The bill amends RCW 19.405.040 to enhance investment options for electric utilities under the 20 percent alternative compliance option of the Clean Energy Transformation Act's greenhouse gas neutral standard. It establishes that all retail electricity sales to Washington customers must be greenhouse gas neutral by January 1, 2030, and outlines compliance requirements for electric utilities, including the use of renewable resources and nonemitting electric generation. The bill specifies that utilities can satisfy up to 20 percent of their compliance obligation through alternative options, which now include investments in energy transformation projects, addressing transmission capacity constraints, and integrating distributed energy resources, among others.

Additionally, the bill introduces new provisions that allow every million dollars spent on energy transformation projects to count as 0.25 percent compliance towards the 20 percent alternative compliance option. It also sets criteria for these investments to ensure they do not rely on state funding or existing legal requirements. The amendments clarify that hydroelectric generation must not involve new diversions or expansions that conflict with fish recovery plans, and it emphasizes the need for equitable distribution of benefits from the transition to clean energy, particularly for vulnerable populations. Overall, the bill aims to provide more flexibility and options for electric utilities to meet greenhouse gas neutrality goals while ensuring environmental and social equity.

Statutes affected:
Original bill: 19.405.040