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Committee approves limited waiver authority for municipal utility connection charges in large eastern counties

2790302 · March 26, 2025
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Summary

Engrossed Senate Bill 5662, allowing municipal utilities in certain eastern Washington counties with populations over 500,000 to waive connection charges for qualifying housing providers using non‑general fund sources under conditions, was reported out of committee after an amendment clarifying funding language was adopted.

Engrossed Senate Bill 5662, which authorizes municipal utilities in specified large counties east of the Cascade crest to allow waivers of certain utility connection charges for properties owned by qualifying housing providers, was reported out of the House Housing Committee March 26 after adoption of an amendment clarifying funding language.

Committee staff summarized the bill as authorizing municipal utilities to use sources of funding other than general funds, grants or other identified revenue streams to waive connection charges for properties owned by certain housing providers in a county east of the Cascades with a population greater than 500,000, subject to conditions. Representative Hill offered amendment H2019.1 to clarify that the amendment ensures the waiver is a true waiver and removes the need for an explicit required reimbursement source; the amendment was adopted.

Proponents said the change gives municipal utilities flexibility to support affordable housing projects without requiring a specific existing fund be identified for the waiver. Some members expressed concern about shifting costs to other ratepayers; Representative Jacobson warned waiving capital-related fees could push costs onto other builders. Committee discussion noted the bill as a limited pilot-style authority intended for Spokane-area needs.

On the roll call the clerk recorded 13 ayes and 4 nays. By that vote, Engrossed Senate Bill 5662 was reported out of committee as amended with a due-pass recommendation.