S-3604.5

SENATE BILL 6016

BySenators Shewmake, Dhingra, Nguyen, Nobles, Saldaña, and C. Wilson

AN ACT Relating to a green energy community fund to support school districts and nonprofit organizations that service the communities where renewable energy projects are located; amending RCW 28A.325.030; adding a new chapter to Title 82 RCW; and providing an expiration date.

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

(1) "Applicant" means a person applying for a tax credit under this chapter.

(2) "Contribution" means cash contributions by a public utility.

(3) "Department" means the department of revenue.

(4) "Green energy community account" means the Washington green energy community account created in section 3 of this act.

(5) "Person" has the meaning given in RCW 82.04.030.

(6) "Public utility" means a light and power business as defined in RCW 82.16.010 with a renewable energy project located within the boundaries of a school district.

(7) "Renewable energy project" means a facility constructed after the effective date of this section and used by a public utility to generate electricity derived either from wind power or solar power or to store electrical energy.

(2) On a quarterly basis, the state treasurer must distribute moneys deposited into the account in the prior quarter to each school district and/or nonprofit organization designated as a recipient of a contribution. The department must notify the state treasurer of the amount and either school districts or nonprofit organizations, or both, to receive distributions under this section.

(2) Applications must be submitted between January 1st and July 1st for contributions to be made by the public utility during the calendar year; however, the department may extend the application deadline if a public utility does not make a contribution by the date specified in section 5 of this act and forfeits all tax credits for the approved application.

(2)(a) A public utility that does not make a contribution as required in subsection (1) of this section forfeits all credits for the approved contribution.

(b) The department must make credits forfeited as provided in (a) of this subsection available to new applicants.

(3) A public utility must send contributions to the department for deposit into the Washington green energy community account. On a quarterly basis, the department must notify the state treasurer regarding the distribution of contributions as required under section 3 of this act. The recipient of a contribution from the Washington green energy community account must be a school district with a renewable energy project located within the boundaries of the school district or a nonprofit organization that services the community where the renewable energy project is located. The public utility shall select the recipient of the contribution, which must be specified on the application as provided in section 4 of this act.

(2) The credit allowed under this section is limited to an amount equal to 75 percent of the approved contribution made by a public utility to the Washington green energy community account.

(3) The department must keep a running total of all credits approved under this chapter for each calendar year. The department may not approve any credits under this section that would cause the total amount of approved credits statewide to exceed $5,000,000 in any calendar year.

(4) The total credits allowed under this chapter for a public utility may not exceed $250,000 in a calendar year.

(5) The credit may be claimed against tax due under chapters 82.04 and 82.16 RCW from a renewable energy project only in the calendar year in which the credit was approved by the department and the contribution was made to the Washington green energy community account or in the subsequent calendar year. No refunds may be granted for credits under this chapter. A public utility may not receive credit against taxes due under chapters 82.04 and 82.16 RCW for the same contribution.

(6) Credits may be earned for contributions made on or after January 1, 2025, and on or before December 31, 2034. Credits earned may be claimed on tax returns filed for reporting periods beginning on or after January 1, 2026, and ending on or before December 31, 2035. No credit may be claimed on tax returns filed for reporting periods beginning on or after January 1, 2036.

Sec. 13. RCW 28A.325.030 and 2000 c 157 s 2 are each amended to read as follows:

(1)(a) There is hereby created a fund on deposit with each county treasurer for each school district of the county having an associated student body as defined in RCW 28A.325.020. Such fund shall be known as the associated student body program fund. Rules adopted by the superintendent of public instruction under RCW 28A.325.020 shall require separate accounting for each associated student body's transactions in the school district's associated student body program fund.

(b) All moneys generated through the programs and activities of any associated student body shall be deposited in the associated student body program fund. Such funds may be invested for the sole benefit of the associated student body program fund in items enumerated in RCW 28A.320.320 and the county treasurer may assess a fee as provided therein. Disbursements from such fund shall be under the control and supervision, and with the approval, of the board of directors of the school district, and shall be by warrant as provided in chapter 28A.350 RCW: PROVIDED, That in no case shall such warrants be issued in an amount greater than the funds on deposit with the county treasurer in the associated student body program fund. To facilitate the payment of obligations, an imprest bank account or accounts may be created and replenished from the associated student body program fund.

(c) The associated student body program fund shall be budgeted by the associated student body, subject to approval by the board of directors of the school district. All disbursements from the associated student body program fund or any imprest bank account established thereunder shall have the prior approval of the appropriate governing body representing the associated student body. Notwithstanding the provisions of RCW 43.09.210, it shall not be mandatory that expenditures from the district's general fund in support of associated student body programs and activities be reimbursed by payments from the associated student body program fund.

(2) Subject to applicable school board policies, student groups may conduct fund-raising activities, including but not limited to soliciting donations, in their private capacities for the purpose of generating nonassociated student body fund moneys. The school board policy shall include provisions to ensure appropriate accountability for these funds. Nonassociated student body program fund moneys generated and received by students for private purposes to use for scholarship, student exchange, and/or charitable purposes shall be held in trust in one or more separate accounts within an associated student body program fund and be disbursed for such purposes as the student group conducting the fund-raising activity shall determine: PROVIDED, That the school district shall either withhold an amount from such moneys as will pay the district for its direct costs in providing the service or otherwise be compensated for its cost for such service. Nonassociated student body program fund moneys shall not be deemed public moneys under section 7, Article VIII of the state Constitution. Notice shall be given identifying the intended use of the proceeds. The notice shall also state that the proceeds are nonassociated student body funds to be held in trust by the school district exclusively for the intended purpose. "Charitable purpose" under this section does not include any activity related to assisting a campaign for election of a person to an office or for the promotion or opposition to a ballot proposition.

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