HB 1960 — Encouraging renewable energy in Washington through tax policy and investment in local communities.

For taxes levied for collection in calendar year 2027, each taxing district, other than the state, that receives renewable energy excise tax revenues under section 103 of this act must have its highestp. lawful levy under this chapter permanently reduced by the amount of revenue based on the assessed value for property exempt under section 102 of this act that would have otherwise been levied.

6 HB 1960 highest lawful levy under this chapter permanently reduced by the amount of revenue based on the assessed value for property exempt under section 102 of this act that would have otherwise been levied.

109.108.

(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 p.dollar amount.

7 SHB 1960 dollar amount.

Sec.p.

110.7 HB 1960 Sec.

109.

and p.(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.

8 SHB 1960 (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.

111.110.

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 propertyp. tax levy rate of that annexing taxing district for the preceding year by the increase in assessed value in the annexing district resulting from:

8 HB 1960 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:

p.Sec.

9111. SHB 1960 Sec.

112.

(b) For taxes levied for collection in 2027, a taxing district, other than the state, that received renewable energy excise tax revenues under section 103 of this act must reduce the levy in (a) of this subsection by the amount of the reduction under section 108107 of this act.

(2)p. The purpose of subsection (1)(a) of this section is to remove the incentive for a taxing district to maintain its tax levy at the maximum level permitted under this chapter, and to protect the future levy capacity of a taxing district that reduces its tax levy below the level that it otherwise could impose under this chapter, by removing the adverse consequences to future levy capacities resulting from such levy reductions.

9 HB 1960 (2) The purpose of subsection (1)(a) of this section is to remove the incentive for a taxing district to maintain its tax levy at the maximum level permitted under this chapter, and to protect the future levy capacity of a taxing district that reduces its tax levy below the level that it otherwise could impose under this chapter, by removing the adverse consequences to future levy capacities resulting from such levy reductions.

113.112.

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 p.hearing.

10 SHB 1960 hearing.

(i)p. New construction;

10 HB 1960 (i) New construction;

114.113.

p.(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;

11(c) SHB"Tax 1960information" (b) "Return" 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 informationtax returnpayments, whether taken from the taxpayer's books and records or claimany forother refundsource, required(iii) by,whether the taxpayer's return was, is being, or providedwill forbe examined or permittedsubject under,to theother lawsinvestigation or processing, (iv) a part of thisa statewritten whichdetermination that is filednot withdesignated theas departmenta ofprecedent revenueand by,disclosed onpursuant behalfto of,RCW 82.32.410, or witha respectbackground file document relating to a person,written determination, and any(v) amendmentother ordata supplementreceived thereto,by, includingrecorded supportingby, schedules,prepared attachments,by, furnished to, or listscollected thatby arethe supplementaldepartment to,of orrevenue partwith of,respect to the returndetermination soof filed;the p.

(c)11 "TaxHB information"1960 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.

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

12 SHB 1960 (3) This section does not prohibit the department of revenue from:

(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 suchp. other person.

12 HB 1960 such other person.

p.(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;

13 SHB 1960 (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;

(h)p. 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;

13 HB 1960 (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;

(k) Disclosing, in a manner that is not associated with other tax information, the taxpayer name, entity type, business address, p.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.

14 SHB 1960 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.

(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 departmentp. for a filed tax warrant, judgment, or lien against the real property;

14 HB 1960 department for a filed tax warrant, judgment, or lien against the real property;

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

15 SHB 1960 governing board, or authorized representatives of such board or states, for the limited purposes of:

((or)) (x)p. 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;

or15 (y)HB 1960 (x) Disclosing toany localreturn taxingor officials,tax includinginformation countyto assessorsan orindividual treasurers,when the identityreturn andor tax information ofis personsrelated subjectdirectly to thethat renewableperson's energyindividual exciseliability, taxas underpart sectionof 103a ofmarital thiscommunity, actfor associatedamounts withdue theunder taxa distributionwarrant issued under sectionthe 105authority of thisRCW act.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 section 103 of this act associated with the tax distribution under section 104 of this act.

