
Washington Faces Federal Budget Cuts and Energy Efficiency Challenges Amid DOGE Test and State Climate Policies
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Locally, these federal cuts intersect directly with Washington’s own efforts to promote energy efficiency in public buildings. In May, the U.S. Department of Energy imposed a new cap limiting reimbursement for indirect costs on state energy programs to just ten percent of a project’s budget. Washington Attorney General Nick Brown responded by joining a coalition of states filing suit, asserting that this policy threatens wildfire mitigation, energy efficiency, and critical infrastructure initiatives. According to the Tri-Cities Business News, the AG claimed the cap would undermine high-impact community programs and energy grid resilience, making local power sources dirtier and less reliable. The state Department of Commerce pointed out that its own cost estimates are three times the federal cap, setting up a stark clash between state needs and federal cost-containment efforts.
Ironically, as highlighted by Washington Policy Center, Washington legislators have enacted similar caps on administrative spending within the state’s own climate policies. The Climate Commitment Act mandates that administrative costs not exceed five percent of total revenue from its CO2 tax, meaning the state’s own limits are more stringent than those imposed by the DOGE initiative. Other grants, such as those supporting energy retrofits for public buildings, also include administrative cost caps—ranging from four to twelve percent depending on the program.
Despite these challenges, Washington continues its energy efficiency efforts. The Energy Audit Incentive for Public Buildings Program recently awarded over $14 million for audits impacting more than 32 million square feet of public building space. Commerce reports that these audits are essential for compliance with state green building standards and are funded by cap-and-invest revenues from the Climate Commitment Act.
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