The bill amends several sections of the Washington Clean Energy Transformation Act, specifically RCW 19.405.020, 19.405.030, and 19.405.100, to clarify definitions and compliance requirements for electric utilities regarding coal-fired resources and wholesale power purchases. It introduces provisions allowing limited-duration wholesale power purchases from coal-fired resources, with contracts capped at three months, or six months for system sales to meet seasonal resource adequacy. Additionally, electricity purchased from the Bonneville Power Administration under long-term agreements is exempt from certain compliance requirements if the source was not known to be coal-fired at the time of the transaction. The bill mandates that by December 31, 2025, electric utilities must eliminate coal-fired resources from their electricity allocation, while allowing decommissioning costs to be included in electric rates and requiring accelerated depreciation schedules for coal-fired resources.

Furthermore, the bill streamlines compliance processes for electric utilities and enhances coordination between the commission and the department in developing necessary rules. It allows the commission to adopt rules for investor-owned utilities and the department for consumer-owned utilities, while maintaining the rate-making authority of consumer-owned utilities. Starting July 1, 2026, consumer-owned electric utilities must include specific information in their interim performance reports regarding unspecified electricity contracts longer than 31 days. Investor-owned utilities are also required to report similar information, and all reports must be accessible to retail electric customers. Additionally, the department of ecology is tasked 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