2023 Biennial Energy Report — Washington State Department of Commerce (March 22, 2023)
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Summary
The 2023 Biennial Energy Report, a report to the Legislature from the Energy Division of the Washington State Department of Commerce, dated March 22, 2023 and prepared as required per RCW 43.21F.045(2)(h). It gives the governor and Legislature an analysis of energy issues and an update on recommendations made in the 2021 State Energy Strategy. Its table of contents lists chapters on an equitable, inclusive and resilient clean energy economy, emergency management and cybersecurity, the state's electricity supply, transportation, buildings and natural gas, and industry and renewable fuels, plus Appendix A, a Combined Progress Assessment. The executive summary recites emission limits of 45% below 1990 levels by 2030, 70% by 2040 and 95% with net zero emissions by 2050, and lists the Healthy Environment for All (HEAL) Act and a $16.9 billion transportation budget.
Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used
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“2023 Biennial Energy Report — Washington State Department of Commerce (March 22, 2023).”
Original at app.leg.wa.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2023-2023biennialenergyreport-final-approved-97baa6be-4da3-4d0a-9f6a-efab82/
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2023 Biennial Energy
Report
Required per RCW 43.21F.045(2)(h)
March 22, 2023
ENERGY DIVISION Report to the Legislature
Interim Director Kendrick Stewart
V3.2
Acknowledgments
Washington State Department of Commerce Melanie Roberts, PNNL
Michael Furze, Assistant Director, Energy Division Shana Peschek, Machinists Institute
Glenn Blackmon, Managing Director, Energy Policy
ENERGY DIVISION
Stephanie Celt
1011 Plum St. SE
Nora Hawkins
P.O. Box 42525
Johanna Hanson
Olympia, WA 98504-2525
Steven Hershkowitz
Eli King www.commerce.wa.gov
Elizabeth Osborne
Aaron Peterson Questions about this report?
Steven Polunsky Contact Liz Reichart, Report lead
Liz Reichart liz.reichart@commerce.wa.gov
Austin Scharff
For people with disabilities, this report is available on
request in other formats. To submit a request, please
Special thanks to reviewers:
call 360-725-4000 (TTY 360-586-0772)
Hans Berg
Luke Howard
Jennifer Grove
Angela LaSalle
Nick Manning
Ian Kinder-Pyle
Amanda Rains
Emily Salzberg
Sarah Vorpahl
Hanna Waterstrat
Becky Kelley, Office of Governor Jay Inslee
Anna Lising, Office of Governor Jay Inslee
Joel Creswell, Department of Ecology
Andrew Hayes, Department of Ecology
Stacey Waterman-Hooey, Department of Ecology
Rebecca Sears, Department of Ecology
Jessica Czajkowski, DNR
Flora Lee, DNR
Neiri Carrasco, UTC
Jason Lewis, UTC
Hanna Navarro, UTC
Jessica Koski, Washington BlueGreen Alliance
Eileen Quigley and Ruby Moore-Bloom, Clean
Energy Transition Institute (CETI)
Michelle Detwiler, Renewable Hydrogen Alliance
2023 BIENNIAL ENERGY REPORT
Table of Contents
Executive summary...................................................................................................................................... 2
Build an equitable, inclusive, and resilient clean energy economy ................................................................. 7
Emergency management and cybersecurity ............................................................................................... 16
Transforming Washington's electricity supply ............................................................................................ 18
Decarbonize transportation and use energy more efficiently ....................................................................... 32
Buildings and natural gas ........................................................................................................................... 46
Industry and renewable fuels ..................................................................................................................... 60
Appendix A: Combined Progress Assessment ............................................................................................ 77
2023 BIENNIAL ENERGY REPORT 1
Executive summary
The 2021 State Energy Strategy (SES) was developed and published by the State Energy Office at the
Washington State Department of Commerce, in collaboration with stakeholders and members of the public.1
Designed to provide a roadmap for meeting the state’s need for affordable and reliable energy supplies and its
greenhouse gas emission limits,2 the strategy outlines the path to a clean, inclusive energy economy by 2050.
After the publication of each SES, Commerce develops an update as required by RCW 43.21F.045(2)(h). This
2023 Biennial Energy Report provides the governor and Legislature an analysis of energy issues affecting
Washington residents and businesses, along with an update on recommendations made in the 2021 SES.
Legislative mandate
The State Energy Office, as established in RCW 23.21F, is required to submit a biennial report updating the
Legislature on state energy strategy per RCW 43.21F.045(2)(h), which directs the Department of Commerce to:
"… prepare and transmit to the governor and the appropriate committees of the legislature a report on the
implementation of the state energy strategy and other important energy issues, as appropriate."
How to read this report
From the 2021 SES, Commerce provides updates and analysis in the following areas:
Build an equitable and inclusive clean energy economy
Energy in rural Washington
Delivering emergency management and cybersecurity
Transforming Washington's electricity supply
Decarbonize transportation and use energy more efficiently
Buildings and natural gas
Industry and clean fuels
Each subject area contains tables that provide updates on a subset of SES recommendations, or amended
recommendations, which reflect the changing nature of the energy landscape in the state. These assessments
appear throughout the report in an attempt to show Washington's progress against the 2021 recommended
actions. All tables appear in Appendix A.
1 2021 State Energy Strategy - Washington State Department of Commerce
2 Enacted in 2020, the law commits Washington to limits of 45% below 1990 greenhouse gas emission levels by 2030, 70% below 1990
levels by 2040, and 95% below 1990 levels with net zero emissions by 2050.
2023 BIENNIAL ENERGY REPORT 2
Example of a progress assessment
2021 SES recommendation 2023 update
Expand the scope of the building performance Chapter 177, Laws of 2022 (SB 5722) established a new tier
standard to include buildings with less than 50,000 of covered buildings under the Clean Buildings Act (2019),
square feet with a stepped path to low energy and which includes non-residential buildings between 20,000 and
zero carbon by 2050. 50,000 square feet, and multifamily residential buildings over
20,000 square feet.34 Managers and owners at these
buildings will be responsible for benchmarking, operations
and maintenance, and developing an energy management
plan.
While this biennial update is primarily organized by how energy is used in the economy (that is, end-use
sectors), several cross cutting issues arise in more than one sector. The report features four crosscutting
areas, which are highlighted throughout this report in color-coded boxes corresponding to the following areas:
State agencies leading by example Workforce and clean energy jobs
Energy resilience Environmental justice
Legislative accomplishments
Significant change has occurred in Washington over the past two years. In the past two legislative sessions,
transformative, first-in-the-nation policies have passed across multiple sectors, which prepares the state to
reduce greenhouse gas emissions and make our communities more resilient to climate impacts.
Those accomplishments include:
The passage of the Healthy Environment for All (HEAL) Act5 is a historic step toward eliminating
environmental and health disparities among communities of color and low-income households.
The Climate Commitment Act6 established a bold economy-wide cap-and-invest program to ensure
emissions decline over time, as well as measures to improve air quality in overburdened communities
highly impacted by air pollution. It also commits Washington to investing in clean energy and
transportation, communities’ climate resilience, natural climate solutions, and clean energy jobs.
For the first time in its history, the Legislature passed a transformative $16.9 billion transportation budget
centering climate objectives and low-carbon investments in historically underfunded communities.7
Expanding the capacity of Washington’s Energy Resilience and Emergency Response Office (EREMO) in
response to evolving emergency response management concerns of longer and increasingly intense
wildfire seasons.
3 1257-S3.SL.pdf (wa.gov)
4 5722-S.SL.pdf (wa.gov)
5 Chapter 314, Laws of 2021
6 Chapter 316, Laws of 2021
7 Move Ahead Washington Transportation Budget, including Move Ahead Washington, set to be approved — Washington Public Ports
Association (washingtonports.org)
2023 BIENNIAL ENERGY REPORT 3
Expanding the first statewide building performance standard in the nation,8 meaning greater energy
efficiency for hundreds of thousands of existing commercial and multifamily buildings.
On top of this, Washington passed several of the county’s most energy-efficient standards for household
appliances (Chapter 19, Laws of 2022).
These are important, foundational policy actions, but there remains much work to meet the deep
decarbonization pathway modeled in the 2021 SES. The strategy's deep decarbonization pathway analysis
searches for the lowest cost path to reduce emissions based on what we know today about technologies,
costs, and markets. Washington is grappling with the opportunities of green hydrogen, the difficulties of
ensuring everyone benefits from this transition, and the opportunities and challenges around other clean, local
fuels. The Department of Ecology's rulemaking requiring all new cars purchased in Washington after 2035 be
zero-emission means the state requires an additional dramatic market transformation in the next decade.9
Our state and local governments frequently lack the resources to decarbonize fleets and retrofit buildings at
the pace required by statute and executive order. All of this electrification must be underpinned by resource
adequacy across the region’s generation and transmission systems, which necessitates time, investment, and
reorganization.
This biennial update acts as a gap analysis that looks ahead and prioritizes strategic recommendations for the
next biennium and beyond. The scope of this report reflects the constantly changing and evolving landscape of
energy decarbonization.
8 Clean Buildings Performance Standard
9 Department of Ecology Rulemaking
2023 BIENNIAL ENERGY REPORT 4
Successes and further work
As we look ahead to continue implementing the 2021 SES, Washington stakeholders must focus on the
following areas in order to achieve net zero emissions by 2050.
Serving communities
Climate change will inflict the greatest harm on already marginalized communities, including
people of color, tribes, rural areas, and low-income households. Absent deliberate and committed
efforts, the anticipated clean energy transformation could leave these communities worse off.
Successes Next steps
Enactment and implementation of HEAL Act Examine clean energy policies for equity impacts
in development and during implementation
Provide funding for communities to participate in
the clean energy transformation
Support workers to ensure they have the skills for
clean energy jobs and adopt policies to protect
workers in transition
Electricity
Washington is on the way to eliminating greenhouse gas emissions from electricity with the
implementation of the Clean Energy Transformation Act (CETA). Structural changes are needed to
ensure the capacity to provide electricity to replace fossil fuels in transportation, buildings, and industry.
Successes Next steps
Industry creation of Western Resource Adequacy Invest in new transmission capacity and
Program10 renewable generation, and coordinate with other
CETA rulemaking and initial implementation states
plans Develop distributed energy resources with smart
grid capabilities to unlock additional value to the
grid and for customers
Strengthen market mechanisms to ensure
resource adequacy and efficient electricity
markets
10 WPP (westernpowerpool.org)
2023 BIENNIAL ENERGY REPORT 5
Transportation
According to the 2021 State Energy Strategy, no sector is as important as transportation to
achieving decarbonization, nor is any as complex in its operation and governance.
Successes Next steps
Clean Fuel Standard and 2035 ZEV mandate Establish equitable grant programs for EV
Move Ahead Washington transportation funding purchase incentives
Electric vehicle charging programs and funding Establish accountability measures for meeting
Adoption of Advanced Clean Trucks EV sales targets
Develop EV charging infrastructure strategy and
roadmap
Develop strategy to reduce vehicle miles traveled
with specific targets and measures for mode
shifting
Buildings
While Washington’s codes and first-in-the-nation building performance standard have set up the
state to reduce emissions in new buildings and existing large commercial buildings, there is great
potential to reduce and eventually eliminate the use of fossil fuels to heat and power Washington’s residences,
offices, warehouses, shops, and other buildings.
Successes Next steps
Building performance standards and incentives Comprehensive transition planning to reduce and
Nation-leading state energy codes eliminate GHG emissions from fossil fuels
Expand weatherization and fuel conversion for
low-income households
Ensure state and local governments have the
resources to decarbonize their buildings
Strengthen and deepen energy efficiency
programs and standards to focus on avoiding
and reducing emissions
Industry and clean fuels
Successful industrial transformation will require more attention to industrial policy including better
information about how industry uses energy, coordination of climate policy with other jurisdictions, and
deliberate efforts to develop the skills of the state’s workforce.
Successes Next steps
Climate Commitment Act cap-and-invest Develop industrial policy to advance
program decarbonization consistent with the state's
Green hydrogen incentives and the establishment requirement for net-zero emissions by 2050
of the Office of Renewable Fuels Build workforce for a clean energy economy
2023 BIENNIAL ENERGY REPORT 6
Build an equitable, inclusive, and
Environmental justice
resilient clean energy economy The Healthy Environment for All
The 2021 State Energy Strategy (SES) was the first Washington state (HEAL) Act defines
energy strategy to specifically address equity. The Build an Equitable, environmental justice as “the fair
Inclusive, Resilient Clean Energy Economy chapter created a space treatment and meaningful
involvement of all people
within the state’s energy strategy to discuss the importance of
regardless of race, color, national
recognizing the many definitions of equity and called on governments
origin, or income with respect to
and the private sector to break from historical patterns and tropes the development,
about equitable outcomes. It specifically recognized that: implementation, and
enforcement of environmental
Equity must consider the price of energy, as well as energy laws, rules, and policies."
sufficiency and the health and economic impacts from energy
production. Environmental justice includes
addressing disproportionate
The voices of vulnerable populations and overburdened
environmental and health
communities must be intentionally sought out, respected,
impacts in all laws, rules, and
empowered, and privileged. policies with environmental
The clean energy transition will not be equitable if it benefits only a impacts by prioritizing vulnerable
few or if the costs are not fairly distributed across communities. populations and overburdened
communities, the equitable
The chapter recognized that community participation must be
distribution of resources and
incorporated as a part of the design, adoption, and implementation of benefits, and eliminating harm.
policies across all levels of government. This ensures the availability of
financial, technical, and human resources necessary for the meaningful
involvement of historically underrepresented communities. It also highlighted the importance of energy
resilience as part of energy policy and planning, and the importance of embedding equity in the design of clean
energy policies and programs.
Embracing equity requires us to identify, name, and dismantle
institutional racism, economic injustice, and oppression
Washington State Office of Equity
The 2021 SES's emphasis on equity and its impact on subsequent legislation received national recognition. A
panel of independent judges affiliated with the Energy Foundation, Union of Concerned Scientists, Vote Solar,
and World Resources Institute selected the strategy for one of six 2022 State Leadership in Clean Energy
Awards, presented by the Clean Energy States Alliance. In selecting Washington for the award, the panel of
judges said, “Washington (state) demonstrated a deep commitment to meaningful engagement and centering
equity concerns.”
The selection of the 2021 SES for a State Leadership in Clean Energy Award recognizes the leadership and
commitment of Gov. Jay Inslee, former Commerce Director Lisa Brown, the Legislature, and members of the
public who have championed equity. This leadership and commitment to equity will continue to be of utmost
importance as the state implements its clean energy policies and addresses systemic inequities.
2023 BIENNIAL ENERGY REPORT 7
The cornerstones of Washington's equitable clean energy future
This equity update reflects the passage of monumental climate protection and environmental justice laws and
the complex and often uncertain nature of policy and program implementation. It is not comprehensive, but
rather calls attention to key regulatory and policy areas in need of strengthening and policy and regulatory
gaps.
The Healthy Environment for All (HEAL) Act
The HEAL Act, an historic environmental justice law, aims to reduce environmental health disparities by
requiring seven state agencies to incorporate environmental justice principles into operations and service
delivery.
Along with other cabinet agencies, the Department of Commerce is responsible for implementing the HEAL
Act. Per the Act's requirements, covered state agencies recently adopted provisional environmental justice
community engagement plans. Implementing the HEAL Act will require agencies to incorporate environmental
justice principles into their strategic plans, prioritize environmental justice in budget and funding decisions, and
conduct environmental justice assessments on programs and policies. The Environmental Justice Council will
oversee this work. The Council is a newly formed, 16-member body appointed by the governor. Council
membership includes seats for community representatives, a youth community representative, environmental
justice practitioners, tribes, labor, and business.
Figure 1: HEAL Act timeline
2021 2022 2023
HEAL Act July 1: Commerce and Jan 1: Commerce July 1: Commerce must
passes other agencies must must incorporate prioritize EJ in budget and
adopt a community EJ into its funding decisions and
engagement plan that strategic plan conduct EJ assessments for
centers EJ Significant Agency Actions
as defined in HEAL
Next steps
Commerce will raise awareness about the agency’s provisional community engagement plan and will use the
plan to support all programs to increase meaningful engagement and inform agency work. Implementation of
the HEAL Act will continue to evolve as agencies receive further guidance from the Environmental Justice
Council and feedback from communities. The development of environmental justice (EJ) assessments and
their use in planning major new projects, grants, and policies will shape Commerce’s work and increase our
ability to contribute to equitable outcomes.
Incorporate EJ principles in strategic plans
Prioritize EJ in budget and funding decisions
Complete EJ assessments of programs and policies
Clean Fuel Standard and transportation investments
The Washington Clean Fuel Standard, which the Legislature passed in 2021, requires fuel producers sell a
product with a lower carbon intensity or invest in low-carbon fuel choices (such as electricity or local,
2023 BIENNIAL ENERGY REPORT 8
sustainable biofuels) to power transportation. By requiring fuel suppliers to reduce the carbon intensity of
transportation fuels, the Clean Fuel Standard will cut statewide greenhouse gas emissions by 4.3 million metric
tons a year by 2038, and will stimulate economic development in low carbon fuel production.
The Clean Fuel Standard also requires electric utilities to use a portion of the credit revenue generated under
the program from selling electricity to charge electric vehicles to benefit disproportionately impacted
communities.11 This will help ensure that communities bearing the greatest burden from air pollution today can
participate in the transition to electric or fuel cell vehicles. For further discussion of the Clean Fuel standard,
see the Transportation chapter.
Clean Energy Transformation Act
Washington’s 100% clean electricity law, the Clean Energy Transformation Act (CETA), requires Washington
electric utilities ensure an affordable, reliable, and equitable transition to an electricity supply free of
greenhouse gas emissions. This includes an equitable distribution of the benefits of clean energy and
reductions in burdens of vulnerable populations and highly impacted communities. In addition, the law requires
utilities demonstrate progress in making energy assistance available to low-income households.
Washington’s electric utilities passed two milestones since the 2021 SES: Submission of their first clean
energy implementation plans (CEIPs) and energy assistance assessments. Utilities submitted these items in
early 2022. Commerce, the UTC, and the Office of the State Auditor continue to review these documents with
utilities and the public. Their reviews are set to be completed in 2023.
Some initial successes from CETA implementation include:
Electric utilities selecting increasingly clean resource portfolios, which will reduce greenhouse gas
emissions and local air pollution
For the first time, electric utilities identifying communities highly impacted by climate change and actions
to mitigate economic, environmental, and health impacts to vulnerable populations and overburdened
communities
To varying degrees, investor-owned utilities and some consumer-owned utilities expanded public
participation beyond public meetings, with greater levels of public involvement and collaboration needed
from all utilities
Electric utilities submitting their first energy assistance assessments to Commerce with the first statewide
report on electric utility energy assistance programs to be published in January 2023
To varying degrees, utilities, regulators, and the public are engaging with one another on the importance of
equity and environmental justice
Preliminary findings of the challenges implementing CETA’s equity mandates include:
Inconsistent use of equity indicators and metrics across utilities, reflecting the absence of a shared
understanding of equity terms and measures
Many consumer-owned utility public input processes remaining limited to governing board hearings with
limited opportunity for input from low-income households, vulnerable populations, and highly impacted
communities
11 Department of Ecology Focus on: Clean Fuel Standard (wa.gov) (PDF)
2023 BIENNIAL ENERGY REPORT 9
Ensuring that the newly formed investor-owned utility equity advisory group represents vulnerable
populations and highly impacted communities, and that their input informs equitable decision-making and
outcomes
While the Legislature authorized funding for representation of customer interests in proceedings at the
UTC, the funds may be accessed by industrial and commercial customer groups in addition to
representatives of low-income customers, vulnerable populations, and highly impacted communities.
Most utility funded direct bill assistance programs offered by consumer-owned utilities are not universally
available to low-income households statewide
Small and rural utilities face a number of hurdles when implementing the equity portions of CETA that
larger utilities can more easily overcome
CETA is an ambitious law and its clean energy and equity requirements remain a work in progress. Utilities,
state agencies, and the public must realize equitable outcomes for low-income households, highly
impacted communities, and vulnerable populations.
Next steps
Utilities, state agencies, and the public should work together to identify best practices and lessons learned
from the first round of clean energy implementation plans and energy assistance reports.
The Legislature should assess the potential benefit of a larger role, with sufficient funding, for Commerce
to support consumer owned utilities in meeting the equity-related CETA obligations. The existing model is
one in which utilities work to meet these requirements with minimal guidance or support. An expanded
state role would have Commerce, in collaboration with utilities and the public, conduct a comprehensive
assessment of equity indicators, specific actions, potential risks, and public engagement and outreach
opportunities to assist utilities in CETA implementation.
Commerce’s first biennial energy assistance report will inform legislators and stakeholders on possible
changes and additions to energy assistance programs to reduce energy burden for low-income
households.
Hydrogen hubs and environmental justice
Washington is helping lead a proposal to the Regional Clean Hydrogen Hubs (H2Hubs) program, which is a
new federal Department of Energy funding program aimed at advancing deployment of clean hydrogen for
strategic end uses in targeted regions across the U.S. This program is part of the federal Justice40 Initiative,
meaning that 40% of benefits from the program should flow to overburdened (or "disadvantaged")
communities. While the equity and environmental justice impacts of this program are yet to be seen, DOE's
emphasis on Justice40 priorities is encouraging and aligns well with the HEAL Act, focusing on decreased
energy burden, increased energy resilience, and access to jobs for people from disadvantaged communities,
among other priorities.
To date, one of the most significant contributions Commerce has made was encouraging a diverse array of
stakeholder feedback regarding how an H2Hub proposal will be developed in Washington.
The Pacific Northwest Hydrogen Association, a public-private entity, was formed in summer 2022. Commerce,
drawing from guidance in Chapter 292, Laws of 2022 (SB 5910), helped ensure that the board and advisory
councils included tribes, unions, and environmental non-profits to share diverse perspectives on this work.
Environmental justice-focused groups in the state are not yet formally at the table. The intent is to hold space
for a representative on the board. Additionally, the hub proposal includes a robust Community Benefits Plan
that meaningfully engages communities and contributes to fulfilling expectations that this program, covered
by the Justice40 Initiative, will deliver equitable benefits from hydrogen projects and activities in the state.
2023 BIENNIAL ENERGY REPORT 10
Communities in and near the fence line of proposed projects must have the opportunity to engage with and
help shape projects and define equitable distribution of benefits.
Next steps:
Provide ongoing opportunities for meaningful community engagement during H2Hub proposal planning
and all phases of planning and reviewing proposed hydrogen projects.
Continue to hold space for EJ and community organizations on the Pacific Northwest H2 board and
advisory committees, since it is critical to have community input.
Develop and implement a Community Benefits Plan that, among other things, defines expected benefits
and minimizes or eliminates burdens to overburdened communities, so that a Pacific Northwest H2Hub
delivers Justice40 benefits to communities.
The Climate Commitment Act (2021)
The Climate Commitment Act (CCA), Washington's economy-wide cap-and-invest program, sets the most
ambitious limit on greenhouse gas emissions in the nation and invests revenues from the program into GHG
emission reduction, climate resiliency, and equity-related projects and activities. The CCA requires investing no
less than 35%, with a goal of 40%, of program revenues to benefit vulnerable populations in overburdened
communities, along with a minimum of 10% for projects supported by tribes. Expenditures of CCA revenues
need to undergo environmental justice assessments and will be reviewed by the Environmental Justice
Council.
The law includes additional pollution protections for overburdened communities highly impacted by air
pollution. It requires the Department of Ecology to expand air monitoring networks in these communities. Then,
Ecology is tasked with setting air quality targets for these areas and adopting additional standards and
regulations to improve air quality.
The program has a gap in its GHG emissions coverage: emissions-intensive, trade-exposed (EITE) businesses.
EITE facilities face a particular challenge in that their emissions intensity correlates to a need to acquire a
higher number of allowances under the CCA, while their trade exposure means that paying for their emissions
could contribute to making their products more expensive than comparable products produced in other states
or countries without such costs. The risk of the CCA causing EITE facilities to move their production – and
emissions – to other jurisdictions (known as leakage) led to provisions in the bill that provide no cost
allowances with a low reduction curve in the program's early years.
As written, EITEs receive no-cost allowances covering 94% of their mass-based emissions baseline through the
compliance period beginning 2031; then, the trajectory is undefined. Gov. Inslee, members of the Washington
State Legislature, Ecology and other state agencies, along with environmental justice and climate advocates,
continue to raise concerns about the law’s provisions for EITE businesses. If left unaddressed, these
provisions will not reduce emissions in line with state’s statutory 2040 and 2050 greenhouse gas emissions
limits.
Ecology will convene an EITE work group to advise on next steps that will enable these industries to comply
while supporting clean manufacturing. This process is expected to begin in 2023, and must conclude in 2026.
These efforts to tackle industrial GHG reductions, alongside additional progress on local air quality
improvements, will contribute to implementation of the CCA in ways that do not leave pollution “hotspots” that
fail to address disproportionate environmental health impacts.