However, the department may not disclose general ledgers, sales or cash receipt p.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.

16 SHB 1960 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.

(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 injunctivep. relief.

16 HB 1960 injunctive relief.

Notwithstanding anything else to the contrary in this section, a person served with a subpoena under RCW 82.32.117 may p.disclose the existence or content of the subpoena to that person's legal counsel.

17 SHB 1960 disclose the existence or content of the subpoena to that person's legal counsel.

115.114.

Thep. local community investment account is created in the state treasury.

All17 receiptsHB from1960 theThe excise tax imposed by section 103 of this act and allocated to the local countiescommunity andinvestment localaccount taxingis districtscreated in section 105(1) of this act must be deposited into the account.state treasury.

MoneysAll mustreceipts befrom distributedthe excise tax imposed by section 103 of this act and allocated to the respectivelocal countycounties treasurersand pursuantlocal totaxing districts in section 105(2)104(1) of this act.act must be deposited into the account.

ExpendituresMoneys frommust the account may be useddistributed forto the localrespective communitycounty investmentstreasurers containedpursuant into sectionssection 202,104(2) 203, and 204 of this act.

116.115.

All receipts from the ((production excise tax in RCW 82.96.010)) renewable energy excise tax imposed pursuant to section 103 of this act and allocated to the state pursuant to section 105(1)104(1) of this act must be deposited in the account.

(2) The total amount appropriated to qualified counties and the qualified school districts within those counties must be in proportion to the amount of production excise tax paid by renewable p.energy systems located in those counties and must be distributed as follows:

18 SHB 1960 energy systems located in those counties and must be distributed as follows:

(b) "Qualified federally recognized Indian tribe" means a federally recognized Indian tribe with rights or lands reserved or protectedp. by federal treaty, statute, or executive order that are potentially impacted by a renewable energy system that receives a tax exemption under RCW 84.36.680 and pays the production excise tax under RCW 82.96.010.

18 HB 1960 protected by federal treaty, statute, or executive order that are potentially impacted by a renewable energy system that receives a tax exemption under RCW 84.36.680 and pays the production excise tax under RCW 82.96.010.

Encouraging such developments will help achieve state clean energy goals under the clean energy transformation act, achieve energy reliability and affordability, and p.ensure that the economic benefits of these projects will accrue to the benefit of the local community.

19 SHB 1960 ensure that the economic benefits of these projects will accrue to the benefit of the local community.

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 ofp. the qualifying energy project.

19 HB 1960 of the qualifying energy project.

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

20 SHB 1960 (A) Located entirely within a city, the city is the primary jurisdiction;

(b)p. 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.

20 HB 1960 (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.

p.(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;

21 SHB 1960 (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;

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

21 HB 1960 (b) The department may expend up to five percent of the funds appropriated for the program for administrative costs.

(a)(i)(a) "Energy"Program" storage system" means commercially available technology that is capable of retaining electricity, storing the renewable energy fordevelopment alocal periodinvestment ofcommitment time,matching andgrant deliveringprogram theestablished electricityin afterthis storagesection. by chemical, thermal, mechanical, or other means.

(ii)(b) "Energy"Project storagedeveloper" system"means doesa notperson includethat enters into a solarlocal orinvestment windcommitment energyassociated productionwith facility.a qualifying energy project.

(b)(c) "Program""Qualifying energy project" means thea renewablebattery energy developmentstorage localfacility investmentand commitmenta matchingwind grantor programsolar establishedenergy inproduction facility, associated facilities, and any combination thereof, constructed after the effective date of this section.section and that is located in a county or city that has entered into a local investment commitment with the project developer.

p.

