other political subdivisions 3
within the district, and construct and lay sewer pipe along and upon 4
public highways, roads, and streets, within and without the district, 5
and condemn and purchase or acquire land and rights-of-way necessary 6
for such sewer pipe. A district may erect sewage treatment plants 7
within or without the district, and may acquire, by purchase or 8
condemnation, properties or privileges necessary to be had to protect 9
any lakes, rivers, or watercourses and also other areas of land from 10
pollution from its sewers or its sewage treatment plant. For the 11
purposes of sewage facilities ((which)) that include facilities that 12
result in combined sewage disposal or treatment and electric 13
generation where the electric generation is a by-product, nothing in 14
this section may be construed to authorize a district to condemn 15
electric generating, transmission, or distribution rights or 16
facilities of entities authorized by law to distribute electricity, 17
or to acquire such rights or facilities without the consent of the 18
owners; 19
(6) The authority to construct, condemn and purchase, add to, 20
maintain, and operate systems of reclaimed water as authorized by 21
chapter 90.46 RCW for the purpose of furnishing the district and the 22
inhabitants thereof with reclaimed water for all authorized uses and 23
purposes, public and private, including with full authority to 24
regulate the use and operation thereof and the service rates to be 25
charged. In compliance with other sections of this chapter, a 26
district may also provide reclaimed water services to persons outside 27
the district; 28
(7)(a) To construct, condemn and purchase, add to, maintain, and 29
operate systems of drainage for the benefit and use of the district, 30
the inhabitants thereof, and persons outside the district with an 31
adequate system of drainage ((,)) including, but not limited to , 32
facilities and systems for the collection, interception, treatment, 33
and disposal of storm or surface waters, and for the protection, 34
preservation, and rehabilitation of surface and underground waters, 35
and drainage facilities for public highways, streets, and roads, with 36
full authority to regulate the use and operation thereof and, except 37
as provided in (b) of this subsection, the service rates to be 38
charged. 39
p. 6 HB 2519
(b) The rate a district may charge under this section for storm 1
or surface water sewer systems or the portion of the rate allocable 2
to the storm or surface water sewer system of combined sanitary 3
sewage and storm or surface water sewer systems shall be reduced by a 4
minimum of ten percent for any new or remodeled commercial building 5
that utilizes a permissive rainwater harvesting system. Rainwater 6
harvesting systems shall be properly sized to utilize the available 7
roof surface of the building. The jurisdiction shall consider rate 8
reductions in excess of ten percent dependent upon the amount of 9
rainwater harvested. 10
(c) Drainage facilities may include natural systems. Drainage 11
facilities may include facilities which result in combined drainage 12
facilities and electric generation, except that the electricity 13
generated thereby is a by-product of the drainage system. Such 14
electricity may be used by the district or sold to any entity 15
authorized by law to distribute electricity. Electricity is deemed a 16
by-product when the electrical generation is subordinate to the 17
primary purpose of drainage collection, disposal, and treatment. For 18
such purposes, a district may conduct storm or surface water 19
throughout the district and throughout other political subdivisions 20
within the district, construct and lay drainage pipe and culverts 21
along and upon public highways, roads, and streets, within and 22
without the district, and condemn and purchase or acquire land and 23
rights-of-way necessary for such drainage systems. A district may 24
provide or erect facilities and improvements for the treatment and 25
disposal of storm or surface water within or without the district, 26
and may acquire, by purchase or condemnation, properties or 27
privileges necessary to be had to protect any lakes, rivers, or 28
watercourses and also other areas of land from pollution from storm 29
or surface waters. For the purposes of drainage facilities ((which)) 30
that include facilities that also generate electricity as a by-31
product, nothing in this section may be construed to authorize a 32
district to condemn electric generating, transmission, or 33
distribution rights or facilities of entities authorized by law to 34
distribute electricity, or to acquire such rights or facilities 35
