BACKGROUND

It is a busy moment in Olympia—we are just over a week away from the February 15 deadline to pass bills out of committee and read them into the house of origin. This means committee processes must speedily move bills through amendment negotiations and vote them out. Although the virtual session has produced fewer bills, committee calendars still cannot support the full load—and many bills will not survive. This drives legislators and lobbyists work hard to ensure their issues remain active. As the session progresses, the legislature will face several calendar cutoffs, and this cycle of frenzied activity followed by a narrowing of legislative focus will repeat several times.

WPPA membership also had a big week— Feb. 2nd was virtual Port Day hosted together with the Washington Maritime Federation. We had great member turnout and strong legislative participation from caucus leadership.

The trend of attracting ever-increasing numbers of public participation continued as witnessed in a hearing on SB 5344, a COVID-19 response bill allocating $2.2B to relief and recovery efforts such as vaccinations, schools, rent relief, and emergency childcare. The measure is funded largely by federal dollars from relief packages passed by Congress throughout 2020 and is paired with $440 million from state budget reserves.

We’ve complied a complete list of port-focused legislative action from the past week below.

MODEL TOXICS CLEAN-UP ACT (MTCA)

WPPA sent a letter to fiscal leadership in the House and Senate expressing concern with elements of the Governor’s proposed budget that violated purposes for which these funds were authorized.  The letter was signed by the members of the MTCA Coalition including cities, counties, the Washington Environmental Council, and the Western States Petroleum Association.  The Coalition meets regularly to share information and coordinate actions to protect MTCA funds for their intended purpose. 

TRANSPORTATION

With the release of new-revenue transportation proposals from both transportation committee chairs early in session, the conversation shifted this week to analyzing proposals and advocacy. Rep. J.T. Wilcox’s comments to port leaders during Port Day underline the minority party position—to dismiss calls for new transportation funding in 2021.  Despite the rhetoric, there is acknowledgment that revenue shortfalls and a court injunction requiring investment in fish passage barrier removal require more funding. 

Forward Washington, released last week by Senator Hobbs, continues to be favorable to ports. It seeks additional flexible funding for varied infrastructure needs, like the freight mobility board and several high-profile, multi-year projects. 

The House Majority’s $26B, 16-year proposal has specific priority areas and provides less detail on ports and freight movement.    

As WPPA awaits bills from the proposals, we are working with both chairs to advance our interests. Senator King will also be releasing the first proposal from the minority party and may signal where common ground might be found.  

COMMUNITY ECONOMIC REVITALIZATION BOARD (CERB)

SB 5175, establishing a broadband program within the Community Economic Development Board moved to the Senate Ways and Means Committee and is scheduled for public hearing on February 11. WPPA is supporting the Governor’s budget request of $45M for CERB funding.

BROADBAND

Telecommunications policy and funding continues to be a priority issue in economic development and fiscal committees, with a recent work session and movement on three high-profile bills. The House Capital Budget Committee explored digital equity for K-12 students in a work session featuring testimony from the Office of the Superintendent of Public Instruction and the State Broadband Office. SB 5175, establishing a broadband program within CERB moved to the Senate Ways and Means Committee and is scheduled for public hearing on February 11. HB 1336, granting Ports and PUDs retail telecommunications authority, passed out of the House Community and Economic Development Committee and now awaits action in House Rules. SB 5383, granting limited retail authority to PUDs was heard in the Senate Environment & Technology Committee and is scheduled for executive action on February 10.

TAX INCREMENT FINANCING (TIF)

The coalition supporting tax increment financing has been busy working through comments and questions about how the bill is drafted and how it would work. Meetings continue this week. Meanwhile, the Senate Ways & Means Committee has added a hearing for SB 5211 on February 12.

OTHER KEY PRIORITIES

Aviation 

Both HB 1030 and SB 5031 advanced out of their respective committees this week.  The companion bills would make the Community Aviation Revitalization Loan Program permanent.  WPPA supports these bills.  WPPA also testified in support of SB 5329 this week.  This bill would reallocate a portion of aviation fuel sales tax to the state aeronautics account for allocation to airport infrastructure projects.  

Rail Safety and Labor 

Several bills focused on railroad safety and labor are scheduled for committees next week.  HB 1418, which seeks to transfer significant rail safety oversight to the Utilities & Transportation Committee, is scheduled to be heard in House Transportation next Monday.  The bill is a response to the 2017 derailment of Amtrak 501 in Dupont, WA.

