HB1619

HB1619 – Allows gas utilities to develop a wide range of renewable energy projects, and creates a tax exemption for renewable gas.
Prime Sponsor – Representative Fey (D; 17th District; Tacoma) (Co-Sponsors Duerr and Wylie – Ds)
Current status – Had a hearing in the House Committee on Environment and Energy February 6th. Still in committee by cutoff.
Next step would be – Dead bill? (May be NTIB…)
Legislative tracking page for the bill.

Comments –
SB5659 adds some provisions to the ones in this bill.

Summary –
The bill would authorize gas companies to develop projects that reduce greenhouse gas emissions from the combustion of natural gas delivered to in-state customers and from electricity generated from fossil fuels that’s used by retail electric customers in the state. They could seek to recover the cost of those investments in their rates through the UTC. Those investments might include residential and commercial rooftop solar, including battery storage and supplemental solar; community solar projects designed to offset carbon associated with the use of conventional natural gas; ground source heat pumps for district heating and targeted load reduction in new buildings used as a strategy for complying with the State’s cap and trade requirements; renewable gaseous fuels projects, including renewable natural gas and green electrolytic hydrogen, along with associated facility and pipeline infrastructure, upgrades, and improvements for industrial and heavy duty transportation; carbon capture and sequestration projects associated with natural gas projects and facilities; and research, development, and pilot efforts pertaining to nonemitting natural gas equipment and technologies.

The bill would also create a ten year sales and use tax exemption for machinery and equipment used for generating renewable natural gas or connecting it to a pipeline. (The exemption would also apply to labor and services for installing that.) Renewable natural gas would be defined as what’s generated from “the decomposition of organic material in landfills, wastewater treatment facilities, and anaerobic digesters.”

It would authorize gas companies to propose renewable natural gas programs for the UTC’s review. If approved, a company could supply renewable natural gas as part of the natural gas sold or delivered to their retail customers. The environmental attributes of that renewable natural gas would have to be retired using procedures established by the Commission, though it could also approve procedures for banking and transferring those. (The Commission could also approve the inclusion of other sources of gas if the gas was produced without consumption of fossil fuels. I think this probably includes green hydrogen.)