Utility procurement

AN ACT Relating to streamlining consumer-owned utility 1
procurement requirements for clean energy generation, energy storage, 2
transmission, and distribution projects until the 2045 carbon free 3
compliance date under the clean energy transformation act; amending 4
RCW 54.04.080 and 39.04.280; reenacting and amending RCW 54.04.070; 5
adding a new section to chapter 54.04 RCW; and creating a new 6
section. 7
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:8
NEW SECTION. Sec. 1. The legislature finds that the state has 9
committed to achieving carbon neutrality by 2030 and becoming carbon-10
free by 2045. At the same time, electricity demand in Washington is 11
rising sharply and current regional forecasts project an increase in 12
electricity demand of over 30 percent in the next decade.13
The legislature also finds that Washington's existing 14
transmission system lacks the capacity to meet existing demand and 15
integrate future intermittent clean energy generation, and that 16
significant cost increases and supply chain delays in the electric 17
utility sector require urgent action to maintain affordability for 18
electric ratepayers. This challenge is especially heightened during 19
extreme weather events, which increases the need for heating and 20
S-3797.1
SENATE BILL 6076
State of Washington 69th Legislature 2026 Regular Session
By Senators Goehner, Salomon, Lovelett, and Saldaña
Read first time 01/13/26. Referred to Committee on Environment,
Energy & Technology.
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cooling and places sustained pressure on the grid during peak 1
periods. 2
Therefore, it is the intent of the legislature to streamline 3
certain procurement laws for consumer-owned utilities until the 2045 4
carbon free compliance date under the clean energy transformation 5
act. These changes are intended to expedite needed energy generation, 6
storage, transmission, and distribution to support Washington's 7
growing energy demand and its clean energy commitments in the most 8
timely and cost effective manner. 9
Sec. 2. RCW 54.04.070 and 2023 c 395 s 32 and 2023 c 255 s 1 are 10
each reenacted and amended to read as follows: 11
(1) Any item, or items of the same kind of materials, equipment, 12
or supplies purchased, the estimated cost of which is in excess of 13
$30,000, exclusive of sales tax, shall be by contract. However, a 14
district may make purchases of the same kind of items of materials, 15
equipment, and supplies not exceeding $12,000 in any calendar month 16
without a contract, purchasing any excess thereof over $12,000 by 17
contract. 18
(2) Any work ordered by a district commission, the estimated cost 19
of which is in excess of $150,000 exclusive of sales tax if more than 20
a single craft or trade is involved with the public works project, or 21
a public works project in excess of $75,500 exclusive of sales tax if 22
only a single craft or trade is involved with the public works 23
project, shall be by contract. However, a district commission may 24
have its own regularly employed personnel perform work which is an 25
accepted industry practice under prudent utility management without a 26
contract. For purposes of this section, "prudent utility management" 27
means performing work with regularly employed personnel utilizing 28
material of a worth not exceeding $300,000 in value without a 29
contract. This limit on the value of material being utilized in work 30
being performed by regularly employed personnel shall not include the 31
value of individual items of equipment. For the purposes of this 32
section, the term "equipment" includes but is not limited to 33
conductor, cabling, wire, pipe, or lines used for electrical, water, 34
fiber optic, or telecommunications. 35
(3) Until January 1, 2045, any work ordered by a district 36
commission for the construction, maintenance, operation, or repair of 37
new or existing nonemitting electric generation, electric generation 38
from a renewable resource, energy storage, or transmission or 39
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distribution projects, the estimated cost of which is in excess of 1
$500,000 exclusive of sales tax, shall be by contract. However, a 2
district commission may have its own regularly employed personnel 3
perform work which is an accepted industry practice under prudent 4
utility management without a contract. For purposes of this section, 5
"prudent utility management" means performing work with regularly 6
employed personnel utilizing material of a worth not exceeding 7
$1,000,000 in value without a contract. This limit on the value of 8
material being utilized in work being performed by regularly employed 9
personnel does not include the value of individual items of 10
equipment. For the purposes of this section, "equipment" includes but 11
is not limited to conductor, cabling, wire, lines, parts, components, 12
or other devices used in electrical generation, transmission, or 13
distribution. For purposes of this subsection, "nonemitting electric 14
generation" and "renewable resource" have the definitions provided in 15
RCW 19.405.020. 16
(4) Before awarding a contract required under subsection (1), 17
(2), or (((2))) (3) of this section, the commission shall publish a 18
notice once or more in a newspaper of general circulation in the 19
district at least 13 days before the last date upon which bids will 20
be received, inviting sealed proposals for the work or materials. 21
Plans and specifications for the work or materials shall at the time 22
of publication be on file at the office of the district and subject 23
to public inspection. Any published notice ordering work to be 24
performed for the district shall be mailed at the time of publication 25
to any established trade association which files a written request 26
with the district to receive such notices. The commission may, at the 27
same time and as part of the same notice, invite tenders for the work 28
or materials upon plans and specifications to be submitted by the 29
bidders. 30
(((4))) (5) As an alternative to the competitive bidding 31
