BILL REQ. #:  H-4124.1 

Read first time 01/20/2004.   Referred to Committee on Technology, Telecommunications & Energy.

     AN ACT Relating to providing incentives to support renewable energy; adding a new chapter to Title 80 RCW; providing an effective date; and providing an expiration date.

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

NEW SECTION.  Sec. 1   The legislature finds that the use of renewable energy resources generated from local sources such as solar and wind power benefit our state by reducing the load on the state's electric energy grid, by providing nonpolluting sources of electricity generation, and by the creation of jobs for local industries that develop and sell renewable energy products and technologies.
     The legislature finds that Washington state has become a national and international leader in the technologies related to the solar electric markets. The state can support these industries by providing incentives for the purchase of locally made renewable energy products. Locally made renewable technologies benefit and protect the state's environment. The legislature also finds that the state's economy can be enhanced through the creation of incentives to develop additional renewable energy industries in the state.
     The legislature intends to provide incentives for the greater use of locally created renewable energy technologies, support and retain existing local industries, and create new opportunities for renewable energy industries to develop in Washington state.

NEW SECTION.  Sec. 2   The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
     (1) "Customer-generated electricity" means the electricity that is generated from a renewable energy system located on an individual's, businesses', or local government's real property and is measured by a utility-grade meter. A system located on a leasehold interest does not qualify under this definition. "Customer-generated electricity" does not include electricity generated by a light and power business or a gas distribution business.
     (2) "Gas distribution business" has the same meaning as described in RCW 82.16.010.
     (3) "Utility-grade meter" means an electric meter that meets the accuracy and quality standards set by the climate and rural energy development center at Washington State University.
     (4) "Light and power business" has the same meaning as described in RCW 82.16.010.
     (5) "Photovoltaic cell" means a device that converts light directly into electricity without moving parts.
     (6) "Renewable energy system" means a solar energy system or a wind generator used for producing electricity.
     (7) "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.
     (8) "Solar inverter" means the device used to convert direct current to alternating current in a photovoltaic cell system.
     (9) "Solar module" means the smallest nondivisible self-contained physical structure housing interconnected photovoltaic cells and providing a single direct current electrical output.

NEW SECTION.  Sec. 3   (1) The renewable energy incentive account is created in the custody of the state treasurer.
     (2) Until June 30, 2013, one and three-quarters percent of the money collected under RCW 82.16.020(1), on light and power businesses and gas distribution businesses, shall be deposited into the account created in subsection (1) of this section.
     (3) Only the director of the department of revenue or the director's designee may authorize expenditures from the account.
     (4) The account is subject to allotment procedures under chapter 43.88 RCW, but an appropriation is not required for expenditures.
     (5) Expenditures from the account may not exceed the balance in the account.

NEW SECTION.  Sec. 4   (1) Any individual, business, or local governmental entity, not in the light and power business or in the gas distribution business, may apply to the department of revenue, on an annual basis, for an investment cost recovery incentive for each kilowatt-hour from a customer-generated electricity renewable energy system installed on its property. To qualify for the incentive the individual, business, or local governmental entity shall: (a) Install the renewable energy system using a licensed and bonded contractor employing certified electricians in accordance with chapter 19.28 RCW unless exempt under RCW 19.28.261; (b) install the renewable energy system according to the National Electrical Code; and (c) obtain an electrical permit and inspection from the electrical code authority having jurisdiction for the construction and operation of the renewable energy system.
     (2) The application for the incentive shall be on a form prepared by the department of revenue. The applicant shall submit a certification, in a form approved by the department of revenue, from any in-state manufacturer of any inverter, solar module, or wind generator used by the applicant, verifying the applicant's use of in-state qualifying equipment. In-state manufacture of solar inverters, solar modules, and wind generators shall be authenticated by the climate and rural energy development center at Washington State University. This shall be done each year in which this legislation is in effect. The application shall include a statement verifying electrical production issued by the climate and rural energy development center at Washington State University. The application shall include verification of the requirements of subsection (1)(a), (b), and (c) of this section.
     (3) The investment cost recovery incentive shall be paid at the following rate unless requests exceed the amount contained in the renewable energy incentive fund:
     (a) Up to forty-eight cents per kilowatt-hour for systems with solar inverters and solar modules manufactured in Washington state;
     (b) Up to twenty-five cents per kilowatt-hour for systems using wind generators manufactured in Washington state;
     (c) Up to thirty-seven cents per kilowatt-hour for systems that use a solar inverter or solar module manufactured in Washington state; or
     (d) Up to twenty-five cents per kilowatt-hour for systems using solar or wind equipment manufactured outside of Washington state.
     (4) No individual, household, business, or local governmental entity is eligible for an incentive payment that exceeds four thousand five hundred dollars per year.
     (5) If requests for the investment cost recovery incentive exceed the amount of funds available in the renewable energy incentive account, the incentive amounts will be reduced proportionately.
     (6) The climate and rural energy development center at Washington State University energy program shall be reimbursed by the department of revenue five percent of annual funds allocated to the fund, to apply toward the administrative and educational expenses related to this program. The center will establish guidelines and standards for technologies that are identified as Washington manufactured and therefore most beneficial to the state's environment.
     (7) The department of revenue shall retain one percent of each incentive payment to apply toward the administrative expenses related to this program.

NEW SECTION.  Sec. 5   This act takes effect July 1, 2004.

NEW SECTION.  Sec. 6   This chapter expires July 1, 2014.

NEW SECTION.  Sec. 7   Sections 1 through 6 of this act constitute a new chapter in Title 80 RCW.