Community weatherization

AN ACT Relating to authorizing community scaled weatherization 1
projects; amending RCW 70A.35.020 and 70A.35.040; and adding new 2
sections to chapter 70A.35 RCW. 3
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:4
Sec. 1. RCW 70A.35.020 and 2020 c 20 s 1392 are each amended to 5
read as follows: 6
The definitions in this section apply throughout this chapter 7
unless the context clearly requires otherwise. 8
(1) "Community scaled project" means a weatherization project 9
that includes multiple dwelling units that are located in the same 10
neighborhood or area where overlapping factors such as environmental, 11
social, or economic conditions may adversely impact residents, as 12
determined by the department.13
(2) "Department" means the department of commerce.14
(((2))) (3) "Direct outreach" means: 15
(a) The use of door-to-door contact, community events, and other 16
methods of direct interaction with customers to inform them of energy 17
efficiency and weatherization opportunities; and 18
(b) The performance of energy audits. 19
H-2605.2
HOUSE BILL 2338
State of Washington 69th Legislature 2026 Regular Session
By Representatives Callan, Abbarno, Reed, and Doglio
Prefiled 01/08/26. Read first time 01/12/26. Referred to Committee
on Capital Budget.
p. 1 HB 2338
(((3))) (4) "Energy audit" means an analysis of a dwelling unit 1
to determine the need for cost-effective energy conservation measures 2
as determined by the department. 3
(((4))) (5) "Healthy housing improvements" means increasing the 4
health and safety of a home by integrating energy efficiency 5
activities and indoor environmental quality measures, consistent with 6
the weatherization plus health initiative of the federal department 7
of energy and the healthy housing principles adopted by the federal 8
department of housing and urban development. 9
(((5))) (6) "Household" means an individual or group of 10
individuals living in a dwelling unit as defined by the department.11
(((6))) (7) "Low income" means household income as defined by the 12
department, provided that the definition may not exceed ((eighty)) 80 13
percent of median household income, adjusted for household size, for 14
the county in which the dwelling unit to be weatherized is located.15
(((7))) (8) "Nonutility sponsor" means any sponsor other than a 16
public service company, municipality, public utility district, mutual 17
or cooperative, furnishing gas or electricity used to heat low-income 18
residences. 19
(((8))) (9) "Residence" means a dwelling unit as defined by the 20
department. 21
(((9))) (10) "Sponsor" means any entity that submits a proposal 22
under RCW 70A.35.040, including but not limited to any local 23
community action agency, tribal nation, community service agency, or 24
any other participating agency or any public service company, 25
municipality, public utility district, mutual or cooperative, or any 26
combination of such entities that jointly submits a proposal.27
(((10))) (11) "Sponsor match" means the share of the cost of 28
weatherization to be paid by the sponsor. 29
(((11))) (12) "Sustainable residential weatherization" or 30
"weatherization" means activities that use funds administered by the 31
department for one or more of the following: (a) Energy and resource 32
conservation; (b) energy efficiency improvements; (c) repairs, indoor 33
air quality improvements, and health and safety improvements; ((and)) 34
(d) client education ; and (e) community scaled projects . Funds 35
administered by the department for activities authorized under this 36
subsection may only be used for the preservation of a dwelling unit 37
occupied by a low-income household , except for dwelling units that 38
are part of a community scaled project, and must, to the extent 39
feasible, be used to support and advance sustainable technologies.40
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(((12))) (13) "Weatherizing agency" means any approved department 1
grantee, tribal nation, or any public service company, municipality, 2
public utility district, mutual or cooperative, or other entity that 3
bears the responsibility for ensuring the performance of 4
weatherization of residences under this chapter and has been approved 5
by the department. 6
NEW SECTION. Sec. 2. A new section is added to chapter 70A.35 7
RCW to read as follows: 8
(1) A sponsor may submit a proposal to the department for the use 9
of grant and matching funds for a community scaled project. The 10
proposal may include full or partial weatherization, energy 11
efficiency measures, or structural rehabilitation and repairs for 12
multiple dwelling units within the same community.13
(2) A sponsor must identify priority communities to be served by 14
the community scaled project using indicators determined by the 15
department and defined in rule. Indicators may include data 16
reflecting environmental health disparities, housing vulnerability, 17
and pollution exposure, among others. 18
(3) The department must consider publicly available socioeconomic 19
data to prioritize community scaled project proposals that serve 20
areas with low-income households. 21
(4) The department must approve or deny a proposal within 90 days 22
of the closing of the application period in which the proposal was 23
received. 24
Sec. 3. RCW 70A.35.040 and 2015 c 50 s 3 are each amended to 25
read as follows: 26
(1) ((The)) Subject to the availability of amounts appropriated 27
for this specific purpose, the department shall solicit proposals for 28
low-income weatherization programs from potential sponsors. A 29
proposal ((shall)) must state the amount of the sponsor match, the 30
amount requested, the name of the weatherizing agency, and any other 31
information required by the department. 32
(2)(a) A sponsor may use its own moneys, including corporate or 33
ratepayer moneys, or moneys provided by landlords, charitable groups, 34
