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"NEW SECTION.  Sec. 1. (1) 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.

(2) 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.

NEW SECTION.  Sec. 2. A new section is added to chapter 43.330 RCW to read as follows:

The definitions in this section apply throughout sections 3 and 4 of this act unless the context clearly requires otherwise.

(1) "Low-income" has the same meaning as in RCW 19.405.020.

(2) "Community action council" has the same meaning as "community action agency" in RCW 43.185C.010.

(3) "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.

(4) "Energy burden" has the same meaning as in RCW 19.405.020.

NEW SECTION.  Sec. 3. A new section is added to chapter 43.330 RCW to read as follows:

(1) 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. The rules to implement this section may not require any utility to participate in the statewide low-income energy assistance program.

(2) The department must create and update a list of low-income households eligible to participate in the statewide program by June 30th on odd-numbered years.

(3) In accordance with subsection (4) of this section, the department must establish enrollment details which must include, but are not limited to:

(a) All low-income households are eligible to participate in the program;

(b) Low-income households may apply directly to the program;

(c) 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;

(d) Low-income households may apply through a community action council for state-funded energy assistance in partnership with the participating utility;

(e) Low-income households may self-attest that they meet income qualifications;

(f) 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;

(g) There is no risk to eligibility based on immigration status or income self-attestation; and

(h) The department must explore auto-enrollment of known eligible households.

(4) An electric utility may only participate in the program established under this section following an affirmative vote by the utility's governing board in the case of consumer-owned utilities or an order by the utilities and transportation commission for investor-owned utilities.

(a) The department may not, by regulation, require utilities to participate in the program established under this section.

(b) A consumer-owned utility may end its participation in the program established under this section by vote of its governing board. An investor-owned utility may end its participation in the program established under this section by order of the utilities and transportation commission. An electric utility must provide the department six months' notice before ending participation in the program established under this section.

(5) An electric utility participating in the program established under this section is deemed in compliance with the requirements of RCW 19.405.120.

(6) 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.

(7) 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.

(8)(a) Subject to appropriation, the department must administer the program by identifying the low-income customer accounts to receive assistance and the amount of assistance for each account, and 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 amount of energy assistance on the customers' monthly bills.

(b) The discount or dollar amount of energy assistance that the department provides to low-income households must be tiered to provide the most assistance to the households with the greatest need.

(c) 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.

(9) 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.

NEW SECTION.  Sec. 4. A new section is added to chapter 43.330 RCW to read as follows:

Subject to appropriation, 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 representatives of urban and rural utilities. 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.

Sec. 5. RCW 19.405.120 and 2019 c 288 s 12 are each amended to read as follows:

(1) It is the intent of the legislature to demonstrate progress toward ((making energy assistance funds available to low-income households))addressing the disproportionate impacts of home energy bills on low-income households and reduce energy burden associated with electricity use consistent with the policies identified in this section.

(2)(a) An electric utility must ((make programs and funding available))offer at least one program for energy assistance associated with electricity use to eligible low-income households ((by July 31, 2021)).

(b) An electric utility's participation in the statewide low-income energy assistance program established under chapter 43.330 RCW satisfies compliance with this section.

(3) Each utility must demonstrate progress in providing energy assistance ((pursuant to the assessment and plans in subsection (4) of this section))associated with electricity use using any combination of funds, including funds provided by the utility, public agencies, nonprofit service providers, or private donations. To the extent practicable, priority must be given to low-income households with a higher energy burden.

(((3)))(4) 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.

(a) The aggregated data published by the department must include, but is not limited to:

(i) The estimated number and demographic characteristics of households served by energy assistance for each electric utility and the dollar value of the assistance;

(ii) The estimated level of energy burden and energy assistance need among customers served, accounting for household income and other drivers of energy burden;

(iii) Housing characteristics including housing type, home vintage, and fuel types; and

(iv) Energy efficiency potential.

(b) Each electric utility must disclose information to the department for use under this subsection, including:

(i) The amount and type of energy assistance and the number ((and type)) of households((, if applicable,)) served ((for))by programs administered by the utility;

(ii) The amount of ((money))utility-provided funds passed through to third parties that administer energy assistance programs; ((and))

(iii) 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

(iv) Subject to availability, any other information related to the utility's low-income assistance programs that is requested by the department.

(c) 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.

(((4)(a)))(5) In addition to the requirements under subsection (((3)))(4) of this section, each electric utility must submit biennially to the department ((an assessment))a description of:

(((i)))(a) The programs and mechanisms used by the utility to reduce energy burden ((and the effectiveness of those programs and mechanisms in both short-term and sustained energy burden reductions))associated with electricity use;

(((ii)))(b) 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

(((iii)))(c) A cumulative assessment of ((previous funding levels for energy assistance compared to the funding levels needed to meet: (A) Sixty percent of the current energy assistance need, or increasing energy assistance by fifteen percent over the amount provided in 2018, whichever is greater, by 2030; and (B) ninety percent of the current energy assistance need by 2050))program participation rates and funding levels compared to what is needed to meet energy assistance need.

(((b) The assessment required in (a) of this subsection must include a plan))(6) The department must collate and assess the information provided in subsections 4(b) and 5 of this section and develop recommendations for ways to improve the effectiveness of ((the assessed))outreach and enrollment mechanisms and strategies toward meeting the electric energy assistance need. The recommendations developed under this subsection must be included in the department report required by subsection (8) of this section.

(((5)))(7) 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 (((3)))(4) and (((4)))(5) of this section.

(((6)))(8)(a) The department must submit a biennial report to the legislature that:

(i) Aggregates information into a statewide summary of energy assistance programs, energy burden, and energy assistance need;

(ii) Identifies and quantifies current expenditures on low-income energy assistance; and

(iii) Evaluates the effectiveness of additional ((optimal)) mechanisms for energy assistance including, but not limited to, customer rates, a low-income specific discount, system benefits charges, and public and private funds.

(b) The department must also assess mechanisms to prioritize energy assistance towards low-income households with a higher energy burden.

(((7)))(9) 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."