The bill establishes a framework for large combination utilities, specifically gas companies serving over 500,000 customers in Washington, to transition towards a clean energy economy by decarbonizing their systems. It mandates these utilities to prioritize efficient and cost-effective measures to reduce emissions, invest in necessary energy resources, and ensure equitable benefits for historically underserved communities. The legislation requires integrated system planning for gas system decarbonization and electrification, with plans needing approval from the utilities and transportation commission. Additionally, it restricts large gas companies from providing service to new customers in areas that did not receive gas service as of June 30, 2023, and introduces definitions for terms related to alternative energy resources and emissions reduction.

The bill also requires large gas companies to file a gas decarbonization plan as part of their multiyear rate plans starting in 2026, which must include programs supporting low-income and vulnerable populations. It sets cost targets for gas decarbonization and electrification plans at 2.5% of the respective revenue requirements approved by the commission. The commission will evaluate and approve these plans based on public interest criteria, including emissions reduction effectiveness and system reliability. The act, designated as the Washington Decarbonization Act for large gas companies, emphasizes community workforce agreements for projects exceeding $10 million and encourages collaboration between electric and gas service providers to enhance electrification efforts, taking effect immediately to promote public health and safety initiatives.

Statutes affected:
Original Bill: 80.28.010
Substitute Bill: 80.28.010