BACKGROUND

We are in the final days of the 2021 Legislative Session which will conclude on Sunday, April 28. Legislators must complete the business of passing an operating, capital, and current-law transportation budget this weekend to finish on time. All that appears likely from the vantage point of Friday. What is less certain is whether a “Grand Bargain” that connects a new transportation package to a cap-and-trade program and a low carbon fuel standard can be completed. These big-issue items are time consuming and their coupling with an as-yet to be completed capital gains tax effort diminishes their chances of success by the end date of regular session.

MODEL TOXICS CLEAN-UP ACT (MTCA)

WPPA’s top budget priority, Remedial Action Grants, are fully funded in Conference Committee report. The port team notches another win! A big thank you goes out to all of our members who made this happen.

TRANSPORTATION

Advocates for new transportation revenue debated the possibility of picking up negotiations later this year; Senator Hobbs supported the concept in a recent interview. Fast action on SB 5126, the Cap & Invest proposal, suggested some momentum for this complex policy. This bill has been a key to a “Grand Bargain” on transportation. Not only would it provide $5.2B in revenue for a transportation package, language in the bill links the program’s implementation date to the future passage of a transportation package. WPPA has advocated to perfect this bill all week and we support the current iteration, which is expected to be voted on today by the full House. 

Meanwhile, budget writers released the 2021-23 biennium compromise transportation budget this morning. As expected, the $11.8B two-year budget is quite lean with very little funding for new initiatives or projects. The Freight Mobility Strategic Investment Board received some of the largest cuts similar to those seen in the House proposal, $7.5M over the biennium that would have been used for future awards. A handful of studies were funded, including a Truck Parking Action Plan, an update to the 2015 Shortline Rail Needs Assessment and funding for the Office of Minority and Women Owned Enterprises which will help to expand access to contracting opportunities outside the Puget Sound Region. 

A full wrap-up of what’s in and out for transportation funding will be available early next week.

TAX INCREMENT FINANCING (TIF)

ESHB 1189, authorizing tax increment financing for local governments, received concurrence in the House on Senate amendments and now goes 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. WPPA will be working with other stakeholders to monitor implementation of this new tool.

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 has attracted significant attention, SB 5383 and HB 1336 have become lightning rods in the question of how Washington will address access to this service. Both bills expand 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 vigorous debate, both bills passed but have not yet been brought to a concurrence vote. Questions regarding how these two bills might concurrently amend the same statute remain open.

HB 1457, a bill designed to facilitate the installation of broadband along state highway rights-of-way, was transmitted this week to the to the Governor for signature.

OTHER KEY PRIORITIES

Aviation 

Legislation making the Community Aviation Revitalization Loan Program (CARL) permanent was transmitted to the Governor this morning. The Capital Budget also included $5M in additional funding for the program for this biennium. The Transportation Budget has extended timelines for the Commercial Aviation Coordinating Commission to complete its work. Final recommendations are now due February 2023. This work is designed to identify ways to accommodate anticipated growth in air travel in the Puget Sound region. 

Capital Budget

Overall: wow.  Please take a look at our blog for a comprehensive analysis.

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)

The House asked the Senate to accept its version of the bill.  The Senate has insisted on its version.  Representative Fitzgibbon must decide whether to accept the Senate version or seek a conference committee.  The clock is ticking.

E2SSB 5126 – Washington Climate Commitment Act  

The bill, establishing a cap and trade program, has been widely considered dead again and again.  It will be considered on the floor of the House today.  WPPA supports the floor striking amendment by Representative Fitzgibbon.  The striker:

·      Invests $5.2B in transportation and requires adoption of a future transportation package.

·      Provides economic development opportunities to attract clean manufacturing jobs.

·      Helps ports expand existing habitat restoration and GHG reduction actions.

·      Recognizes the need to protect emission-intensive, trade exposed (EITE) businesses from unfair competition and that more may need to be done.

·      Provides new protection and public investment opportunities for highly impacted communities.

Environmental Review Proviso

In a late breaking development, a proviso directing the Department of Ecology to convene stakeholders to develop recommendations for changes to the state’s statutes emerged.  WPPA is worked with advocates in the House, the Governor’s Office, organized labor, and the Senate.  The Conference Committee report on the operating budget will tell if we were successful.