requirements of this section and RCW 54.04.080, a district may let 32
contracts using the small works roster process under RCW 39.04.151 33
through 39.04.154. 34
(((5))) (6) Whenever equipment or materials required by a 35
district are held by a governmental agency and are available for sale 36
but such agency is unwilling to submit a proposal, the commission may 37
ascertain the price of such items and file a statement of such price 38
supported by the sworn affidavit of one member of the commission, and 39
may consider such price as a bid without a deposit or bond.40
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(((6))) (7) Pursuant to RCW 39.04.280, the commission may waive 1
the competitive bidding requirements of this section and RCW 2
54.04.080 if an exemption contained within RCW 39.04.280 applies to 3
the purchase or public work. 4
(((7))) (8)(a) A district may procure public works with a unit 5
priced contract under this section, RCW 54.04.080, or 54.04.085 for 6
the purpose of completing anticipated types of work based on hourly 7
rates or unit pricing for one or more categories of work or trades.8
(b) For the purposes of this section, unit priced contract means 9
a competitively bid contract in which public works are anticipated on 10
a recurring basis to meet the business or operational needs of a 11
district, under which the contractor agrees to a fixed period 12
indefinite quantity delivery of work, at a defined unit price, for 13
each category of work. 14
(c) Unit priced contracts must be executed for an initial 15
contract term not to exceed three years, with the district having the 16
option of extending or renewing the unit priced contract for one 17
additional year. 18
(d) Invitations for unit price bids shall include, for purposes 19
of the bid evaluation, estimated quantities of the anticipated types 20
of work or trades, and specify how the district will issue or release 21
work assignments, work orders, or task authorizations pursuant to a 22
unit priced contract for projects, tasks, or other work based on the 23
hourly rates or unit prices bid by the contractor. Where electrical 24
facility construction or improvement work is anticipated, contractors 25
on a unit priced contract shall comply with the requirements under 26
RCW 54.04.085 (1) through (5). Contracts must be awarded to the 27
lowest responsible bidder as per RCW 39.04.010. 28
(e) Unit price contractors shall pay prevailing wages for all 29
work that would otherwise be subject to the requirements of chapter 30
39.12 RCW. Prevailing wages for all work performed pursuant to each 31
work order must be the prevailing wage rates in effect at the 32
beginning date for each contract year. Unit priced contracts must 33
have prevailing wage rates updated annually. Intents and affidavits 34
for prevailing wages paid must be submitted annually for all work 35
completed within the previous 12-month period of the unit priced 36
contract. 37
(((8))) (9) For the purposes of this section, "lowest responsible 38
bidder" means a bid that meets the criteria under RCW 39.04.350 and 39
has the lowest bid; provided, that if the district commission issues 40
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a written finding that the lowest bidder has delivered a project to 1
the district within the last three years which was late, over budget, 2
or did not meet specifications, and the commission does not find in 3
writing that such bidder has shown how they would improve performance 4
to be likely to meet project specifications then the commission may 5
choose the second lowest bidder whose bid is within five percent of 6
the lowest bid and meets the same criteria as the lowest bidder.7
Sec. 3. RCW 54.04.080 and 1996 c 18 s 12 are each amended to 8
read as follows: 9
Any notice inviting sealed bids shall state generally the work to 10
be done, or the material to be purchased and shall call for proposals 11
for furnishing it, to be sealed and filed with the commission on or 12
before the time named therein. Utilities with a purchasing department 13
are authorized to receive hard copy or electronic bids. Each bid 14
shall be accompanied by a certified or cashier's check, payable to 15
the order of the commission, for a sum not less than five percent of 16
the amount of the bid, or accompanied by a bid bond in an amount not 17
less than five percent of the bid with a corporate surety licensed to 18
do business in the state, conditioned that the bidder will pay the 19
district as liquidated damages the amount specified in the bond 20
unless he or she enters into a contract in accordance with his or her 21
bid and furnishes the performance bond within ten days from the date 22
on which he or she is notified that he or she is the successful 23
bidder. A low bidder who claims error and fails to enter into a 24
contract is prohibited from bidding on the same project if a second 25
or subsequent call for bids is made for the project.26
At the time and place named, the bids shall be publicly opened 27
and read, and the commission shall canvass the bids, and may let the 28
contract to the lowest responsible and responsive bidder upon the 29
plans and specifications on file, or to the best bidder submitting 30
his or her own plans or specifications; or if the contract to be let 31
is to construct or improve electrical facilities, the contract may be 32
let to the lowest bidder prequalified according to the provisions of 33
RCW 54.04.085 upon the plans and specifications on file, or to the 34
best bidder submitting his or her own plans and specifications: 35
PROVIDED, That no contract shall be let for more than ((fifteen)) 25 36
percent in excess of the estimated cost of the materials or work. The 37
commission may reject all bids and readvertise, and in such case all 38
checks shall be returned to the bidders. The commission may procure 39
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materials in the open market, have its own personnel perform the work 1
or negotiate a contract for such work to be performed by others, in 2
lieu of readvertising, if it receives no bid. If the contract is let, 3
all checks shall be returned to the bidders, except that of the 4
