BILL REQ. #:  H-0817.3 

Read first time 01/22/13.   Referred to Committee on Technology & Economic Development.

     AN ACT Relating to creating clean energy jobs in Washington state through renewable energy incentives; amending RCW 82.16.110, 82.16.120, 43.180.260, and 82.16.130; and adding new sections to chapter 82.16 RCW.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION.  Sec. 1   A new section is added to chapter 82.16 RCW to read as follows:
     The legislature intends to promote the development of clean energy jobs in Washington state by: Modifying a tax credit encouraging energy consumers to meet their on-site electricity demands by installing renewable energy systems, establishing a fund to incubate clean energy manufacturing in Washington by awarding tax credits through a competitive process that gives preference to systems built in Washington, and establishing performance milestones to measure the level of success achieved.

Sec. 2   RCW 82.16.110 and 2011 c 179 s 2 are each amended to read as follows:
     The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
     (1) "Administrator" means an owner and assignee of a community solar project as defined in subsection (((2))) (3)(a)(i) of this section that is responsible for applying for the investment cost recovery incentive on behalf of the other owners and performing such administrative tasks on behalf of the other owners as may be necessary, such as receiving investment cost recovery incentive payments, and allocating and paying appropriate amounts of such payments to the other owners.
     (2) "Commission" means the Washington state housing finance commission as defined in RCW 43.180.020.
     (3)(a) "Community solar project" means:
     (i) A solar energy system that is capable of generating up to seventy-five kilowatts of electricity and is owned by local individuals, households, nonprofit organizations, or nonutility businesses that is placed on the property owned by a cooperating local governmental entity that is not in the light and power business or in the gas distribution business;
     (ii) A utility-owned solar energy system that is capable of generating up to seventy-five kilowatts of electricity and that is voluntarily funded by the utility's ratepayers where, in exchange for their financial support, the utility gives contributors a payment or credit on their utility bill for the value of the electricity produced by the project; or
     (iii) A solar energy system, placed on the property owned by a cooperating local governmental entity that is not in the light and power business or in the gas distribution business, that is capable of generating up to seventy-five kilowatts of electricity, and that is owned by a company whose members are each eligible for an investment cost recovery incentive for the same customer-generated electricity as provided in RCW 82.16.120.
     (b) For the purposes of "community solar project" as defined in (a) of this subsection:
     (i) "Company" means an entity that is:
     (A)(I) A limited liability company;
     (II) A cooperative formed under chapter 23.86 RCW; or
     (III) A mutual corporation or association formed under chapter 24.06 RCW; and
     (B) Not a "utility" as defined in this subsection (((2))) (3)(b); and
     (ii) "Nonprofit organization" means an organization exempt from taxation under 26 U.S.C. Sec. 501(c)(3) of the federal internal revenue code of 1986, as amended, as of January 1, 2009; and
     (iii) "Utility" means a light and power business, an electric cooperative, or a mutual corporation that provides electricity service.
     (((3))) (4) "Customer-generated electricity" means a community solar project or the alternating current electricity that is generated from a renewable energy system located in Washington and installed on an individual's, businesses', or local government's real property that is also provided electricity generated by a light and power business. Except for community solar projects, a system located on a leasehold interest does not qualify under this definition. Except for utility-owned community solar projects, "customer-generated electricity" does not include electricity generated by a light and power business with greater than one thousand megawatt hours of annual sales or a gas distribution business.
     (((4))) (5) "Economic development kilowatt-hour" means the actual kilowatt-hour measurement of customer-generated electricity multiplied by the appropriate economic development factor.
     (((5))) (6) "Local governmental entity" means any unit of local government of this state including, but not limited to, counties, cities, towns, municipal corporations, quasi-municipal corporations, special purpose districts, and school districts.
     (((6))) (7) "Photovoltaic cell" means a device that converts light directly into electricity without moving parts.
     (((7))) (8) "Qualifying application" means the initial application made by a program participant for a ten-year annual investment cost recovery incentive payment pursuant to RCW 82.16.120.
     (9) "Renewable energy system" means a solar energy system, an anaerobic digester as defined in RCW 82.08.900, or a wind generator used for producing electricity.
