READ FIRST TIME 03/01/13.   

     AN ACT Relating to creating clean energy jobs in Washington state through renewable energy incentives; amending RCW 82.16.120 and 82.16.130; adding new sections to chapter 82.16 RCW; adding a new section to chapter 80.28 RCW; creating a new section; providing an effective date; providing an expiration date; and declaring an emergency.

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

NEW SECTION.  Sec. 1   The legislature makes the following findings:
     (1) In order to mitigate the negative consequences of greenhouse gas and particulate air emissions, every state and nation in the world must do its part to develop clean energy technology.
     (2) The sooner that economies of scale are available for the manufacture and marketing of renewable energy technologies, the sooner these technologies will become cost-competitive or even less expensive than traditional, polluting sources of energy.
     (3) The clean technology sector of the economy is one that is growing rapidly, even in a time when other sectors have been stagnant or in a recession.
     (4) In enacting incentives for renewable energy systems, the legislature intends to attract to Washington a vibrant clean technology sector.
     (5) The tax incentives created in this act can be an important economic development tool, increasing high-wage employment both east and west of the Cascade mountains.
     (6) It is the intent of the legislature, in modifying the existing renewable energy investment cost recovery incentive program, to improve utilization of the incentive by state residents and businesses, streamline program administration, and incubate the development of clean energy technology.

NEW SECTION.  Sec. 2   A new section is added to chapter 82.16 RCW to read as follows:
     (1) The legislature finds that 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 tax incentives are used, and the degree to which incentive programs meet the legislature's intent.
     (2) The legislature intends to achieve the following performance milestones as a result of the incentives awarded under this act:
     (a) Increased utilization of the available tax credits, as evidenced by:
     (i) A one hundred percent increase in the number of solar energy systems installed and receiving the incentive, from the 2012 baseline; and
     (ii) A one hundred percent increase in the total generating capacity of installed systems, from the 2012 baseline;
     (b) A decrease over time in the levelized cost of the systems receiving the tax preferences; and
     (c) Growth of solar-related employment, as evidenced by:
     (i) An increase in the total number and per capita rate of solar-related jobs in Washington;
     (ii) Achievement of a top ten national ranking for solar-related employment and a top nine ranking for per capita solar-related employment;
     (d) An increase in the utilization of, and employment related to, nonsolar renewable energy systems eligible to receive the incentives created in this act; and
     (e) Leveraging of nonstate funds, as measured by a report of the total dollar value of tax credits awarded within each county and zip code, and the total amount of nonstate funds leveraged within each county and zip code.
     (3)(a) The department must collect, through its application and certification process, data from persons receiving the tax preferences created in this act as necessary to report on progress toward achieving the performance milestones listed in subsection (1) of this section.
     (b) In compliance with RCW 43.01.036, the department must submit an annual report to the legislature that details the progress achieved in reaching the outcome specified in subsection (1)(a)(i) of this section.
     (4) All recipients of tax credits or incentive payments awarded under this chapter must provide any data requested for reporting purposes. Failure to comply may result in the loss of a tax credit award or incentive payment in the following year.
     (5) As part of its 2019 tax preference reviews conducted under chapter 43.136 RCW, the joint legislative audit and review committee must assess the performance of the incentives created in this act, with reference to all of the performance milestones established in this section.

