Washington 2023-2024 Regular Session Status: Passed House 12 D cosponsors

HB 1427 — Concerning on-premises energy generation.

Last action — Referred to Environment & Energy.

  1. ✓
    Introduced
  2. ✓
    In Committee
  3. 3
    Passed House
  4. 4
    Passed Senate
  5. 5
    To Executive
  6. 6
    Enacted

This bill died with 2023-2024 Regular Session. It reached “Passed House” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there are no live odds of enactment. It would have to be reintroduced in the current session to move again.

Bill Text

What changed in the latest version

376 added · 395 removed

Plain-language change summary

The revised version of Bill HB 1427 increases the capacity limits for net metering systems in consumer-owned and investor-owned utilities. Previously, the maximum capacity for these systems was one megawatt, but this has been increased to two megawatts for investor-owned utilities and up to 200 kilowatts for consumer-owned utilities. Additionally, the threshold for cumulative generating capacity needed to trigger a limit on new net metering systems has been raised from four percent to twelve percent of the utility's peak demand during 1996. These changes are important because they aim to promote renewable energy usage by allowing larger systems to connect to the grid, potentially accelerating the transition to cleaner energy sources.

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H-1147.1 SUBSTITUTE HOUSE BILL 1427 State of Washington 68th Legislature 2023 Regular Session By House Environment & Energy (originally sponsored by Representatives Mena, Doglio, Ramel, Street, Berry, Duerr, Hackney, Reed, Fosse, Cortes, Lekanoff, and Peterson) READ FIRST TIME 02/14/23.
H-0567.1 HOUSE BILL 1427 State of Washington 68th Legislature 2023 Regular Session By Representatives Mena, Doglio, Ramel, Street, Berry, Duerr, Hackney, Reed, Fosse, Cortes, Lekanoff, and Peterson Read first time 01/18/23.
Referred to Committee on Environment & Energy.
1 SHB 1427 (4) "Customer-generator" means a user of a net metering system.
1 HB 1427 (4) "Customer-generator" means a user of a net metering system.
(a) Has an electrical generating AC capacity of ((not more than one hundred kilowatts)) up to one megawatt for a system in the service territory of a consumer-owned utility.
(a) Has an electrical generating AC capacity of ((not more than one hundred kilowatts)) up to 200 kilowatts for a system in the service territory of a consumer-owned utility.
A consumer-owned utility is not required to approve a net metering system for the sole reason that the system conflicts with the Bonneville power administration's definition of a small generator;
Consumer-owned utilities may allow a net metering system larger than 200 kilowatts in their service territory;
(b) Has an electrical generating AC capacity of up to one megawatt for a system in the service territory of an investor-owned utility.
(b) Has an electrical generating AC capacity of up to two megawatts for a system in the service territory of an investor-owned utility.
Investor-owned utilities may allow a net metering system larger than one megawatt in their service territory;
Investor-owned utilities may allow a net metering system larger than two megawatts in their service territory;
2 SHB 1427 (((c))) (d) Operates in parallel with the electric utility's transmission and distribution facilities and is connected to the electric utility's distribution system;
2 HB 1427 (((c))) (d) Operates in parallel with the electric utility's transmission and distribution facilities and is connected to the electric utility's distribution system;
(i) ((June 30)) December 31, 2029;
(i) ((June 30, 2029)) December 31, 2035;
or (ii) the first date upon which the cumulative generating capacity of net metering systems equals ((four)) six percent of the utility's peak demand during 1996.
or (ii) the first date upon which the cumulative generating capacity of net metering systems equals ((four)) 12 percent of the utility's peak demand during 1996.
Not less than one-half of the utility's 1996 peak demand available for net metering systems shall be reserved for the cumulative generating capacity attributable to net metering systems that generate renewable energy.
Not less than one- half of the utility's 1996 peak demand available for net metering systems shall be reserved for the cumulative generating capacity attributable to net metering systems that generate renewable energy;
Nothing in this section prohibits an electric utility from continuing to make net metering available after the conditions in this subsection are met.
(b) Shall allow net metering systems to be interconnected using a standard kilowatt-hour meter capable of registering the flow of p.
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3 HB 1427 electricity in two directions, unless the commission, in the case of an electrical company, or the appropriate governing body, in the case of other electric utilities, determines, after appropriate notice and opportunity for comment:
3 SHB 1427 An electric utility must continue to make net metering available for low-income households after the conditions in this subsection are met.
For the purposes of this subsection, "low-income" has the same meaning as defined in RCW 19.405.020;
(b) Shall allow net metering systems to be interconnected using a standard kilowatt-hour meter capable of registering the flow of electricity in two directions, unless the commission, in the case of an electrical company, or the appropriate governing body, in the case of other electric utilities, determines, after appropriate notice and opportunity for comment:
The contract must be transferable to any future customer-generator at the electric meter, in the case of changing system ownership, for the remainder of the contract term.
The contract must be transferable to any future customer-generator at the electric meter, in the case of changing system ownership, for the remainder of the contract term;
(e) Must develop a standard rate or tariff schedule that is expressed as a percentage of the utility's retail rate.
(2) If a production meter and software is required by the electric utility to provide meter aggregation under RCW 80.60.030(4), the customer-generator is responsible for the purchase of the production meter and software.
4 SHB 1427 (2) If a production meter and software is required by the electric utility to provide meter aggregation under RCW 80.60.030(4), the customer-generator is responsible for the purchase of the production meter and software.
4 HB 1427 (3)(a)(i) A consumer-owned utility may develop a standard rate or tariff schedule that deviates from RCW 80.60.030 for eligible customer-generators to take effect at the earlier of either:
(3)(a)(i) A consumer-owned utility may develop a standard rate or tariff schedule that deviates from RCW 80.60.030 for eligible customer-generators to take effect at the earlier of either:
(A) ((June 30, 2029)) December 31, 2035;
(A) ((June 30)) December 31, 2029;
or (B) the first date upon which the cumulative generating capacity of net metering systems equals ((four)) 12 percent of the utility's peak demand during 1996.
or (B) the first date upon which the cumulative generating capacity of net metering systems equals ((four)) six percent of the utility's peak demand during 1996.