     (((8))) (10) "Solar energy system" means any device or combination of devices or elements that rely upon direct sunlight as an energy source for use in the generation of electricity.
     (((9))) (11) "Solar inverter" means the device used to convert direct current to alternating current in a solar energy system.
     (((10))) (12) "Solar module" means the smallest nondivisible self-contained physical structure housing interconnected photovoltaic cells and providing a single direct current electrical output.
     (((11))) (13) "Stirling converter" means a device that produces electricity by converting heat from a solar source utilizing a stirling engine.

Sec. 3   RCW 82.16.120 and 2011 c 179 s 3 are each amended to read as follows:
     (1) The incentive provided pursuant to this section is designated as the "phase I investment cost recovery incentive program."
     (2)(a) Any individual, business, local governmental entity, not in the light and power business or in the gas distribution business, or a participant in a community solar project may apply to the light and power business serving the situs of the system, each fiscal year beginning on July 1, 2005, and ending June 30, 2013, for an investment cost recovery incentive for each kilowatt-hour from a customer-generated electricity renewable energy system.
     (b) In the case of a community solar project as defined in RCW 82.16.110(((2))) (3)(a)(i), the administrator must apply for the investment cost recovery incentive on behalf of each of the other owners.
     (c) In the case of a community solar project as defined in RCW 82.16.110(((2))) (3)(a)(iii), the company owning the community solar project must apply for the investment cost recovery incentive on behalf of each member of the company.
     (((2))) (3)(a) Before submitting for the first time the application to qualify for the incentive allowed under subsection (((4))) (5) of this section, the applicant must submit to the department of revenue and to the climate and rural energy development center at the Washington State University, established under RCW 28B.30.642, a certification in a form and manner prescribed by the department that includes, but is not limited to, the following information:
     (i) The name and address of the applicant and location of the renewable energy system.
     (A) If the applicant is an administrator of a community solar project as defined in RCW 82.16.110(((2))) (3)(a)(i), the certification must also include the name and address of each of the owners of the community solar project.
     (B) If the applicant is a company that owns a community solar project as defined in RCW 82.16.110(((2))) (3)(a)(iii), the certification must also include the name and address of each member of the company;
     (ii) The applicant's tax registration number;
     (iii) That the electricity produced by the applicant meets the definition of "customer-generated electricity" and that the renewable energy system produces electricity with:
     (A) Any solar inverters and solar modules manufactured in Washington state;
     (B) A wind generator powered by blades manufactured in Washington state;
     (C) A solar inverter manufactured in Washington state;
     (D) A solar module manufactured in Washington state;
     (E) A stirling converter manufactured in Washington state; or
     (F) Solar or wind equipment manufactured outside of Washington state;
     (iv) That the electricity can be transformed or transmitted for entry into or operation in parallel with electricity transmission and distribution systems; and
     (v) The date that the renewable energy system received its final electrical permit from the applicable local jurisdiction.
     (b) Within thirty days of receipt of the certification the department of revenue must notify the applicant by mail, or electronically as provided in RCW 82.32.135, whether the renewable energy system qualifies for an incentive under this section. The department may consult with the climate and rural energy development center to determine eligibility for the incentive. System certifications and the information contained therein are subject to disclosure under RCW 82.32.330(3)(l).
     (((3)(a) By August 1st of each year application for the incentive must be made to the light and power business serving the situs of the system by certification in a form and manner prescribed by the department that includes, but is not limited to, the following information:
     (i) The name and address of the applicant and location of the renewable energy system.
     (A) If the applicant is an administrator of a community solar project as defined in RCW 82.16.110(2)(a)(i), the application must also include the name and address of each of the owners of the community solar project.
     (B) If the applicant is a company that owns a community solar project as defined in RCW 82.16.110(2)(a)(iii), the application must also include the name and address of each member of the company;
     (ii) The applicant's tax registration number;
     (iii) The date of the notification from the department of revenue stating that the renewable energy system is eligible for the incentives under this section; and
     (iv) A statement of the amount of kilowatt-hours generated by the renewable energy system in the prior fiscal year.