Sec. 3   RCW 82.16.120 and 2011 c 179 s 3 are each amended to read as follows:
     (1)(((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, for an investment cost recovery incentive for each kilowatt-hour from a customer-generated electricity renewable energy system)) Beginning July 1, 2013, any person, as defined in RCW 82.04.030, may apply to receive a voucher from an agency designated by the governor entitling the person to receive annual incentive payments from the light and power business serving the situs of a renewable energy system for a term of ten years. Throughout this act, "agency designated by the governor" means any unit of state government that the governor designates to administer the program created in this chapter. Eligibility to receive the voucher is limited as follows:
     (a) The person applying to receive the voucher must be:
     (i) The meter holder, meaning the party responsible to the light and power business for paying for electricity transmitted to the situs of an eligible renewable energy system;
     (ii) The owner of the renewable energy system; and
     (iii) Not a person who is a light and power business.
     (b) In the case of a community solar project as defined in RCW 82.16.110(2)(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)(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))) (d) In the case of a customer-generated renewable energy system for which a person has already received payments prior to July 1, 2013, under RCW 82.16.120, a person may apply to receive a voucher as provided in this act entitling the person to receive incentive payments until June 30, 2023.
     (2) The award of a voucher creates a contractually enforceable promise on behalf of the state to authorize the light and power business to receive a credit against the taxes due under this chapter for an amount equal to the annual incentive payments made under this section in any fiscal year. A light and power business that chooses to participate in the voucher program created in this section may cease to accept vouchers for new systems at any time, but must continue to make payments pursuant to any existing voucher for its entire term, unless a court has declared the incentives provided under this section to be illegal.
     (3) Eligibility to receive the incentive payments provided in subsection (1) of this section is limited as follows:
     (a) The person applying to receive the voucher must be the meter holder, meaning the party responsible to the light and power business for paying for electricity transmitted to the situs of an eligible renewable energy system. The meter holder need not occupy the real property upon which the system is installed; and     
     (b) An owner of the renewable energy system.
     (4) When the meter holder is a residential retail electric customer, the system must have an electrical generating capacity of not more than five kilowatts, and when the meter holder is not a residential retail electric customer, the system must have an electrical generating capacity of not more than one hundred kilowatts.
     (5)(a) Before submitting for the first time the application for the incentive allowed under ((subsection (4) 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,)) agency designated by the governor 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)(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)(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" or is generated by a system that meets the eligibility requirements set forth in subsection (3) of this section, 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;
     (vi) The annual electricity consumption at the meter in the previous calendar year, or an engineering estimate of the projected annual consumption, if no record of annual consumption at the meter is available or if electricity consumption at the meter has substantially changed; and
     (vii) A projection of the annual electricity production of the system in kilowatt-hours.
     (b) Within thirty days of receipt of the certification the ((department of revenue)) agency designated by the governor 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.)) The agency designated by the governor must either issue the voucher or inform the applicant of the reason that the application is denied. System certifications, applications, vouchers, and the information contained therein are subject to disclosure under RCW 82.32.330(3)(l).
     (((3))) (c) The agency designated by the governor is authorized to assess an application fee to recover its costs of administering the program established in this section.
     (6)(a) The agency designated by the governor must also transmit the voucher electronically as provided in RCW 82.32.135 to the light and power business serving the situs of the system.
     (b) The voucher must state the first and last day of the ten-year term, or other term in the case of persons receiving a voucher as provided in subsection (1)(d) of this section, for which the applicant has qualified to receive production incentive payments from the light and power business.
     (c) The light and power business, upon receiving the voucher, must make incentive payments for each kilowatt-hour of electricity generated.
     (d) If, during the ten-year term of the voucher, there is a change in the meter holder and a new party becomes financially responsible to the light and power business, the voucher is transferrable to the new meter holder, provided that the new meter holder is also a person eligible to receive payments under this section.
     (7)(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)), the agency designated by the governor must receive a report of the amount of kilowatt-hours generated in the immediately preceding fiscal year by any system for which a person is receiving incentive payments pursuant to this section. The report may be submitted in one of the following ways:
     (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.)) The light and power business serving the situs of the system may report the amount of kilowatt-hours generated by the system over the course of the year, as determined by reading a production meter or any other meter that the utility determines to be ninety-eight percent accurate; or
     (ii) The person receiving incentive payments may submit a statement in the form of a sworn affidavit reporting the amount of kilowatt-hours generated by the system over the course of the year.
     (b) Within sixty days of receipt of the ((incentive certification)) report required by subsection (7) of this section, the agency designated by the governor must notify 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)(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))) (8) 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)(a) No individual, household, business, or local governmental entity is eligible for incentives provided under subsection (4) of this section for more than five thousand dollars per year.)) (9) On or after July 1, 2018, a new base rate and multipliers may go into effect. New rates and multipliers adopted under the authority of this subsection will be applicable to any vouchers awarded after July 1, 2018. The rates must be adjusted to reflect decreases in the capital costs of purchasing and installing a renewable energy system, changes in the levelized costs of such systems, or other factors that the agency deems relevant to fulfilling the purpose of incentivizing job growth and the environmental and economic benefits of renewable energy in the state.
     (10)(a) No person is eligible for incentives under this section for electricity generated in excess of the net kilowatt-hours consumed annually at the metered location. No person is eligible for incentives provided under this section for more than twenty-five thousand dollars per year per eligible renewable energy system.
     (b) Except as provided in (c) through (((e))) (d) of this subsection (((5))) (10), 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)(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))) (11) If, at any time before July 1, 2018, requests for the investment cost recovery incentive exceed fifty percent of the amount of funds available for credit to the participating light and power business, the ((incentive payments must be reduced proportionately.
     (7) 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)) agency designated by the governor must notify the governor and the legislature and must adjust base rates and multipliers to a level expected to allow all eligible systems to continue to apply for and receive incentives. New rates and multipliers adopted under the authority of this subsection (11) will be applicable to any vouchers awarded after the new rates and multipliers are adopted.
     (((8))) (12) 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))) (13) No incentive may be paid under this section for kilowatt-hours generated before July 1, 2005((, or after June 30, 2020)). No new vouchers may be issued after June 30, 2023.

