Nearly one-fifth of all electricity customers in Washington state will be eligible to receive a $200 energy credit this summer, funded through the state’s landmark climate change legislation.
An estimated 675,000 low- and moderate-income households meet the income eligibility requirements for the benefit. The $150 million program is funded through the Climate Commitment Act’s carbon pricing program, which requires the state’s largest polluters to reduce emissions or buy allowances to cover their emissions. The state’s carbon allowance auctions have raised more than $2 billion since the beginning of 2023.
In November, voters will decide whether to repeal the program entirely through Initiative 2117. Supporters of the program have touted a variety of grants and programs to demonstrate the value of the policy and the funds it provides. Critics of the program portray it as a money-making scheme by the state that has led to higher prices for utilities, fuel and other consumer goods.
Gov. Jay Inslee said in a news release that while the energy credits provide “immediate benefits,” they will also make other Climate Commitment Act programs, such as heat pumps and solar power installations, more accessible to low-income households.
The electricity credits would be one of the most direct, immediate and far-reaching benefits of the Climate Commitment Act, which has planners sounding the alarm about the Pacific Northwest’s energy projections over the next five years as electric vehicles, extreme weather events and data centers drive electricity demand.
The tax credits come at a time of rising consumer prices after two years of record inflation, and as Seattle Electric and Puget Sound Energy propose to raise electric rates by 11% and 17%, respectively, over two years (proposed rates are typically higher than the rates that are ultimately approved).
Utilities will distribute the one-time credits directly to eligible customers’ accounts by September 15. Some customers who are already enrolled in their utility’s or local community agency’s low-income energy assistance programs and receive nutrition or home weatherization assistance will receive the credits automatically.
Other customers must apply to their utility company.
Customers wacleanenergycredits.com See if you qualify. Applicants must provide the name of their utility account, account number, county of residence, number of people in their household, and 2023 total annual income for all members of their household.
About half of the 675,000 households eligible for the credit will receive it automatically, according to the Commerce Department.
The program instructs utility companies to prioritize customers who make 80% or less of the area median income.
With sufficient funding, eligibility could be expanded to 150% of area median income. In Seattle, Everett and Vancouver, qualifying incomes for a four-person household range from approximately $110,950 to $226,050. In the areas with the lowest cost of living, qualifying incomes for a four-person household range from $72,000 to $135,000.
According to the department, utilities participating in the program include about 99.6% of the state’s residential electricity customers.
According to 2023 Business Transaction ReportsAbout 250,000 Washington households are “energy burdened,” spending more than 6 percent of their income on energy costs for electricity, propane, wood, and natural gas. Even after rate reductions from existing assistance programs, these costs average about $844 per household per year, or $234 million statewide.
Will this credit save the Climate Commitment Act?
When asked during a press conference in Seattle on Monday, Inslee said the program was launching now because the application website was ready. The program had been planned for the last legislative session, with lawmakers mentioning it in December.
Still, Inslee used the opportunity to say the electric bill credit is one in a suite of programs in the Climate Commitment Act that are aimed at helping low-income families reduce their energy costs, including free bus rides, funding for ferries and assistance with heat pumps and insulation.
He said approval of Initiative 2117 would only mean less energy aid.
“I cannot overstate how much damage (the sponsors of Bill I-2117) will do to these families,” Gov. Inslee said at a press conference Monday in Seattle.
Troy Abel, a professor of environmental policy at Western Washington University, said local polls show about a fifth of voters are undecided about the initiative, suggesting many people aren’t paying much attention. Such direct-to-consumer credits should at least raise awareness of the Climate Commitment Act.
Citing national polls, Abel said climate change is not a top issue for voters, but inflation and the rising cost of living are.
“This appears to be a political move by the governor and state legislature to address the perception, even if it appears to be a false perception, that residents are paying more for gas because of the Climate Commitment Act,” Abel said.
State officials estimated that gasoline prices rose 25 to 35 cents last year as oil companies passed on costs.
Aseem Prakash, a political scientist at the University of Washington, said he was “very skeptical” that electricity subsidies would make much difference to the plan.
Prakash said local polling on the repeal of the climate change law largely mirrors voter reactions to a proposed carbon tax in 2016. The majority of Americans Prakash said that while many Americans support climate policy, not everyone would agree with taxing themselves to support the climate cause.
More broadly, the Climate Commitment Act has problems, partly due to poor communication from Governor Inslee, Prakash said, but ultimately he wants the law to survive.
“The governor had the opportunity to say consumers are going to feel some costs from the climate change act, but we’re giving that money back and here’s how we’re going to do it,” Prakash said. “But the governor spent most of his money defending higher gas prices, which is a losing battle.”
Jamie Smith, a spokesperson for the governor’s office, said in an email that Gov. Inslee has spent time highlighting the many programs that are helping communities across the state, from heat pumps to solar projects.
“These stories are scattered across the state. Those who are looking will be looking,” Smith wrote.
How to Apply
The Commerce Department said the credit will be automatically applied to your account if you already participate in the Low Income Home Energy Assistance Program or other utility assistance programs that help seniors and people with disabilities. The same applies to customers who are enrolled through a local community agency assistance program, such as home weatherization assistance or nutrition assistance. These customers can also check with their utility assistance program.
Other customers wacleanenergycredits.com Check to see if you qualify.
First, the user must select their utility and enter their account number, address, and zip code. If they followed a link in a text message from their utility, the account number should already be entered.
After this step, you will be asked to verify your account information and then you will be asked to enter your mobile number to receive a verification code via text message. If you don’t have a mobile number, you will be asked to call the number provided on the page.
After entering the six-digit code, you’ll be asked to enter the county your household lives in and how many people in your household. The website will then show you three options and you’ll need to choose the income bracket that best describes your 2023 gross annual income.
In Seattle or Everett, the three options for a four-person household are under $110,950, between $11,950 and $226,050, and over $226,060. These figures represent cutoffs at 80% and 150% of the area median income levels.
You do not need to submit any documents.
Before submitting an application, you must certify that you are the account holder and that all information in the application is “true and complete” to the best of your knowledge.
