SB 6076

CERTIFICATION OF ENROLLMENT
  SUBSTITUTE SENATE BILL 6076
  Chapter 183, Laws of 2026
  69th Legislature
  2026 Regular Session
  UTILITY PROCUREMENT—CERTAIN ENERGY PROJECTS
  EFFECTIVE DATE: June 11, 2026
Passed by the Senate March 10, 2026  CERTIFICATE
  Yeas 48 Nays 1
  I, Sarah Bannister, Secretary of
  the   Senate   of   the   State  of
  DENNY HECK  Washington, do hereby certify that
President of the Senate  the attached is SUBSTITUTE SENATE
  BILL 6076 as passed by the Senate
  and the House of Representatives on
  the dates hereon set forth.
Passed by the House March 4, 2026
  Yeas 95 Nays 1
  SARAH BANNISTER
  LAURIE JINKINS  Secretary
Speaker of the House of
Representatives
Approved March 24, 2026 10:44 AM  FILED
  March 25, 2026
  Secretary of State
  BOB FERGUSON  State of Washington
Governor of the State of Washington
  SUBSTITUTE SENATE BILL 6076
  AS AMENDED BY THE HOUSE
  Passed Legislature - 2026 Regular Session
State of Washington  69th Legislature        2026 Regular Session
By Senate Environment, Energy & Technology (originally sponsored by
Senators Goehner, Salomon, Lovelett, and Saldaña)
READ FIRST TIME 02/02/26.
1      AN   ACT   Relating   to   streamlining  consumer-owned   utility
2  procurement requirements for clean energy generation, energy storage,
3  transmission, and distribution projects until the 2045 carbon free
4  compliance date under the clean energy transformation act; amending
5  RCW 54.04.080 and 39.04.280; reenacting and amending RCW 54.04.070;
6  adding a new section to chapter 54.04 RCW; and creating a new
7  section.
8  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
9     NEW SECTION. Sec. 1. The legislature finds that the state has
10 committed to achieving carbon neutrality by 2030 and becoming carbon-
11 free by 2045. At the same time, electricity demand in Washington is
12 rising sharply and current regional forecasts project an increase in
13 electricity demand of over 30 percent in the next decade.
14     The   legislature   also   finds    that   Washington's  existing
15 transmission system lacks the capacity to meet existing demand and
16 integrate future intermittent clean energy generation, and that
17 significant cost increases and supply chain delays in the electric
18 utility sector require urgent action to maintain affordability for
19 electric ratepayers. This challenge is especially heightened during
20 extreme weather events, which increases the need for heating and
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1  cooling and places sustained pressure on the grid during peak
2  periods.
3      Therefore, it is the intent of the legislature to streamline
4  certain procurement laws for consumer-owned utilities until the 2045
5  carbon free compliance date under the clean energy transformation
6  act. These changes are intended to expedite needed energy generation,
7  storage, transmission, and distribution to support Washington's
8  growing energy demand and its clean energy commitments in the most
9  timely and cost effective manner.
10     Sec. 2. RCW 54.04.070 and 2023 c 395 s 32 and 2023 c 255 s 1 are
11 each reenacted and amended to read as follows:
12     (1) Any item, or items of the same kind of materials, equipment,
13 or supplies purchased, the estimated cost of which is in excess of
14 $30,000, exclusive of sales tax, shall be by contract. However, a
15 district may make purchases of the same kind of items of materials,
16 equipment, and supplies not exceeding $12,000 in any calendar month
17 without a contract, purchasing any excess thereof over $12,000 by
18 contract.
19     (2) Any work ordered by a district commission, the estimated cost
20 of which is in excess of $150,000 exclusive of sales tax if more than
21 a single craft or trade is involved with the public works project, or
22 a public works project in excess of $75,500 exclusive of sales tax if
23 only a single craft or trade is involved with the public works
24 project, shall be by contract. However, a district commission may
25 have its own regularly employed personnel perform work which is an
26 accepted industry practice under prudent utility management without a
27 contract. For purposes of this ((section)) subsection, "prudent
28 utility management" means performing work with regularly employed
29 personnel utilizing material of a worth not exceeding $300,000 in
30 value without a contract. This limit on the value of material being
31 utilized in work being performed by regularly employed personnel
32 shall not include the value of individual items of equipment. For the
33 purposes of this section, the term "equipment" includes but is not
34 limited to conductor, cabling, wire, pipe, or lines used for
35 electrical, water, fiber optic, or telecommunications.