2023 BIENNIAL ENERGY REPORT 11
Next steps
Next steps related to EITEs include measures to support lower-carbon manufacturing, such as through
addressing embodied carbon, fuel switching opportunities for industrial facilities, and more. These are
discussed in the Industry and renewable fuels chapter.
Energy and rural Washington
Climate change, the costs of energy services, and the opportunities of clean energy transformation affect rural
areas in multiple ways. All communities need a strong economy that provides good jobs, better internet
broadband services, easier access to energy efficiency services and clean energy sources, affordable and
reliable transportation services, and resilient energy systems.
Rural communities play a vital role in the state's clean energy transition. An equitable transition will reflect the
diverse experiences and needs of rural communities as consumers and producers of clean energy. Commerce
applies an equity lens to existing programs and funds, guided by the 2021 SES to ensure cross-cutting issues
are addressed. Programs will be modified and adapted, funding priorities may change, and quantifying equity
and economic benefits will be required.
State agencies are engaged in multiple efforts to improve the process of siting, permitting, and hosting rural
renewable energy projects, clean technology manufacturing, electricity transmission lines, forest and
agricultural bioenergy facilities. For further discussion of siting, see the Electricity section of this report.
Commerce is also implementing a Clean Energy Fund grant program that will provide $4.6 million for grants
related to rural clean energy innovation, dairy digesters, and tribes. To ensure greater equity in this grant
program, Commerce is increasing its outreach to stakeholders through direct contact and planned public
meetings, in addition to traditional outreach methods and related site visits. This approach is guided by
recommendations in the 2022 Rural Clean Energy legislative report, which called for greater technical
assistance, sustainable funding, and equitable access.
Commerce is also engaged in two project siting efforts: A joint Commerce and Ecology Low-Carbon Energy
Project Siting Study and the recently undertaken Least-Conflict Solar Siting on the Columbia Plateau project,
which is led by the Washington State University Energy Program. Both efforts enlisted a range of stakeholders
from cities, counties, ports, tribes and NGOs from or active in rural areas.
Next steps
The Legislature should fund Commerce to increase its engagement with rural communities and conduct
economic analysis of clean energy opportunities, costs, benefits, disparities, realities and perceptions of
energy project siting and permitting under county, Energy Facility Site Evaluation Council (EFSEC), CETA, HEAL,
and related laws.
This effort is needed to ensure local input is gathered, overburdened communities are not overlooked, and a
wide array of stakeholders are engaged. The economic analysis will aid in quantifying CETA's incremental
steps and its effects across rural Washington. As an initial step, Commerce conducted a stakeholder
engagement exercise in seven rural counties in June 2022 and compiled the results to guide future rural
engagement work through the identification of issues related to the siting and permitting of energy projects
and the implementation of CETA.
2023 BIENNIAL ENERGY REPORT 12
Clean Energy Fund (CEF)
The Clean Energy Fund (CEF) was created in 2013 by the Legislature to fund projects that provide a public
benefit to the people of Washington through the development and deployment of clean energy technologies.
CEF projects save energy and lower energy costs, reduce harmful air emissions, or otherwise increase energy
independence for the state.
The Legislature has provided $231 million in biennial appropriations to the CEF. This catalyzed matching
investments from numerous diverse entities, unlocking millions of dollars. These public-private partnerships
accelerated innovations in energy storage and renewable energy generation, grid modernization,
decarbonization of the transportation sector, and electrification of buildings, which have helped Washington
make progress toward the state’s clean energy goals.
In 2020, Commerce convened the Energy and Climate Policy Advisory Committee (ECPAC) pursuant to the
Clean Energy Transformation Act (CETA). The report sent to the Legislature in December 2020 provided
recommendations for how to best deploy the Clean Energy Fund equitably and fairly to meet the state's climate
goals and support the recovery and competitiveness of the Washington economy.
Over the past two years, Commerce has worked to implement these recommendations, particularly around
supporting innovation, encouraging collaboration, and increasing equitable access to funds. CEF programs like
Research, Development and Demonstration (RD&D), Grid Modernization, and Electrification of Transportation,
among others, have incentivized the research and development of new and emerging technologies needed to
transform economic sectors and reduce emissions from the state’s key industries. Since 2021, these
programs have also leveraged recommendations from ECPAC and the 2021 State Energy Strategy by
prioritizing and incentivizing partnerships among the private, public, and non-profit sectors.
In an effort to foster innovation and learning, reduce barriers faced by smaller applicants and reach more
beneficiaries, the most recent rounds of CEF programs prioritize collaborations among small and large
research institutions, tribes, utilities, businesses, and local governments through scoring criteria. This has
resulted in job growth and creative partnerships across sectors to develop new technologies, and improve grid
resilience and transportation systems.
Lowering barriers to entry
CEF is also attempting to achieve the equity goals of the 2021 State Energy Strategy by increasing stakeholder
engagement to inform the grant program design, reserving funding for tribes, incorporating equity criteria into
scoring considerations, and implementing actions to dismantle the most common barriers faced by rural, tribal
and vulnerable communities in applying to grants.
One approach has been to attempt to increase public participation of historically marginalized voices by
sharing grant program information and incorporating community feedback on program design. The CEF team
has also made an effort to build relationships with tribes through information and listening sessions dedicated
to tribal representatives. Other strategies including developing advisory committees. For example, in the 2021-
23 capital budget, the Legislature provided funds to convene a work group representing the priorities of rural
communities that was tasked with providing recommendations on investments, programs, and policy changes
to increase access to clean energy opportunities in rural communities. The recommendations and a strategic
plan to implement them were included in a legislative report that will inform the development of the
subsequent rural clean energy grants program.
2023 BIENNIAL ENERGY REPORT 13
Another barrier to new entrants to CEF has been the level of required match funding. In response, the CEF
program introduced new scoring mechanisms and lower match requirements for tribes, highly impacted
communities, vulnerable populations, and other targeted groups.
Organizational capacity is another barrier to participating in CEF. Many communities and organizations have a
high opportunity cost for the time and resources it takes to apply for a CEF grant and often lack full-time grant
writers. One option utilized in CEF to alleviate some of the administrative burden on applicants is a two-phase
application process. This enables applicants to submit limited information and receive a response on whether
their project has a good chance of receiving funding before spending time and effort on a full application.
Both of these strategies for reducing barriers to entry have resulted in increased participation from tribes in
programs like the Electrification of Transportation Systems, and positive feedback from applicants. However,
more work remains to support equitable access to the Clean Energy Fund.
The ECPAC legislative report also found that in the coming years, the 100% clean electricity goal of CETA,
combined with the state’s greenhouse gas reduction mandates, will require fundamental shifts in Washington’s
energy landscape and infrastructure needs. Many technologies that can contribute to Washington’s clean
energy future, such as hydrogen, heat pumps and demand response, are still relatively nascent in Washington
and require continued investment.
Further, public investments are needed to achieve an equitable clean energy transition, particularly within
highly impacted populations, rural and tribal communities. As a result, the 2021 State Energy Strategy urged
the state to continue to invest in the Clean Energy Fund. State funding of the CEF is as vital as ever. Successful
CEF projects that demonstrate what is possible and the additional technology innovations that are still needed
are highlighted in each of the following chapters.
Ensuring the longevity of CEF
2023 marks the tenth year of the CEF. Codifying the program can demonstrate the Legislature’s enduring
commitment to partner with communities to achieve a clean, affordable, resilient and just energy future. Now
is also the time to clarify eligible uses of CEF as unprecedented levels of federal funding for clean energy
technologies and infrastructure are becoming available. It is critical to ensure that the CEF program aligns with
new federal programs and can be used as match to secure federal investment in Washington. For example, the
Infrastructure Investment and Jobs Act (IIJA) provides $550 billion for infrastructure projects over the next
decade. Of that new money, $74 billion is for energy and grid-related programs.12
There is also an urgent need to restructure CEF. The fund's strategic goals have not been fully updated to align
with several recent climate and environmental justice laws. A restructured CEF will allow more flexibility and
provide resources to expand the benefits of the clean energy economy to communities that have not yet
benefited.
To date, CEF has been funded through the capital budget, which has artificially limited the potential of the
program. It is time to ensure that both capital dollars and operating dollars are appropriated to the CEF to
provide technical assistance and support innovative projects from concept through commissioning. Operating
dollars can support project planning, feasibility studies, outreach, education, community engagement and
12 “The Infrastructure Investment and Jobs Act will Deliver for Washington” https://www.whitehouse.gov/wp-
content/uploads/2021/08/WASHINGTON_Infrastructure-Investment-and-Jobs-Act-State-Fact-Sheet.pdf and “The Inflation Reduction
Act Delivers Affordable Clean Energy for Washington” https://www.whitehouse.gov/wp-content/uploads/2022/08/Washington.pdf
2023 BIENNIAL ENERGY REPORT 14
grant writing. This capacity support is critical to ensure that vulnerable and frontline communities can access
federal and state clean energy funds and shape their own energy future. This type of community-led project
design is discussed further in the Electricity chapter.
Next steps
The Legislature should codify the Clean Energy Fund program in statute to provide flexibility so CEF can
adapt to changing market conditions, leverage federal funding available under the Inflation Reduction Act
and IIJA, and better align with recent environmental justice legislation such as the HEAL Act.
The Legislature should appropriate both capital and operating funds to CEF. Capital dollars fund
installation and construction of clean energy projects, and operating dollars are needed to enable
communities to access federal and state funds. Without capacity support to design projects and apply for
funding, the communities that can benefit most from federal and state investments will likely be left
behind.
Reliably robust funding is needed to build upon the Clean Energy Fund’s proven record of accomplishment
of developing and demonstrating innovative clean energy technologies and to evolve the program so that it
can support an equitable, community-led energy transformation.
2023 BIENNIAL ENERGY REPORT 15
Emergency management and cybersecurity
To support Washington’s transition to a clean, resilient and just energy future, the 2021 SES recommends
expanding the state’s energy infrastructure security and emergency management capability.
The 2021 SES identifies “enhancing resilience in rural Washington by strengthening the electric grid to deliver
clean energy” as key to addressing inequities in communities across the state (Executive Summary). To
achieve that goal, the SES recommends expanding the energy emergency program (Chapter F, Electricity),
which will directly affect the energy resilience in Washington, especially for vulnerable and rural populations.
To address these recommendations, the emergency management function within the State Energy Office
submitted its first funding request to the Legislature in 2021, which was successful. This funding was directed
to support the demand for growth of this critical function of state government. With this initial state funding,
the Energy Resilience & Emergency Management Office (EREMO) grew from one federally funded, full-time
employee to two state-funded full-time employees for all energy resilience, emergency management and
energy cybersecurity planning, response, and mitigation.
The EREMO is a critical function of state government that ensures the public safety of Washington
communities, which face increasing threats from hazards such as wildland fire, supply disruptions and
cybersecurity attacks. EREMO’s statutory role is to prepare and execute contingency plans to address energy
emergencies and shortages.13 Energy security and resilience is a critical concern, as Washington has
experienced increased intensity of natural hazards and more significant cybersecurity attacks in recent years.
The introduction of new approaches, such as microgrids, the transition to more alternate fuels such as
hydrogen, and the need to power electric vehicles during emergencies adds to EREMO's responsibilities.
The EREMO responded to 11 significant energy supply disruptions since 2020, including a central role in
COVID-19 response. This is a significant increase, as in the 10 years prior it only responded to one significant
energy supply disruption. Given the increased severity and frequency of energy supply disruptions, it is critical
for the state to document needed energy supply disruption processes and to support and review local and
tribal jurisdictions' documentation. The states response heavily depends on how local and tribal jurisdictions
choose to implement local mitigation measures.
The EREMO continues to address the 2021 SES recommendations with continued limited employee capacity to
complete the development of many critical emergency plans that are necessary to effectively coordinate
emergency response. Washington’s energy landscape is complex, involving both public- and investor-owned
electric and gas utilities and significant petroleum refinery capacity, against a background of groundbreaking,
transformative laws.
EREMO has taken on new authority and responsibility due to the expanded requirements of state energy
offices under the Infrastructure Investment and Jobs Act (IIJA). Under new requirements, each state must
draft an Energy Security Plan with six required elements that:
Describe the state’s energy landscape
Detail how the state works with energy partners
Detail how the state can secure their energy infrastructure against all physical and cybersecurity
threats
13 RCW 43.21F.045
2023 BIENNIAL ENERGY REPORT 16
Mitigate the risk of energy supply disruptions to the state
Enhance the response to, and recovery from, energy disruptions
Ensure the state has secure, reliable, and resilient energy infrastructure
Next steps
Commerce and the EREMO continue to seek additional funding through multiple means to meet the new
federal requirements. This work requires additional staff that can support all aspects of energy resilience,
cybersecurity and emergency management in the state, including close coordination with multiple sectors,
different levels of government and the private sector.
If additional funding for EREMO is successful, we will be able to meet the new federal requirements and the
existing statutory role, which includes:
Create state-level energy emergency plans
Provide direct technical support to local and tribal jurisdictions to develop their energy emergency plans,
which will be implemented when the state has an energy supply disruption
Begin to develop an energy resilience framework for the state to meet our energy resilience goals
Implement the energy resilience framework by providing technical assistance through community
engagement, conducting energy profiles for critical operations, and conducting assessments
This effort will focus on rural communities to build and enhance relationships between Commerce and local
and tribal communities, provide a structured process and points of contact for the energy resilience scoping
plan, and provide a connection to funding opportunities for energy resilience capital investments.
Highlights from response activities
Natural gas disruption — December 2021
On Dec. 21, 2021, a vehicle accident caused damage to natural gas equipment on the Williams Pipeline near
White Salmon, Wash., and Hood River, Oregon, in the Columbia River Gorge. Skyline Hospital was among the
5,000 customers impacted. Necessary COVID-19 safety measures delayed restoration by limiting access to
customers’ homes to relight equipment. The EREMO coordinated with NW Natural, the pipeline owner and
operator, and ESF-1214 teams in Oregon to monitor impacts to critical infrastructure and coordinate unmet
needs for vulnerable populations by providing public information.
Wildland fire season — 2021
On July 16, 2021, FEMA activated Washington's ESF-12 to help respond to delivery delays for Jet A fuel, which
the state needed to respond to multiple wildfires. This petroleum fuel is also used in civilian aircrafts, including
farming equipment. By July 26, the fuel distribution delays were starting to affect the agricultural sector.
Firefighting aircraft were using the supply needed by crop dusting aircraft. Throughout August, demand for Jet
A fuel far outstripped supply. Fire response shifted to prevention and containment, as flying long distances to
large fires became unfeasible. By August 18, the market began to produce more supply, but a simultaneous
rise in COVID-19 exposures caused additional staffing shortages for fuel haulers and airports. Finally, fire
activity began decreasing in September. The EREMO supported successful resolution of this incident by
depending on non-traditional intra-state partnerships between Commerce and the state departments of
Natural Resources, Transportation and Aviation, and the U.S. Forest Service (USFS).
14 ESF-12 (Emergency Support Function #12) is a FEMA designation. The EREMO is Washington's support function.
2023 BIENNIAL ENERGY REPORT 17
Transforming Washington's electricity supply
Key electricity sector actions from the 2021 State Energy Strategy
A. Accelerate investment in renewable generating resources and transmission
The clean electricity supply must grow to replace fossil fuels in transportation and buildings. Transmission
capacity and market mechanisms enable better access to diverse clean resources across the West. Strengthen
resource adequacy through an explicit program.
B. Build a smart and flexible grid
Grid modernization is necessary to increase energy resilience and assure reliable service. Expand advanced
metering infrastructure with safeguards for privacy and security. Pursue universal, statewide deployment of
broadband access.
C. Facilitate community deployment of renewable generation resources and grid services
Increase opportunities for communities to control their own energy supplies. Develop tools for equitable energy
distribution and deployment.
State agency key action
Expand the state's energy infrastructure security and emergency management capabilities. Increase state agency
engagement in interstate and federal transmission and market development initiatives.
An electricity supply free of GHG emissions is key to meeting Washington’s statutory GHG reduction limits.
Clean electricity will allow residents to power their cars and buildings with renewable and non-emitting
resources, displace fossil fuels in the industrial sector, and enable Washington to manufacture synthetic fuels
and green hydrogen. The 2021 SES found that clean electricity will lower overall energy costs, increase overall
energy efficiency, and increase Washington's national and international economic competitiveness, boosting
the standard of living for all Washington residents.15
Washington is well positioned to electrify its economy. Washington's abundant hydropower and ambitious
100% clean electricity law, the Clean Energy Transformation Act (CETA), provide the foundation and
architecture for a decarbonized grid that ensures clean, affordable and reliable electricity for customers. The
Climate Commitment Act (CCA), Washington's economy-wide cap-and-invest program, provides additional
assurance of GHG reductions from in-state electricity generators and electricity imports.
A combination of electrification and energy efficiency is the most cost-effective way to meet the state's clean
energy and environmental protection objectives.16 This requires Washington to double its clean electricity
supply by 2050.17 Building these resources in the state is not necessary. A more reliable and productive
resource portfolio includes wind from the Rocky Mountains and solar from the Southwest. These resources
are complementary and will ensure affordable and reliable power. Electricity imports are projected to continue
to increase to 43% of Washington’s electricity supply by 2050.18 Washington utilities and planners will continue
15 2021 State Energy Strategy (PDF)
16 Ibid.
17 Ibid.
18 Washington State Energy Strategy Decarbonization Modeling: Final Report (Excel)
2023 BIENNIAL ENERGY REPORT 18
to explore other resources options that do not yet appear cost effective, such as geothermal, offshore wind
and nuclear.
Constraints in the bulk power transmission system pose one of the greatest challenges to Washington's
energy and climate goals. Transmission constraints reduce access to cheap and abundant wind and solar and
increase the likelihood that resource supply is inadequate at critical times. An inability to access these
resources will increase costs of the clean energy transition and limit Washington's ability to produce hydrogen
and synthetic fuels.19 Washington must take deliberate action in coordination with its neighbors to expand
transmission capacity to ensure it can affordably and reliable meet its clean electricity goals.
Removing barriers to regional electricity markets offers another opportunity to improve access to clean energy
resources. The benefits of regional trade increase as emissions limits become tighter and electricity loads
grow through the electrification of Washington's economy. Well-designed, climate-aware electricity markets
support the state's climate goals and economy. However, market structures that treat fossil-fired energy and
clean energy as equivalent are a significant obstacle. The Western Power Pool’s Western Resource Adequacy
Program (WRAP), while not an actual power market, is a good first step toward regional integration. Utilities,
regulators and the State Energy Office should continue to participate in developing this program.
Washington also needs to build renewable generating resources within the state. Siting challenges must be
addressed for in-state expansion of clean energy to occur. This requires engaging with communities to better
understand land use considerations, including protection of natural resources, support for work in rural areas,
and preservation of tribes' cultural resources.
A. Transmission
There is a broad consensus across utilities and planning agencies that additional transmission development
and greater market access to clean energy resources are needed to maintain resource adequacy and meet the
state's long-term climate objectives. The Bonneville Power Administration's (BPA) lengthy interconnection
request queue demonstrates both the significant project investment that is occurring and the resulting
transmission congestion.
Building new transmission lines is a time-intensive process that requires significant investment. A recent two-
year study by the Department of Energy confirmed the potential cost savings and resource adequacy benefits
of a Western regional transmission organization (RTO).20 In light of these findings, discussions of an RTO are
ongoing in the West.
Federal funding opportunities
Transmission upgrades and expansion have been a top priority of the Biden administration and 117th
Congress. The significant amount of funding for transmission projects made available under the bipartisan
Infrastructure Investment and Jobs Act (IIJA) and the Inflation Reduction Act (IRA) can help Washington
implement the projects needed to access new sources of clean energy required to decarbonize the state's
electricity. The IIJA also expanded the Bonneville Power Administration’s borrowing authority by $10 billion to
help retrofit transmission along the federal Columbia River Power System, which includes Washington, Idaho,
19 Washington State Energy Strategy – Hydrogen Usage
20 Regional transmission organizations (RTOs) are independent, non-profit electric power systems operators that exist in seven
different geographic areas across the United States today (for example, PJM). RTOs play an important role in the coordination,
monitoring, and control of a multi-state electric grid.
2023 BIENNIAL ENERGY REPORT 19
Oregon, western Montana and small parts of eastern Montana, and parts of California, Nevada, Utah, and
Wyoming.
Projects eligible for IRA funding must be in a National Interest Electric Transmission Corridor (NIETC), a DOE-
designated region where electricity transmission limitations are adversely affecting citizens. Among other
things, the NIETC must promote national energy security and development of intermittent resources, or energy
resources that vary in output by their nature such as wind, solar, run of river hydroelectric power and other
renewable resources.21 Roughly $760 million of IRA funds for transmission are grants aimed at facilitating the
siting of certain onshore and offshore transmission lines. The funds may be used by states and local
governments to conduct transmission project studies, examine alternative siting corridors, host negotiations
between stakeholders, participate in federal and state regulatory proceedings, and promote economic
development in impacted communities. These funds will remain available through Sept. 30, 2029.22
One hundred million dollars of the remaining IRA funds will be available until Sept. 30, 2031, for convening
stakeholders and conducting analyses related to interregional transmission development and development of
transmission for offshore wind energy. Other provisions in the IRA, such as those related to loan programs
administered by the U.S. Department of Agriculture, could potentially incentivize transmission development,
but their potential impact is uncertain at this time. In addition to IIJA and IRA funds, the Biden administration
made an additional $3.25 billion available to the Western Area Power Administration (WAPA) to support the
development and expansion the transmission system in the areas bordering Washington, Oregon and eastern
Montana.23 These actions strengthen regional electric transmission and increase the potential benefits of
regional integration.
Transmission Corridors Work Group
The Washington State Legislature recognized transmission need when it passed CETA in 2019. The law
required the Energy Facility Site Evaluation Council (EFSEC) to convene the Transmission Corridors Work
Group (TCWG) to examine and report on transmission needs, environmental review options, and ways to
expedite the review of transmission projects without compromising environmental protection.24
The TCWG report identifies transmission capacity as crucial to achieving the state’s climate protection laws.
Additional capacity along existing electric transmission corridors and new transmission builds is needed to
meet CETA goals and decarbonize buildings, transportation, and industry. The report recognizes transmission
is expensive and controversial, but also necessary. It recommends proactive, longer-term transmission
planning by the electric power industry, and calls for the executive branch of Washington's state government to
take a more active role in transmission planning and development of a regional transmission organization.
Advocacy for federal transmission reform
Gov. Inslee is a national leader in advocating for transmission reform, championing a more robust and efficient
transmission system in his comments on FERC’s Advanced Notice of Proposed Rulemaking RM21-17-000.
Commerce and the UTC, joined by the Oregon Public Utilities Commission and Oregon Department of Energy,
followed Gov. Inslee's lead and filed comments on the notice of proposed rulemaking to reform electric
21 The IIJA amended the NIETC designation to allow the Federal Energy Regulatory Commission (FERC) to supersede traditional state
permitting of transmission facilities and issue permits for the construction and operation of some interstate facilities under certain
circumstances.
22 Congressional Research Services, Electricity Transmission Provisions in the Inflation Reduction Act of 2022
23 White House Fact sheet: Biden-Harris Administration Races to Deploy Clean Energy that Creates Jobs and Lowers Costs
24 RCW 19.405.150, Transmission corridors work group
2023 BIENNIAL ENERGY REPORT 20
regional transmission planning and cost allocation. The proposed rules would require transmission providers
plan for longer timelines and a decarbonized grid. It would also give states a greater role in the allocation of
regional transmission costs.
Progress assessment: Transmission
2021 SES recommendation 2023 update
Encourage federal investments and transmission reforms. The IIJA and IRA include significant federal funding for
transmission. The IIJA provides $65 billion for:
Constructing new transmission lines
Increasing capacity on existing lines
Furthering the research, development and deployment
of innovative grid enhancing technologies
The IRA appropriates an additional $2.9 billion for
transmission infrastructure. A $2 billion direct loan
program for transmission development will be available
through Sept. 30, 2030.
The Executive Office of the Governor, the UTC and The Transmission Corridors Work Group convened by
Commerce should pursue opportunities for enhanced EFSEC will release a report in December 2022 that
transmission planning and integration across the western identifies strategies for enhancing transmission planning
grid and advocate for joint development where feasible. Washington and beyond.
Utilities and planning agencies should evaluate the need Exploration of a regional transmission organization is
for a joint development of new and upgraded ongoing.
transmission capacity and consider the viability of a
regional transmission organization.
Areas for action
Secure federal funding for transmission projects
Utilities, transmission owners and investors should pursue opportunities to leverage federal funds to build
onshore and offshore transmission. Commerce should continue to raise awareness and coordinate statewide
efforts to direct federal funds to Washington. Commerce will continue to raise awareness and coordinate
statewide efforts to support communities and eligible entities in securing federal funds for Washington's
benefit.
Staffing and technical study needs
Commerce and the UTC continue to participate in RTO discussions and track federal regulatory developments
and funding opportunities. Both agencies represent Washington in the NorthernGrid regional transmission
planning organization. The Legislature should fund additional staff at the UTC and Commerce to advocate for
Washington interests at FERC and other national and regional forums, consistent with the recommendation of
the TCWG. The dedicated staff would also work to build a better understanding of the concerns and interests
of overburdened communities in the development of clean energy resources, and the role of power
transmission systems in addressing those concerns. In addition, the Legislature should provide funding for
technical studies to evaluate transmission opportunities.
