The bill, titled the "Clean and Reliable Energy Act," seeks to enhance regulatory certainty for investments in new energy generation resources in Washington state, in response to the anticipated rapid growth in electricity demand driven by economic expansion and the electrification of transportation. It amends existing laws, specifically RCW 19.405.090, 19.405.040, and 19.405.050, while introducing new sections to facilitate compliance and address potential energy shortages. Key provisions include adjustments to administrative penalties for utilities that fail to meet established standards, with penalties set to increase biennially starting in 2027, and the allowance for temporary exemptions from compliance obligations under certain conditions.

The legislation mandates that by January 1, 2030, electric utilities must achieve greenhouse gas neutrality and outlines alternative compliance options, such as payments and renewable energy credits. It establishes a framework to ensure that by January 1, 2045, all electricity sales to Washington retail customers come from nonemitting electric generation and renewable resources. Notably, the bill clarifies that utilities will not be in violation of compliance requirements during a declared resource adequacy crisis and sets criteria for energy transformation projects, emphasizing real and verifiable emissions reductions. Additionally, it allows for early action compliance credits for multistate electric utilities that eliminate coal-fired resources, provided they demonstrate a corresponding reduction in greenhouse gas emissions.

Statutes affected:
Original bill: 19.405.090, 19.405.040, 19.405.050