Official Text and Analysis.

• Updates the minimum State Energy Code requirements for residential and nonresidential construction. • Requires new buildings to be net-zero ready. • Requires the State Building Code Council to adopt a statewide residential reach code and requires the Department of Commerce to develop rulemaking documents and a proposal covering the technical provisions. • Preempts local residential codes with the Washington State Energy Code and the Statewide Residential Reach Cod.

Removes the provision requiring residential and nonresidential buildings to achieve at least a 70 percent reduction in annual net energy consumption. Removes the provision requiring new buildings to be net-zero ready, including a reduction of at least 80 percent in annual net energy consumption.

Changes the date by which buildings must be net-zero ready from December 1, 2034 to December 1, 2040..

Provides that the requirement that new buildings be 6 net-zero ready apply only if at least 60 percent of the solar equipment for photovoltaic panel installation for residential use can be recycled.

Provides that the 80 percent reduction in annual net energy consumption that must be achieved for new buildings does not apply to the increased load for electronic vehicle charging. Clarifies that the statewide residential reach code may not require more annual renewable production than a residential building is required to use. Clarifies that the residential reach code must achieve the 70 percent reduction in energy consumption and greenhouse gas emissions for residential buildings in incremental steps by July 1, 2027.

Exempts heating and air conditioning systems from the Washington State Energy Code requirement that new buildings have at least an 80 percent reduction in annual net energy consumption.

Requires the State Building Code Council to provide an exception to the energy code for experimental or custom homes that are unique or showcase architectural and design elements that would otherwise be prohibited.

Allows the State Building Code Council to establish by rule a later effective date to, or to suspend the enforcement of, the net-zero ready and annual net energy consumption requirementsfor residential and nonresidential buildings if the State Building Code Council determines that there is insufficient affordable equipment and technology identified and able to meet the additional requirements.

Provides that the obligation of any city, town, or county to comply with adjustments to the Washington State Energy Code or implementing rules is contingent on state funding to the Washington Association of Building Officials to provide training to its members virtually and in specific areas for every code update implementing the act.

Provides that modifications to the energy code may not impose a cost of more than $10,000 on any housing unit.

Provides that the Washington State Energy Code may not have window requirements so stringent as to prohibit windows in rooms even if the resulting energy consumption would exceed the required annual net energy consumption reductions.

Requires any change to the Washington State Energy Code for residential buildings to have a home affordability cost analysis provided by the State Building Code Council to determine whether the changes increase or decrease the cost of accessing housing. Allows the State Building Code Council to contract with a public or private organization to conduct the home affordability cost analysis.

Provides that annual net energy consumption reduction and net-zero ready requirements for residential and nonresidential buildings must not result in decreased reliability of the energy grid as determined by the Department of Commerce in consultation 14 with the Utilities and Transportation Commission.

Requires the Washington State Energy Code for residential buildings to allow the use of gas fireplaces or secondary heat sources in residential buildings for backup heat in the event of a power outage.

Strikes the underlying bill and inserts findings from the Legislature related to net-zero energy readiness and annual net energy consumption. Inserts a finding from the Legislature that strengthening the energy code must be an industry-driven approach and not mandated by the government.