Environmental Developments to Watch in Washington State
Washington State's 2026 legislative session repealed sales and use tax exemptions for refurbished data centers and established a new Electric Transmission Authority. The Transmission Authority aims to expedite construction of electric infrastructure to meet growing demand, including from data centers, and support clean energy goals.
During Washington State's 2026 legislative session, lawmakers continued to advance the state's environmental policy agenda, focusing on climate, clean energy, and environmental protection. One key legislative outcome directly impacting the data center industry was the enactment of SB 6231, which repeals existing retail sales and use tax exemptions for refurbished data centers, effective July 1, 2026. This means owners and operators of existing data centers will face increased costs for maintenance and infrastructure upgrades, although exemptions for new or expanded data centers' original equipment will remain.
Additionally, to address the increasing demand for electricity, partly driven by data centers, and to meet ambitious greenhouse gas reduction goals, the legislature enacted SSB 6355. This bill establishes the Washington Electric Transmission Authority, which will be governed by a 10-member board and must be established by 2027. Its purpose is to expedite the construction of electric transmission infrastructure across the state. These legislative actions reflect a broader state strategy to implement clean energy goals and manage the impact of regulated entities, including the tech sector.