title: RCW 19.390.010

text:
It is the intent of the legislature to ensure that competition beneficial to consumers in health care markets across Washington remains vigorous and robust. The legislature supports that intent through this chapter, which provides the attorney general with notice of all material health care transactions in this state so that the attorney general has the information necessary to determine whether an investigation under the consumer protection act is warranted for potential anticompetitive conduct and consumer harm. This chapter is intended to supplement the federal Hart-Scott-Rodino antitrust improvements act, Title 15 U.S.C. Sec. 18a, by requiring notice of transactions not reportable under Hart-Scott-Rodino reporting thresholds and by providing the attorney general with a copy of any filings made pursuant to the Hart-Scott-Rodino act.
[ 2019 c 267 s 1.]

catchline: Intent.


doc_type: statute

jurisdiction: wa

title: RCW 19.390.020

text:
The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
(1) "Acquisition" means an agreement, arrangement, or activity the consummation of which results in a person acquiring directly or indirectly the control of another person, and includes the acquisition of voting securities and noncorporate interests, such as assets, capital stock, membership interests, or equity interests.
(2) "Affiliated with" means a person that directly, or indirectly through one or more intermediaries, controls or has ownership of, is controlled or owned by, or is under common control or ownership of a person.
(3) "Carrier" means the same as in RCW 48.43.005.
(4) "Contracting affiliation" means the formation of a relationship between two or more entities that permits the entities to negotiate jointly with carriers or third-party administrators over rates for professional health care services, or for one entity to negotiate on behalf of the other entity with carriers or third-party administrators over rates for professional health care services. "Contracting affiliation" does not include arrangements among entities under common ownership.
(5) "Control" or "controlling interest" of a person means the direct or indirect:
(a) Ownership of, or power to vote on, a class of voting securities or voting interests;
(b) Ownership of capital, profits, or beneficial interests; or
(c) Power to elect executive officers, managers, directors, trustees, or other persons exercising managerial authority.
(6) "Domestic for-profit corporation" has the same meaning as in RCW 24.03A.010.
(7) "Domestic unincorporated entity" has the same meaning as in RCW 24.03A.010.
(8) "Entity" has the same meaning as in RCW 24.03A.010.
(9) "Foreign for-profit corporation" has the same meaning as in RCW 24.03A.010.
(10) "Foreign nonprofit corporation" has the same meaning as in RCW 24.03A.010.
(11) "Foreign unincorporated entity" has the same meaning as in RCW 24.03A.010.
(12) "Health care services" means medical, surgical, chiropractic, hospital, optometric, podiatric, pharmaceutical, ambulance, mental health, substance use disorder, therapeutic, preventative, diagnostic, curative, rehabilitative, palliative, custodial, and any other services relating to the prevention, cure, or treatment of illness, injury, or disease.
(13) "Health care services revenue" means the total revenue received for health care services in the previous twelve months.
(14) "Health maintenance organization" means an organization receiving a certificate of registration pursuant to chapter 48.46 RCW which provides comprehensive health care services to enrolled participants of such organization on a group practice per capita prepayment basis or on a prepaid individual practice plan, except for an enrolled participant's responsibility for copayments and deductibles, either directly or through contractual or other arrangements with other institutions, entities, or persons, and which qualifies as a health maintenance organization pursuant to RCW 48.46.030 and 48.46.040.
(15) "Hospital" means a facility licensed under chapter 70.41 or 71.12 RCW.
(16) "Hospital system" means:
(a) A parent corporation of one or more hospitals and any entity affiliated with such parent corporation through ownership or control; or
(b) A hospital and any entity affiliated with such hospital through ownership.
(17) "Merger" means a consolidation of two or more organizations, including two or more organizations joining through a common parent organization or two or more organizations forming a new organization, but does not include a corporate reorganization.
(18) "Nonprofit corporation" has the same meaning as in RCW 24.03A.010.
(19) "Person" means, where applicable, natural persons, corporations, trusts, and partnerships.
(20) "Provider" means a natural person who practices a profession identified in RCW 18.130.040.
(21) "Provider organization" means a corporation, partnership, business trust, association, or organized group of persons, whether incorporated or not, which is in the business of health care services delivery or management and that represents seven or more health care providers in contracting with carriers or third-party administrators for the payments of health care services. A "provider organization" includes, but is not limited to, physician organizations, physician-hospital organizations, independent practice associations, provider networks, and accountable care organizations.
(22) "Third-party administrator" means an entity that administers payments for health care services on behalf of a client in exchange for an administrative fee.
[ 2026 c 222 s 1; 2019 c 267 s 2.]

license: public-domain-government-work

rule_set: Revised Code of Washington

catchline: Definitions.

code: rcw

unit: section

court: Washington State Legislature


title: RCW 19.390.030

text:
(1) Not less than sixty days prior to the effective date of any transaction that results in a material change, the parties to the transaction shall submit written notice to the attorney general of such material change.
(2) For the purposes of this section, a material change includes:
(a) A merger, acquisition, or contracting affiliation between two or more entities of the following types:
(i) Hospitals;
(ii) Hospital systems; or
(iii) Provider organizations;
(b) Transactions involving any entity or person that result in a change of majority ownership or control of a hospital, hospital system, or provider organization including, but not limited to, a merger, acquisition, or contracting affiliation;
(c) Acquisitions, sales, or transfers of the majority of the assets of a hospital, hospital system, or provider organization including, but not limited to, real property sale and leaseback transactions; or
(d) A conversion of a hospital, hospital system, or provider organization from a nonprofit corporation or a foreign nonprofit corporation to:
(i) A domestic or foreign for-profit corporation; or
(ii) A domestic or foreign unincorporated entity.
(3) A material change includes proposed changes identified in subsection (2)(a) of this section between a Washington entity and an out-of-state entity where the out-of-state entity generates $10,000,000 or more in health care services revenue from patients residing in Washington state, and the entities are of the types identified in subsection (2)(a) of this section. Any party to a material change that is licensed or operating in Washington state shall submit a notice as required under this section.
(4) For purposes of subsection (2) of this section, a transaction between two or more hospitals, hospital systems, or provider organizations only qualifies as a material change if the hospitals, hospital systems, or provider organizations did not previously have common ownership or a contracting affiliation.
(5) For purposes of this section, a notice shall be considered filed upon filing of the written notice pursuant to RCW 19.390.040 with payment of the filing fee required by RCW 19.390.035.
[ 2026 c 222 s 2; 2019 c 267 s 3.]

catchline: Notice of material change.


title: RCW 19.390.035

text:
(1) The attorney general shall assess and collect a filing fee from parties required to file a written notice under RCW 19.390.030, except as provided in subsection (2) of this section. Only one filing fee is required in connection with a transaction, payable by any party to the transaction.
(a) The filing fee must be assessed on the basis of the anticipated value of the transaction in Washington, under the following schedule:
(i) For transactions up to $1,000,000, a fee of $2,500;
(ii) For transactions over $1,000,000 and up to $4,000,000, a fee of $7,500;
(iii) For transactions over $4,000,000 and up to $10,000,000, a fee of $15,000;
(iv) For transactions over $10,000,000 and up to $20,000,000, a fee of $20,000; and
(v) For transactions over $20,000,000, a fee of $25,000.
(b) For contracting affiliations involving no transfer of assets, the filing fee is $2,500.
(2) Subsection (1) of this section does not apply to the parties of a contracting affiliation between a state-owned or state-operated entity and a public hospital district as defined in RCW 70.44.007.
(3) The attorney general may index the filing fee amounts provided in this section through rule making, in accordance with the United States bureau of labor statistics consumer price index for medical care.
(4) All receipts from filing fees collected under this section must be deposited in the antitrust revolving fund created in RCW 43.10.215.
[ 2026 c 222 s 3.]

catchline: Notice of material change—Filing fee.


title: RCW 19.390.037

text:
The attorney general shall provide notice to the secretary of state when any entity involved in a transaction involving a material change under RCW 19.390.030(2) (a), (b), or (d) is a nonprofit corporation.
[ 2026 c 222 s 7.]

catchline: Notice of material change—Nonprofit corporation.


title: RCW 19.390.040

text:
(1) The written notice provided by the parties, as required by RCW 19.390.030, must include:
(a) The names of the parties and their current business addresses;
(b) The name of any person or entity with a majority ownership, investment, or controlling interest of any party;
(c) Identification of all locations where health care services are currently provided by each party;
(d) A brief description of the nature and purpose of the proposed material change; and
(e) The anticipated effective date of the proposed material change.
(2) The parties that filed a written notice under subsection (1) of this section shall, within 30 days of the completion of the transaction, submit written notice to the attorney general that the transaction has been completed, whether consummated, enjoined, or abandoned.
(3) Nothing in this section prohibits the parties to a material change from voluntarily providing additional information to the attorney general.
[ 2026 c 222 s 4; 2019 c 267 s 4.]

catchline: Notice requirements.