     (b) Within sixty days of receipt of the incentive certification)) (4)(a) In order to receive incentive payments pursuant to this section, by August 1st of each year, each qualifying renewable energy system owner or administrator must submit a statement of the amount of kilowatt-hours generated by the renewable energy system in the prior fiscal year to the light and power business serving the situs of the system. The statement must be in the form of a sworn affidavit signed by system owners or, where applicable, system administrators. The amount of kilowatt-hours generated may be determined by reading an inverter connected to the system.
     (b) The light and power business serving the situs of the system may apply to waive the annual certification requirement established by (a) of this subsection if the light and power business has the ability to remotely read kilowatt-hours generated by the renewable energy system.
     (c) The light and power business must submit the application for a waiver to the department in a form and manner prescribed by the department. The application must list the meter reading methods that will be used by the light and power business and state the estimated accuracy of such methods.
     (d) A light and power business reporting a meter reading method that is ninety-eight percent accurate qualifies to meet the waiver requirement under this section, unless the department proves a less accurate read rate.
     (e) Within sixty days of receipt of the incentive certification, or by October 1st of each year, when a waiver is in place, the light and power business serving the situs of the system must notify the applicant in writing whether the incentive payment will be authorized or denied. ((The business may consult with the climate and rural energy development center to determine eligibility for the incentive payment.)) Incentive certifications and the information contained therein are subject to disclosure under RCW 82.32.330(3)(l).
     (((c))) (f)(i) Persons, administrators of community solar projects, and companies receiving incentive payments must keep and preserve, for a period of five years, suitable records as may be necessary to determine the amount of incentive applied for and received. Such records must be open for examination at any time upon notice by the light and power business that made the payment or by the department. If upon examination of any records or from other information obtained by the business or department it appears that an incentive has been paid in an amount that exceeds the correct amount of incentive payable, the business may assess against the person for the amount found to have been paid in excess of the correct amount of incentive payable and must add thereto interest on the amount. Interest is assessed in the manner that the department assesses interest upon delinquent tax under RCW 82.32.050.
     (ii) If it appears that the amount of incentive paid is less than the correct amount of incentive payable the business may authorize additional payment.
     (((4))) (5) Except for community solar projects, the investment cost recovery incentive may be paid fifteen cents per economic development kilowatt-hour unless requests exceed the amount authorized for credit to the participating light and power business. For community solar projects, the investment cost recovery incentive may be paid thirty cents per economic development kilowatt-hour unless requests exceed the amount authorized for credit to the participating light and power business. For the purposes of this section, the rate paid for the investment cost recovery incentive may be multiplied by the following factors:
     (a) For customer-generated electricity produced using solar modules manufactured in Washington state or a solar stirling converter manufactured in Washington state, two and four-tenths;
     (b) For customer-generated electricity produced using a solar or a wind generator equipped with an inverter manufactured in Washington state, one and two-tenths;
     (c) For customer-generated electricity produced using an anaerobic digester, or by other solar equipment or using a wind generator equipped with blades manufactured in Washington state, one; and
     (d) For all other customer-generated electricity produced by wind, eight-tenths.
     (((5))) (6)(a) No individual, household, business, or local governmental entity is eligible for incentives provided under subsection (((4))) (5) of this section for more than five thousand dollars per year.
     (b) Except as provided in (c) through (e) of this subsection (((5))) (6), each applicant in a community solar project is eligible for up to five thousand dollars per year.
     (c) Where the applicant is an administrator of a community solar project as defined in RCW 82.16.110(((2))) (3)(a)(i), each owner is eligible for an incentive but only in proportion to the ownership share of the project, up to five thousand dollars per year.
     (d) Where the applicant is a company owning a community solar project that has applied for an investment cost recovery incentive on behalf of its members, each member of the company is eligible for an incentive that would otherwise belong to the company but only in proportion to each ownership share of the company, up to five thousand dollars per year. The company itself is not eligible for incentives under this section.
     (e) In the case of a utility-owned community solar project, each ratepayer that contributes to the project is eligible for an incentive in proportion to the contribution, up to five thousand dollars per year.
     (((6))) (7) If requests for the investment cost recovery incentive exceed the amount of funds available for credit to the participating light and power business, the incentive payments must be reduced proportionately.
     (((7))) (8) The climate and rural energy development center at Washington State University energy program may establish guidelines and standards for technologies that are identified as Washington manufactured and therefore most beneficial to the state's environment.
