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Labor & Industries (L&I) is considering labor standards for certain clean energy projects. The standards will be used for a project applicant to receive a sales and tax deferral.
L&I adopted an emergency rule on July 1 to:
     (1) Establish minimum requirements for labor standards for certain clean energy projects;
            - Set requirements to consult with other state agencies. The goal will be to develop a plan to meet the standards.
            - The other agencies involved include the Office of Minority and Women-Owned Businesses, and the Department of Veteran Affairs.
     (2) Set other requirements for documentation and the certification process.

To initiate the permanent rulemaking process for the labor standard certification requirements, a CR-101 (Pre-proposal statement of inquiry) was filed on June 21, 2022. Chapter 296-140 WAC involves labor standards for clean energy projects under 2019s Clean Energy Transformation Act (RCW 82.08.962 and 82.12.962).

Why this is happening now
In 2022, the state Legislature passed Second Substitute House Bill 1988 (2SHB 1988) and Engrossed Substitute Senate Bill 5714 (ESSB 5714). These new laws went into effect on July 1. The bills support the state’s clean energy economy, and transition to a clean, affordable, and reliable energy future.

Under the bills, a recipient of the tax deferral may qualify for a 50%, 75%, or 100% reduction in the sales and use tax required to be repaid. Qualifying projects include: manufacturing; clean alternative fuels production; renewable energy storage; and solar canopies.

As part of the law, L&I must certify the projects meet labor standards. The certification permits an applicant to receive a sales and tax deferral.

The emergency rule filed on July 1:
CR-103E Emergency Rulemaking
CR-103E Adoption Language

Next steps
With the filing of the emergency rule, the next step will be a formal rulemaking process. That will include submission of draft language with the state Office of the Code Reviser, a comment period, and a formal public hearing. You can see more online at www.Lni.wa.gov/CleanEnergy.

We would appreciate your thoughts and input on the development of permanent rulemaking.

You can contact us at:
CleanEnergyReview@Lni.wa.gov
360-902-5335 (press option 4)

Jordan Guerra
Clean Energy Specialist
Clean Energy Program