title: RCW 19.390.050

text:
(1) The attorney general shall make any requests for additional information from the parties under RCW 19.86.110 within thirty days of the date notice is received under RCW 19.390.030 and 19.390.040.
(2) If the attorney general requests additional information pursuant to subsection (1) of this section, the transaction between the parties subject to the request may not proceed until 30 days after the parties have certified they are in substantial compliance with the attorney general's request. Any subsequent requests for additional information from the attorney general shall not extend the 30-day waiting period for the parties to close the transaction.
(3) Nothing in this section precludes the attorney general from conducting an investigation or enforcing state or federal antitrust laws at a later date.
[ 2026 c 222 s 5; 2019 c 267 s 5.]

catchline: Requests for additional information.


title: RCW 19.390.060

text:
A provider or provider organization that provides a copy of a Hart-Scott-Rodino form to the attorney general pursuant to RCW 19.420.020 satisfies the notice requirement under RCW 19.390.040.
[ 2025 c 7 s 9; 2019 c 267 s 6.]
Notes:
Construction—2025 c 7: See RCW 19.420.910.

catchline: Notification—Copy to attorney general—Hart-Scott-Rodino act.


title: RCW 19.390.070

text:
(1) Information submitted to the attorney general pursuant to this chapter shall be maintained and used by the attorney general in the same manner and under the same protections as provided in RCW 19.86.110, except as otherwise specified in subsection (2) of this section. The information, including documentary material, answers to written interrogatories, or transcripts of oral testimony produced pursuant to a demand or copies, must not, unless otherwise ordered by a superior court for good cause shown, be produced for inspection or copying pursuant to chapter 42.56 RCW by the person who produced the material, answered written interrogatories or gave oral testimony. Nothing in this chapter limits the attorney general's authority under RCW 19.86.110 or 19.86.115. Nothing in this chapter expands the attorney general's authority under chapter 19.86 RCW, federal or state antitrust law, or any other law. Failure to comply with this chapter does not provide a private cause of action.
(2) The attorney general shall make public on its website a quarterly notice of pending and completed transactions that lists the information submitted by parties pursuant to RCW 19.390.040 (1) and (2).
[ 2026 c 222 s 6; 2019 c 267 s 7.]

catchline: Materials submitted to the attorney general.


title: RCW 19.390.080

text:
Any person who fails to comply with any provision of this chapter is liable to the state for a civil penalty of not more than two hundred dollars per day for each day during which such person is in violation of this chapter.
[ 2019 c 267 s 8.]

catchline: Penalty for noncompliance.


title: RCW 19.390.090

text:
The notice requirement in RCW 19.390.030 applies to transactions with an anticipated effective date on or after January 1, 2020.
[ 2019 c 267 s 9.]

catchline: Notice requirement—Effective date for transactions.


title: RCW 19.395.010

text:
(1) Any financial institution which issues payment cards shall list a phone number on its website for cardholders and merchants to report suspected incidents in which payment cards are used for fraud or payment cards have been stolen.
(2) Any financial institution which issues payment cards shall have employees or contractors available during business hours to receive phone calls for the purpose of providing assistance to cardholders or merchants regarding suspected incidents in which payment cards are used for fraud or payment cards have been stolen. The use of an automated electronic or interactive voice response system may not substitute for the assistance of a live person for these types of suspected incidents.
(3) As used in this section, "payment cards" has the meaning defined in RCW 9A.56.280.
[ 2019 c 186 s 1.]

catchline: Requirements for financial institutions.


title: RCW 19.40.011

text:
As used in this chapter:
(1) "Affiliate" means:
(a) A person that directly or indirectly owns, controls, or holds with power to vote, twenty percent or more of the outstanding voting securities of the debtor, other than a person that holds the securities:
(i) As a fiduciary or agent without sole discretionary power to vote the securities; or
(ii) Solely to secure a debt, if the person has not in fact exercised the power to vote;
(b) A corporation twenty percent or more of whose outstanding voting securities are directly or indirectly owned, controlled, or held with power to vote, by the debtor or a person that directly or indirectly owns, controls, or holds with power to vote, twenty percent or more of the outstanding voting securities of the debtor, other than a person that holds the securities:
(i) As a fiduciary or agent without sole discretionary power to vote the securities; or
(ii) Solely to secure a debt, if the person has not in fact exercised the power to vote;
(c) A person whose business is operated by the debtor under a lease or other agreement, or a person substantially all of whose assets are controlled by the debtor; or
(d) A person that operates the debtor's business under a lease or other agreement or controls substantially all of the debtor's assets.
(2) "Asset" means property of a debtor, but the term does not include:
(a) Property to the extent it is encumbered by a valid lien; or
(b) Property to the extent it is generally exempt under nonbankruptcy law.
(3) "Claim," except as used in "claim for relief," means a right to payment, whether or not the right is reduced to judgment, liquidated, unliquidated, fixed, contingent, matured, unmatured, disputed, undisputed, legal, equitable, secured, or unsecured.
(4) "Creditor" means a person that has a claim.
(5) "Debt" means liability on a claim.
(6) "Debtor" means a person that is liable on a claim.
(7) "Electronic" means relating to technology having electrical, digital, magnetic, wireless, optical, electromagnetic, or similar capabilities.
(8) "Insider" includes:
(a) If the debtor is an individual:
(i) A relative of the debtor or of a general partner of the debtor;
(ii) A partnership in which the debtor is a general partner;
(iii) A general partner in a partnership described in (a)(ii) of this subsection; or
(iv) A corporation of which the debtor is a director, officer, or person in control;
(b) If the debtor is a corporation:
(i) A director of the debtor;
(ii) An officer of the debtor;
(iii) A person in control of the debtor;
(iv) A partnership in which the debtor is a general partner;
(v) A general partner in a partnership described in (b)(iv) of this subsection; or
(vi) A relative of a general partner, director, officer, or person in control of the debtor;
(c) If the debtor is a partnership:
(i) A general partner in the debtor;
(ii) A relative of a general partner in, or a general partner of, or a person in control of the debtor;
(iii) Another partnership in which the debtor is a general partner;
(iv) A general partner in a partnership described in (c)(iii) of this subsection; or
(v) A person in control of the debtor;
(d) An affiliate, or an insider of an affiliate as if the affiliate were the debtor; and
(e) A managing agent of the debtor.
(9) "Lien" means a charge against or an interest in property to secure payment of a debt or performance of an obligation, and includes a security interest created by agreement, a judicial lien obtained by legal or equitable process or proceedings, a common-law lien, or a statutory lien.
(10) "Organization" means a person other than an individual.
(11) "Person" means an individual, estate, partnership, association, trust, business or nonprofit entity, public corporation, government or governmental subdivision, agency, or instrumentality, or other legal or commercial entity.
(12) "Property" means anything that may be the subject of ownership.
(13) "Reasonably equivalent value" includes, without limitation, a transfer or an obligation that is within the range of values for which the transferor would have sold the property or services to, or purchased the property or services from, the transferee in an arm's length transaction at market rates.
(14) "Record" means information that is inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in perceivable form.
(15) "Relative" means an individual related by consanguinity within the third degree as determined by the common law, a spouse, or an individual related to a spouse within the third degree as so determined, and includes an individual in an adoptive relationship within the third degree.
(16) "Sign" means, with present intent to authenticate or adopt a record:
(a) To execute or adopt a tangible symbol; or
(b) To attach to or logically associate with the record an electronic symbol, sound, or process.
(17) "Transfer" means every mode, direct or indirect, absolute or conditional, voluntary or involuntary, of disposing of or parting with an asset or an interest in an asset, and includes payment of money, release, lease, license, and creation of a lien or other encumbrance.
(18) "Valid lien" means a lien that is effective against the holder of a judicial lien subsequently obtained by legal or equitable process or proceedings.
[ 2017 c 57 s 1; 1987 c 444 s 1.]
Notes:
Effective date—1987 c 444: "This act shall take effect July 1, 1988." [ 1987 c 444 s 16.]


title: RCW 19.40.021

text:
(1) A debtor is insolvent if, at a fair valuation, the sum of the debtor's debts is greater than the sum of the debtor's assets.
(2) A debtor that is generally not paying the debtor's debts as they become due other than as a result of a bona fide dispute is presumed to be insolvent. The presumption imposes on the party against which the presumption is directed the burden of proving that the nonexistence of insolvency is more probable than its existence.
(3) Assets under this section do not include property that has been transferred, concealed, or removed with intent to hinder, delay, or defraud creditors or that has been transferred in a manner making the transfer voidable under this chapter.
(4) Debts under this section do not include an obligation to the extent it is secured by a valid lien on property of the debtor not included as an asset.
[ 2017 c 57 s 2; 1987 c 444 s 2.]
Notes:
Effective date—1987 c 444: See note following RCW 19.40.011.

catchline: Insolvency.