     (((8))) (9) The environmental attributes of the renewable energy system belong to the applicant, and do not transfer to the state or the light and power business upon receipt of the investment cost recovery incentive.
     (((9))) (10)(a) No new renewable energy systems may qualify to receive the incentive created under this section after June 30, 2013; and
     (b) No incentive may be paid under this section for kilowatt-hours generated before July 1, 2005, or after June 30, ((2020)) 2023.

NEW SECTION.  Sec. 4   A new section is added to chapter 82.16 RCW to read as follows:
     (1) This section is known as the "phase II investment cost recovery incentive program."
     (2) The definitions in this subsection apply throughout this section unless context clearly requires otherwise.
     (a) "Customer-generated electricity" means the alternating current electricity that is generated from a renewable energy system located in Washington and installed on an individual's, businesses', or local government's real property that is also provided electricity generated by a light and power business. "Customer-generated electricity" does not include electricity generated by a community solar project as defined in RCW 82.16.110.
     (b) "Customer" means an individual, business not in the light and power business, or local government that has a customer-generated electricity system installed on its real property.
     (c) "Phase II investment cost recovery incentive payment" means an incentive payment made pursuant to this section.
     (3) Beginning on July 1, 2013, light and power businesses must offer to qualifying customers annual phase II investment cost recovery incentive payments for a term of ten years.
     (a) The term begins on the first day after the commission certifies a system for the incentive or on the first day after the system has received its final electrical permit from the relevant jurisdiction, whichever date is later.
     (b) By July 15, 2013, the department must determine the total dollar amount of all credits that it awarded pursuant to RCW 82.16.120 to each light and power business against taxes due, since the phase I investment cost recovery incentive program's inception in 2005 until June 30, 2013, and must provide this information to the commission and to each light and power business. Each business' total dollar amount is multiplied by two to establish the on-site generation fund that must be maintained by that light and power business to provide phase II incentive payments to customers.
     (4) Beginning August 1, 2013, a customer may apply to the light and power business that provides electricity to the customer for a phase II investment cost recovery incentive payment for each kilowatt-hour generated in Washington by a customer-generated electricity system. A customer may not recover payments for net kilowatt-hours produced in excess of the net kilowatt-hours consumed at the metered location, as calculated annually.
     (5) A customer seeking to qualify for phase II investment cost recovery incentive payments must obtain certification from the commission. The customer must submit a completed application in a form and manner prescribed by the commission.
     (6)(a) Before June 30, 2013, the department must develop an application form. The application form must include, but is not limited to, the following information:
     (i) The name and address of the applicant and location of the renewable energy system;
     (ii) The applicant's tax registration number;
     (iii) A statement that the electricity produced by the applicant meets the definition of "customer-generated electricity" and that the electricity can be transformed or transmitted for entry into or operation in parallel with electricity transmission and distribution systems;
     (iv) A statement that the renewable energy system produces electricity with:
     (A) All solar inverters and solar modules manufactured in Washington state;
     (B) A wind generator powered by blades manufactured in Washington state;
     (C) A solar inverter manufactured in Washington state;
     (D) A solar module manufactured in Washington state;
     (E) A stirling converter manufactured in Washington state; or
     (F) No solar or wind equipment manufactured within Washington state; and
     (v) If the renewable energy system has received its final electrical permit from the applicable local jurisdiction, the date upon which this permit was issued.
     (b) Within thirty days of receipt of the application, the department must notify the applicant by mail, or electronically as provided in RCW 82.32.135, whether the customer's renewable energy system qualifies for an incentive under this section. The department may consult with the light and power business providing electricity to the system, or others as necessary, to determine eligibility for the incentive. System certifications and the information contained therein are subject to disclosure under chapter 42.56 RCW and RCW 82.32.330.
     (7) After June 30, 2020, the department may not approve for certification a renewable energy system under this section.
     (8) After a customer has been certified to receive a phase II incentive, the customer must submit a report by August 1st of each year to the light and power business, in a form established by the department, declaring the number of kilowatt-hours generated by the system over the course of the fiscal year. This amount may be determined by the customer by reading the inverter connected to the system.      
