Decarbonization Grants Program
The PSE Decarbonization Grants Program leverages funds from Washington State’s Climate Commitment Act to help local organizations replace natural gas equipment with energy-efficient electric alternatives. This program specifically supports organizations that serve vulnerable populations by covering the costs of sustainable energy upgrades to make them more accessible to our community.
There will be two rounds of funding. Round one available grant funds are set for a minimum of $3,000,000.
Please review the information below. If you have questions, email the PSE Decarbonization Team.
Who Can Apply
Grants are available to the following types of organizations within PSE’s natural gas service territory:
- Community Action Agencies and other low income weatherization providers
- Government entities (county and city agencies, Energy Smart Eastside partners, etc.)
- Non-profit housing providers serving transitional and/or low-income housing programs
Project Requirements
Eligible projects must be focused on decarbonization for single- and multi-family residences via:
- Installation of heat pump systems for space heating and cooling;
- Heat pump water heater installations; or
- Related electrification work
Important: All new electric equipment must replace existing PSE natural gas equipment, which must be removed or decommissioned (cut and capped) after installation of replacement equipment/systems.
Learn More
Want to learn more about this new grant opportunity?
There will be an informational webinar on May 29th, 2025 where you can learn more about the program structure, requirements, and get your questions answered.

Apply now
Ready to apply? Download the application and get started now.
Once your application is complete, email it to PSE’s Decarbonization Team.
Important Dates
- May 26, 2025 – Grants application posted
- May 29, 2025 (9:00am PT) – Informational Webinar
- June 13, 2025 – Final day to submit application questions to decarbgrants@pse.com
- June 27, 2025 – Application submission deadline
- July 14, 2025 – Awardees are notified
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Application Evaluation Criteria
The criteria below outlines how PSE will evaluate and prioritize grant applications. We understand that not every project will address all criteria – rather, these guidelines help PSE identify and support initiatives that best match the program objectives.
1. Customer Served (70% of total score)
- Serve low-income customers and residents in PSE Named Communities *
- Benefit renters and rental properties
- Demonstrate clear positive impacts on customer’s energy costs
- Show substantial, direct benefits to communities with the greatest needs
- Include protections for renters, such as rent stability agreements
2. Project Funding (20% of total score)
- Evidence of pursuing or securing additional funding sources
- Clear demonstration of funding gaps that our grant would help address
- Strong commitment to leveraging multiple funding resources
3. Community Benefits (10% of total score)
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Address needs of underserved communities, including:
- Seniors
- Disabled individuals
- Transitional housing residents
- Tribal communities
- Partner with minority, women, and veteran-owned business (MWBE)
- Incorporate workforce development initiatives
- Serve areas with significant health disparities as identified by Washington State
Highest-Scoring projects will typically include:
- Direct benefits to both low-income customers and PSE Named Communities*
- Focus on rental properties with tenant protections
- Secured additional funding sources
- Strong partnerships with underserved communities
- Collaboration with MWBE contractors
- Clear paths for positive community impact
*Named Communities is being used as PSE’s umbrella term that includes Highly Impacted Communities and Vulnerable Populations. Highly Impacted Communities means a community designated by the Washington State Department of Health based on cumulative impact analysis or a community located in census tracts that are fully or partially on tribal land. Vulnerable Populations means communities that experience a disproportionate cumulative risk from environmental burdens due to adverse socioeconomic factors, such as unemployment, access to food and health care, etc., and sensitivity factors such as low birth rate, and higher rates of hospitalization. View PSE’s map of Named Communities here.