The proposed bill aims to incentivize the adoption of grid-connected residential battery energy storage systems in Washington State to enhance energy storage capacity and improve resilience against power outages caused by peak electrical loads and catastrophic events. It establishes a residential battery incentive grant program to assist low-income and moderate-income customers in accessing these systems, while also maximizing benefits for all retail electric customers. The bill outlines the definitions of key terms, such as "customer-generator," "demand charge," and "residential battery energy storage system," and sets forth the criteria for electric utilities to participate in the grant program, including requirements for flexible demand programs and upfront incentive payments.

Additionally, the bill specifies that no more than 35% of funding in a biennium can be awarded to a single utility, and it reserves at least 40% of the grant funding for low-income and moderate-income households. It mandates that electric utilities with over 100,000 retail customers implement a flexible demand program by December 31, 2026, and allows for a one-time battery incentive payment for qualified customers who enroll in these programs. The incentive amounts are set at up to $13,800 for low-income and moderate-income customers and up to $8,100 for all other customers, with provisions for adjustments based on market conditions. Furthermore, the bill clarifies that grants received by electric utilities under this program are exempt from certain tax provisions.