This bill amends multiple existing Washington statutes to authorize certain public entities to enter contracts that purchase the "capability" of renewable resource or nonemitting electric generation projects in addition to, or instead of, actual project output. It modifies existing law (amending RCW 35.22.705; 35.23.705; 35.27.610; 35.92.420; 35A.80.020; 35A.80.050; 43.52.410; 43.52.595; and 54.16.370) and adds a functional definition in RCW 43.52.410(2) for "purchase of capability." The functional definition allows contracts that may require payments regardless of whether a project is completed, operable, or operating; that remain enforceable despite suspension, interruption, reduction, or curtailment of project output; that prohibit payment reductions (including by offset); and that are not conditioned on the performance or nonperformance of the contracting public entities or related project owners. Legally, this is a statutory change to contracting authority and contract terms for public entities and related agencies (including cities, towns, code cities, counties, public utility districts, joint operating agencies, and operating agencies). It is a procedural and contractual change rather than the creation of a new crime or a change to criminal penalties. The bill references the phrase "using a renewable resource or nonemitting electric generation" and ties that phrase to the definition in RCW 19.405.020; the text of that definition and some other provisions (including part of the amendment to RCW 54.16.370 and the content of a new section) are not included in the provided excerpts, so the precise statutory meaning and any additional limitations or details cannot be confirmed from these facts. Administrative dates shown in the excerpts are: prefiled 12/05/25, read first time 01/12/26, and referred to the Committee on Local Government on or after 01/12/26. No fiscal notes, effective dates, or additional procedural requirements were provided in the available text.

If enacted, local governments and related public agencies would have clearer authority to enter contracts that promise steady payments to renewable or nonemitting generation projects even if a project is delayed, never becomes operable, or produces less power than expected. That makes it more likely developers can get long‑term financing because revenue streams can be locked in, but it also means cities, towns, counties, joint operating agencies, districts, and public utility districts could face firm payment obligations and increased fiscal exposure with limited ability to reduce or offset those payments if project performance or other parties fall short. The groups most affected are the listed municipal and district governments and joint operating agencies, which gain a new tool to support project development but take on higher potential costs and financial risk; private or public project owners and utilities may gain more predictable revenue. Important details are missing here — the exact statutory definition of “renewable or nonemitting” referenced and any limits, oversight, or fiscal safeguards are not included in the provided text, so the scope of risk and any required controls remain uncertain.