(1) The department must: (a) Establish a process to award grants on a competitive basis to provide grants to financial institutions for the purpose of creating credit enhancements, such as loan loss reserve funds as specified in RCW
43.330.330 and
43.330.350, and consumer financial products and services that will be used to obtain energy efficiency services; and (b) develop criteria, in consultation with the department of financial institutions, regarding the extent to which funds will be provided for the purposes of credit enhancements and set forth principles for accountability for financial institutions receiving funding for credit enhancements.
(2) The department must:
(a) Give priority to financial institutions that provide both consumer financial products or services and direct outreach;
(b) Approve any financing mechanisms offered by local municipalities under RCW
43.330.350; and
(c) Require any financial institution or other entity receiving funding for credit enhancements to:
(i) Provide books, accounts, and other records in such a form and manner as the department may require;
(ii) Provide an estimate of projected loan losses; and
(iii) Provide the financial institution's plan to manage loan loss risks, including the rationale for sizing a loan loss reserve and the use of other credit enhancements, as applicable.