Green energy/community

AN ACT Relating to green energy community funds to support school 1
districts and nonprofit organizations that service the communities 2
where renewable energy projects are located; amending RCW 3
28A.325.030; adding a new chapter to Title 82 RCW; and providing an 4
expiration date. 5
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:6
NEW SECTION. Sec. 1. The legislature finds that green energy 7
provides economic and environmental benefits by creating 8
opportunities for jobs, and innovation by replacing dirtier forms of 9
energy. The legislature further finds that many, but not all, of 10
these benefits occur at the regional and global levels, beyond the 11
districts where projects are located. It is the intent of the 12
legislature to establish a program to ensure those broad benefits are 13
shared with the host communities by creating pathways to invest state 14
tax revenue back into local communities. This act provides community 15
benefits by creating a mechanism to ensure that more of the taxes 16
from new green energy projects are fed back into the districts where 17
they are located.18
S-0283.1
SENATE BILL 5216
State of Washington 69th Legislature 2025 Regular Session
By Senators Shewmake, Chapman, and Nobles
Prefiled 01/09/25. Read first time 01/13/25. Referred to Committee
on Environment, Energy & Technology.
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NEW SECTION. Sec. 2. The definitions in this section apply 1
throughout this chapter unless the context clearly requires 2
otherwise.3
(1) "Applicant" means a person applying for a tax credit under 4
this chapter. 5
(2) "Contribution" means cash contributions by a qualifying light 6
and power business. 7
(3) "Department" means the department of revenue.8
(4) "Person" has the meaning given in RCW 82.04.030.9
(5) "Qualifying light and power business" means a light and power 10
business as defined in RCW 82.16.010 with a renewable energy project 11
located within the boundaries of a school district.12
(6) "Recipient" means a school district with a renewable energy 13
project located within the boundaries of the school district or a 14
nonprofit organization that services the community where a renewable 15
energy project is located. 16
(7) "Renewable energy project" means a facility constructed after 17
the effective date of this section and used by a qualifying light and 18
power business to generate electricity derived either from wind power 19
or solar power or to store electrical energy. 20
NEW SECTION. Sec. 3. (1) Application for tax credits under this 21
chapter must be submitted to the department before making a 22
contribution to a recipient. The application must be made to the 23
department in a form and manner prescribed by the department. The 24
application must contain information regarding: Details of the 25
renewable energy project, the project's location, the recipient of 26
the contribution (school district or nonprofit organization), the 27
proposed amount of the contribution to the recipient, and other 28
information required by the department to determine eligibility under 29
this chapter. The department must rule on the application within 45 30
days. Applications must be approved on a first-in-time basis.31
(2) Applications must be submitted between January 1st and July 32
1st for contributions to be made by the qualifying light and power 33
business during the calendar year; however, the department may extend 34
the application deadline if a qualifying light and power business 35
does not make a contribution by the date specified in section 4 of 36
this act and forfeits all tax credits for the approved application.37
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NEW SECTION. Sec. 4. (1) A qualifying light and power business 1
approved for credit as provided under section 3 of this act must make 2
the total approved contribution to the recipient by October 1st of 3
the calendar year in which the application is approved. If October 4
1st falls upon a Saturday, Sunday, or legal holiday, the payment to 5
the recipient of the contribution is timely if sent on the next 6
business day.7
(2)(a) A qualifying light and power business that does not make a 8
contribution as required in subsection (1) of this section forfeits 9
all credits for the approved contribution. 10
(b) The department must make credits forfeited as provided in (a) 11
of this subsection available to new applicants. 12
(3) A qualifying light and power business must provide proof of 13
payment of the contribution to the department by October 15th of the 14
calendar year in which the contribution is made to the recipient. If 15
October 15th falls upon a Saturday, Sunday, or legal holiday, proof 16
of payment is timely if sent on the next business day. The recipient 17
of a contribution from a qualifying light and power business must be 18
a school district with a renewable energy project located within the 19
boundaries of the school district or a nonprofit organization that 20
services the community where the renewable energy project is located. 21
The qualifying light and power business shall select the recipient of 22
the contribution, which must be specified on the application as 23
provided in section 3 of this act. 24
NEW SECTION. Sec. 5. (1) Subject to the limitations in this 25
chapter, a credit is allowed against the tax imposed by chapters 26
82.04 and 82.16 RCW for approved contributions that are made by a 27
qualifying light and power business to a recipient.28
(2) The credit allowed under this section is limited to an amount 29
equal to 75 percent of the approved contribution made by a qualifying 30
light and power business to a recipient. 31
(3) The department must keep a running total of all credits 32
approved under this chapter for each calendar year. The department 33
may not approve any credits under this section that would cause the 34
total amount of approved credits statewide to exceed $5,000,000 in 35
any calendar year. 36
(4) The total credits allowed under this chapter for a qualifying 37
light and power business may not exceed $250,000 in a calendar year.38