2023 BIENNIAL ENERGY REPORT 21
Study and engage in transmission planning
As Washington utilities and planning agencies engage in discussions of a western RTO, they should pursue
independent means of building transmission capacity within or outside of the state. If needed, the state should
consider taking a more direct role in the development and even operation of critical transmission facilities. The
Legislature should commission an independent assessment of the potential benefits of creating a new entity,
with powers and duties comparable to those of a joint operating agency under RCW 43.52.300, to finance,
construct, or operate facilities for the transmission of electricity within or outside the state of Washington. The
study could explore the establishment of a stakeholder steering committee and offer tribal consultation, and
consider the experiences of comparable entities in New Mexico, Colorado, and other jurisdictions.
B. Deployment of Clean Energy Resources
Accelerate investment in clean generating resources
Most consumer owned utilities (COU) in Washington have sufficiently clean or non-emitting resource portfolios
to comply with CETA until at least 2030, and many are in compliance until 2045. As a result, COU pursuit of
new clean energy resources has been limited over the past two years but could increase before the 2030 CETA
compliance date due to load growth. For example, Grant County Public Utility District anticipates having
insufficient energy capacity in 2026, largely due to the county's recruitment of electricity-intensive industries
such as data centers. In its 2022 Integrated Resource Plan, Grant County proposes adding 550 MW of new
capacity through 2025 (of which about 34% is natural gas fired reciprocating internal combustion engines and
the remainder is solar and wind generation).
In contrast to many consumer owned utilities, Washington's three electric investor-owned utilities are working
to procure additional clean energy resources in the near term. For example, Puget Sound Energy's (PSE)
demand forecast predicts a capacity need for 369 MW of new electric resources in 2026, increasing to 527
MW in 2027. However, a request for new generating resources that PSE issued in 2021 sought up to 1,506 MW
of capacity resources due to PSE's desire to reduce reliance on the market for procuring short term energy
contracts. A total of 95 proposals were submitted in response to PSE's request for proposals with a capacity
of 21,006 MW. The proposed projects would be in Washington, Oregon, Idaho, Montana and Wyoming.
Selected projects had not yet been announced when this report was drafted.
As demonstrated by the geographic diversity of the projects submitted to PSE's RFP, there are tradeoffs in
siting new generating resources. Out-of-state sites often enable higher capacity factors for renewable
generation (such as wind in the Rocky Mountains and solar in the Southwest) but have greater transmission
requirements. In-state projects offer opportunities for economic development, including job creation,
workforce development, and capital investment. These projects must also adhere to the state's commitments
to respect and uphold tribal sovereignty, protect natural resources, and create direct benefits in the
communities where these projects occur. Understanding competing land uses and being aware of culturally
significant areas and areas where tribes have rights to resources can help the state better target areas that
have high production potential for solar, wind and other sources of renewable energy, and better protect
conservation and agricultural lands and tribal resources.
In 2021, the Legislature directed the Department of Ecology (Ecology), in consultation with Commerce, to
develop recommendations to improve the permitting of clean energy projects while maintaining the state's
environmental standards and preserving tribal consultation and treaty rights. The Low-Carbon Energy Project
Siting Improvement Study was released in November 2022. Commerce and Ecology engaged interagency
partners, a diverse advisory group, and tribes to develop recommendations for improving siting and permitting
processes. In 2022, recognizing the need to bolster development of new clean energy facilities, the Legislature
2023 BIENNIAL ENERGY REPORT 22
passed Chapter 183, Laws of 2022 (House Bill 1812) to expand the authority of the Energy Facility Site
Evaluation Council (EFSEC), including allowing additional types of energy facilities to elect to be permitted
through EFSEC. Some initial work is underway to identify potential locations for clean energy resources that
may reduce conflict with agriculture, tribal resources, places of tribal significance, critical habitat, and other
uses. A few relevant mapping projects are described in the table below.
Project Lead Agency Description
Department of Map identifies potential lease sites on DNR trust lands that may avoid
DNR Solar Mapping
Natural Resources conflicts with competing uses and concerns about ecosystem and
Project (DNR) cultural impacts.
Compatible Energy Prototype map provides examples of site specific consultation
Siting Assessment Commerce guidance to support civilian-military coordination for compatible siting
(CESA) Map of clean energy.
WSU is engaging solar developers, farmers, ranchers, conservation
Least-Conflict Solar Washington State groups, and tribes to map land uses where solar development may
Siting University (WSU) occur in the Columbia Plateau. Interested parties will work together to
develop mapping layers that will be available by June 2023.
This interagency map provides information on various resources,
Marine Spatial Department of infrastructure, and habitats off of the Pacific coast of Washington to
Planning Map Ecology inform marine planning and new potential uses of the offshore
environment.
Progress assessment: Deployment of clean energy resources
2021 SES recommendation 2023 update
Washington utilities, resource owners, and developers New electricity generation continues to expand in
advance plans to build clean resources. Washington. In particular, there has been a proliferation
of new large-scale solar projects currently under
development, based on the project queue before the
Energy Facility Site Evaluation Council (EFSEC).
Funding should be made available to Commerce and Funding has not been provided for a statewide clean
electric utilities to conduct a statewide clean energy energy potential assessment. Some siting studies are in
potential assessment to identify clean energy progress and the state is pursuing opportunities to
development zones. support more efficient and effective siting of renewable
energy generation and energy storage technologies.
Areas for action
Washington must continue to encourage energy efficiency across all sectors of the economy as the first step
and lowest-cost action. Utilities should work with their regulators to undertake proactive resource planning
and make strategic investments in new resources that both decarbonize the grid and benefit their customers,
particularly overburdened communities and vulnerable populations. Ultimately, market prices and transmission
capacity will largely determine whether new generating resources are located in- or out-of-state. The actual
outcome will almost certainly be a combination of diverse resources sited both in state and beyond
Washington's borders.
2023 BIENNIAL ENERGY REPORT 23
Fund dual-use solar demonstration projects
The Legislature should provide funding for a grant program at Commerce for dual use solar demonstration
projects. This grants program can provide a proof of concept and identify best practices for productive co-use
of sites for renewable energy generation and an additional economic use, such as:
Using land for both a farm crop and solar energy generation, through a practice called agrivoltaics.25
Installing solar over irrigation canals to make use of existing impervious surface, keep water cool, and
reduce evaporation.
The overarching goal of these projects is demonstrating that solar production and current land uses do not
need to be in conflict, and that clean energy production can be sited harmoniously with the rural character of
communities and support existing livelihoods.
Center community-led project design
Ultimately, Washington must find additional pathways beyond current developer-driven siting approaches and
toward community-centered project design. The state should encourage a process that engages communities
before project conception to understand community preferences and goals. This includes empowering
communities with timely and accessible data and prioritizing community values through community benefit
agreements. The community energy visioning process can enable communities to coalesce around shared
priorities for clean energy expansion.
C. Prepare for widespread deployment of distributed energy
resources and advance grid modernization
Distributed energy resources (DERs) are distinct from large scale energy generating facilities like hydroelectric
plants and large wind and solar farms. DERs generate electricity locally and reduce or shift demand at the site
where it is used. Certain conditions in Washington have slowed adoption of DERs relative to national trends.
These conditions limit the value that DERs can provide to the electric grid and as a result, the economic value
that customers can receive. They include:
Low electric rates, which lead to longer payback periods for customer-owned energy resources like rooftop
solar
Relatively slow deployment of Advanced Metering Infrastructure (AMI) and Distributed Energy Resource
Management Systems (DERMS), which utilities can use to better integrate DERs
Low levels of utilization of time of use rates and demand response, which can increase the benefits that
DERs provide to the electric grid
Expanded federal tax incentives and federal grant funding for rooftop and community solar may help utilities
and customers overcome these barriers. Increased deployment of DERs, such as installing solar in the built
environment, could play an important role in transitioning to a clean energy grid under CETA while sidestepping
some of the siting challenges faced by large-scale utility projects.26
25 This includes growing plants such as carrots, turnips, and squash under solar panels. The crops chosen should be suited to local
growing conditions and soil nutrients. See for example: https://www.jackssolargarden.com/
26 For example, HB 1814 (2022) included the following definition of preferred sites for community solar: rooftops, structures, existing
impervious surfaces, landfills, brownfields, previously developed sites, irrigation canals and ponds, stormwater collection ponds,
industrial areas, dual-use solar projects that ensure ongoing agricultural operations, and other sites that do not displace critical habitat
or productive farmland as defined by state and county planning processes.
2023 BIENNIAL ENERGY REPORT 24
The first Clean Energy Implementation Plans (CEIPs), submitted in late 2021 by Washington’s investor-owned
electric utilities, emphasized DER deployment as a strategy for achieving the equitable distribution of benefits
required under CETA. Customer interest in DERs is nascent in Washington, particularly in rural and remote
areas. This is evident from the addition of energy storage to a growing number of customer-owned solar
installations, even though there is no economic signal for these customers to shift their usage or put power
onto the grid during times of peak usage.
Unfortunately, under current conditions, it is likely that many of these systems, particularly behind-the-meter
storage, will sit idle waiting to provide backup power during relatively infrequent outage events. Better
integration of DERs, as envisioned in the 2021 SES,27 can provide additional value to both the distribution grid
and to customers. With the need for clean energy ramping up in the next decade under CETA, it is a good time
for the state and individual utilities to take steps to actualize the full value that DERs can provide to customers
and the electric grid.
To derive the full benefits of DERs, utilities need to develop new economic signals to send to customers and
deploy additional grid integration technologies in the next two years. This includes targeting locations where
the benefits of DERs are the greatest and the costs of interconnecting them are the lowest. Most utilities in
Washington have yet to conduct and publish hosting capacity analyses that can provide insights on particularly
beneficial locations for DERs. While early examples of publicly available hosting capacity analysis (HCA)
should be commended (see table below), even these early adopters should take additional steps to increase
the transparency and the usefulness of the data. As more utilities develop HCAs, these best practices should
be utilized.28 In particular, the analyses should be updated regularly and should address both the ability of the
distribution grid to support increased loads and additional distributed generation. The results should be
displayed on a publicly accessible, interactive map.
Examples of Washington utilities developing hosting capacity analyses
Utility Analysis Opportunities for improvement More information
Published a HCA for its Update HCA maps regularly, ideally as
Puget Sound entire service territory as part close to in real time as possible. It is Hosting Capacity
Energy of its 2022 DER Request for important to indicate the date of last Heat Map
Proposals. update on the map.
SCL’s analysis was intentionally
focused on the ability of the
distribution grid to host additional
Developed a grid capacity
load. A full HCA would also address
Seattle City analysis and published the Electrification
the distribution grid’s ability to support
Light results in its 2022 Technical Assessment Report
additional generation. It is beneficial to
Report.
convert HCA into a map to enable
users to interact with the data and
identify optimal locations for DERs.
27 2021 State Energy Strategy, page 126.
28 "Key Decisions for Hosting Capacity Analyses." IREC. September 16, 2021. https://irecusa.org/wp-content/uploads/2021/10/IREC-
Key-Decisions-for-HCA.pdf
2023 BIENNIAL ENERGY REPORT 25
Utility Analysis Opportunities for improvement More information
Recently published a DER Update HCA maps regularly, ideally as
Hosting Capacity map that close to in real time as possible. DER Hosting Capacity
Avista Utilities
provides information on the Indicate the date of last update on the Map
ability to interconnect DERs. map.
Washington is advancing innovative approaches to renewable energy integration and flexible load
management, and demonstrating technologies that increase grid resilience through state investments. In 2022,
the legislature created a $100 million incentive program for low-income community solar29 and appropriated
$37 million to the Department of Commerce to launch a new solar plus storage program focused on enhancing
community resiliency.30 The Grid Modernization Program funded by the Clean Energy Fund continues to
demonstrate how novel integration of DERs can provide increased benefits to the electric grid. For example,
the EcoDistrict in Spokane is a first-of-its-kind project in Washington. This CEF round three project includes
onsite solar, batteries, thermal energy storage, and sensors to granularly control demand across a set of
interconnected buildings. This project and others funded by CEF demonstrate what is possible and offer a
proof of concept that these technologies will work in and for Washington. In fact, a new Department of Energy-
funded project is building on the EcoDistrict model to explore how distributed energy resources can be
managed across 50 to 75 existing single family and multi-family residential homes and 25 to 50 commercial
buildings in Spokane to avoid expensive distribution grid upgrades. Seattle City Light is also undertaking a
project under DOE's Connected Communities program that will deploy battery storage systems, electric vehicle
charging infrastructure and rooftop PV, thus enabling flexible loads in multifamily affordable housing to defer
distribution upgrades, saving ratepayers money while providing new services. These projects should be a
model to other utilities in the state of what is possible with effective DER integration enabled by investment in
smart grid technologies.
29 The Community Solar Expansion Program is being implemented by WSU’s Energy Program.
30 The initial grant application period for the Solar Plus Storage for Resilient Communities closed March 23, 2023.
2023 BIENNIAL ENERGY REPORT 26
Progress assessment: Prepare for widespread deployment of distributed
energy resources and advance grid modernization
2021 SES recommendation 2023 update
Request support from the U.S. Department of Energy and The DER workgroup with DOE and PNNL has not been
Pacific Northwest National Laboratory (PNNL) to convene created and might not be necessary, as work already
a DER workgroup to identify and resolve grid architecture underway fulfills this recommendation. The Advanced
barriers to DER deployment. Grid Institute, formed by PNNL and WSU, is already doing
important work in this space and is fostering crucial
conversations on DER deployment; for example, during
the annual Advanced Grid Institute Day. In addition, the
CEF Grid Modernization program and DOE's Connected
Communities programs are leading the way in
demonstrating what is possible.
Utilities should incorporate comprehensive assessments Most utilities have yet to conduct and publish hosting
of the value of DERs in the specific context of individual capacity analyses. Early examples of publically available
distribution grids by performing and publishing hosting hosting capacity analysis should be commended, but
capacity and critical load studies. more is needed to increase transparency and the
usefulness of the data produced. As more utilities develop
hosting capacity analysis maps, these best practices
should be utilized.
The Legislature should assess whether voluntary While WAC 480-100-620 requires electric investor-owned
distributed energy resources planning is the appropriate utilities regulated by the UTC to assess “the effect of
policy approach given the requirements of CETA. distributed energy resources on the utility's load and
operations”, the UTC only “strongly encourages utilities to
engage in a distributed energy resource planning
process.” As a result, utility distributed energy resource
planning efforts, particularly at consumer-owned utilities,
have been variable and relatively limited. Given the
anticipated proliferation of DERs under CETA and the
limited voluntary work that is occurring on hosting
capacity analysis and DER integration, the Legislature
should evaluate whether distributed energy resources
planning should be voluntary.
Provide state support for flexible and resilient planning This cluster has not been created. Through the Clean
and project development by creating a new cluster within Energy Fund, Commerce is developing and demonstrating
Commerce’s Office of Economic Development and technologies and processes that can better integrate
Competitiveness to focus on utility grid optimization and renewable energy and DERs to achieve grid optimization.
DER deployment. The legislature should continue to invest in the crucial
innovation and market transformation enabled by CEF. In
addition, state, local governments, utilities, and private
entities should secure Infrastructure Investment and Jobs
Act (IIJA) and Inflation Reduction Act (IRA) funding to
support further utility grid optimization and enable the full
benefits of DER deployment to be harnessed.
Target CEF funding to projects that enable flexible load Commerce has funded several grid modernization
management and increase grid resilience. projects that demonstrate flexible load management and
increase grid resilience.
2023 BIENNIAL ENERGY REPORT 27
Areas for action
Comprehensive distribution system planning can unlock additional value from DERs. In particular, utility use of
DERs to avoid or postpone distribution grid upgrades and capital investments, known as "non-wires
alternatives," can provide beneficial cost saving opportunities. The Legislature should incentivize utilities to
proactively plan and innovate for a future distribution grid that effectively integrates increased electric loads
and widespread DERs including rooftop solar, behind the meter batteries, electric vehicles, and grid-responsive
heat pump water heaters. The Legislature should evaluate whether to require a process under RCW
19.280.100 or if there are other opportunities to incentivize this work, given the limited voluntary work
occurring on distribution planning.
Currently, only about 60% of utility customers in Washington use smart meters. While several utilities are
actively working to deploy smart meters soon, smaller utilities might need support in exploring and deploying
advanced metering infrastructure (AMI). This is an important first step for greater DER deployment due to the
improved communications that AMI enables. Funding opportunities should also support utilities in developing
the capacity to dispatch DERs when additional capacity, voltage, or other services are needed on the grid. This
could include funding and/or technical assistance for obtaining Distributed Energy Resource Management
Systems (DERMS). An important prerequisite for deploying these technologies will be adopting and mandating
robust cybersecurity protocols to ensure consumer protection.
Finally, interconnection rules and timelines vary by utility in Washington, meaning that installers might navigate
distinct processes for very similar projects even a few miles apart. In addition, interconnection standards that
enable the full value of customer site battery energy storage systems are largely nascent in the state.31 A DER
workgroup among all Washington utilities and industry could improve interconnection processes and move
towards consistent interconnection standards statewide. This would streamline interconnection applications
so projects follow similar processes and timelines regardless of which utility a project is interconnecting with.
The Legislature should provide funding for a consultant with interconnection expertise to facilitate these
processes.
D. Resource adequacy program development
Resource adequacy guides utility decisions to make sure they have sufficient power generation to meet
demand under a range of operating conditions. Reliable service is a core element of CETA and utilities are
required to adopt a resource adequacy standard to comply with law.
An industry-led, region-wide resource adequacy effort is also underway in the west. In August 2022, The
Western Power Pool (WPP), formerly the Northwest Power Pool (NWPP), submitted to FERC an application to
establish the Western Resource Adequacy Program (WRAP). The WRAP will establish a common resource
adequacy standard, which will help participating utilities forecast and acquire resources based on their
electricity needs and available generating resources. This will reduce costs and improve resource adequacy
across the region.
The WRAP is now in an initial non-binding phase of implementation. This phase allows utilities to submit data
and identify their resource obligations under the program, but it does not require utilities to make any changes
31 For example IREC's BATRIES project is working to address common interconnection challenges experience by energy storage
systems nationally.
2023 BIENNIAL ENERGY REPORT 28
to their operations. Utilities that opt into the program's binding phase will be required to meet resource
obligations starting in summer 2025, as approved by WRAP in February 2023.
The current WRAP proposal makes a number of key governance changes. The WRAP board must be
independent of financial interests and other potential biases. A proposed committee of state representatives
would enable state regulators of participating utilities to have influence and oversight over WRAP's direction.
Participating utilities would have individual committees. A program review committee will engage the public
and review and administer suggested changes to the program. Together, these committees provide checks
and balances and have the potential to enhance resource adequacy governance across the West.
Progress assessment: Resource adequacy program development
2021 SES recommendation 2023 update
Utilities, resource owners, developers and other Most of the utilities serving Washington customers have
stakeholders should continue to engage in developing a participated in the non-binding phase. Some consumer
consistent and non-discriminatory resource adequacy owned utilities have opted not to participate.
program through the Western Power Pool.
Commerce and the UTC should review the progress and Utilities have the opportunity to sign up for the binding
outcomes of the WRAP initiative and evaluate the need phase of the program.32 The UTC and Commerce will
for additional state action to ensure CETA’s resource continue to monitor the involvement of Washington
adequacy requirements are fulfilled. utilities in the WRAP initiative.
Areas for action
Utilities, resource owners, developers and other stakeholders should support the development of WRAP
through FERC approval process.
Utilities should continue to participate in the non-binding phase of the program and prepare to join the
binding phase in 2025. The UTC and Commerce should evaluate whether additional actions should be
taken to require utility participation in the WRAP, if utilities do not participate in the program.
E. Reform and expand wholesale electricity markets
The 2021 SES found that expanding access to regional renewable, clean energy resources is important to
ensure Washington can meet its growing electricity needs with clean, affordable, and reliable power. RCW
19.405.130 (Sec. 130) requires Commerce and the UTC adopt rules to ensure that utilities comply with CETA’s
clean electricity requirements when they buy and trade power in wholesale electricity markets. The statute
convenes a stakeholder workgroup to assist the agencies.
Commerce and the UTC convened a 20-member Carbon and Electricity Markets Workgroup to inform the
agencies' work under Sec. 130. The workgroup included a broad set of stakeholders, including environmental
and public interest organizations, public and privately owned electric utilities, wholesale generators and
electricity market participants, labor groups, and residential and business customers.
The workgroup hosted four workshops on energy markets, greenhouse gas policies and other related topics to
inform its examination of the issues. After this series of workshops, the workgroup developed an issues list for
consideration in the CETA rulemaking process. The group held three public work sessions to discuss the
32 FERC approval of WRAP
2023 BIENNIAL ENERGY REPORT 29
issues list and a set of alternative approaches for resolving the issues. It was unable to come to an agreed
upon approach and filed a summary report to the agencies in April 2021.
Commerce and the UTC encouraged stakeholders to continue working together to develop proposals for the
agencies to consider. The agencies held a workshop in August 2021, when stakeholders presented two
proposals. Neither proved viable, and the workshop concluded with stakeholders jointly asking Commerce and
the UTC to break the impasse. Commerce and the UTC subsequently proposed multiple rule drafts, held two
more stakeholder workshops, and offered three more comment periods before settling on rule language.
The rules clarified that:
Utilities must use renewable or non-emitting electricity sources in an amount equal to 100% of the utility’s
retail electric load under the 2030 greenhouse gas neutral standard. To comply with this standard, utilities
need to develop a portfolio of resources that could reasonably meet 80% of their load with clean energy
resources on an hourly basis, since the standard allows for 20% of load to be met using fossil resources
combined with renewable energy certificates.
Utilities must supply 100% of their electricity from clean energy resources under the 2045 standard.
The Commerce rules clarify how utilities may count wholesale power purchases and sales under this
requirement. The UTC is completing its rules regarding this requirement and expects them to be finalized in
2023.
Commerce and the UTC also developed rules to clarify the effect of energy storage under CETA. The agencies
initiated the discussion of potential rules because of concerns that storage transactions would distort or
confuse the accounting of clean electricity in CETA compliance. Some stakeholders were concerned that
electricity might lose its renewable attribute when stored and used later, while others wanted to ensure that the
storage transaction did not cause fossil-fired generation to appear to be clean.
The rules adopted by the UTC and Commerce take a neutral approach to these concerns. The rules clarify that
utilities may use energy storage systems, such as batteries and pumped hydro storage plants, to manage
renewable energy supply and demand. The rules apply to all storage resources, whether they are collocated
with renewable generated resources or located separately in the transmission or distribution system.
Electricity used by storage resources behind the customer meter are part of retail load, consistent with the
statutory definition in CETA.
Organized markets
Discussion around the expansion of organized markets includes three forums:
California's Western Energy Imbalance Market
California's Extended Day Ahead Market
The Southwest Power Pool's Markets+ offering
The Bonneville Power Administration (BPA) and Western Area Power Administration recently joined the
Western Energy Imbalance Market, and BPA announced it would be an active participant in developing other
markets.33 Electric utilities continue to engage with the California Independent System Operator (CAISO) to find
an equitable governance structure and effective market mechanisms for an extended day-ahead market.
33 BPA to Join Western EIM, Eyeing Other Developing Markets in West | Supply & Demand | newsdata.com
2023 BIENNIAL ENERGY REPORT 30
Avista, Chelan County PUD, Grant County PUD, Puget Sound Energy and Tacoma Power have all indicated an
interest in the Southwest Power Pool's Markets+.
Utilities are also discussing the development of a comprehensive Western regional electricity market. Large
electric utilities within the Western Interconnection, including PacifiCorp, Puget Sound Energy and Seattle City
Light, created the informal Western Markets Exploratory Group to discuss forming a regional electricity market.
PNGC Power, an Oregon-based electric generation and transmission cooperative owned by 15 cooperative
utilities from across the Northwest, also held discussions with utilities, regulators and energy offices about a
regional market.
Progress assessment: Reform and expand wholesale electricity markets
2021 SES recommendation 2023 update
The UTC and Commerce, with input from the Carbon and These rules were published.
Electricity Markets Workgroup, should adopt rules to
allow for the trade-in electricity from sources verified to
comply with CETA's clean energy requirements.
Electric utilities should pursue the long-term development Utilities are exploring options to establishing regional
of a fully integrated Western regional electricity market, markets, starting with the expansion of organized
beginning with expansion of organized markets to trade markets.
day-ahead and then longer term resources.
Commerce’s 2024 CETA evaluation under RCW Commerce plans to begin the 2024 CETA evaluation in
19.405.080 should include an assessment of industry 2023. Per statute, the review will focus on technologies,
progress in developing efficient and resource-specified forecasts and existing transmission, as well as an
electricity markets. evaluation of environmental and public safety protection,
affordability, and system reliability.
Commerce and the UTC should ensure that CETA’s energy Commerce and the UTC adopted rules on accounting for
accounting methods accommodate the charging and energy storage under CETA in 2022.
discharging of storage resources within the electricity
grid.
