• Launch a Washington Clean Buildings Market Transformation Hub within the Department of Commerce's Energy Division. With the goal of rapid implementation, the Market Transformation Hub would identify market transformation priorities for Washington and coordinate efforts with entities such as the Northwest Energy Efficiency Alliance (NEEA) and Washington Builds.
• The focus of the Market Transformation Hub is to achieve state energy goals and increase the scale/pace of the transition by accelerating adoption of technologies that are part of key retrofit packages in residential and commercial buildings, like residential heat pumps, onsite solar and battery storage, demand response, commercial heat pump rooftop units, high-efficiency ventilation (such as dedicated outdoor air systems), and modern controls.
• The Market Transformation Hub can determine what initiatives are needed in Washington, account for and leverage the comprehensive work already being done by NEEA, and fill remaining gaps directly—such as leading bulk purchasing of key technologies—or by partnering with NEEA and others. For example, the Market Transformation Hub could provide funding to NEEA to expand and tailor its current market transformation initiatives to increase impact in Washington. It could also pursue additional partnerships with Washington Builds, utilities, local governments, labor organizations, and others to ensure initiatives align with Washington's building decarbonization and Distributed Energy Resource (DER) imperatives.

By determining essential initiatives, growing existing partnerships, and developing new market transformation capacity within the state, a state-hosted Market Transformation Hub can leverage and expand ongoing market transformation work to maximize the advancement of Washington’s policy goals. Market transformation for technologies that are part of key retrofit packages is an essential strategy to support building owners, tenants, and operators in completing mandated or voluntary building upgrades that reduce emissions, improve efficiency and health outcomes, and turn buildings into a grid resource.

It will be critical that the Market Transformation Hub includes equity goals in identified market transformation priorities, engages community organizations and tribes in designing initiatives, and coordinates with weatherization and affordable housing programs to ensure that retrofit packages can reach overburdened communities, vulnerable populations, and rural households. Market transformation must be focused on accelerated access and adoption for buildings that currently have the most limited access to clean buildings upgrades.  

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2027:

• The Washington State Legislature approves funding for a new unit at the Department of Commerce to be the Market Transformation Hub, starting with one position and an implementation budget, with the potential to expand in 2028 and beyond.

2028 and beyond: ‍

• The Market Transformation Hub collaborates with NEEA, Washington Builds, local governments, and others to identify top priorities for Washington’s market transformation efforts.

• The Market Transformation Hub acts as the central coordinator for state-led and/or funded market transformation efforts, including working with entities like NEEA, utilities, contractors, and Washington Builds to carry out market transformation initiatives.