The Legislature should review and clarify the preference because while there has been growth in locally made systems and associated opportunities for businesses, this growth is concentrated in a small number of solar energy system manufacturers.  As part of the clarification, the Legislature should include targets for how many new local renewable energy systems it hopes to create and how much power capacity it hopes to generate through the use of this preference, as well as which local industries it would like to support.

• The number of renewable energy systems certified and the amount of Washington made components used in new systems has increased.  These increases are primarily due to solar energy systems.  New wind systems have declined since 2011 and no new anaerobic digester systems have been installed since 2011.
• Four Washington businesses have had their products certified as Made in Washington since the preference began and one of those businesses has since discontinued its production.
• At least 14 of the 39 utilities using the tax credit have reached their caps or expect to within the next year.  It is unclear what the impact of this will be on new renewable energy system installations.
• It is unclear why there are different rates for different technologies or why the preference includes only some of the renewable energy technologies included in other preferences.

Utilities can no longer earn tax credits after June 30, 2020.  Credits may not be claimed after June 30, 2021.

Legislation Required:  Yes.

Fiscal Impact:  Depends on Legislative action.