title: RCW 19.40.031

text:
(1) Value is given for a transfer or an obligation if, in exchange for the transfer or obligation, property is transferred or an antecedent debt is secured or satisfied, but value does not include an unperformed promise made otherwise than in the ordinary course of the promisor's business to furnish support to the debtor or another person.
(2) For the purposes of RCW 19.40.041(1)(b) and 19.40.051, a person gives a reasonably equivalent value if the person acquires an interest of the debtor in an asset pursuant to a regularly conducted, noncollusive foreclosure sale or execution of a power of sale for the acquisition or disposition of the interest of the debtor upon default under a mortgage, deed of trust, or security agreement.
(3) A transfer is made for present value if the exchange between the debtor and the transferee is intended by them to be contemporaneous and is in fact substantially contemporaneous.
[ 2017 c 57 s 3; 1987 c 444 s 3.]
Notes:
Effective date—1987 c 444: See note following RCW 19.40.011.

catchline: Value.


title: RCW 19.40.041

text:
(1) A transfer made or obligation incurred by a debtor is voidable as to a creditor, whether the creditor's claim arose before or after the transfer was made or the obligation was incurred, if the debtor made the transfer or incurred the obligation:
(a) With actual intent to hinder, delay, or defraud any creditor of the debtor; or
(b) Without receiving a reasonably equivalent value in exchange for the transfer or obligation, and the debtor:
(i) Was engaged or was about to engage in a business or a transaction for which the remaining assets of the debtor were unreasonably small in relation to the business or transaction; or
(ii) Intended to incur, or believed or reasonably should have believed that the debtor would incur, debts beyond the debtor's ability to pay as they became due.
(2) In determining actual intent under subsection (1)(a) of this section, consideration may be given, among other factors, to whether:
(a) The transfer or obligation was to an insider;
(b) The debtor retained possession or control of the property transferred after the transfer;
(c) The transfer or obligation was disclosed or concealed;
(d) Before the transfer was made or obligation was incurred, the debtor had been sued or threatened with suit;
(e) The transfer was of substantially all the debtor's assets;
(f) The debtor absconded;
(g) The debtor removed or concealed assets;
(h) The value of the consideration received by the debtor was reasonably equivalent to the value of the asset transferred or the amount of the obligation incurred;
(i) The debtor was insolvent or became insolvent shortly after the transfer was made or the obligation was incurred;
(j) The transfer occurred shortly before or shortly after a substantial debt was incurred; and
(k) The debtor transferred the essential assets of the business to a lienor that transferred the assets to an insider of the debtor.
(3) A creditor making a claim for relief under subsection (1) of this section has the burden of proving the elements of the claim for relief by a preponderance of the evidence.
[ 2017 c 57 s 4; 1987 c 444 s 4.]
Notes:
Effective date—1987 c 444: See note following RCW 19.40.011.

catchline: Transfers voidable as to present and future creditors.


title: RCW 19.40.051

text:
(1) A transfer made or obligation incurred by a debtor is voidable as to a creditor whose claim arose before the transfer was made or the obligation was incurred if the debtor made the transfer or incurred the obligation without receiving a reasonably equivalent value in exchange for the transfer or obligation and the debtor was insolvent at that time or the debtor became insolvent as a result of the transfer or obligation.
(2) A transfer made by a debtor is voidable as to a creditor whose claim arose before the transfer was made if the transfer was made to an insider for an antecedent debt, the debtor was insolvent at that time, and the insider had reasonable cause to believe that the debtor was insolvent.
(3) Subject to RCW 19.40.021(2), a creditor making a claim for relief under subsection (1) or (2) of this section has the burden of proving the elements of the claim for relief by a preponderance of the evidence.
[ 2017 c 57 s 5; 1987 c 444 s 5.]
Notes:
Effective date—1987 c 444: See note following RCW 19.40.011.

catchline: Transfers voidable as to present creditors.


title: RCW 19.40.061

text:
For the purposes of this chapter:
(1) A transfer is made:
(a) With respect to an asset that is real property other than a fixture, but including the interest of a seller or purchaser under a contract for the sale of the asset, when the transfer is so far perfected that a good-faith purchaser of the asset from the debtor against which applicable law permits the transfer to be perfected cannot acquire an interest in the asset that is superior to the interest of the transferee; and
(b) With respect to an asset that is not real property or that is a fixture, when the transfer is so far perfected that a creditor on a simple contract cannot acquire a judicial lien otherwise than under this chapter that is superior to the interest of the transferee;
(2) If applicable law permits the transfer to be perfected as provided in subsection (1) of this section and the transfer is not so perfected before the commencement of an action for relief under this chapter, the transfer is deemed made immediately before the commencement of the action;
(3) If applicable law does not permit the transfer to be perfected as provided in subsection (1) of this section, the transfer is made when it becomes effective between the debtor and the transferee;
(4) A transfer is not made until the debtor has acquired rights in the asset transferred; and
(5) An obligation is incurred:
(a) If oral, when it becomes effective between the parties; or
(b) If evidenced by a record, when the record signed by the obligor is delivered to or for the benefit of the obligee.
[ 2017 c 57 s 6; 1987 c 444 s 6.]
Notes:
Effective date—1987 c 444: See note following RCW 19.40.011.

catchline: When transfer is made or obligation is incurred.


title: RCW 19.40.071

text:
(1) In an action for relief against a transfer or obligation under this chapter, a creditor, subject to the limitations in RCW 19.40.081, may obtain:
(a) Avoidance of the transfer or obligation to the extent necessary to satisfy the creditor's claim;
(b) An attachment or other provisional remedy against the asset transferred or other property of the transferee if available under applicable law; and
(c) Subject to applicable principles of equity and in accordance with applicable rules of civil procedure:
(i) An injunction against further disposition by the debtor or a transferee, or both, of the asset transferred or of other property;
(ii) Appointment of a receiver to take charge of the asset transferred or of other property of the transferee; or
(iii) Any other relief the circumstances may require.
(2) If a creditor has obtained a judgment on a claim against the debtor, the creditor, if the court so orders, may levy execution on the asset transferred or its proceeds.
[ 2017 c 57 s 7; 2000 c 171 s 54; 1987 c 444 s 7.]
Notes:
Effective date—1987 c 444: See note following RCW 19.40.011.

catchline: Remedies of creditors.


title: RCW 19.40.081

text:
(1) A transfer or obligation is not voidable under RCW 19.40.041(1) or 19.40.051(1) against a person that took in good faith and for a reasonably equivalent value whether or not given to the debtor or against any subsequent transferee or obligee.
(2) To the extent a transfer is avoidable in an action by a creditor under RCW 19.40.071(1)(a), the following rules apply:
(a) Except as otherwise provided in this section, the creditor may recover judgment for the value of the asset transferred, as adjusted under *subsection (c) of this section, or the amount necessary to satisfy the creditor's claim, whichever is less. The judgment may be entered against:
(i) The first transferee of the asset or the person for whose benefit the transfer was made; or
(ii) An immediate or mediate transferee of the first transferee, other than:
(A) A good-faith transferee that took for value; or
(B) An immediate or mediate good-faith transferee of a person described in (a)(ii)(A) of this subsection.
(b) Recovery pursuant to RCW 19.40.071 (1)(a) or (2) or from the asset transferred or its proceeds, by levy or otherwise, is available only against a person described in (a)(i) or (ii) of this subsection.
(3) If the judgment under subsection (2) of this section is based upon the value of the asset transferred, the judgment must be for an amount equal to the value of the asset at the time of the transfer, subject to adjustment as the equities may require.
(4) Notwithstanding voidability of a transfer or an obligation under this chapter, a good-faith transferee or obligee is entitled, to the extent of the value given the debtor for the transfer or obligation, to:
(a) A lien on or a right to retain an interest in the asset transferred;
(b) Enforcement of an obligation incurred; or
(c) A reduction in the amount of the liability on the judgment.
(5) A transfer is not voidable under RCW 19.40.041(1)(b) or 19.40.051 if the transfer results from:
(a) Termination of a lease upon default by the debtor when the termination is pursuant to the lease and applicable law; or
(b) Enforcement of a security interest in compliance with Article 9A of Title 62A RCW, other than acceptance of collateral in full or partial satisfaction of the obligation it secures.
(6) A transfer is not voidable under RCW 19.40.051(2):
(a) To the extent the insider gave new value to or for the benefit of the debtor after the transfer was made, except to the extent the new value was secured by a valid lien;
(b) If made in the ordinary course of business or financial affairs of the debtor and the insider; or
(c) If made pursuant to a good faith effort to rehabilitate the debtor and the transfer secured present value given for that purpose as well as an antecedent debt of the debtor.
(7) The following rules determine the burden of proving matters referred to in this section:
(a) A party that seeks to invoke subsection (1), (4), (5), or (6) of this section has the burden of proving the applicability of that subsection.
(b) Except as otherwise provided in (c) and (d) of this subsection, the creditor has the burden of proving each applicable element of subsection (2) or (3) of this section.
(c) The transferee has the burden of proving the applicability to the transferee of subsection (2)(a)(ii)(A) or (B) of this subsection.
(d) A party that seeks adjustment under subsection (3) of this section has the burden of proving the adjustment.
(8) The standard of proof required to establish matters referred to in this section is preponderance of the evidence.
[ 2017 c 57 s 8; 2001 c 32 s 1; 1987 c 444 s 8.]
Notes:
*Reviser's note: The reference to "subsection (c) of this section" appears to be erroneous. Subsection (3) was apparently intended.
Effective date—2001 c 32: See note following RCW 62A.9A-102.
Effective date—1987 c 444: See note following RCW 19.40.011.