(i) After ((June 30)) December 31, 2029, or (ii) the first date upon which the cumulative generating capacity of net metering systems pursuant to RCW 80.60.030 equals ((four)) six percent of the utility's peak demand during 1996, whichever is earlier, unless the commission or governing body determines that a customer-generator is eligible for net metering under a rate or tariff schedule pursuant to RCW 80.60.030.
(i) After ((June 30, 2029)) December 31, 2035, or (ii) the first date upon which the cumulative generating capacity of net metering systems pursuant to RCW 80.60.030 equals ((four)) 12 percent of the utility's peak demand during 1996, whichever is earlier, unless the commission or governing body determines that a customer-generator is eligible for net metering under a rate or tariff schedule pursuant to RCW 80.60.030.
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(A) Each electric utility's progress on reaching the cumulative generating capacity available to net metering systems pursuant to subsection (1)(a) of this section;
5 SHB 1427 (A) Each electric utility's progress on reaching the cumulative generating capacity available to net metering systems pursuant to subsection (1)(a) of this section;
and (C) Electric utilities that have adopted a standard rate or tariff schedule under this subsection.
and p.
5 HB 1427 (C) Electric utilities that have adopted a standard rate or tariff schedule under this subsection.
(A) ((June 30)) December 31, 2029;
(A) ((June 30, 2029)) December 31, 2035;
or (B) the first date upon which the cumulative generating capacity of net metering systems reaches ((four)) six percent of the utility's peak demand in 1996;
or (B) the first date upon which the cumulative generating capacity of net metering systems reaches ((four)) 12 percent of the utility's peak demand in 1996;
(5)(a) An electric utility may offer net metering that incorporates time-of-use net metering rates to eligible customer- generators, consistent with the other provisions of this chapter.
(b) An electric utility offering time-of-use net metering rates is encouraged to create incentive plans for distributed energy storage.
(c) Any time-of-use net metering rate offered by an electric utility must be optional for customer-generators.
(1) The electric utility shall measure the net electricity produced or consumed during the billing period, in accordance with normal metering practices.
6 SHB 1427 (2) If the electricity supplied by the electric utility exceeds the electricity generated by the customer-generator's net metering system and fed back to the electric utility during the billing period, the customer-generator shall be billed for the net electricity supplied by the electric utility, in accordance with normal metering practices.
6 HB 1427 (1) The electric utility shall measure the net electricity produced or consumed during the billing period, in accordance with normal metering practices.
(2) If the electricity supplied by the electric utility exceeds the electricity generated by the customer-generator's net metering system and fed back to the electric utility during the billing period, the customer-generator shall be billed for the net electricity supplied by the electric utility, in accordance with normal metering practices.
(e) Credits for excess kilowatt-hours earned by the net metering system at the site of a designated meter during a billing period shall be credited by the electric utility for kilowatt-hour charges due at the aggregated meter at the applicable rate of the aggregated meter.
(e) Credits for excess kilowatt-hours earned by the net metering system at the site of a designated meter during a billing period p.
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7 HB 1427 shall be credited by the electric utility for kilowatt-hour charges due at the aggregated meter at the applicable rate of the aggregated meter.
7 SHB 1427 (f) If credits generated in any billing period exceed total consumption for that billing period at both meters that are part of an aggregated arrangement, credits are retained pursuant to subsections (3) and (5) of this section.
(f) If credits generated in any billing period exceed total consumption for that billing period at both meters that are part of an aggregated arrangement, credits are retained pursuant to subsections (3) and (5) of this section.
(5) On March 31st of each calendar year, any remaining unused credits for kilowatt-hours accumulated during the previous year shall be granted to the electric utility, without any compensation to the customer-generator, for distribution to low-income customers through a utility energy assistance program.
(5) On March 31st of each calendar year, any remaining unused credits for kilowatt-hours accumulated during the previous year shall be granted to the electric utility, without any compensation to the customer-generator , for distribution to low-income customers through a utility energy assistance program.
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NEW SECTION.
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8 HB 1427 NEW SECTION.
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(1) A customer intending to purchase the installation of a system producing electricity with solar energy must have a contract with a solar energy contractor unless the customer installs the system without a solar energy contractor.
8 SHB 1427 (1) A customer intending to purchase the installation of a system producing electricity with solar energy must have a contract with a solar energy contractor unless the customer installs the system without a solar energy contractor.
(e) The solar energy system's first year annual production projections in kilowatt-hours and the methodology and the means, or name of the program or tool used to develop the projections;
(e) The solar energy system's annual production projections in kilowatt-hours and the methodology and the means, or name of the program or tool used to develop the projections;
(l) The contract must provide the following recommendation in capital letters:
9 SHB 1427 "IF YOU INTEND TO OBTAIN A LOAN TO PAY FOR ALL OR PART OF THE CONTRACT, IT IS RECOMMENDED THAT YOU WAIT UNTIL RECEIVING FINANCIAL APPROVAL BEFORE SIGNING THIS SOLAR ENERGY CONTRACT.";
9 HB 1427 (l) The contract must provide the following recommendation in capital letters:
"IF YOU INTEND TO OBTAIN A LOAN TO PAY FOR ALL OR PART OF THE CONTRACT, IT IS RECOMMENDED THAT YOU WAIT UNTIL RECEIVING FINANCIAL APPROVAL BEFORE SIGNING THIS SOLAR ENERGY CONTRACT.";
(n) The contract must provide the following notice in capital letters:
and (n) The contract must provide the following notice in capital letters:
YOU HAVE THE RIGHT TO CANCEL YOUR SOLAR ENERGY CONTRACT WITHIN THREE BUSINESS DAYS OF CONTRACT SIGNING.";
YOU HAVE THE RIGHT TO CANCEL YOUR SOLAR ENERGY CONTRACT WITHIN THREE BUSINESS DAYS OF CONTRACT SIGNING." (3) If the customer indicates that they intend to obtain a loan to pay for all or part of the cost of the solar energy contract, the solar energy contractor or their subcontractor may not begin work until after the customer's rescission rights provided in this section have expired.
