Natural Gas Phase Out By 2027

Because of your signature, and signatures from 546,000 other concerned citizens, the State of Washington has announced that I-2066 will be on the November ballot! Thank you to “Let’s Go Washington” for creating and distributing the initiative! Voters now have the opportunity to overturn HB 1589, which phases out natural gas availability to every neighborhood, every home, and every business throughout the State of Washington by 2027.

The source of these arguments is the " Inslee signs natural gas bill into law …" article, shown below these arguments. 

About House Bill 1589 (HB 1589)

HB 1589 phases out all natural gas and propane in the State of Washington, and forces all homeowners and businesses to bear the cost of converting from gas appliances to electric appliances. This law requires the conversion to be completed by 2027.

HB 1589’s emergency clause causes it to take effect immediately. 

HB 1589, prohibits Puget Sound Energy, and similar companies, from distributing natural gas within the State of Washington by 2027. The bill states that energy companies must achieve “electrification of end uses currently served by natural gas.”.

Because of HB 1589, if Puget Sound Energy determines an appliance (like a natural gas-powered heat pump) is not effective, state utility commissioners can require Puget Sound Energy to move customers from natural gas to electricity, regardless of the obligation to serve.

HB 1589 drastically inflates utility rates.

“This (HB 1589) will lead to significant short-term rate increases which will disproportionately impact low and moderate-income households without corresponding commitments from the utility to retire gas infrastructure to meet climate targets and save customers money,” The Washington State Community Action Partnership.

Puget Sound Energy says the typical residential electricity customer will see a 17% rate increase by 2026. The typical natural gas customer would see a 20% rate increase by 2026.

Home and business owners must pay to replace appliances

“Customers will be responsible for replacing gas furnaces, water heaters, stoves and commercial and industrial equipment,”. Sen. Chris Gildon, R-Puyallup.

The Building Industry Association of Washington estimates Puget Sound Energy’s residential customers will face an expected average cost converting to electricity of about $40,000 per home.

“Owners of older homes can expect much higher costs because of necessary upgrades to wiring, electrical panels and other equipment,”. Sen. Chris Gildon, R-Puyallup.

HB 1589 does offer some financial assistance to lower-income homeowners. But the money can’t be used to replace gas appliances, or make other home modifications. 

At the time HB 1589 was signed into law, there were no details on any assistance for middle-income ratepayers, or potential impacts on renters. Renters would potentially absorb the costs of their landlords’ conversion from natural gas appliances to electric appliances.

HB 1589 Politics

HB 1589 passed during the 2024 legislative session only after the Democrat House Speaker left voting open until enough democrat members were convinced to vote “yes”. Every Republican opposed HB 1589.

Governor Inslee signed HB 1589, despite calls for a partial veto from progressive and environmental groups such as the Sierra Club, Washington State Budget and Policy Center, The Washington State Community Action Partnership (WSCAP) and Sightline Institute. They say this law primarily benefits Puget Sound Energy at the expense of customers.

Republicans have made no secret of their staunch disapproval of HB 1589.

Republicans said HB 1589 ultimately imposes enormous costs on customers in order to protect Puget Sound Energy from the financial consequences of bad energy policy.

Puget Sound Energy’s Position on HB 1589

Puget Sound Energy’s attorneys helped to draft HB 1589.

Puget Sound Energy requested HB 1589 be brought forward during the legislative session. 

HB 1589’s accelerated depreciation lets Puget Sound Energy more quickly pass on costs of natural gas infrastructure to customers, instead of spreading cost increases over multiple years. 

(HB 1589 has many financial perks for Puget Sound Energy, and few financial solutions for consumers to pay the expense of gas to electricity transition in their homes/businesses.): Sightline Institute fellow Laura Feinstein.

Puget Sound Energy is owned by investors outside the United States.

Chief Investment Officer, August 10, 2018.