successful bidder, which shall be retained until a contract is 5
entered into and a bond to perform the work furnished, with sureties 6
satisfactory to the commission, in an amount to be fixed by the 7
commission, not less than ((twenty-five)) 25 percent of the contract 8
price, in accordance with the bid. If the bidder fails to enter into 9
the contract and furnish the bond within ten days from the date at 10
which he or she is notified that he or ((her [she] )) she is the 11
successful bidder, his or her check and the amount thereof shall be 12
forfeited to the district. 13
The commission shall, by resolution, define the term "same kind 14
of materials, equipment, and supplies" with respect to purchase of 15
items under the provisions of RCW 54.04.070. 16
The term "construction or improvement of any electrical facility" 17
as used in this section and in RCW 54.04.085, shall mean the 18
construction, the moving, maintenance, modification, or enlargement 19
of facilities primarily used or to be used for the transmission or 20
distribution of electricity at voltages above seven hundred fifty 21
volts, including structures directly supporting transmission or 22
distribution conductors but not including site preparation, housing, 23
or protective fencing associated with but not included in a contract 24
for such construction, moving, modification, maintenance, or 25
enlargement of such facilities. 26
The commission shall be the final authority with regard to 27
whether a bid is responsive to the call for bids and as to whether a 28
bidder is a responsible bidder under the conditions of his or her 29
bid. No award of contract shall be invalidated solely because of the 30
failure of any prospective bidder to receive an invitation to bid.31
NEW SECTION. Sec. 4. A new section is added to chapter 54.04 32
RCW to read as follows: 33
(1) For the awarding of a contract to purchase any item, or items 34
of the same kind of materials, equipment, or supplies in an amount 35
exceeding $50,000 per calendar month, but less than $250,000 per 36
calendar month, exclusive of sales tax, the district commission may, 37
in lieu of the procedure described in RCW 54.04.070 and 54.04.080 38
requiring public notice to invite sealed proposals for such 39
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materials, equipment, or supplies, pursuant to commission resolution, 1
use the process provided in RCW 39.04.190. Waiver of the deposit or 2
bid bond required under RCW 54.04.080 may be authorized by the 3
commission in securing such bid quotations. 4
(2) This section applies only to new or existing nonemitting 5
electric generation, electric generation from a renewable resource, 6
energy storage, transmission, or distribution projects as defined in 7
RCW 54.04.070. 8
Sec. 5. RCW 39.04.280 and 1998 c 278 s 1 are each amended to 9
read as follows: 10
This section provides uniform exemptions to competitive bidding 11
requirements utilized by municipalities when awarding contracts for 12
public works and contracts for purchases. The statutes governing a 13
specific type of municipality may also include other exemptions from 14
competitive bidding requirements. The purpose of this section is to 15
supplement and not to limit the current powers of any municipality to 16
provide exemptions from competitive bidding requirements.17
(1) Competitive bidding requirements may be waived by the 18
governing body of the municipality for: 19
(a) Purchases that are clearly and legitimately limited to a 20
single source of supply; 21
(b) Purchases involving special facilities or market conditions;22
(c) Purchases in the event of an emergency; 23
(d) Purchases of insurance or bonds; ((and))24
(e) Until January 1, 2045, purchases involving common facilities 25
as described in RCW 54.16.090, 43.52.300, 35.92.052, or 54.44.020;26
(f) Until January 1, 2045, purchases relating to energy 27
generation, storage, transmission, or distribution facilities if the 28
governing body determines that the expedited procurement action is 29
for proprietary or specialized technologies with no comparable 30
alternatives, is necessary to ensure compliance with electrical 31
reliability standards, or prevent threats to grid reliability; and32
(g) Public works in the event of an emergency.33
(2)(a) The waiver of competitive bidding requirements under 34
subsection (1) of this section may be by resolution or by the terms 35
of written policies adopted by the municipality, at the option of the 36
governing body of the municipality. If the governing body elects to 37
waive competitive bidding requirements by the terms of written 38
policies adopted by the municipality, immediately after the award of 39
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any contract, the contract and the factual basis for the exception 1
must be recorded and open to public inspection. 2
If a resolution is adopted by a governing body to waive 3
competitive bidding requirements under (b) of this subsection, the 4
resolution must recite the factual basis for the exception. This 5
subsection (2)(a) does not apply in the event of an emergency.6
(b) If an emergency exists, the person or persons designated by 7
the governing body of the municipality to act in the event of an 8
emergency may declare an emergency situation exists, waive 9
competitive bidding requirements, and award all necessary contracts 10
on behalf of the municipality to address the emergency situation. If 11
a contract is awarded without competitive bidding due to an 12
emergency, a written finding of the existence of an emergency must be 13
made by the governing body or its designee and duly entered of record 14
no later than two weeks following the award of the contract.15
(3) For purposes of this section "emergency" means unforeseen 16
circumstances beyond the control of the municipality that either: (a) 17
Present a real, immediate threat to the proper performance of 18
essential functions; or (b) will likely result in material loss or 19
damage to property, bodily injury, or loss of life if immediate 20
action is not taken. 21
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