Areas for action
Electric utilities should continue to explore options for further regional integration through CAISO and
Markets+. Utilities should also continue to support the development of market and governance structures
through WRAP.
There will be ongoing need to ensure that electricity markets operate to support both the efficient economic
operation of the power system and the state's requirements to reduce greenhouse gas emissions and reduce
impacts on overburdened communities. Commerce and the UTC must work closely with other states, federal
officials and affected communities in this effort.
2023 BIENNIAL ENERGY REPORT 31
Decarbonize transportation and use energy more
efficiently
Key transportation sector actions from the 2021 State Energy Strategy
A. Decarbonize transportation energy through electrification and renewable fuels
Eliminate tailpipe emissions by using zero-emission fuel.
B. Use transportation fuels efficiently and thoughtfully
Reduce the number and distance of trips requiring powered vehicles for goods and people. Encourage use of
more efficient modes, such as public transit.
C. Make it easier to learn about, acquire and charge clean vehicles of all kinds
Address impediments to electric vehicle acquisition and transform the marketplace into a robust economic
development generator.
State agency key action
Enable state agencies to develop plans and act on electrification
The Department of Enterprise Services (DES), with support from the Legislature and other state agencies, should
continue efforts to convert state-owned vehicle fleets to EVs and expand the current goal beyond 50% of new
state passenger vehicle purchases.
According to the 2021 SES, no sector is as important as transportation to achieving decarbonization, nor is any
as complex in its operation and governance.
Research since the strategy's release reinforces this understanding. For example, the annual Inventory of U.S.
Greenhouse Gas (GHG) Emissions and Sinks reports from 1990 to 2020 show that the transportation sector
accounted for the largest portion (27%) of total U.S. GHG emissions in 2020.34 Of that total:
83%: Vehicles, including passenger cars, light-duty vehicles like SUVs and minivans, and light-, medium-
and heavy-duty trucks
8%: Aircraft
5%: Other transportation — sources such as buses, motorcycles, pipelines and lubricants
2%: Rail
2%: Maritime
Due partially to reduced reliance on coal-sourced power and greater use of renewable sources like hydropower
to generate energy generally, mobile sources in Washington account for a much higher percentage than the
national averages stated above. Transportation sector emissions are responsible for 31% of all emissions in
the state as opposed to 27% nationally.35
Pollution from transportation creates multiple harms, in addition to climate damage. Vehicle emissions
contribute to the formation of ground level ozone (smog), which can cause or worsen health problems such as
34 EPA, U.S. (2022). US transportation sector greenhouse gas emissions: 1990–2020. Office of Transportation and Air Quality EPA-420-
F-22-018. P. 1
35 Washington State Department of Ecology. (2021). Washington State Greenhouse Gas Emissions Inventory: 1990-2018. Air Quality
Program. P. 16. , citing EPA (U.S.). (2020). Inventory of U.S. Greenhouse Gas Emissions and Sinks: 1990-2018.
2023 BIENNIAL ENERGY REPORT 32
aggravated asthma, reduced lung capacity, reduced cognition, and increased susceptibility to respiratory
illnesses, including pneumonia and bronchitis.36
Long-term exposure to diesel particulate matter – an aspect of traffic-related air pollution that is higher near
heavily used roadways – is likely to cause lung cancer, according to the Occupational Health and Safety
Administration (OSHA). Pollutants from internal combustion engine vehicle tailpipe emissions contribute to
heart disease, stroke and cancer. Air pollution is particularly hazardous to people with pre-existing conditions.
Of the 7.7 million Washington residents, 800,000 have pediatric or adult asthma, 320,000 have COPD, 82,000
are pregnant, and 1.25 million are older than 65 when this report was written.
From 1990 to 2020, GHG emissions increased nationally. Across the country, vehicle miles traveled (VMT)
increased by 30% in that time.37 Despite gains in technology, average fuel economy actually decreased from
1990 to 2004 due to more sales of light-duty trucks. Average vehicle fuel economy began to increase in 2005
and has improved regularly since then. Light-duty vehicles, such as SUVs and trucks, continue to dominate the
U.S. market and reached 56% of new vehicles sold in model year 2020, and their fuel economy still lags that of
passenger cars. During pandemic-related restrictions from 2019 to 2020, transportation-related GHG
emissions decreased by 11%, but rural VMT has now exceeded pre-pandemic levels, with urban levels rising.
To address these needs, the 2021 SES identified key actions for GHG reduction and decarbonization:
Establish specific targets for vehicle sales, transportation demand and emissions
Create accountability measures for meeting those targets
Adopt a low-carbon fuel standard to incentivize clean fuel production, accelerate adoption of electric
vehicles and low-carbon fuels across all transportation segments, and replace fossil fuels with electricity,
hydrogen and clean synthetic or biogenic fuels
The Legislature passed landmark legislation addressing many of issues. It also affirmed a commitment to a
healthy, prosperous Washington through equitable processes to achieve ambitious goals. The next sections of
this report will identify how we are meeting those goals.
Transportation federal funding priorities
Recent legislative action enabled the Department of Commerce to lead or participate in efforts to secure
federal funding for transportation electrification, greenhouse gas reduction and decarbonization in the
transportation sphere (see Federal Funding Opportunities for Clean Transportation).
36 Weir, Kirsten. Smog in our brains. American Psychological Association (2012, July 1). Monitor on Psychology, 43(7).
37 U.S. Vehicle-Miles | Bureau of Transportation Statistics (bts.gov)
2023 BIENNIAL ENERGY REPORT 33
A. Decarbonize transportation through electrification and renewable
fuels
Transportation electrification contributes to cleaner air by substituting clean energy for fossil fuel-based
onboard combustion, removing mobile pollution sources, and concentrating power generation at fixed sites
where pollutants can be controlled. From 1990 to 2020, mobile source greenhouse gas emissions increased
nationally 6.6%, but emissions from electricity generation decreased 21.2%.
Federal funding opportunities for clean transportation
A. National Electric Vehicle Infrastructure (NEVI) Program
The Bipartisan Infrastructure Law (BIL), enacted as the Infrastructure Investment and Jobs Act (IIJA), Public Law
117-58 (Nov. 15, 2021) makes the most transformative investment in EV charging in U.S. history. It will put us on
a path to a nationwide network of 500,000 EV chargers by 2030, ensuring a convenient, affordable, reliable, and
equitable charging experience for all users. The $5 billion National Electric Vehicle Infrastructure (NEVI) Formula
Program will provide dedicated funding to states to strategically deploy EV charging infrastructure and establish
an interconnected network to facilitate data collection, access, and reliability. Initially, funding under this program
is directed to designated alternative fuel corridors, particularly along the interstate highway system. When the
national network is built out, funding can be used on any public road or in other publicly accessible locations.
B. Electric Vehicle Purchase Tax Credits
People could qualify for a credit up to $7,500 under Internal Revenue Code Section 30D if they buy a new,
qualified plug-in EV or fuel cell electric vehicle (FCV). The Inflation Reduction Act of 2022 changed the rules for
this credit for vehicles purchased from 2023 to 2032.The credit is available to individuals and their businesses.
C. Domestic Battery Manufacturing and Supply Chain Expansion
The Biden administration, through the Department of Energy (DOE), is funding projects through the Bipartisan
Infrastructure Law to expand domestic manufacturing of batteries for electric vehicles, and the electrical grid and
for materials and components currently imported from other countries. The program will provide $7 billion to
strengthen the domestic battery supply chain by supporting upstream materials processing to create the
precursor materials for batteries.
D. RAISE grants to fund transit-oriented development and land use, housing, zero-emission transit,
and multimodal planning
The U.S. Department of Transportation announced $1.5 billion in grant funding through the Rebuilding American
Infrastructure with Sustainability and Equity (RAISE) discretionary grant program for 2023. The program helps
communities around the country complete projects with significant local or regional impact. RAISE discretionary
grants help project sponsors at the state and local levels, including municipalities, tribal governments and
counties, complete critical freight and passenger transportation infrastructure projects. RAISE's eligibility
requirements allow project sponsors to obtain funding for projects that are harder to support through other U.S.
DOT grant programs.
D. Clean School Bus Program
With funding from the Bipartisan Infrastructure Law, EPA’s new Clean School Bus Program provides $5 billion
from 2022 to 2026 to replace existing school buses with zero-emission and low-emission models. EPA solicited
rebate applications for $500 million through the 2022 Clean School Bus Rebates for zero-emission and low-
emission school bus rebates as the first funding opportunity.
2023 BIENNIAL ENERGY REPORT 34
Efforts to electrify transportation are paying off: There are now over 100,000 electric cars on Washington
roads. Washington has the second largest electric vehicle market share in the country, and electric vehicles
made up 9.4% of new vehicles registered in the Seattle-Tacoma metro area from April 2021 to March 2022.
That's a higher percentage than cities such as Austin, Denver, Minneapolis-St. Paul, Chicago, Phoenix and
Washington D.C.38 Combined with the Clean Fuel Standard and other transportation initiatives, Washington
residents will realize a reduction in air pollution that provides an estimated $1.8 billion in economic benefit
from better health.39
Policymakers are recognizing the benefits and are moving to clean transportation. In 2021 and again in 2022,
Gov. Inslee and the state Legislature, with considerable public input, developed landmark legislation and
funding to address transportation’s role in greenhouse gas emissions. Chapter 182, Laws of 2022 (SB 5974)
sets a statewide target of having all publicly and privately owned passenger and light-duty vehicles of model
year 2030 or later that are sold, purchased, or registered in the state be electric vehicles. The bill also creates
an interagency electric vehicle coordinating council that will develop a plan to achieve the target.
The Clean Vehicles Program sets enforceable mandates for transition to clean vehicle, with Advanced Clean
Cars II sales mandates taking effect in model year 2026 requiring 35% of new passenger vehicles sales to be
zero-emission vehicles. That percent will increase 6% to 9% per year until zero-emission vehicles make up
100% of new sales starting in model year 2035. It will also require light and medium duty vehicles to meet
stronger emission standards. Gov. Inslee’s Executive Order 21-04 builds on EO 20-01 (State Efficiency and
Environmental Performance) to establish targets, processes and systems for the electrification of Washington
State’s fleet vehicles. The State Efficiency and Environmental Performance Office (SEEP) and the Department
of Enterprise Services (DES) are tasked with leading this transition.
In 2022, the Legislature passed a 16-year, $17 billion transportation package known as Move Ahead
Washington (Chapter 297, Laws of 2022), with six times the amount of funding for climate and clean
transportation than its 2015 predecessor. Legislators appropriated $69 million for electric vehicle charging
infrastructure development in the 2022 supplemental operating budget (Chapter 297, Laws of 2022),40 and $25
million to promote the purchase of or conversion to alternative fuel vehicles.41 Other legislative actions that will
reduce transportation emission include creating a renewable fuels office and a hydrogen hub program,
authorization for clean transportation for students, and protections for community-based electric vehicle
charging infrastructure. These efforts will result in improved public health, economic development and equity.
Many of Washington’s initiatives are informed by actions in California. A February 2022 report found that
California reduced transportation-related particulates and toxins from heavy duty vehicles by 75% since 2000.42
By combining cap-and-trade with government rules, regulations, incentives, and zoning, the state has reduced
premature pollution-related deaths, with the greatest benefits accruing in communities of color and
disadvantaged communities. California projects avoiding 3,800 premature deaths over 25 years, two-thirds of
those being people of color.
38 Kamb, Lewis and Santos, Melissa. Electric vehicles are on the rise in Seattle. Axios Seattle. July 5, 2022.
39 Woodward, Susan and Boyte-White, Claire. Independent studies show new climate change initiatives deliver significant benefits at
minimal costs. Department of Ecology, State of Washington. July 1, 2022.
40 Section 128, 226
41 Section 128, 198(a)
42 California Environmental Protection Agency. Impacts of Greenhouse Gas Emission Limits Within Disadvantaged Communities:
Progress Toward reducing Inequities. February 2022. Zeise et al, Office of Environmental Health Hazard Assessment.
2023 BIENNIAL ENERGY REPORT 35
Progress assessment: Decarbonize transportation through electrification
and renewable fuels
2021 SES recommendation 2023 update
Key actions include:
Adoption of Advanced Clean Cars II (100% ZEV
requirement for new car sales starting 2035);
Adoption of Advanced Clean Trucks (setting
Set clear and ambitious targets for moving people and
minimum ZEV percentages for truck sales); and
goods more efficiently and equitably.
EO 21-04 to fully electrify state fleets
The 2022 supplemental operating budget establishes a
Set clear and ambitious statewide targets for
target for the state that all publicly and privately owned
electrification and switching to low-carbon fuels.
passenger and light duty vehicles that are sold,
purchased, or registered in Washington of model year
2030 or later be electric vehicles.
The Move Ahead Washington program contains historic
investments in highway construction and maintenance,
transit, active transportation environmental justice, and
new local funding options.
The supplemental operating budget creates the
Interagency Electric Vehicle Coordinating Council to
create a plan for achieving the 2030 target.
Expand and align transportation funding with emissions
and equity goals.
The Legislature created two new grant programs:
$69 million for electric vehicle supply equipment
(EVSE) with focus on community charging (multi-
family buildings, office buildings, rural communities,
state and local government buildings).
$25 million for alternative fuel vehicle incentives with
prioritization given to overburdened communities,
low-income communities, and communities of color.
Areas for action
Expand programs for medium- and heavy-duty trucks
The SES holds that vehicle replacement targets should be especially aggressive for diesel-fueled, short haul
vehicle classes (such as school and transit buses, utility and service vehicles, local freight delivery, drayage
and off-road vehicles) that disproportionately contribute to local air pollution, especially in frontline
communities. Frontline communities are those that experience the “first and worst” consequences of local air
pollution from trucking.
Policymakers could consider expanding programs to address medium- and heavy-duty trucks, including those
in use at ports.
2023 BIENNIAL ENERGY REPORT 36
Crosscutting area: State agencies leading by example
Transition and support government fleets and services
Government fleets are transitioning to electrified transportation as envisioned in Washington state law, with
support from such entities as the state Department of Enterprise Services, the State Efficiency and
Environmental Performance office, and the Green Transportation Program at Washington State University.
However, current law does not contain enforceable timelines regarding that transition.
Transportation electrification presents a series of challenges for fleets at all levels of government. One
example is that about 90% of state facilities are leased, and many property owners resist installing charging
infrastructure. One potential solution is "right to charge" legislation, which authorizes installation with the
property owner held harmless.
Other issues include:
Continued implementation of Executive Order 21-04
Grid connectivity generally and especially in remote areas like state parks
Upgrading facilities such as buildings and parking capacity
Application of ADA guidelines
Payment system compatibility
Electrification of non-surface modes including maritime and aviation
Addressing micromobility, including electric bicycles of various types
Planning for electric bicycles should include high-priority locations (co-location with electric vehicle
charging, transit centers, government buildings, libraries, parks and trailheads)
Sufficient outlets
Security of the bicycle and rider
Room for large cargo bikes
Weather protection
Appropriate signage
Electrify Washington's school buses
There are over 10,000 school buses in Washington, of which only 28 are electric. The SES calls for especially
aggressive vehicle replacement targets for diesel-fueled, short-haul vehicle classes, such as school buses,
which contribute disproportionately to local air pollution. In 2022, Washington passed new legislation
enhancing the ability of school districts to electrify their fleets, and four Washington school districts have
received funding from the U.S. Department of Energy to purchase electric school buses.43
School bus electrification provides significant benefits, especially considering their use serving schoolchildren
across economic sectors throughout the entire state. A California utility and school district deployed
technology that allows electric school buses to supply the grid in case of acute power need.44 Colorado’s Clean
Truck Strategy includes a specific commitment to support the adoption of 2,000 electric school buses by 2027
43 Gutman, David and Brunner, Jim. Vice President Kamala Harris, in Seattle, touts electric school buses, infrastructure bill. The Seattle
Times. October 26, 2022. Last accessed November 16, 2022.
44 Walford, Lynn. San Diego G&E Electric School Buses with V2G from Nuvve. Auto connected car news. July 31, 2022. Last accessed
July 31, 2022.
2023 BIENNIAL ENERGY REPORT 37
and 100% zero emission school buses by 2035, focusing on school districts in disproportionately impacted
communities.
The U.S. Environmental Protection Agency has made significant funding available through a school bus
electrification rebate program. Washington state agencies, led by the Office of the Superintendent of Public
Instruction (OSPI), have assisted school districts in accessing this program but found barriers to participation.
These barriers include the technical and labor-intensive aspects of applying for grants, timing issues related to
school bus duty life, uncertainty about maintenance, supply and charging facilities, and battery efficiency with
auxiliary loads and consumption rates.
For some districts, using this grant requires a commitment to charging infrastructure, energy arrangements,
maintenance facilities and equipment, routing and availability schedules, and new rules and practices. They
say they would like to see the technology mature further before taking those steps.45
The Legislature could consider enabling a program of technical and grant support for electrification of pupil
transportation and related fleets and infrastructure.
A deeper look into workforce barriers
Workforce issues may be an impediment, as electrified transportation requires skilled service technicians to
service the vehicles as well as to install and maintain electric vehicle charging facilities. More research is
needed to identify aspects requiring advanced knowledge or certification for job training. The Legislature might
wish to invest in training programs, which could be eligible for funding under the American Rescue Plan Act.
Establishing the supply chain in Washington
Battery electric vehicles have far fewer parts compared to vehicles powered by fossil fuels. The Chevrolet
Bolt’s electric motor has three moving parts, while a four-cylinder internal combustion engine has over 100. As
electric vehicles have fewer parts, there are fewer supply chain risks that could slow manufacturing.
However, electric vehicle batteries might be unable to keep up with demand, and costs are increasing for
needed materials, such as nickel and cobalt.46 In some areas, the lead time for ordering transformers exceeds
12 months.47
The Legislature might wish to encourage suppliers and manufacturers to locate new facilities in Washington,
as some other states are doing by offering economic development incentives,48 payroll rebates, sales tax
exemptions, and investment tax credits.49
45 A 2020 study by Atlas Public Policy found “Grant funding along with other incentives will remain a critical component for the
electrification of school buses in the near future.” Satterfield, Charles et al. Electrification Assessment of Public Vehicles in
Washington. Atlas Public Policy. November 2020. Last accessed August 4, 2022.
46 Rosevaar, John. Ford CEO offers more clues about automaker’s ambitious electric vehicle plans. CNBC. July 31, 2022.
47 Nguyen, Ruby, Severson, Mike, Zhang, Bo, Vaagensmith, Bjorn, Rahman, Md Manunur, Toba, Ange-Lionel, Price, Paige, Davis, Ryan, &
Williams, Sophie. Electric Grid Supply Chain Review: Large Power Transformers and High Voltage Direct Current Systems. United
States.
48 Vock, Daniel. In the Race to Win Electric Vehicle Factories, States are Handing Out Big Incentives at Lightning Speed. Route Fifty.
February 5, 2022.
49 Vock, Daniel. The Latest State to Notch a Win in the Race to Attract EV Factories. Route Fifty. July 14, 2022.
2023 BIENNIAL ENERGY REPORT 38
Traffic safety
In addition to reducing greenhouse gas emissions, transportation electrification should be leveraged to
address other governmental imperatives such as safety. Fatalities from crashes involving a motor vehicle in
Washington have reached a 20-year high, increasing every year since 2019, and rising from 538 deaths in 2019
to 574 in 2020 and 663 in 2021.
High-visibility communications and outreach are essential parts of successful programs combating speeding
and aggressive driving. Paid advertising has proven effective in seat belt use campaigns. Traffic safety
messages could be integrated into charging facilities as a practice or as a funding requirement.
Pedestrian fatalities in Washington increased 24% from 2019 to 2021, faster than the national increase of 17%,
which is projected to reach the highest level nationally in the last 40 years. Black, Indigenous, and people of
color are over-represented in pedestrian crashes considering their share of the population. The Governors
Highway Safety Association stated “And most astonishingly, American Indians represented 0.7% of the
population but accounted for 2.4% of deaths – more than triple what would be expected if pedestrian deaths
were distributed equally among race and ethnicity categories.”
Nationally, passenger sedans are the striking vehicle in 40% of pedestrian fatalities and SUVs are the striking
vehicle in 20%. Newer vehicles have better crash avoidance technology and might have pedestrian detection
compared to older vehicles. However, larger vehicles are inherently more dangerous to pedestrians as they
have greater body weight, larger profile, and limited ability to see nearby people or objects, in addition to their
effects on parking and traffic congestion. Light trucks including sport utility vehicles, minivans, large vans, and
pickups are more likely to be involved in certain pedestrian crash types than sedans, and are “substantially
more likely than cars to hit pedestrians when making turns …”
Policymakers might want to explore mitigating measures if considering incentives that favor larger passenger
vehicles over sedans. Policymakers also might want to consider other ways electric vehicle facilities can
contribute to public safety and security such as the inclusion of threat detection sensors.
2023 BIENNIAL ENERGY REPORT 39
Crosscutting area: Environmental justice
Centering equity and justice
Extending charging solutions is critical for the widespread adoption of vehicle electrification. However,
traditional planning and processes for fossil-fueled vehicles are not optimal for electrified transportation.
One major difference is that very few gasoline vehicles are refilled at home, while 80% of electric cars are
charged at home or while parked at the workplace. All mass-produced electric vehicles have the necessary
equipment and software to charge from a standard household outlet (Level 1) and many homeowners are
installing or using heavy-appliance standard 220 volt outlets (Level 2). Those numbers could change as
publicly available stations come online.
Planners should be aware of unintended consequences of residential improvements, such as green
gentrification — that is, displacement of lower income residents. A diverse representation of community
members should be involved in charging and related infrastructure project planning. There is a considerable
body of applicable research on equitable transportation electrification that should be reviewed and
employed in infrastructure development.
Address particulate matter
Non-exhaust related particulates are an increasing proportion of vehicle emissions. This category includes tire,
brake and roadway particles. The expanded use of battery electric vehicles is not expected to have a
significant effect on non-exhaust related particulates, but these vehicles should be included in overall
strategies that might involve engineering controls, improved materials and dust suppression.50 The industry
has recognized and is taking steps to address the problem, such as developing more sustainable tires.
50 Harrison, R.M., Allan, J., Carruthers, D., Heal, M.R., Lewis, A.C., Marner, B., Murrells, T. and Williams, A., 2021. Non-exhaust vehicle
emissions of particulate matter and VOC from road traffic: A review. Atmospheric Environment, 262, p.118592.
2023 BIENNIAL ENERGY REPORT 40
B. Use energy efficiently and thoughtfully
Public transportation is an effective tool in greenhouse gas reduction.51 Traveling by public transportation uses
less energy and produces less pollution than comparable travel in personal vehicles — reducing annual CO2
emissions for a single commuter by more than 4,800 pounds per year — and provides household cost savings.
Transit fleet electrification provides further savings and is progressing in Washington, as electric transit buses
are often cost-competitive with diesel buses and state support is available through programs like the CEF and
the Green Transportation Capital Grants Program.52
One outcome of the COVID-19 pandemic was a brief but significant reduction of personal vehicle miles
traveled (VMT), resulting in a net national decrease in CO2 emissions. However, travel has resumed and
vehicle miles traveled now exceed pre-pandemic levels. Public transit ridership also declined during the
pandemic, and total ridership nationally is still only at about 55% of pre-pandemic levels.53 This is in part due to
more riders now working from home.
Progress assessment: Use energy efficiently and thoughtfully
2021 SES recommendation 2023 update
Improve transportation system planning and The 2022 supplemental operating budget includes funding for
coordination, prioritizing VMT reduction. guidelines for local governments to reduce GHG emission and
per capita VMT.
Support measures to optimize freight VMT.
The Legislature created a climate transit programs account,
funded grants for cleaner public transit, and appropriated funds
from the carbon emissions reduction account for programs
Remove barriers to transit, walking and cycling.
including active transportation and transit. Further, Move
Ahead Washington provisions provide grants to transit
agencies that adopt a fare-free policy for youth 18 years and
younger.
Areas for action
Increase public transportation ridership rates
Public transportation ridership declined by up to 15% nationally from 2012-2018. Researchers attribute the
decline to higher incomes, increased work from home, increased bus and rail fares, decreased gasoline prices,
and competition from new modes such as ride hailing. Possible approaches to increase ridership include
giving transit priority, strategic fare setting, first mile/last mile partnerships and network redesign. Other
approaches include expanding capacity and geographic coverage of existing services and supporting system
quality and reliability.
51 McGraw, Jen et. al. An Update on Public Transportation’s Impacts on Greenhouse Gas Emissions. Transit Cooperative Research
Program Research Report 226. 2021.
52 Smith, Conner. EV Hub. Public Fleet Electrification on the Horizon in Washington. Atlas Public Policy. November 16, 2020.
53 Plotch, Phil. Transit Ridership: Not Expected to Return to Pre-Pandemic Levels This Decade. ENO Center for Transportation. July 1,
2022.
