Financial Incentives

Washington

Financial Incentives

Tax Benefits:Washington offers a reduced business and occupation tax rate for manufacturers and wholesale marketers of solar PV modules or silicon components of those systems.[1]Equipment used to generate electricity using fuel cells, wind, sun, biomass energy, tidal or wave energy, geothermal, anaerobic digestion or landfill gas is exempt from the state’s sales and use tax.[2]

Other Financial Incentives:Washington has established a production incentive of $0.12 to $1.08 per kWh (depending on project type, technology type and where the equipment was manufactured), up to $5,000 per year, for individuals, businesses, and local governments that generate electricity from solar power, wind power or anaerobic digesters.[3]

Rules and Regulations

Renewable Portfolio Standard: Washington’s RPS requires utilities to use eligible renewable resources or acquire equivalent RECs to generate at least 3percent of their loads by 2012, and at least 15percent of their loads by 2020.[4] Eligible renewable resources include wind, hydro, solar, geothermal, wave, ocean, tidal, landfill gas, sewage treatment gas, biodiesel fuel, and certain types of biomass, not including municipal solid waste or wood treated with chemical preservatives.[5]

Facility Siting and Permitting: Washington’s solar easement law does not create an automatic right to sunlight, but it does allow parties to enter into solar easement contracts voluntarily.[6] In addition, homeowner’s associations are restricted from prohibiting the installation of solar energy panels.[7]

Building Codes, Appliance, and Equipment Standards: The 2009 version of the state energy code became effective on January 1, 2011.[8] The Washington State Department of Commerce created the Evergreen Sustainable Development Standard, a set of green building criteria that is required for any affordable housing project applying for state funds through the Washington State Housing Trust Fund.[9] An executive order has been issued directing state agencies to adopt green building practices in the construction of all new buildings and in major renovations of existing buildings. State building projects over 25,000 square feet must meet the LEED Silverstandard.[10]Washington has established minimum efficiency standards for twelve products, ten of which have been preempted by federal law.[11]

Electricity Transmission, Interconnection and Storage: The Washington Utilities and Transportation Commission (WUTC) has adopted interconnection standards for DG systems up to 20 MW in capacity.[12] Net metering is available to renewable energy and CHP systems up to 100 kW in capacity on a first-come, first-served basis until the cumulative generating capacity of net-metered systems equals 0.25percent of a utility’s peak demand during 1996. This cap will increase to 0.5percent on January 1, 2014.[13]All electric utilities serving more than 25,000 customers must offer customers the option of purchasing renewable energy.[14]

Government Procurement:State agencies must use all practicable and cost-effective means available, including energy efficiency and renewable energy measures, to reduce energy purchases by 10percent from fiscal year 2003 levels by September 1, 2009.[15] Washington requires at least 30percent of all new vehicles purchased through a state contract to be clean-fuel vehicles.[16]

Policies, Plans, and Governmental Affiliations

Policies and Plans: It is the policy of Washington that its public agencies and institutions of higher learning work to establish the state as a leader in clean energy research, development, manufacturing, and marketing.[17]Washington has adopted a target of reducing GHG emissions to 1990 levels by 2020, 25percent below 1990 levels by 2035, and 50percent below 1990 levels by 2050. The Department of Ecology is to develop a system for monitoring and reporting Washington’s GHG emissions.[18] Washington also has a carbon dioxide mitigation plan for fossil-fueled thermal electric generation facilities.[19]WUTC must adopt policies to encourage meeting or reducing energy demand through cogeneration, measures which improve the efficiency of energy end use, and new projects which produce or generate energy from renewable resources.[20]

Government Entities:State of Washington Energy Facility Site Evaluation Council,[21] Washington State Department of Commerce,[22]Washington State Department of Ecology,[23] Washington State Department of General Administration,[24]Washington State Department of Revenue,[25]Washington Utilities and Transportation Commission.[26]

Regional Memberships:Washington is a member of WCI, ICAP, and the WGA, and is also one of three states to comprise the West Coast Governors Global Warming Initiative.

[1]RCW § 82.04.294.

[2]RCW § 82.08.02567; RCW § 82.08.835.

[3]RCW § 82.16.110 et seq.; WAC § 458-20-273.

[4]RCW § 19.285.010 et seq.; WAC § 480-109-001 et seq.; WAC § 194-37-010 et seq.

[5]RCW § 19.285.030(10), (18).

[6]RCW § 64.04.140.

[7]RCW § 64.38.005 et seq.

[8]

[9]

[10]Executive Order 05-01.

[11]RCW § 19.260.010 et seq.;

[12]WAC § 480-108-001 et seq.

[13]RCW § 80.60.005 et seq.

[14]RCW § 19.29A.090;

[15]Executive Order 05-01.

[16]RCW § 43.19.637.

[17]RCW § 28B.20.298.

[18]RCW § 70.235.020.

[19]RCW § 80.70.010 et seq.

[20]RCW § 80.28.025.

[21]

[22]

[23]

[24]

[25]

[26]