The proposed bill aims to enhance renewable energy initiatives in Washington by introducing various tax incentives and exemptions. It establishes new definitions related to renewable energy and exempts personal property used in the generation and storage of renewable energy from property taxation for facilities that become operational or are repowered on or after January 1, 2026. The bill also mandates annual reporting for these facilities and allows the Department of Revenue to implement necessary rules. Additionally, it introduces a state renewable energy excise tax starting January 1, 2027, with specific rates based on the type of energy and operational date, while allowing local governments to impose their own excise taxes. The bill amends existing laws, including the removal of references to "wind turbines," and adjusts property tax calculations for annexing taxing districts.

Moreover, the bill establishes a local community investment account funded by the state renewable energy excise tax, emphasizing agreements between renewable energy developers and local governments to ensure economic benefits for host communities. It introduces a matching grant program for local investment commitments related to qualifying energy projects and mandates engagement with local tribes during project development. The bill also sets minimum decommissioning standards for wind energy facilities, requiring grantees to restore land post-project and provide financial assurance for removal and restoration. Additionally, it allocates biennial capacity grants to federally recognized tribes for clean energy consultation and climate resilience activities. The act is set to take effect on January 1, 2026, with certain provisions applying to property taxes levied in 2026 and 2027, and will be null and void if funding is not secured by June 30, 2025.

Statutes affected:
Original Bill: 84.55.010, 84.55.030, 84.55.092, 52.02.160, 82.32.330, 82.96.020
Substitute Bill: 84.55.010, 84.55.030, 84.55.092, 52.02.160, 82.32.330, 82.96.020
Second Substitute: 84.55.010, 84.55.030, 84.55.092, 52.02.160, 82.32.330