catchline: Defenses, liability, and protection of transferee.


title: RCW 19.40.091

text:
A claim for relief with respect to a transfer or obligation under this chapter is extinguished unless action is brought:
(1) Under RCW 19.40.041(1)(a), not later than four years after the transfer was made or the obligation was incurred or, if later, not later than one year after the transfer or obligation was or could reasonably have been discovered by the claimant;
(2) Under RCW 19.40.041(1)(b) or 19.40.051(1), not later than four years after the transfer was made or the obligation was incurred; or
(3) Under RCW 19.40.051(2), not later than one year after the transfer was made.
[ 2017 c 57 s 9; 1987 c 444 s 9.]
Notes:
Effective date—1987 c 444: See note following RCW 19.40.011.

catchline: Extinguishment of claim for relief.


title: RCW 19.40.101

text:
(1) In this section, the following rules determine a debtor's location:
(a) A debtor who is an individual is located at the individual's principal residence.
(b) A debtor that is an organization and has only one place of business is located at its place of business.
(c) A debtor that is an organization and has more than one place of business is located at its chief executive office.
(2) A claim for relief in the nature of a claim for relief under this chapter is governed by the local law of the jurisdiction in which the debtor is located when the transfer is made or the obligation is incurred.
[ 2017 c 57 s 10.]

catchline: Governing law.


title: RCW 19.40.111

text:
(1) In this section:
(a) "Protected series" means an arrangement, however denominated, created by a series organization that, pursuant to the law under which the series organization is organized, has the characteristics set forth in (b) of this subsection.
(b) "Series organization" means an organization that, pursuant to the law under which it is organized, has the following characteristics:
(i) The organic record of the organization provides for creation by the organization of one or more protected series, however denominated, with respect to specified property of the organization, and for records to be maintained for each protected series that identify the property of or associated with the protected series.
(ii) Debt incurred or existing with respect to the activities of, or property of or associated with, a particular protected series is enforceable against the property of or associated with the protected series only, and not against the property of or associated with the organization or other protected series of the organization.
(iii) Debt incurred or existing with respect to the activities or property of the organization is enforceable against the property of the organization only, and not against the property of or associated with a protected series of the organization.
(2) A series organization and each protected series of the organization is a separate person for purposes of this chapter, even if for other purposes a protected series is not a person separate from the organization or other protected series of the organization.
[ 2017 c 57 s 11.]

catchline: Application to series organization.


title: RCW 19.40.121

text:
This chapter modifies, limits, or supersedes the electronic signatures in global and national commerce act, 15 U.S.C. Sec. 7001 et seq., but does not modify, limit, or supersede section 101(c) of that act, 15 U.S.C. Sec. 7001(c), or authorize electronic delivery of any of the notices described in section 103(b) of that act, 15 U.S.C. Sec. 7003(b).
[ 2017 c 57 s 12.]

catchline: Relation to electronic signatures in global and national commerce act.


title: RCW 19.40.900

text:
This chapter, which was formerly cited as the uniform fraudulent transfer act, may be cited as the uniform voidable transactions act.
[ 2017 c 57 s 13; 1987 c 444 s 12.]
Notes:
Effective date—1987 c 444: See note following RCW 19.40.011.

catchline: Short title.


title: RCW 19.40.902

text:
Unless displaced by the provisions of this chapter, the principles of law and equity, including the law merchant and the law relating to principal and agent, estoppel, laches, fraud, misrepresentation, duress, coercion, mistake, insolvency, or other validating or invalidating cause, supplement its provisions.
[ 1987 c 444 s 10.]
Notes:
Effective date—1987 c 444: See note following RCW 19.40.011.

catchline: Supplementary provisions.


title: RCW 19.40.903

text:
This chapter shall be applied and construed to effectuate its general purpose to make uniform the law with respect to the subject of this chapter among states enacting it.
[ 1987 c 444 s 11.]
Notes:
Effective date—1987 c 444: See note following RCW 19.40.011.

catchline: Uniformity of application and construction.


title: RCW 19.40.904

text:
For the purposes of this chapter, the terms spouse, marriage, marital, husband, wife, widow, widower, next of kin, and family shall be interpreted as applying equally to state registered domestic partnerships or individuals in state registered domestic partnerships as well as to marital relationships and married persons, and references to dissolution of marriage shall apply equally to state registered domestic partnerships that have been terminated, dissolved, or invalidated, to the extent that such interpretation does not conflict with federal law. Where necessary to implement chapter 521, Laws of 2009, gender-specific terms such as husband and wife used in any statute, rule, or other law shall be construed to be gender neutral, and applicable to individuals in state registered domestic partnerships.
[ 2009 c 521 s 54.]

catchline: Construction—Chapter applicable to state registered domestic partnerships—2009 c 521.


title: RCW 19.40.905

text:
(1) Chapter 57, Laws of 2017 applies to a transfer made or obligation incurred on or after July 23, 2017.
(2) Chapter 57, Laws of 2017 does not apply to a transfer made or obligation incurred before July 23, 2017.
(3) Chapter 57, Laws of 2017 does not apply to a right of action that has accrued before July 23, 2017.
(4) For the purposes of this section, a transfer is made and an obligation is incurred at the time provided in RCW 19.40.061.
[ 2017 c 57 s 14.]

catchline: Effect on prior transfers and obligations—2017 c 57.


title: RCW 19.405.010

text:
(1) The legislature finds that Washington must address the impacts of climate change by leading the transition to a clean energy economy. One way in which Washington must lead this transition is by transforming its energy supply, modernizing its electricity system, and ensuring that the benefits of this transition are broadly shared throughout the state.
(2) With our wealth of carbon-free hydropower, Washington has some of the cleanest electricity in the United States. But electricity remains a large source of emissions in our state. We are at a critical juncture for transforming our electricity system. It is the policy of the state to eliminate coal-fired electricity, transition the state's electricity supply to one hundred percent carbon-neutral by 2030, and one hundred percent carbon-free by 2045. In implementing this chapter, the state must prioritize the maximization of family-wage job creation, seek to ensure that all customers are benefiting from the transition to a clean energy economy, and provide safeguards to ensure that the achievement of this policy does not impair the reliability of the electricity system or impose unreasonable costs on utility customers.
(3) The transition to one hundred percent clean energy is underway, but must happen faster than our current policies can deliver. Absent significant and swift reductions in greenhouse gas emissions, climate change poses immediate significant threats to our economy, health, safety, and national security. The prices of clean energy technologies continue to fall, and are, in many cases, competitive or even cheaper than conventional energy sources.
(4) The legislature finds that Washington can accomplish the goals of chapter 288, Laws of 2019 while: Promoting energy independence; creating high quality jobs in the clean energy sector; maximizing the value of hydropower, our principal renewable resource; continuing to encourage and provide incentives for clean alternative energy sources, including providing electricity for the transportation sector; maintaining safe and reliable electricity to all customers at stable and affordable rates; and protecting clean air and water in the Pacific Northwest. Clean energy creates more jobs per unit of energy produced than fossil fuel sources, so this transition will contribute to job growth in Washington while addressing our climate crisis head on. Our abundance of renewable energy and our strong clean technology sector make Washington well positioned to be at the forefront of the transition to one hundred percent clean electricity.
(5) The legislature declares that utilities in the state have an important role to play in this transition, and must be fully empowered, through regulatory tools and incentives, to achieve the goals of this policy. In combination with new technology and emerging opportunities for customers, this policy will spur transformational change in the utility industry. Given these changes, the legislature recognizes and finds that the utilities and transportation commission's statutory grant of authority for rate making includes consideration and implementation of performance and incentive-based regulation, multiyear rate plans, and other flexible regulatory mechanisms where appropriate to achieve fair, just, reasonable, and sufficient rates and its public interest objectives.
(6) The legislature recognizes and finds that the public interest includes, but is not limited to: The equitable distribution of energy benefits and reduction of burdens to vulnerable populations and highly impacted communities; long-term and short-term public health, economic, and environmental benefits and the reduction of costs and risks; and energy security and resiliency. It is the intent of the legislature that in achieving this policy for Washington, there should not be an increase in environmental health impacts to highly impacted communities.
(7) It is the intent of the legislature to provide flexible tools to address the variability of hydropower for compliance under chapter 288, Laws of 2019.
[ 2019 c 288 s 1.]

catchline: Findings—Intent—2019 c 288.


