wa-law.org > bill > 2025-26 > HB 1903 > Engrossed Second Substitute
The legislature finds that there is an urgent need for stronger policy and a new program option to secure universally accessible low-income energy bill assistance and reduce the $275,000,000 annual energy burden in Washington. Many income-eligible households do not have sufficient support. The department of commerce November 2024 study of options for a statewide energy assistance program in Washington lays out core features of a just system to expand and secure access to energy affordability measures. To address present and widening disparities in household access to energy assistance will require easier applications, safe data sharing, low barrier eligibility determinations, systematic processes for filling in gaps in the reach of existing programs, and guaranteed funding sources. The recommended program design promotes a more centralized approach to energy assistance. Key elements include those that reduce administrative burdens, but also improve the experience and likelihood that an eligible household receives assistance.
It is the intent of the legislature for the department of commerce to phase in this program across utilities and home heating fuel types, prioritizing areas of the state with a disproportionate share of low-income households in energy assistance need and where low-income monthly bill assistance programs targeted at addressing energy assistance need are lacking.
The definitions in this section apply throughout sections 3 and 4 of this act unless the context clearly requires otherwise.
"Low-income" has the same meaning as in RCW 19.405.020.
"Community action council" has the same meaning as "community action agency" in RCW 43.185C.010.
"Energy assistance" means monetary assistance, such as a grant program or discounts for low-income households, that lowers a low-income household's energy burden.
"Energy burden" has the same meaning as in RCW 19.405.020.
The statewide low-income energy assistance program is established within the department. The purpose of the program is to reduce energy burden for low-income households in Washington. The department must begin providing energy assistance through the program by October 1, 2027. The department, in consultation with the utilities and transportation commission, must write rules to implement this section.
In accordance with subsection (4) of this section, the department must establish enrollment details which must include, but are not limited to:
All low-income households are eligible to participate in the program;
Low-income households may apply directly to the program;
Low-income households may apply to the utility from which they receive service if the utility has voluntarily chosen to serve as coadministrator of the program;
Low-income households may apply through a community action council for state-funded energy assistance in partnership with the participating utility;
Low-income households may self-attest that they meet income qualifications;
The department may verify that applicants and participants meet the income qualifications, and may work with utilities and community action councils to conduct this verification;
There is no risk to eligibility based on immigration status or income self-attestation; and
The department must explore auto-enrollment of known eligible households.
The department may enter into agreements with utilities to serve as coadministrators of the statewide low-income energy assistance program for the purposes of enhancing customer engagement, facilitating enrollment of eligible customers, and sharing administrative duties with the department. Serving as a coadministrator is voluntary for utilities. If a utility chooses to be a coadministrator, the utility may also choose to be the lead coadministrator.
Subject to appropriation, the department must phase in the program across utilities and home heating fuel types, prioritizing areas of the state with a disproportionate share of low-income households in energy assistance need and where low-income monthly bill assistance programs targeted at addressing energy assistance need are lacking.
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The department must administer the program by providing funds to utilities that participate in the program. The utilities must pass these funds on to their low-income residential customers and show the energy assistance on the customers' monthly bills.
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A utility with more than 25,000 customers in the state that participates in the program must provide energy assistance to customers and then seek reimbursement from the department equal to the energy assistance provided. The department must provide reimbursement within 30 days of receipt of a reimbursement request from the utility.
A utility serving up to 25,000 customers in the state that participates in the program may request that the department provide funds for energy assistance in advance of the utility providing the energy assistance to customers. The department may provide energy assistance upfront with appropriate contractual agreements.
The discount or dollar amount that the department provides to low-income households must be tiered to provide the most energy assistance to the households with the greatest need.
The department and each utility's obligation to provide energy assistance under the statewide program is based on available funding appropriated for this specific purpose. It is the intent of the legislature that sustained funding shall be provided to meet low-income household needs from climate commitment act auction revenues or other state general fund dollars.
The department must ensure that benefit levels provided through the statewide low-income energy assistance program are not less than what a customer enrolled in their utility program received from their utility program in the previous year.
