Tag Archives: hydroelectric dams

Hawkins’ hydropower tax incentive bill approved by key House committee

The House Finance Committee today has approved Senate Bill 6012, a hydropower tax incentive bill sponsored by Sen. Brad Hawkins that helps acknowledge hydropower’s important role in providing clean energy. Improved tax treatment for hydropower has been a key priority for Hawkins, the mid-Columbia PUDs that he represents, and many other hydropower owners throughout the state.

Senate Bill 6012, related to renewable energy incentives, was approved by the Finance Committee in an amended form. The committee’s changes broaden the eligibility for the tax incentives beyond oil-free technology in an effort to benefit hydroelectric projects owned by municipal utilities, private utilities, and public utilities over an 11-year period, an extension of one additional year. To qualify, the refurbishments would need to provide additional support for the transition toward the Clean Energy Transformation Act.

Hawkins was pleased to advance SB 6012 further in the process. His first version of the bill was introduced last year as an effort to promote equal tax treatment between hydropower clean energy and non-hydro clean energy, such as wind and solar. He narrowed the bill earlier this session to advance it out of the Senate and to keep the bill moving.

“I’m very excited that the bill is advancing and has been broadened to pick up the support of more hydro stakeholders. They clearly sensed that the bill was on the move and wanted to join in with support,” said Hawkins.

The next major step in the legislative process is a vote by the House of Representatives and then what is known as a “concurrence vote” by the Senate. The bill’s revenue impacts – now approximately $5 million per biennium as amended by the House Finance Committee – must also be implemented in the final supplemental operating budget to be approved at the end of session. The Finance Committee chair, Rep. Gael Tarleton (D-36^th District), helped structure the committee amendment with an expanded fiscal benefit.

Hawkins thanks Chair Tarleton and his 12^th District seatmates, Rep. Keith Goehner and Rep. Mike Steele, who both sponsored an oil-free hydro tax incentive bill earlier this session. Hawkins said successful passage of a hydropower tax incentive, if a bill makes it to the governor, will be a “12th District team effort” and added, “We are pushing very hard to get a bill across the finish line.”

Hawkins expressed appreciation for what this bill would signify statewide for hydropower.

“The Clean Energy Transformation Act approved last session was heralded by many of my colleagues and promoted nationally by the governor, but our state cannot achieve such a level of clean energy without our renewable hydropower. Last year’s bill extended tax benefits to all of the other clean energy sources, so I’m thankful my colleagues are recognizing the need to include hydropower as well,” said Hawkins.

Last December, Hawkins was awarded the Washington PUD Association’s “Legislative Champion” Award for securing the passage of SB 5588 (PUD renewable hydrogen) and for his efforts last session toward promoting hydro tax treatment in SB 6012.

Hawkins’ hydropower tax bill approved by Senate

The Washington State Senate tonight approved Senate Bill 6012, a hydropower tax bill sponsored by Sen. Brad Hawkins that helps acknowledge hydropower’s important role in providing clean energy. Improved tax treatment for hydropower has been a key priority for Hawkins and Chelan County Public Utility District, a 12^th District hydropower utility, for over a year.

Senate Bill 6012, passed with a 39-9 vote and included a compromise amendment co-sponsored by Hawkins and Sen. Reuven Carlyle (D-Seattle) to provide an exemption from the state portion of the sales tax for utilities that refurbish their hydroelectric plants with oil-free turbine blades, likely to improve environmental conditions by reducing oil loss into the Columbia River.

Hawkins was thrilled to advance SB 6012. The first version of the bill was introduced last year as an effort to promote equal tax treatment between hydropower clean energy and non-hydro clean energy, such as wind and solar. “Securing passage of a hydropower tax bill from the Senate was a ‘heavy lift’ and probably one of the most challenging efforts of my legislative career,” said Hawkins. “In the end, after over a year of discussions involving different ideas, my colleagues and I were able to come to an agreement in the Senate.”

Hawkins credits the amendment language to Chelan County PUD General Manager Steve Wright and his staff, who have been working alongside Hawkins since the beginning of the 2019 legislative session on the issue of hydropower tax treatment. “Chelan PUD has been with me on this issue since the beginning, and it’s been quite a learning experience for everyone involved. I’m hopeful that maybe we’ve settled on a hydro tax idea that can make its way all the way to the governor’s desk,” Hawkins said.

Hawkins added that SB 6012’s legislative journey is far from over because the bill will also need to clear the House of Representatives. The bill’s revenue impacts – approximately $2 million per year – must also be accounted for in the state supplemental operating budget. Rep. Keith Goehner of the 12^th District introduced an oil-free hydro bill earlier this session to begin the hydro tax conversation in the House of Representatives. Hawkins said successful passage of the idea will be a “12th District effort” because hydropower’s success in the Legislature will require the legislative district team’s full support every step of the way.