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(5) The credit may be claimed against tax due under chapters 1
82.04 and 82.16 RCW from a renewable energy project only in the 2
calendar year in which the credit was approved by the department and 3
the contribution was made to the recipient or in the subsequent 4
calendar year. No refunds may be granted for credits under this 5
chapter. A qualifying light and power business may not receive credit 6
against taxes due under chapters 82.04 and 82.16 RCW for the same 7
contribution. 8
(6) Credits may be earned for contributions made on or after 9
January 1, 2026, and on or before December 31, 2034. Credits earned 10
may be claimed on tax returns filed for reporting periods beginning 11
on or after January 1, 2026, and ending on or before December 31, 12
2035. No credit may be claimed on tax returns filed for reporting 13
periods beginning on or after January 1, 2036. 14
NEW SECTION. Sec. 6. To claim a credit under this chapter, a 15
person must electronically file with the department all returns, 16
forms, and other information the department requires in an electronic 17
format as provided or approved by the department. Any return, form, 18
or information required to be filed in an electronic format under 19
this section is not filed until received by the department in an 20
electronic format. As used in this section, "returns" has the same 21
meaning as "return" in RCW 82.32.050.22
NEW SECTION. Sec. 7. Chapter 82.32 RCW applies to the 23
administration of this chapter.24
NEW SECTION. Sec. 8. This chapter expires December 31, 2036.25
NEW SECTION. Sec. 9. RCW 82.32.808 does not apply to this act.26
NEW SECTION. Sec. 10. This chapter may be known and cited as 27
the Washington green energy community funds act.28
NEW SECTION. Sec. 11. Sections 1 through 10 of this act 29
constitute a new chapter in Title 82 RCW.30
Sec. 12. RCW 28A.325.030 and 2000 c 157 s 2 are each amended to 31
read as follows: 32
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(1)(a) There is hereby created a fund on deposit with each county 1
treasurer for each school district of the county having an associated 2
student body as defined in RCW 28A.325.020. Such fund shall be known 3
as the associated student body program fund. Rules adopted by the 4
superintendent of public instruction under RCW 28A.325.020 shall 5
require separate accounting for each associated student body's 6
transactions in the school district's associated student body program 7
fund. 8
(b) All moneys generated through the programs and activities of 9
any associated student body shall be deposited in the associated 10
student body program fund. Such funds may be invested for the sole 11
benefit of the associated student body program fund in items 12
enumerated in RCW 28A.320.320 and the county treasurer may assess a 13
fee as provided therein. Disbursements from such fund shall be under 14
the control and supervision, and with the approval, of the board of 15
directors of the school district, and shall be by warrant as provided 16
in chapter 28A.350 RCW: PROVIDED, That in no case shall such warrants 17
be issued in an amount greater than the funds on deposit with the 18
county treasurer in the associated student body program fund. To 19
facilitate the payment of obligations, an imprest bank account or 20
accounts may be created and replenished from the associated student 21
body program fund. 22
(c) The associated student body program fund shall be budgeted by 23
the associated student body, subject to approval by the board of 24
directors of the school district. All disbursements from the 25
associated student body program fund or any imprest bank account 26
established thereunder shall have the prior approval of the 27
appropriate governing body representing the associated student body. 28
Notwithstanding the provisions of RCW 43.09.210, it shall not be 29
mandatory that expenditures from the district's general fund in 30
support of associated student body programs and activities be 31
reimbursed by payments from the associated student body program fund.32
(2) Subject to applicable school board policies, student groups 33
may conduct fund-raising activities, including but not limited to 34
soliciting donations, in their private capacities for the purpose of 35
generating nonassociated student body fund moneys. The school board 36
policy shall include provisions to ensure appropriate accountability 37
for these funds. Nonassociated student body program fund moneys 38
generated and received by students for private purposes to use for 39
scholarship, student exchange, and/or charitable purposes shall be 40
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held in trust in one or more separate accounts within an associated 1
student body program fund and be disbursed for such purposes as the 2
student group conducting the fund-raising activity shall determine: 3
PROVIDED, That the school district shall either withhold an amount 4
from such moneys as will pay the district for its direct costs in 5
providing the service or otherwise be compensated for its cost for 6
such service. Nonassociated student body program fund moneys shall 7
not be deemed public moneys under section 7, Article VIII of the 8
state Constitution. Notice shall be given identifying the intended 9
use of the proceeds. The notice shall also state that the proceeds 10
are nonassociated student body funds to be held in trust by the 11
school district exclusively for the intended purpose. "Charitable 12
purpose" under this section does not include any activity related to 13
assisting a campaign for election of a person to an office or for the 14
promotion or opposition to a ballot proposition. 15
(3) A school district receiving funding under chapter 82.--- RCW 16
(the new chapter created in section 11 of this act) must deposit all 17
proceeds into a subaccount of its associated student body program 18
fund and such funds may be used for any allowable purpose of the 19
associated student body program fund.20
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