Strike everything after the enacting clause and insert the following:

NEW SECTION.  Sec. 101. A new section is added to chapter 82.96 RCW to read as follows:

The definitions in this section apply throughout this chapter unless the context clearly requires otherwise:

(1) "Personal property" has the same meaning as in RCW 84.04.080.

(2) "Renewable energy" means energy produced by a solar or wind facility with a nameplate capacity sufficient to generate at least 50 megawatts of alternating current power.

(3) "Renewable energy generating system" means a set of devices whose primary purpose is to produce electricity by means of any combination of collecting, transferring, or converting renewable energy that becomes operational on or after January 1, 2026.

(4) "Renewable energy storage capacity" means the battery storage capacity per megawatt hour.

(5) "Renewable energy storage system" means commercially available technology that is capable of retaining electricity, storing the energy for a period of time, and delivering the electricity after storage by chemical, thermal, mechanical, or other means that has 50 MWH of storage capacity and becomes operational on or after January 1, 2026.

(6) "Repowered" means the replacement of 20 MW or more of solar panels or wind turbines in a renewable energy facility or 20 MW of the equipment in a storage system after it first became operational and the replacement occurs on or after January 1, 2026.

NEW SECTION.  Sec. 102. A new section is added to chapter 84.36 RCW to read as follows:

(1) All personal property used primarily for the generation of renewable energy in a qualified renewable energy facility that becomes operational on or after January 1, 2026, or a renewable energy facility that is repowered on or after January 1, 2026, is exempt from property taxation.

(2) All personal property used primarily for energy storage that becomes operational on or after January 1, 2026, or that is repowered on or after January 1, 2026, is exempt from property taxation.

(3)(a) Each qualified renewable energy facility in this state must annually, on or before the 15th day of March, make and file with the department an annual report as to the location and nameplate capacity, energy storage capacity, and the repowering of the personal property exempt under this section, as well as any other information required by the department.

(b) The department must provide each respective county treasurer and county assessor a copy of the report filed under (a) of this subsection.

(4) The department may adopt such rules in accordance with chapter 34.05 RCW and prescribe such forms as it deems necessary and appropriate to implement and administer this section.

(5) For the purposes of this section, the following definitions apply:

(a) "Energy storage" means commercially available technology that is capable of retaining electricity, storing the energy for a period of time, and delivering the electricity after storage by chemical, thermal, mechanical, or other means.

(b) "Personal property" has the same meaning as in RCW 84.04.080.

(c) "Qualified renewable energy facility" means an electric generating facility powered by wind or solar energy with alternating current nameplate capacity of 50 MW or more that becomes operational on or after January 1, 2026, or a renewable energy facility that is repowered on or after January 1, 2026, and is exempt under this section.

(d) "Repowered" means the replacement of 30 percent or more of solar panels or wind turbines in a qualified renewable energy facility or 30 percent of the equipment in a qualifying storage system after it first became operational.

NEW SECTION.  Sec. 103. A new section is added to chapter 82.96 RCW to read as follows:

(1)(a) Beginning January 1, 2027, a state renewable energy excise tax is imposed and collected on the privilege of using a renewable energy generating system for an electric power source in the state.

(b) Beginning January 1, 2027, a state renewable energy excise tax is imposed and collected on the privilege of using a renewable energy storage system.

(2) The taxes must be paid semiannually in two equal payments in the manner and form as prescribed by the department.

(3) The taxes imposed by this chapter are in addition to any taxes imposed upon the same persons under chapter 82.04 or 82.16 RCW.

(4) The moneys from this tax must be deposited into the local community investment account created in section 113 of this act.

NEW SECTION.  Sec. 104. A new section is added to chapter 36.29 RCW to read as follows:

(1) The legislative body of any county may impose a local renewable energy excise tax for the privilege of using a renewable energy storage system or a renewable energy generating system for an electric power source in the state. The rate of the tax is established pursuant to section 105 of this act and is in addition to any taxes imposed upon the same persons under section 103 of this act or chapter 82.04 or 82.16 RCW.

(2) The rate of the tax is established in section 105 of this act. The taxes must be paid semiannually in two equal payments in the manner and form prescribed by the county treasurer.

(3) The county treasurer shall distribute any revenues received under this section to each appropriate local taxing district in the county that reflects the pro rata share of the property tax rate in the prior tax year of the district in accordance with RCW 84.56.230, except any voter-approved excess property tax levies within a taxing district authorized after January 1, 2026.

