BILL REQ. #:  H-1646.1 

READ FIRST TIME 02/06/09.   

     AN ACT Relating to creating customer rebates and public utility tax credits for light and power businesses and gas companies; adding new sections to chapter 82.16 RCW; creating a new section; and providing an expiration date.

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

NEW SECTION.  Sec. 1    (1) The legislature finds that Washington's growing population and economy will put a strain on energy supplies and threaten the ability of the state to meet its climate policy goals unless specific steps are taken to reduce demand and utilize energy more efficiently. Water heating for domestic and industrial use relies almost entirely on electricity and natural gas and accounts for a significant percentage of the state's electrical and natural gas consumption. Solar water heating systems represent one of the largest untapped electricity and natural gas conservation potential remaining in Washington. The legislature finds that solar water heaters can provide half or more of the hot water needs in the average home, and reduce electric or natural gas consumption with free renewable energy from the sun.
     (2) It is the intent of the legislature to facilitate the installation of solar water heating systems in homes and businesses by providing: (a) A rebate to customers who install solar water heating systems; and (b) a tax credit to the light and power business based on the amount of solar water heating systems installed by their customers. The rebate and tax credit will support energy conservation, save thousands of dollars in home heating costs, and preserve the environment. The legislature finds that the rebate and tax credit has broad application for the installation of solar water heating systems in urban, rural, business, and residential locations, as well as in any climate throughout the state.

NEW SECTION.  Sec. 2   A new section is added to chapter 82.16 RCW to read as follows:
     (1) Beginning July 1, 2009, a light and power business or gas company may provide a rebate to its retail customers for the costs incurred by such customers in installing solar water heating systems in their home or business. The amount of the rebate must not be more than:
     (a) Fifty percent of the total costs incurred by the customer for solar water heating systems manufactured outside of Washington; and
     (b) Seventy-five percent of the total costs incurred by the customer for solar water heating systems manufactured in Washington.
     (2) In determining the amount of the rebate, a light and power business or gas company must determine a tiered amount based on the efficiency of the solar water heating system.
     (3)(a) For solar water heating systems manufactured outside of Washington, no individual, household, business, or local governmental entity is eligible for rebates for more than four thousand dollars per calendar year.
     (b) For solar water heating systems manufactured in Washington, no individual, household, business, or local governmental entity is eligible for rebates for more than five thousand dollars per calendar year.
     (4) In no event may the total amount of such rebates for each light and power business or gas company, during any calendar year, exceed the amount of the tax credit provided under section 3 of this act.
     (5) For the purposes of this act, a solar water heating system must, at a minimum, have a solar rating and certification corporation (SRCC) certification as of July 1, 2009.

NEW SECTION.  Sec. 3   A new section is added to chapter 82.16 RCW to read as follows:
     (1) Each light and power business or gas company must be allowed a credit against taxes due under this chapter in an amount up to fifty percent of rebates made in any calendar year under section 2 of this act.
     (2) The credit must be taken in a form and manner as required by the department.
     (3) The credit under this section for the calendar year may not exceed twenty-five one-hundredths of one percent of the businesses' taxable power sales due under RCW 82.16.020(1)(b) or fifty thousand dollars, whichever is greater.
     (4) The credit may not exceed the tax that would otherwise be due under this chapter.
     (5) Refunds may not be granted in the place of credits.
     (6) Expenditures not used to earn a credit in one calendar fiscal year may not be used to earn a credit in subsequent years, except that this limitation does not apply to expenditures made between January 1, 2009, and July 1, 2009, which expenditures may be used to earn a credit through December 31, 2009.
     (7) The total amount of credits that may be used in any calendar year may not exceed one million dollars in any calendar year. If requests for the credit in section 2 of this act exceed the total amount of credits available, the credits must be reduced proportionally.

NEW SECTION.  Sec. 4   This act expires December 31, 2012.