36     (3) Until January 1, 2045, any work ordered by a district
37 commission for the construction, maintenance, operation, or repair of
38 new or existing nonemitting electric generation, electric generation
39 from a renewable resource, energy storage, or transmission or
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1 distribution projects, the estimated cost of which is in excess of
2 $500,000 exclusive of sales tax, shall be by contract. However, a
3 district commission may have its own regularly employed personnel
4 perform work described in this subsection which is an accepted
5 industry practice under prudent utility management without a
6 contract.   For  purposes  of   this  subsection,   "prudent  utility
7 management" means performing work with regularly employed personnel
8 utilizing material of a worth not exceeding $1,000,000 in value
9 without a contract. This limit on the value of material being
10 utilized in work being performed by regularly employed personnel does
11 not include the value of individual items of equipment. For the
12 purposes of this subsection, "equipment" includes but is not limited
13 to conductor, cabling, wire, lines, parts, components, or other
14 devices used in nonemitting electrical generation, transmission, or
15 distribution. For purposes of this subsection, "nonemitting electric
16 generation" and "renewable resource" have the definitions provided in
17 RCW 19.405.020.
18     (4) Before awarding a contract required under subsection (1),
19 (2), or (((2))) (3) of this section, the commission shall publish a
20 notice once or more in a newspaper of general circulation in the
21 district at least 13 days before the last date upon which bids will
22 be received, inviting sealed proposals for the work or materials.
23 Plans and specifications for the work or materials shall at the time
24 of publication be on file at the office of the district and subject
25 to public inspection. Any published notice ordering work to be
26 performed for the district shall be mailed at the time of publication
27 to any established trade association which files a written request
28 with the district to receive such notices. The commission may, at the
29 same time and as part of the same notice, invite tenders for the work
30 or materials upon plans and specifications to be submitted by the
31 bidders.
32     (((4))) (5) As an alternative to the competitive bidding
33 requirements of this section and RCW 54.04.080, a district may let
34 contracts using the small works roster process under RCW 39.04.151
35 through 39.04.154.
36     (((5))) (6) Whenever equipment or materials required by a
37 district are held by a governmental agency and are available for sale
38 but such agency is unwilling to submit a proposal, the commission may
39 ascertain the price of such items and file a statement of such price
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1 supported by the sworn affidavit of one member of the commission, and
2 may consider such price as a bid without a deposit or bond.
3     (((6))) (7) Pursuant to RCW 39.04.280, the commission may waive
4 the competitive bidding requirements of this section and RCW
5 54.04.080 if an exemption contained within RCW 39.04.280 applies to
6 the purchase or public work.
7     (((7))) (8)(a) A district may procure public works with a unit
8 priced contract under this section, RCW 54.04.080, or 54.04.085 for
9 the purpose of completing anticipated types of work based on hourly
10 rates or unit pricing for one or more categories of work or trades.
11     (b) For the purposes of this section, unit priced contract means
12 a competitively bid contract in which public works are anticipated on
13 a recurring basis to meet the business or operational needs of a
14 district, under which the contractor agrees to a fixed period
15 indefinite quantity delivery of work, at a defined unit price, for
16 each category of work.
17     (c) Unit priced contracts must be executed for an initial
18 contract term not to exceed three years, with the district having the
19 option of extending or renewing the unit priced contract for one
20 additional year.
21     (d) Invitations for unit price bids shall include, for purposes
22 of the bid evaluation, estimated quantities of the anticipated types
23 of work or trades, and specify how the district will issue or release
24 work assignments, work orders, or task authorizations pursuant to a
25 unit priced contract for projects, tasks, or other work based on the
26 hourly rates or unit prices bid by the contractor. Where electrical
27 facility construction or improvement work is anticipated, contractors
28 on a unit priced contract shall comply with the requirements under
29 RCW 54.04.085 (1) through (5). Contracts must be awarded to the
30 lowest responsible bidder as per RCW 39.04.010.
