RCW 43.63A.770: Renewable energy development local investment distribution program—Qualifying energy projects—Application. (Effective January 1, 2028.)

(1) The department shall establish the renewable energy development local investment distribution program.

(a) Subject to the availability of amounts appropriated for this purpose, the department must provide funds through the program to each county that hosts a qualifying energy project under this section. The total distribution under this subsection must be in a proportion equal to the amount of state excise tax under RCW 82.96.040 attributable to a county during the previous tax reporting period.

(b)(i) Except for a rural county as defined in RCW 82.14.370, each county must distribute funds received from the department to the local taxing districts within the county in which each qualifying energy project is located, according to the taxing district's relative share of the local property tax levy.

(ii) For distributions for qualifying energy projects in a rural county, as defined in RCW 82.14.370, the rural county may elect to retain the full amount provided by the department, without distribution to local taxing districts.

(2)(a) In order for a county to be eligible to receive funds in a proportion equal to the amount of state excise tax under RCW 82.96.040 attributable to a county, the department must determine that:

(i) The qualifying energy project is located in the county, and the project was operating before January 1, 2029;

(ii) The qualifying energy project is located in the county, and the project submitted a completed application under chapter 43.21C RCW as of November 2025; or

(iii) The qualifying energy project is located in the county, and the county has adopted or substantially adopted the model ordinance published by the department under RCW 43.63A.772. For the purposes of this section, "substantially adopted" means, in the opinion of the department, the county has adopted development regulations that achieve the intent of the model ordinance published by the department, are not more restrictive or burdensome than the model ordinance, and do not unnecessarily impede the development of renewable energy projects within the county.

(b) In order for a county to be determined to be eligible to receive funds under this subsection (2) for a project that applies to and completes the county's process for development approval and files an environmental policy checklist pursuant to chapter 43.21C RCW after January 1, 2028, a county must include in its development regulations that:

(i) A qualifying energy project developer must:

(A) Initiate and document the offer to conduct early and meaningful engagement, before the submission of an environmental policy checklist under chapter 43.21C RCW, related to the qualifying energy project with each federally recognized Indian tribe within whose ceded territory and usual and accustomed area the qualifying energy project is proposed to be located in a manner that recognizes the sovereignty and legal rights of the tribe, with the objective of agreeing on a plan for protecting the archaeological and cultural resources that are potentially affected by the project;

(B) Notify, and offer to meet with, the department of archaeology and historic preservation regarding the geographical location, detailed scope of the proposed project, preliminary application details available to federal, state, or local jurisdictions, and all publicly available materials, with the objective of agreeing on a plan for protecting the archaeological and cultural resources that are potentially affected by the project; and

(C) Survey the proposed project site in a manner that reflects input solicited from the department of archaeology and historic preservation and each federally recognized Indian tribe whose lands described in this section are impacted, if any such input is received by the project developer within 60 days of the notification in (b)(i)(B) of this subsection (2); and

(ii) The county may condition an application by a qualifying energy project developer in accordance with a plan agreement between the qualifying energy project developer and either the federally recognized Indian tribe or the department of archaeology and historic preservation, or both, for protecting the archaeological cultural resources that are potentially affected by the project.

(3) A qualifying energy project may be eligible under this section if the project has received applicable permits under the energy facility site evaluation council process established in chapter 80.50 RCW, the clean energy coordinated permit process pursuant to RCW 43.394.020, or through permit processes overseen by the city or county.

(4)(a) The department must establish an application process for the program.

(b) The department may charge a reasonable fee for administrative costs. Fees must be deposited in the local investment distribution account created in RCW 82.96.080.

(5) Beginning in fiscal year 2029, the legislature intends to dedicate at least 75 percent of the local investment distribution account appropriations each biennium to the funding of the local investment distribution program described in this section. It is the intent of the legislature to apply any balance in the local investment distribution account that is in excess of the eligible expenses for the local investment distribution program under this section first to the tribal capacity grant program in RCW 43.21A.608 and second to the general fund.

(6) Nothing in this section limits the authority of a county or city to administratively object to or legally appeal a qualifying energy project or component thereof or to be eligible for grant funds under this section if they file such an objection or appeal.

(7) For purposes of this section, the following definitions apply:

(a)(i) "Energy storage system" means commercially available technology that is capable of retaining electricity, storing the energy for a period of time, and delivering the electricity after storage by chemical, thermal, mechanical, or other means.

(ii) "Energy storage system" does not include a solar or wind energy production facility.

(b) "Qualifying energy project" means an energy storage system, a wind or solar energy production facility, associated facilities, or any combination thereof, constructed after January 1, 2028.