This bill creates new sections in chapter 82.16 RCW to establish a state‑authorized program that incentivizes grid‑connected residential battery energy storage. It requires qualified light and power businesses (utilities) with more than 100,000 Washington retail customers to establish a WSU extension energy program–approved battery incentive program (other utilities may opt in). Approved programs must offer either customer time‑of‑use rates that do not reduce export compensation or incorporate customer batteries into a utility‑operated virtual power plant, reserve at least 40% of benefits for low‑ and moderate‑income households and related entities, prohibit leases and resale of customer data beyond program operation, permit utility installer and equipment specifications, and are subject to biennial WSU audits. The Department of Commerce must publish nonbinding virtual power plant recommendations by December 1, 2025. The act creates a capped incentive and certification process for customers: incentive payments may be taken only between July 1, 2026 and June 30, 2036, customers must apply to and be certified by WSU (WSU must notify applicants within 30 days), utilities must respond to certifications within 60 days, and WSU may issue certifications up to a statewide total of $60,000,000 and no more than $10,000,000 per fiscal biennium. Incentive amounts (subject to caps and WSU adjustment) are up to $765 per kilowatt‑hour for low‑ and moderate‑income recipients and up to $450 per kilowatt‑hour for other recipients, each capped at 18 kilowatt‑hours per customer. Recipients must retain records for five years; environmental attributes of the renewable energy system remain with the applicant. The bill text in the provided material is incomplete in places and some program details and referenced sections (including parts of sections 5 and 6 and an expiration referenced in the title) are not visible here. The bill also creates a new tax credit in chapter 82.16 RCW allowing a light and power business a credit against tax for incentive payments made under the act and for related program expenses and upgrades (expenses/upgrades limited to 20% of the total credit in any fiscal year and may include advanced metering infrastructure and virtual power plant subscription fees). Credits are nonrefundable, cannot exceed tax otherwise due, unused expenditures can be carried forward, and improperly claimed excess credits become immediately due with interest (no penalties) assessed retroactive to the claim date. Credits may be earned starting July 1, 2026, not earned after June 30, 2036, not claimed after June 30, 2038, and the tax credit section expires June 30, 2040. The WSU extension energy program and JLARC are given data collection and review roles (JLARC to review the tax preference in 2030 against performance metrics including a 50 MWh installation target and employment growth); certain application materials are not treated as confidential tax information and disclosure rules for names/addresses and credit amounts are specified.

If enacted, the law would make residential battery systems cheaper for people who install them by having utilities pay upfront incentives (larger per-kWh payments for lowand moderate-income households, with per-customer and statewide caps and a limited application window from July 1, 2026 to June 30, 2036). Utilities with more than 100,000 customers would be required to run approved battery incentive programs (others may opt in), and those utilities can claim state tax credits to offset the incentive payments and some program expenses, though expense recovery is limited to 20% of the credit each year and the credits are time-limited. Washington State University’s extension energy program will approve programs, certify customers, audit utilities every two years, collect participant data, and can suspend credits or payments for noncompliance; recipients must keep records five years and some participant information is protected from public disclosure. The biggest effects fall on large utilities (new program design, application approvals, audits, recordkeeping, and managing tax-credit claims) and on homeowners, nonprofits, tribes, and public entities that may get lower installation costs but must follow application, income-verification, and usage rules (leases are not allowed and systems must be permanently installed). Utilities face administrative and compliance costs and a risk of having credits or payments clawed back with interest if overclaimed; WSU and JLARC gain new oversight duties. Important details are missing from the provided text—notably parts of the tax-credit mechanics, the referenced “amount authorized for credit,” and an expiration provision mentioned in the bill title—so some implementation and funding specifics remain unclear.