2023 BIENNIAL ENERGY REPORT 41
Long-distance passenger transportation is also an important facet of mobility. Amtrak Cascades ridership
increased by 12.1% from 672,000 passengers in 2015 to 753,000 passengers in 2019, but decreased
significantly during the pandemic, dropping by 79%. Ridership has begun rising again, increasing 46% to
251,000 riders from 2020 to 2021. The Legislature could consider addressing the electrification of long-
distance passenger transportation by bus and rail.
Decrease vehicle miles traveled
Statute recognizes the imperative of reducing VMT as a strategy for greenhouse gas reduction. In spite of
efforts at the federal, state, and local levels, VMT in Washington actually increased 18% from 2019 to 2020.
State law assigns target setting for VMT to the Department of Transportation and comprehensive plan
guidance for local jurisdictions to the Department of Commerce, and the agencies work together closely on
these tasks. In its most recent report, the WSDOT implemented the recommendations of the 2021 SES
regarding baseline benchmarks and tracking VMT for all vehicles.54
Policymakers could consider innovative ways to reduce VMT. Potential approaches include piloting
greenhouse gas budgets for public employee travel, consideration of VMT implications in land use and
affordable housing efforts, sensitivity to VMT concerns in rural areas, and development of innovative new
strategies and incentives.
Design our built environment for active transportation
Evolving the built environment to encourage active transportation, such as walking and bicycling, will
supplement motorized vehicle trips and improve safety. Examples include traffic calming measures, protected
lanes for bicycles and scooters, as well as crosswalk improvements. The built environment can contribute to
greenhouse gas reduction by reducing heat island effects through measures such as urban tree canopies and
shade. Other examples include car-free streets, greenscapes and parklets. The pandemic-era repurposing of
parking spaces to outdoor restaurant seating was particularly popular, with 84% of adults in a National
Restaurant Association survey favoring allowing this practice on a permanent basis.55
54 Woehler, Kerri. Vehicle Miles of Travel (VMT) Targets – Interim Report. Washington State Department of Transportation. June 2022.
55 Consumers want to keep ‘streeteries’ in place beyond the pandemic. National Restaurant Association. March 17, 2021.
2023 BIENNIAL ENERGY REPORT 42
C. Make it easier to learn about, acquire and charge clean vehicles
According to a Consumer Reports survey, interest in electric vehicles tripled over the past two years, with 14%
of Americans saying they would “definitely buy” an electric vehicle and 71% of survey respondents indicating
interest in getting an electric vehicle.56 The survey also found that 28% of Americans will not consider buying
an electric vehicle. Some of this opposition results from lack of awareness regarding electric vehicle benefits
and incentives. The same survey found that 46% of Americans are not aware of incentives for electric vehicle
purchase and ownership.57
Progress assessment:
2021 SES recommendation 2023 update
Improve planning and oversight of battery electric vehicle The Washington EV Council is creating a statewide
(BEV) charging and fuel cell vehicle (FCV) fueling Transportation Electrification Strategy (TES) and ensuring
infrastructure that electric vehicle incentives and infrastructure are
accessible and available to all Washingtonians. The
Council is gathering input from a wide range of
Accelerate the market for BEVs and FCVs Washington residents—drivers and non-drivers, members
of communities large and small—who represent the
diversity of backgrounds and perspectives that make up
our evergreen state.
Agency activities furthering these goals include WSDOT's
successful shepherding of the federal National Electric
Vehicle Infrastructure Formula Program grant, the
upcoming EV mapping and forecasting tool, and the
Department of Ecology's adoption of clean fuel standards.
Areas for action
Alleviate attitudinal barriers to adoption
Research in California shows that the top concern of low- to moderate-income consumers is the cost of
electric vehicles.58 Technology advancements and an increase in manufacturers and models are addressing
this gap. Consumer Reports found that electric vehicles are competitive with or surpass internal combustion
engine vehicles for total cost of ownership, with an electric vehicle saving $6,000 to $10,000 over the life of the
vehicle compared to an internal combustion engine vehicle.59 About half of the vehicle owners surveyed in
California reported electric vehicle costs to be less than they expected, and 88% of respondents who owned
electric vehicles for about one year would definitely or probably recommend their vehicle to a friend.60
Legislatively authorized incentive programs will bring more electric vehicles within purchase reach of these
consumers and address concerns about availability of charging stations.
56 Valdes-Dapena, Peter. You’re much more likely to buy an EV if you’ve ever had a ride in one. CNN Business. July 8, 2022.
57 Trop, J. 28% of Americans still won’t consider buying an EV. TechCrunch. July 6, 2022.
58 Gartner, J., Cain, N. J., MacNeille, B., & McCormack, R. (2021). Analysis of LMI CVRP Participation. Center for Sustainable Energy.
59 Harto, C. Electric Vehicle Ownership Costs: Today’s Electric Vehicles Offer Big Savings for Consumers. 2020.
60 Lastuka, Amy. EV Owners Didn’t Expect to Save So Much on Operations and Maintenance. Center for Sustainable Energy. Nov. 15,
2021.
2023 BIENNIAL ENERGY REPORT 43
A general concern is whether a vehicle can retain a charge long enough to complete the planned travel,
sometimes referred to as range anxiety. The range on electric vehicles is increasing rapidly. Passenger
vehicles currently on the market can travel up to 405 miles on a single charge, with a median range of 234
miles for electric vehicles sold in the U.S. These distances far exceed typical use in Washington, where an
average urban day involves five trips totaling 38 miles, and a rural resident averages six trips and 46 miles.
Adding vehicles to the grid does have challenges. One is increased pollution from stationary sources; however,
even when manufacturing emissions are considered, electric vehicles are preferable. According to the Union of
Concerned Scientists, a gasoline-powered vehicle would need to get 91 miles to the gallon to compete with
electric vehicles on emission reduction.61
It is a crucial time for the interagency electric vehicle coordinating council and its mission. Nationally, 5% of
new cars sold are powered only by electricity. The technology industry generally recognizes 5% as a “tipping
point” for adoption, signaling the end of a fad and the beginning of widespread use, demonstrated by
technologies such as mobile phones, the internet, LED lightbulbs, and electricity itself. If the experience of
other countries is a guide, then 25% of new car sales in the U.S. will be electric by the end of 2025.62
The experience of other countries shows that attitudinal barriers such as range anxiety, charging time, and
consumer awareness can be overcome through policy commitment and support measures.63
Address market forces to increase EV access
While the quantity and availability of electric vehicles is improving, consumers in Washington do not have the
model availability or choices found in some other states. This disparity appears to be a result of vehicle
manufacturers perceiving more favorable markets elsewhere, particularly in California. This result is
counterintuitive, as California is generally considered to have the country’s most stringent regulations, but
might be attributed to incentive programs and structures such as the Clean Vehicle Assistance Program, which
enabled 90% of purchasers responding to a survey to purchase their vehicles.
California’s Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project, including the Innovative Small
e-Fleet set aside, Zero-Emission Vehicle Market Development Strategy and nonprofit entities such as
CALSTART are examples of successful transition-facilitating structures. Policymakers might wish to evaluate
establishing such structures and programs in Washington. In particular, vehicle purchase incentives, along with
public charging infrastructure expansion, could alter market dynamics in Washington’s favor while addressing
equity issues.
Battery technology needs to advance sufficiently to address the issue of battery fires. As reported by
Electrek,64 electric car fires are no more common than gasoline car fires, but they get more attention and can
start without an external cause. Electrek attributes this to faulty battery modules. Many auto manufacturers
have provided emergency response guides designed for fire departments and first responders. Policy makers
might wish to study the question of battery safety regulation and requirements.
61 Reichmuth, David. What are the Benefits of Switching from Gasoline-Powered Cars and Trucks to Electric? Union of Concerned
Scientists. July 25, 2022.
62 Randall, Tom. US Crosses the Electric-Car Tipping Point for Mass Adoption. Bloomberg Hyperdrive U.S. Edition. July 9, 2022.
63 Dimanchev, E., Qorbani, D. and Korpås, M. (2022). Electric Vehicle Adoption Dynamics on the Road to Deep Decarbonization. In The
4Ds of Energy Transition, M. Asif (Ed.).
64 Lambert, Fred. Jaguar I-Pace catches on fire again – is this another Bolt EV battery fire situation? Electrek. August 1, 2022. Last
accessed August 1, 2022.
2023 BIENNIAL ENERGY REPORT 44
Looking ahead and prioritization
The Interagency Electric Vehicle Coordinating Council is responsible for charting the path to zero emissions.
Commerce and the Department of Transportation are co-leading the development of the state's Transportation
Electrification Strategy, in collaboration with other agencies and participants. That goal must equitable, just,
and include economic development and benefits for all communities.
The policy and economic environment around electric vehicles is rapidly shifting. More companies are
participating in the expansion of electric vehicles and infrastructure. GM, Pilot Flying J and EVgo announced
plans for a national DC fast-charging network with 2,000 charging stalls open to all brands of electric vehicles
to be operational in 2023. Rivian delivered 4,467 electric vehicles in the second quarter of 2022, on track for
25,000 vehicles total in 2022.65 Technologies like inductive charging, innovative concepts like hiding chargers
under sidewalks, combined effects from autonomous, electric, and shared vehicles, blurring distinctions
between modes especially in last-mile freight delivery, and other ideas we cannot yet imagine are arriving
regularly with great potential.
Emerging technologies will alter the transportation energy trajectory. The state must prepare its governmental
structures to accommodate and respond to advances in computing, engineering materials, manufacturing,
artificial intelligence, automation and robotics, communication, human-machine interfaces, sensors, and
renewable energy generation and storage. The White House has also recognized these areas as particularly
significant to national security.
These gains do not come without potential issues. Emerging technologies will serve both to accelerate the
ability to reduce emissions and jeopardize the emission reduction mission. For example, a new home charger
connector purports to eliminate the need to modify a home’s electrical panel. On the other hand, connected
and automated vehicle technologies could increase emissions by 10% by increasing vehicle miles traveled and
worsen travel equity across income groups if alternative transportation methods altogether are not employed.
65 Trop, Jaclyn. Rivian says it’s on track to deliver 25,000 vehicles this year. TechCrunch. July 6, 2022.
2023 BIENNIAL ENERGY REPORT 45
Buildings and natural gas
Key building sector actions from the 2021 State Energy Strategy
A. Establish a building decarbonization policy framework
Develop a state decarbonization plan for buildings covering each part of the buildings sector in every region of
the state.
B. Maximize energy efficiency and electrification in buildings
Develop and implement a high-efficiency electrification program to incentivize adoption of heat pump
technology in existing residential and nonresidential buildings, including marketing, workforce development, and
certification and equitable distribution of incentives.
C. Meet the low income need in buildings
Expand funding for the state’s successful Weatherization Plus Health program as part of a broader strategy to
reduce energy burden and improve health outcomes for low-income households.
D. Develop plans for the long-term transition of the natural gas distribution system
Natural gas distribution companies should work with regulators and stakeholders to develop comprehensive and
equitable plans to transition from the use of fossil natural gas.
State agency key action
Invest in projects that help state agencies comply with the Clean Buildings Act (2019) and its expansion.
The 2021 SES deep decarbonization modeling analysis for the buildings sector identified a combination of
energy efficiency and electrification as the least-cost strategy to meet the state’s greenhouse gas emissions
limits. Over the past two years, Commerce and the state have worked to advance the recommended policies
and actions required to implement an electrification strategy in Washington buildings.
Buildings represent approximately 20% of Washington’s greenhouse gas emissions, including emissions
related to electricity generation.66 The building sector is the fastest growing source of statewide emissions.
The greatest portion of the sector’s emissions come from the direct combustion of natural gas and other fossil
fuels in buildings for space heating, water heating and cooking. In addition to energy use, buildings contribute
to greenhouse gas emissions through the manufacturing of construction materials and carbon embedded in
refrigerants used in heat pumps and cooling systems.
Decarbonizing the building sector requires the state to:
Maximize energy efficiency
Maximize electrification
Optimize buildings as grid resources
Minimize embodied carbon and refrigerant emissions
Over the past biennium, Washington has seen significant changes in the buildings sector, both in practice and
policy from the Legislature. The passage of Chapter 117, Laws of 2022 (SB 5722) expands the building
performance standard opportunity established by the Clean Buildings Act (Chapter 285, Laws of 2019) by
66 Washington 2021 State Energy Strategy
2023 BIENNIAL ENERGY REPORT 46
requiring energy benchmarking, operations and maintenance and energy management planning for multifamily
and smaller commercial buildings. This would become a performance standard in 2031.
Additional legislative efforts from the 2021 and 2022 sessions brought improvements to the buildings sector,
including consideration of all-electric systems in new capital projects, regulation of hydrofluorocarbons (HFCs)
used in buildings, and the minimum energy efficiency of household and commercial appliances. The
Washington Legislature and Gov. Inslee approved operating budgets including more than $150 million for
building decarbonization, $10 million for building electrification through the CEF, and $20 million in the 2021-
2023 capital budget for low-income weatherization.
2021 State Energy Strategy Electrification Scenario: This graph shows Washington
building sector emissions by fuel type.
In 2022, the Washington State Building Code Council approved a package of residential and commercial
energy codes that would significantly shift newly constructed buildings towards electric end uses. The UTC
continues work on the decarbonization pathways for natural gas utilities, which will provide meaningful
direction to the approaching transition to a decarbonized future.
Despite this progress, continued impacts from the COVID-19 pandemic have stymied global supply chains,
limiting the availability of critical building decarbonization technologies, such as heat pumps and silicon
microchips. Economy-wide labor shortages mean Washington has fewer contractors than required to meet the
retrofits and weatherization work that must occur in the next decade. Furthermore, building decarbonization
has largely occurred in buildings that are well resourced. Current statewide efforts to maximize energy
efficiency and savings in low-income households are not achieving the SES’s stated goal of meeting 10% of
low income need.
Looking to the future: The pace and scale required to meet emissions limits
Recent analysis by the Clean Energy Transition Institute (CETI) based on 2021 SES decarbonization modeling
found that Washington's emissions have slowed over the past 30 years, but have not reduced emissions from
2023 BIENNIAL ENERGY REPORT 47
1990 levels.67 The slowed increase of energy use is attributable to Washington’s mix of energy codes,
appliance standards, regional and state energy planning, utility programs, market transformation efforts, and
other building-related policies.
Washington state agencies and higher education institutions have emissions limits and developed strategies
to achieve these limits, which are in the seventh biennial Reducing Greenhouse Gas Emissions in Washington
State Government report. Implementing these strategies will require collaborative efforts and sustained
investment. State and local policymakers, market actors, advocates, and implementers must take critical
action to achieve the scale of building decarbonization at the pace required to meet the state’s emissions
limits.
A. Establish a building decarbonization policy framework
Over the past two years, Washington developed much of the building decarbonization policy and the programs
needed to implement policies that will help building owners reduce their energy use and electrify. The passage
of Chapter 177, Laws of 2022 (SB 5722) lays the groundwork for Washington's existing nonresidential
buildings to transform into high-performing buildings that use less energy. Over the next nine years, covered
buildings (or "Tier 2" buildings) will be required to benchmark their energy use using Energy Star Portfolio
Manager and create operations and maintenance plans for lowering their energy use. These activities will
inform a building performance standard for smaller commercial and multifamily buildings beginning in 2031.
Buildings covered by the Clean Buildings Act have program support to make energy efficiency improvements.
The Legislature appropriated an additional $150 million in Chapter 177, Laws of 2022 for early adopter
incentive funding to help Tier 2 building owners measure and evaluate energy use and plan for improvements.
Progress assessment: Building decarbonization
2021 SES recommendation 2023 update
Expand the scope of the building performance standard Chapter 177, Laws of 2022 (SB 5722) established a new
to include buildings with less than 50,000 square feet with tier of covered buildings under the Clean Buildings Act
a stepped path to low energy and zero carbon by 2050. (2019), which includes non-residential buildings between
20,000 and 50,000 square feet, and multifamily residential
buildings over 20,000 square feet. Managers and owners
at these buildings will be responsible for benchmarking,
operations and maintenance, and developing an energy
management plan.
67 Operation 2030
2023 BIENNIAL ENERGY REPORT 48
Dissemination of [building performance standard] In 2021, Commerce staff conducted about 45 trainings
information should be operationalized at the state level and presentations, as well as four live Q&A sessions to
through training programs. increase awareness, solicit feedback, and support
stakeholders in pursuing compliance with the Standard.68
Commerce produced educational materials and
collaborated with utilities, nonprofit organizations and the
WSU Energy Program to develop training workshops for
consultants and energy professionals. The Commerce
SEEP office conducted additional training for state
agency facility managers.
Develop a residential sector building decarbonization Commerce, working through and with a selected
implementation plan. contractor, is developing a detailed residential sector
building decarbonization implementation plan. The
development of this plan will include extensive
stakeholder involvement, community engagement and
public input. This plan will be published June 30, 2023.
Areas for action
Maximize the potential of building performance standards
Over the next four years, the buildings sector must mobilize to prepare covered buildings for compliance with
the Clean Buildings Act, which begins in 2026 for the state's largest buildings. Ensuring that there is robust
technical and financial support for the state's most under-resourced building owners is critical to successfully
transforming existing commercial buildings in Washington. Furthermore, as rulemaking for the Tier 2
expansion of the Clean Buildings Act gets underway in 2023 and multifamily residential buildings become
subject to benchmarking and operations and maintenance requirements, protecting tenants and maintaining
affordable housing will be critical. The Clean Buildings Expansion Timeline is shown in the figure below.
Clean Buildings Expansion Timeline (SB 5722)
Public buildings, including buildings owned by state agencies, are also subject to the Clean Buildings Act. State
agencies and local governments need supportive steps and pathways to comply with state decarbonization
policies. State agencies are already required to develop and submit strategies for meeting greenhouse gas
limits under RCW 70A.45.050. The passage of Chapter 178, Laws of 2022 (HB 1280) requires agencies to
68 Department of Commerce, 2022 Clean Buildings Legislative Report
2023 BIENNIAL ENERGY REPORT 49
consider an all-electric option when conducting a lifecycle cost assessment (LCA) for capital projects, and
incorporate the social cost of carbon into lifecycle analysis tools. This will give state buildings project
decision-makers the discretion, but not the requirement, of considering higher performance, lower emissions
options for building construction.
B. Maximize energy efficiency and electrification in buildings
Newly constructed buildings
Building energy codes specify minimum energy efficiency standards and characteristics for newly constructed
residential and commercial buildings. Decarbonization modeling from the 2021 SES found that investment in
energy efficiency and building electrification is the most cost-efficient way to meet the state’s greenhouse gas
emissions limits.
The 2021 Washington state energy code cycle resulted in necessary progress for Washington's new buildings
and aligned with required efficiency improvements in statute (RCW 19.27A). The State Building Code Council
passed residential and non-residential codes which would require high-efficiency electric space and water
heating in new construction statewide, with few exceptions. Local governments are also taking action to
electrify their buildings through codes, standards, and other building decarbonization tools, as outlined in the
following table. The availability of federal funding for buildings over the past two years has risen to meet this
critical moment (see the "Inflation Reduction Act" section in this chapter).
Local governments decarbonizing new construction (2021 to 2023)
Jurisdiction Action
City of Bellingham Passed an ordinance prohibiting the use of natural gas in space and water heating in newly
constructed commercial buildings and multifamily buildings above three stories.
City of Tacoma Adopted a resolution to strengthen the city's commitment to decarbonization, which bans the use
of natural gas in newly constructed city-owned buildings.
City of Seattle Adopted local codes that restrict fossil fuel-powered space and water heating beginning in 2022,
in addition to providing electrical receptacles and circuits where gas-fired appliances exist, in
order to accommodate future electric appliances. These changes apply to commercial buildings
and multifamily buildings greater than three stories.
City of Shoreline Passed an ordinance that limits natural gas in newly constructed commercial and large
multifamily buildings.
Existing buildings
A study on the financial impact of fuel conversion on consumer-owned utilities and customers, contracted by
Commerce and conducted by Energy and Environment Economics, Inc., found that while electrifying new
buildings is cost-effective in Washington, there are significant opportunities and financial barriers to
electrifying existing buildings (see Section D. of this chapter). Through Commerce initiatives such as Energy
Retrofits for Public Buildings grants and the Weatherization Plus Health program, existing public buildings and
low-income households can be retrofitted for energy efficiency, health, safety, and decarbonization benefits.
While these programs successfully reach some public buildings and low-income households, they alone do not
meet the need or demand for safe, healthy, and energy-efficient buildings. Significant opportunities remain in
improving existing buildings not covered by the Clean Buildings Act, which are commercial, multifamily and
single-family residential buildings under 20,000 square feet.
2023 BIENNIAL ENERGY REPORT 50
Progress assessment: Maximizing building energy efficiency and
electrification
2021 SES recommendation 2023 update
The Legislature should revise the energy code to require The Washington State Building Code Council approved
the state Building Code Council adopt zero-carbon and all- updated commercial and residential energy codes
electric construction and efficiency mandates no later requiring electric space and water heating in new
than the 2027 code, fully achieving incremental construction, with some exceptions. These updates fully
improvements each code cycle from 2021 to 2027. achieve the incremental efficiency improvements required
of the 2021 code, as prescribed in statute. The 2021
Consider additional energy code provisions to expand Washington State Energy Code for Commercial Buildings
deployment of DER technologies, such as on-site also includes a provision that would require large
generation and utility-integrated load control. commercial buildings be solar-ready.
Update Office of Financial Management (OFM) Since 2021, OFM has developed revised language around
requirements for capital budget requests to include greenhouse gas emissions and clean buildings, and asks
electrification in all applicable projects. capital projects to consider an electric alternative when
analyzing building end uses. OFM instructed state
agencies to label budget submittals for the 2023-25
biennium with a "CBPS" code to better understand the
resources required to comply with clean buildings
standards. These actions provide better information for
decision-makers, allows state agencies and project
stakeholders to understand which capital projects are
addressing these three critical areas, and asks the state
to prioritize projects that reduce emissions.
The State Energy Office should develop and implement a In the 2021-23 capital budget, the Legislature
high-efficiency electrification program to incentivize appropriated $10 million to Commerce's CEF for building
adoption of heat pump technology in existing residential electrification and high efficiency electric equipment
and nonresidential buildings, including marketing, projects grants. The Building Electrification Program
workforce development and certification, and equitable provides grants to multifamily residential and commercial
distribution of incentives. building owners and tenants to deploy and demonstrate
grid-enabled, high-efficiency, all-electric buildings that
reduce greenhouse gas emissions and accelerate the
path to zero energy. Applications for projects opened in
2022.
2023 BIENNIAL ENERGY REPORT 51
Areas for action
Increase the number of homes with high efficiency electric equipment
The SES recommends that the State Energy Office “develop and implement a high-efficiency electrification
program to incentivize adoption of heat pump technology in existing residential and nonresidential buildings …”
While the CEF received $10 million for grants to innovative building electrification projects, this amount is
small compared to the scale of funding required to incentivize electric technologies. Providing funding for a
high-efficiency electric equipment or heat pump programs for low- to moderate-income households is one way
the Legislature can deliver on equitable residential building decarbonization.
Crosscutting area: State agencies leading by example
Support other state agencies in their efforts
The State Efficiency and Environmental Performance (SEEP) Office coordinates with partners across state
government to reduce greenhouse gas emissions, reduce energy costs, and eliminate solid waste and
toxic materials from state agency operations. State agencies must comply with many of the same
statutes as non-residential buildings, but face challenges in resource planning to meet energy mandates.
To comply with the Clean Buildings Act, which includes benchmarking energy use and meeting energy use
intensity (EUI) targets, agencies require funding for specific building technologies (such as sub meters),
energy audits, and additional staff or consultant resources to make energy efficiency improvements. SEEP
maintains an inventory of state buildings subject to this act and works closely across state government to
identify and support resource needs.
Implement state building codes
With effective implementation, building energy codes can support energy cost savings and complementary
benefits associated with electricity reliability, air quality improvement, greenhouse gas emission reduction,
increased comfort, and economic and social development. Ensuring that the workforce understands energy
and building codes is foundational to meeting the state’s energy and emissions goals. With Washington on the
precipice of adopting energy efficient, electrified energy codes, there is a clear need to ensure code
stakeholders are equipped to deliver compliant buildings. Commerce will pursue funding opportunities for
energy code implementation, auditor training, and technical assistance for local governments.
Energy retrofits for public buildings
The State Energy Strategy recommends the state lead by example through investments in public capital projects,
especially for schools, hospitals, and rural public buildings. The Energy Retrofits for Public Buildings program
provides a pathway for public agencies to substantially improve building performance, reduce operating costs,
and reduce GHG emissions.
Many public facilities were constructed before the adoption of new energy codes and do not address the growing
need to provide efficient cooling. Public entities are often resource-constrained and face significant barriers to
accessing clean energy improvements, including shortages in staff time, limited grant writing experience, and
challenges in obtaining match funds.
This program helps public agencies build sustainable facilities, reduce deferred maintenance backlogs, save on
utility bills by installing solar power, create living wage jobs, and contribute to our state’s climate goals.
Next steps
To scale this program, leverage federal funding opportunities, and meet climate and environmental justice goals
for public facilities, this grant program requires additional funding through the 2023-25 biennium.