without the consent of the owners; 36
(8) To construct, condemn, acquire, and own buildings and other 37
necessary district facilities; 38
(9) To compel all property owners within the district located 39
within an area served by the district's system of sewers to connect 40
p. 7 HB 2519
their private drain and sewer systems with the district's system 1
under such penalty as the commissioners shall prescribe by 2
resolution. The district may for such purpose enter upon private 3
property and connect the private drains or sewers with the district 4
system and the cost thereof shall be charged against the property 5
owner and shall be a lien upon property served; 6
(10) Where a district contains within its borders, abuts, or is 7
located adjacent to any lake, stream, groundwater as defined by RCW 8
90.44.035, or other waterway within the state of Washington, to 9
provide for the reduction, minimization, or elimination of pollutants 10
from those waters in accordance with the district's comprehensive 11
plan, and to issue general obligation bonds, revenue bonds, local 12
improvement district bonds, or utility local improvement bonds for 13
the purpose of paying all or any part of the cost of reducing, 14
minimizing, or eliminating the pollutants from these waters;15
(11) Subject to subsection (7) of this section, to fix rates and 16
charges for water, sewer, reclaimed water, and drain service supplied 17
and to charge property owners seeking to connect to the district's 18
systems, as a condition to granting the right to so connect, in 19
addition to the cost of the connection, such reasonable connection 20
charge as the board of commissioners shall determine to be proper in 21
order that those property owners shall bear their equitable share of 22
the cost of the system. For the purposes of calculating a connection 23
charge, the board of commissioners shall determine the pro rata share 24
of the cost of existing facilities and facilities planned for 25
construction within the next ((ten)) 10 years and contained in an 26
adopted comprehensive plan and other costs borne by the district 27
((which)) that are directly attributable to the improvements required 28
by property owners seeking to connect to the system. The cost of 29
existing facilities shall not include those portions of the system 30
((which)) that have been donated or ((which)) that have been paid for 31
by grants. The connection charge may include interest charges applied 32
from the date of construction of the system until the connection, or 33
for a period not to exceed ((ten)) 10 years, whichever is shorter, at 34
a rate commensurate with the rate of interest applicable to the 35
district at the time of construction or major rehabilitation of the 36
system, or at the time of installation of the lines to which the 37
property owner is seeking to connect. In lieu of requiring the 38
installation of permanent local facilities not planned for 39
construction by the district, a district may permit connection to the 40
p. 8 HB 2519
water and/or sewer systems through temporary facilities installed at 1
the property owner's expense, provided the property owner pays a 2
connection charge consistent with the provisions of this chapter and 3
agrees, in the future, to connect to permanent facilities when they 4
are installed; or a district may permit connection to the water 5
and/or sewer systems through temporary facilities and collect from 6
property owners so connecting a proportionate share of the estimated 7
cost of future local facilities needed to serve the property, as 8
determined by the district. The amount collected, including interest 9
at a rate commensurate with the rate of interest applicable to the 10
district at the time of construction of the temporary facilities, 11
shall be held for contribution to the construction of the permanent 12
local facilities by other developers or the district. The amount 13
collected shall be deemed full satisfaction of the proportionate 14
share of the actual cost of construction of the permanent local 15
facilities. If the permanent local facilities are not constructed 16
within ((fifteen)) 15 years of the date of payment, the amount 17
collected, including any accrued interest, shall be returned to the 18
property owner, according to the records of the county auditor on the 19
date of return. If the amount collected is returned to the property 20
owner, and permanent local facilities capable of serving the property 21
are constructed thereafter, the property owner at the time of 22
construction of such permanent local facilities shall pay a 23
proportionate share of the cost of such permanent local facilities, 24