(4) For the purposes of this section, the following definitions apply:

(a) "Personal property" has the same meaning as in RCW 84.04.080.

(b) "Renewable energy" means energy produced by a solar or wind facility with a nameplate capacity sufficient to generate at least 50 megawatts of alternating current power.

(c) "Renewable energy generating system" means a set of devices whose primary purpose is to produce electricity by means of any combination of collecting, transferring, or converting renewable energy that becomes operational on or after January 1, 2026.

(d) "Renewable energy storage capacity" means the battery storage capacity per megawatt hour.

(e) "Renewable energy storage system" means commercially available technology that is capable of retaining electricity, storing the energy for a period of time, and delivering the electricity after storage by chemical, thermal, mechanical, or other means that has 50 MWH of storage capacity and becomes operational on or after January 1, 2026.

(f) "Repowered" means the replacement of 20 MW or more of solar panels or wind turbines in a qualified renewable energy facility or 20 MW of the equipment in a qualifying storage system after it first became operational and the replacement occurs on or after January 1, 2026.

NEW SECTION.  Sec. 105. A new section is added to chapter 82.96 RCW to read as follows:

(1)(a) The rates of the state and local renewable energy excise taxes authorized in sections 103 and 104 of this act on renewable energy generating systems are as follows:

(i)(A) The state renewable energy excise tax rate is $1,125 per year per megawatt of nameplate capacity of alternating current power for a renewable energy generating system that uses solar energy to generate electricity if the system became operational on or after January 1, 2026, or was repowered on or after January 1, 2026.

(B) The local renewable energy excise tax rate is $3,375 per year per megawatt of nameplate capacity of alternating current power for a renewable energy generating system that uses solar energy to generate electricity if the system became operational on or after January 1, 2026, or was repowered on or after January 1, 2026.

(ii)(A) The state renewable excise tax rate is $1,575 per year per megawatt of nameplate capacity of alternating current power for a renewable energy generating system that uses wind energy to generate electricity if the system became operational on or after January 1, 2026, or was repowered on or after January 1, 2026.

(B) The local renewable energy excise tax rate is $4,725 per year per megawatt of nameplate capacity of alternating current power for a renewable energy generating system that uses wind energy to generate electricity if the system became operational on or after January 1, 2026, or was repowered on or after January 1, 2026.

(b) The rates of the state and local renewable energy excise taxes authorized in sections 103 and 104 of this act on renewable energy storage capacity are as follows:

(i) The state renewable energy excise tax is $375 per megawatt hour of renewable energy storage capacity.

(ii) The local renewable energy excise tax is $1,125 per megawatt hour of renewable energy storage capacity.

NEW SECTION.  Sec. 106. A new section is added to chapter 82.96 RCW to read as follows:

All of the provisions contained in chapter 82.32 RCW not inconsistent with this chapter have full force and application with respect to taxes imposed under this chapter.

NEW SECTION.  Sec. 107. A new section is added to chapter 82.96 RCW to read as follows:

The department may adopt such rules in accordance with chapter 34.05 RCW, and prescribe such forms, as it deems necessary and appropriate to implement and administer this chapter.

Sec. 108. RCW 84.55.010 and 2021 c 207 s 10 are each amended to read as follows:

(1) Except as provided in this chapter, the levy for a taxing district in any year must be set so that the regular property taxes payable in the following year do not exceed the limit factor multiplied by the amount of regular property taxes lawfully levied for such district in the highest of the three most recent years in which such taxes were levied for such district, excluding any increase due to (e) of this subsection, unless the highest levy was the statutory maximum rate amount, plus an additional dollar amount calculated by multiplying the regular property tax levy rate of that district for the preceding year by the increase in assessed value in that district resulting from:

(a) New construction;

(b) Increases in assessed value due to construction of ((wind turbine, solar,)) biomass((,)) and geothermal facilities, if such facilities generate electricity and the property is not included elsewhere under this section for purposes of providing an additional dollar amount. The property may be classified as real or personal property;

(c) Improvements to property;

(d) Any increase in the assessed value of state-assessed property; and

(e) Any increase in the assessed value of real property, as that term is defined in RCW 39.114.010, within an increment area as designated by any local government in RCW 39.114.020 provided that such increase is not included elsewhere under this section. This subsection (1)(e) does not apply to levies by the state or by port districts and public utility districts for the purpose of making required payments of principal and interest on general indebtedness.

