Climate and energy: Strategic priorities
Putting climate dollars and people to work across Washington: Building Washington’s clean and healthy future
Washington has enacted nation-leading policies to reduce pollution and help communities grapple with the effects of increasingly severe weather and sea rise. Environmental justice and equity are the center of these policies. Our clean energy economy is putting thousands of people to work and creating new industries on both sides of the state.
Need:
Proposal:
Helping communities and addressing the climate crisis
Washington stands as a national leader in fighting climate change, enacting policies that will reduce the harmful pollution that contributes to dangerous extreme weather and health impacts, while building a clean energy economy. In 2021, Gov. Inslee signed the Climate Commitment Act (CCA) into law. The CCA created a market-based cap-and-invest program to require the state's largest polluters to reduce greenhouse gas pollution. The CCA is being put to work across Washington to benefit families, schools, workers, and more.
Climate action benefits families and communities in Washington, with projects all over the state that are improving Washingtonians’ health and quality of life and creating jobs and economic growth through innovative businesses.
Experts at the Washington State Department of Commerce estimate our power needs will nearly double by 2050. Nearly one million more people live in Washington today than in 2013. More people are switching to electric vehicles and electric heating systems. The rise of AI and other technology advancements is a growing factor in energy demand. Extreme weather strains our grid during cold snaps and heat waves.
We need more energy. We can meet a significant portion of energy needs by using what we already have more efficiently. Building efficiency standards and weatherization help us do this. The rest requires us to build and connect to more clean energy sources.
Inslee is proposing building on previous investments, with plans to invest in five key areas:
- Advance environmental justice and reduce the impacts of climate change on those it hurts the most
- Decarbonize the building sector
- Develop clean energy infrastructure and jobs
- Advance clean transportation and electric vehicles
- Make Washington more resilient to the effects of climate change
Climate and energy budget highlight items
Help Tribes mitigate and adapt to the effects of climate change
Climate change affects each Tribe uniquely, depending on their geography, culture, and economy. Funding assistance to Tribes will help them mitigate and adapt to the effects of climate change. This includes supporting relocation for Tribes located in areas of heightened risk due to anticipated sea-level rise, flooding, or other disturbances caused by climate change.
($50 million Climate Commitment Account)
Protect children’s health and improve school air quality
School buildings struggle to keep up with rising temperatures and wildfire smoke, adversely impacting our children’s health. Grants to school districts will replace deteriorating heating, ventilation, and air conditioning (HVAC) systems, and undertake energy efficiency upgrades, air filtration enhancements, and general air quality improvements.
These investments will make it easier for kids to learn safely and comfortably. The program will prioritize school districts serving Tribes and vulnerable populations in overburdened communities.
($25 million Climate Commitment Account)
Help affected communities participate in budgeting
This budget continues implementation of a community participatory budgeting process where community members determine their own priorities and projects to achieve specific goals. The process and grants through the Department of Commerce will reduce health burdens in overburdened communities through decarbonization and resilience projects, while supporting community members’ participation in the process.
($8.3 million Air Quality and Health Disparities Account)
Continued implementation of HEAL Act
The Healthy Environment for All (HEAL) Act directs selected state agencies to work toward eliminating environmental and health disparities across Washington and fulfill requirements to embed environmental justice into agency decision-making. Agencies will receive $5.4 million for this work, including funding to continue improving the Environmental Health Disparities Map. In addition, $888,000 will support the Environmental Justice Council in its work to inform the state’s environmental justice efforts and $4 million will fund grants to communities to support their participation in engaging with agencies on the HEAL Act.
($7.0 million Climate Commitment Account, $1.2 million other)
Invest in clean buildings
Residential and commercial buildings are the second-largest source of Washington’s greenhouse gas emissions and our fastest growing source of emissions, accounting for 25% of emissions statewide.
Building owners need assistance to make energy-use improvements to their buildings through heating and cooling equipment, building-envelope measures, and other site-level improvements. These improvements also help building owners meet Clean Buildings Act requirements.
Rebates are funded to help low- to moderate-income households and small businesses electrify and access critical cooling equipment, which saves on energy bills. A grant program will help public building owners conduct energy audits and invest in building energy improvements, such as better insulation, window replacements, and HVAC upgrades. In addition, funding is provided to 11 state agencies and institutions to support 32 projects that assist in building decarbonization efforts.
