Tumwater approves participation in Energize Thurston heat‑pump group purchase; Habitat for Humanity to administer low‑income pathway

Tumwater’s City Council on Jan. 7 authorized the mayor to sign an interlocal agreement to join Thurston County and neighboring cities in the 2025 “Energize Thurston” heat‑pump group purchase campaign and separately approved a service provider agreement with South Puget Sound Habitat for Humanity to administer the low‑ and moderate‑income pathway.

The campaign is funded by a Department of Commerce grant supported by the Climate Commitment Act. Brad Medruth, deputy community development director, told the council the grant totals $477,540 and that up to 15% may be spent on administrative costs; $408,485 is available for direct installations. Medruth said the city expects that funding could cover “between 20–40 homes” and that at least 60% of direct‑installation funds are being reserved for the lowest‑income households.

The program will offer two participant pathways: a fully or partially subsidized pathway for income‑qualified households administered by South Puget Sound Habitat for Humanity and a self‑funded pathway offered to households above the income threshold. Medruth described the eligibility and subsidy structure: “For the fully subsidized pathway, they need to make 79% area median income or below,” and the partially subsidized pathway would expect a minimum household contribution “of up to $2,500 or 20% of the project cost.” He said installers will be required to meet cold‑climate heat‑pump efficiency standards, and necessary electrical‑panel upgrades or duct sealing will be included when required.

Tumwater staff will use the Commerce grant funds the city received and will serve as primary case manager for Tumwater residents in the program. Medruth said each participating jurisdiction will contract separately with Habitat for Humanity for the LMI work; Thurston County will be the lead jurisdiction to contract with installers and a customer‑support consultant. The self‑funded pathway will have a negotiated group‑purchase discount from installers and a choice of three installers where available.

Council member Michael Althauser moved to authorize the mayor to sign the interlocal agreement with Thurston County, City of Lacey, City of Olympia and City of Tenino to support implementation of the Energize Thurston campaign; the motion was seconded and passed. Council member Eileen Swartout moved and Kelly von Holtz seconded the separate motion to authorize the mayor to sign the service provider agreement with South Puget Sound Habitat for Humanity; that motion also passed.

Medruth said staff are already working on outreach and that a small waiting list exists, including interest from a manufactured‑home park and households enrolled in the city’s Utility Lifeline program. He said workshops (required for participation) will be offered in person and on demand online, with translation planned at least into Spanish.

The council vote moves the program forward in Tumwater. Staff will return with program implementation details and will coordinate outreach and case management for Tumwater residents.