• Generate a new, long-term source of clean buildings transition funding with a small utility bill surcharge.
• A charge of $.003 per kWh could raise ~$246 million annually in Washington when applied to commercial and industrial customers and 80% of households, while adding $2.87 to the average monthly residential bill. A charge of $.005 per kWh to the same end users could raise ~$400 million annually with an increase of $4.78 to the average monthly residential bill.
• The funding could be used to invest in market transformation initiatives to accelerate adoption of key technologies like heat pumps, high-efficiency HVAC systems, and Distributed Energy Resources (DERS); to fund Washington Builds; to develop and maintain a tracking dashboard of statewide progress towards clean building goals; and to supplement direct grants and subsidies for upgrades.

With Climate Commitment Act (CCA) revenues expected to decline over time and many uses competing for those limited funds, a new source is needed to establish funding dedicated to buildings. Long-term, stable funding will enable scaled planning and a pivot to investing in market transformation through Washington Builds while still supporting existing programs.

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To ensure that a utility bill surcharge does not deepen affordability issues, customers on a bill assistance program should be excluded. Renewing the surcharge every five years would also add an accountability mechanism to protect customers.

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2027:

• The Washington State Legislature approves a five-year utility bill charge and dedicates the revenue to Energy Programs in Communities (EPIC) to be managed by the Department of Commerce.

2028:

• Collected funds are deposited to the Department of Commerce.
• Revenue is distributed to Washington Builds and to fund clean buildings market transformation, grant programs, and a dashboard to track the clean building transition against state building sector goals.

2029 and beyond:

• Funding continues, with renewal decided by the Washington State Legislature every five years.

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