Sec. 4   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 investment cost recovery incentive payments made in any fiscal year under RCW 82.16.120. The credit shall be taken in a form and manner as required by the department. ((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.))
     (2) 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.
     (3) The total credit claimed under this section 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))) (4) For any light and power 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)) is 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.)) (5) For incentive payments made pursuant to RCW 82.16.120, the authority of the agency designated by the governor to issue a voucher expires June 30, 2023.
     (6) The total credits available under this section is the aggregate of 0.5% of each participating light and power businesses' annual taxable power sales in the immediately preceding calendar year. Credits are available on a first-come, first-served basis.

NEW SECTION.  Sec. 5   A new section is added to chapter 82.16 RCW to read as follows:
     (1) The legislature finds that allowing utilities to finance and own renewable energy systems may help achieve the objectives of increasing the number of renewable energy systems in the state and incubating the development of the state's clean energy technology industry. Third-party ownership is also a tool to increase access to renewable energy systems for those residents and businesses who cannot leverage sufficient capital to pay the full cost of a renewable energy system upfront. The legislature intends to make a renewable energy investment cost recovery incentive tax credit available to renewable energy systems owned and financed by utilities.
     (2) A qualifying utility, as defined in RCW 19.285.030(18), may claim a credit under this section for electricity generated by a solar energy system that has a generating capacity of not more than one hundred kilowatts, is installed on the premises of a residential or commercial retail electric customer of the qualifying utility in Washington, and is owned by the qualifying utility.
     (3) The credit allowed for solar energy systems owned by a qualifying utility may not exceed 0.5% of the qualifying utility's taxable power sales due under RCW 82.16.020(1)(b), or one hundred thousand dollars, whichever is greater.
     (4) The credit that may be claimed by a qualifying utility for power generated by a solar energy system is equal to the amount of incentive payment a community solar project with the same power generation, consumption, and system components would have been eligible to receive under RCW 82.16.120.
     (5) The environmental attributes of the solar energy system belong to the qualifying utility.
     (6) The total credit claimed under this section and RCW 82.16.130 may not exceed the tax that would otherwise be due under this chapter. Refunds 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.
     (7) For any qualifying utility 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 is immediately due and payable. The department must assess interest but not penalties on the taxes against which the credit was claimed. Interest is assessed at the rate provided for delinquent excise taxes under chapter 82.32 RCW retroactively to the date the credit was claimed and accrues until the taxes against which the credit was claimed are repaid.
     (8) The legislature intends to achieve the following performance milestones as a result of the tax preference created in this section:
     (a) Increased utilization of available tax credits at a growth rate of five percent each year for the first five years of the program; and
     (b) Improved ability of consumers, regardless of their ability to pay upfront for the full capital costs of a renewable energy system, to install renewable energy systems on their real property. This milestone must be tracked by requiring those applying to receive incentive payments for a system owned or financed by a third party to indicate in their application whether they would have had the financial ability to fully fund the upfront installation costs for a system if systems leased from third-party owners had not been eligible to receive the incentive.
     (9)(a) In the calendar year preceding the expiration of this section, the joint legislative audit and review committee must report to the legislature on the effectiveness of the program in achieving the objectives described in subsection (8) of this section.
     (b) Upon request of the joint legislative audit and review committee, the department of revenue and other agencies must cooperate by providing any data or information requested.
     (10)(a) The qualifying utility must provide the customer on whose premises a solar energy system is being installed a contract that includes, but is not limited to, the following information:
     (i) A guarantee of the minimum annual kilowatt-hours that the system will generate for the entire term of the contract;
     (ii) In the case of a lease, a clear payment schedule with a total amount, inclusive of all fees, costs, and other charges, listed for each month and for each year of the entire term of the lease agreement;
     (iii) An acknowledgment that the utility is responsible for system installation, repairs, and monitoring for the duration of the agreement;
     (iv) Protections against damage to the customer's property caused by the system, its installation, and removal, including a clear statement of whose responsibility it is to pay any costs associated with restoring the customer's property to its original condition after removal of the system at the end of the lease term; and
     (v) A disclosure of the terms and conditions governing when the property is sold or transferred.
     (b) A qualifying utility must provide the customer a separate document with an easy to read, nontechnical summary of the provisions required under (a) of this subsection.
     (c) The qualifying utility must compile and make available to the joint legislative audit and review committee a report of the average price per kilowatt-hour of electricity generated by the systems authorized in this section, as compared to the average price per kilowatt-hour of electricity generated by systems that received or are receiving the incentive under RCW 82.16.120.
     (11) After December 31, 2015, if in compliance with other applicable law or rule, the agency designated by the governor may authorize renewable energy systems owned by third parties other than utilities to qualify for the incentives created under RCW 82.16.120. Nonutility third-party owners of renewable energy systems may only be authorized to receive the incentives if, in the agency's determination, based on objective criteria, such ownership is consistent with the legislature's objectives as established in section 2 of this act and subsection (1) of this section. The agency, in making its determination, must hold meetings with interested parties, and provide notice and an opportunity for public comment.