22 SHB 1960 (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.

(1)(a) ToFor bepurposes eligibleof for the grant program in section 202 of this act, a county or city ordinance or other restriction that limits the siting of a wind qualifying energy project mayas notfollows containconstitutes standardsa thatde arefacto moremoratoria restrictiveon than the following:development of qualifying energy projects:

(E)p. For nonparticipating property boundary lines:

22 HB 1960 (E) For nonparticipating property boundary lines:

1.1 times the maximum blade tip height of the wind tower to the edgecenter point of the public road right-of-right-of-way; way;

p.(ii) Requirements that a wind tower be sited so that industry standard computer modeling indicates that any occupied community building or nonparticipating residence not experience 30 hours or more per year of shadow flicker under planned operating conditions;

23 SHB 1960 (ii) Requirements that a wind tower be sited so that industry standard computer modeling indicates that any occupied community building or nonparticipating residence not experience 30 hours or more per year of shadow flicker under planned operating conditions;

(b) ToFor bepurposes eligibleof for the grant program in section 202 of this act, a county or city ordinance or other restriction that limits the siting of a solar qualifying energy project mayas notfollows containconstitutes standardsa morede restrictivefacto thanmoratoria on the following:development of qualifying energy projects:

(ii) A requirement for commercial solar energy facilities to be sited so that the facility's perimeter is enclosed by fencing having a height of 1025 feet or more;

(iii)p. A requirement for commercial solar energy facilities to be sited so that components of the solar panel must have a height of 20 feet or less above ground when the facility's arrays are at full tilt.

(c)23 ToHB be1960 eligible(iii) forA therequirement grantfor programcommercial insolar sectionenergy 202facilities ofto thisbe act,sited aso countythat orcomponents cityof ordinancethe orsolar otherpanel restrictionmust thathave limitsa theheight siting of any20 typefeet ofor qualifyingless energyabove projectground maywhen notthe containfacility's standardsarrays moreare restrictiveat thanfull thetilt. following:

(i)(c) NoiseFor limitationspurposes thatof arethe moregrant restrictiveprogram onin anysection type202 of qualifyingthis energyact, projecta thancounty theor limitationscity thatordinance applyor toother other,restriction similarthat typeslimits the siting of developmentsany ortype facilitiesqualifying inenergy project as follows constitutes a de facto moratoria on the jurisdiction;development of qualifying energy projects:

(ii)(i) ZoningSound regulationslimitations that disallow,are permanentlymore orrestrictive temporarily,on any type of qualifying energy projectsproject fromthan beingthe developedlimitations that apply to other, similar types of developments or p.facilities in the jurisdiction;

24(ii) SHBZoning 1960regulations operatedthat indisallow, anypermanently area zoned to allow industrial or agriculturaltemporarily, uses,qualifying exceptenergy forprojects regulationsfrom adoptedbeing underdeveloped RCWor 36.70A.060operated thatin areany necessaryarea zoned to preventallow conversionindustrial of agricultural resource lands of long-term commercial significance or to prevent operational interference with agricultural activitiesuses; on agricultural resource lands of long-term significance;

(iii) Application fees for qualifying energy projects that are unreasonable;unreasonable or that are not consistent with fees for projects in the jurisdiction with a similar capital value and cost;

(vii) Requirements that a qualifying energy project developer pay costs, fees, or other charges for road work that is not rationallyspecifically relatedand oruniquely roughlyattributable proportional to the construction or operation of a qualifying energy facility;

(2)(a)p. Qualifying energy projects that receive applicable permits to develop and operate from the jurisdiction in which the project is located, and which do not use the site certification process in chapter 80.50 RCW, are eligible for the grant program in section 202 of this act.

(b)24 InHB order1960 for(2)(a) aQualifying qualifying energy projectprojects that receivesreceive siteapplicable certificationpermits underto chapterdevelop 80.50and RCWoperate tofrom bethe eligiblejurisdiction forin which the grantproject programis inlocated, sectionand 202which ofdo thisnot act,use the primarysite jurisdictioncertification process in whichchapter the80.50 projectRCW, isare located mustin demonstratea tojurisdiction thethat departmentdoes thatnot thehave jurisdictiona hasde establishedfacto standardsmoratoria foron the development of qualifying energy projectsprojects, p.and are eligible for the grant program in section 202 of this act.

