The bill amends various sections of the Washington Clean Energy Transformation Act, specifically RCW 19.405.020, 19.405.030, and 19.405.100, to enhance clarity around definitions and compliance obligations for electric utilities concerning coal-fired resources and wholesale power purchases. It introduces provisions that permit limited-duration wholesale power purchases from coal-fired resources, capped at three months for contracts and six months for system sales, aimed at meeting seasonal resource adequacy requirements. Additionally, it exempts electricity purchased from the Bonneville Power Administration under long-term agreements from certain compliance requirements unless it is known to originate from a coal-fired generating unit at the time of the transaction.

Furthermore, the bill mandates that by December 31, 2025, electric utilities must phase out coal-fired resources from their electricity allocation, while allowing for the inclusion of decommissioning and remediation costs in electric rates. It accelerates depreciation schedules for non-useful coal-fired resources and qualified transmission lines and establishes penalties for non-compliance. A significant insertion requires consumer-owned electric utilities to report specific information in their interim performance reports starting July 1, 2026, including details on unspecified electricity contracts exceeding 31 days. The bill also tasks the department of ecology with creating rules for energy transformation project investments and tracking thermal renewable energy credits, with a deadline for rule adoption set for January 1, 2021.

Statutes affected:
Original Bill: 19.405.020, 19.405.030
Engrossed Bill: 19.405.020, 19.405.030
Bill as Passed Legislature: 19.405.020, 19.405.030, 19.405.100
Session Law: 19.405.020, 19.405.030, 19.405.100