2SHB 1847
In CommitteeHouse
Distributed alt. energy dev.
Prioritizing the development of distributed alternative energy resources in targeted circumstances.
This status may be delayed. See Action History below for the latest updates.
How does a bill become law?
- Introduced: The bill is filed and assigned a number.
- Committee: A subject-matter committee holds hearings, takes public testimony, and decides whether to advance the bill.
- Floor Vote: The full chamber (House or Senate) debates and votes on the bill.
- Opposite Chamber: The bill repeats the committee and floor vote process in the other chamber.
- Governor: The Governor reviews the bill and decides whether to sign or veto it.
- Signed: The bill has been signed into law.
AI Analysis
This bill prioritizes and accelerates development of distributed alternative energy resources — like solar on rooftops, landfills, and farmland (agrivoltaics) — by defining them as state priorities, streamlining environmental review, requiring state agencies to use their land for clean energy, and mandating utilities to include distributed resources in their clean energy plans. It also updates land use and tax rules to support these projects.
- Establishes a list of 'distributed energy priorities' — including solar on landfills, rooftops, parking structures, irrigation canals, and agrivoltaic facilities — that receive streamlined environmental review and siting preference.
- Requires the Department of Commerce to coordinate state agencies to identify state-owned land suitable for clean energy projects and set agency-specific energy production, storage, and transmission targets for 2035.
- Amends the Clean Energy Transformation Act to require utilities to include distributed energy priorities in their clean energy implementation plans and set annual targets (minimum 10% of clean energy target) for such resources.
- Adds agrivoltaic facilities to the definition of 'open space' and 'farm and agricultural land' for property tax purposes, and clarifies that installing such facilities does not trigger reclassification or tax penalties.
- Exempts leasehold interests in public or specified private property used for distributed energy projects from state excise tax during the lease term.
- Streamlines environmental review for clean energy projects by requiring early notification, setting a 24-month deadline for final environmental impact statements, and allowing categorical exemptions for low-impact projects.
Who is affected
- State agencies (e.g., Department of Transportation, Department of Natural Resources, Department of Corrections, etc.) — State agencies must identify suitable state-owned land (e.g., rooftops, parking lots, adjacent land) for clean energy projects by December 1, 2026, and work toward meeting state-set energy production, storage, and transmission capacity targets by 2035.
- Electric utilities — Electric utilities (both investor-owned and consumer-owned) must include distributed energy priorities in their clean energy implementation plans, set annual targets for distributed energy resources (starting at 10% of their clean energy target), and face penalties if they fail to meet requirements.
- Local governments (counties, cities, port districts) — Local governments (counties, cities, port districts) are encouraged to identify and make available suitable local land for distributed energy projects, and may use matching grants to support this work.
- Farmers and agricultural landowners — Farmers and agricultural landowners may install solar panels on working farmland (agrivoltaics) without losing agricultural land classification or triggering tax penalties, as long as the facility meets specific agricultural and ecological criteria.
- Clean energy developers and project owners — Developers and project owners of qualifying distributed energy projects (e.g., solar on landfills, airport land, parking structures, irrigation canals) benefit from streamlined environmental review, tax exemptions on leasehold interests, and priority status in state planning.
Pro/Con Analysis
Stronger case for benefits
Potential Benefits (5)
The bill establishes distributed energy priorities—including agrivoltaics, solar on landfills, and energy storage on contaminated sites—that prioritize low-conflict siting, thereby reducing habitat fragmentation, avoiding farmland conversion, and reusing marginal or degraded lands, which supports ecological resilience and climate mitigation while protecting working lands.
EnvironmentPeopleRef: Sec. 2, RCW 43.21F (new) Sec. 2(1)(a)(viii), (d), (e)The matching grant program for wastewater utilities and local governments to develop DERs on underutilized sites (e.g., landfills, contaminated sites) supports community-scale clean energy access and job creation in historically underserved areas, while reducing reliance on centralized generation and associated transmission risks.
Public SafetyPeopleRef: Sec. 14, new RCW 43.330 (matching grant program); Sec. 2, RCW 43.21F (new) Sec. 2(1)(a)(vi), (vii)By clarifying that agrivoltaic facilities do not trigger reclassification or tax penalties, the bill enables farmers to diversify income through solar leasing while maintaining agricultural land status—supporting rural economic resilience, especially for small- and mid-scale farms facing margin pressures.
Business & EmploymentPeopleRef: Sec. 23, RCW 84.34.020(1)(b) & (2)(i), (ix); Sec. 24, RCW 84.34.070(2)(a)(v)The excise tax exemption on leasehold interests for DER projects (e.g., solar on irrigation canals, airports, landfills) reduces upfront financing costs for developers and public agencies, making it easier for small developers, co-ops, and local governments to deploy distributed resources—particularly beneficial in rural or underserved areas where capital access is limited.