(2) The requirements of this section do not apply to:

(a) State property taxes levied under RCW 84.52.065(1) for collection in calendar years 2019 through 2021; and

(b) State property taxes levied under RCW 84.52.065(2) for collection in calendar years 2018 through 2021.

Sec. 109. RCW 84.55.020 and 2023 c 354 s 5 and 2023 c 28 s 9 are each reenacted and amended to read as follows:

Notwithstanding the limitation set forth in RCW 84.55.010, the first levy for a taxing district created from consolidation of similar taxing districts must be set so that the regular property taxes payable in the following year do not exceed the limit factor multiplied by the sum of the amount of regular property taxes each component taxing district could have levied under RCW 84.55.092 plus the additional dollar amount calculated by multiplying the regular property tax rate of each component district for the preceding year by the increase in assessed value in each component district resulting from:

(1) New construction;

(2) Increases in assessed value due to construction of ((wind turbine, solar,)) biomass((,)) and geothermal facilities, if such facilities generate electricity and the property is not included elsewhere under this section for purposes of providing an additional dollar amount. The property may be classified as real or personal property;

(3) Improvements to property;

(4) Any increase in the assessed value of state-assessed property; and

(5) Any increase in the assessed value of real property, as defined in RCW 39.114.010, within an increment area as designated by any local government under RCW 39.114.020 if the increase is not included elsewhere under this section. This subsection (5) does not apply to levies by the state or by port districts and public utility districts for the purpose of making required payments of principal and interest on general indebtedness.

Sec. 110. RCW 84.55.030 and 2023 c 354 s 6 are each amended to read as follows:

For the first levy for a taxing district following annexation of additional property, the limitation set forth in RCW 84.55.010 must be increased by an amount equal to the aggregate assessed valuation of the newly annexed property as shown by the current completed and balanced tax rolls of the county or counties within which such property lies, multiplied by the dollar rate that would have been used by the annexing unit in the absence of such annexation, plus the additional dollar amount calculated by multiplying the regular property tax levy rate of that annexing taxing district for the preceding year by the increase in assessed value in the annexing district resulting from:

(1) New construction;

(2) Increases in assessed value due to construction of ((wind turbine, solar,)) biomass((,)) and geothermal facilities, if such facilities generate electricity and the property is not included elsewhere under this section for purposes of providing an additional dollar amount. The property may be classified as real or personal property;

(3) Improvements to property;

(4) Any increase in the assessed value of state-assessed property; and

(5) Any increase in the assessed value of real property, as defined in RCW 39.114.010, within an increment area as designated by any local government in RCW 39.114.020 if the increase is not included elsewhere under this section. This subsection does not apply to levies by the state or by port districts or public utility districts for the purpose of making required payments of principal and interest on general indebtedness.

Sec. 111. RCW 84.55.120 and 2021 c 207 s 11 are each amended to read as follows:

(1) A taxing district, other than the state, that collects regular levies must hold a public hearing on revenue sources for the district's following year's current expense budget. The hearing must include consideration of possible increases in property tax revenues and must be held prior to the time the taxing district levies the taxes or makes the request to have the taxes levied. The county legislative authority, or the taxing district's governing body if the district is a city, town, or other type of district, must hold the hearing. For purposes of this section, "current expense budget" means that budget which is primarily funded by taxes and charges and reflects the provision of ongoing services. It does not mean the capital, enterprise, or special assessment budgets of cities, towns, counties, or special purpose districts.

(2) If the taxing district is otherwise required to hold a public hearing on its proposed regular tax levy, a single public hearing may be held on this matter.

(3)(a) Except as provided in (b) of this subsection (3), no increase in property tax revenue may be authorized by a taxing district, other than the state, except by adoption of a separate ordinance or resolution, pursuant to notice, specifically authorizing the increase in terms of both dollars and percentage. The ordinance or resolution may cover a period of up to two years, but the ordinance must specifically state for each year the dollar increase and percentage change in the levy from the previous year.