2023 BIENNIAL ENERGY REPORT 52
C. Meeting the low-income need in buildings
Low-income households are an important consideration to decarbonize the residential sector, as they bear a
disproportionate housing and energy cost burden relative to other households. The state has several important
tools that help low-income households access buildings improvements to live safely, healthily and affordably.
Commerce, in partnership with the WSU Energy Program, administers multiple weatherization programs
serving low- and moderate-income households throughout Washington. The Weatherization Plus Health
program is a statewide investment in Washington’s clean energy future that delivers affordable housing
preservation and efficiency upgrades by providing repairs, health and safety improvements, and installation of
energy efficiency measures in low- income communities. The improved health conditions and reduced energy
and health costs resulting from this program have a positive effect on the state by reducing energy assistance
needs, Medicaid costs, carbon emissions, and energy arrearages. Conservatively, these efforts are estimated
to have a three-fold benefit; that is, for every $1 invested in weatherization programs, there is a $3 gain to
residents and the greater state climate efforts.69
Additional Washington weatherization programs include:
The Community Energy Efficiency Partnership (CEEP) is a complimentary program to low-income
weatherization, focused on providing energy efficiency upgrades for moderate-income households and
small businesses. The WSU Energy Program administers CEEP, which the state has funded state since
2012.
The Home Rehabilitation Loan Program (also referred to as the Rural Rehabilitation Loan Program) is a
revolving, deferred loan program that provides up to $40,000 to eligible low-income homeowners to
address health, safety and durability issues in primary residences in rural areas of the state. As a result,
these homes can now access weatherization services.
Today, weatherization delivers affordable housing preservation and efficiency upgrades in single and multi-
family homes in every county and for seven Native American tribes. Commerce partners with 27 local
community action agencies, municipalities, housing authorities and tribal agencies to deliver services.
Household measures are installed by a combination of agency-based crews and more than 140
weatherization, HVAC, plumbing, and electrical contractors across the state.
Progress assessment: Meeting the low-income need in buildings
2021 SES recommendation 2023 update
Prioritize decarbonization of public buildings in low- The Energy Retrofits for Public Buildings program
income communities, specifically public schools and prioritizes projects in rural, lower-income, overburdened
hospitals. and tribal communities. In 2022, 91% of grant funds were
directed to these communities. Projects provide benefits
to these communities by reducing the costs of providing
public services, improving the comfort, health and safety
of communities, building local workforces, and reducing
local air pollution.
69 About the Weatherization Assistance Program | Department of Energy
2023 BIENNIAL ENERGY REPORT 53
Expand funding for the state’s successful Weatherization The Weatherization Plus Health program was funded in
Plus Health program as part of a broader strategy to the capital budget for the 2021-23 biennium, but needs
reduce energy burden and improve health outcomes for continued funding in the 2023-25 biennium to meet the
low-income households impacted by the COVID-19 low-income household need and to leverage federal IIJA
pandemic. funding.
The Legislature should provide universal access to high In 2019, the Legislature enacted the Washington
quality broadband to enable grid integration of appliances Broadband Act, which established access, download, and
and equipment, optimizing buildings and managing load. upload speed goals for residences, businesses, and
communities. Under RCW 43.330.536, the entire state
must have access to broadband that operates at 25/3
megabits per second (Mbps) scalable by 2024.
Areas for action
Develop a Weatherization Plus Health strategy
The 2021 SES noted that only a fraction of roughly 750,000 income-eligible households receive weatherization
services each year due in part to funding, regulatory and system capacity constraints. Funding this program,
and the broader set of programs that support and enhance weatherization, provides critical, direct support
for vulnerable populations. Expanding the suite of weatherization services statewide, as well as prioritizing
multifamily housing, fossil-fuel heated housing, and high-energy burden communities, requires an
appropriation of funding in the 2023-25 capital budget.
Commerce commissioned a study to better understand the building energy efficiency needs of low-income and
overburdened communities, and how to improve service delivery. This study will provide Commerce, WSU and
the Legislature with a roadmap for scaling up residential energy efficiency programs, such as the Rural
Rehabilitation Loan program, which has been difficult to implement due to a variety of challenges. This study
will help identify service gaps and marketplace need for a tailored loan product, which will inform how this
program will change in the future. The low-income needs assessment is under development and will be
finalized in 2023.
Transform the market for low-carbon equipment
Market transformation to sales of mostly high-efficiency electric equipment and deep energy retrofits must be
achieved by 2030 to decarbonize the building stock by 2050.70 The 2021 State Energy Strategy recommends
that the state develop a market transformation team within the State Energy Office. The office will be charged
with guiding the collaborations required to implement a market transformation intervention. This team will
ensure market transformation programs have carve outs and direct funding for low- and moderate-income
households and tribal nations. This recommendation will be central to the State Energy Office's
implementation of the Inflation Reduction Act. Program design that centers an inclusive public process will
inform how these unprecedented funds are distributed.
70 Operation 2030
2023 BIENNIAL ENERGY REPORT 54
D. Natural gas
A key finding from the 2021 SES is that meeting the state’s greenhouse gas reduction limits requires
immediate and significant reductions in natural gas emissions. Natural gas appliances leak methane into our
homes and communities, triggering asthma and other respiratory diseases for children and other vulnerable
people in homes served by natural gas. Addressing the natural gas system is both a climate and public health
imperative. Additionally, this system and its supply chain employ a significant number of people, and impacts
to the current workforce must be addressed and planned for with input from these workers.
There is currently no required plan for natural gas utilities to meet the state’s greenhouse gas emissions
targets. Utilities should be required to develop plans with a mix of emissions reduction strategies such as
electrification and renewable natural gas in the near term. Implementation of clean heat plans would result in
energy cost savings and air quality benefits for people who switch from fossil natural gas to electricity and
clean fuels. Natural gas utilities should be required to provide an equitable distribution of benefits to
households and businesses as they transition to clean heat.
The UTC and the Legislature need to address the existing natural gas system, as well as its continued
expansion. This is especially important now that the CCA has been enacted. The CCA will require that gas
companies surrender allowances to cover greenhouse gas emissions from the use of their product, and
expanded use of fossil natural gas will increase the allowance requirements on gas companies. The program
provides no-cost allowances to cushion existing customers from rate shock, but most new customers are
excluded from that cost protection mechanism. The credit mechanism for existing customers must be
designed to ensure that the per unit price of natural gas71 reflects the cost of allowances, so it is reasonable to
expect that the volumetric charges will increase for all natural gas customers.
The tendency for line extensions to lock in customers creates further cause for concern. Once a household is
connected to the gas distribution system, it is difficult and expensive to transition to another fuel source,
leaving customers at risk of higher costs in the future. If customers discontinue gas service anyway, the
investment costs associated with their original connection will likely result in some combination of stranded
costs borne by company investors and increased rates for remaining customers. To support gas utilities and
their workers in the transition to clean heat, gas utilities should be allowed to recover decarbonization efforts
through customer rates.
In 2021, the Legislature funded the UTC to examine feasible and practical pathways for investor-owned electric
and natural gas utilities to contribute their share to greenhouse gas emissions reductions. The study will also
analyze the impacts of energy decarbonization on residential and commercial customers and the natural gas
and electric utilities that serve them. This study, and its findings, are expected in 2023.
Next steps
The Legislature should require the natural gas industry develop plans for an equitable transition to clean
heat.
The UTC and Legislature should review results of the 2023 natural gas examination and consider if further
measures are needed to reduce natural gas emissions and secure protections for low-income households
and overburdened communities.
71 In the United States, natural gas can be priced in units of dollars per therm, dollars per MMBtu, or dollars per cubic feet.
2023 BIENNIAL ENERGY REPORT 55
The Inflation Reduction Act
The Inflation Reduction Act (IRA) (2022) represents a $370 billion investment in the U.S. economy over
the next 10 years. Some of this will reach Washington as formula funding, including the State Energy
Office and federally recognized tribes.
The IRA will directly affect Washington's building decarbonization efforts in the following ways:
High efficiency electric equipment
The IRA includes scaled point-of-sale rebates for electric home equipment (such as heat pump space
heaters, dryers and water heaters) purchased by low and moderate income households. It also
includes a residential energy efficiency tax credit, which will have tax rebates of up to $2,000 for heat
pumps and heat pump water heaters, and additional rebates for exterior doors, home energy audits,
and other home efficiency measures.
Whole-home retrofits
In addition to tax credits for highly efficient new homes, the IRA will provide state energy offices with
funding to implement performance-based, whole-home rebates. This provides low- to moderate-
income single and multifamily households scaled rebates depending on income and energy efficiency
savings.
Investment in the electrification workforce
The IRA awards $200 million nationally for the development of home energy efficiency contractor
training grants. The energy efficient commercial buildings tax credit also offers tiered incentives based
on living wage and apprenticeship requirements.
Develop plans for the long-term transition of the natural gas distribution system
The 2021 SES recognized that the state must eventually address emissions from fossil natural gas to meet its
climate and energy goals, but noted that an immediate end fossil natural gas use to buildings was neither
feasible nor desirable. It called instead for developing a well-planned transition to carbon-free energy sources
such as electricity over two to three decade.
The natural gas distribution system in Washington currently provides energy to 1.2 million residential and
107,000 commercial customers. As Figure 1 shows, the SES expects the fuel mix in buildings to shift
dramatically as Washington pursues building electrification and decarbonization.
We understand more about the opportunity to transition from natural gas to electricity than ever before.
Directed by the Legislature, Commerce consulted with Energy and Environment Economics, Inc., to analyze the
financial impact of fuel conversion on consumer owned utilities and customers in Washington.72 The research
found that electrification reduces total greenhouse gas emissions across all the building segments and
regions studied.
72 Financial Impact of Fuel Conversion on Consumer Owned Utilities and Customers in Washington
2023 BIENNIAL ENERGY REPORT 56
Lifetime emissions of a gas furnace vs. a standard heat pump HVAC system in a single-family home in Richland Energy Services'
service area
The report identified several near-term opportunities where electrification can deliver cost savings for
consumer owned utility customers and challenges to building electrification. It made the following
recommendations:
Incentivize all-electric new construction
Target heat pump HVAC at customers that need new air conditioners and those currently relying on fuel oil
or propane for heating
Provide subsidies to lower the incremental consumer costs of electrification
Ensure efficient price signals are conveyed in electric and natural gas rates
Implement measures to alleviate peak load impact from electrification
Carefully design policies to support the large infrastructure needs for building electrification and potential
high-capital investments
However, of the natural gas recommendations in the 2021 SES, Commerce finds that little progress has been
made to decarbonize the natural gas distribution system.
2023 BIENNIAL ENERGY REPORT 57
Progress assessment: Develop plans for the long-term transition of the
natural gas distribution system
2021 SES recommendation 2023 update
Natural gas distribution companies should increase Washington natural gas utilities have taken limited steps to
energy efficiency and use of hydrogen and renewable advance energy efficiency and hydrogen and renewable
natural gas to achieve near-term reductions in GHG natural gas (RNG) to reduce GHG emissions from natural gas:
emissions from natural gas.
Puget Sound Energy (PSE) aims to grow the
percentage of RNG in its mix from 0.5% of its annual
gas volume to nearly 3.5% of 2024 sales. The utility
already offers a voluntary RNG program for customers
and is running two hydrogen pilots to test blending
impacts on the natural gas distribution system, among
other things.
In 2021, Avista Corp. announced goals to reduce
natural gas emissions 30% by 2030 and to be carbon
neutral in its natural gas operations by 2045. Avista
also offers a voluntary RNG program and continues to
analyze how it will invest in RNG, hydrogen, and other
renewable biofuels.
Cascade Natural Gas continues to rely solely on
energy efficiency programs with no apparent plans to
incorporate renewable natural gas or hydrogen into its
distribution system.
The Legislature and the UTC should ensure that the Initial actions to limit growth of fossil natural gas consumption
state’s climate policy and emissions limits are in Washington include:
reflected in the regulation of natural gas companies
and explore legislative and regulatory actions to The UTC's decision in 2021 to reverse a line extension
restrict growth of the natural gas system and the use policy that encouraged expansion of the natural gas
of fossil natural gas where zero-emission options are distribution system.
available. The State Building Code Council's passage of revised
energy codes, which require electric heat pumps for
most space and water heating applications in most
new or commercial and residential buildings beginning
in July 2023.
In the 2021 state operating budget (Chapter 334, Laws
of 2021), the Legislature funded two analyses to
support plans for an equitable transition to clean heat,
which would reduce carbon emissions and bring
positive health benefits to households. The first
analysis was of the financial impact of fuel conversion
on consumer owned utilities and customers in
Washington. In the second, the UTC must examine
feasible and practical pathways for investor-owned
electric and natural gas utilities to contribute their
share to greenhouse gas emissions reductions as
described in RCW 70A.45.020, and the impacts of
energy decarbonization on residential and commercial
customers and the electrical and natural gas utilities
that serve them.
2023 BIENNIAL ENERGY REPORT 58
Areas for action
Ground source heat
Pursue opportunities for near-term emissions reductions
pumps Natural gas utilities have taken limited steps in pursuing RNG and
Ground source heat pumps (GSHP)
natural gas alternatives (see the 2023 update). In light of this, the
are a technology in use since the
Legislature should consider directing the UTC to require that every
1940s. They heat buildings more
efficiently and cleanly than gas company offer a voluntary natural gas program and continue to
traditional gas furnaces. push natural gas companies to expand their energy efficiency
program funding levels. The Legislature, UTC, and State Energy
Massachusetts is piloting two Emergency Management Office should continue to monitor
projects to harness geothermal
hydrogen pilots for adverse impacts on the natural gas distribution
heat-to-heat and cool buildings. As
system and overburdened communities.
the U.S. Department of Energy
explains:
Plan for the long-term transition to clean heat
"Relative to air-source heat pumps, Over the past two years, the UTC reevaluated the practice of
GSHP are quieter, last longer, need subsidizing line extensions and required utilities to better align their
little maintenance, and do not methodologies for calculating line extension subsidies with the true
depend on the temperature of the costs of line extensions. Despite this, natural gas companies do not
outside air. System life is estimated
yet have any UTC-approved plans for an equitable transition to clean
at 25 years for the inside
heat, and there are no rate protections for low-income customers or
components and more than 50
years for the ground loop." regulations that require that the expansion of the natural gas system
not increase greenhouse gas emissions.
The long-term transition to clean
heat requires Washington utilities to Recognizing that the long-term transition to clean heat would lead
begin harnessing new technologies to cost savings and improved environmental and health outcomes,
now. Networked GSHP systems, the Legislature should require natural gas companies transition to
also called "geogrids," form a shared
clean heat and provide an equitable distribution of benefits to
loop by connecting multiple
households and businesses. Transition plans should address
individual GSHPs, creating systems
that can move waste heat between potential impacts on low-income customers, overburdened
buildings. communities and gas company workers, evaluate any need to
accelerate the cost recovery of gas company investments, and
Perhaps the most compelling ensure that the state's emissions reduction limits are achieved.
feature of these systems is the
ability to utilize existing natural gas The Legislature, UTC, State Building Code Council and Commerce
infrastructure in the ground.
should implement the recommendations in Financial Impact of Fuel
Furthermore, as Washington
Conversion on Consumer Owned Utilities and Customers in
transitions from fossil gas, there is
an existing workforce trained in Washington Report. In addition, the UTC should end line extension
installing natural gas pipes and subsidies. Natural gas companies should be required to submit
operating networks. Geogrid evaluations of the potential of ground source heat pumps in their
systems have the potential to create service areas (see sidebar) to the UTC. Furthermore, the Legislature
jobs for these skilled, local workers. should consider funding for pilot projects that test new clean heat
technologies, such as networked ground source heat pumps.
The New York State Energy
Research and Development
Authority is funding networked
GSHP projects as part of its
Community Heat Pump Pilots
program.
2023 BIENNIAL ENERGY REPORT 59
Industry and renewable fuels
The 2021 SES made many recommendations for addressing Washington's industrial operations emissions and
energy use. These recommendations also address the role of renewable fuels like green electrolytic and
renewable hydrogen, and the jobs and workforce implication of industrial decarbonization. Decarbonizing
industrial operations, including refining and production of end products like pulp and paper, is a challenge.
Washington must reduce greenhouse gas (GHG) emissions from industrial facilities to meet its overall
emissions limits. In doing so, we must balance support for retaining and reducing emissions from existing
industries that provide critical materials, developing industries whose products contribute to a clean energy
economy (such as batteries), and achieving a statutory of doubling our manufacturing base. As we develop
policies and programs to decarbonize our economy, we must design strategies that retain our industrial and
manufacturing businesses, avoiding unintended consequences of moving GHG emissions and jobs to other
states or countries. This alignment of industrial activities and GHG reductions is achievable and a critical
priority for the state.
Percent of total emissions by sector, 2021
Source: GHG Reporting Program, data.wa.gov
Most emissions from the pulp and paper, wood products, and livestock subsectors are biogenic. The metals subsector
reflects the reductions of the Alcoa Ferndale aluminum smelter. The government subsector consists almost entirely of
steam plants operated by the federal government and state institutions of higher education. Subsectors transportation
fuel supplier, power plants and waste are excluded.
When considering 2021 data (the most recent available), industrial emissions remain at similar levels to 2018
SES data. However, numerous significant policy changes have occurred since the 2021 SES that provide
significant reduction opportunities in the years to come. Recommendations regarding the establishment of a
technology-neutral regulatory framework are worth highlighting as significant progress in the past two years.
The Washington State Legislature passed several relevant bills, including the Clean Fuel Standard (CFS)
(Chapter 317, Laws of 2021), and the Climate Commitment Act (CCA) (Chapter 316, Laws of 2021). Critically,
the Healthy Environment for All (HEAL) Act (Chapter 314, Laws of 2021) also passed, which will ensure that
2023 BIENNIAL ENERGY REPORT 60
environmental justice is centered as state agencies implement environmental laws and programs, contributing
to more equitable outcomes as we reach our emissions reduction goals.
Additionally, the state passed significant bills related to and incentivizing clean industry and manufacturing
(Chapter 185, Laws of 2022), and accelerating the production and use of green electrolytic hydrogen and
renewable fuels (Chapter 292, Laws of 2022). The Building Economic Strength through Manufacturing (BEST)
Act (Chapter 64, Laws of 2021) establishes a goal of doubling the state's manufacturing base, which will be
pursued alongside implementation of these other bills. Concurrent with recent state laws, new federal bills,
including the Infrastructure Investment and Jobs Act (IIJA), the Inflation Reduction Act of 2022 (IRA), and the
CHIPS and Science Act (CHIPS) contain components and funding that may contribute to advancing SES
recommendations supporting industrial decarbonization and deployment of renewable fuels.
Other recommendations require further focus and action in the coming years. Washington needs to develop an
industrial policy that reflects our climate and environmental justice values. This policy should be guided by
analysis of emissions, including the pollution emitted elsewhere during production of materials used in this
state, and a focus on specific point-source emissions in Washington. It will require thoughtful work to align
important goals to double manufacturing in Washington – as directed in the BEST Act – with the SES,
potentially as part of a comprehensive industrial planning effort.
Complementary policies and systems need to be in place at the state level to support these goals. Policies that
track and address the embodied carbon in materials are one of the critical tools that can help us learn more
about the GHGs required to produce the goods we use today, and can incentivize the procurement of goods
with a lower carbon footprint. Numerous states, including California and Oregon, have enacted Buy Clean laws.
Buy Clean policies are also gaining traction at the federal level, with the Biden administration’s announcement
in September 2022 regarding new Buy Clean actions in federal procurement and federally-funded projects.
Related Commerce-request Buy Clean, Buy Fair (BCBF) legislation is under consideration in the Washington
State Legislature, and passage of a bill like this will be a critical part of the work. Significantly, Washington’s
proposed policy's “buy fair” components would add important considerations regarding materials
manufacturing standards, including labor standards data.
The ability for industry and manufacturing to adapt as part of a clean energy transition is critical in getting to
economy-wide, net-zero emissions. Numerous companies have already invested in cleaner and more efficient
operations, which should be celebrated as foundational first steps. New federal funding opportunities are
expected to provide significant resources to help advance these goals. Accessing and utilizing the funds will
require leadership from Washington's Legislature, agencies, private industry, labor unions, environmental
justice organizations, and others. Fossil fuel-dependent industries and communities, such as those connected
to Washington’s refineries and remaining coal-fired power plant, will face significant adjustments as a result of
pollution reduction policies. Robust conversations and solutions related to equity and human impacts are
essential.
All these issues require investments of time, planning, and community engagement. To realize our goals, the
state will need to conduct a comprehensive and collaborative planning effort to advance a strategic industrial
policy.
2023 BIENNIAL ENERGY REPORT 61
A. Build a dataset and assess strategies to inform our industrial
decarbonization strategy
To determine the best ways to reduce industrial emissions, we need to understand our current baseline. The
SES determined that there are data gaps that are critical to fill if we are to engage strategically and effectively
in this area.
Important initial steps have occurred since the SES was published. The Greenhouse Gas Reporting Program
(GHGRP) has collected mandatory emissions reports for industrial facilities with more than 10,000 tons of CO2
equivalent (co2e) emissions per year; with the passage of the CCA, the GHGRP will be used to track
compliance of those industries whose emissions are covered by the new program. A number of supplemental
outputs were created in support of the SES that provide key reference points, including the Washington
Industrial Emissions Analysis, Washington Industrial Emissions Analysis Green Cement Case Study, and
development of Washington Industrial Emissions Characterization Tables (Excel), which includes an overview
of emissions data needed from the top nine emitting industries in Washington. Other valuable tools include the
Northwest Clean Energy Atlas developed by the Clean Energy Transition Institute, which draws on the same
GHGRP data, along with data from the Environmental Protection Agency (EPA) and the U.S. Energy Information
Administration (EIA). The Atlas provides visualizations and the ability to compare Washington data with data
from Oregon, Idaho, and Montana.
Additionally, new tools are being developed to capture and communicate embodied carbon data; this is
discussed in the Buy Clean, Buy Fair and consumption-based emissions section.
Progress assessment: Build a dataset and assess strategies to inform our
industrial decarbonization strategy
2021 SES recommendation 2023 update
Progress is underway, though funding is required to
The Department of Ecology should increase the
implement. This work is part of an Ecology budget
subsector breakdown in its industrial sector GHG
request to fund more data analytics and sector expertise
inventory. Both combustion and process emissions need
allowing connections to be made between climate
to be broken down with the same taxonomy, so that data
program reporting and the GHG inventory, as well as to
can be parsed meaningfully for policymaking.
add emissions forecasting and modeling capacity.
The Department of Commerce should develop and
This is still a gap. It will be possible to implement once
publish detailed industrial sector energy data using
Ecology is able to publish sub-sector breakdowns as
federal Energy Information Administration forms data, or
described above.
any new state reporting requirements.
The Washington Geological Survey (WGS) at the
Department of Natural Resources is engaged in applied
research and data analysis to create feasibility maps of
Continue support for research in Washington’s potential subsurface basalt and other CO2 storage
geological storage potential for CO2. reservoirs. WGS participates in the Carbon Utilization
and Storage Partnership and coordinates with industries,
other agencies, university faculty, and academic
institutes.
2023 BIENNIAL ENERGY REPORT 62
Areas for action
Critical next steps include the subsector breakdown and taxonomy data described above. Funding will be
needed for Ecology to conduct this work, which will enable other planning and future policy work such as
comprehensive industrial policy planning efforts.
Analysis is also needed to determine what types of data and metrics are most important to achieve specific
intended aims. For example, work is needed to determine when facility-level emissions (such as emissions
from a particular steel mill) data are needed, versus the emissions data associated with a particular product
(such as steel). Ecology staff are in the early stages of developing a consumption-based inventory, which
should help clarify these points.
Developing a centralized database with embodied carbon data and related labor data, which would be
compiled as part of the BCBF policy platform, is also extremely important; further description of this tool is in
the Buy Clean, Buy Fair and consumption-based emissions sub-section. Additionally, the state should consider
whether other chemicals of concern might be tracked alongside embodied carbon, which could provide other
important pathways to reducing environmental health disparities connected to industrial operations. One effort
that could inform this expansion includes the Chemical Footprint Project.
Additionally, industrial decarbonization will likely require carbon capture and storage activities as part of
reaching statewide net-zero limits by 2050, and research and planning now is valuable. The Washington
Geological Survey is currently assessing potential geological storage sites, including basalt deposits. However,
significant work remains to identify what sequestration opportunities are recommended in Washington.
Analysis of pipeline safety for transportation of captured carbon, as well as environmental justice
considerations, are among the topics where research and community engagement are needed.
B. Establish a technology-neutral regulatory framework
An important condition for clean industrial operations and production and use of renewable fuels is a
technology-neutral regulatory framework. Significant policy advances have occurred in this area since
publishing the 2021 SES. These changes support industrial decarbonization in several key ways. Notably, a
Clean Fuel Standard (CFS) passed during the 2021 legislative session (Chapter 317, Laws of 2021). This
significant policy, which was recommended in the SES, requires fuel suppliers to gradually reduce the carbon
intensity of transportation fuels to 20% below 2017 levels by 2038. In addition to reductions in transportation
fuel carbon intensity (discussed in the Transportation chapter), the policy provides strong incentives to reduce
the GHG emissions in producing or refining fuels used for a variety of purposes, including in the industrial
sector.
