The proposed bill aims to enhance renewable energy development in Washington by introducing a new renewable energy excise tax applicable to qualified renewable energy facilities and battery electric storage systems that begin operations or are repowered after January 1, 2028. It defines key terms related to renewable energy and establishes property tax exemptions for personal property used in these facilities under certain conditions. The bill also allows counties to impose local renewable energy excise taxes, which will be in addition to the state tax, and sets specific tax rates based on the type of energy generated. Furthermore, it mandates annual reporting requirements for compliance and transparency, and requires a review by the joint legislative audit and review committee to assess the tax rates and their impact on taxpayers by October 31, 2031.

In addition to the new tax structure, the bill creates a local investment distribution account funded by the state renewable energy excise tax to support local investments in communities hosting renewable energy projects. It establishes a renewable energy development program to allocate funds to these counties and provides technical assistance for siting renewable energy projects. The bill also includes provisions for biennial capacity grants to federally recognized Indian tribes in Washington, emphasizing their sovereignty in fund usage. It repeals certain existing laws related to renewable energy and clarifies that specific tax regulations do not apply to this act, with a severability clause ensuring the remainder of the act remains effective if any part is invalidated. The act is set to take effect on January 1, 2028.

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
Engrossed third substitute: 84.55.010, 84.55.020, 84.55.030, 84.55.120, 82.32.330, 43.21C.525
Bill as passed Legislature: 84.55.010, 84.55.020, 84.55.030, 84.55.120, 82.32.330, 43.21C.525
Session law: 84.55.010, 84.55.020, 84.55.030, 84.55.120, 82.32.330, 43.21C.525