Who Can Apply

Grants are available to C&I customers within PSE's natural gas service territory. C&I customers may delegate a contractor or organization to apply on their behalf and can assign grant payments directly to contractors if they choose. C&I customers must meet the following criteria:

• PSE natural gas customers using natural gas for space and/or water heating. Both PSE dual-fuel and gas-only customers are eligible.
• Existing buildings only - this program is not available for new construction.
• Commercial and Industrial customers only - Businesses with less than 10,000 sq. ft. buildings and multi-family customers should first explore PSE's dedicated Small Business and Multi-family decarbonization programs. If those programs are not suitable for their project, they may then apply for the Commercial & Industrial grants.

Note: Multi-family properties with large central heating systems will be evaluated on a case-by-case basis.

Project Requirements

Eligible projects must focus on transitioning from natural gas to electric systems through any combination of the following:

• Complete building electrification
• Space heating system electrification (heat pump installations)
• Water heating system electrification (heat pump water heater installations)
• Related electrification infrastructure 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.

Important Dates

• November 3, 2025 – Grant applications open
• November 10, 2025 – Informational Webinar
• December 1, 2025 – Final day to submit application questions to decarbgrants@pse.com
• December 15, 2025 (5:00pm PST) – Application submission deadline to decarbgrants@pse.com
• January 12, 2026 – Awardees are notified
• December 2026 – All construction must be completed

The criteria below outline 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. Project Readiness and Funding Efficiency (40% of total score)

• Construction-ready projects that are prepared to begin work early in 2026
• Additional funding - Projects that leverage additional funding sources (customer funding, other grants, etc.) will score higher, allowing PSE to fund more projects and maximize program impact
• Clear project timeline with ability to complete construction by December 2026

2. Workforce Benefits and Engagement (10% of total score)

Projects will be evaluated based on the participating C&I customer's existing community benefit programs and workforce development. If the C&I customer does not currently have these programs in place, you may describe your interest in or commitment to developing such programs in the future.

Note: This section represents 10% of the total project score and is used to differentiate between projects. Responses in this section will not eliminate a project from consideration for funding.

Include any of the following that apply:

• Benefits to vulnerable populations and overburdened communities through the customer's business operations or services
• Mentorship and sponsorship programs - customers that offer mentorship for underrepresented groups, pairing them with experienced professionals for skill development and career growth
• Partnership with minority, women, and veteran-owned businesses (MWBE) in the customer's supply chain or service delivery
• Employee Resource Groups (ERGs) - customers that support employee-led groups connecting people with shared backgrounds or interests, providing safe spaces and community for employees
• Talent pipeline expansion - customers that collaborate with educational institutions, such as community colleges with career and technical education (CTE) programs, to recruit talent from diverse backgrounds

3. Technical and Environmental Impact (50% of total score)

• Energy savings - Projects that can demonstrate significant natural gas savings will be prioritized based on energy impact
• Compliance with regulatory requirements such as the WA Clean Buildings Performance Standard (CBPS), Seattle Building Emissions Performance Standard (BEPS), or other local carbon reduction plans
• Energy data sharing commitment for post-project monitoring and program evaluation
• Integration with other PSE programs such as Demand Response, Energy Efficiency, Electric Vehicle, Solar, or Battery Storage programs.

Highest-Scoring Projects Will Typically Include:

• Construction-ready status with ability to complete work by December 31, 2026
• Leverage additional funding to allow PSE to fund higher quantity of projects
• Substantial natural gas usage reduction
• Clear commitment to data sharing for program evaluation
• Direct benefits to vulnerable populations or meaningful community engagement

For questions about eligibility, project requirements, or the application process, please contact the PSE Decarbonization Team at decarbgrants@pse.com.