Business & EmploymentPeopleRef: Sec. 22, new RCW 82.29A (leasehold tax exemption); Sec. 2, RCW 43.21F (new) Sec. 2(1)(a)(iii), (v), (vi)The 24-month deadline for final environmental impact statements (FEIS) for clean energy projects, plus categorical exemptions for low-impact DERs, significantly shortens review timelines—reducing project delays and associated emissions from prolonged fossil-based interim generation—while the prioritization of distributed, low-conflict siting (e.g., rooftops, landfills) minimizes ecological disruption.
EnvironmentPeopleRef: Sec. 4, RCW 43.21C.530(3)(a); Sec. 2, RCW 43.21F (new) Sec. 2(1)
Potential Concerns (5)
Utilities must meet a minimum 10% annual target for distributed energy resources (DERs) by the end of their second four-year plan cycle, potentially increasing compliance costs that could be passed to ratepayers; while the bill frames this as supporting distributed resources, the requirement applies uniformly to all utilities over 25,000 customers—including large investor-owned utilities—and the cost impact formula (2% revenue increase cap) favors utilities with higher base revenues, meaning wealthier utilities absorb the cost more easily while lower-revenue utilities may pass more costs to customers.
Business & EmploymentLean industryRef: Sec. 19, RCW 19.405.060(7)(b)The administrative penalty for noncompliance with DER targets ($100/MWh, adjusted for inflation) is deposited into the low-income weatherization account, but the penalty structure applies equally to all utilities regardless of size or profitability, and the revenue cap for compliance (2% increase) effectively caps the amount utilities can recover from customers—meaning utilities may absorb less cost than they impose on customers, shifting net financial burden to ratepayers, especially low- and middle-income households who spend a higher share of income on energy.
FinancialIndustryRef: Sec. 20, RCW 19.405.090(1)(a)(iv)The bill requires utilities to consider “nonwires solutions” (e.g., DERs, demand response) in transmission planning, but this is framed as a planning requirement—not a mandate—and does not create new procurement obligations or funding, so actual deployment of nonwires solutions depends on utility discretion and existing regulatory incentives, limiting real-world impact on grid modernization or job creation.
Business & EmploymentLean industryRef: Sec. 21, RCW 19.280.030(1)(f)(i)The bill imposes penalties on utilities failing to meet DER targets, but allows utilities to avoid penalties by paying an alternative compliance payment—effectively creating a regulatory “opt-out” for utilities that can afford to pay rather than invest in DERs, which disproportionately benefits large, well-capitalized utilities over smaller or consumer-owned utilities with limited capital access.
Business & EmploymentIndustryRef: Sec. 20, RCW 19.405.090(1)(a)(iv)The property tax exemption for agrivoltaic facilities applies only to land already classified as “farm and agricultural land” or “open space,” which excludes small-scale urban or suburban solar installations on residential or mixed-use property—meaning the tax benefit primarily benefits large-scale agricultural operations or developers with access to qualifying land, not everyday homeowners or small businesses seeking rooftop solar.
HousingLean industryRef: Sec. 23, RCW 84.34.020(1)(b) & (2)(i); Sec. 24, RCW 84.34.070(2)(a)(v)
Who Is Most Affected
Large investor-owned utilities (e.g., PSE, Avista) face new DER procurement targets and compliance costs, but benefit from the 2% revenue cap on compliance costs and the alternative compliance payment option—making them net beneficiaries if they can pass limited costs to customers while avoiding capital-intensive DER deployment.
Small-to-mid-scale farmers gain the ability to lease land for agrivoltaics without losing agricultural tax classification or triggering reclassification penalties—providing new income streams and risk mitigation, especially for operations facing margin pressures or climate volatility.
Local governments (counties, cities, ports) gain authority and encouragement to identify and develop DER sites on public land, plus access to matching grants—supporting local clean energy goals and job creation, but without mandatory funding or enforcement, impact will vary by jurisdiction capacity and political will.
Low- and moderate-income households benefit indirectly from reduced emissions, improved air quality, and potential rate stability from distributed generation, but may face higher utility rates if utilities pass compliance costs—especially if DER deployment does not prioritize low-income communities as mandated in the bill.
Clean energy developers (especially small-to-mid-sized firms) benefit from streamlined siting, tax exemptions, and priority status for DER projects—but may face competition from large developers with greater capacity to navigate complex interconnection and permitting processes.