(b) Exempt from the requirements of (a) of this subsection are increases in revenue resulting from the addition of:

(i) New construction;

(ii) Increases in assessed value due to construction of ((wind turbine, solar,)) biomass((,)) and geothermal facilities, if such facilities generate electricity and the property is not included elsewhere under this section for purposes of providing an additional dollar amount. The property may be classified as real or personal property;

(iii) Improvements to property;

(iv) Any increase in the value of state-assessed property; and

(v) Any increase in the assessed value of real property, as that term is defined in RCW 39.114.010, within an increment area as designated by any local government in RCW 39.114.020 provided that such increase is not included elsewhere under this section. This subsection (3)(b)(v) does not apply to levies by the state or by port districts and public utility districts for the purpose of making required payments of principal and interest on general indebtedness.

Sec. 112. RCW 82.32.330 and 2022 c 56 s 9 are each amended to read as follows:

(1) For purposes of this section:

(a) "Disclose" means to make known to any person in any manner whatever a return or tax information;

(b) "Return" means a tax or information return or claim for refund required by, or provided for or permitted under, the laws of this state which is filed with the department of revenue by, on behalf of, or with respect to a person, and any amendment or supplement thereto, including supporting schedules, attachments, or lists that are supplemental to, or part of, the return so filed;

(c) "Tax information" means (i) a taxpayer's identity, (ii) the nature, source, or amount of the taxpayer's income, payments, receipts, deductions, exemptions, credits, assets, liabilities, net worth, tax liability deficiencies, overassessments, or tax payments, whether taken from the taxpayer's books and records or any other source, (iii) whether the taxpayer's return was, is being, or will be examined or subject to other investigation or processing, (iv) a part of a written determination that is not designated as a precedent and disclosed pursuant to RCW 82.32.410, or a background file document relating to a written determination, and (v) other data received by, recorded by, prepared by, furnished to, or collected by the department of revenue with respect to the determination of the existence, or possible existence, of liability, or the amount thereof, of a person under the laws of this state for a tax, penalty, interest, fine, forfeiture, or other imposition, or offense. However, data, material, or documents that do not disclose information related to a specific or identifiable taxpayer do not constitute tax information under this section. Except as provided by RCW 82.32.410, nothing in this chapter requires any person possessing data, material, or documents made confidential and privileged by this section to delete information from such data, material, or documents so as to permit its disclosure;

(d) "State agency" means every Washington state office, department, division, bureau, board, commission, or other state agency;

(e) "Taxpayer identity" means the taxpayer's name, address, telephone number, registration number, or any combination thereof, or any other information disclosing the identity of the taxpayer; and

(f) "Department" means the department of revenue or its officer, agent, employee, or representative.

(2) Returns and tax information are confidential and privileged, and except as authorized by this section, neither the department of revenue nor any other person may disclose any return or tax information.

(3) This section does not prohibit the department of revenue from:

(a) Disclosing such return or tax information in a civil or criminal judicial proceeding or an administrative proceeding:

(i) In respect of any tax imposed under the laws of this state if the taxpayer or its officer or other person liable under this title or chapter 83.100 RCW is a party in the proceeding;

(ii) In which the taxpayer about whom such return or tax information is sought and another state agency are adverse parties in the proceeding; or

(iii) Brought by the department under RCW 18.27.040 or 19.28.071;

(b) Disclosing, subject to such requirements and conditions as the director prescribes by rules adopted pursuant to chapter 34.05 RCW, such return or tax information regarding a taxpayer to such taxpayer or to such person or persons as that taxpayer may designate in a request for, or consent to, such disclosure, or to any other person, at the taxpayer's request, to the extent necessary to comply with a request for information or assistance made by the taxpayer to such other person. However, tax information not received from the taxpayer must not be so disclosed if the director determines that such disclosure would compromise any investigation or litigation by any federal, state, or local government agency in connection with the civil or criminal liability of the taxpayer or another person, or that such disclosure would identify a confidential informant, or that such disclosure is contrary to any agreement entered into by the department that provides for the reciprocal exchange of information with other government agencies which agreement requires confidentiality with respect to such information unless such information is required to be disclosed to the taxpayer by the order of any court;

(c) Disclosing the name of a taxpayer against whom a warrant under RCW 82.32.210 has been either issued or filed and remains outstanding for a period of at least ten working days. The department is not required to disclose any information under this subsection if a taxpayer has entered a deferred payment arrangement with the department for the payment of a warrant that has not been filed and is making payments upon such deficiency that will fully satisfy the indebtedness within twelve months;

(d) Publishing statistics so classified as to prevent the identification of particular returns or reports or items thereof;

