OFW Funding Mechanisms
11.10.2016
Funding Matrix
Funding Matrix
Carbon Reduction Incentive Fund (CRIF)
Description: Municipalities pay into fund, which provides incentives to
homeowners based on the amount of carbon emissions avoided.
Pros:
1. Allows for easy
buy-in
2. Homeowner
education
3. Measures carbon
Cons:
1. Unless specified,
incentives will go
to wealthier
populations
Barriers:
1. Finding funding
Tax Funded Program
Description: State tax is levied to fund fuel conversion or energy efficiency in
general.
Pros:
Cons:
1. Steady and
reliable
1. Tax could hurt lowincome customers
2. Could fund variety
of tools and
programs
2. Tax on heating oil
would sunset as
use is phased out.
Barriers:
1. High political
opposition
Property Assessed Clean Energy (PACE)
Description: Low interest loans are tied to property, paid back as assessment on
property tax.
Pros:
Cons:
1. Loan tied to
property, not
owner
1. High legal and
administrative
upfront costs
2. Fully covers upfront costs.
2. Higher interest
rates than private
loans
Barriers:
1. WA is not PACE
enabled
2. Political opposition
Property Tax Incentive
Description: Counties establish property tax exemptions or incentives for energy
efficiency work or fuel conversion.
Pros:
1. Reliable/consistent
2. Flexible
Cons:
1. Poor equity
outcomes
2. Does not help with
upfront costs
Barriers:
1. Political opposition
Low Interest Loans
Description: Private loans to homeowners for energy efficiency work or fuel
conversion.
Pros:
1. Covers upfront
costs.
2. Allows payback
over time as
savings accrue.
Cons:
1. Full cost adopted
by homeowner,
even if they won’t
remain for life of
project.
Barriers:
1. Debt burden
2. Credit access for
low-income
homeowners.
Grants
Description: Grants could fund incentives or programmatic elements.
Pros:
1. Flexible legal use
of money
Cons:
1. Questionable
renewal of funding
2. Difficult to obtain
Barriers:
1. Availability
Utility Rebates
Description: Expand existing utility rebates to include fuel conversion projects.
Pros:
1. Existing structure
2. Reduce upfront
costs/debt burden
Cons:
1. Annual caps
Barriers:
1. Legality
Utility Ratepayer Assistance Program
Description: Municipalities pay into fund, which provides incentives to
homeowners based on the amount of carbon emissions avoided.
Pros:
1. Lowers operational
costs
2. Helps project ROI
Cons:
1. Only applies to
very low income
homeowners and
renters.
Barriers:
1. N/A
Legal Considerations
Washington Constitution and RCWs:
1. Ban municipal utilities from using funds to encourage or incentivize fuel
switching. Unclear on privately held utilities.
2. PACE not currently enabled.
Scope of Mechanisms
Funding Mechanisms
State
County
Municipal
Property Assessed
Clean Energy
(PACE) Financing
Utility
Utility Rebates for
Conversion
Carbon Reduction
Incentive Fund
(CRIF)
Tax Funded
Program
Private/Other
Low Interest Loans
Utility Ratepayer
assistance
Programs
Property Tax
Incentive
Grants
Funding Applicability
#
Funding Mechanism
Low Income
Market Rate
Landlord
Carbon Reduction Incentive
1 Fund (CRIF)
2 Tax Funded Program
Property Assessed Clean
3 Energy (PACE) Financing
4 Property Tax Incentive
5 Low Interest Loans
6 Grants
Key
7 Utility Rebates for Conversion
Applicable
Utility Ratepayer assistance
8 Programs
Equity Considerations
Not Applicable