Other important bills include the Climate Commitment Act (CCA) (Chapter 316, Laws of 2021). The CCA caps
and reduces GHG emissions from Washington’s largest emitting sources and industries, allowing businesses
to find the most efficient path to lower emissions. This program works alongside other critical climate policies
to help Washington achieve its commitment to reducing GHG emissions by 95% by 2050. Additionally, the
HEAL Act addresses environmental health disparities and promotes environmental justice by requiring several
state agencies to incorporate environmental justice in the development and implementation of environmental
laws, policies, and programs. The HEAL Act will work in coordination with policies like the CCA to make sure
that the communities that bear the greatest burdens from air pollution today see cleaner air as the state cuts
GHGs.
2023 BIENNIAL ENERGY REPORT 63
Progress assessment: Establish a technology-neutral regulatory framework
2021 SES recommendation 2023 update
Enact and implement a low-carbon fuel standard to This was achieved through the passage of Chapter 317,
establish a market and funding mechanism for clean Laws of 2021. The new program went into effect in
fuels production. January 2023.
Washington should continue to explore regulatory
mechanisms to measure, mitigate and reduce GHG
This is supported by the passage of Chapter 316, Laws
emissions from the operation and siting of significant in-
of 2021, the CCA.
state stationary sources, petroleum product producers,
importers and distributors of natural gas.
This is in progress. Ecology will facilitate an EITE
Increase incentives and support for industrial efficiency,
advisory group to inform future GHG reduction pathways
emission control and clean technology upgrades,
as part of CCA implementation. This work can be done
including consideration of an industrial transformation
in coordination with consideration of incentives, equity
bank, incorporating strong labor and equity standards to
standards, and other tools that support EITEs while they
fund the retooling and upgrading of Washington’s
reduce GHGs. Commerce, Ecology and others can work
emissions-intensive, trade-exposed (EITE) industries and
with EITEs to identify and secure relevant IIJA, IRA, and
low-carbon fuel pilot projects.
CHIPS funding that will support these efforts.
Crosscutting area: Environmental justice
Improving health benefits for surrounding communities
Regulations for industrial decarbonization must reduce negative environmental health impacts on
surrounding communities, especially for those facilities located within overburdened communities. The
CCA seeks to support both GHG reductions and improve local air quality for covered facilities. Significant
equity-focused provisions were included in the CCA, such as a requirement that covered facilities
including energy-intensive, trade-exposed industries that receive free allowances in the early years of the
program reduce criteria air pollutants (like particulate matter and ozone), especially in overburdened
communities. However, concerns remain about whether and how quickly local pollution reduction and
health benefits will occur. Community input and recommendations from the Environmental Justice
Council will provide critical guidance.
Key areas for action
Rulemaking processes related to these new regulations were completed in late 2022, and the final rules
provide key details about how these new programs will affect Washington's energy landscape and
communities. Ecology’s CFS rules set carbon intensity (CI) standards for transportation fuels, compliance
obligations for fuels that exceed the CI standard, and establishing methods to assign credits to fuels that have
a lower CI. Additionally, Ecology established an Agriculture and Forestry Carbon Capture and Sequestration
Advisory Panel, which will provide recommendations about how to best provide incentives and allocate credits
for the sequestration of GHGs through activities on agricultural and forest lands.
2023 BIENNIAL ENERGY REPORT 64
Rulemaking for the CCA was also completed in late 2022, including rules related to how the CCA auctions and
credit trading platform can be used. Additional rulemaking is forthcoming which will address how criteria air
pollutants will be reduced alongside GHGs. Input from overburdened communities and the Environmental
Justice Council will provide essential guidance.
A key area for action will be finalizing rules and a reduction pathway for EITEs, which are provided
allowances at no cost until 2034, with gradual reductions in no-cost allowances provided. Clarity for EITEs
must be provided by or before 2027. Further details regarding how allowances will be allocated and the
emissions reduction pathway for EITEs will be finalized in coming rulemaking processes, with input from an
EITE advisory group expected to begin in 2023. The state must set a clear, timely process to finalize the future
EITE emissions reduction pathway. Another important area for action is setting a clear, timely process for
advancing policies and investments--including opportunities to access federal tax credits--that help EITEs
prosper and be competitive globally while reducing emissions and air pollutants. Commerce and partners will
track these processes and many stakeholders will likely provide feedback to ensure strong, effective, and
equitable final rules, policies, and investments.
Another area for action is identifying and advancing additional policies and activities to help address
competitive issues as these programs are implemented. It is important to avoid negative competitive impacts
on EITE facilities that might push them out of the state (known as leakage) because EITEs represent a
significant source of emissions, jobs, and economic impacts. If they simply relocate to another region of the
country, it does not reduce GHGs globally. Many recommendations within this chapter including strategic
deployment of green electrolytic hydrogen and renewable fuels, and BCBF policies that increase the demand
for low-carbon materials will be important components.
C. Develop and implement a coordinated clean energy industrial
policy
There are significant differences amongst industries and amongst individual facilities within an industry; there
is no one-size-fits-all approach to industrial decarbonization. In addition, the various policies in place or under
development combine to have different impacts on industrial operations. As such, the SES identified a
coordinated industrial policy as a critical body of work for the state. Federal legislation establishing new
energy programs, grants, and incentives is helping advance this approach at a broader scale. The ways that
climate, clean energy, and related workforce and Justice40 provisions are being established federally is a form
of industrial policy that creates strong incentives and sends market signals toward high-road manufacturing,
advanced industrial facilities, advanced energy and clean energy investment credits, and more. The inclusion
of Justice40, labor standards incentives, use of domestically produced materials, and other provisions will
increase the human benefits of this federal industrial guidance.
It will be challenging to create an industrial policy in Washington that supports growth of existing industries
that have made decarbonization investments and doubling manufacturing jobs, while achieving the state’s
GHG limits and clean energy standards. However, with commitment, participation across state agencies, and
guided by the perspectives of industry, unions, community organizations and others, it is possible. While this
work should begin now, a multi-year effort is likely required.
2023 BIENNIAL ENERGY REPORT 65
At this stage, it is important to create a high-level framework for industrial policy that Commerce
recommends be used to guide the work:
Align and affirm: Develop an overall vision that affirms support for industries that should be retained,
grown, or established as Washington reduces economy-wide emissions. This must align with the SES,
statewide GHG limits, the HEAL Act, and related policies.
Commit to clean materials: Ensure that GHG emissions are tracked and reduced both for
commodities/core materials (such as metals, cement, chemicals and energy) and final products (complex
manufactured goods that include a variety of materials, such as appliances, EV charging infrastructure, and
much more). It is important to recognize the companies that maintain clean material commitments in the
state’s regulatory framework.
Preserve and transform: Preserve existing manufacturing and industrial capacity that — through
electrification, energy efficiency, fuel switching, consumption-based emissions policies and other
mechanisms — can continue to operate in this state into the future in ways that align with and contribute to
the SES and state net-zero requirements. This includes avoiding the leakage of these industries, associated
emissions, and jobs to other jurisdictions.
Site and expand: Support establishing new or expanded clean manufacturing of materials and products
that contribute to a clean energy economy. Examples include EV charging infrastructure, hydrogen
electrolyzers, wind turbine blades, and materials used in the production of end products, such as metals
and cement. Working strategically to identify growth opportunities can create new jobs and contribute to
achieving the objectives of the state BEST Act and support the expansion of eligible investment projects
defined in Chapter 185, Laws of 2022, which created tax deferrals for clean technology manufacturing,
clean alternative fuels production, and renewable energy storage.
While few of the specific SES recommended actions on this topic were implemented by the time of this update,
the groundwork is being laid in several ways. Important examples of partnership development that will support
industrial decarbonization planning include:
Washington State Clean Materials Manufacturing Summit: In June 2022, this summit brought together
industry, labor, state, and other partners to address issues related to clean materials manufacturing.
Important partnerships are being developed relating to green electrolytic and renewable hydrogen, which
can be a carbon-free fuel source for industry, transportation and other uses. These include the Consortium
for Hydrogen and Renewably-Generated E-fuels (CHARGE) network, which is one of the industry cluster
organizations provided funding by the Department of Commerce. Additionally, the Pacific Northwest
Hydrogen Association was created in 2022 to bring multiple partners together to develop a competitive
proposal for the federal Regional Clean Hydrogen Hubs (H2Hubs) program, described below.
Progress assessment: Develop and implement a coordinated clean energy
industrial policy
2021 SES recommendation 2023 update
No formal framework has been agreed to yet. The
Develop a coordinated clean energy industrial policy
framework discussed above should be used as a starting
framework that supports the ability of industry to help
point. Alignment between industry energy needs and
decarbonize the buildings, transportation and electricity
those of buildings, transportation, and other sectors
sectors, and catalyzes regional decarbonization.
should be developed.
2023 BIENNIAL ENERGY REPORT 66
2021 SES recommendation 2023 update
The Legislature should establish responsibility for clean This is a gap. At present, the departments of Commerce
energy industrial policy within state government, with and Ecology, along with the Governor’s Office, have been
robust data collection and regular planning for the holding regular meetings to advance planning in this
industrial sector. space.
Key areas for action
Gather data needed to understand our baselines and clarify targets and pathways to decarbonization. These
are described in other sections of this report, including Buy Clean Buy Fair and consumption-based emissions.
Intentionally leading a holistic conversation about industrial decarbonization is a critical next step. This is
expected to begin with the EITE work group that Ecology will convene in 2023. Consider opportunities for how
to combine this EITE advisory process, which is specific to CCA, with other industrial policy planning, including
the implementation of the BEST Act and the Manufacturing Council, which began work in 2022.
Planning efforts also must align with the expected electricity and fuel needs of other sectors of the economy,
so that there are sufficient resources available to support beneficial electrification of industrial processes,
electrolysis to produce green electrolytic and renewable hydrogen for industrial use, and other needs. This is
true for existing industrial operations and when considering new or expanded production where new electricity
demands may arise, such as the proposed re-opening of the Alcoa facility. Comprehensive power planning that
includes planning for potential new industrial users of electricity requires more work. In addition, identifying
sufficient locations for new renewable projects remains a challenge, although work to improve these
processes is ongoing, such as through the Low-Carbon Energy Siting Improvement Study process led by the
Departments of Ecology and Commerce, and legislation under consideration in the 2023 legislative session.
Key next steps also include responding to the opportunities available through federal legislation, including
IIJA, IRA, and CHIPS Act. For example, IRA provisions support electric vehicle deployment with tax credits
increasing for vehicles which use higher levels of battery components manufactured or assembled in North
America. Additionally, certain clean energy production credits are available specifically if tied to facilities in
“energy communities” where significant portions of the population work in fossil fuel-related sectors or where
closed coal plants and mines are located. There are significant resources available, but the ability to apply for
and implement any funding through these programs will be time consuming. The state should take a
coordinated approach to working with EITEs and other clean manufacturers to develop comprehensive,
competitive proposals that help advance the SES recommendations. Commerce has allocated staff to help
achieve these aims.
Regulations, incentives, research, and investments should be addressed in a strategic way that support an
aligned vision for industrial decarbonization as part of achieving economy-wide net-zero limits.
2023 BIENNIAL ENERGY REPORT 67
Powering our manufacturing supply chain
Many stakeholders support the proposed reopening of the shuttered Alcoa aluminum manufacturing
facility for the re-establishment of family-wage jobs and the production of lower-carbon aluminum
through investments that reduce process emissions. Washington is viewed as an attractive state for
clean materials manufacturing due to factors including a clean and affordable grid and a skilled
workforce. The COVID-19 pandemic and supply chain challenges reinforced the importance of
considering where critical materials are produced.
As of this publication, the company has been unable to negotiate a low-cost power agreement (known
as a Power Purchase Agreement, or PPA) with the Bonneville Power Administration. Favorable PPAs
were more common in past decades, when there was industrial policy supporting manufacturing in the
United States. At present, absent a state or federal industrial policy providing similar signals and in the
context of significant increases in demand for clean power, such agreements remain more elusive,
and the end of this negotiation is unknown. Going forward, it will be important for Washington leaders
to think critically about how much new renewable and low-carbon energy is sited and produced in
Washington, how much is imported via transmission lines, and whether prioritization of access for
certain end uses might be advisable.
D. Support renewable and green electrolytic hydrogen and other
innovative clean energy opportunities
Industrial emissions are considered among the most difficult to mitigate for a variety of reasons, including
energy-intensive processes and high volumes of production, such as cement and aluminum, that are inputs
into building projects and other infrastructure. Research, innovation, and deployment of new tools and
methods is critical. In particular, opportunities related to green electrolytic hydrogen and renewable fuels is
emerging as a key opportunity that could support industrial decarbonization.
The 2021 SES called out a number of areas where green electrolytic and renewable hydrogen can play a key
role in helping to reach net-zero emissions. The three main opportunities identified include:
Flexible load for the power system, including storage for renewable power
Replacement for transportation fuels: marine, aviation, and heavy-duty trucking
Industrial processes, including replacing fossil-derived hydrogen, and replacing fossil fuels for high-
temperature processes
Several significant bills passed the Legislature in recent years that support these aims. These include the CFS
in relation to transportation fuels. Additionally, bills related to green electrolytic hydrogen (Chapter 292, Laws
of 2022), clean energy and clean technology manufacturing (Chapter 185, Laws of 2022), and clean energy
siting (Chapter 183, Laws of 2022) passed in 2022. Chapter 292, Laws of 2022 addressed green electrolytic
hydrogen directly, adding authorities and tax incentives to those that are available for renewable hydrogen,
which has the effect of expanding the types of eligible hydrogen projects likely to advance in the state to
include all electrolytic hydrogen production using electricity compliant with CETA.
Chapter 292, Laws of 2022 also requires Commerce to:
2023 BIENNIAL ENERGY REPORT 68
Establish a new Office of Renewable Fuels
Issue a report and recommendations related to green electrolytic hydrogen and renewable fuel deployment
in Washington by December 2023
Coordinate the development of a competitive and equitable proposal for the federal Regional Clean
Hydrogen Hubs (H2Hubs) program funding opportunity
The bill also requires gas utilities interested in blending hydrogen in natural gas pipelines to submit notice to
the UTC for consideration of these plans and proposed new tariffs. The UTC will evaluate existing integrated
resource plans, safety data, and how a blending proposal aligns with the Commerce report and
recommendations on hydrogen deployment described above. This is an important stipulation to ensure that
hydrogen use is directed to the hardest to decarbonize sectors of the economy.
Through the CEF, Commerce is providing funding to several hydrogen projects. Through CEF 5, projects
include a grant to Twin Transit to fund a renewable hydrogen fueling station in Chehalis. Previously, CEF 4
funded Applied Ocean Energy for an engineering development project to assess the potential for an on-barge
hydrogen project using tidal energy.
Commerce published updated modeling related to hydrogen production and end uses in July 2022, as an
addition to the analyses contributing to the 2021 SES. The updates provide some additional information about
hydrogen demand for use in the production of synthetic fuels, among other end uses. The results show green
electrolytic and renewable hydrogen deployment growing significantly by 2050 in the 2021 State Energy
Strategy Electrification Scenario, with multiple end uses including industrial heat, heavy-duty trucking,
international shipping and more.
Crosscutting area: Energy resilience
Hydrogen's role in energy resilience
Energy resilience, including the ability to store energy to be used during a power outage or natural disaster,
is a critical topic in the face of challenges such as extreme weather. It is especially important when
considering communities at the end of the line for regular energy transmission, or for those who depend on
critical facilities being available.
Hydrogen is one of the potential solutions that should be studied to understand its role in energy resilience.
The Pacific Northwest National Lab (PNNL) developed an Energy Storage Cost and Performance database
that can help identify when certain storage opportunities are appropriate, including evaluation of total
installed cost per kilowatt hour. Commerce’s CEF has invested in hydrogen backup power projects, such as
a demonstration project for Klickitat Valley Health. Other opportunities that should be explored include the
potential for hydrogen to replace diesel generators to benefit remote and rural communities and as backup
power for data centers, hospitals, and other critical service providers.
2023 BIENNIAL ENERGY REPORT 69
Hydrogen consumption and electricity demands - electrification scenario
TBTU
The hydrogen graphic above shows hydrogen consumption and electricity demand in the electrification
scenario as explained in the 2021 State Energy Strategy. It shows the amount of power that would be needed
for electrolysis to produce the corresponding amounts of hydrogen and how this would increase over time. It is
important for hydrogen strategy and project planning to be aware of the demands for clean power, especially in
the context of industrial users expected to increasingly turn to electrification of industrial processes. The data
supplement also models hydrogen use for blending into pipeline gas systems versus all other end-uses, across
different SES modeled scenarios. This data indicates hydrogen is unlikely to be used for significant levels of
pipeline blending, although this varies somewhat across scenarios.
Crosscutting area: Workforce and clean energy jobs
Transition from coal-fired power to green electrolytic hydrogen
Fortescue Future Industries is evaluating a green electrolytic hydrogen production project in Centralia. The
company announced its interest in this project, including the opportunity to hire workers who are currently
employed at the TransAlta coal-fired power plant slated to shut down in 2025. If the project moves
forward, these workers could transition to producing green hydrogen in the same community. If this
proposal occurs and is guided by meaningful community engagement including the current workforce, it
could be a positive transition case study that other clean energy projects could use as a model.
2023 BIENNIAL ENERGY REPORT 70
This section focused on green electrolytic hydrogen as an important emerging topic in the state. Additional
progress related to this SES section has occurred and is detailed in the table below.
Progress assessment: Support renewable and green electrolytic hydrogen
and other innovative clean energy opportunities
2021 SES recommendation 2023 update
The CEF continues to provide critical investments in
projects that support the SES. One of the many ways it
helps achieve the recommendations in this section is
Continue to invest in the CEF.
through the Research, Demonstration and Deployment
(RD&D) program, which helps advance fuels and
technologies critical to long-term decarbonization.
Commerce has invested in numerous cluster programs,
including the Consortium for Hydrogen and Renewably-
Generated E-fuels (CHARGE) network, Pacific Northwest
Cluster around centers of research, development and
Aerospace Cluster, led by Pacific Northwest Aerospace
entrepreneurship. Alliance, and Sustainable Aerospace Technologies and
Energies (SATE) Cluster, led by Aerospace Futures
Alliance (AFA).
2023 BIENNIAL ENERGY REPORT 71
2021 SES recommendation 2023 update
Expand programs to incentivize research and market
development for commercial low-carbon fuels, heat In addition to CEF funding, Commerce provided funding
through an Industrial Symbiosis RFP in May 2022. Grants
pumps, low-embodied carbon materials, direct air capture
will support projects that connect underutilized resources
(DAC), carbon capture, utilization and storage (CCUS),
from one company for use by another company.
electrification technologies, grid modernization, artificial Opportunities include biomass, biochar, waste heat reuse,
intelligence and machine learning, and circular economy and more.
processes.
Commerce continues to fund this important work through
Dairy Digester CEF funding. The next round of funding will
also include funding for rural clean energy projects, with a
Continue to assess biogenic feedstocks as a foundational
set-aside for projects led by tribes. Funding and further
resource. actions will reflect recommendations captured in
Commerce’s Rural Clean Energy Report (2022) to the
Legislature.
State agency leadership: Each year, the Department of Enterprise Services produces the State Biodiesel Use
Report, which reports on use of biodiesel by Washington state agencies. The most recent report found that
during 2021, state agencies, including universities, purchased more than 1.7 million gallons of biodiesel,
representing 9.1% of the fuel purchased to power diesel vehicles, vessels and equipment, and to fire boilers to
heat and power facilities. This report allows state agencies to publicize how they use biodiesel and highlights
any opportunities to advance clean fuel use at the state level.
Key areas for action
Commerce will work to clarify the roles of the new Office of Renewable Fuels, which will include the writing and
publication of the aforementioned report and recommendations regarding hydrogen and renewable fuel
deployment, due to the Legislature by December 2023. The report will include additional analysis based on
recent modeling that describes the most strategic approaches to the production and end uses of hydrogen.
The UTC is also analyzing the potential for use of hydrogen in decarbonizing the natural gas sector; its report is
planned to be published in 2023.
Commerce will continue to participate in the work of the Pacific Northwest Hydrogen Association (PNWH2),
which is currently chaired by Commerce Assistant Director Chris Green. This association is developing a
competitive proposal to DOE for H2Hubs funding as provided under the IIJA. This program is expected to
provide up to $1.25 billion grants to regional hub applicants whose proposals present compelling projects that
align production, storage, transportation and use of clean hydrogen, in alignment with a draft National Clean
Hydrogen Strategy and Roadmap announced in September 2022. DOE has expressed a preference for
proposals that reduce GHG emissions along the entire supply chain, create and sustain good jobs, use low-
carbon and domestic materials, and promote equity and environmental justice. This program will be part of the
federal Justice40 initiative, which is well aligned with the HEAL Act in Washington. Key next steps will be
community engagement efforts related to proposed projects so communities can provide input and articulate
how they can equitably benefit from green hydrogen projects.
E. Buy Clean Buy Fair and consumption-based emissions
It remains critical to address the emissions associated with the manufacture and transport of materials, often
referred to as “embodied carbon,” “embodied emissions,” or “upstream emissions.” Decarbonizing the
industrial sector must extend beyond the direct emissions at particular facilities to account for the whole
2023 BIENNIAL ENERGY REPORT 72
lifecycle of materials. Policy approaches that incentivize low-carbon materials can recognize the efficient and
low-carbon production of many Washington manufacturers. It is also important to consider the quality of jobs
in manufacturing low-carbon materials.
As a Buy Clean Buy Fair policy has been developed and revised in recent years in Washington, efforts to bring
stakeholders together created significant benefits. For example, input from a variety of industry partners
identified support for provisions that address competitiveness and data issues. In addition, input from unions
and workers articulated labor standard considerations that provide an important addition to this approach. All
these efforts were informed by recent efforts coordinated by the State Efficiency and Environmental
Performance Office (SEEP) to conduct pilot projects and develop a prototype database to evaluate the
collection and use of embodied carbon data (environmental product declarations, or EPDs). SEEP completed a
progress report on this work and submitted its final report to the Legislature in November 2022.
While many of the recommendations from this SES section have not yet been implemented, important
groundwork has been laid that will support swift advancement of opportunities to reduce embodied carbon.
Progress assessment: Buy Clean Buy Fair and consumption-based
emissions
2021 SES recommendation 2023 update
This is beginning in Ecology’s solid waste program. This
Conduct an inventory of the embodied carbon of goods work would benefit from additional coordination with
and services purchased by Washingtonians. climate policy teams.
Executive Order 20-01 requires state agencies to
“consider embodied carbon” in new construction projects.
SEEP provided guidance to state agencies and project
State agencies, through the SEEP office, should explore the teams, and will continue to provide technical assistance
potential for EPDs to support environmentally aware on EPDs and the selection of low-carbon materials. SEEP
procurement policies and establish a baseline for also promotes the use of existing tools like the Embodied
standardized accounting and reporting. Carbon in Construction Calculator (EC3) tool. Further data
will be available to inform state procurement if BCBF
passes the state Legislature.
Key areas for action
The Department of Commerce brought forward a BCBF bill as agency request legislation in 2023. The bill
requires reporting from new state agency building construction projects greater than 50,000 square feet.
Project teams would provide EPDs for concrete, wood and steel, and report data related to working conditions
at manufacturers. Washington lags other Western states where Buy Clean policies have already passed,
including California, Oregon, and Colorado. Passing this bill in Washington will provide critical data, increase
familiarity with and use of EPDs, and complement additional efforts to take a consumption-based approach to
using lower-carbon materials and creating markets for such materials. The bill would also establish a
stakeholder working group to review data and provide recommendations on future policy and program
development.
2023 BIENNIAL ENERGY REPORT 73
Washington has an opportunity to lead by adding Buy Fair provisions, ensuring that data can be collected and
analyzed about the workplace standards for manufacturing of materials, as well as the embodied carbon in
these materials.
State agency leadership: The SEEP office has been a key advocate for embodied carbon work, along with the
UW Carbon Leadership Forum and others. The BCBF policy asks state agencies to lead by example, as it is
critical for the state to commit to growing the market for low-carbon materials as a complement to regulations
around GHG reduction. BCBF will support these efforts and will allow the state to lead with inclusion of Buy
Fair provisions that also address manufacturing workplace standards, incorporating a multiple-benefits
approach in state and national conversations regarding embodied carbon.
The Department of Ecology is developing a consumption-based inventory with collaboration across agencies,
which will provide valuable data about the GHGs that have been emitted for the consumption of goods to
occur. This work is beginning in the solid waste program at Ecology and will likely expand.