(e) Disclosing such return or tax information, for official purposes only, to the governor or attorney general, or to any state agency, or to any committee or subcommittee of the legislature dealing with matters of taxation, revenue, trade, commerce, the control of industry or the professions;

(f) Permitting the department of revenue's records to be audited and examined by the proper state officer, his or her agents and employees;

(g) Disclosing any such return or tax information to a peace officer as defined in RCW 9A.04.110 or county prosecuting attorney, for official purposes. The disclosure may be made only in response to a search warrant, subpoena, or other court order, unless the disclosure is for the purpose of criminal tax enforcement. A peace officer or county prosecuting attorney who receives the return or tax information may disclose that return or tax information only for use in the investigation and a related court proceeding, or in the court proceeding for which the return or tax information originally was sought;

(h) Disclosing any such return or tax information to the proper officer of the internal revenue service of the United States, the Canadian government or provincial governments of Canada, or to the proper officer of the tax department of any state or city or town or county, for official purposes, but only if the statutes of the United States, Canada or its provincial governments, or of such other state or city or town or county, as the case may be, grants substantially similar privileges to the proper officers of this state;

(i) Disclosing any such return or tax information to the United States department of justice, including the bureau of alcohol, tobacco, firearms and explosives, the department of defense, the immigration and customs enforcement and the customs and border protection agencies of the United States department of homeland security, the United States coast guard, the alcohol and tobacco tax and trade bureau of the United States department of treasury, and the United States department of transportation, or any authorized representative of these federal agencies, for official purposes;

(j) Publishing or otherwise disclosing the text of a written determination designated by the director as a precedent pursuant to RCW 82.32.410;

(k) Disclosing, in a manner that is not associated with other tax information, the taxpayer name, entity type, business address, mailing address, revenue tax registration numbers, reseller permit numbers and the expiration date and status of such permits, North American industry classification system or standard industrial classification code of a taxpayer, and the dates of opening and closing of business. This subsection may not be construed as giving authority to the department to give, sell, or provide access to any list of taxpayers for any commercial purpose;

(l) Disclosing such return or tax information that is also maintained by another Washington state or local governmental agency as a public record available for inspection and copying under the provisions of chapter 42.56 RCW or is maintained by a court of record and is not otherwise prohibited from disclosure;

(m) Disclosing such return or tax information to the United States department of agriculture for the limited purpose of investigating food stamp fraud by retailers;

(n) Disclosing to a financial institution, escrow company, or title company, in connection with specific real property that is the subject of a real estate transaction, current amounts due the department for a filed tax warrant, judgment, or lien against the real property;

(o) Disclosing to a person against whom the department has asserted liability as a successor under RCW 82.32.140 return or tax information pertaining to the specific business of the taxpayer to which the person has succeeded;

(p) Disclosing real estate excise tax affidavit forms filed under RCW 82.45.150 in the possession of the department, including real estate excise tax affidavit forms for transactions exempt or otherwise not subject to tax;

(q) Disclosing to local taxing jurisdictions the identity of sellers granted relief under RCW 82.32.430(5)(b)(i) and the period for which relief is granted;

(r) Disclosing such return or tax information to the court in respect to the department's application for a subpoena under RCW 82.32.117;

(s) Disclosing to a person against whom the department has asserted liability under RCW 83.100.120 return or tax information pertaining to that person's liability for tax under chapter 83.100 RCW;

(t) Disclosing such return or tax information to the streamlined sales tax governing board, member states of the streamlined sales tax governing board, or authorized representatives of such board or states, for the limited purposes of:

(i) Conducting on behalf of member states sales and use tax audits of taxpayers; or

(ii) Auditing certified service providers or certified automated systems providers;

(u) Disclosing any such return or tax information when the disclosure is specifically authorized under any other section of the Revised Code of Washington;

(v) Disclosing to an individual to whom the department has issued an assessment under RCW 82.32.145 for unpaid trust fund taxes of a defunct or insolvent entity, return or tax information of that entity pertaining to those unpaid trust fund taxes;

(w) Disclosing any such return or tax information pursuant to a federal grand jury subpoena or subpoena issued by a United States attorney, only to be used in the criminal investigation and related court proceedings, or in the court proceeding for which the return or tax information originally was sought; ((or))

(x) Disclosing any return or tax information to an individual when the return or tax information is related directly to that person's individual liability, as part of a marital community, for amounts due under a warrant issued under the authority of RCW 59.30.090 or 82.32.210; or

(y) Disclosing to local taxing officials, including county assessors or treasurers, the identity and tax information of persons subject to the renewable energy excise tax under sections 103 and 104 of this act.

