Clean Energy Fund (CEF)

The Clean Energy Fund (CEF) Research, Development, and Demonstration (RDD) program funds projects that engage in strategic research and development of new and emerging clean energy technologies. These technologies provide opportunities for economic development and support climate goals.

Recent awardees from 2023-2025 Clean Energy Fund’s Research, Development and Demonstration program include*:

• Carbon Containment Lab (Prosser): $990,000 to study whether woody biomass can be used to produce biogas and capture carbon.
• CRTC (Port Angeles): $437,000 for innovation in creating cross-laminated timber flat packs for affordable housing uses with a Makah Tribe sawmill conversion and retooling project.
• DWP Energy Solutions LLC (Vancouver): $270,000 for the development of a solar panel that allows for dual use of agricultural land.
• Emrgy, Inc. (Pasco): $325,000 for the development and demonstration of a plug-and-play low-head turbine to make low-head/ low-flow hydropower facilities adaptable for energy production.
• Eastern Washington University (Cheney): $1,913,723 to test a small, modular carbon capture system that uses a new metal-organic framework to reduce carbon emissions.
• FOM Technologies, Inc. (Seattle): $350,000 for the development of a scalable prototype film coating system for energy storage.
• Grays Harbor Carbon Capture (Elma): $250,000 for a study to innovate carbon capture at a natural gas combined cycle plant.
• Homeostasis Systems Corp. (Tacoma): $700,000 for a pilot project to develop carbon materials from atmospheric CO2 for use in battery cell markets.
• Manaflex LLC (Vancouver): $512,720 for the development of a flexible photovoltaic prototype and production line with a focus on applications in overburdened communities.
• MujiElectric LLC (Renton): $1,997,500 to develop and test a high-efficiency solar cell using advanced perovskite materials.
• Oscilla Power Inc. (Seattle): $750,000 to develop and demonstrate an enhanced drivetrain for an ocean wave energy converter.
• Polar Defense LLC (Moses Lake): $660,000 for the creation of a new direct air capture system to provide CO2 for the production of net-zero sustainable aviation fuel.
• Seiksui Aerospace (Renton): $500,000 for project development of novel thermoplastic solutions for battery storage housings in clean energy vehicles.
• Siemens Energy Inc. (Redmond): $1,696,769 to develop a transportable, electrically powered TurboHeater demonstration package and integrate it into a Washington state pulp and paper mill for an industrial demonstration operation.
• Small Planet USA LLC (Tumwater): $498,580 to develop materials that store and release heat as they change between solid and liquid, helping water heater systems in buildings use energy more efficiently.
• StorEdgeAI LLC (Bothell): $579,422 for the demonstration of an advanced lithium-ion battery system with reduced production cost, smaller footprint, and improved fire safety.

*This list is not exhaustive.

The Electrification of Transportation Systems Program (ETS) provided grants to Washington local governments, Tribal Governments, and retail electric utilities for electric vehicle charging infrastructure. This funding is for the continued transformation of the electric transportation market in Washington State.

Additional resources

• Proviso in Section 6003 of bill SSB 6248
• Governor Inslee’s Executive Order 20-01 (PDF)

Through the Clean Energy Fund, Commerce provides grants to non-profit lenders who connect small businesses, non-profits, multi-family building owners, and homeowners with low-cost financing for clean energy projects. Grants provided through this program provide revolving loan funds that help to reduce risk and provide inexpensive capital for underserved markets to deploy clean energy projects.

The revolving nature of the fund allows it to be utilized many times over. By connecting clean energy projects with innovative financing, Washington can accelerate market expansion and unlock opportunities for underserved markets to participate in the green economy while avoiding unmanageable debt. Historically, every $1 invested in this program is leveraged by $6 or more while supporting over 5,000 energy projects across the state.

Previous grantees

• Craft3
• Puget Sound Cooperative Credit Union
• Washington State Housing Finance Commission

Resources

• Exec Order 18-01, State Efficiency and Environmental Performance (PDF)
• Proviso SSB 6090 session law (see section 1013) (PDF)

Since 2013, state investments have encouraged public-private partnerships on a diverse range of projects, leading the way in electrical grid modernization. Clean Energy Fund project data and business case analyses are transforming how utilities and communities view energy systems and resilience, from different battery chemistry to thermal energy storage, microgrids, and solar.

The Grid Modernization Program provided funding for Washington electric utility projects that advance clean, renewable energy technologies and transmission and distribution control systems; support renewable energy source integration, distributed energy resource deployment, and sustainable microgrids; or increase utility customer choice in energy sources, efficiency, equipment, and utility services.