($110.0 million State Building Construction Account, $30 million Climate Commitment Account, $6.1 million other funds)
Facilitate safety and energy efficiency upgrades for low-income households
The Weatherization Plus Health program maximizes state, federal, and local utility funding to improve the health and safety of more than 7,000 low-income and vulnerable households in hard-to-reach markets. This program also helps homeowners, tenants, and multifamily households make sound energy efficiency investments through consumer education.
($20 million State Building Construction Account, $16 million Climate Commitment Account)
Provide grants for more energy efficient multifamily housing
Multifamily building owners and their occupants can save on energy bills with energy use improvements to their buildings. This grant program funds heating and cooling equipment, building-envelope measures, and other site-level improvements.
($25 million Climate Commitment Account)
Develop clean energy and pursue federal funding support
Investments focus on grid modernization, research development and demonstration, and clean energy technology innovation and transformation. This funding increases capacity for clean manufacturing projects and related workforce development. It also assists Washington-based entities to successfully apply for federal funding opportunities.
($125 million State Building Construction Account, $5 million Climate Commitment Account)
Create Clean Energy Development Office at Commerce
Washington must double clean electricity use by 2050 to reduce burning fossil fuels and meet our climate targets. Siting clean energy and transmission is a complicated new challenge that requires new tools and support. The establishment of the Clean Energy Development Office (CEDO) will provide the information, planning, and support needed to accelerate development of clean energy projects and transmission, while protecting the environment, overburdened communities, and Tribal rights, interests, and resources, and bringing benefits to communities that host clean energy projects.
($4.9 million Climate Commitment Account)
Work with Tribes and overburdened communities to identify lower-conflict areas for clean energy and transmission
As Washington accelerates the deployment of clean energy generation, transmission, and storage to reduce pollution, the state must take proactive steps to engage Tribes and overburdened communities in identifying and reducing conflict over where to site these projects. The proposed budget includes funds for engagement of a Tribal collaborative and participating Tribes to identify areas with higher and lower potential for avoiding conflicts when siting renewable energy generation and electrical transmission facilities. It also includes funding to engage with overburdened communities to create a framework and process to support input for the planning and development of transmission corridors.
($2.5 million Climate Commitment Account)
State Transmission Development Authority
The region’s electricity demand is projected to grow 30% by 2035 and double by 2050. A newly proposed Washington Electric Transmission Authority would ensure that power is delivered from where it’s generated to where it needs to be used by financing and constructing transmission infrastructure projects that maximize existing transmission capacity and build new transmission lines.
($3 million Climate Commitment Account)
Providing benefits to communities that host clean energy projects
The Department of Commerce will develop and implement a pilot program that provides state matching funds to local governments in areas hosting clean energy projects, where a clean energy developer has entered into a community benefits agreement with the hosting community.
($3 million Climate Commitment Account)
Study offshore wind impacts
Funding is provided to the Department of Ecology to work with Tribes and academic institutions to develop a science agenda to better understand potential ecological impacts of offshore wind.
Funding is also provided to the Department of Commerce to further our participation in the offshore wind supply chain.
($2.3 million Climate Commitment Account)
Offer electric vehicle adoption incentives
Electric vehicles (EV) lower greenhouse gas emissions, and while more people are driving EVs, adoption rates must significantly increase to meet our statutory emissions requirements. Funding would continue a highly popular and effective incentive program to provide low-income Washingtonians access to electric vehicles.
($62.5 million Climate Commitment Account)
Invest in electric vehicle charging
Funding for the Washington Electric Vehicle Program will make it easier for more people to drive EVs by investing in community-based EV charging infrastructure. This will narrow gaps in charging access and keep pace with growing EV adoption.
Funding for charging infrastructure is also provided to five state agencies to help electrify the state fleet.
($40 million Climate Commitment Account, $13.8 million other funds)
Electrify school buses
This grant program supports the transition of school buses to zero-emission fleets. Projects are prioritized that replace the oldest diesel-fueled vehicles, especially those used in or near vulnerable populations and overburdened communities.
($15.6 million Model Toxics Capital Account)
Electrify Washington State Ferries
Washington State Ferries is converting three Jumbo Mark II vessels from diesel to hybrid electric. These ferries serve the most densely populated urban areas in the central Puget Sound and produce 26% of the fleet’s annual greenhouse gas emissions. Each conversion will reduce emissions by nearly 50,000 metric tons a year with the first vessel scheduled to sail in summer 2025.
