The proposed bill aims to enhance renewable energy development in Washington through a series of tax incentives and community investments. It introduces new definitions related to renewable energy and establishes property tax exemptions for personal property used in renewable energy generation and storage for facilities operational or repowered after January 1, 2026. The bill mandates annual reporting for qualified renewable energy facilities and allows the Department of Revenue to implement necessary rules. A state renewable energy excise tax will be imposed starting January 1, 2027, with revenues directed to a local community investment account. Additionally, counties are permitted to impose a local renewable energy excise tax, with specified tax rates for different renewable energy systems and provisions for tax credits related to property taxes during construction.

The legislation also modifies existing property tax laws, requiring taxing districts to adjust their levies based on renewable energy excise tax revenues. It clarifies conditions for property tax revenue increases, particularly for renewable energy facilities, and emphasizes the confidentiality of tax information. The bill establishes a local community investment account funded by the state renewable energy excise tax, with expenditures aimed at supporting local renewable energy projects. It outlines eligibility criteria for local jurisdictions to receive matching funds and sets decommissioning requirements for wind power facilities, including financial assurance for removal and restoration. Additionally, the bill introduces biennial capacity grants for federally recognized tribes to support clean energy projects, with the act set to take effect on January 1, 2026.

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