SB5570 – Authorizing electric utilities to establish revolving energy efficiency loan programs.
Prime Sponsor – Senator Lovelett (D; 40th District; Anacortes) (Co-Sponsors Trudeau, Hasegawa, Keiser, Nguyen, Nobles, Pedersen, Randall, Rolfes, Saldaña, Valdez, and C. Wilson – Ds)
Current status – Had a 2023 hearing in the Senate Committee on Environment, Energy & Technology February 8th. Died in committee at cutoff. Apparently reintroduced in 2024, and had a hearing in that committee January 9th. Amended and passed out of committee that day; referred to Ways & Means.
Next step would be – Scheduling a hearing.
Legislative tracking page for the bill.

In the Senate 2024 –
There’s a staff summary of the changes made in the amendment.

Summary –
The bill would create an Electric Utility Energy Efficiency Capitalization Grant program in the Department of Commerce, if funds were specifically appropriated for it. Electric utilities would be able to apply to the Department for funding to establish a revolving loan program making loans to low and middle income households for energy efficiency and weatherization projects, including repairs needed to achieve energy savings. A list of participating contractors would be provided as part of the loan application process, and a separate billing system or an on-bill repayment program would be provided. The loans would be interest free and secured with a lien on the property, and priority in awarding them would be given to properties in overburdened areas. The funds would be exempt from the public utility tax, and all loan repayments would have to be deposited into the revolving loan account.

Deferred loans for income-qualified customers owning and occupying their home could cover the full cost of a project. They’d have to allow repayment to be deferred until the home is sold, when the loan balance would be paid as part of the sales transaction; and would have to allow customers to qualify based on their payment history with the utility.

Forgivable loans could be made to property owners with income-qualified tenants. These would require an energy audit of the property. It would have to be continuously occupied by income-qualified tenants for five years after the upgrades; and the owner would have to keep the rent during that period within the fair market rent determined by HUD. If the owner failed to meet those requirements, the loan balance would be transferred to a new loan and become due on the sale of the home.

A utility could contract with a third party to implement the program, and could apply energy savings from cost-effective measures financed through a loan program toward achieving its conservation acquisition targets under the Energy Independence Act.