31     (e) Unit price contractors shall pay prevailing wages for all
32 work that would otherwise be subject to the requirements of chapter
33 39.12 RCW. Prevailing wages for all work performed pursuant to each
34 work order must be the prevailing wage rates in effect at the
35 beginning date for each contract year. Unit priced contracts must
36 have prevailing wage rates updated annually. Intents and affidavits
37 for prevailing wages paid must be submitted annually for all work
38 completed within the previous 12-month period of the unit priced
39 contract.
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1     (((8))) (9) For the purposes of this section, "lowest responsible
2 bidder" means a bid that meets the criteria under RCW 39.04.350 and
3 has the lowest bid; provided, that if the district commission issues
4 a written finding that the lowest bidder has delivered a project to
5 the district within the last three years which was late, over budget,
6 or did not meet specifications, and the commission does not find in
7 writing that such bidder has shown how they would improve performance
8 to be likely to meet project specifications then the commission may
9 choose the second lowest bidder whose bid is within five percent of
10 the lowest bid and meets the same criteria as the lowest bidder.
11     Sec. 3.   RCW 54.04.080 and 1996 c 18 s 12 are each amended to
12 read as follows:
13     Any notice inviting sealed bids shall state generally the work to
14 be done, or the material to be purchased and shall call for proposals
15 for furnishing it, to be sealed and filed with the commission on or
16 before the time named therein. Utilities with a purchasing department
17 are authorized to receive hard copy or electronic bids. Each bid
18 shall be accompanied by a certified or cashier's check, payable to
19 the order of the commission, for a sum not less than five percent of
20 the amount of the bid, or accompanied by a bid bond in an amount not
21 less than five percent of the bid with a corporate surety licensed to
22 do business in the state, conditioned that the bidder will pay the
23 district as liquidated damages the amount specified in the bond
24 unless he or she enters into a contract in accordance with his or her
25 bid and furnishes the performance bond within ten days from the date
26 on which he or she is notified that he or she is the successful
27 bidder. A low bidder who claims error and fails to enter into a
28 contract is prohibited from bidding on the same project if a second
29 or subsequent call for bids is made for the project.
30     At the time and place named, the bids shall be publicly opened
31 and read, and the commission shall canvass the bids, and may let the
32 contract to the lowest responsible and responsive bidder upon the
33 plans and specifications on file, or to the best bidder submitting
34 his or her own plans or specifications; or if the contract to be let
35 is to construct or improve electrical facilities, the contract may be
36 let to the lowest bidder prequalified according to the provisions of
37 RCW 54.04.085 upon the plans and specifications on file, or to the
38 best bidder submitting his or her own plans and specifications:
39 PROVIDED, That no contract shall be let for more than ((fifteen)) 25
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1 percent in excess of the estimated cost of the materials or work. The
2 commission may reject all bids and readvertise, and in such case all
3 checks shall be returned to the bidders. The commission may procure
4 materials in the open market, have its own personnel perform the work
5 or negotiate a contract for such work to be performed by others, in
6 lieu of readvertising, if it receives no bid. If the contract is let,
7 all checks shall be returned to the bidders, except that of the
8 successful bidder, which shall be retained until a contract is
9 entered into and a bond to perform the work furnished, with sureties
10 satisfactory to the commission, in an amount to be fixed by the
11 commission, not less than ((twenty-five)) 25 percent of the contract
12 price, in accordance with the bid. If the bidder fails to enter into
13 the contract and furnish the bond within ten days from the date at
14 which he or she is notified that he or ((her [she])) she is the
15 successful bidder, his or her check and the amount thereof shall be
16 forfeited to the district.
17     The commission shall, by resolution, define the term "same kind
18 of materials, equipment, and supplies" with respect to purchase of
19 items under the provisions of RCW 54.04.070.
20     The term "construction or improvement of any electrical facility"
21 as used in this section and in RCW 54.04.085, shall mean the
22 construction, the moving, maintenance, modification, or enlargement
23 of facilities primarily used or to be used for the transmission or
24 distribution of electricity at voltages above seven hundred fifty
25 volts, including structures directly supporting transmission or
26 distribution conductors but not including site preparation, housing,
27 or protective fencing associated with but not included in a contract
28 for   such  construction,   moving,   modification,  maintenance,  or
29 enlargement of such facilities.
