Washington’s electric utilities may access new funding to provide loans to residential customers for energy efficiency improvements under a proposal from Sen. Liz Lovelett (D–Anacortes). SB 5570 would establish a funding program for electric utilities looking to create a loan program for customers to make energy efficiency upgrades to their homes.

Recognizing that energy efficiency improvements represent long-term savings for customers but may require costly upfront investments, the bill would create the Residential Energy Efficiency Capitalization Grant Program within the Dept. of Commerce. Electric utilities could 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.

If electric utilities choose to establish a revolving loan program, there are a number of requirements they must meet. For instance, the loans must be interest free. Eligible applicants include homeowners and renters; however, priority for loans must be given to properties in overburdened communities. Eligible activities include energy audits, upgrades, and retrofits such as insulation upgrades and window replacement, needed to generate energy savings and improve the comfort of buildings.

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

SB 5570 is a revised version of a bill introduced in the same committee last year.

Dates to remember

SB 5570 is scheduled for a hearing in the Senate Environment, Energy & Technology Committee on Tuesday, January 9 at 1:30 pm.