CEF4 Projects

• Avista – $240,000 to design and engineer a solar and energy storage microgrid project in partnership with the Spokane Tribe of Indians. This microgrid project will provide energy resilience during wildfires, energy independence for critical facilities, and energy billing benefits for customers.
• Energy Northwest – $333,575 to carry out a project with public utilities for an automated system that seamlessly controls different electric grid resources, such as solar panels, batteries, and on-demand devices serving multiple locations and customer needs.
• Energy Northwest – $149,983 to investigate, co-create and complete preliminary design for grid-interactive efficient buildings for Aberdeen and Hoquiam school districts and The Evergreen State College. Grid-interactive efficient buildings are also called “smart buildings” because they automatically respond to times of peak demand on the power grid to reduce energy use to keep costs down while maintaining comfort of people inside.
• Kittitas County PUD – $48,500 for analysis and preliminary design for a .5 MW/20MWh battery energy storage system paired with either a 150 kw solar array or a 100 kw in-stream hydropower generator. This project would provide uninterrupted backup power to a remote rural community that is vulnerable to outages.
• Orcas Power and Light Cooperative (OPALCO) – $150,000 for analysis and preliminary design for a solar plus storage microgrid with the capacity to support OPALCO’s electrified medium-duty truck fleet, public and private light duty vehicle charging, electric bicycle charging, Washington State Ferries serving Friday Harbor and other marine craft.
• Orcas Power and Light Cooperative (OPALCO) – $150,000 for analysis and preliminary design for a potential tidal energy project located in the Rosario Strait. Tidal energy could increase resilience and energy independence for island communities, particularly during winter months when solar microgrids have lower production.
• Orcas Power and Light Cooperative (OPALCO) – $165,000 for detailed design and engineering to build a biomass combined heat and power facility with microgrid controls. The facility would be fueled by waste materials such as vegetation collected during maintenance work around power lines or forest health maintenance. The project would reduce winter peak demand charges and increase energy independence for the islands.
• Puget Sound Energy – $150,000 for analysis and preliminary design to add a renewable hydrogen and/or renewable natural gas-powered generator to a planned solar plus storage microgrid at Tenino High School. This addition would help meet the community’s requirements to use the school as an emergency shelter, particularly during winter months.
• Seattle City Light – $150,000 for feasibility analysis and preliminary design to create a fully carbon neutral ecodistrict at the Seattle Center that could serve as a community emergency center during natural disasters. This project will explore technologies including battery storage, expanded on-site solar, waste heat capture, regenerative power systems, and more. The project is in collaboration with Climate Pledge Arena and Seattle Monorail.
• Seattle City Light – $150,000 for analysis and preliminary design for an ecodistrict in the area surrounding the Seattle Central College campus in Seattle’s Capitol Hill neighborhood. This system would leverage shared heating and support a transition from natural gas heating to electrified heating and thermal storage.
• Seattle City Light – $500,000 to conduct detailed design and engineering for a microgrid using second-use batteries from transit vehicles. The system will increase the resilience of electricity supply to an increasingly electrified public transit fleet as the city decreases diesel emissions in a community experiencing high levels of environmental health disparities.
• Seattle City Light – $500,000 for detailed design of a 10-25 MVA shore-side battery energy storage system. The system will serve Washington State Ferries Colman Dock hybrid ferry charging and provide electricity grid support for the waterfront area.
• Snohomish County PUD – $150,000 for analysis and preliminary design of a neighborhood-scale microgrid in South Everett. The microgrid would increase grid reliability and provide emergency backup power for the community, including low-income households experiencing high levels of environmental health disparities, such as impact from peak heat and cold periods. The project is in partnership with the City of Everett.
• Snohomish County PUD – $150,000 for analysis and preliminary design of a renewable energy-based microgrid at the Tulalip Tribal Government Administrative Building. The project’s goal is to maintain government and emergency response facilities in the event of a long-term power outage.
• Snohomish County PUD – $150,000 for analysis and preliminary design of a renewable energy-based microgrid at the Tulalip Tribes Gathering Hall. The project’s goal is to create a shelter for community members in the event of a long-term power outage.
• Snohomish County PUD – $150,000 for analysis and preliminary design to integrate up to 50 MW of long-duration energy storage into an existing, early stage 21.6 MW solar project under development by Tulalip Tribes and its partners within Snohomish PUD’s service territory.
• Tacoma Power – $99,354 for analysis and preliminary design for an innovative, community-centric microgrid design that would support Franklin Pierce School District’s transition to electric school buses. The microgrid would integrate solar, upcycled batteries and idle bus capacity.
• Yakama Power – $500,000 to design, purchase equipment, and install an electricity grid controls system. The project supports grid modernization and integration of solar and other renewable resources and creates workforce training opportunities for members of the Yakama Nation.