SB6223

SB6223 – Enhances opportunities to participate in community solar projects.
Prime Sponsor – Senator Lovelett (D; 40th District; San Juan County, Whatcom, Skagit)
Current status – Had a hearing in the Senate Committee on Environment, Energy & Technology, January 22nd. Failed to make it out of committee by 2020 cutoff; dead bill.
Next step would be –
Legislative tracking page for the bill.
(HB2248 is a companion bill in the House.)

Summary –
The bill extends the expiring community solar incentive program, retaining many of its provisions, but it would allow subscribers who invest in a project to get net metering payments from their share of it in the same way they would if the panels were on their own roofs. (With net metering, you get a credit at the retail rate on your bill each month for the electricity your share of the project produced, so it’s as if the utility was not charging you for that power, and you can carry that credit forward if you have a surplus and use it to reduce later bills. (The credits are only good until the end of each year, though, so you don’t want to subscribe for more power than you’ll use in that time.)

The bill would also extend the $0.10/kWh production incentive credit that the current program ended with to all the subscribers of projects that had at least 40% of their subscriptions from any combination of low-to-moderate-income households and low-to-moderate-income service providers like housing authorities and food banks. The incentives would last for eight years; subscribers could receive up to 50% of the cost of their share of the project from them. However, the bill would provide an additional $0.10/kWh incentive credit to the low-to-moderate-income households; they would also be eligible to get production incentives for up to 100% of their costs. (These are defined as customers with up to 115% of the household median in their area. Average household median income for the state is about $64,000, though it varies a lot.) (In addition, the bill would also allow utilities that created community solar projects to meet requirements for energy assistance to low-income households under the Clean Energy Transformation Act by not charging for or discounting part or all of the costs of those subscriptions; they could also retain the RECs associated with the production of power from these shares of a project.)

As I read the bill, service providers can subscribe to projects, but aren’t eligible for the additional incentive. One of these organizations has to certify the income status of each of the low-to-moderate income households subscribing, which sounds as if it may not be attractive to people in that category who aren’t currently depending on those services. Projects can’t be bigger than one thousand kilowatts; at least 40% of all the subscriptions have to be for less than twenty kilowatts; and no customer can subscribe to more than 40% of a project. (However, customers can subscribe to more than one project, but not for more than their total estimated annual usage, or for more capacity than 100 kW AC.)

Details –

The bill would stop certifying projects under the current incentive program at the end of June 2020. Projects could apply for precertification under the new program for six years, between the first of July 2020, and the end of June 2026. (They’d get another two years to complete them; but as I read the bill they wouldn’t be eligible for the incentives. The previous two sentences may not be right; I don’t think the bill’s current language is consistent about how the timetables for projects and incentives relate toward the end of the period.)

Utilities can currently receive annual tax credits (up to the greater of 1.5% of their 2014 sales or $250,000) for community solar production incentives if they choose to provide them; for projects under the new program that are certified by the end of June 2026, the bill increases that to the greater of 1.75% of sales or $300,000. Total incentives under the new program are capped at $20 million.