The proposed bill seeks to modernize Washington's Energy Independence Act by eliminating regulatory duplication with the Clean Energy Transformation Act, thereby streamlining regulations for utilities. It retains the conservation elements of the Energy Independence Act while removing specific generation resource requirements, such as the obligation for utilities to obtain a certain percentage of their electricity from new renewable resources by 2020. Instead, the focus shifts to cost-effective energy conservation, allowing the Department to provide analysis and advisory opinions on proposed conservation resources. This approach aims to simplify compliance for utilities while ensuring a commitment to energy conservation and sustainability.

Additionally, the bill updates penalties for utilities that fail to meet energy conservation targets, establishing a fixed penalty of $50 per megawatt-hour of shortfall, adjusted annually for inflation. It mandates annual reporting on progress towards energy targets and establishes that all retail electricity sales in Washington must be greenhouse gas neutral by 2030. The bill also sets stringent criteria for emissions reductions from energy transformation projects and outlines the responsibilities of electric utilities in pursuing cost-effective conservation and efficiency resources. A notable change is the adjustment of the customer threshold for multistate electric utilities, allowing them to apply early action compliance credits for coal-fired resource reductions. The bill is set to take effect on January 1, 2030.

Statutes affected:
Original Bill: 19.285.010, 19.285.020, 19.285.040, 19.285.045, 19.285.060, 19.285.070, 19.285.080, 19.29A.060, 19.405.040