($87.1 million Carbon Emissions Reduction Account)
The Department of Transportation (WSDOT) will also construct five new hybrid-electric ferries and is expected to select a vendor by June 2025. Given the long-term need for the ferry system to replace an additional 11 vessels, the governor’s budget includes $1.5 million for ferries to continue design work of the next clean-fueled vessel procurement process.
($595 million in 2025–27 and a total of $1.3 billion for all five vessels. Capital Vessel Replacement Account, Carbon Emissions Reduction Account, Move Ahead Washington Account, Puget Sound Capital Construction Account)
Incentivize adoption of zero-emission large vehicles
Medium- and heavy-duty vehicles, including buses, big trucks, and delivery vans, make up around 10% of the vehicles on Washington’s roads but are responsible for 30% of the state’s on-road greenhouse gas emissions.
Battery-electric and hydrogen fuel cell trucks and buses, collectively called zero-emission vehicles, eliminate toxic tailpipe pollutants compared with their conventional counterparts and reduce carbon emissions.
A point-of-sale voucher incentive program is funded to encourage faster adoption of zero-emission medium- and heavy-duty vehicles. This program also includes funding for the replacement of school buses powered by fossil fuels with zero-emission school buses.
($83 million Carbon Emissions Reduction Account)
Reduce carbon emissions from transit with Green Transportation Capital grants
Green Transportation Capital grants provide funding to transit agencies for cost-effective capital projects that reduce carbon intensity. This can include battery and fuel cell electric vehicles and the infrastructure to support them.
($48.4 million Climate Transit Programs Account, $7.4 million Carbon Emissions Reduction Account)
Provide more carbon-free options for bicyclists and pedestrians
The Department of Transportation’s Bicycle and Pedestrian Program is making it easier for residents to get out of their car and decarbonize by walking and biking. The objective of the program is to improve the transportation system to enhance safety and mobility for people who choose to walk or bike.
($14.2 million Carbon Emissions Reduction Account, $114.9 million Climate Active Transportation Account)
Additional projects and programs that will reduce greenhouse gas emissions are described in the Transportation section of the highlights.
Even as we work to reduce greenhouse gas emissions, communities and ecosystems will face near-term impacts from climate change. Investments are made to mitigate impacts including sea-level rise, droughts, flooding, and increased wildfires.
Fund climate resilience projects
Climate change compounds natural flooding and makes it harder to restore natural habitats. Without aggressive action, thousands of homes are at risk, roadways will close more frequently, communities will experience flood-related damages, and salmon populations will be imperiled. Various capital budget programs help communities prepare for and withstand the effects of climate change, including protections and investments in flood-prone areas, improvements in how water is delivered and applied on agricultural lands statewide, investment in climate smart forestry and carbon sequestration and the restoration of riparian areas.
($37.8 million Natural Climate Solutions Account, $336.5 million State Building Construction Account, $70.9 million other)
Implement climate resiliency strategy
In 2024, the state updated its climate resiliency strategy, which proposes actions to help communities become more resilient to climate crisis impacts like drought, coastal changes, flooding, extreme heat, wildfires, and smoke. are provided to the Department of Ecology will hire staff to support, coordinate, and track state agencies’ implementation of the strategy.
($580,000 Natural Climate Solutions Account)
Build climate resilience across sectors
Climate change impacts Washington’s agriculture sector. Planning will begin to develop a statewide livestock composting infrastructure to protect human health and reduce greenhouse gas emissions.
The Department of Health plays an important role in addressing the human health impacts from climate change. The department will support early warning systems and responses to extreme heat, wildfire smoke, and diseases transmissible from animals to humans.
Increasing habitat connectivity will help wildlife better survive climate changes. Additional funding will allow the Department of Fish and Wildlife (WDFW) to support WSDOT in implementing the Washington Wildlife Habitat Connectivity Action Plan.
Climate change will reduce snowfall, result in earlier snowmelt, and reduce summer streamflow. The Department of Ecology will study the impacts of climate change on water supplies and stream flows. The agency will also enact rules related to reclaimed water and instream flow in the Wenatchee River.
