Gather a workgroup to develop a framework for modernizing or replacing the Energy Independence Act (I-937) so that it aligns with Washington’s clean energy and emissions reductions goals.

The current framework in I-937 focuses on energy efficiency acquisition and a 15% renewable portfolio standard requirement. A new framework could expand focus on load flexibility, distributed generation and storage, and improved grid utilization as enablers of clean buildings and key components of a modernized grid. A workgroup could consider options such as:

• A demand-side procurement target that combines existing targets for conservation with new targets for load flexibility and behind-the-meter generation and storage.
• Grid utilization metrics and improvement targets that drive focus on non-wires alternatives, following similar 2026 legislation in Virginia.
• Expanding conservation acquisition to explicitly include additional methods of acquiring conservation such as funding upgrades through Inclusive Utility Investment (IUI) and pursuing beneficial electrification.
• Removing the renewable portfolio standard requirement starting in 2030 when the Clean Energy Transformation Act's (CETA) greenhouse gas neutrality requirement phases in to reduce administrative burden on utilities and streamline overlapping     policies.
• Replacing the renewable portfolio standard requirement with a load flexibility requirement.

One or more of these changes could align utility planning, incentives, and customer programs with building decarbonization and development of distributed energy resources. Requirements should balance prescription with flexibility to allow utilities to pursue the strategies that most effectively advance clean buildings.

The Energy Independence Act, which was instituted in 2007, was designed before grid flexibility, Distributed Energy Resources (DER)s, and building decarbonization were central features of Washington’s energy goals and systems. Modernizing the requirements creates alignment across state policies and encourages utilities to fully leverage existing grid infrastructure and to invest in buildings and DERs as grid resources.

In planning for and implementing increased demand-side resources and grid utilization, utilities should:

• Ensure that measures such as heat pumps, weatherization, electrification bundles, and storage are accessible to overburdened communities, vulnerable popualtions, renters, and small businesses through financing and rebates.
• Strive to include all benefits in cost-effectiveness tests to fully capture health, comfort, resilience, and energy burden reduction benefits.
• Fund community organizations to support outreach, enrollment, and program design.
• Monitor distribution of program benefits across income groups, building types, geographic areas, etc.

2026:

• A workgroup identifies and considers ideas for updating I-937 or otherwise establishing a new framework that would align utility planning requirements with state energy and emission goals.

2027:

• The Washington State Legislature approves updates or new framework.

2028:

• The Department of Commerce and the Utility and Transportation Commission (UTC) complete rulemaking, and utilities begin planning under updated requirements.

2030 and beyond:

• Utilities implement plans with increased demand-side focus and grid utilization efforts.

2031 and beyond:

• Utilities submit relevant tracking data to the UTC and the Department of Commerce and set subsequent targets.