     (9)(a) The light and power business serving the system may obtain a waiver of the annual reporting requirement under subsection (8) of this section on behalf of the customer if the light and power business has the ability to remotely read kilowatt-hours generated by the renewable energy system in the prior fiscal year.
     (b) The light and power business must submit to the department a written waiver application in a form and manner prescribed by the department.
     (c) The waiver application must list the meter reading methods that will be used by the light and power business and state the estimated accuracy of such methods.
     (d) A light and power business reporting a meter reading method that is ninety-eight percent accurate qualifies to meet the waiver requirement under this section, unless the department proves a less accurate read rate.
     (e) Once a waiver has been granted, it operates to waive the reporting requirement as long as the light and power business retains the ability to remotely read the kilowatt-hours generated. The light and power business, upon receipt of the waiver, must notify the customer that the reporting requirement has been waived.
     (10) Customers must keep and preserve, for a period of five years, suitable records as may be necessary to determine the amount of incentive applied for and received. Such records must be open for examination at any time upon notice by the light and power business that made the payment, by the commission, or by the department.
     (a) If upon examination of any records or from other information obtained by the light and power business, commission, or department, it appears that an incentive has been paid in an amount that exceeds the correct amount of incentive payable, the light and power business must assess against the customer for the amount found to have been paid in excess of the correct amount of incentive payable and must add thereto interest on the amount. Interest is assessed in the manner that the department assesses interest upon delinquent tax under RCW 82.32.050.
     (b) If it appears that the amount of incentive paid is less than the correct amount of incentive payable, the light and power business must authorize additional payment.
     (11) The phase II investment cost recovery incentive may be paid initially at an incentive base rate of fifteen cents per economic development kilowatt-hour for all renewable energy systems participating in the program under this section.
     (a) The base rate must be adjusted downwards if requests exceed the amount authorized for credit to the participating light and power business.
     (b) The base rate is subject to the market correction factor beginning July 1, 2018. If the base rate, once subject to the market correction factor, is less than the retail cost of electricity offered by the light and power business serving the customer-generated electricity system, the light and power business is not eligible for the investment cost recovery incentive payments for that fiscal year.
     (c) The base rate paid for the phase II investment cost recovery incentive may be multiplied by the following factors:
     (i) For customer-generated electricity produced using solar modules manufactured in Washington state or a solar stirling converter manufactured in Washington state, two and four-tenths;
     (ii) For customer-generated electricity produced using a solar or wind generator equipped with an inverter manufactured in Washington state, one and two-tenths;
     (iii) For customer-generated electricity produced using an anaerobic digester, or by other solar equipment or using a wind generator equipped with blades manufactured in Washington state, one; and
     (iv) For all other customer-generated electricity produced by wind, eight-tenths.
     (d) The climate and rural energy development center at Washington State University energy program may establish guidelines and standards for technologies that are identified as Washington manufactured and therefore most beneficial to the state's environment.
     (12) The commission must announce the incentive rate no later than June 30th of each year until 2029. In establishing the incentive rate, the commission must consult with the department of commerce to find the market correction factor.
     (13) If requests for the phase II investment cost recovery incentive in a given fiscal year exceed the amount of funds available for credit to the participating light and power business, the incentive payments must be reduced proportionately.
     (14) After June 30, 2023, any remaining unused tax credits must be transferred to the sustainable energy trust as established by RCW 43.180.260.
     (15) No incentive may be paid under this section for kilowatt-hours generated before July 1, 2013, or after June 30, 2030.

Sec. 5   RCW 43.180.260 and 2009 c 65 s 3 are each amended to read as follows:
     (1) If economically feasible, the commission ((shall)) must develop and implement a sustainable energy trust program to provide financing for qualified improvement projects. In developing the sustainable energy trust program, the commission ((shall)) must establish eligibility criteria for financing that will enable it to choose eligible applicants who are likely to repay loans made or acquired by the commission and funded from the proceeds of commission bonds.
