The proposed bill seeks to regulate emerging large energy use facilities, particularly data centers, in Washington State, addressing their significant electricity consumption and its implications for energy affordability, reliability, and environmental sustainability. It establishes a framework that mandates both investor-owned and consumer-owned utilities to develop tariffs or policies for these facilities, ensuring they do not impose undue costs on other customers or the electric grid. Key provisions include the requirement for these facilities to publish sustainability reports every three years, adhere to specific utility tariff standards, and agree to approved tariffs before receiving electricity service. New facilities must also comply with best practices for interconnection with electric utilities starting January 1, 2027, and those commencing operations after July 1, 2026, must use a significant percentage of renewable or nonemitting electricity.

Additionally, the bill introduces tax exemptions for qualifying businesses and tenants related to eligible server equipment and power infrastructure in data centers, with specific criteria for maintaining family wage employment positions. It amends existing tax exemption laws to require compliance with community workforce agreements, ensuring prevailing wages and apprenticeship utilization for new construction work. The legislation also includes a tax preference performance statement to evaluate the effectiveness of these exemptions, with a mandated review by the joint legislative audit and review committee by July 1, 2029. Overall, the bill aims to balance the growth of the data center industry with sustainable energy practices and consumer protection while enhancing accountability in the energy sector.

Statutes affected:
Original bill: 19.29A.010, 70A.65.120
Substitute bill: 19.29A.010, 70A.65.120
Second substitute: 19.29A.010, 70A.65.120
Engrossed second substitute: 19.29A.010, 70A.65.120, 82.08.988