title: RCW 19.405.020

text:
The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
(1) "Allocation of electricity" means, for the purposes of setting electricity rates, the costs and benefits associated with the resources used to provide electricity to an electric utility's retail electricity consumers that are located in this state.
(2) "Alternative compliance payment" means the payment established in RCW 19.405.090(2).
(3) "Attorney general" means the Washington state office of the attorney general.
(4) "Auditor" means: (a) The Washington state auditor's office or its designee for utilities under its jurisdiction under this chapter that are consumer-owned utilities; or (b) an independent auditor selected by a utility that is not under the jurisdiction of the state auditor and is not an investor-owned utility.
(5)(a) "Biomass energy" includes: (i) Organic by-products of pulping and the wood manufacturing process; (ii) animal manure; (iii) solid organic fuels from wood; (iv) forest or field residues; (v) untreated wooden demolition or construction debris; (vi) food waste and food processing residuals; (vii) liquors derived from algae; (viii) dedicated energy crops; and (ix) yard waste.
(b) "Biomass energy" does not include: (i) Wood pieces that have been treated with chemical preservatives such as creosote, pentachlorophenol, or copper-chrome-arsenic; (ii) wood from old growth forests; or (iii) municipal solid waste.
(6) "Carbon dioxide equivalent" has the same meaning as defined in RCW 70A.45.010.
(7)(a) "Coal-fired resource" means a facility that uses coal-fired generating units, or that uses units fired in whole or in part by coal as feedstock, to generate electricity.
(b)(i) "Coal-fired resource" does not include unspecified electricity that is included as part of a limited duration wholesale power purchase made by an electric utility for delivery to retail electric customers that are located in this state, where the purchase is:
(A)(I) For a contract duration not to exceed three months; or
(II) A purchase of system sales for a contract duration not to exceed six months, provided that the purchase is used to demonstrate compliance with the electric utility's seasonal resource adequacy requirements under a regional resource adequacy program; and
(B) Not used for the purpose of avoiding the restrictions on coal-fired resources under RCW 19.405.030.
(ii) "Coal-fired resource" does not include an electric generating facility that is subject to an obligation to meet the standards contained in RCW 80.80.040(3)(c).
(8) "Commission" means the Washington utilities and transportation commission.
(9) "Conservation and efficiency resources" means any reduction in electric power consumption that results from increases in the efficiency of energy use, production, transmission, or distribution.
(10)(a) "Consumer-owned utility" means a municipal electric utility formed under Title 35 RCW, a public utility district formed under Title 54 RCW, an irrigation district formed under chapter 87.03 RCW, a cooperative formed under chapter 23.86 RCW, a mutual corporation or association formed under chapter 24.06 RCW, or a port district formed under Title 53 RCW, that is engaged in the business of distributing electricity to at least one retail electric customer in the state.
(b) "Consumer-owned utility" does not include a public utility district formed under Title 54 RCW with only one retail electric customer in the state provided the customer remains the same as of January 1, 2026, and the public utility district continues to receive 100 percent of its electricity needs from the Bonneville power administration.
(11) "Demand response" means changes in electric usage by demand-side resources from their normal consumption patterns in response to changes in the price of electricity, or to incentive payments designed to induce lower electricity use, at times of high wholesale market prices or when system reliability is jeopardized. "Demand response" may include measures to increase or decrease electricity production on the customer's side of the meter in response to incentive payments.
(12) "Department" means the department of commerce.
(13) "Distributed energy resource" means a nonemitting electric generation or renewable resource or program that reduces electric demand, manages the level or timing of electricity consumption, or provides storage, electric energy, capacity, or ancillary services to an electric utility and that is located on the distribution system, any subsystem of the distribution system, or behind the customer meter, including conservation and energy efficiency.
(14) "Electric utility" or "utility" means a consumer-owned utility or an investor-owned utility.
(15) "Energy assistance" means a program undertaken by a utility to reduce the household energy burden of its customers.
(a) Energy assistance includes, but is not limited to, weatherization, conservation and efficiency services, and monetary assistance, such as a grant program or discounts for lower income households, intended to lower a household's energy burden.
(b) Energy assistance may include direct customer ownership in distributed energy resources or other strategies if such strategies achieve a reduction in energy burden for the customer above other available conservation and demand-side measures.
(16) "Energy assistance need" means the amount of assistance necessary to achieve a level of household energy burden established by the department or commission.
(17) "Energy burden" means the share of annual household income used to pay annual home energy bills.
(18)(a) "Energy transformation project" means a project or program that: Provides energy-related goods or services, other than the generation of electricity; results in a reduction of fossil fuel consumption and in a reduction of the emission of greenhouse gases attributable to that consumption; and provides benefits to the customers of an electric utility.
(b) "Energy transformation project" may include but is not limited to:
(i) Home weatherization or other energy efficiency measures, including market transformation for energy efficiency products, in excess of: The target established under RCW 19.285.040(1), if applicable; other state obligations; or other obligations in effect on May 7, 2019;
(ii) Support for electrification of the transportation sector including, but not limited to:
(A) Equipment on an electric utility's transmission and distribution system to accommodate electric vehicle connections, as well as smart grid systems that enable electronic interaction between the electric utility and charging systems, and facilitate the utilization of vehicle batteries for system needs;
(B) Incentives for the sale or purchase of electric vehicles, both battery and fuel cell powered, as authorized under state or federal law;
(C) Incentives for the installation of charging equipment for electric vehicles;
(D) Incentives for the electrification of vehicle fleets utilizing a battery or fuel cell for electric supply;
(E) Incentives to install and operate equipment to produce or distribute renewable hydrogen; and
(F) Incentives for renewable hydrogen fueling stations;
(iii) Investment in distributed energy resources and grid modernization to facilitate distributed energy resources and improved grid resilience;
(iv) Investments in equipment for renewable natural gas processing, conditioning, and production, or equipment or infrastructure used solely for the purpose of delivering renewable natural gas for consumption or distribution;
(v) Contributions to self-directed investments in the following measures to serve the sites of large industrial gas and electrical customers: (A) Conservation; (B) new renewable resources; (C) behind-the-meter technology that facilitates demand response cooperation to reduce peak loads; (D) infrastructure to support electrification of transportation needs, including battery and fuel cell electrification; or (E) renewable natural gas processing, conditioning, or production; and
(vi) Projects and programs that achieve energy efficiency and emission reductions in the agricultural sector, including bioenergy and renewable natural gas projects.
(19) "Fossil fuel" means natural gas, petroleum, coal, or any form of solid, liquid, or gaseous fuel derived from such a material.
(20) "Governing body" means: The council of a city or town; the commissioners of an irrigation district, municipal electric utility, or public utility district; or the board of directors of an electric cooperative or mutual association that has the authority to set and approve rates.
(21) "Greenhouse gas" includes carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons, sulfur hexafluoride, and any other gas or gases designated by the department of ecology by rule under RCW 70A.45.010.
(22) "Highly impacted community" means a community designated by the department of health based on cumulative impact analyses in RCW 19.405.140 or a community located in census tracts that are fully or partially on "Indian country" as defined in 18 U.S.C. Sec. 1151.
(23) "Investor-owned utility" means a company owned by investors that meets the definition of "corporation" in RCW 80.04.010 and is engaged in distributing electricity to more than one retail electric customer in the state.
(24) "Low-income" means household incomes as defined by the department or commission, provided that the definition may not exceed the higher of eighty percent of area median household income or two hundred percent of the federal poverty level, adjusted for household size.
(25)(a) "Market customer" means a nonresidential consumer of electricity that: (i) Purchases electricity from an entity that is not a utility subject to this chapter; or (ii) generates electricity for its own consumption or its lessee's consumption, or both.
(b) An "affected market customer" is an electricity consumer who becomes a market customer after May 7, 2019.
(c) "Affected market customer" does not include a nonresidential customer of an electric utility that, prior to May 7, 2019, generated electricity to meet less than 100 percent of its own needs.
(d) "Affected market customer" does not include a nonresidential consumer of electricity that generates electricity using de minimis amounts of fossil fuels solely for emergency backup requirements.
(26)(a) "Natural gas" means naturally occurring mixtures of hydrocarbon gases and vapors consisting principally of methane, whether in gaseous or liquid form, including methane clathrate.
(b) "Natural gas" does not include renewable natural gas or the portion of renewable natural gas when blended into other fuels.
(27)(a) "Nonemitting electric generation" means electricity from a generating facility or a resource that provides electric energy, capacity, or ancillary services to an electric utility and that does not emit greenhouse gases as a by-product of energy generation.
(b) "Nonemitting electric generation" does not include renewable resources.
(28)(a) "Nonpower attributes" means all environmentally related characteristics, exclusive of energy, capacity reliability, and other electrical power service attributes, that are associated with the generation of electricity, including but not limited to the facility's fuel type, geographic location, vintage, qualification as a renewable resource, and avoided emissions of pollutants to the air, soil, or water, and avoided emissions of carbon dioxide and other greenhouse gases.
(b) "Nonpower attributes" does not include any aspects, claims, characteristics, and benefits associated with the on-site capture and destruction of methane or other greenhouse gases at a facility through a digester system, landfill gas collection system, or other mechanism, which may be separately marketable as greenhouse gas emission reduction credits, offsets, or similar tradable commodities. However, these separate avoided emissions may not result in or otherwise have the effect of attributing greenhouse gas emissions to the electricity.
(29) "Qualified transmission line" means an overhead transmission line that is: (a) Designed to carry a voltage in excess of one hundred thousand volts; (b) owned in whole or in part by an investor-owned utility; and (c) primarily or exclusively used by such an investor-owned utility as of May 7, 2019, to transmit electricity generated by a coal-fired resource.
(30) "Renewable energy credit" means a tradable certificate of proof of one megawatt-hour of a renewable resource. The certificate includes all of the nonpower attributes associated with that one megawatt-hour of electricity and the certificate is verified by a renewable energy credit tracking system selected by the department.
(31) "Renewable hydrogen" means hydrogen produced using renewable resources both as the source for the hydrogen and the source for the energy input into the production process.
(32) "Renewable natural gas" means a gas consisting largely of methane and other hydrocarbons derived from the decomposition of organic material in landfills, wastewater treatment facilities, and anaerobic digesters.
(33) "Renewable resource" means: (a) Water; (b) wind; (c) solar energy; (d) geothermal energy; (e) renewable natural gas; (f) renewable hydrogen; (g) wave, ocean, or tidal power; (h) biodiesel fuel that is not derived from crops raised on land cleared from old growth or first growth forests; or (i) biomass energy.
(34)(a) "Retail electric customer" means a person or entity that purchases electricity from any electric utility for ultimate consumption and not for resale.
(b) "Retail electric customer" does not include, in the case of any electric utility, any person or entity that purchases electricity exclusively from carbon-free and eligible renewable resources, as defined in RCW 19.285.030 as of January 1, 2019, pursuant to a special contract with an investor-owned utility approved by an order of the commission prior to May 7, 2019.
(35) "Retail electric load" means:
(a) With respect to an electric utility, the amount of megawatt-hours of electricity delivered in a given calendar year by an electric utility to its Washington retail electric customers. "Retail electric load" does not include:
(i) Megawatt-hours delivered from qualifying facilities under the federal public utility regulatory policies act of 1978, P.L. 95-617, in operation prior to May 7, 2019, provided that no entity other than the electric utility can make a claim on delivery of the megawatt-hours from those resources; or
(ii) Megawatt-hours delivered to an electric utility's system from a renewable resource through a voluntary renewable energy purchase by a retail electric customer of the utility in which the renewable energy credits associated with the megawatt-hours delivered are retired on behalf of the retail electric customer;
(b) With respect to an affected market customer, the amount of megawatt-hours of electricity purchased from an entity that is not a utility subject to this chapter or generated by the affected market customer for its own consumption. With respect to an affected market customer, "retail electric load" does not include electricity using de minimis amounts of fossil fuels used solely for emergency backup requirements.
(36) "Thermal renewable energy credit" means, with respect to a facility that generates electricity using biomass energy that also generates thermal energy for a secondary purpose, a renewable energy credit that is equivalent to three million four hundred twelve thousand British thermal units of energy used for such secondary purpose.
(37) "Unbundled renewable energy credit" means a renewable energy credit that is sold, delivered, or purchased separately from electricity. All thermal renewable energy credits are considered unbundled renewable energy credits.
(38) "Unspecified electricity" means an electricity source for which the fuel attribute is unknown or has been separated from the energy delivered to retail electric customers.
(39) "Vulnerable populations" means communities that experience a disproportionate cumulative risk from environmental burdens due to:
(a) Adverse socioeconomic factors, including unemployment, high housing and transportation costs relative to income, access to food and health care, and linguistic isolation; and
(b) Sensitivity factors, such as low birth weight and higher rates of hospitalization.
[ 2026 c 181 s 1; 2025 c 221 s 1; 2024 c 83 s 2; 2023 c 233 s 1; 2020 c 20 s 1004; 2019 c 288 s 2.]