in addition to reasonable connection charges and other charges 25
authorized by this section. A district may permit payment of the cost 26
of connection and the reasonable connection charge to be paid with 27
interest in installments over a period not exceeding ((fifteen)) 15 28
years. The county treasurer may charge and collect a fee of ((three 29
dollars)) $3 for each year for the treasurer's services. Those fees 30
shall be a charge to be included as part of each annual installment, 31
and shall be credited to the county current expense fund by the 32
county treasurer. Revenues from connection charges excluding permit 33
fees are to be considered payments in aid of construction as defined 34
by department of revenue rule. Rates or charges for on-site 35
inspection and maintenance services may not be imposed under this 36
chapter on the development, construction, or reconstruction of 37
property. 38
Before adopting on-site inspection and maintenance utility 39
services, or incorporating residences into an on-site inspection and 40
p. 9 HB 2519
maintenance or sewer utility under this chapter, notification must be 1
provided, prior to the applicable public hearing, to all residences 2
within the proposed service area that have on-site systems permitted 3
by the local health officer. The notice must clearly state that the 4
residence is within the proposed service area and must provide 5
information on estimated rates or charges that may be imposed for the 6
service. 7
A water-sewer district shall not provide on-site sewage system 8
inspection, pumping services, or other maintenance or repair services 9
under this section using water-sewer district employees unless the 10
on-site system is connected by a publicly owned collection system to 11
the water-sewer district's sewerage system, and the on-site system 12
represents the first step in the sewage disposal process.13
Except as otherwise provided in RCW 90.03.525 and in section 7 of 14
this act, any public entity and public property, including the state 15
of Washington and state property, shall be subject to rates and 16
charges for sewer, water, stormwater control, drainage, and street 17
lighting facilities to the same extent private persons and private 18
property are subject to those rates and charges that are imposed by 19
districts. In setting those rates and charges, consideration may be 20
made of in-kind services, such as stream improvements or donation of 21
property; 22
(12) To contract with individuals, associations and corporations, 23
the state of Washington, and the United States; 24
(13) To employ such persons as are needed to carry out the 25
district's purposes and fix salaries and any bond requirements for 26
those employees; 27
(14) To contract for the provision of engineering, legal, and 28
other professional services as in the board of commissioner's 29
discretion is necessary in carrying out their duties;30
(15) To sue and be sued; 31
(16) To loan and borrow funds and to issue bonds and instruments 32
evidencing indebtedness under chapter 57.20 RCW and other applicable 33
laws; 34
(17) To transfer funds, real or personal property, property 35
interests, or services subject to RCW 57.08.015; 36
(18) To levy taxes in accordance with this chapter and chapters 37
57.04 and 57.20 RCW; 38
(19) To provide for making local improvements and to levy and 39
collect special assessments on property benefited thereby, and for 40
p. 10 HB 2519
paying for the same or any portion thereof in accordance with chapter 1
57.16 RCW; 2
(20) To establish street lighting systems under RCW 57.08.060;3
(21) To exercise such other powers as are granted to water-sewer 4
districts by this title or other applicable laws; and5
(22) To exercise any of the powers granted to cities and counties 6
with respect to the acquisition, construction, maintenance, operation 7
of, and fixing rates and charges for waterworks and systems of 8
sewerage and drainage. 9
Sec. 9. RCW 35.92.020 and 2021 c 176 s 5213 are each amended to 10
read as follows: 11
(1) A city or town may construct, condemn and purchase, purchase, 12
acquire, add to, alter, maintain, and operate systems, plants, sites, 13
or other facilities of sewerage as defined in RCW 35.67.010, or solid 14
waste handling as defined by RCW 70A.205.015. A city or town shall 15
have full authority to manage, regulate, operate, control, and, 16
except as provided in subsection (3) of this section, to fix the 17
price of service and facilities of those systems, plants, sites, or 18
other facilities within and without the limits of the city or town.19
(2) Subject to subsection (3) of this section, the rates charged 20
