Energy

HB 1960 aims to encourage renewable energy development in Washington by changing the tax structure for large-scale solar and wind energy facilities. The bill exempts personal property used for renewable energy generation and storage in qualified facilities from property taxation. In its place, it establishes a new annual excise tax on these facilities, with rates varying based on the energy type, operational date, and capacity of the generation and storage systems. This new tax directly affects operators of significant solar and wind energy projects and their associated storage systems across the state.

House Bill 2077 establishes a new tax on certain vehicle manufacturers. This tax applies to profits generated from surplus zero-emission vehicle (ZEV) credits, which are earned when a manufacturer exceeds the state's ZEV sales requirements. The bill requires the Department of Ecology to share manufacturers' ZEV credit activity with the Department of Revenue, and manufacturers must report the prices of ZEV credit transactions. The collected tax revenue is intended to be reinvested into programs that further promote cleaner vehicles.

House Bill 1409 modifies Washington's clean fuels program, directing the Department of Ecology to establish rules that reduce the carbon intensity of transportation fuels. It assigns compliance obligations to fuel providers whose products exceed carbon intensity standards and awards credits to those whose fuels are below standards, allowing these credits to be traded. The bill sets a target to reduce greenhouse gas emissions from transportation fuels to 55 percent below 2017 levels by no earlier than January 1, 2038, following a specified annual reduction schedule. It also outlines penalties for non-compliance with reporting and credit requirements, while exempting exported fuels.

HB 1912 establishes a system for tracking and reporting sales of fuel used for agricultural purposes, which are exempt from the state's Climate Commitment Act. Fuel sellers, including retail stations and suppliers, can register with the Department of Ecology to track and report these exempt sales. Registered sellers must make exempt fuel available at a differential rate or credit purchasers to reflect the absence of associated compliance costs under the climate act. This ensures the agricultural exemption is properly applied and monitored, affecting fuel sellers, suppliers, and agricultural users starting January 1, 2026.