SB 5982 — Updating provisions for consumer-owned utilities, including port districts, and affected market customers under the clean energy transformation act.

S-4336.3S-3709.1 SUBSTITUTE SENATE BILL 5982 State of Washington 69th Legislature 2026 Regular Session By Senate Environment, Energy & Technology (originally sponsored by Senators Hunt, Shewmake, Liias, and Nobles)Nobles READPrefiled FIRST01/06/26. TIME 02/02/26.

Read first time 01/12/26.

Referred to Committee on Environment, Energy & Technology.

1 SSBSB 5982 selected by a utility that is not under the jurisdiction of the state auditor and is not an investor-owned utility.

(10)(a)(10) "Consumer-owned utility" means a municipal electric utility formed under Title 35 RCW, a public utility district formed under Title 54 RCW, an irrigation district formed under chapter 87.03 RCW, p.

2 SSBSB 5982 RCW, a cooperative formed under chapter 23.86 RCW, ((or)) a mutual corporation or association formed under chapter 24.06 RCW, or a port district formed under Title 53 RCW, that is engaged in the business of distributing electricity to ((more than)) at least one retail electric customer in the state.

(b) "Consumer-owned utility" does not include a public utility district formed under Title 54 RCW with only one retail electric customer in the state provided the customer remains the same as of January 1, 2026, and the public utility district continues to receive 100 percent of its electricity needs from the Bonneville power administration.

p.(16) "Energy assistance need" means the amount of assistance necessary to achieve a level of household energy burden established by the department or commission.

3 SSB 5982 (16) "Energy assistance need" means the amount of assistance necessary to achieve a level of household energy burden established by the department or commission.

Provides energy-related goods or services, other than thep. generation of electricity;

3 SB 5982 the generation of electricity;

(iv) Investments in equipment for renewable natural gas processing, conditioning, and production, or equipment or p.infrastructure used solely for the purpose of delivering renewable natural gas for consumption or distribution;

4 SSB 5982 infrastructure used solely for the purpose of delivering renewable natural gas for consumption or distribution;

(D) infrastructure to support electrification of transportationp. needs, including battery and fuel cell electrification;

4 SB 5982 transportation needs, including battery and fuel cell electrification;

(i) Purchases electricity from an entity ((or entities other than the utility with p.which it is directly interconnected)) that is not a utility subject to this chapter;

5 SSB 5982 which it is directly interconnected)) that is not a utility subject to this chapter;

(c)p. "Affected market customer" does not include a nonresidential customer of an electric utility that, prior to May 7, 2019, generated electricity to meet less than 100 percent of its own needs and continues to consume electricity with the same or greater percentage of nonemitting electric generation and electricity from renewable resources for the same end uses.

5 SB 5982 (26)(a) "Natural gas" means naturally occurring mixtures of hydrocarbon gases and vapors consisting principally of methane, whether in gaseous or liquid form, including methane clathrate.

However, these separate avoided emissions may not result in or p.otherwise have the effect of attributing greenhouse gas emissions to the electricity.

6 SSB 5982 otherwise have the effect of attributing greenhouse gas emissions to the electricity.

(31)p. "Renewable hydrogen" means hydrogen produced using renewable resources both as the source for the hydrogen and the source for the energy input into the production process.

6 SB 5982 (31) "Renewable hydrogen" means hydrogen produced using renewable resources both as the source for the hydrogen and the source for the energy input into the production process.

p.(((a))) (i) Megawatt-hours delivered from qualifying facilities under the federal public utility regulatory policies act of 1978, P.L.

7 SSB 5982 (((a))) (i) Megawatt-hours delivered from qualifying facilities under the federal public utility regulatory policies act of 1978, P.L.

or (((b))) (ii) Megawatt-hours delivered to an electric utility's system from a renewable resource through a voluntary renewable energy purchase by a retail electric customer of the utility in which the renewable energy credits associated with the megawatt-hours delivered are retired on behalf of the retail electric customercustomer; ;

(36)p. "Thermal renewable energy credit" means, with respect to a facility that generates electricity using biomass energy that also generates thermal energy for a secondary purpose, a renewable energy credit that is equivalent to three million four hundred twelve thousand British thermal units of energy used for such secondary purpose.

7 SB 5982 (36) "Thermal renewable energy credit" means, with respect to a facility that generates electricity using biomass energy that also generates thermal energy for a secondary purpose, a renewable energy credit that is equivalent to three million four hundred twelve thousand British thermal units of energy used for such secondary purpose.

(1) It is the intent of this chapter that the commission and department adopt rules to streamline the implementation of chapter 288, Laws of 2019 with chapter 19.285 RCW to simplify compliance and p.avoid duplicative processes.

8 SSB 5982 avoid duplicative processes.

(4)(a) The department must adopt rules establishing reporting requirements for electric utilities to demonstrate compliance with thisp. chapter.

8 SB 5982 this chapter.

(b) ((Beginning)) The departmentcommission must establishadopt rules establishing reporting requirements for portaffected districtsmarket formedcustomers underto Titledemonstrate 53compliance RCW.with this chapter.

The department may waive the reporting requirements that do not pertain to the retail electric customers served by port districts.

(c) The commission must adopt rules establishing reporting requirements for affected market customers to demonstrate compliance with this chapter.

(d)(i)(c) ExceptBeginning as provided in (d)(ii) of this subsection, beginning with the interim performance report due July 1, 2026, consumer-owned electric utilities must include in each interim performance or compliance report the number of unspecified electricity contracts with terms greater than 31 days used to serve Washington retail customers.

(ii)(5) TheAn requirementinvestor-owned inutility (d)(i)must ofalso thisreport subsectionall appliesinformation torequired ain portsubsection district(4)(a) formedof underthis Titlesection 53to RCWthe beginningcommission. July 1, 2030.

p.

9 SSB 5982 (5) An investor-owned utility must also report all information required in subsection (4)(a) of this section to the commission.

Forp. affected market customers, the commission must, on its own motion or if requested, enforce compliance with the requirements of this chapter.