(4)(a) The department may disclose return or taxpayer information to a person under investigation or during any court or administrative proceeding against a person under investigation as provided in this subsection (4). The disclosure must be in connection with the department's official duties relating to an audit, collection activity, or a civil or criminal investigation. The disclosure may occur only when the person under investigation and the person in possession of data, materials, or documents are parties to the return or tax information to be disclosed. The department may disclose return or tax information such as invoices, contracts, bills, statements, resale or exemption certificates, or checks. However, the department may not disclose general ledgers, sales or cash receipt journals, check registers, accounts receivable/payable ledgers, general journals, financial statements, expert's workpapers, income tax returns, state tax returns, tax return workpapers, or other similar data, materials, or documents.

(b) Before disclosure of any tax return or tax information under this subsection (4), the department must, through written correspondence, inform the person in possession of the data, materials, or documents to be disclosed. The correspondence must clearly identify the data, materials, or documents to be disclosed. The department may not disclose any tax return or tax information under this subsection (4) until the time period allowed in (c) of this subsection has expired or until the court has ruled on any challenge brought under (c) of this subsection.

(c) The person in possession of the data, materials, or documents to be disclosed by the department has twenty days from the receipt of the written request required under (b) of this subsection to petition the superior court of the county in which the petitioner resides for injunctive relief. The court must limit or deny the request of the department if the court determines that:

(i) The data, materials, or documents sought for disclosure are cumulative or duplicative, or are obtainable from some other source that is more convenient, less burdensome, or less expensive;

(ii) The production of the data, materials, or documents sought would be unduly burdensome or expensive, taking into account the needs of the department, the amount in controversy, limitations on the petitioner's resources, and the importance of the issues at stake; or

(iii) The data, materials, or documents sought for disclosure contain trade secret information that, if disclosed, could harm the petitioner.

(d) The department must reimburse reasonable expenses for the production of data, materials, or documents incurred by the person in possession of the data, materials, or documents to be disclosed.

(e) Requesting information under (b) of this subsection that may indicate that a taxpayer is under investigation does not constitute a disclosure of tax return or tax information under this section.

(5) Service of a subpoena issued under RCW 82.32.117 does not constitute a disclosure of return or tax information under this section. Notwithstanding anything else to the contrary in this section, a person served with a subpoena under RCW 82.32.117 may disclose the existence or content of the subpoena to that person's legal counsel.

(6) Any person acquiring knowledge of any return or tax information in the course of his or her employment with the department of revenue and any person acquiring knowledge of any return or tax information as provided under subsection (3) (e), (f), (g), (h), (i), (m), (v), and (w) of this section, who discloses any such return or tax information to another person not entitled to knowledge of such return or tax information under the provisions of this section, is guilty of a misdemeanor. If the person guilty of such violation is an officer or employee of the state, such person must forfeit such office or employment and is incapable of holding any public office or employment in this state for a period of two years thereafter.

NEW SECTION.  Sec. 113. A new section is added to chapter 82.96 RCW to read as follows:

The local community investment account is created in the state treasury. All receipts from the state renewable energy excise tax imposed by section 103 of this act must be deposited into the account. Expenditures from the account may be used for the local community investments contained in sections 202 and 203 of this act.

NEW SECTION.  Sec. 115. A new section is added to chapter 82.96 RCW to read as follows:

(1) It is the intent of the legislature that the renewable energy excise taxes paid by the renewable energy generating systems and the renewable energy storage systems are comparable to the taxes paid by these systems in other states. It is also the intent of the legislature that the amount of taxes paid by these systems in renewable energy excise taxes would be comparable to the amount of personal property taxes they would have paid to the state, counties, and local taxing districts if they had not been exempted pursuant to this act.

(2) The joint legislative audit and review committee must review the personal property tax exemptions and the renewable energy excise tax and report its findings to the legislature by January 1, 2037. This report must include:

(a) A comparison of the taxes paid pursuant to this act and to other states;

(b) A comparison of taxes paid pursuant to this act and what would have been paid pursuant to personal property taxes;

(c) An evaluation of the current rates and recommendations for any rate adjustments for new projects being built after January 1, 2037.

(3) This section expires January 1, 2038.

