The 2009 legislative session ended just after midnight on Sunday April 26, and the legislature passed several energy-related bills which are relevant to the solar industry. Most significantly, ESSB 6170, includes the extension of the sales tax exemption on PV equipment through 2013 (with some conditions) and an extension of the state's production incentive until 2020 with an increase of the maximum allowed annual payment to $5,000 per year.  I have summarized the significant solar bills that passed the legislature, but they are sometimes difficult to interpret, so I encourage you to become familiar with www.leg.wa.gov and read them yourself. - Andy 
 
 
 
ESSB 6170 - This bill provided environmental tax incentives for some industries, and repealed some others.  Relative to grid-tied PV, this bill extends the sales tax exemption for systems under 10 KW through June 30, 2013.  For systems under 10 KW through June 30, 2011 no sales tax is owed.  After July 1, 2011 through June 30, 2013 the sales tax must be paid by the purchaser, but 75% of the sales tax will be refunded.  After June 30, 2013 the sales tax refund and exemption expire.  We will plan to handle the paperwork for our clients once the sales tax refund program begins in July 2011. 

ESSB 6170 also addressed the existing production incentive, extending the sunset date from June 30, 2014 to June 30, 2020.  This program was expanded to also include "Community Solar" projects and pay a higher 30 cents per kWh instead of 15 cents per kwh, for these projects.  "Community Solar" projects are defined as either: (1) a solar project owned by individuals or businesses, but sited on property owned by a local government entity; or (2) a utility-owned solar energy system that is voluntarily funded by utility's ratepayers, who support the project and then get credit on their utility bills.  The maximum annual production incentive amount for each system owner was also increased from $2,000 to $5,000 per year.    

Comment: The "Community Solar" concept, along with recent price decreases, provides a lot of potential to realize favorable economies of scale, but I'd still rather have my PV on my own roof. - Andy

SSB 5921 - Creates a Clean Energy Leadership Council to devise clean energy strategy and recommendations and deliver and interim report to the governor by Dec 1, 2009 with a final report completed by Dec 1, 2010.  It directs CTED to consider this clean energy strategy when applying for federal stimulus funds.  It requires the Governor to appoint an existing full-time position as the person who will be the single point of accountability for all energy and climate change initiatives within state agencies, and this person will chair the Evergreen Jobs Leadership Team created in E2SHB 2227.

Comment: Will Washington State finally have its "Energy Czar?" - Andy
 
E2SHB 5854 - Requires improved State Energy Codes for buildings.  Requires better monitoring of energy consumption of individual non-residential buildings and disclosure if requested by potential buyers.  Requires public buildings to set goals and work towards higher efficiency ratings using the existing Energy Star rating system.  Sets minimum energy ratings standards for state-leased buildings.
 
E2SSB 5649 - Regarding Energy Efficiency in Buildings.  Directs the use of some existing LIHEAP and CTED funds, and expected federal stimulus funds that have been committed to increasing energy efficiency and weatherization in low-income homes.  Directs WSU to devise grant and pilot programs that provide community-wide efficiency upgrades.  Authorizes the use of federal stimulus funds to create energy efficiency financing programs to be allocated by CTED.

SSB 5136 - This bill prohibits Home Owner Associations (HOAs) from prohibiting solar modules being placed on members homes and, if subject to architectural review, establishes limits on the design standards that shall be applied.  This bill prevents HOAs from arbitrarily prohibiting solar modules or placing unreasonable conditions upon their installation (such as being covered) so long as they equipment meets current codes.   
 
SB 5107 - Concerning Energy Overlay Zones - Directs state agencies to recognize and support locally created energy overlay zones, including the existing Klickitat County energy overlay zone, which encourages wind and solar development within the area of the county deemed most appropriate.  Encourages more proactive planning for large renewable energy facilities (such as wind farms) by cities and counties.
 
ESHB 2289 - expands the Energy Freedom Program. CTED must appoint a coordinator for state efforts to promote biofuels, energy efficiency, renewable energy, and innovative energy technology markets in the state.  CTED will establish policies for funding projects through the state's Energy Recovery Act Account, and the Clean Energy Strategy (SSB 5921) must be considered.
 
Comment:  It seems like the Energy Recovery Act Account is created in anticipation of federal funds devoted to each state in the Stimulus package.
 
2SHB 1481 - Regarding Electric Vehicles.  Directs the state to install charging outlets in rest stops and state parking and maintenance facilities for electric plug in vehicles, provides tax incentives for electric vehicle infrastructure, and authorizes alternative fuels corridor pilot project.
 
E2SHB 1007 - Energy Trust.  Directs Housing Finance Commission to develop a Sustainable Energy Trust Program to provide financing for qualified energy improvement projects, and may issue bonds for the purpose of financing loans for energy efficiency and renewable energy improvement projects.

Comment:  No state funds are actually designated for this trust, like much of this energy legislation, it seems like we are getting infrastructure in place to attract expected federal stimulus funds. - Andy

All this flurry of council, trust, and account creation without any state general funds being allocated made me double check what info I could find on the federal stimulus package.  At www.energy.gov, I found a breakdown of the funds allocated to each state by the Recovery & Reinvestment Act, which is as follows for our state:
Recovery Act Spending
Weatherization $59,545,074
State Energy Program $60,944,000
Energy Efficiency & Conservation Block Grant Program $56,099,900
Science $123,900,000
Environmental Management $1,960,535,000

Total $2,261,023,974

 
Of note, the $2 billion listed above for "Environmental Management" is money the other states aren't getting and which you don't want your state to get.  That is benign code for "Toxic Nuclear Waste Dump Clean-up;" funds promised for Hanford clean-up that we've been fighting for years to actually receive.

The Governor has sent the Dept of Energy her letter detailing the policies we have in place and how our state would spend the $175 million in energy efficiency and weatherization funds if we got them.  With the new programs in place, we seem to be positioned to make good use of whatever does come back to us from the other Washington.  What will come of it?  I don't know, but I know the results will be more effective if we remain engaged with our state leaders and bureaucrats.