SSB 6171
In CommitteeSenate
Large energy use facilities
Addressing emerging large energy use facilities.
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 establishes new regulatory and financial requirements for large energy users—specifically data centers and cryptocurrency facilities—with a peak demand of 20 megawatts or more. It mandates standardized utility service contracts, annual sustainability and resource-use reporting, a clean energy transition timeline (80% by 2031, 100% by 2036), and a new $0.005/kWh fee to fund low-income energy assistance and higher education programs.
- Defines 'emerging large energy use facilities' as facilities with a peak demand of 20 megawatts or more primarily engaged in data processing (e.g., data centers, cryptocurrency mining).
- Requires electric utilities to develop and submit standardized service tariffs or contracts for these facilities, with strict requirements including 10-year commitments, exit fees, demand curtailment obligations, and full cost recovery.
- Mandates that new or expanded facilities (after July 1, 2026) must use 80% clean energy by 2031 and 100% by 2036, verified through retirement of renewable energy credits.
- Requires facility owners to publish sustainability reports (including energy, water, and refrigerant use) and submit annual reports to the Department of Ecology.
- Imposes a $0.005 per kilowatt-hour fee on these facilities, with proceeds funding low-income energy programs and higher education (AI/quantum training).
- Excludes emerging large energy use facilities from receiving no-cost emissions allowances under the Clean Energy Transformation Act starting in 2027.
Who is affected
- Data center and cryptocurrency facility operators — Data centers and cryptocurrency mining facilities with a peak demand of 20 megawatts or more must comply with new reporting, contract, and clean energy requirements.
- Electric utilities — Electric utilities (investor-owned and consumer-owned) must develop and submit standardized service tariffs or contracts for large energy users, and may face new obligations around cost allocation and grid reliability.
- Low- and moderate-income residents — Low- and moderate-income households benefit from 60% of fees collected being directed to energy assistance, weatherization, and home electrification programs.
- Public colleges and universities — Public higher education institutions receive 40% of fee revenue to support AI, quantum computing, and career services programs.
- General residential and business electricity customers — General electricity customers may face cost shifts if large energy users do not fully cover infrastructure and service costs, though the bill aims to prevent this.
Pro/Con Analysis
Potential Benefits (5)
Creates a $0.005/kWh fee on large energy users, with 60% dedicated to low-income energy assistance (weatherization, home electrification), directly improving affordability and resilience for vulnerable households—especially in rural and urban communities facing high energy burdens.
FinancialPeopleRef: Sec. 9Allocates 40% of fee revenue to public higher education for AI/quantum education and career services—expanding workforce development in high-growth tech fields at Washington’s public institutions, increasing access for first-generation and low-income students.
EducationPeopleRef: Sec. 9Requires demand curtailment obligations and participation in utility demand response programs, improving grid reliability during emergencies and reducing risk of blackouts for all customers—especially critical as data center load grows rapidly.
Public SafetyPeopleRef: Sec. 2(4)(a)(iv), (d)Mandates public sustainability reporting on energy, water, and refrigerant use—enhancing transparency and enabling public oversight of environmental impacts, particularly in water-stressed regions like Eastern Washington.
EnvironmentPeopleRef: Sec. 4(1), (2)Requires prevailing wages and community workforce agreements for behind-the-meter energy projects, supporting union jobs and local hiring—though limited to facility-owned projects and not broader grid infrastructure.
Business & EmploymentLean peopleRef: Sec. 10
Potential Concerns (5)
Mandates 80% clean energy by 2031 and 100% by 2036 for new/expanded facilities, but allows compliance via renewable energy credit (REC) retirement—without requiring direct additionality or new clean energy generation—meaning facilities can meet targets by purchasing existing RECs, potentially without increasing actual clean energy supply or reducing grid emissions.
EnvironmentIndustryRef: Sec. 6(1)(a)Requires annual public sustainability reports—including energy, water, and refrigerant use—but does not mandate third-party verification or enforce penalties for inaccurate reporting, reducing accountability and potentially allowing greenwashing.
Public SafetyIndustryRef: Sec. 4(2)(c)Imposes a 85% demand charge (pay for projected capacity whether used or not), which disproportionately burdens facilities during ramp-downs or outages—common in volatile crypto-mining operations—and may incentivize over-provisioning or grid strain during low-utilization periods.
FinancialIndustryRef: Sec. 2(4)(a)(ii)Requires exit fees equal to five years of minimum bill requirements upon permanent closure, which may discourage facility shutdowns even when uneconomical—potentially prolonging idle, high-water/energy-use facilities and delaying site remediation or repurposing.
Business & EmploymentIndustryRef: Sec. 2(4)(a)(iii)Excludes emerging large energy use facilities from no-cost emissions allowances under the Clean Energy Transformation Act starting in 2027, shifting compliance costs to them—but since these facilities are not small ratepayers, the cost burden falls on a concentrated industry, while utilities may pass residual costs to all customers through rate design.
FinancialIndustryRef: Sec. 7(1)
Who Is Most Affected
Large data center and crypto-mining operators face significant new costs (fee, demand charges, clean energy mandates), but may benefit from long-term grid reliability and predictable service terms. However, smaller operators without credit ratings or scale may struggle to meet collateral and exit-fee requirements, potentially consolidating the market toward large players.
Utilities gain stronger contractual protections and cost-recovery mechanisms, but must invest in new tariff development and interconnection review. The 85% demand charge and exit-fee requirements reduce stranded asset risk, but utilities may face political pushback over perceived favoritism toward large industrial customers.
Low- and moderate-income households benefit from dedicated funding for energy assistance, weatherization, and home electrification—reducing bills and improving health and safety. However, if the fee leads to reduced data center growth, rural communities may see fewer construction jobs and local tax revenue.
Public colleges and universities gain dedicated funding for AI/quantum education and career services, expanding workforce training in high-demand fields. However, this may divert attention from broader K–12 or community college needs, and benefits depend on equitable distribution across institutions.
General residential and business customers benefit from improved grid reliability and reduced risk of cost shifting—especially during peak demand or emergencies. However, if utilities recover full costs from large users, rate stability may improve, but the fee does not directly reduce base electricity rates for households.