BACKGROUND

The 2021 legislative session concluded Sunday hours before its constitutional deadline. The closing was uncharacteristically relaxed, belying the intense debate and significance of issues addressed in the preceding 105 days-- a cap-and-trade program, a capital gains tax, a low carbon fuel standard, police reform, voting rights, and the distribution of large tranches of federal economic stimulus money. 

It was also a big-issue session for ports with ample funding for the Model Toxics Cleanup Act accounts as well as the Community Economic Development Board, and Public Works broadband. Additionally, legislators expanded port authority for retail telecommunication and funded work on rule-making for specific industrial facilities siting. 

Below, we provide a priority-by-priority look at how the biggest issues for ports fared in 2021. Of course, although session is over, our work as port advocates continues as we raise awareness of key issues over the course of the year.

Watch our short video summary of the session here.

MODEL TOXICS CLEAN-UP ACT (MTCA)

The 2021 Session resulted in several big win for ports in the Capital Budget. Not least among these was WPPA’s top priority: Remedial Action Grants. A win only happens when the team works together for a common cause. This happened in spades this year will regular, coordinated messages and lobbying from ports to support clean up and redevelopment of contaminated lands. MTCA presents a unique opportunity to improve the environment and grow local economies. Full funding for grants is good news for our members and your communities.

Learn more about the state’s toxic cleanup program here.

TRANSPORTATION

The Legislative Session ended without passage of a new transportation package, despite the passage of the oft-discussed “Grand Bargain” which tied several bills together to form a transportation package. The so-called “Grand Bargain,” included Cap & Invest legislation (SB 5126), ultimately provides $5.2B towards a future transportation proposal; a low carbon fuel standard (HB 1091); and stands up the environmental justice task force (SB 5141). Both the low carbon fuel standard and Cap & Invest legislation required passage of new revenue for transportation before either program could be implemented. The passage of both bills during the closing days of session suggests some momentum to continue work on a transportation package during the interim. WPPA will continue to track any ongoing conversations that may occur. In the coming weeks be on the lookout for more information about what ports need to know about the passage of both the cap & invest and the low carbon fuel standard. 

The $11.8B, 2021-23 biennium transportation budget was a mixed bag for port districts. The budget received an infusion of $1B in federal stimulus funding. This allowed for previously funded projects to continue without funding delays as the Governor had proposed in his budget back in December. The biggest cut for ports was the $7.5M biennial funding cut to the Freight Mobility Strategic Investment Board. The budget puts historic levels of funding into fish passage barrier corrections, a total of $726M over the next two years. The budget also funded a handful of studies, and a Truck Parking Action Plan, which will map out strategies for improving freight movement.  

TAX INCREMENT FINANCING (TIF)

ESHB 1189, authorizing tax increment financing for local governments, received concurrence in the House on Senate amendments and has been delivered to the Governor for his signature. Representative Duerr is the prime sponsor of the bill and was assisted in the other chamber by Senator Frockt. Numerous amendments along the way were adopted to address concerns about the size and functionality of the increment areas. We are hearing there is a fair amount of interest in using this tool and lots of questions about implementation. WPPA will be working with WEDA and other stakeholders to provide additional information in the coming weeks and monitor implementation of this program as it goes into effect.

COMMUNITY ECONOMIC REVITALIZATION BOARD (CERB)

The Conference Committee report goes beyond both the Senate and House budget proposals by allocating $50 million for the CERB program. In their original budgets the Senate proposed $25 million, while the House proposed $40 million. CERB finances publicly owned economic development infrastructure improvements via low-cost infrastructure financing.

BROADBAND

In a year where broadband attracted significant attention, SB 5383 and HB 1336 became lightning rods in the question of how Washington will address access to this service. Both bills expanded authority for Ports and PUDs but differ significantly in that the Senate version limits public retail authority to projects in areas unserved by broadband and the House version applies no restriction. Following passage, the Governor met with the prime sponsors, Rep, Drew Hansen and Sen. Lisa Wellman, to reconcile unanswered questions regarding how these two bills might concurrently amend the same statute. These issues remain open and may ultimately be decided in court or through future legislative action.

