HB 2413
In CommitteeHouse
Electric utilities/adequacy
Ensuring that the clean energy transformation act provides the regulatory certainty to allow investments in new energy generation resources sufficient to meet Washington's energy needs.
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 strengthens Washington’s clean energy goals by requiring 100% greenhouse gas-neutral electricity by 2030 and 100% nonemitting/renewable electricity by 2045, while adding flexibility to avoid reliability crises. It creates financial penalties for noncompliance, allows alternative compliance paths, and adds protections for system reliability during rapid energy transitions.
- Requires all electricity sold to Washington retail customers to be greenhouse gas neutral by 2030 and 100% from nonemitting or renewable sources by 2045.
- Establishes a $100 per megawatt-hour administrative penalty (with multipliers: 1.5 for coal, 0.84 for gas peakers, 0.60 for gas combined-cycle) for noncompliance, adjusted for inflation starting in 2027.
- Allows utilities to avoid penalties by making an alternative compliance payment or using up to 20% alternative compliance options, including renewable energy credits, energy transformation projects, or early-action credits for coal phaseouts.
- Creates a resource adequacy crisis declaration process—triggered by reliability metrics from the Northwest Power and Conservation Council—allowing utilities to use up to 30 years of natural gas generation to meet reliability needs without violating clean energy standards.
- Permits temporary exemptions from clean energy standards for consumer-owned utilities under strict conditions, and allows the governor to suspend implementation during emergencies threatening system reliability.
- Requires replacement value compensation for condemned clean energy assets and prohibits new hydroelectric expansions (e.g., new reservoirs) unless tied to pumped storage that meets fish recovery plans.
Who is affected
- Electric utilities — Electric utilities (investor-owned, consumer-owned, and multistate utilities) must meet stricter clean energy targets and may face penalties or alternative compliance options if they fail to comply.
- Electric utility customers — Customers of electric utilities may see changes in electricity rates due to compliance costs, but also benefit from investments in clean energy and reliability improvements; low- and moderate-income households benefit from penalties funding weatherization programs.
- Municipal and public power agencies — Municipal utilities, public utility districts, and irrigation districts may face new constraints on condemning utility assets used for clean energy, and must ensure their service to customers complies with clean energy standards.
- Natural gas power plant operators — Developers and operators of natural gas plants may benefit from temporary exemptions allowing limited gas use during declared resource adequacy crises, but face long-term pressure to transition to cleaner generation.
- Low-income households — Low-income households benefit from administrative penalty funds being directed to weatherization and structural rehabilitation programs that reduce energy costs and improve home safety.
Pro/Con Analysis
Stronger case for benefits
Potential Benefits (5)
Administrative penalties ($100/MWh, adjusted for inflation) are directed into the low-income weatherization and structural rehabilitation assistance account, directly funding energy cost savings and home safety improvements for low- and moderate-income households—many of whom are renter-occupied and cannot access utility ratepayer benefits.
FinancialPeopleRef: Sec. 2(8)The objective, metrics-based resource adequacy crisis declaration process (using NWPCO loss-of-load probability thresholds) helps prevent blackouts during extreme weather or supply disruptions, protecting public health and safety—especially vulnerable populations during heat waves or cold snaps.
Public SafetyPeopleRef: Sec. 2(11)(b)(i)(A)-(C)The crisis exemption is limited to natural gas generation *only* during declared reliability crises and explicitly excludes violation of clean energy standards outside those events—mitigating long-term emissions while providing short-term grid resilience during transition.
Public SafetyPeopleRef: Sec. 2(11)(b)(iii)Allowing up to 20% alternative compliance via energy transformation projects (e.g., electrification of transport, industrial efficiency, heat pumps) creates new markets for clean tech contractors and service providers, supporting local job growth in construction, engineering, and manufacturing.
Business & EmploymentPeopleRef: Sec. 3(1)(b)(iii)Mandating replacement value compensation for condemned clean energy assets (e.g., solar farms, wind turbines) owned by utilities and taken by municipal utilities or PUDs prevents utility asset stranded costs and ensures fair valuation—protecting both utility ratepayers and public power agencies from financial disputes that could delay clean energy deployment.
HousingPeopleRef: Sec. 2(12)
Potential Concerns (5)
Allows utilities to use up to 30 years of natural gas generation during declared resource adequacy crises, which may delay decarbonization and lock in fossil fuel infrastructure, benefiting gas plant operators and their investors while undermining long-term climate goals and potentially delaying clean energy job creation.
Business & EmploymentLean industryRef: Sec. 2(11)(b)(iii)The 30-year exemption for natural gas generation during reliability crises creates a significant loophole that could extend fossil fuel dependence well beyond the 2045 100% clean electricity target, increasing greenhouse gas emissions and air pollution over the long term.
EnvironmentIndustryRef: Sec. 2(11)(b)(iii)The requirement that entities serving premises previously served by an electric utility must comply with clean energy standards—and face penalties for noncompliance—may increase compliance costs for new entrants (e.g., community power agencies, microgrids, or third-party energy providers), potentially consolidating market power among incumbent utilities.
Business & EmploymentLean industryRef: Sec. 2(13)The bill shifts enforcement responsibility for consumer-owned utilities from the Utilities and Transportation Commission (UTC) to county auditors and the Attorney General, potentially creating inconsistent oversight across jurisdictions and increasing administrative burden on local governments without adding new funding.
Local GovernmentLean industryRef: Sec. 2(10)The governor’s emergency authority to suspend or delay clean energy standards during reliability crises—without requiring legislative approval or clear thresholds—creates regulatory uncertainty and risks undermining long-term investment certainty for clean energy developers and financiers.
Public SafetyIndustryRef: Sec. 2(11)(a)
Who Is Most Affected
Low- and moderate-income households benefit significantly: penalty revenue funds weatherization and structural rehabilitation, directly reducing energy bills and improving home safety (e.g., fixing faulty wiring, heating systems, mold). These households are disproportionately exposed to energy cost burdens and substandard housing—making this a targeted, high-impact benefit.
Electric utilities face compliance costs (e.g., reporting, alternative compliance payments, infrastructure upgrades), but gain regulatory certainty and flexibility (e.g., 20% alternative compliance options, crisis exemptions). Investor-owned utilities benefit most from the penalty structure and emergency relief; consumer-owned utilities face added administrative burdens due to auditor-based enforcement.
Natural gas power plant operators gain a 30-year compliance exemption during declared reliability crises—potentially extending the life of peaker and combined-cycle plants beyond 2045. However, long-term pressure to decarbonize remains, and the exemption is narrow and conditional, limiting upside.
Municipal utilities, public utility districts (PUDs), and irrigation districts gain authority to issue temporary exemptions but face new constraints: they must now follow stricter condemnation compensation rules (replacement value) and cannot condemn utility assets used for clean energy without fair compensation—potentially increasing legal and financial risk in asset swaps.
Clean energy developers and contractors benefit from demand for renewable generation, energy storage, and energy transformation projects (e.g., heat pumps, EV charging, industrial efficiency). However, regulatory uncertainty around crisis exemptions and enforcement variability across jurisdictions may increase project risk and financing costs.