It is important to identify certain key materials for which a carbon intensity (CI) metric can be assessed, which
allows for comparisons to be made between products regardless of where they are made. The CFS program is
developing CI scores for transportation fuels, which will help advance this work. Currently there is not a
comprehensive assessment of when embodied carbon data assessed at the facility level (such as using an
EPD) is the right approach, and when a CI analysis of materials is more appropriate. Currently there are policy
proposals at the federal level around the carbon intensity of materials, which is seen as a policy approach that
can help support U.S. manufacturing while remaining compliant with World Trade Organization rules.73
F. Create and support inclusive, living wage jobs
The transformation and decarbonization of the industrial sector are an important opportunity to create and
support living wage and union jobs, which form a critical part of our economy's middle class. The jobs and
workforce components include ensuring the state’s environmental policies address the risk of leakage of jobs
and emissions, consider opportunities to grow existing manufacturing with high labor standards when
Washington produces materials with low embodied carbon, and how to approach the siting of new industries
in the state that will form critical parts of a clean energy economy.
The BEST Act (Chapter 64, Laws of 2021) establishes a goal of doubling the state's manufacturing
employment base, the number of small businesses, and the number of women- and minority-owned
manufacturing businesses in the next 10 years. While broader than clean energy-related manufacturing, this
law provides an opportunity to expand Washington’s manufacturing workforce in ways that align with our
greenhouse gas limits and clean energy goals.
73 A synopsis of this concept and legislative proposals is provided by Resources for the Future (2022): RFF Live: Decarbonization Policy
and International Competitiveness.
2023 BIENNIAL ENERGY REPORT 74
Progress assessment: Create and support inclusive, living wage jobs
2021 SES recommendation 2023 update
Several new laws will advance this, including Chapter
183, Laws of 2022, which will support clean energy
Continue to invest in green public infrastructure and project siting, and Chapter 185, Laws of 2022, which
consider expanding labor requirements for public incentivizes clean energy product manufacturing and
projects. expands incentives for high labor standards used in the
construction phase of projects, already available to clean
electricity projects through CETA.
Buy Clean Buy Fair still needs to pass the Legislature to
support related recommendations. The Buy Fair
Adopt “Buy Clean Buy Fair” requirements for public
components will set an important model of connecting
projects.
conversations around embodied carbon to include labor
standards for workers in the manufacturing process.
Identify the industries that are likely to experience
This is still a gap. Adapting the current Green Economy
transition and make a transition plan for workers well in
Jobs Report produced by ESD to include forward-looking
advance of closure. Engage industry leaders, community
analyses regarding anticipated changes may help with
representatives, and labor unions from the outset in
identification of and planning related to expected
mapping the priorities of each group impacted by
transitions.
industrial transition.
Key areas for action
As described in the section on a coordinated industrial policy, it is important to approach environmental
regulations strategically to avoid the risk of leakage and ensure Washington is seen as a good place to expand
and add new industries that are operating in accordance with state emissions limits. It is critical to identify
additional training opportunities, which must be connected to an updated assessment of where job growth and
contraction could occur in the current policy landscape and economy. Identifying ways to attract and retain
younger workers (Generation Z) will likely require innovative approaches tailored to the differences between
generations. It will be critical to seek ways to ensure greater diversity in the industrial sector including women
and Black, Indigenous, and people of color (BIPOC) workers.
Washington has enacted important policies that support good-quality jobs in the construction phase. However,
more remains to be done to address and improve permanent jobs, including in operations and maintenance as
Crosscutting area: Workforce and clean energy jobs
Machinists Institute supports highly skilled, clean energy jobs
Efforts are underway to expand benefits to workers in a clean energy economy in addition to the valuable
policies that support good jobs for building and construction trades. One entity focused on providing new
opportunities for workers is the Machinists Institute, which seeks to provide apprenticeships and
connections to jobs in the manufacturing sector. The Machinists Institute supports the development of a
highly skilled workforce in aerospace manufacturing and automotive machinist industries, including
through registered apprenticeships for machinists, pre-apprenticeships, and efforts to attract and retain a
diverse workforce.
2023 BIENNIAL ENERGY REPORT 75
well as manufacturing. The Buy Fair components of the BCBF policy framework represent one way of
addressing this.
It is important to fully assess the state's current position related to clean energy and clean manufacturing jobs,
where recently passed state policies and federal laws will take the state, and what workforce development
programs and resources are needed. This includes considering what hydrogen workforce needs will arise in
the state. Initial convening activities and analyses will occur with support from the Center of Excellence for
Clean Energy and others. Commerce is also exploring opportunities to enhance support for tribes and tribal-led
organizations to develop training programs and create jobs for tribal members in the clean energy economy.
Finally, it will be important, especially in the context of recent state and federal laws affecting the energy
landscape, to have an updated understanding of projected workforce impacts and needs. An existing report
published by the Employment Security Department (ESD) as articulated in RCW 43.330.310 could benefit from
a refreshed approach, informed by a broad stakeholder group, and including forward-looking projections and
identifying workforce development investments and other resources needed to ensure Washington’s workers
are able to meet these emerging needs.
Initial next steps include a clean energy workforce white paper under development by Washington State
University Energy Extension, which will provide an overview of the current policy landscape and articulate a
proposed longer-term stakeholder process and new green jobs reporting tools that are needed. This work may
be led by the state Workforce Board, which has put forward a decision package for the governor’s
consideration for the 2023 budget process. Input from various stakeholders including Commerce will be
helpful to ensure alignment with the SES and other relevant policies. These efforts must be informed by the
workers, labor unions, and communities most impacted by these changes.
2023 BIENNIAL ENERGY REPORT 76
Appendix A: Combined Progress Assessment
Electricity
2021 SES recommendation 2023 update
The IIJA and IRA include significant federal funding for transmission. The
IIJA provides $65 billion for:
Constructing new transmission lines
Increasing capacity on existing lines
Encourage federal investments and Furthering the research, development and deployment of innovative grid
transmission reforms. enhancing technologies
The IRA appropriates an additional $2.9 billion for transmission
infrastructure. A $2 billion direct loan program for transmission
development will be available through Sept. 30, 2030.
The Executive Office of the Governor,
the UTC and Commerce should pursue
The Transmission Corridors Work Group convened by EFSEC will release a
opportunities for enhanced
report in December 2022 that identifies strategies for enhancing
transmission planning and integration
transmission planning Washington and beyond.
across the western grid and advocate
for joint development where feasible.
Utilities and planning agencies should
evaluate the need for a joint
development of new and upgraded
Exploration of a regional transmission organization is ongoing.
transmission capacity and consider the
viability of a regional transmission
organization.
New electricity generation continues to expand in Washington. In particular,
Washington utilities, resource owners
there has been a proliferation of new large-scale solar projects currently
and developers advance plans to build
under development, based on the project queue before the Energy Facility
clean resources.
Site Evaluation Council (EFSEC).
Funding should be made available to
Commerce and electric utilities to
Funding has not been provided for a statewide clean energy potential
conduct a statewide clean energy
assessment. Some siting studies are in progress.
potential assessment to identify clean
energy development zones.
The DER workgroup with DOE and PNNL has not been created and might
Request support from the U.S. not be necessary, as work already underway fulfills this recommendation.
Department of Energy and Pacific The Advanced Grid Institute, formed by PNNL and WSU, is already doing
Northwest National Laboratory (PNNL) important work in this space and is fostering crucial conversations on DER
to convene a DER workgroup to identify deployment; for example, during the annual Advanced Grid Institute Day. In
and resolve grid architecture barriers to addition, the CEF Grid Modernization program and DOE's Connected
DER deployment. Communities programs are leading the way in demonstrating what is
possible.
2023 BIENNIAL ENERGY REPORT 77
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Utilities should incorporate
Most utilities have yet to conduct and publish hosting capacity analyses.
comprehensive assessments of the
Early examples of publically available hosting capacity analysis should be
value of DERs in the specific context of
commended, but more is needed to increase transparency and the
individual distribution grids by
usefulness of the data produced. As more utilities develop hosting capacity
performing and publishing hosting
analysis maps, these best practices should be utilized.
capacity and critical load studies.
While WAC 480-100-620 requires electric investor-owned utilities regulated
by the UTC to assess “the effect of distributed energy resources on the
utility's load and operations”, the UTC only “strongly encourages utilities to
The Legislature should assess whether
engage in a distributed energy resource planning process.” As a result,
voluntary distributed energy resources
utility distributed energy resource planning efforts, particularly at consumer-
planning is the appropriate policy
owned utilities, have been variable and relatively limited. Given the
approach given the requirements of
anticipated proliferation of DERs under CETA and the limited voluntary work
CETA.
that is occurring on hosting capacity analysis and DER integration, the
Legislature should evaluate whether distributed energy resources planning
should be voluntary.
This cluster has not been created. Through the Clean Energy Fund,
Provide state support for flexible and Commerce is developing and demonstrating technologies and processes
resilient planning and project that can better integrate renewable energy and DERs to achieve grid
development by creating a new cluster optimization. The legislature should continue to invest in the crucial
within Commerce’s Office of Economic innovation and market transformation enabled by CEF. In addition, state,
Development and Competitiveness to local governments, utilities, and private entities should secure Infrastructure
focus on utility grid optimization and Investment and Jobs Act (IIJA) and Inflation Reduction Act (IRA) funding to
DER deployment. support further utility grid optimization and enable the full benefits of DER
deployment to be harnessed.
Target CEF funding to projects that
Commerce has funded several grid modernization projects that
enable flexible load management and
demonstrate flexible load management and increase grid resilience.
increase grid resilience.
Utilities, resource owners, developers
and other stakeholders should continue
Most of the utilities serving Washington customers have participated in the
to engage in developing a consistent
non-binding phase. Some consumer owned utilities have opted not to
and non-discriminatory resource
participate.
adequacy program through the Western
Power Pool.
Commerce and the UTC should review
the progress and outcomes of the Utilities will have the opportunity to sign up for the binding phase of the
WRAP initiative and evaluate the need program following FERC approval of the WRAP tariff74. The UTC and
for additional state action to ensure Commerce will continue to monitor the involvement of Washington utilities
CETA’s resource adequacy in the WRAP initiative.
requirements are fulfilled.
74 Members of the WRAP approved a tariff outlining the program's independent governance structure and punitive charges if an entity
falls short of the program's operational requirements, such as adequate planning reserve margins. The proposal awaits FERC approval.
2023 BIENNIAL ENERGY REPORT 78
2021 SES recommendation 2023 update
The UTC and Commerce, with input
from the Carbon and Electricity Markets
Workgroup, should adopt rules to allow
These rules were published.
for the trade-in electricity from sources
verified to comply with CETA's clean
energy requirements.
Electric utilities should pursue the long-
term development of a fully integrated
Western regional electricity market, Utilities are exploring options to establishing regional markets, starting with
beginning with expansion of organized the expansion of organized markets.
markets to trade day-ahead and then
longer term resources.
Commerce’s 2024 CETA evaluation
Commerce plans to begin the 2024 CETA evaluation in 2023. Per statute,
under RCW 19.405.080 should include
the review will focus on technologies, forecasts and existing transmission,
an assessment of industry progress in
as well as an evaluation of environmental and public safety protection,
developing efficient and resource-
affordability, and system reliability.
specified electricity markets.
Commerce and the UTC should ensure
that CETA’s energy accounting methods
Commerce and the UTC adopted rules on accounting for energy storage
accommodate the charging and
under CETA in 2022.
discharging of storage resources within
the electricity grid.
Transportation
2021 SES recommendation 2023 update
Key actions include:
Adoption of Advanced Clean Cars II (100% ZEV requirement for new car
Set clear and ambitious targets for sales starting 2035);
moving people and goods more Adoption of Advanced Clean Trucks (setting minimum ZEV percentages
efficiently and equitably. for truck sales); and
EO 21-04 to fully electrify state fleets
Set clear and ambitious statewide The 2022 supplemental operating budget establishes a target for the state
targets for electrification and switching that all publicly and privately owned passenger and light duty vehicles that
to low-carbon fuels. are sold, purchased, or registered in Washington of model year 2030 or later
be electric vehicles.
2023 BIENNIAL ENERGY REPORT 79
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The Move Ahead Washington program contains historic investments in
highway construction and maintenance, transit, active transportation
environmental justice, and new local funding options.
The supplemental operating budget creates the Interagency Electric Vehicle
Coordinating Council to create a plan for achieving the 2030 target.
Expand and align transportation funding
with emissions and equity goals. The Legislature created two new grant programs:
$69 million for electric vehicle supply equipment (EVSE) with focus on
community charging (multi-family buildings, office buildings, rural
communities, state and local government buildings).
$25 million for alternative fuel vehicle incentives with prioritization
given to overburdened communities, low-income communities, and
communities of color.
Improve transportation system planning
and coordination, prioritizing VMT The 2022 supplemental operating budget includes funding for guidelines for
reduction. local governments to reduce GHG emission and per capita VMT.
Support measures to optimize freight
VMT.
The Legislature created a climate transit programs account, funded grants
for cleaner public transit, and appropriated funds from the carbon
emissions reduction account for programs including active transportation
Remove barriers to transit, walking and
and transit. Further, Move Ahead Washington provisions provide grants to
cycling.
transit agencies that adopt a fare-free policy for youth 18 years and
younger.
Improve planning and oversight of The Washington EV Council is creating a statewide Transportation
battery electric vehicle (BEV) charging Electrification Strategy (TES) and ensuring that electric vehicle incentives
and fuel cell vehicle (FCV) fueling and infrastructure are accessible and available to all Washingtonians. The
Council is gathering input from a wide range of Washington residents—
infrastructure
drivers and non-drivers, members of communities large and small—who
represent the diversity of backgrounds and perspectives that make up our
evergreen state.
Accelerate the market for BEVs and FCVs Agency activities furthering these goals include WSDOT's successful
shepherding of the federal National Electric Vehicle Infrastructure Formula
Program grant, the upcoming EV mapping and forecasting tool, and the
Department of Ecology's adoption of clean fuel standards.
2023 BIENNIAL ENERGY REPORT 80
Buildings and Natural Gas
2021 SES recommendation 2023 update
Chapter 177, Laws of 2022 (SB 5722) established a new tier of covered
Expand the scope of the building
buildings under the Clean Buildings Act (2019), which includes non-
performance standard to include
residential buildings between 20,000 and 50,000 square feet, and
buildings with less than 50,000 square
multifamily residential buildings over 20,000 square feet. Managers and
feet with a stepped path to low energy
owners at these buildings will be responsible for benchmarking, operations
and zero carbon by 2050.
and maintenance, and developing an energy management plan.
In 2021, Commerce staff conducted about 45 trainings and presentations,
as well as four live Q&A sessions to increase awareness, solicit feedback,
Dissemination of [building performance
and support stakeholders in pursuing compliance with the Standard.75
standard] information should be
Commerce produced educational materials and collaborated with utilities,
operationalized at the state level
nonprofit organizations and the WSU Energy Program to develop training
through training programs.
workshops for consultants and energy professionals. The Commerce SEEP
office conducted additional training for state agency facility managers.
Commerce, working through and with a selected contractor, is developing a
detailed residential sector building decarbonization implementation plan.
Develop a residential sector building
The development of this plan will include extensive stakeholder
decarbonization implementation plan.
involvement, community engagement and public input. This plan will be
published June 30, 2023.
The Legislature should revise the energy
code to require the state Building Code
Council adopt zero-carbon and all-
electric construction and efficiency
The Washington State Building Code Council approved updated commercial
mandates no later than the 2027 code,
and residential energy codes requiring electric space and water heating in
fully achieving incremental
new construction, with some exceptions. These updates fully achieve the
improvements each code cycle from
incremental efficiency improvements required of the 2021 code, as
2021 to 2027.
prescribed in statute. The 2021 Washington State Energy Code for
Commercial Buildings also includes a provision that would require large
Consider additional energy code
commercial buildings be solar-ready.
provisions to expand deployment of
DER technologies, such as on-site
generation and utility-integrated load
control.
Since 2021, OFM has developed revised language around greenhouse gas
emissions and clean buildings, and asks capital projects to consider an
electric alternative when analyzing building end uses. OFM instructed state
Update Office of Financial Management agencies to label budget submittals for the 2023-25 biennium with a "CBPS"
(OFM) requirements for capital budget code to better understand the resources required to comply with clean
requests to include electrification in all buildings standards. These actions provide better information for decision-
applicable projects. makers, allows state agencies and project stakeholders to understand
which capital projects are addressing these three critical areas, and asks
the state to prioritize projects that reduce emissions.
75 Department of Commerce, 2022 Clean Buildings Legislative Report
2023 BIENNIAL ENERGY REPORT 81
2021 SES recommendation 2023 update
The State Energy Office should develop
and implement a high-efficiency In the 2021-23 capital budget, the Legislature appropriated $10 million to
electrification program to incentivize Commerce's CEF for building electrification and high efficiency electric
adoption of heat pump technology in equipment projects grants. The Building Electrification Program provides
existing residential and nonresidential grants to multifamily residential and commercial building owners and
buildings, including marketing, tenants to deploy and demonstrate grid-enabled, high-efficiency, all-electric
workforce development and buildings that reduce greenhouse gas emissions and accelerate the path to
certification, and equitable distribution zero energy. Applications for projects opened in 2022.
of incentives.
The Energy Retrofits for Public Buildings program prioritizes projects in
Prioritize decarbonization of public rural, lower-income, overburdened and tribal communities. In 2022, 91% of
buildings in low-income communities, grant funds were directed to these communities. Projects provide benefits
specifically public schools and to these communities by reducing the costs of providing public services,
hospitals. improving the comfort, health and safety of communities, building local
workforces, and reducing local air pollution.
Expand funding for the state’s
successful Weatherization Plus Health
The Weatherization Plus Health program was funded in the capital budget
program as part of a broader strategy to
for the 2021-23 biennium, but needs continued funding in the 2023-25
reduce energy burden and improve
biennium to meet the low-income household need and to leverage federal
health outcomes for low-income
IIJA funding.
households impacted by the COVID-19
pandemic.
The Legislature should provide universal In 2019, the Legislature enacted the Washington Broadband Act, which
access to high quality broadband to established access, download and upload speed goals for residences,
enable grid integration of appliances businesses, and communities. Under RCW 43.330.536, the entire state must
and equipment, optimizing buildings have access to broadband that operates at 25/3 megabits per second
and managing load. (Mbps) scalable by 2024.
Washington natural gas utilities have taken limited steps to advance energy
efficiency and hydrogen and renewable natural gas (RNG) to reduce GHG
emissions from natural gas:
Puget Sound Energy (PSE) aims to grow the percentage of RNG in
its mix from 0.5% of its annual gas volume to nearly 3.5% of 2024
Natural gas distribution companies sales. The utility already offers a voluntary RNG program for
should increase energy efficiency and customers and is running two hydrogen pilots to test blending
use of hydrogen and renewable natural impacts on the natural gas distribution system, among other things.
gas to achieve near-term reductions in In 2021, Avista Corp. announced goals to reduce natural gas
GHG emissions from natural gas. emissions 30% by 2030 and to be carbon neutral in its natural gas
operations by 2045. Avista also offers a voluntary RNG program
and continues to analyze how it will invest in RNG, hydrogen, and
other renewable biofuels.
Cascade Natural Gas continues to rely solely on energy efficiency programs
with no apparent plans to incorporate renewable natural gas or hydrogen
into its distribution system.
2023 BIENNIAL ENERGY REPORT 82
2021 SES recommendation 2023 update
Initial actions to limit growth of fossil natural gas consumption in
Washington include:
The UTC's decision in 2021 to reverse a line extension policy that
encouraged expansion of the natural gas distribution system.
The State Building Code Council's passage of revised energy codes,
The Legislature and the UTC should which require electric heat pumps for most space and water
ensure that the state’s climate policy heating applications in most new or commercial and residential
and emissions limits are reflected in the buildings beginning in July 2023.
regulation of natural gas companies
and explore legislative and regulatory In the 2021 state operating budget (Chapter 334, Laws of 2021), the
actions to restrict growth of the natural Legislature funded two analyses to support plans for an equitable transition
gas system and the use of fossil natural to clean heat, which would reduce carbon emissions and bring positive
gas where zero-emission options are health benefits to households. The first analysis was of the financial impact
available. of fuel conversion on consumer owned utilities and customers in
Washington. In the second, the UTC must examine feasible and practical
pathways for investor-owned electric and natural gas utilities to contribute
their share to greenhouse gas emissions reductions as described in RCW
70A.45.020, and the impacts of energy decarbonization on residential and
commercial customers and the electrical and natural gas utilities that serve
them.
Industry and Clean Fuels
2021 SES recommendation 2023 update
The Department of Ecology should
increase the subsector breakdown in its Progress is underway, though funding is required to implement. This work
industrial sector GHG inventory. Both is part of an Ecology budget request to fund more data analytics and
combustion and process emissions sector expertise allowing connections to be made between climate
need to be broken down with the same program reporting and the GHG inventory, as well as to add emissions
taxonomy, so that data can be parsed forecasting and modeling capacity.
meaningfully for policymaking.
The Department of Commerce should
develop and publish detailed industrial
sector energy data using federal Energy This is still a gap. It will be possible to implement once Ecology is able to
Information Administration forms data, publish sub-sector breakdowns as described above.
or any new state reporting
requirements.
The Washington Geological Survey (WGS) at the Department of Natural
Resources is engaged in applied research and data analysis to create
Continue support for research in
feasibility maps of potential subsurface basalt and other CO2 storage
Washington’s geological storage
reservoirs. WGS participates in the Carbon Utilization and Storage
potential for CO2.
Partnership and coordinates with industries, other agencies, university
faculty, and academic institutes.
2023 BIENNIAL ENERGY REPORT 83
2021 SES recommendation 2023 update
Enact and implement a low-carbon fuel
standard to establish a market and This was achieved through the passage of Chapter 317, Laws of 2021.
funding mechanism for clean fuels The new program will go into effect in January 2023.
production.
Washington should continue to explore
regulatory mechanisms to measure,
mitigate and reduce GHG emissions
from the operation and siting of This is supported by the passage of Chapter 316, Laws of 2021, the CCA.
significant in-state stationary sources,
petroleum product producers, importers
and distributors of natural gas.
Increase incentives and support for
industrial efficiency, emission control
This is in progress. Ecology will facilitate an EITE advisory group to inform
and clean technology upgrades,
future GHG reduction pathways as part of CCA implementation. This work
including consideration of an industrial
can be done in coordination with consideration of incentives, equity
transformation bank, incorporating
standards, and other tools that support EITEs while they reduce GHGs.
strong labor and equity standards to
Commerce, Ecology and others can work with EITEs to identify and
fund the retooling and upgrading of
secure relevant IIJA, IRA, and CHIPS funding that will support these
Washington’s emissions-intensive,
efforts.
trade-exposed (EITE) and low-carbon
fuel pilot projects.
Develop a coordinated clean energy
industrial policy framework that No formal framework has been agreed to yet. The framework discussed
supports the ability of industry to help previously should be used as a starting point. Alignment between industry
decarbonize the buildings, energy needs and those of buildings, transportation, and other sectors
transportation and electricity sectors, should be developed.
and catalyzes regional decarbonization.
The Legislature should establish
responsibility for clean energy industrial This is a gap. At present, the departments of Commerce and Ecology,
policy within state government, with along with the Governor’s Office, have been holding regular meetings to
robust data collection and regular advance planning in this space.
planning for the industrial sector.
The CEF continues to provide critical investments in projects that support
the SES. One of the many ways it helps achieve the recommendations in
Continue to invest in the CEF. this section is through the Research, Demonstration and Deployment
(RD&D) program, which helps advance fuels and technologies critical to
long-term decarbonization.
Commerce has invested in numerous cluster programs, including the
Consortium for Hydrogen and Renewably-Generated E-fuels (CHARGE)
Cluster around centers of research,
network, Pacific Northwest Aerospace Cluster, led by Pacific Northwest
development and entrepreneurship.
Aerospace Alliance, and Sustainable Aerospace Technologies and
Energies (SATE) Cluster, led by Aerospace Futures Alliance (AFA).
2023 BIENNIAL ENERGY REPORT 84
2021 SES recommendation 2023 update
Expand programs to incentivize
research and market development for
commercial low-carbon fuels, heat
In addition to CEF funding, Commerce provided funding through an
pumps, embodied carbon materials,
Industrial Symbiosis RFP in May 2022. Grants will support projects that
direct air capture (DAC), carbon capture,
connect underutilized resources from one company for use by another
utilization and storage (CCUS),
company. Opportunities include biomass, biochar, waste heat reuse and
electrification technologies, grid
more.
modernization, artificial intelligence and
machine learning, and circular economy
processes.
Conduct an inventory of the embodied
This is beginning in Ecology’s solid waste program. This work would
carbon of goods and services
benefit from additional coordination with climate policy teams.
purchased by Washingtonians.
Executive Order 20-01 requires state agencies to “consider embodied
State agencies, through the SEEP office,
carbon” in new construction projects. SEEP provided guidance to state
should explore the potential for EPDs to
agencies and project teams, and will continue to provide technical
support environmentally aware
assistance on EPDs and the selection of low-carbon materials. SEEP also
procurement policies and establish a
promotes the use of existing tools like the Embodied Carbon in
baseline for standardized accounting
Construction Calendar (EC3) tool. Further data will be possible for state
and reporting.
procurement if BCBF passes the state Legislature.
2023 BIENNIAL ENERGY REPORT 85
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