Decarbonization and energy assistance for low- and moderate-income ratepayers were a large focus of the Legislature again this year.

Legislators expanded the authority of the Department of Commerce to provide higher incentive payments to covered building owners who comply with the State Energy Performance Standard before the required dates (HB 1976). The standard applies to tier 1 and 2 commercial buildings.

Tier 1 covered commercial buildings include buildings whose sum of nonresidential, hotel, motel, and dormitory floor areas exceeds 50,000 square feet, excluding any parking garage area. Tier 1 buildings must begin complying with requirements by June 1, 2026, with a graduating schedule of additional square feet every year until June 2028.

Tier 2 covered commercial buildings are those between 20,000 and 50,000 square feet and multifamily residential buildings larger than 20,000 square feet. Tier 2 building owners must comply by July 1, 2027, and provide compliance plans to the state every five years.

Also, $4,000,000 in Climate Commitment Act funding was appropriated to AWC to provide grants to cities with qualifying tier 1 and 2 buildings. The grant dollars will be used to assess current energy performance and determine the approximate costs of facility and system upgrades to meet the state’s energy performance standards. AWC will be responsible for submitting a report to the Legislature detailing current energy performance of each city-owned tier 1 and 2 building for which an energy audit is completed.

Lastly, budget writers appropriated $300,000 to the Department of Health (DOH) to explore the need for and feasibility of providing a statewide low-income water utility assistance program. The study will examine existing programs, including those at the local, state, and federal levels, and collect data on the need for water-related assistance programs. It will also address intake coordination and data sharing across statewide programs serving low-income households, program eligibility, multilingual services, outreach and community engagement, program administration, funding, and reporting. DOH must submit a report to the Legislature no later than June 30, 2025.