($1.84 million Climate Commitment Account, $2.1 million Natural Climate Solutions Account)
Climate and energy: Summary of investments, 2025-27 biennial
Note: This policy brief highlights select investments proposed by the governor in this budget area. The chart below provides the full list of investments. For more details about the items in the chart, refer to the Budget Recommendation Summaries (RecSums), organized by agency.
| Item | Agency | Amount |
|---|---|---|
| Classroom Indoor Air Quality Grants | OSPI | $25,000,000 |
| Community Participatory Budgeting | Commerce | $8,300,000 |
| Tribal Adaptation Grants | Commerce | $50,000,000 |
| Implement HEAL Act | Multiple | $8,290,000 |
| Air Quality Industrial Inspectors | Ecology | $558,000 |
| Total | $92,148,000 |
| Item | Agency | Amount |
|---|---|---|
| State Agency Building Decarbonization | Multiple | $68,755,000 |
| High Efficiency Electric Appliance Rebates Program | Commerce | $30,000,000 |
| Clean Buildings Performance Grants | Commerce | $25,000,000 |
| Energy Retrofits for Public Buildings Grants | Commerce | $22,500,000 |
| Multifamily Efficiency Grants | Commerce | $25,000,000 |
| Weatherization Plus Health Grants | Commerce | $36,000,000 |
| Clean Building Technical Assistance | Commerce | $3,803,000 |
| Continuation of CCA Dollars | Commerce | $3,946,000 |
| Clean Buildings Training | Commerce | $1,500,000 |
| Total | $216,504,000 |
| Item | Agency | Amount |
|---|---|---|
| Clean Energy Fund | Commerce | $50,000,000 |
| Green Jobs and Infrastructure Fund | Commerce | $5,000,000 |
| Solar and Energy Storage Grants | Commerce | $25,000,000 |
| Clean Energy Community Grants | Commerce | $25,000,000 |
| Clean Energy Development Office | Commerce | $4,944,000 |
| Community and Tribal Engagement on Siting | Commerce | $3,000,000 |
| State Transmission Development Authority | Commerce | $3,045,000 |
| Benefits for Communities Hosting Clean Energy Projects | Commerce | $3,000,000 |
| Offshore Wind Authorities Report | Ecology | $816,000 |
| Offshore Wind Science Panel | Ecology | $731,000 |
| Blue Wind Collaborative | Commerce | $750,000 |
| Photovoltaic Module Stewardship Program | Ecology | $774,000 |
| Energy Facility Site Evaluation Council Improvement | EFSEC | $150,000 |
| Total | $122,210,000 |
| Item | Agency | Amount |
|---|---|---|
| State Agency EV Charging Infrastructure | Many | $13,800,000 |
| Community EV Charging Program | Commerce | $40,000,000 |
| Electrifying School Buses | Ecology | $15,600,000 |
| Electric Vehicle Adoption Incentives | Commerce | $62,500,000 |
| Electrify Three Jumbo Mark II Washington State Ferries | WSDOT | $87,100,000 |
| New Hybrid-Electric Ferries | WSDOT | $595,600,000 |
| Incentivize Adoption of Zero-emission Large Vehicles | WSDOT | $83,000,000 |
| Green Transportation Capital Grants | WSDOT | $55,800,000 |
| Bike and Pedestrian Grants | WSDOT | $129,100,000 |
| Total | $1,082,500,000 |
| Item | Agency | Amount |
|---|---|---|
| Implement Climate Resilience Strategy | Ecology | $580,000 |
| Climate Livestock Waste Composting | WSDA | $1,786,000 |
| Climate Resilience Adaptation | DOH | $382,000 |
| Invest in Lands Stewardship | WDFW | $3,400,000 |
| Reduce Emission, Build Resilience | WDFW | $1,680,000 |
| Respond to Wildlife Disease | WDFW | $2,778,000 |
| Water Resources & Climate Resilience | Ecology | $1,197,000 |
| Accelerating Floodplain Resilience | Ecology | $1,122,000 |
| Protecting Washington’s Shorelines | Ecology | $1,317,000 |
| Floodplains by Design | Ecology | $59,629,000 |
| Family Forest Fish Passage Program | Department of Natural Resources | $19,213,000 |
| Carbon Sequestration Forest | Department of Natural Resources | $15,000,000 |
| Voluntary Riparian Grant Program | Conservation Commission | $20,000,000 |
| Yakima River Basin Water Supply | Ecology | $49,000,000 |
| Chehalis Basin Strategy | Ecology | $70,029,000 |
| Other Resilience Capital Projects | Many | $235,700,000 |
| Total | $482,813,000 |
Grand total: $1,996,175,000
