The proposed bill aims to enhance renewable energy development in Washington by introducing a state renewable energy excise tax on renewable energy generating systems and battery electric storage systems, effective January 1, 2028. The bill specifies different tax rates for solar, wind, and battery storage systems, while exempting personal property used primarily for renewable energy generation in qualified facilities that become operational or are repowered after this date from property taxation. Additionally, it allows counties to impose local renewable energy excise taxes under similar conditions and provides provisions for facilities under construction before the effective date to opt into the new tax system and receive property tax exemptions if they meet certain criteria.

The legislation also amends several sections of the Revised Code of Washington (RCW) related to property tax assessments and tax information disclosure. It enhances the confidentiality of tax information and establishes a local investment distribution account to allocate funds from the state renewable energy excise tax to counties hosting qualifying energy projects. The bill mandates that counties distribute these funds to local taxing districts based on property tax levies and emphasizes early engagement with federally recognized tribes during project development. Furthermore, it creates a renewable energy development local investment distribution program and a capacity grant program for tribes, ensuring a minimum biennial allocation of $21.5 million for tribal clean energy and climate resilience projects. The bill is set to take effect on January 1, 2028, with provisions for its application to property taxes levied for collection in 2028 and thereafter.

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
Third substitute: 84.55.010, 84.55.020, 84.55.030, 84.55.120, 82.32.330, 43.21C.525