(o) The contract must state that the addition of a solar generation system may affect the value of the structure as determined by the county assessor and any change in value may be reflected in annual property taxes;
and (p) The contract must state that a solar generation system will automatically island the customer-generator from the utility grid in the event of a power outage to protect utility repair personnel from a risk of electric shock from the electricity that could otherwise flow into the utility distribution system from the solar generation system.
This provision may be omitted if the solar generation system includes grid forming inverters, battery back-up equipment, or other equipment that satisfies UL1741 standards.
(3) If the customer indicates that they intend to obtain a loan to pay for all or part of the cost of the solar energy contract, the solar energy contractor or their subcontractor may not begin work until after the customer's rescission rights provided in this section have expired.
A person or entity who p.
A person or entity who sells or otherwise assigns a solar energy contract must include a prominent notice of the potential liability under this section.
10 SHB 1427 sells or otherwise assigns a solar energy contract must include a prominent notice of the potential liability under this section.
(6) A solar energy contractor or subcontractor who fails to comply with the requirements of this chapter is liable to the customer for any actual damages sustained by the person as a result of the failure.
(6) A solar energy contractor or subcontractor who fails to comply with the requirements of this chapter is liable to the customer for any actual damages sustained by the person as a result p.
10 HB 1427 of the failure.
(1) An entity offering solar energy sales or installation services must offer a contract pursuant to section 4 of this act.
An entity offering solar energy sales or installation services must offer a contract pursuant to section 4 of this act.
(2) A contractor who enters into a contract to perform work on a net metering system shall pay every worker, laborer, and mechanic employed in the execution of the work at least the prevailing rate of wage for their trade or occupation, except that an apprentice registered in an apprenticeship program approved by the Washington state apprenticeship and training council must be paid at least the applicable apprentice prevailing rate of wage.
(1)(a) By May 1, 2024, the commission and the department of commerce must jointly convene a work group focused on the future of net metering in Washington state.
(1)(a) By May 1, 2024, the Washington State University extension energy program must convene a work group focused on the future of net metering in Washington state.
The work group must include representatives from consumer-owned utilities, investor-owned utilities, the commission, the rooftop solar industry, including the Washington solar energy industries association, agricultural farms in the business of producing crops for food and fermented beverages, environmental justice advocates, labor unions, consumer advocates, rural communities including communities east of the crest of the Cascade mountains, and federally recognized Indian tribes.
The work group must include representatives from consumer-owned utilities, investor-owned utilities, the commission, the rooftop solar industry, including the Washington solar energy industries association, agricultural farms in the business of producing crops for food and fermented beverages, environmental justice advocates, labor unions, consumer advocates, rural communities including communities east of the crest of the Cascade mountains, and Indian tribes.
(b) The work group must report recommendations to the commission and the department of commerce on what alternatives to net metering should be considered by the legislature and when it is reasonable for these alternatives to be implemented.
(b) The work group must report recommendations to the Washington State University extension energy program on what alternatives to net metering should be considered by the legislature and when it is reasonable for these alternatives to be implemented.
The work group should take into p.
The work group should take into account the findings of the cost shift study required in subsection (2) of this section in its recommendations.
11 SHB 1427 account the findings of the cost shift study required in subsection (2) of this section in its recommendations.
(2) By January 31, 2024, the department of commerce must begin to conduct a study to investigate the magnitude of any cost shifts among ratepayers associated with retail rate net metering in Washington state, under scenarios assuming total net metered generation capacity of six percent, eight percent, and 12 percent of 1996 peak power.
The work group must consider whether it is reasonable for utilities to count consumer-owned clean energy systems in their service territory toward their clean energy transformation act compliance targets.
This study must consider the value of solar at utilities representing different levels of customer counts, expected solar insolation, population density and urbanization, topography, types of vegetation, and other characteristics the department of commerce deems relevant.
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(3) The commission and the department of commerce must summarize the work group's recommendations and the findings of the cost shift study in a report and must deliver the report to the appropriate committees of the legislature by December 1, 2026.
11 HB 1427 (2) By January 31, 2024, the Washington State University extension energy program must begin to conduct a study to investigate the magnitude of any cost shifts among ratepayers associated with retail rate net metering in Washington state, under scenarios assuming total net metered generation capacity of six percent, 12 percent, and 24 percent of 1996 peak power.
(4) The intent of the legislature is for utilities to wait until the work group process has concluded before proposing or adopting alternatives to net metering.
(3) The Washington State University extension energy program must summarize the work group's recommendations and the findings of the cost shift study in a report and must deliver the report to the appropriate committees of the legislature by December 1, 2026.
(1) It is the intent of the legislature that the state's net metering policy is updated and implemented by January 1, 2030.
(1) It is the intent of the legislature that the state's net metering policy is updated and implemented by January 1, 2035.
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(b) Be expressed as a percentage of the utility's retail rate;
12 SHB 1427 (b) Be communicated to customers with one year's notice from when the rate or tariff schedule is first publicly proposed to before it would go into effect;
(c) Be communicated to customers with three year's notice from when the rate or tariff schedule is first publicly proposed to before it would go into effect;
and (c) Allow for inclusion of time-of-use net metering rate structures for distributed storage systems.
and (d) Allow for inclusion of time-of-use net metering rate structures for distributed storage systems.
13 SHB 1427
12 HB 1427
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Action History