NEW SECTION.  Sec. 6   A new section is added to chapter 80.28 RCW to read as follows:
     (1)(a) Upon request by an electrical company, the commission may approve a tariff allowing the company to recover its costs from acquiring, installing, operating, and maintaining cost-effective distributed solar energy systems at the premises of retail electric customers of the company.
     (b) The cost basis for a distributed solar energy system must include, but may not be limited to:
     (i) A fair return on common equity equal to the return that the commission has authorized for the company's other capital assets;
     (ii) The cost of debt incurred for investments made in the acquisition, installation, operation, and maintenance of distributed solar energy systems; and
     (iii) Any reasonable incentive the company may offer to a retail electric customer to secure the right to place a distributed solar energy system on their premises.
     (c) Costs incurred by the company to acquire, install, operate, and maintain a distributed solar energy system must be offset by:
     (i) The value of an investment cost recovery incentive payable to the company under sections 5 and 6 of this act;
     (ii) The estimated value of renewable energy credits produced by distributed solar energy systems owned by the company; and
     (iii) The value of any other state and federal tax credits that may accrue to the company from the production of energy from a distributed solar energy system.
     (d) If the company determines that a customer or class of customers should contribute a reasonable amount to the electrical utility's cost of acquiring, installing, operating, and maintaining a distributed solar energy system in order for the system to be cost-effective, it may specify the amount of the contribution in its tariff. The commission may approve or deny the company's request to include a customer contribution in the tariff, or revise the contribution requirement to an amount that will not increase financial risk to the company's shareholders or other customers. The commission may only deny the request for a customer contribution upon a finding that the tariff is fair, just, reasonable, and sufficient without the customer contribution requirement.
     (e)(i) Once the company has recovered its costs under the tariff, the distributed solar energy system is no longer necessary and useful to the company pursuant to RCW 80.12.020. The tariff must specify the terms and conditions, including guidelines for establishing a fair market value, under which a customer may purchase the distributed solar energy system located at its premises after the company has recovered its costs under the tariff. Once the company has recovered its costs under the tariff, it may convey ownership of a distributed solar energy system without cost to a retail electric customer who has made a contribution under (d) of this subsection.
     (ii) Any payments received by a company from the sale of distributed solar energy systems must be deposited in a segregated account to be used by the company to supplement any other measures it may use under (c) of this subsection to offset costs incurred by the company to acquire, install, operate, and maintain a distributed solar energy system.
     (2) A distributed solar energy system that has been installed pursuant to this section is not eligible for net metering under chapter 80.60 RCW while the system is owned by the company.
     (3) For the purposes of this section:
     (a) "Cost-effective" means, at the time a distributed solar energy system is placed in the rate base, the distributed solar energy system is reasonably expected to generate energy at a total incremental system cost, per unit of energy delivered to end use, that is less than, or equal to, the comparable cost from the lowest reasonable cost eligible renewable resource, as identified in the company's last completed integrated resource plan under chapter 19.280 RCW, considering:
     (i) The value of an investment cost recovery incentive payable to the company under RCW 82.16.120;
     (ii) The estimated value of renewable energy credits produced by distributed solar energy systems owned by the company;
     (iii) The value of any other state and federal tax credits that may accrue to the company from the production of energy from a distributed solar energy system; and
     (iv) The financial contribution that may be required from a customer pursuant to subsection (1)(d) of this section.
     (b) "Distributed solar energy system" means any device or combination of devices or elements that relies upon direct sunlight as an energy source for use in the generation of electricity and has an electrical generating capacity of not more than five kilowatts, when the meter holder is a residential retail electric customer, and not more than one hundred kilowatts, when the meter holder is a commercial retail electric customer.
     (c) "Eligible renewable resource" has the same meaning as defined under RCW 19.285.030.
     (4) This section expires December 31, 2020.

NEW SECTION.  Sec. 7   If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.

NEW SECTION.  Sec. 8   This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect July 1, 2013.