“Last year, the Legislature approved a 100-percent clean electricity bill, which was heralded among my colleagues and promoted nationally, but our state can’t achieve such a level of clean energy without our renewable hydropower. Last year’s bill extended tax benefits to all of the other clean energy sources, so I’m thankful my colleagues recognize the need to include hydropower as well,” said Hawkins.

Hawkins to receive Washington PUD Association “Legislative Champion” Award

The Washington Public Utility Districts Association (WPUDA) is recognizing Sen. Brad Hawkins for his efforts and legislative leadership for PUDs throughout the state.

“I was super excited when I got the call from the PUD Association,” said Hawkins, whose 12^th District includes four PUDs (Chelan, Douglas, Grant and Okanogan). “PUDs provide an incredible benefit to our region with their reliable, low-cost services. Locally, our PUDs are superb stewards of public resources and top-notch organizations. I’m honored to be selected as a champion for the PUDs because standing with the PUDs is standing with the people.”

Hawkins will receive the WPUDA’s 2019 Legislative Champion Award during the association’s Annual Conference Banquet on Dec. 5 at the Heathman Lodge in Vancouver. The award recognizes a member of the Washington State Legislature or Congress for leadership in pursuing passage of legislation beneficial to PUDs.

In the award letter from WPUDA, Executive Director George Caan wrote: “This award recognizes your strong commitment to advocating in the 2019 legislative session for policies that enhance the ability of public utility districts to serve the needs of their communities. Your leadership as prime sponsor of Senate Bill 5588, your quick introduction to add hydropower as a qualifying renewable resource in the 100% clean energy bill, and your dedication to pursuing tax parity for hydropower as the prime sponsor and staunch advocate of Senate Bill 6012 was instrumental in paving the way for good policy that supports the foundational principles on which PUDs were created.”

“During the 2019 legislative session Senator Hawkins demonstrated a commitment to advancing good public policy that supports the ability of Washington’s public utility districts to meet the needs of the communities they serve. His work is truly deserving of the WPUDA 2019 Legislative Champion Award.”

George Caan, Executive Director of the Washington PUD Association

“Senator Hawkins is a great friend to public power and Washington state’s PUDs, as well as a skilled and trusted advocate for his 12^th District constituents. He understands the complex issues we face and the value of hydropower in helping to reduce carbon emissions while maintaining reliable service and reasonable electric rates. On behalf of Chelan PUD’s Board of Commissioners and our staff and customer-owners, congratulations to Senator Hawkins.”

Steve Wright, General Manager, Chelan County PUD

“Senator Hawkins is a champion of public power! He really deserves this award. He is always looking out for his constituents and definitely has an impact in the communities he serves. We appreciate Senator Hawkins’ leadership and relentless effort to get our renewable hydrogen bill through the Legislature. Thank you and congratulations Senator Hawkins!”

Gary Ivory, General Manager, Douglas County PUD

Senate committee approves Hawkins bill providing tax parity for hydropower

A recently introduced bill by 12th District Sen. Brad Hawkins that seeks to put hydroelectric power on equal tax footing with other renewable energy sources has cleared a key legislative hurdle.

The Senate Ways and Means Committee yesterday approved Senate Bill 6012. The proposal would add hydropower as a qualifying renewable energy source that receives a renewable energy sales and use tax exemption. The exemption could apply to the state portion of the sales and use taxes for machinery and equipment utilized in the replacement of hydroelectric generating units, which are currently planned or underway for many of the Mid-Columbia public utility district hydroelectric facilities, such as those owned by Chelan, Grant, and Douglas PUDs. The estimated savings in sales taxes could be over $22 million to those PUDs over the 10 years’ length of the tax exemptions in Hawkins’ proposal.

Yesterday, the committee held a public hearing on SB 6012 and approved it with an amendment that hydro operators qualifying for the tax exemption would need to demonstrate that their hydro investments resulted in additional electricity output. During his testimony on the bill, Hawkins told the panel his proposal is about the fundamental issue of fairness and equal treatment.

“Our state prides itself in clean energy and has extended tax preferences to everything but hydropower – wind, solar, geothermal, biomass, tidal, you name it. But not hydropower,” said Hawkins. “Hydropower provides a significant amount of reliability. We can’t even contemplate being a 100 percent clean energy state without hydropower. If we are going to provide tax preferences for all of our other energy sources, then I think the time is now to also provide this tax preference to hydropower.”

Chelan Public Utility District General Manager Steve Wright testified in favor of SB 6012, as did officials with Tacoma Power, International Brotherhood of Electrical Workers, Washington Public Utility Districts Association, Avista, and Cowlitz PUD. Another 41 people signed up in support of the bill but did not testify.

Hawkins’ bipartisan proposal now goes to the Senate Rules Committee, the final hurdle before a full Senate vote. The state operating budget, not yet finalized, would need to consider the bill’s fiscal impact if approved.

(Editor’s note: Here is a link to TVW’s coverage of the testimony on SB 6012 yesterday.)