catchline: Definitions.


title: RCW 19.405.030

text:
(1)(a) On or before December 31, 2025, each electric utility must eliminate coal-fired resources from its allocation of electricity. This does not include costs associated with decommissioning and remediation of these facilities.
(b) The commission shall allow in electric rates all decommissioning and remediation costs prudently incurred by an investor-owned utility for a coal-fired resource.
(c) Electricity purchased from the Bonneville power administration under a long-term power purchase agreement or exchange agreement, including any portion of the federal system supplied by unspecified electricity, is exempt from the compliance requirements of (a) of this subsection, except for any portion of the federal system supplied by a transaction to procure electricity where, at the time the Bonneville power administration entered into the transaction, the source of the electricity was known to be from a coal-fired generating unit.
(2) The commission must accelerate depreciation schedules for any coal-fired resource to a date no later than December 31, 2025. The commission may accelerate the depreciation schedule for any qualified transmission line owned by an investor-owned utility when the commission finds the qualified transmission line is no longer used and useful and there is no reasonable likelihood that the qualified transmission line will be utilized in the future. The adjusted depreciation schedule must require such a qualified transmission line to be fully depreciated on or before December 31, 2025.
(3) The commission must allow in rates, directly or indirectly, amounts on an investor-owned utility's books of account that the commission finds represent prudently incurred undepreciated investment in a fossil fuel generating resource that has been retired from service when:
(a) The retirement is due to ordinary wear and tear, casualties, acts of God, acts of governmental authority, inability to procure or use fuel, termination or expiration of any ownership, or a operation agreement affecting such a fossil fuel generating resource; or
(b) The commission finds that the retirement is in the public interest.
(4) An electric utility that fails to comply with the requirements of subsection (1) of this section must pay the administrative penalty established under RCW 19.405.090(1), except as otherwise provided in this chapter.
[ 2025 c 221 s 2; 2019 c 288 s 3.]