  1. Referred to Environment & Energy.

  2. Rules Committee relieved of further consideration.

  3. By resolution, reintroduced and retained in present status.

  4. Referred to Rules 2 Consideration.

  5. Rules Committee relieved of further consideration. Placed on second reading.

  6. Referred to Rules 2 Review.

  7. Minority; without recommendation.

  8. Minority; do not pass.

  9. ENVI - Majority; 1st substitute bill be substituted, do pass.

  10. Executive action taken in the House Committee on Environment & Energy at 8:00 AM.

  11. Public hearing in the House Committee on Environment & Energy at 4:00 PM.

  12. First reading, referred to Environment & Energy.

Sponsors

Sponsorship breakdown

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1 sponsors · 11 co-sponsors · 139 not signed on

Sponsors (1)

Co-sponsors (11)

Not signed on (139)

139 members have not signed on to this bill.

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"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

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Frequently asked questions

Who sponsors HB 1427?
HB 1427 is sponsored by Strom Peterson (Democrat), Debra Lekanoff (Democrat), Julio Cortes (Democrat), Mary Fosse (Democrat), Julia Reed (Democrat), David Hackney (Democrat), Davina Duerr (Democrat), Liz Berry (Democrat), Chipalo Street (Democrat), Alex Ramel (Democrat), Beth Doglio (Democrat), and Sharlett Mena (Democrat).
What is the current status of HB 1427?
This bill died with 2023-2024 Regular Session. It reached “Passed House” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
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