(2) It is not the intent of the legislature for the agreements specified in this act to replace or supplant the important and necessary agreements between project developers and local labor organizations. Although not addressed by the substance of this act, the legislature recognizes that project labor agreements, including local hire commitments, wage standards, apprenticeship utilization commitments, and similar standards, are an important part of the benefit that renewable energy development projects can bring to the communities hosting those projects.

NEW SECTION.  Sec. 202. A new section is added to chapter 43.63A RCW to read as follows:

(1) The department shall establish the renewable energy development local investment commitment matching grant program. Through the program, the department must provide matching funds, on a first-come, first-served basis, for each eligible project in an amount that increases commensurately with increases in the value of the contribution to the local investment commitment made by the project developer and the nameplate storage and generation capacity of the qualifying energy project. Each biennium, the department must establish a formula determining the size of grants awarded to applicants that considers the nameplate capacity of a qualifying energy facility, the value of the contribution to the local investment commitment made by a project developer, the total number of eligible grant applications expected to be received during the biennium, and the total amounts appropriated to the department for purposes of this program in the biennium.

(2)(a) In order for a jurisdiction to be eligible for matching funds from the program, a local investment commitment finalized after the effective date of this section must:

(i) Include the provision of funds from a qualifying energy project developer to the primary jurisdiction in which the project is located, for use by the jurisdiction or to provide benefits to the jurisdiction's residents. A primary jurisdiction receiving funds under this section may provide for the transfer or allocation of funds to other municipal corporations of the state formed to provide benefits to the jurisdiction's residents. For purposes of this section, if a project is:

(A) Located entirely within a city, the city is the primary jurisdiction;

(B) Located entirely within the unincorporated area of a county, or partially within the unincorporated area of a county and partially within a city, the county is the primary jurisdiction; and

(C) Located partially within multiple counties, each county is a primary jurisdiction and must receive benefits under a local investment commitment with the project developer in an amount proportional to the nameplate capacity located in each county;

(ii) Benefit only counties or cities, or both, that have not established standards for the development of qualifying energy projects that are more restrictive than the model ordinances published by the department under section 203 of this act; and

(iii) Include a relinquishment, by the project developer, of the property developer's right under RCW 84.40.038 to petition for a retroactive change in the assessed valuation of the property addressed in the local investment commitment, effective upon the receipt by the jurisdiction of funds under this section.

(b) Jurisdictions entering into local investment commitments finalized between January 1, 2023, and the effective date of this section are eligible for grants under this section and are not required to meet the criteria in (a) of this subsection.

(c) In order for a local investment commitment for a project that applies to and completes the county's process for development approval and files a state environmental policy act checklist pursuant to chapter 43.21C RCW after the effective date of this section to be eligible for funding under this section, a county must include in its development regulations that a qualifying energy project developer must:

(i) Initiate and document the offer to conduct early and meaningful engagement, before the submission of a checklist under chapter 43.21C RCW, related to the qualifying energy project with each federally recognized Indian tribe within whose ceded territory and usual and accustomed area the qualifying energy project is proposed to be located in a manner that recognizes the sovereignty and legal rights of the tribe;

(ii) Notify, and offer to meet with, the department of archaeology and historic preservation regarding the geographical location, detailed scope of the proposed project, preliminary application details available to federal, state, or local jurisdictions, and all publicly available materials; and

(iii) Survey the proposed project site in a manner that reflects input solicited from the department of archaeology and historic preservation and each federally recognized Indian tribe whose lands described in this section are impacted, if any such input is received by the project developer.

(3)(a) A qualifying energy project may be eligible under this section if the project has received applicable permits under the energy facility site evaluation council process established in chapter 80.50 RCW, the clean energy coordinated permit process established in RCW 43.394.020, or through permit processes overseen by the city or county.

(b) A jurisdiction receiving a grant under this section may not expend state funds in a manner that conflicts with Article VIII, section 5 or Article VIII, section 7 of the Washington state Constitution.

(4)(a) The department must establish an application process for the program.

(b) The department may expend up to five percent of the funds appropriated for the program for administrative costs.

(5) Nothing in this section limits the authority of a county or city to administratively object to or legally appeal a qualifying energy project or component thereof or to be eligible for grant funds under this section if they file such an objection or appeal.

(6) For purposes of this section, the following definitions apply:

(a)(i) "Energy storage system" means commercially available technology that is capable of retaining electricity, storing the energy for a period of time, and delivering the electricity after storage by chemical, thermal, mechanical, or other means.