government programs, the Bonneville power administration, or other 35
sources to pay the sponsor match. 36
(b) Moneys provided by a sponsor pursuant to requirements in this 37
section ((shall)) must be in addition to , and ((shall)) must not 38
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supplant any funding for , low-income weatherization that would 1
otherwise have been provided by the sponsor or any other entity 2
enumerated in (a) of this subsection. 3
(c) No proposal may require any contribution as a condition of 4
weatherization from any household whose residence is weatherized 5
under the proposal. 6
(d) ((Proposals shall)) A proposal must provide that full levels 7
of all cost-effective, structurally feasible, sustainable residential 8
weatherization materials, measures, and practices, as determined by 9
the department, ((shall)) will be installed when a low-income 10
residence is weatherized , unless the proposal is for a community 11
scaled project. 12
(3) ((Sponsors)) A sponsor may propose to utilize grant awards 13
and matching funds to make healthy housing improvements to homes 14
undergoing weatherization. 15
(4)(a) The department may in its discretion accept, accept in 16
part, or reject proposals submitted. 17
(b) The department shall prioritize allocating funds from the 18
low-income weatherization and structural rehabilitation assistance 19
account to projects that maximize energy efficiency, extend the 20
usable life of an affordable home, and improve the health and safety 21
of its residents by: (i) Installing energy efficiency measures; and 22
(ii) providing structural rehabilitation and repairs, so that funding 23
from federal energy efficiency programs such as the weatherization 24
assistance program, the weatherization plus health initiative, the 25
energy efficiency and conservation block grant program, residential 26
energy efficiency components of the state energy program, and the 27
retrofit ramp-up program is distributed expeditiously.28
(c) When allocating funds from the low-income weatherization and 29
structural rehabilitation assistance account, the department shall, 30
to the extent feasible, consider local and state benefits including 31
pledged sponsor match, available energy efficiency, repair, and 32
rehabilitation funds from other sources, the preservation of 33
affordable housing, and balance of participation in proportion to 34
population among low-income households for: (i) Geographic regions in 35
the state; (ii) types of fuel used for heating, except that the 36
department shall encourage the use of energy efficient sustainable 37
technologies; (iii) owner-occupied and rental residences; and (iv) 38
single-family and multifamily dwellings. 39
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(d) The department shall then allocate funds appropriated from 1
the low-income weatherization and structural rehabilitation 2
assistance account for energy efficiency and repair activities among 3
proposals accepted or accepted in part. 4
(e) The department shall develop policies to ensure prudent, 5
cost-effective investments are made in homes and buildings requiring 6
energy efficiency, repair, and rehabilitation improvements that will 7
maximize energy savings, extend the life of a home, and improve the 8
health and safety of its residents. 9
(f) The department shall give priority to the structural 10
rehabilitation and weatherization of dwelling units occupied by low-11
income households with incomes at or below ((one hundred twenty-12
five)) 125 percent of the federally established poverty level , unless 13
those dwelling units are part of a community scaled project.14
(g) The department may allocate funds to a nonutility sponsor 15
without requiring a sponsor match if the department determines that 16
such an allocation is necessary to provide the greatest benefits to 17
low-income residents of the state. 18
(h) The department shall require weatherizing agencies to employ 19
individuals trained from workforce training and apprentice programs 20
established under chapter 536, Laws of 2009 if these workers are 21
available, pay prevailing wages under chapter 39.12 RCW, hire from 22
the community in which the program is located, and create employment 23
opportunities for veterans, members of the national guard, and low-24
income and disadvantaged populations. 25
(5)(a) A sponsor may elect to: (i) Pay a sponsor match as a lump 26
sum at the time of structural rehabilitation or weatherization; or 27
(ii) make yearly payments to the low-income weatherization and 28
structural rehabilitation assistance account over a period not to 29
exceed ((ten)) 10 years. If a sponsor elects to make yearly payments, 30
the value of the payments shall not be less than the value of the 31
lump sum payment that would have been made under (a)(i) of this 32
subsection. 33
(b) The department may permit a sponsor to meet its match 34
requirement in whole or in part through providing labor, materials, 35
or other in-kind expenditures. 36
(6) Service providers receiving funding under this section must 37
report to the department at least quarterly, or in alignment with 38
federal reporting, whichever is the greater frequency, the project 39
costs, and the number of dwelling units repaired, rehabilitated, and 40
p. 5 HB 2338
weatherized, the number of jobs created or maintained, and the number 1
of individuals trained through workforce training and apprentice 2
programs. The director of the department shall review the accuracy of 3
these reports. 4
(((7) The department shall adopt rules to carry out this 5
section.))6
NEW SECTION. Sec. 4. A new section is added to chapter 70A.35 7
RCW to read as follows: 8
The department shall adopt rules to carry out this chapter. Rule 9
making conducted under this chapter may be treated as a capital 10
expenditure by the department. 11
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