Connection charge waivers.

(1) Municipal utilities formed under this chapter may waive connection charges for properties owned or developed by, or on the behalf of, a nonprofit organization, public development authority, housing authority, or local agency that provides emergency shelter, transitional housing, permanent supportive housing, or affordable housing, including a limited partnership as described in RCW 84.36.560(7)(f)(ii) and a limited liability company as described in RCW 84.36.560(7)(f)(iii).(2)(a) Except as provided in (b) of this subsection, connection charges waived under this chapter shall be funded using general funds, grant dollars, or other identified revenue stream.(b) In a county east of the crest of the Cascade mountains with a population of greater than 500,000, a waiver of connection charges may be allowed under this chapter without an explicit requirement to pay the exempted connection charges from the funds described in (a) of this subsection if the waiver is conditioned upon requiring the developer to record a covenant that prohibits using the property for any purpose other than provided under this chapter. At a minimum, the covenant must address price restrictions and household income limits and that if the property is converted to a use other than described in subsection (1) of this section, the property owner must pay the applicable connection charges in effect at the time of conversion. Covenants required by this subsection must be recorded with the applicable county auditor or recording officer.(3) At such time as a property receiving a waiver under subsection (1) of this section is no longer operating under the eligibility requirements under subsection (1) of this section:(a) The waiver of connection charges required under subsection (1) of this section is no longer required; and(b) Any connection charges waived under subsection (1) of this section are immediately due and payable to the utility as a condition of continued service.(4) For the purposes of this section:(a) "Affordable housing" has the same meaning as in RCW 36.70A.030.(b) "Connection charges" means the one-time capital and administrative charges, as authorized in RCW 35.92.025, that are imposed by a utility on a building or facility owner for a new utility service and costs borne or assessed by a utility for the labor, materials, and services necessary to physically connect a designated facility to the respective utility service.(c) "Emergency shelter" means any facility that has, as its sole purpose, the provision of a temporary shelter for the homeless and that does not require occupants to sign a lease or occupancy agreement.(d) "Permanent supportive housing" has the same meaning as in RCW 36.70A.030.(e) "Transitional housing" has the same meaning as in RCW 84.36.043.[ 2025 c 351 s 1; 2023 c 249 s 1.]Notes:Reviser's note: This section was amended by 2026 c 127 s 2 without cognizance of its amendment by 2025 c 351 s 1. (1)(a) Municipal utilities formed under this chapter may waive connection charges for properties owned or developed by, or on the behalf of, a nonprofit organization, public development authority, housing authority, or local agency that provides emergency shelter, transitional housing, permanent supportive housing, or affordable housing, including a limited partnership as described in RCW 84.36.560(7)(f)(ii) and a limited liability company as described in RCW 84.36.560(7)(f)(iii).(b) Municipal utilities formed under this chapter may waive connection charges for properties owned or developed by public or private organizations that utilize the property for industrial symbiosis.(2) Connection charges waived under this chapter shall be funded using general funds, grant dollars, or other identified revenue stream.(3) At such time as a property receiving a waiver under subsection (1) of this section is no longer operating under the eligibility requirements under subsection (1) of this section:(a) The waiver of connection charges required under subsection (1) of this section is no longer required; and(b) Any connection charges waived under subsection (1) of this section are immediately due and payable to the utility as a condition of continued service.(4) For the purposes of this section:(a) "Affordable housing" has the same meaning as in RCW 36.70A.030.(b) "Connection charges" means the one-time capital and administrative charges, as authorized in RCW 35.92.025, that are imposed by a utility on a building or facility owner for a new utility service and costs borne or assessed by a utility for the labor, materials, and services necessary to physically connect a designated facility to the respective utility service.(c) "Emergency shelter" means any facility that has, as its sole purpose, the provision of a temporary shelter for the homeless and that does not require occupants to sign a lease or occupancy agreement.(d) "Industrial symbiosis" means collaboration among businesses or organizations to exchange materials, energy, water, and byproducts in order to optimize resource use and enhance environmental, economic, and social outcomes for projects that demonstrate measurable reductions in resource consumption or greenhouse gas emissions while supporting sustainable development and long-term community benefits.(e) "Permanent supportive housing" has the same meaning as in RCW 36.70A.030.(((e)))(f) "Transitional housing" has the same meaning as in RCW 84.36.043.[ 2026 c 127 s 2; 2023 c 249 s 1.]Notes:Reviser's note: This section was amended by 2026 c 127 s 2 without cognizance of its amendment by 2025 c 351 s 1.Findings—2026 c 127: "The legislature finds that climate change and environmental degradation poses a significant and increasing threat to human health in Washington. This threat cannot be combatted through reductions in greenhouse gas and other harmful emissions alone. Instead, reductions must be combined with technological innovations in clean energy, resource efficiency, and other environmentally friendly practices.The legislature finds that industrial symbiosis is one such innovation and practice. Industrial symbiosis is characterized by the beneficial utilization of waste products that may otherwise have deleterious environmental effects. Industrial symbiosis reduces waste, increases efficiency, promotes resiliency, and creates the conditions for further innovation.The legislature believes that by allowing local governments that operate their own utilities to waive connection charges for organizations practicing industrial symbiosis, Washington can encourage the development and utilization of this sustainable technology, and that such utilization is important both environmentally and economically." [ 2026 c 127 s 1.]