(ii) "Energy storage system" does not include a solar or wind energy production facility.

(b) "Program" means the renewable energy development local investment commitment matching grant program established in this section.

(c) "Project developer" means a person that enters into a local investment commitment associated with a qualifying energy project.

(d) "Qualifying energy project" means an energy storage system, a wind or solar energy production facility, associated facilities, or any combination thereof, constructed after the effective date of this section and that is located in a county or city that has entered into a local investment commitment with the project developer.

NEW SECTION.  Sec. 203. A new section is added to chapter 43.63A RCW to read as follows:

(1)(a) The department shall provide technical assistance and ongoing liaison support to local governments, including methods and best practices for siting qualifying energy projects specified in section 202 of this act, for use by local governments.

(b) As part of this work, the department must develop and publish a model ordinance applicable to the siting of qualifying energy projects specified in section 202 of this act by July 1, 2027. The model ordinance must include, but is not limited to, standards for the decommissioning of and provision of financial assurance for wind energy facilities. The department must develop the model ordinance in consultation with qualifying energy project developers, qualifying energy project owners, counties, tribes, and other interested stakeholders.

(2) Effective six months after the department's publication of a model ordinance under subsection (1) of this section, to be eligible for the grant program in section 202 of this act, a county or city ordinance or other restriction that limits the siting of a qualifying energy project may not contain standards that are more restrictive than the applicable model ordinance published by the department under subsection (1) of this section.

(3) Nothing in this section renders qualifying energy projects ineligible for the grant program in section 202 of this act on the basis of:

(a) Being located in a jurisdiction that imposes requirements, standards, or restrictions on qualifying energy projects that are consistent with the permit requirements, guidelines, or best practices for the siting, development, or operation of qualifying energy facilities imposed by a state agency or otherwise required under state law; or

(b) Mitigation being imposed as a result of environmental review under chapter 43.21C or 80.50 RCW to address a probable significant adverse environmental impact.

(4) For purposes of this section, "qualifying energy project" has the same meaning as in section 202 of this act.

NEW SECTION.  Sec. 204. A new section is added to chapter 43.21A RCW to read as follows:

(1) The department must establish an ongoing program to provide biennial capacity grants to federally recognized tribes consistent with this section. It is the intent of the legislature to fund this program in the amount of at least $21,500,000 each biennium, adjusted for inflation using the most recent consumer price index.

(a) For purposes of fiscal year 2026, the legislature intends to fund the grant program with appropriations from the climate investment account created in RCW 70A.65.250.

(b) Beginning in fiscal year 2027, the legislature intends funding for the grant program to be increasingly paid for through the local community investment account created in section 113 of this act and intends to dedicate up to 50 percent of the available funds in that account towards the total cost of the program, with the balance being funded through the climate investment account created in RCW 70A.65.250.

(2) A capacity grant may be used by a recipient federally recognized tribe, at the discretion of each tribe in a manner that recognizes their sovereignty, for:

(a) Consultation on spending decisions on grants in accordance with RCW 70A.65.305;

(b) Consultation on clean energy siting projects;

(c) Activities supporting climate resilience and adaptation;

(d) Developing tribal clean energy projects, as defined in RCW 43.158.010;

(e) Applying for state or federal grant funding;

(f) Other activities for which funds in the climate commitment account, or the natural climate solutions account created in RCW 70A.65.270, are eligible; and

(g) Other related work.

(3) In order to satisfy the requirements of RCW 70A.65.230(1)(b), tribal applicants are encouraged to include a tribal resolution supporting their request with their grant application.

(4) The department must award funds available under this section equally among grant applicants.

(5) Nothing in this section limits the authority of a tribe that receives funds under this section to administratively object to or legally appeal a qualifying energy project or component thereof or to be eligible for grant funds under this section if they file such an objection or appeal.

(1) RCW 84.36.680 (Generation or storage of renewable energy) and 2023 c 427 s 1;

(2) RCW 82.96.010 (Tax on renewable energy generation or storage—Rates—Administration) and 2023 c 427 s 2;

(3) RCW 82.96.020 (Renewable energy local benefit account) and 2023 c 427 s 3; and

(4) RCW 82.96.030 (Administration—Application of chapter 82.32 RCW) and 2023 c 427 s 4.

Correct the title.