HB 2103
In CommitteeHouse
Electric/public contracts
Authorizing certain public entities to contract for the capability of renewable or nonemitting electric generation projects.
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 allows Washington’s cities, towns, counties, and special districts to enter long-term contracts to buy *guaranteed electricity-generating capacity*—not just actual electricity—from renewable or zero-carbon power projects. It removes previous restrictions that limited such contracts to older categories of clean energy and allows payments even if a project is delayed, incomplete, or temporarily offline.
- Expands authority for cities, towns, counties, and special districts to contract for *capability* (i.e., guaranteed electricity-generating capacity) of renewable or nonemitting electric generation projects—not just actual electricity output.
- Allows contracts to require payments regardless of whether a project is completed, operational, or producing electricity (e.g., during outages or delays), reducing financial risk for project developers.
- Permits contracts to include fixed or guaranteed payments that cannot be reduced or conditioned on performance, making projects more attractive to investors.
- Updates definitions to align with the *Washington Clean Energy Transformation Act*, using the term *renewable resource or nonemitting electric generation* as defined in RCW 19.405.020 instead of older, narrower categories.
- Clarifies that cities, districts, and agencies can contract with both public and private project owners or utilities for clean energy capacity.
Who is affected
- Cities and towns — Cities of all classes (first, second, and code cities) and towns gain new authority to enter long-term contracts for future electricity supply, including the ability to pay for a project's *capacity* (potential output) even if the project isn’t yet built or temporarily offline.
- Public utility districts and special districts — Public utility districts and other special districts (e.g., irrigation, flood control) can now contract for renewable or nonemitting power projects under the same flexible terms as cities and towns.
- Joint operating agencies — Joint operating agencies (like the Columbia Basin Project or regional power cooperatives) can offer long-term contracts that include payments for *capacity*, not just actual electricity delivered, making it easier to secure financing for new clean energy projects.
- Clean energy project developers and owners — Developers and owners of renewable or nonemitting electric generation projects (e.g., wind, solar, battery storage, nuclear, or other zero-carbon sources) gain more potential buyers for long-term power purchase agreements that include capacity payments.
Pro/Con Analysis
Stronger case for benefits
Potential Benefits (5)
By expanding authority to contract for *capability* (not just output) of renewable or nonemitting projects—including nuclear, large-scale storage, and emerging zero-carbon sources—the bill significantly improves the bankability of clean energy development, accelerating decarbonization of Washington’s grid and supporting the state’s Clean Energy Transformation Act goals.
EnvironmentPeopleRef: Sec. 2–10 (amending RCW 35.22.705, 35.23.705, 35.27.610, 35.92.420, 35A.80.020, 35A.80.050, 43.52.410, 43.52.595, 54.16.370)The ability to offer guaranteed payments for capacity significantly reduces investor risk for clean energy developers, making it easier to finance new projects and attract private capital to Washington—potentially creating jobs in construction, engineering, and operations, especially in rural or economically disadvantaged areas where large-scale projects are sited.
Business & EmploymentPeopleRef: Sec. 2–10 (amending RCW 35.22.705, 35.23.705, 35.27.610, 35.92.420, 35A.80.020, 35A.80.050, 43.52.410, 43.52.595, 54.16.370)Long-term capacity contracts can provide price stability for ratepayers by locking in energy costs over decades, insulating consumers from volatile fossil fuel markets—especially valuable as natural gas prices remain uncertain and carbon compliance costs rise.
FinancialPeopleRef: Sec. 2–10 (amending RCW 35.22.705, 35.23.705, 35.27.610, 35.92.420, 35A.80.020, 35A.80.050, 43.52.410, 43.52.595, 54.16.370)The bill empowers smaller cities, towns, and special districts—including those without existing power utilities—to participate in clean energy procurement on equal footing with larger entities, increasing local control over energy supply and enabling community-led decarbonization.
Local GovernmentPeopleRef: Sec. 2–10 (amending RCW 35.22.705, 35.23.705, 35.27.610, 35.92.420, 35A.80.020, 35A.80.050, 43.52.410, 43.52.595, 54.16.370)Accelerating the transition to zero-carbon electricity reduces air pollution from fossil plants—particularly in environmental justice communities near industrial corridors—potentially lowering rates of asthma, cardiovascular disease, and other pollution-related illnesses over time.
HealthcareLean peopleRef: Sec. 2–10 (amending RCW 35.22.705, 35.23.705, 35.27.610, 35.92.420, 35A.80.020, 35A.80.050, 43.52.410, 43.52.595, 54.16.370)
Potential Concerns (4)
The bill allows public entities to commit to fixed or guaranteed payments for electricity-generating *capability*—even if a project is delayed, incomplete, or offline—shifting financial risk from developers to ratepayers and taxpayers, potentially locking in long-term utility costs that could exceed market rates if clean energy technologies become cheaper faster than anticipated.
FinancialIndustryRef: Sec. 2–10 (amending RCW 35.22.705, 35.23.705, 35.27.610, 35.92.420, 35A.80.020, 35A.80.050, 43.52.410, 43.52.595, 54.16.370)Local governments gain new authority but also new financial obligations without clear fiscal safeguards—e.g., no requirement for cost-benefit analysis, performance benchmarks, or clawbacks for underperformance—increasing risk of stranded assets or budget overruns, especially for smaller or fiscally constrained jurisdictions.
Local GovernmentIndustryRef: Sec. 2–10 (amending RCW 35.22.705, 35.23.705, 35.27.610, 35.92.420, 35A.80.020, 35A.80.050, 43.52.410, 43.52.595, 54.16.370)The bill eliminates performance-based payment conditions and caps on liability, reducing accountability for project developers and potentially distorting investment toward high-capacity, low-variability projects (e.g., nuclear, large-scale storage) over distributed or flexible resources, favoring large developers over smaller or community-scale clean energy ventures.
Business & EmploymentIndustryRef: Sec. 2–10 (amending RCW 35.22.705, 35.23.705, 35.27.610, 35.92.420, 35A.80.020, 35A.80.050, 43.52.410, 43.52.595, 54.16.370)By allowing long-term contracts with fixed payments regardless of project status, the bill may reduce incentives for developers to prioritize grid reliability and resilience—e.g., by favoring centralized generation over distributed or backup resources—potentially increasing systemic vulnerability during extreme weather or supply disruptions.
Public SafetyLean industryRef: Sec. 2–10 (amending RCW 35.22.705, 35.23.705, 35.27.610, 35.92.420, 35A.80.020, 35A.80.050, 43.52.410, 43.52.595, 54.16.370)
Who Is Most Affected
Smaller cities and towns gain new procurement flexibility but may lack the staffing, legal expertise, or credit ratings to negotiate favorable long-term contracts—risking overpayment or project delays. However, they also gain access to clean energy projects previously only available to larger utilities.
Large clean energy developers (e.g., wind, solar, nuclear, battery storage) benefit most directly—fixed capacity payments reduce revenue risk and improve project bankability, attracting institutional investors. Smaller developers may struggle to meet contractual requirements or compete with scale.
Ratepayers and taxpayers face potentially higher long-term costs if contracts are not competitively bid or if technology costs fall faster than contracted rates. However, they also gain price stability and cleaner air, especially in disadvantaged communities near polluting plants.
Public utility districts (PUDs) and special districts gain new authority to invest in clean energy without prior legislative approval for each project, but must now manage long-term financial obligations with limited oversight mechanisms.
Environmental justice communities near fossil fuel plants stand to benefit from reduced pollution and potential local job creation from new clean energy projects—but only if contracts include equity provisions (which this bill does not).