title: RCW 19.405.040

text:
(1) It is the policy of the state that all retail sales of electricity to Washington retail electric customers be greenhouse gas neutral by January 1, 2030.
(a) For the four-year compliance period beginning January 1, 2030, and for each multiyear compliance period thereafter through December 31, 2044, an electric utility must demonstrate its compliance with this standard using a combination of nonemitting electric generation and electricity from renewable resources, or alternative compliance options, as provided in this section. To achieve compliance with this standard, an electric utility must: (i) Pursue all cost-effective, reliable, and feasible conservation and efficiency resources to reduce or manage retail electric load, using the methodology established in RCW 19.285.040, if applicable; and (ii) use electricity from renewable resources and nonemitting electric generation in an amount equal to one hundred percent of the utility's retail electric loads over each multiyear compliance period. An electric utility must achieve compliance with this standard for the following compliance periods: January 1, 2030, through December 31, 2033; January 1, 2034, through December 31, 2037; January 1, 2038, through December 31, 2041; and January 1, 2042, through December 31, 2044.
(b) Through December 31, 2044, an electric utility may satisfy up to twenty percent of its compliance obligation under (a) of this subsection with an alternative compliance option consistent with this section. An alternative compliance option may include any combination of the following:
(i) Making an alternative compliance payment under RCW 19.405.090(2);
(ii) Using unbundled renewable energy credits, provided that there is no double counting of any nonpower attributes associated with renewable energy credits within Washington or programs in other jurisdictions, as follows:
(A) Unbundled renewable energy credits produced from eligible renewable resources, as defined under RCW 19.285.030, which may be used by the electric utility for compliance with RCW 19.285.040 and this section as provided under RCW 19.285.040(2)(e); and
(B) Unbundled renewable energy credits, other than those included in (b)(ii)(A) of this subsection, that represent electricity generated within the compliance period;
(iii) Investing in energy transformation projects, including additional conservation and efficiency resources beyond what is otherwise required under this section, provided the projects meet the requirements of subsection (2) of this section and are not credited as resources used to meet the standard under (a) of this subsection; or
(iv) Using electricity from an energy recovery facility using municipal solid waste as the principal fuel source, where the facility was constructed prior to 1992, and the facility is operated in compliance with federal laws and regulations and meets state air quality standards. An electric utility may only use electricity from such an energy recovery facility if the department and the department of ecology determine that electricity generation at the facility provides a net reduction in greenhouse gas emissions compared to any other available waste management best practice. The determination must be based on a life-cycle analysis comparing the energy recovery facility to other technologies available in the jurisdiction in which the facility is located for the waste management best practices of waste reduction, recycling, composting, and minimizing the use of a landfill.
(c) Electricity from renewable resources used to meet the standard under (a) of this subsection must be verified by the retirement of renewable energy credits. Renewable energy credits must be tracked and retired in the tracking system selected by the department.
(d) Hydroelectric generation used by an electric utility in meeting the standard under (a) of this subsection may not include new diversions, new impoundments, new bypass reaches, or expansion of existing reservoirs constructed after May 7, 2019, unless the diversions, bypass reaches, or reservoir expansions are necessary for the operation of a pumped storage facility that: (i) Does not conflict with existing state or federal fish recovery plans; and (ii) complies with all local, state, and federal laws and regulations.
(e) Nothing in (d) of this subsection precludes an electric utility that owns and operates hydroelectric generating facilities, or the owner of a hydroelectric generating facility whose energy output is marketed by the Bonneville power administration, from making efficiency or other improvements to its hydroelectric generating facilities existing as of May 7, 2019, or from installing hydroelectric generation in pipes, culverts, irrigation canals, and other man-made waterways, as long as those changes do not create conflicts with existing state or federal fish recovery plans and comply with all local, state, and federal laws and regulations.
(f) Nonemitting electric generation used to meet the standard under (a) of this subsection must be generated during the compliance period and must be verified by documentation that the electric utility owns the nonpower attributes of the electricity generated by the nonemitting electric generation resource.
(g) Nothing in this section prohibits an electric utility from purchasing or exchanging power from the Bonneville power administration.
(2) Investments in energy transformation projects used to satisfy an alternative compliance option provided under subsection (1)(b) of this section must use criteria developed by the department of ecology, in consultation with the department and the commission. For the purpose of crediting an energy transformation project toward the standard in subsection (1)(a) of this section, the department of ecology must establish a conversion factor of emissions reductions resulting from energy transformation projects to megawatt-hours of electricity from nonemitting electric generation that is consistent with the emission factors for unspecified electricity, or for energy transformation projects in the transportation sector, consistent with default emissions or conversion factors established by other jurisdictions for clean alternative fuels. Emissions reductions from energy transformation projects must be:
(a) Real, specific, identifiable, and quantifiable;
(b) Permanent: The department of ecology must look to other jurisdictions in setting this standard and make a reasonable determination on length of time;
(c) Enforceable by the state of Washington;
(d) Verifiable;
(e) Not required by another statute, rule, or other legal requirement; and
(f) Not reasonably assumed to occur absent investment, or if an investment has already been made, not reasonably assumed to occur absent additional funding in the near future.
(3) Energy transformation projects must be associated with the consumption of energy in Washington and must not create a new use of fossil fuels that results in a net increase of fossil fuel usage.
(4) The compliance eligibility of energy transformation projects may be scaled or prorated by an approved protocol in order to distinguish effects related to reductions in electricity usage from reductions in fossil fuel usage.
(5) Any compliance obligation fulfilled through an investment in an energy transformation project is eligible for use only: (a) By the electric utility that makes the investment; (b) if the investment is made by the Bonneville power administration, by electric utilities that are preference customers of the Bonneville power administration; or (c) if the investment is made by a joint operating agency organized under chapter 43.52 RCW, by a member of the joint operating agency. An electric utility making an investment in partnership with another electric utility or entity may claim credit proportional to its share invested in the total project cost.
(6)(a) In meeting the standard under subsection (1) of this section, an electric utility must, consistent with the requirements of RCW 19.285.040, if applicable, pursue all cost-effective, reliable, and feasible conservation and efficiency resources, and demand response. In making new investments, an electric utility must, to the maximum extent feasible:
(i) Achieve targets at the lowest reasonable cost, considering risk;
(ii) Consider acquisition of existing renewable resources; and
(iii) In the acquisition of new resources constructed after May 7, 2019, rely on renewable resources and energy storage, insofar as doing so is consistent with (a)(i) of this subsection.
(b) Electric utilities subject to RCW 19.285.040 must demonstrate pursuit of all conservation and efficiency resources through compliance with the requirements in RCW 19.285.040.
(7) An electric utility that fails to meet the requirements of this section must pay the administrative penalty established under RCW 19.405.090(1), except as otherwise provided in this chapter.
(8) In complying with this section, an electric utility must, consistent with the requirements of RCW 19.280.030 and 19.405.140, ensure that all customers are benefiting from the transition to clean energy: Through the equitable distribution of energy and nonenergy benefits and reduction of burdens to vulnerable populations and highly impacted communities; long-term and short-term public health and environmental benefits and reduction of costs and risks; and energy security and resiliency.
(9) Affected market customers must comply with the standard established under subsection (1) of this section.
(10) A market customer that purchases electricity exclusively from carbon-free resources and eligible renewable resources, as defined in RCW 19.285.030 as of January 1, 2019, pursuant to a special contract with an investor-owned utility approved, prior to May 7, 2019, by order of the commission is subject to the requirements of such an order and not to the standard established in this section. For purposes of interpreting any such special contract, chapter 19.285 RCW, as in effect on January 1, 2019, is not, either directly or indirectly, amended or supplemented.
(11) To reduce costs for utility customers or avoid exceeding the cost impact limit in RCW 19.405.060(3)(a), a multistate electric utility with fewer than two hundred fifty thousand customers in Washington may apply the total amount of megawatt-hours of coal-fired resources eliminated from the utility's allocation of electricity before December 31, 2025, as an equivalent amount of megawatt-hours of nonemitting electric generation or electricity from renewable resources required to comply with subsection (1)(a) of this section. The utility must demonstrate that for every megawatt-hour of early action compliance credit there is a real, permanent reduction in greenhouse gas emissions in the western interconnection directly associated with that credit. A multistate electric utility must request to use early action compliance credit in its clean energy implementation plan that is submitted under RCW 19.405.060. The multistate electric utility must specify in its clean energy implementation plan the compliance years to which the early action compliance credit will apply, but in no event may the multistate electric utility use the early action compliance credits beyond 2035. The commission must establish conditions for use of early action compliance credits, including a determination of whether action constitutes early action, before the multistate electric utility's use of early action compliance credits in a clean energy implementation plan.
[ 2019 c 288 s 4.]

catchline: Greenhouse gas neutrality—Responsibilities for electric utilities—Energy transformation project criteria—Penalties.


title: RCW 19.405.050

text:
(1) It is the policy of the state that nonemitting electric generation and electricity from renewable resources supply one hundred percent of all sales of electricity to Washington retail electric customers by January 1, 2045. By January 1, 2045, and each year thereafter, each electric utility must demonstrate its compliance with this standard using a combination of nonemitting electric generation and electricity from renewable resources.
(2) Each electric utility must incorporate subsection (1) of this section into all relevant planning and resource acquisition practices including, but not limited to: Resource planning under chapter 19.280 RCW; the construction or acquisition of property, including electric generating facilities; and the provision of electricity service to retail electric customers.
(3) In planning to meet projected demand consistent with the requirements of subsection (2) of this section and RCW 19.285.040, if applicable, an electric utility must pursue all cost-effective, reliable, and feasible conservation and efficiency resources, and demand response. In making new investments, an electric utility must, to the maximum extent feasible:
(a) Achieve targets at the lowest reasonable cost, considering risk;
(b) Consider acquisition of existing renewable resources; and
(c) In the acquisition of new resources constructed after May 7, 2019, rely on renewable resources and energy storage, insofar as doing so is consistent with (a) of this subsection.
(4) The commission, department, energy facility site evaluation council, department of ecology, and all other state agencies must incorporate this section into all relevant planning and utilize all programs authorized by statute to achieve subsection (1) of this section.
(5)(a) Hydroelectric generation used by an electric utility to satisfy the requirements of this section may not include new diversions, new impoundments, new bypass reaches, or expansion of existing reservoirs constructed after May 7, 2019, unless the diversions, bypass reaches, or reservoir expansions are necessary for the operation of a pumped storage facility that: (i) Does not conflict with existing state or federal fish recovery plans; and (ii) complies with all local, state, and federal laws and regulations.
(b) Nothing in (a) of this subsection precludes an electric utility that owns and operates hydroelectric generating facilities, or the owner of a hydroelectric generating facility whose energy output is marketed by the Bonneville power administration, from making efficiency or other improvements to its hydroelectric generating facilities existing as of May 7, 2019, or from installing hydroelectric generation in pipes, culverts, irrigation canals, and other man-made waterways as long as those changes do not create conflicts with existing state or federal fish recovery plans and comply with all local, state, and federal laws and regulations.
(6) Nothing in this section prohibits an electric utility from purchasing or exchanging power from the Bonneville power administration.
(7) Affected market customers must comply with the obligations of this section.
(8) Any market customer that purchases electricity exclusively from carbon-free resources and eligible renewable resources, as defined in RCW 19.285.030 as of January 1, 2019, pursuant to a special contract with an investor-owned utility approved, prior to May 7, 2019, by order of the commission is subject to the requirements of such an order and not to the standards established in this section. For the purposes of interpreting such a special contract, chapter 19.285 RCW, as in effect on January 1, 2019, is not, either directly or indirectly, amended or supplemented.
[ 2019 c 288 s 5.]

catchline: Clean energy implementation—Hydroelectric facilities—Special contracts.