     (2) The commission ((shall)) must, if economically feasible:
     (a) Issue bonds, as defined in RCW 43.180.020, for the purpose of financing loans for qualified energy efficiency and renewable energy improvement projects in accordance with RCW 43.180.150;
     (b) Participate fully in federal and other governmental programs and take actions that are necessary and consistent with this chapter to secure to itself and the people of the state the benefits of programs to promote energy efficiency and renewable energy technologies;
     (c) Contract with a certifying authority to accept applications for energy efficiency and renewable energy improvement projects, to review applications, including binding fixed price bids for the improvements, and to approve qualified improvements for financing by the commission. For solar electric systems, the certifying authority must use an application certification process similar to the investment cost recovery incentive application process provided under RCW 82.16.120. No work by a certifying authority may commence under this section until a request has been made by the commission; and
     (d) Before entering into a contract with a certifying authority as defined in RCW 43.180.020(2)(b), consult with the Washington State University extension energy ((extension [extension energy])) program to determine which potential improvement technologies are appropriate.
     (3) There is hereby created within the sustainable energy trust program a green jobs tax credit account to promote installation of renewable energy systems in the state of Washington, giving preference to systems that were manufactured in the state of Washington. Within six months of the effective date of this section, the commission must establish and implement a competitive process to award tax credits from the green jobs tax credit account to any legal entity in the state of Washington.
     (a) The commission must establish objective, competitive criteria for awarding tax credits that include, but are not limited to:
     (i) Whether the system contains Washington-manufactured components;
     (ii) The system's cost-effectiveness, based on the price per kilowatt-hour capacity installed or based on the estimated life-cycle cost per kilowatt-hour generated;
     (iii) The degree to which installation of the system or type of system contributes to verifiable job creation in the state of Washington; and
     (iv) The degree to which the state investment of tax credits leverages nonstate funds.
     (b) The identity of the light and power business serving the applicant may not be given weight in the award of applications.
     (4) The account must be funded by credits calculated in the manner established in this section. Prior to July 1, 2013, the commission must estimate how much total funding will be available for the green jobs tax credit account over the ten-year period beginning July 1, 2013, and ending June 30, 2023. The total funding available must be determined, in consultation with the department of revenue, by subtracting: The amount of money that will be spent by the light and power businesses in making ten years of phase I and phase II incentive payments, pursuant to RCW 82.16.120 and section 4 of this act, from one-half percent of the sum of all the taxable power sales due under RCW 82.16.020(1)(b) of the light and power businesses that participated in the phase I and phase II investment cost recovery incentive programs set forth in RCW 82.16.120 and section 4 of this act.
     (5) The commission must allocate the entire amount determined in subsection (4) of this section, in equal increments each year, over the course of ten years, using the competitive bidding process described in subsection (3) of this section. If a change in circumstance results in a change in the estimated total funding available, the commission must prorate the amount of funding available for each year remaining in the program.
     (6) No general fund resources may be expended to implement this section.

Sec. 6   RCW 82.16.130 and 2010 c 202 s 3 are each amended to read as follows:
     (1) A light and power business ((shall be)) is allowed a credit against taxes due under this chapter in an amount equal to the phase I investment cost recovery incentive payments made in any fiscal year under RCW 82.16.120. The credit ((shall)) must be taken in a form and manner as required by the department. The ability to earn phase I tax credits under this section expires June 30, 2020. Credits may not be claimed after June 30, 2021.
     (2) After June 30, 2013, a light and power business is also allowed a credit against taxes due under this chapter in an amount equal to phase II investment cost recovery incentive payments made in any fiscal year under section 4 of this act. The ability to earn phase II tax credits under this section expires June 30, 2023. Credits may not be claimed after June 30, 2024.
     (a) The total amount of phase II investment cost recovery incentive payments for which a light and power business may receive credit during the course of the phase II program is equal to twice the total amount of credits claimed by that business pursuant to the phase I program for incentive payments made between July 1, 2005, and June 30, 2013.
     (b) The amount of phase II investment cost recovery incentive payments for which a light and power business may receive credit each year is one-tenth of the amount determined in (a) of this subsection.
     (c) The phase II credit must be taken in a form and manner prescribed by the commission.
     (3) No entity may claim double credit for the same electricity generation by seeking or retaining payment or credit pursuant to both RCW 82.16.120 and section 4 of this act.
