Bill would replace renewable property tax exemptions with new excise tax, create local grant account

Senate staff briefed House Bill 1960 as a comprehensive rewrite of prior renewable energy property tax exemptions and production excise arrangements. Olia Kennedy outlined that the bill would repeal the existing personal property tax exemption and production excise tax and substitute a state renewable energy excise tax and a coordinated local excise option beginning in 2028 for facilities that become operational or are repowered after 01/01/2028.

Under the bill, state excise‑tax rates would vary by technology and nameplate capacity; counties may also impose a local renewable energy excise tax. Seventy‑five percent of state account funds would go to a new local investment distribution grant program administered by Commerce; a tribal climate capacity grant administered by Ecology would be funded up to a stated biennial amount. Staff and presenters noted implementation complexity including model ordinance requirements and timelines for repowering and opt‑ins.

County and utility representatives supported the bill's intent to avoid large local property tax shifts and to create a predictable tax framework; developers and renewable project representatives asked for targeted amendments to address repowering, delayed timelines for late‑stage projects and certainty on eligibility.

Ending: Staff provided a fiscal estimate of revenue shifts beginning FY '29 and noted JLARC reporting requirements; stakeholders urged targeted amendments and more granular county impact analyses before a committee vote.