25(b) SHBIn 1960order for a qualifying energy project that arereceives moresite restrictivecertification thanunder thechapter applicable80.50 standardsRCW referencedto inbe subsectioneligible (1)(a),for (b),the orgrant (c)program in section 202 of this section,act, the primary jurisdiction in which the project is located must demonstrate to the department that the jurisdiction does not have a de facto moratoria on qualifying energy developments and that the qualifying energy projectdevelopment would have been eligible to receive applicable permits from the jurisdiction.

(d) "Participating property" means real property that is owned by the project developer or is the subject of a written agreement betweenp. the project developer and the owner of the real property that provides the project developer an easement, option, lease, or license to use the real property for purposes of the qualifying energy project.

25 HB 1960 between the project developer and the owner of the real property that provides the project developer an easement, option, lease, or license to use the real property for purposes of the qualifying energy project.

p.(g) "Project developer" has the same meaning as in section 202 of this act.

26 SHB 1960 (g) "Project developer" has the same meaning as in section 202 of this act.

and (B)p. Ensure that each hole or cavity created in the ground by the removal is filled with topsoil by the same type or a similar type as the predominant topsoil found on the property;

26 HB 1960 (B) Ensure that each hole or cavity created in the ground by the removal is filled with topsoil by the same type or a similar type as the predominant topsoil found on the property;

and p.(iv) Clear, clean, and remove from the property each overhead power or communications line installed by the grantee on the property;

27 SHB 1960 (iv) Clear, clean, and remove from the property each overhead power or communications line installed by the grantee on the property;

(2) In order to qualify for the grant program established in section 202 of this act, a wind power facility agreement must provide that the grantee obtain and deliver to the landowner evidence of financial assurance meeting the requirements of this subsection to securep. the performance of the grantee's obligation to remove the grantee's wind power facilities located on the landowner's property as described in subsection (1) of this section.

27 HB 1960 secure the performance of the grantee's obligation to remove the grantee's wind power facilities located on the landowner's property as described in subsection (1) of this section.

(b) The amount of the financial assurance must be at least equal to the estimated amount by which the cost of removing the wind power facilities from the landowner's property and restoring the property p.to as near as reasonably possible the condition of the property as of the date the agreement begins exceeds the salvage value of the wind power facilities, minus any portion of the value of the wind power facilities pledged to secure outstanding debt.

28 SHB 1960 to as near as reasonably possible the condition of the property as of the date the agreement begins exceeds the salvage value of the wind power facilities, minus any portion of the value of the wind power facilities pledged to secure outstanding debt.

(f)p. The grantee may not cancel financial assurance before the date the grantee has completed the grantee's obligation to remove the grantee's wind power facilities located on the landowner's property in the manner provided by this section, unless the grantee provides the landowner with replacement financial assurance at the time of or before the cancellation.

28 HB 1960 (f) The grantee may not cancel financial assurance before the date the grantee has completed the grantee's obligation to remove the grantee's wind power facilities located on the landowner's property in the manner provided by this section, unless the grantee provides the landowner with replacement financial assurance at the time of or before the cancellation.

(3) Nothing in this section requires a wind energy production facility to meet the decommissioning standards established in p.subsection (1) of this section or provide the financial assurance described in subsection (2) of this section, except for purposes of qualifying for the grant program in section 202 of this act.

29 SHB 1960 subsection (1) of this section or provide the financial assurance described in subsection (2) of this section, except for purposes of qualifying for the grant program in section 202 of this act.

(b) Beginning in fiscal year 2026, the legislature intends funding for the grant program to be increasingly paid for through the local community investment account created in section 115114 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 ofp. $21,500,000 being funded through the climate commitment account created in RCW 70A.65.260.

29 HB 1960 of $21,500,000 being funded through the climate commitment account created in RCW 70A.65.260.

p.(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;

30 SHB 1960 (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;

NEWp. SECTION.

30 HB 1960 NEW SECTION.

Sections 101 through 108107 and 112111 of this act apply to property taxes levied for collection in 2027 and thereafter.

Sections 109108 through 111110 and 113112 of this act apply to property taxes levied for collection in 2026 and thereafter.

p.NEW SECTION.

31 SHB 1960 NEW SECTION.

3231 SHBHB 1960