     (4) The credit under this section for the fiscal year may not exceed one-half percent of the businesses' taxable power sales due under RCW 82.16.020(1)(b) or one hundred thousand dollars, whichever is greater. ((Incentive payments to participants in a utility-owned community solar project as defined in RCW 82.16.110(2)(a)(ii) may only account for up to twenty-five percent of the total allowable credit. Incentive payments to participants in a company-owned community solar project as defined in RCW 82.16.110(2)(a)(iii) may only account for up to five percent of the total allowable credit.)) The credit may not exceed the tax that would otherwise be due under this chapter. Refunds ((shall)) may not be granted in the place of credits. Expenditures not used to earn a credit in one fiscal year may not be used to earn a credit in subsequent years.
     (((2))) (5) For any business that has claimed credit for amounts that exceed the correct amount of the incentive payable under RCW 82.16.120, the amount of tax against which credit was claimed for the excess payments ((shall be)) are immediately due and payable. The department ((shall)) must assess interest but not penalties on the taxes against which the credit was claimed. Interest ((shall be)) is assessed at the rate provided for delinquent excise taxes under chapter 82.32 RCW, retroactively to the date the credit was claimed, and ((shall)) accrues until the taxes against which the credit was claimed are repaid.
     (((3) The right to earn tax credits under this section expires June 30, 2020. Credits may not be claimed after June 30, 2021)) (6) On July 1, 2013, unused credits that would have been available to a light and power business pursuant to the phase I investment cost recovery incentive program established in RCW 82.16.120, beginning with July 1, 2005, and ending June 30, 2013, must be rolled over into the green jobs tax credit account as set forth in section 5 of this act.

NEW SECTION.  Sec. 7   A new section is added to chapter 82.16 RCW to read as follows:
     (1) The legislature finds that accountability and the effectiveness of attempts to foster job creation and retention are important aspects of setting tax policy. In order to make policy choices regarding the best use of limited state resources, the legislature needs to know how the incentives are used, and the degree to which they meet the legislature's intent.
     (2) The "national solar jobs census 2011" produced by the solar foundation states that there were 2,301.37 solar-related jobs in Washington in 2011, and ranks Washington twelfth of the fifty states for solar-related employment. The "national solar jobs census 2011" also states that Washington has 3.42 solar-related jobs per ten thousand residents, and ranks Washington tenth of the fifty states for per capita solar-related employment.
     (3) The outcomes intended by the legislature to be reached by 2021 for the tax credits awarded under this chapter are as follows:
     (a) As measured by the "national solar jobs census" or other equivalent study of solar-related employment:
     (i) An increase in the total number and per capita rate of solar-related jobs in Washington; and
     (ii) Achievement of a top ten ranking for solar-related employment and a top nine ranking for per capita solar-related employment;
     (b) A one hundred percent increase in the utilization of the tax credits awarded under this chapter, from the 3,119 installed solar systems in 2012 to 6,238 installed solar systems;     
     (c) A one hundred percent increase in the amount of installed solar system megawatts, from 1.6093 megawatts to 3.22 megawatts; and
     (d) Increases in renewable-related employment and utilization of the other renewable generating resources covered in this act, from a baseline, to be determined by the commission.
     (4) The commission, in consultation with the Washington State University energy program, must measure the amount of progress towards achieving the outcomes described in subsection (3) of this section. Subject to data availability, the measures must include, but are not limited to:
     (a) The total number and per capita rate of solar-related jobs in Washington;
     (b) Washington's national ranking for solar-related employment and per capita solar-related employment;
     (c) The number of installed solar systems;
     (d) The amount of installed solar system electricity generation capacity, as measured in megawatts;
     (e) The levels of renewable-related employment and utilization of the other renewable generating resources covered in this act as determined by the commission;     
     (f) The average efficiency rate of the conversion of natural energy into electricity;
     (g) The average price per kilowatt-hour generated; and
     (h) The degree to which the state investment leverages nonstate funds as measured by:
     (i) The total amount of tax credits awarded in Washington and within each county; and
     (ii) The total amount of nonstate funds leveraged in Washington and within each county.
     (5) All recipients of tax credits awarded under this chapter must provide the commission with any data requested for reporting purposes. Failure to comply may result in the loss of a tax credit award in the following year.
     (6) By December 31st each year, beginning in 2014, and in compliance with RCW 43.01.036, the commission must submit a report to the legislature that details the progress achieved in reaching the intended outcomes specified in this section.