A utility participating in the statewide low-income energy assistance program may not reduce the level of low-income energy assistance, discounts, or affordability benefits it provided in the previous calendar year as a result of participation in the statewide program.
The department must submit a report to the governor and legislature that includes a program evaluation of the statewide low-income energy assistance program by July 1st in every even-numbered year. The advisory group established in section 4 of this act must advise the department on the program evaluation, which must include meaningful metrics around equitable access and overall program delivery.
The department must establish an advisory group for the statewide low-income energy assistance program, which must include, but is not limited to, members from low-income households, and at least one member each from a community organization, community action council, an investor-owned utility, and a consumer-owned utility. The advisory group must be composed of a diverse group of stakeholders and must be established by the department before program implementation to help inform program development. The advisory group must advise the department throughout program implementation and on the program evaluation required in section 3 of this act.
It is the intent of the legislature to demonstrate progress toward addressing the disproportionate impacts of home energy bills on low-income households and reduce energy assistance need consistent with the policies identified in this section.
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An electric utility must make programs and funding available for energy assistance to low-income households by July 31, 2021.
An electric utility's participation in the statewide low-income energy assistance program may supplement, but may not replace, the requirements outlined in this section.
Each utility must demonstrate progress in providing energy assistance pursuant to the assessment and plans in subsection (5) of this section. To the extent practicable, priority must be given to low-income households with a higher energy burden.
Beginning July 31, 2020, the department must collect and aggregate data estimating the energy burden and energy assistance need and reported energy assistance for each electric utility, in order to improve agency and utility efforts to serve low-income households with energy assistance. The department must update the aggregated data on a biennial basis, make it publicly accessible on its internet website and, to the extent practicable, include geographic attributes.
The aggregated data published by the department must include, but is not limited to:
The estimated number and demographic characteristics of households served by energy assistance for each utility and the dollar value of the assistance;
The estimated level of energy burden and energy assistance need among customers served, accounting for household income and other drivers of energy burden;
Housing characteristics including housing type, home vintage, and fuel types; and
Energy efficiency potential.
Each utility must disclose information to the department for use under this subsection, including:
The amount and type of energy assistance and the number and type of households, if applicable, served for programs administered by the utility;
The amount of money passed through to third parties that administer energy assistance programs;
The amount of money used to mitigate rate impacts to low-income customers and a description of any other benefits provided to ratepayers from the sale of allowances as required under RCW 70A.65.120(4), if applicable; and
Subject to availability, any other information related to the utility's low-income assistance programs that is requested by the department.
The information required by (b) of this subsection must be from the electric utility's most recent completed budget period and in a form, timeline, and manner as prescribed by the department.
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In addition to the requirements under subsection (4) of this section, each electric utility must submit biennially to the department an assessment of:
The programs and mechanisms used by the utility to reduce energy burden ;
The outreach strategies used to encourage participation of eligible households, including consultation with community-based organizations and Indian tribes as appropriate, and comprehensive enrollment campaigns that are linguistically and culturally appropriate to the customers they serve in vulnerable populations; and
A cumulative assessment of program participation rates and funding levels compared to what is needed to meet energy assistance need.
The assessment required in (a) of this subsection must include a plan to improve the effectiveness of the assessed mechanisms and strategies toward meeting the energy assistance need.
A consumer-owned utility may enter into an agreement with a public university, community-based organization, or joint operating agency organized under chapter 43.52 RCW to aggregate the disclosures required in this section and submit the assessment required in subsections (4) and (5) of this section.
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The department must submit a biennial report to the legislature that:
Aggregates information into a statewide summary of energy assistance programs, energy burden, and energy assistance need;
Identifies and quantifies current expenditures on low-income energy assistance; and
Evaluates the effectiveness of additional mechanisms for energy assistance including, but not limited to, customer rates, a low-income specific discount, system benefits charges, and public and private funds.
The department must also assess mechanisms to prioritize energy assistance towards low-income households with a higher energy burden.
Nothing in this section may be construed to restrict the rate-making authority of the commission or the governing body of a consumer-owned utility as otherwise provided by law.