30     The commission shall be the final authority with regard to
31 whether a bid is responsive to the call for bids and as to whether a
32 bidder is a responsible bidder under the conditions of his or her
33 bid. No award of contract shall be invalidated solely because of the
34 failure of any prospective bidder to receive an invitation to bid.
35     NEW SECTION.   Sec. 4.  A new section is added to chapter 54.04
36 RCW to read as follows:
37     (1) For the awarding of a contract to purchase any item, or items
38 of the same kind of materials, equipment, or supplies in an amount
39 exceeding $50,000 per calendar month, but less than $250,000 per
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1 calendar month, exclusive of sales tax, the district commission may,
2 in lieu of the procedure described in RCW 54.04.070 and 54.04.080
3 requiring public notice to invite sealed proposals for such
4 materials, equipment, or supplies, pursuant to commission resolution,
5 use the process provided in RCW 39.04.190. Waiver of the deposit or
6 bid bond required under RCW 54.04.080 may be authorized by the
7 commission in securing such bid quotations.
8     (2) This section applies only to new or existing nonemitting
9 electric generation, electric generation from a renewable resource,
10 energy storage, transmission, or distribution projects as defined in
11 RCW 54.04.070.
12     Sec. 5.   RCW 39.04.280 and 1998 c 278 s 1 are each amended to
13 read as follows:
14     This section provides uniform exemptions to competitive bidding
15 requirements utilized by municipalities when awarding contracts for
16 public works and contracts for purchases. The statutes governing a
17 specific type of municipality may also include other exemptions from
18 competitive bidding requirements. The purpose of this section is to
19 supplement and not to limit the current powers of any municipality to
20 provide exemptions from competitive bidding requirements.
21     (1) Competitive bidding requirements may be waived by the
22 governing body of the municipality for:
23     (a) Purchases that are clearly and legitimately limited to a
24 single source of supply;
25     (b) Purchases involving special facilities or market conditions;
26     (c) Purchases in the event of an emergency;
27     (d) Purchases of insurance or bonds; ((and))
28     (e) Until January 1, 2045, purchases involving projects that are
29 common facilities as described in RCW 54.44.020;
30     (f) Until January 1, 2045, purchases relating to energy
31 generation, storage, transmission, or distribution facilities if the
32 governing body determines that the expedited procurement action is
33 for proprietary or specialized technologies with no comparable
34 alternatives, is necessary to ensure compliance with electrical
35 reliability standards, or prevent threats to grid reliability; and
36     (g) Public works in the event of an emergency.
37     (2)(a) The waiver of competitive bidding requirements under
38 subsection (1) of this section may be by resolution or by the terms
39 of written policies adopted by the municipality, at the option of the
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1 governing body of the municipality. If the governing body elects to
2 waive competitive bidding requirements by the terms of written
3 policies adopted by the municipality, immediately after the award of
4 any contract, the contract and the factual basis for the exception
5 must be recorded and open to public inspection.
6     If a resolution is adopted by a governing body to waive
7 competitive bidding requirements under (b) of this subsection, the
8 resolution must recite the factual basis for the exception. This
9 subsection (2)(a) does not apply in the event of an emergency.
10     (b) If an emergency exists, the person or persons designated by
11 the governing body of the municipality to act in the event of an
12 emergency   may  declare   an   emergency  situation   exists,  waive
13 competitive bidding requirements, and award all necessary contracts
14 on behalf of the municipality to address the emergency situation. If
15 a contract is awarded without competitive bidding due to an
16 emergency, a written finding of the existence of an emergency must be
17 made by the governing body or its designee and duly entered of record
18 no later than two weeks following the award of the contract.
19     (3) For purposes of this section "emergency" means unforeseen
20 circumstances beyond the control of the municipality that either: (a)
21 Present a real, immediate threat to the proper performance of
22 essential functions; or (b) will likely result in material loss or
23 damage to property, bodily injury, or loss of life if immediate
24 action is not taken.
  Passed by the Senate March 10, 2026.
  Passed by the House March 4, 2026.
  Approved by the Governor March 24, 2026.
  Filed in Office of Secretary of State March 25, 2026.
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