HB1391

HB1391 – Creating a state-wide building energy upgrade assistance program.
Prime Sponsor – Representative Ramel (D; 40th District; Anacortes and San Juans) (Co-sponsors Doglio, Duerr, Berry, Pollet, Reed – Ds)
Current status – Had a hearing in the Senate Committee on Environment, Energy and Technology March 22nd and 24th.
Next step would be – Action by the committee.
Legislative tracking page for the bill.

In the House – Passed
Completed a continued hearing in the House Committee on Environment and Energy January 31st. Replaced by a substitute by the prime sponsor and passed out of committee February 9th. Referred to Appropriations, had a hearing there February 21st, was replaced by a second substitute, amended, and passed out of committee February 23rd. Referred to Rules, and passed by the House February 28th.

Substitute –
There’s a staff summary of the changes made by the substitute at the beginning of it. The second substitute specified that the program would have to include resources for renters and that its energy efficiency projects did not have to include weatherization; the amendment would make the bill null and void if it wasn’t funded in the budget.

Summary –
The bill would authorize the Department of Ecology to create a statewide building energy upgrade navigator program, in collaboration with the WSU Energy Office. The program would provide a statewide resource to assist building owners with electrification services and energy efficiency services and with funding for those, as well as providing other assistance in the reduction of greenhouse gas emissions, job creation, business opportunities, and workforce development in the sector. By March 1st, 2024, Ecology would be obliged to contract with an administrator or administrators, selected through a competitive process, to implement the program. Contracts could not be for more than five years, and would have to include sufficient performance metrics to let the department and the Legislature evaluate the program’s energy savings, greenhouse gas emissions reductions, consumer cost savings, wage and employment impacts, and customer satisfaction. The bill would convene a technical advisory group including a representative from each of a list of stakeholders to provide ongoing guidance to the program, including recommendations on continuously improving and growing it, addressing any gaps in its design and implementation, addressing split incentives, and incorporating the Department of Health’s environmental health disparities mapping tool into its work. The advisory group would provide an annual report on the program’s progress to the Legislature.

The program would have to provide outreach and deliver energy services to owner-occupied and rental residences, commercial buildings under 20,000 square feet; and single and multifamily dwellings. It would support energy efficient and emissions reductions alternatives for all types of fuel, and strive to cover all regions of the state. It would prioritize services to low-income households, vulnerable populations, and overburdened communities, including tribal communities, having considered recommendations of the UTC’s natural gas decarbonization study. It might dedicate some of its funding for these services. It would support accessible administration of programs authorized under the Inflation Reduction Act, and the integrated implementation of all relevant clean buildings programs funded by the state budget, including several currently described in the 2023 House Omnibus Appropriations Bills. It would implement a process in coordination with the Office of Minority and Women’s Business Enterprises to help customers find qualified energy contractors, including considering whether they met the program’s labor standards and reporting requirements.

The program’s outreach to customers would have to include creating and maintaining updated educational and marketing materials, including advice about all relevant funds and
financial assistance available from Federal, State, local, and energy utility programs. (It would be required to focus on this outreach about funding first.) It would also provide assistance with performing energy audits to provide recommendations to customers on a wide range of cost-effective energy and health improvements, including weatherization, appliance upgrades, electrification, smart meters, solar photovoltaic panels and other on-site sources of renewable energy, electric vehicle charging; and smart thermostats. It would provide community outreach in collaboration with Ecology’s programs to reach and serve underserved communities.

The program’s energy services for customers would have to include help in finding qualified contractors to implement audit recommendations; recommendations for programs that customers might be eligible for based on their income, and assistance with securing financing. Program administrators would have to develop community workforce agreements between labor representatives and contractors for the work performed on projects funded by the program, considering the size and complexity of projects, number of trades and crafts anticipated to be used, the availability of trained and skilled workers, and the location of projects. Any community workforce agreement would have to establish goals for labor hours or percentages of work to be performed by underrepresented groups, by local residents, and by state registered apprentices. They’d have to specify that workers performing work on projects under a community workforce agreement were paid a wage rate that was at least equivalent to the prevailing wage rate of workers, laborers, or mechanics in the same trade or occupation in the locality in which the work was being performed.

The program would also identify statewide workforce and contractor training needs and develop training. It might directly administer incentives and rebates for programs when directed to do that by Ecology, but would not provide any financial or technical assistance for projects including installation of new fossil fuel appliances. The administrator might develop a database portal to identify and track the locations of services provided, customer interactions, and performance metrics for completed work.

Ecology would provide a report on the program to the Legislature every other year, covering the implementation of the navigator program and community workforce agreements. It would include details on the monetary, greenhouse gas, and energy savings achieved; the savings to investment ratio achieved for customers; the wage levels of jobs created; the utilization of state registered preapprentice and apprenticeship programs; the efficiency and speed of delivery of services; and the public health benefits, including indoor and outdoor air quality improvements and increased access to cooling for climate resilience. It would also have to include recommendations for additional energy efficiency, electrification, and distributed energy programs for customers to maximize deployment of energy efficiency services, and to achieve higher rates of penetration and economies of scale through implementing multiple measures simultaneously.