title: RCW 19.405.060

text:
(1)(a) By January 1, 2022, and every four years thereafter, each investor-owned utility must develop and submit to the commission:
(i) A four-year clean energy implementation plan for the standards established under RCW 19.405.040(1) and 19.405.050(1) that proposes specific targets for energy efficiency, demand response, and renewable energy; and
(ii) Proposed interim targets for meeting the standard under RCW 19.405.040(1) during the years prior to 2030 and between 2030 and 2045.
(b) An investor-owned utility's clean energy implementation plan must:
(i) Be informed by the investor-owned utility's clean energy action plan developed under RCW 19.280.030;
(ii) Be consistent with subsection (3) of this section; and
(iii) Identify specific actions to be taken by the investor-owned utility over the next four years, consistent with the utility's long-range integrated resource plan and resource adequacy requirements, that demonstrate progress toward meeting the standards under RCW 19.405.040(1) and 19.405.050(1) and the interim targets proposed under (a)(i) of this subsection. The specific actions identified must be informed by the investor-owned utility's historic performance under median water conditions and resource capability and by the investor-owned utility's participation in centralized markets. In identifying specific actions in its clean energy implementation plan, the investor-owned utility may also take into consideration any significant and unplanned loss or addition of load it experiences.
(c) The commission, after a hearing, must by order approve, reject, or approve with conditions an investor-owned utility's clean energy implementation plan and interim targets. The commission may, in its order, recommend or require more stringent targets than those proposed by the investor-owned utility. The commission may periodically adjust or expedite timelines if it can be demonstrated that the targets or timelines can be achieved in a manner consistent with the following:
(i) Maintaining and protecting the safety, reliable operation, and balancing of the electric system;
(ii) Planning to meet the standards at the lowest reasonable cost, considering risk;
(iii) Ensuring that all customers are benefiting from the transition to clean energy: Through the equitable distribution of energy and nonenergy benefits and the reduction of burdens to vulnerable populations and highly impacted communities; long-term and short-term public health and environmental benefits and reduction of costs and risks; and energy security and resiliency; and
(iv) Ensuring that no customer or class of customers is unreasonably harmed by any resulting increases in the cost of utility-supplied electricity as may be necessary to comply with the standards.
(2)(a) By January 1, 2022, and every four years thereafter, each consumer-owned utility must develop and submit to the department a four-year clean energy implementation plan for the standards established under RCW 19.405.040(1) and 19.405.050(1) that:
(i) Proposes interim targets for meeting the standard under RCW 19.405.040(1) during the years prior to 2030 and between 2030 and 2045, as well as specific targets for energy efficiency, demand response, and renewable energy;
(ii) Is informed by the consumer-owned utility's clean energy action plan developed under RCW 19.280.030(1) or other ten-year plan developed under RCW 19.280.030(5);
(iii) Is consistent with subsection (4) of this section; and
(iv) Identifies specific actions to be taken by the consumer-owned utility over the next four years, consistent with the utility's long-range resource plan and resource adequacy requirements, that demonstrate progress towards meeting the standards under RCW 19.405.040(1) and 19.405.050(1) and the interim targets proposed under (a)(i) of this subsection. The specific actions identified must be informed by the consumer-owned utility's historic performance under median water conditions and resource capability and by the consumer-owned utility's participation in centralized markets. In identifying specific actions in its clean energy implementation plan, the consumer-owned utility may also take into consideration any significant and unplanned loss or addition of load it experiences.
(b) The governing body of the consumer-owned utility must, after a public meeting, adopt the consumer-owned utility's clean energy implementation plan. The clean energy implementation plan must be submitted to the department and made available to the public. The governing body may adopt more stringent targets than those proposed by the consumer-owned utility and periodically adjust or expedite timelines if it can be demonstrated that such targets or timelines can be achieved in a manner consistent with the following:
(i) Maintaining and protecting the safety, reliable operation, and balancing of the electric system;
(ii) Planning to meet the standards at the lowest reasonable cost, considering risk;
(iii) Ensuring that all customers are benefiting from the transition to clean energy: Through the equitable distribution of energy and nonenergy benefits and reduction of burdens to vulnerable populations and highly impacted communities; long-term and short-term public health and environmental benefits and reduction of costs and risks; and energy security and resiliency; and
(iv) Ensuring that no customer or class of customers is unreasonably harmed by any resulting increases in the cost of utility-supplied electricity as may be necessary to comply with the standards.
(3)(a) An investor-owned utility must be considered to be in compliance with the standards under RCW 19.405.040(1) and 19.405.050(1) if, over the four-year compliance period, the average annual incremental cost of meeting the standards or the interim targets established under subsection (1) of this section equals a two percent increase of the investor-owned utility's weather-adjusted sales revenue to customers for electric operations above the previous year, as reported by the investor-owned utility in its most recent commission basis report. All costs included in the determination of cost impact must be directly attributable to actions necessary to comply with the requirements of RCW 19.405.040 and 19.405.050.
(b) If an investor-owned utility relies on (a) of this subsection as a basis for compliance with the standard under RCW 19.405.040(1), then it must demonstrate that it has maximized investments in renewable resources and nonemitting electric generation prior to using alternative compliance options allowed under RCW 19.405.040(1)(b).
(4)(a) A consumer-owned utility must be considered to be in compliance with the standards under RCW 19.405.040(1) and 19.405.050(1) if, over the four-year compliance period, the average annual incremental cost of meeting the standards or the interim targets established under subsection (2) of this section meets or exceeds a two percent increase of the consumer-owned utility's retail revenue requirement above the previous year. All costs included in the determination of cost impact must be directly attributable to actions necessary to comply with the requirements of RCW 19.405.040 and 19.405.050.
(b) If a consumer-owned utility relies on (a) of this subsection as a basis for compliance with the standard under RCW 19.405.040(1), and it has not met eighty percent of its annual retail electric load using electricity from renewable resources and nonemitting electric generation, then it must demonstrate that it has maximized investments in renewable resources and nonemitting electric generation prior to using alternative compliance options allowed under RCW 19.405.040(1)(b).
(5) The commission, for investor-owned utilities, and the department, for consumer-owned utilities, must adopt rules establishing the methodology for calculating the incremental cost of compliance under this section, as compared to the cost of an alternative lowest reasonable cost portfolio of investments that are reasonably available.
(6) The commission may require a large combination utility as defined in RCW 80.86.010 to incorporate the requirements of this section into an integrated system plan established under RCW 80.86.020.
[ 2024 c 351 s 14; 2019 c 288 s 6.]
Notes:
Effective date—2024 c 351: See note following RCW 80.86.010.

catchline: Clean energy implementation plan—Compliance criteria—Incremental cost of compliance.


title: RCW 19.405.080

text:
By January 1, 2024, and at least every four years thereafter and in compliance with RCW 43.01.036, the department must submit a report to the legislature. The report must include the following:
(1) A review of the standards described in RCW 19.405.030 through 19.405.050 focused on technologies, forecasts, and existing transmission, and an evaluation of safety, environmental and public safety protection, affordability, and system reliability.
(2)(a) An evaluation, produced in consultation with the commission, electric utilities, transmission operators in Washington, the reliability coordinator for electric utilities, any regional planning organization serving electric utilities, public interest and environmental organizations, and the regional entity for the western interconnection identifying the potential benefits, impacts, and risks on system reliability associated with achieving the standards described in RCW 19.405.040 and 19.405.050. The evaluation must assess whether electric utilities have sufficient electric generation resources to meet forecasted retail electric load in addition to adequate transmission capability to implement RCW 19.405.030 through 19.405.050 without: (i) Violating mandatory and enforceable reliability standards of the North American electric reliability corporation; (ii) violating prudent utility practice for assuring resource adequacy; or (iii) compromising the power quality or integrity of the electricity system. Subject to funding appropriated for this purpose, the department must consult with a national laboratory with expertise in grid reliability, security, and resilience.
(b) The evaluation should assess the anticipated financial costs and benefits of investments necessary to correct those deficiencies at the lowest reasonable costs as identified by electric utilities, transmission operators in Washington, the regional entity for the western interconnection, or any regional planning organization serving electric utilities. The assessment of these investments in the report is not deemed to be approval of such investments for rate recovery by any authorizing entity.
(3) An evaluation identifying the nature of any anticipated financial costs and benefits to electric utilities, including customer rate impacts and benefits including, but not limited to:
(a) Greenhouse gas emissions of electric utilities;
(b) The allocation of risk between customers and electric utilities;
(c) The allocation of financial costs among electric utilities in the state and whether retail electric customers are equitably bearing the financial costs of implementing RCW 19.405.030 through 19.405.050;
(d) The timing of cost recovery for electricity generated by nonemitting electric generation or renewable resources;
(e) The resource procurement process of electric utilities; and
(f) The barriers to, and benefits of, implementing RCW 19.405.040 and 19.405.050.
(4) An evaluation of new or emerging technologies that could be considered to be a renewable resource.
(5) An assessment of the impacts of RCW 19.405.030 through 19.405.050 on middle-income families, small businesses, and manufacturers in Washington.
[ 2019 c 288 s 8.]

catchline: Report to legislature.