shall be uniform for the same class of customers or service and 21
facilities. In classifying customers served or service and facilities 22
furnished by a system or systems of sewerage, the legislative 23
authority of the city or town may in its discretion consider any or 24
all of the following factors: 25
(a) The difference in cost of service and facilities to 26
customers; 27
(b) The location of customers within and without the city or 28
town; 29
(c) The difference in cost of maintenance, operation, repair, and 30
replacement of the parts of the system; 31
(d) The different character of the service and facilities 32
furnished to customers; 33
(e) The quantity and quality of the sewage delivered and the time 34
of its delivery; 35
(f) Capital contributions made to the systems, plants, sites, or 36
other facilities, including but not limited to, assessments;37
(g) The public benefit nonprofit corporation status, as defined 38
in RCW 24.03A.245, of the land user; and 39
p. 11 HB 2519
(h) Any other factors that present a reasonable difference as a 1
ground for distinction. 2
(3)(a) The rate a city or town may charge under this section for 3
storm or surface water sewer systems or the portion of the rate 4
allocable to the storm or surface water sewer system of combined 5
sanitary sewage and storm or surface water sewer systems shall be 6
reduced by a minimum of ((ten)) 10 percent for any new or remodeled 7
commercial building that utilizes a permissive rainwater harvesting 8
system. Rainwater harvesting systems shall be properly sized to 9
utilize the available roof surface of the building. The jurisdiction 10
shall consider rate reductions in excess of ((ten)) 10 percent 11
dependent upon the amount of rainwater harvested. 12
(b) With respect to school districts, charter schools established 13
under chapter 28A.710 RCW, and state-tribal education compact schools 14
subject to chapter 28A.715 RCW, the rate a city or town may charge to 15
school districts under this section for storm or surface water sewer 16
systems or the portion of the rate allocable to the storm or surface 17
water sewer system of combined sanitary sewage and storm or surface 18
water sewer systems must be reduced by:19
(i) Ten percent by January 1, 2027;20
(ii) Twenty percent by January 1, 2028;21
(iii) Thirty percent by January 1, 2029;22
(iv) Forty percent by January 1, 2030;23
(v) Fifty percent by January 1, 2031; and24
(vi) Sixty percent by January 1, 2032, and for every year 25
thereafter.26
(4) Rates or charges for on-site inspection and maintenance 27
services may not be imposed under this chapter on the development, 28
construction, or reconstruction of property. 29
(5) A city or town may provide assistance to aid low-income 30
persons in connection with services provided under this chapter.31
(6) Under this chapter, after July 1, 1998, any requirements for 32
pumping the septic tank of an on-site sewage system should be based, 33
among other things, on actual measurement of accumulation of sludge 34
and scum by a trained inspector, trained owner's agent, or trained 35
owner. Training must occur in a program approved by the state board 36
of health or by a local health officer. 37
(7) Before adopting on-site inspection and maintenance utility 38
services, or incorporating residences into an on-site inspection and 39
maintenance or sewer utility under this chapter, notification must be 40
p. 12 HB 2519
provided, prior to the applicable public hearing, to all residences 1
within the proposed service area that have on-site systems permitted 2
by the local health officer. The notice must clearly state that the 3
residence is within the proposed service area and must provide 4
information on estimated rates or charges that may be imposed for the 5
service. 6
(8) A city or town shall not provide on-site sewage system 7
inspection, pumping services, or other maintenance or repair services 8
under this section using city or town employees unless the on-site 9
system is connected by a publicly owned collection system to the city 10
or town's sewerage system, and the on-site system represents the 11
first step in the sewage disposal process. Nothing in this section 12
shall affect the authority of state or local health officers to carry 13
out their responsibilities under any other applicable law.14
NEW SECTION. Sec. 10. Sections 2 through 5 of this act 15
constitute a new chapter in Title 80 RCW.16
NEW SECTION. Sec. 11. Nothing in this act is intended to change 17
or reduce minimum allocations per full-time equivalent student for 18
materials, supplies, and operating costs provided under RCW 19
28A.150.260.20
--- END ---
p. 13 HB 2519