WPPA is also planning to oppose SB 5065 which is scheduled to be heard in the Senate Labor & Commerce Committee next Wednesday.  The bill would establish an entirely new framework related to railroad labor, including significant new reporting, oversight and enforcement action for all railroads operating in Washington.   

We are actively soliciting your input on these bills and will provide detail on our concerns with these bills on the Manifest blog early next week.  Port members will also have an opportunity to weigh in on this legislation.

Public Works 

Significant legislation relating to public works authorities continue to be heard early in this session. SB 5032, extending the use of alternative public works authorities, zipped out of the Senate this week with the chamber’s unanimous vote.  

WPPA testified with concerns on HB 1308 which would expand apprenticeships for public works projects as a way to increase workforce development.

We continue to work with bill sponsors to increase small works thresholds to $500,000 in HB 1259 and to maintain risk certainty associated with certain contractual provisions which the current draft of SB 5333 would make unenforceable. WPPA is working with CPARB and the bill sponsor to make sure that the bill is workable and will provide testimony for this important legislation. 

HB 1391 is scheduled for a hearing in the House Capital Budget Committee next Tuesday. The bill provides certainty to subcontractors but omits important exemptions for RCW 39.10 as negotiated by CPARB. 

OPMA

Several local government groups held a discussion about the proposals that would amend Title 42.30, the Open Public Meetings Act. WPPA will express concerns to legislators about proposed requirements to hold public testimony at all public meetings, and tape and store all meetings. The Chair of the Local Government Committee, the bill sponsors and committee members will meet in the next week and decide how to proceed. Bills still in committee have to be voted on by February 15 to remain alive.

House Bill 1091 Clean Fuel Standard (previously Low Carbon Fuel Standard)  

The bill is scheduled for executive session on February 9th in the House Appropriations Committee.  It is expected to advance to be considered on the floor.  WPPA has not taken a position on this bill. 

SB 5126 Washington Climate Commitment Act  

The bill embodies a cap and trade approach to carbon pricing.  It has not yet been scheduled for an executive session in the Senate Energy, Environment and Technology Committee.  Its connection to revenue and spending exempts the bill from February 15th cutoff. 

 In its current version the bill does not provide funding for transportation.  WPPA testified against it for this reason.  It is apparent, however, that discussions among members recognize that a significant portion of revenue will be dedicated to transportation purposes.   

SB 5373 Carbon Tax 

The bill is an alternative to the cap and trade bill sponsored by the chairman of the Senate Environment, Energy and Technology Committee.   It has not yet been scheduled for a hearing.   Like SB 5126, it is exempt from the February 15th deadline for bills to move out of their committees of origin.   

SB 5125/HB 1193 Dredged Material Disposal 

WPPA testified in favor of the Senate bill and expressed support for it in the House.  Executive session in the Senate was moved to February 9th.  Negotiations with the Department of Ecology have successfully resolved agency concerns. 

SB 5174 Recycling of Wind Turbine Blades 

The bill requires manufactures to establish and pay for the capacity to recover and recycle wind turbine blades.  WPPA is currently neutral on this policy, but it may represent an opportunity for port districts to recruit private businesses competing in the recycling marketplace.  The bill advanced to the Ways and Means Committee on February 3rd. 

SB 5141 Implementing the Recommendations of the Environmental Justice Task Force   

The bill is scheduled for executive action in Senate Environment, Energy and Technology Committee on February 9th.  WPPA has not taken a position on the bill and will monitor as it moves through the process.  Proponents have negotiated changes to address state agencies concerning implementation.   

SB 5415  Concerning the energy facility site evaluation council  

The bill amends Energy Facility Site Evaluation Council statutes.  The bill removes a temporary, non-voting port representative that is appointed when proposed port facility is subject to EFSEC review.  The central purpose of the bill is to streamline the siting process for “clean energy” facilities.  Proponents are concerned that some clean energy producers may not be inclined to site in Washington due to regulatory uncertainty.  The bill is scheduled for hearing on February 9th.  

The fate of the Clean Fuel Standard, Environmental Justice, Carbon Pricing and Transportation Budgets are linked in some unexpected ways.   

• Environmental justice advocates strongly object to carbon pricing through cap and trade; preferring a carbon tax.  While cap and trade remains the preferred vehicle for mainstream environmental advocates and legislative leadership, the potency of equity and environmental justice politics in 2021 is a significant complication.   

• In previous sessions the Senate has conditioned passage of a clean fuel standard on an agreement to fund a new transportation package.   

• Transportation packages in both houses currently assume funding from a carbon tax.   

Taken together these connections pose a challenge for leadership in both houses of the legislature.