Beginning on page 5, line 33, after "(i)" strike all material through "target." on page 6, line 9, and insert "(i) A qualifying utility shall be considered in compliance with an annual target in (a) of this subsection if, as of January 1st of the target year:
     (A) The qualifying utility has an agreement under chapter 54.48 RCW with any qualifying utility that does not utilize the alternative compliance mechanism under this subsection (2)(i) and with which the qualifying utility has an adjoining service area; and
     (B) The electricity from the qualifying utility's:
     (I) Electric generating resources, other than eligible renewable resources, either owned or under contract by January 1, 2010, and available to serve the utility's load during the target year; and
     (II) Eligible renewable resources either owned or under contract for the target year and available to serve the utility's load during the target year (or equivalent renewable energy credits), meets or exceeds the utility's load as described in (c) of this subsection.
     (ii) Nothing in this subsection (2)(i) limits or interferes with a qualifying utility's authority to sell or otherwise dispose of any excess of electricity or credits as determined in (i)(i) of this subsection, whether the excess of electricity or credits is greater or less than the annual target.
     (iii) If at any time after the effective date of this section a utility violates an agreement under chapter 54.48 RCW or extends electric service to any customer of a qualifying utility in an adjoining service area without the consent of the qualifying utility, the utility that has violated the agreement is immediately subject to the targets established in (a) of this subsection."