HB 1457 has been transmitted to the to the Governor for signature. The bill is designed to facilitate the installation of broadband along state highway rights-of-way and begins the process with a Joint Transportation Committee study and stakeholder review. Prime sponsor Rep. Sharon Wylie (D-Vancouver) says she is looking forward to the interim work with ports and other interested parties.

OTHER KEY PRIORITIES

Aviation 

The Community Aviation Revitalization Loan Program (CARL) was codified into law and received $5M in additional funding for the upcoming biennium. The Commercial Aviation Coordinating Commission (CACC), a working group designed to make recommendations to accommodate future growth in air travel demand in the Puget Sound region, was extended from January 2022 to February 2023. Finally, a new committee was formed at the Department of Commerce that will develop a strategic plan for aviation and aerospace investments, including increasing competitiveness and addressing workforce development issues. The Aviation and Aerospace Advisory Committee will be co-chaired by Commerce and WSDOT; its strategic plan is due June 2023. 

Rail Labor, Safety and Investments 

Legislation to address rail safety (HB 1418) and provide additive paid leave protections for rail workers (SB 5065) ultimately did not advance during this session. Interim work continues to identify steps to advance safety and a study update looking at shortline rail investments. The Utilities and Transportation Commission will review past work to improve rail safety, convene a listening session and make recommendations for legislative intervention which stems from the 2017 Amtrak 501 derailment in Dupont, WA. Finally, the Joint Transportation Commission will update the 2015 Shortline Rail Needs Assessment and will look at existing rail programs in the state to see if they are sufficient to meet the needs of the state. 

Public Works 

SB 5032, extending the sunset for local governments to use alternative public works processes, has passed the legislature. The bill also extends the sunset for the Capital Projects Advisory Review Board (CPARB) to continue to advance best practice as it relates to contracting for public works projects. The board will have immediate work determining how to increase participation from and access for minority and women-owned businesses to public contracts.  

Manufacturing

HB 1170 creates a new state goal of doubling the manufacturing employment base and the number of manufacturing businesses. The bill requires the Department of Commerce to, among other things, convene a council to help advise the state on how to accomplish this. WPPA supported this important policy measure and we thank Representative Boehnke for bringing the issue before the Legislature.

ESSB 5141a Implementing the Recommendations of the Environmental Justice Task Force

The bill was passed by the legislature and delivered to the Governor. 

E3SHB 1091 Clean Fuel Standard (previously Low Carbon Fuel Standard)

Until the 11th hour the conventional wisdom in Olympia was that this bill would fail.  In the end it passed as a result of compromise and a direct linkage to a new transportation package.

Governor Inslee will sign HB 1091 into law.  The Department of Ecology proceed to rule-making to implement the broad policy framework embodied in the Act.  As of this writing, it is not clear how a poison pill linkage to transportation will affect the timing of the Ecology rule-making.  WPPA will be looking for opportunities for ports as implementation proceeds. 

E2SSB 5126 – Washington Climate Commitment Act  

The passage of this bill is a second big surprise from the 2021 Session.  The bill, establishing a cap-and-trade program, was adopted by the legislature and will be signed by Governor Inslee.  Of particular interest to ports, the bill includes stringent provisions protecting emissions intensive, trade exposed (EITE) businesses, and establishes a process to assess the state’s environmental review process (SEPA).  As the SEPA review gets underway, WPPA will ask port representation to be at the table.

Interim Agenda

As noted above, the clean fuel standard and cap and trade bills will entail considerable rule-making by the Department of Ecology. WPPA will participate in this work on behalf of our members. Likewise, the review of SEPA requires port participation. WPPA will advocate for port representation at the table and support representatives as appropriate.