Washington State Capitol Building front north angle morning golden hour
October 2025 Updates
Washington Supreme Court Agrees to Hear Anti-Decarbonization Lawsuit
The Washington Supreme Court will hear the 2066 ballot initiative case after a lower court invalidated the initiative in March, citing the violation of the single-subject rule. Initiative 2066 sought to invalidate and prohibit various building decarbonization codes, policies, and efforts.
HEAR Program Announces New Funding
Washington’s Home Electrification and Appliance Rebates (HEAR) program offers grants to third-party administrators that allow them to provide rebates and incentives to households and small businesses for the purchase and installation of high-efficiency electric equipment and appliances. The Washington State Department of Commerce anticipates opening applications for new funding to third-party administrators this fall.
June 2025 Updates
Governor Signs Thermal Energy Bill
Gov. Ferguson signed the permanent TENs bill (SB 1514), a first-of-its-kind bill in the country. The bill brings thermal energy network companies under the jurisdiction of the Utilities and Transportation Commission, with certain exemptions. Electric utilities will be able to provide discounted rates to companies operating thermal energy networks (TENs) under certain conditions and with authorization from the UTC.
May 2025 Updates
Building Decarbonization Survives Budget Cuts
Washington state lawmakers ended a legislative session that focused largely on addressing the state budget’s $16 billion shortfall over the next four years. The final budget for the 2025-27 biennium includes support for key building decarbonization and weatherization programs, including:
- $30 million for the state’s Home Electrification and Appliance Rebates program, with proviso recommendations specifying that the program includes renters, and at least 40% of program spending for vulnerable and overburdened populations (pp. 13-14);
- $35 million for Weatherization Plus Health, including $5 million for the Community Energy Efficiency Program (pp. 25-26); and,
- $3.5 million reappropriated for the Building Energy Upgrade Navigator proviso (pp. 67-68).
Washington Establishes a Regulatory Environment for Thermal Energy Networks
Lawmakers passed HB 1514 to expand the use of thermal energy networks (TENs). This year’s work builds on the TENs pilot projects bill HB 2131 passed last session, and provides regulatory clarity for thermal energy companies by bringing them under the oversight of the Utilities and Transportation Commission (UTC), while offering exemptions for smaller systems and those already in development. Additionally, the bill allows electric utilities to offer discounted rates to TEN operators—under specific UTC-approved conditions—to enhance electrical grid efficiency.
April 2025 Updates
Anti-Decarbonization Ballot Initiative Ruled Unconstitutional
A King County Superior Court ruled that Initiative 2066 (I-2066), the anti-decarbonization initiative, which Washington voters narrowly approved in November (52%), is unconstitutional. The Court ruled that I-2066 is too broad, meaning it violates the state’s single-subject rule meant to keep initiatives simple enough for voters to understand.
I-2066 required utilities and local governments to provide gas and prevented approval of utility rate plans that end or restrict access to gas or that make access to it too costly. I-2066 also unwound changes to Washington’s energy code, approved by the state’s Building Code Council, that offer builders of homes and commercial buildings permitting incentives for choosing heat pumps. I-2066 also repealed provisions in House Bill 1589, which seeks to accelerate Puget Sound Energy’s transition away from gas. The Building Industry Association of Washington has promised to appeal the ruling.
State Budget Forecast Revised Downward
Washington will collect nearly $845M less in revenue over the next four years than projected in November’s forecast. The revenue estimates come as the state grapples with an operating budget shortfall estimated to be as much as $15B over the same four-year period.
March 2025 Updates
Permanent Thermal Energy Network Bill Advances
The bill, HB 1514, would establish the regulatory environment for thermal energy networks and has been moved to the Washington House Appropriations Committee with minimal opposition.
BDC and Its Allies Ask for Funding for a Weatherization Scale-up Pilot and Weatherization Plus Health
BDC supported a broad coalition effort to support the budget ask of $36 million for the Weatherization Plus Health program and $19.5 million for a weatherization scale-up pilot proviso.
King County Relaunches its Energize Heat Pump Installation Program
King County announced the relaunch of its Energize heat pump program, which helps low and moderate-income homes in King County install heat pumps and other clean energy technology
The updated Energize program has been expanded to include new communities and enables income-qualified single-family homeowners and renters to qualify for 100% cost coverage. The program also offers upgrades to adult family homes and family home child cares and will also fund other home energy upgrades, including heat pump water heaters, induction stoves, and insulation.
Grid Stability Bill Passed by Washington House Committee on Energy & Environment
HB 1673, a bill to improve the stability of Washington’s electric grid and ready it for grid electrification, passed the Washington House Committee on Energy & Environment along party lines. The bill would establish the Washington Electric Transmission Authority to, among other duties, support upgrading and expanding the electric transmission system and be a state-wide resource for electrical transmission.
January 2025 Updates
Governor Bob Ferguson
Washington Attorney General Bob Ferguson, a Democrat, will become the state’s first new governor in more than a decade. Ferguson had been serving as attorney general since his election in 2012. He has prioritized fiscal responsibility, public safety, and how to respond to the incoming administration of President-elect Donald Trump.
Washington Legislature
Washington lawmakers kicked off the 2025 legislative session on January 13. During the session, which is scheduled to last 105 days, legislators will work to confront the $10-$12 billion budget deficit facing the state over the next four years.
Anti-Decarbonization Lawsuits
Pro- and anti-decarbonization parties have filed competing lawsuits over the anti-building decarbonization effort, Initiative 2066, which Washington voters narrowly approved to ban state and local governments from encouraging decarbonization. The outcome of the lawsuits will decide the future of the state’s new energy-efficient building codes, along with other policies that encourage the use of heat pumps over gas furnaces.
The lawsuit filed by I-2066’s supporters calls on the court to enforce the ballot measure, by forcing a rollback of the state’s heat-pump-promoting building codes. The Building Industry Association of Washington filed its lawsuit against the Washington State Building Code Council, seeking to force the Council to quickly adopt anti-decarbonization changes through emergency rules.
The other lawsuit, filed by I-2066 opponents, seeks to overturn the ballot measure, arguing it addresses too many subjects under one initiative, violating the Washington Constitution, which limits legislation to a single subject. The city of Seattle and King County are among the plaintiffs challenging the initiative, joined by environmental groups and others.