Initiative 2066, a ballot measure to ensure that the state’s utilities continue to provide natural gas service, was approved by voters this month in the state’s general election. As of November 12, 51.62% of voters favored the initiative (it leads with114,860 votes); 48.38% voted against. Election results will be certified on December 5, at which point the initiative will take effect.

I-2066 updates state law to:

• Require that the state’s gas utilities, including those owned by a city or town, provide natural gas service to anyone in their service area that requests it.
• Prevent cities and towns from prohibiting, penalizing, or discouraging the use of natural gas in any building.
• Prevent the state energy code from prohibiting, penalizing, or discouraging the use of natural gas in any building, such as for heating, appliances, and other equipment.
• Eliminate portions of state law that help Puget Sound Energy (PSE), Washington’s largest utility, plan its transition away from natural gas service.

The new law has both direct and indirect impacts on cities and towns. The initiative preempts city home rule authority to determine the scope of services a city or town utility provides. It also preempts cities from enacting policies to phase out the use of natural gas within their jurisdictional boundaries. Cities and towns with policies or programs that discourage natural gas use, such as construction requirements on new buildings, will be required to review, and potentially reverse, their policies.

Some cities’ greenhouse gas (GHG) reduction targets or climate resilience goals may come into conflict with the new state law. Cities and towns required to plan under the Growth Management Act can no longer assume the phasing out of natural gas to achieve their GHG emissions goals and may need to revise their planning work.

Cities may also lose funding or miss opportunities to receive funding that supports cities and their residents and business owners in switching from natural gas to electric service.

In this year’s legislative session, the Legislature enacted HB 1589, which helps PSE plan for decarbonization and tapering its natural gas service, to comply with the state’s climate and energy targets. The law does not ban natural gas in Washington.

I-2066 reverses many of the provisions of the law, including those that allow PSE to assess the potential for electrification within geographic areas and achieving cost-effective electrification for natural gas customers. It also repeals the provision allowing the utility to combine its natural gas and electric customers into one rate plan.

Opponents of the measure have indicated that they expect to file a legal challenge once the initiative is certified, likely arguing it violates the “single subject rule” and is therefore unconstitutional.