A provision in Washington's new energy assistance bill protects small businesses from a potential new utility surcharge.
Most auto service owners in Washington don't realize that a bill signed into law last year contains a protection that directly affects their utility bills—and what they won't have to pay for.
HB1903, which establishes a statewide low-income energy assistance program, includes a specific provision that bars utilities from funding the program through surcharges on customer bills. For auto shops and other small businesses, this means one less potential cost increase to worry about.
Washington's new low-income energy assistance program is designed to help eligible households pay heating and cooling costs. It's a legitimate public need, but the question of how to fund it matters to every business that pays a utility bill.
Section 3(5)(d) of HB1903 explicitly prohibits the program from being funded through any surcharge, fee, or collection imposed on utilities or their customers. In plain terms: utilities cannot pass the cost of this program along to you through your electric or gas bill.
Instead, the law requires that funding come from state appropriations—specifically, revenues from Washington's Climate Commitment Act auctions. This keeps the cost off utility bills and onto the state budget.
Utility surcharges are common ways states and utilities fund public programs. A surcharge might seem small per bill, but they add up. For a business running compressors, lifts, heating, and lighting throughout the day, even a modest percentage increase compounds across the year.
By prohibiting surcharge funding, HB1903 protects auto service owners—and all utility customers—from absorbing this program's costs through their monthly bills. Your utility expenses won't increase to cover low-income energy assistance.
This doesn't mean the program is free; it's funded through state tax revenue. But the funding mechanism matters: it comes from a dedicated source rather than being spread across every utility customer in the state.
The provision becomes effective on June 11, 2026. The surcharge prohibition itself expires on June 30, 2035, meaning the legislature will need to revisit the funding structure before that date if the program continues.
For now, the protection is in place for nearly a decade. If you're planning utility costs or budgeting for the next several years, you can plan without anticipating a new energy assistance surcharge on your bills.
Review your current utility bills to understand your baseline costs. If you see any new surcharges appear after June 2026, verify what they're for—they won't be for this low-income energy program under state law.
For more detailed information specific to how this affects your business operations and utility planning, resources tailored to Washington auto service owners are available.
Source: Section 3(5)(d), Page 4, E2SHB 1903.SL (effective June 11, 2026; expires June 30, 2035)