Washington’s electric utilities may see new loan granting authority to residential customers under a proposal from Sen. Liz Lovelett (D–Anacortes). SB 5570 establishes a grant program for electric utilities looking to establish loan programs for customers to make energy efficiency improvements to their homes.

Recognizing that energy efficiency improvements represent long-term savings for customers but may require costly upfront investments, the bill creates the Electric Utility Energy Efficiency Capitalization Grant program within the Department of Commerce. Electric utilities may apply to Commerce for funding to create an energy efficiency revolving loan program, and thereby offer residential loan options for low-income and moderate-income customers who plan to make residential energy upgrades.

The loans must be interest free. Eligible applicants include homeowners and renters; however, priority for loans must be given to properties in overburdened communities as identified by the state’s environmental disparities map. Eligible projects include weatherization, window replacement, and repairs needed to generate energy savings.

The public utility tax does not apply to funds due and payable under the grant program.