BACKGROUND

Washington’s 60-day, “short,” legislative session began Monday and immediately defied expectations that short means slower-paced. Lawmakers, driven by pressing issues plaguing Washington’s communities, began trying to wrangle housing and homelessness, public safety and policing policy, pandemic response, executive emergency powers, long-term health care, drug possession, increasing gun violence, and extending state economic recovery. Contrary to intentions to meet at least partly in person, legislators are continuing their work from sequestered locations with public access limited to phone calls and digital platforms.

The 2022 Session is buoyed by a bright revenue forecast and over $1B in federal COVID relief funds still available to construct the off-year supplemental budget, which will add money to the current $59B biennial budget. Transportation interests see this as an opportunity to transfer operating budget dollars into relatively anemic accounts that fund state highway projects. Governor Inslee’s supplemental budget proposals, which he unveiled last month, add $4.2B in new spending largely aimed at homelessness, mental health, salmon recovery, and climate change.

TRADE, TRANSPORTATION & INFRASTRUCTURE

CERB broadband infrastructure authority

SB5586 establishes an appropriated loan and grant program for financing broadband infrastructure by the Community Economic Revitalization Board (CERB) and was heard in the Senate Committee on Business, Financial Services & Trade this week. The bill received support from WPPA and testimony from CERB Chairman and Port of Pasco Executive Director Randy Hayden and Joe Poire, Port of Whitman County. Its companion bill HB1740 has yet to be scheduled for a hearing in the House.

Public Works Board broadband requirements

A set of companion bills, SB5580 and HB1673, requiring the Public Works Board (PWB) to publish the proposed geographic broadband service areas and broadband speeds for broadband grant and loan program applications for at least 30 days were heard in Senate Committee on Environment, Energy & Technology and House Committee on Community & Economic Development, respectively. These bills also eliminate a broadband program requirement for a Utilities and Transportation consultation and technical feasibility study.

Expanding access to broadband

HB1723 which focuses on broadening affordable access to broadband for all Washingtonians was heard in House Committee on Community & Economic Development. The bill establishes the Washington Broadband Assistance Program to provide low-income persons with reduced rates for eligible voice and broadband services. It also establishes the Digital Equity Planning Grant Program to provide grants to local governments, institutions of higher education, workforce development councils, or other entities to fund the development of a digital equity plan for a discrete geographic region of the state. The committee has scheduled the bill for executive action on January 14.

Water Infrastructure Funding

Senator Jim Honeyford (R-Sunnyside) has introduced SB5632 to establish a comprehensive water infrastructure program (creating a grant program and a bond account) to address water availability, flooding, fish passage, and stormwater pollution.  The bill would use federal funds as a main source of funding.  A hearing has been scheduled for January 18th in Senate Agriculture, Water, Natural Resources & Parks.

Transportation funding

The two transportation committees in the Legislature kicked off the 2022 Legislative Session by getting updates on the transportation revenue forecast, the Governor’s Supplemental Transportation Budget, and the implementation of past legislation-- including the Climate Commitment Act and the 2019 Green Transportation program. The revenue and budget updates were clear that transportation revenue won’t return to pre-pandemic levels until 2030 (see figure 1, below). At the same time, project costs are escalating fast.

To address project cost overruns, the Governor’s budget proposal gives projects a half billion dollars of American Rescue Plan Act (ARPA) funding. The Governor also gives an additional $747M to ferry capital and operating expenses, preservation, electric vehicle charging and “active transportation” like bike lanes.

Climate Commitment Act Funds

As the legislature contemplates programing part of the $5.2B anticipated from the Climate Commitment Act, WPPA is working hard to ensure port interests are represented—including ensuring port and freight projects are included in where this money goes. Ports have identified projects that would significantly reduce greenhouse gas emissions. 

New transportation package

Senator Marko Liias, the new Senate Transportation Chair, has expressed optimism in pursuing a small transportation package during this session. WPPA continues to voice strong support for a balanced package which increases spending on statewide maintenance and preservation as well as finishing incomplete legacy transportation projects like SR-18 and US-12. Your port can support a new transportation package too; “Keep Washington Rolling” has drafted a support letter that your port can sign on to here: https://docs.google.com/forms/d/e/1FAIpQLSfJSB8bDbO10sX8ub0T1tpAbvtD9X_3Sf5KgBwTs0G8MKZQmA/viewform

ENVIRONMENT

Emissions Intensive Trade Exposed (EITE) legislation scheduled for a public hearing next week

During the 2021 Legislative Session the legislature enacted a statewide cap-and-trade program, known as the Climate Commitment Act (CCA). The bill included stringent provisions protecting Emissions Intensive Trade Exposed (EITE) businesses, some of which are important partners with ports. The Department of Ecology was tasked creating legislation for an EITE compliance pathway. Next week, HB1682 will be heard in the House Environment & Energy Committee. The prime sponsor, Rep. Joe Fitzgibbon (D-West Seattle), has wants to continue to work with EITE stakeholders to further refine the draft proposal.  WPPA will convey to the sponsor and other legislators the importance of keeping these industries viable in Washington.

Governor’s Inslee’s Decarbonization Bills

Governor Inslee introduced four bills aimed at reducing carbon in the building sector. This week, SB5722, “Reducing greenhouse gas emissions in buildings,” sponsored by Senator Joe Nguyen (D- White Center), was heard in the Senate Environment, Energy and Technology Committee. In 2019, the legislature passed the Clean Buildings Act which allows the Department of Commerce to develop energy performance standards for buildings larger than 50,000 square feet and provide incentives to encourage efficiency improvements. This bill would create new tiers of performance standards for buildings between 20,000-49,999 square feet. During the hearing, legislators listened to concerns about the phase-out of natural gas in buildings, the impact on affordability of energy, and energy reliability.

Next week, HB1770, “Strengthening energy codes,” has been scheduled for a public hearing in the House Environment & Energy Committee. This bill would propose a ‘net-zero ready’ requirement for all new construction beginning in 2034. The bill calls for a reduction of energy use by 80%, calls for all-electric equipment and appliances, requires electrical panel capacity and wiring for solar panels, and incorporates electric vehicle charging and battery storage. Additionally, the bill would allow cities and counties the option to adopt a new statewide ‘reach code’ for residential construction, which is currently prohibited. 

Deputy Director of the WPPA Victoria Lincoln invites you to read the following bills and get in contact directly with her about your comments: HB 1766/SB 5668; HB 1767/SB 5666; HB 1770/SB 5669; HB 1774/SB 5722.

Tax Deferrals for Clean Technology Manufacturing, Clean Alternative Fuels Production, and Renewable Energy Storage

Next week, SB5744, “Concerning tax deferrals for investment projects in clean technology manufacturing, clean alternative fuels production, and renewable energy storage,” is scheduled for a public hearing. This bill would create a tax deferral on investments over $2M in new, renovated, or expanded buildings that support clean related industries and purchases or upgrades of certain equipment and machinery.

 Funding for Derelict Vessels

Next week, both bills providing new funding for the removal of derelict vessels will be heard.  HB1700, sponsored by Rep Dave Paul (D-Oak Harbor) will be heard in House Appropriations on January 17th.  SB5598, sponsored by Sen Liz Lovelett (D-Anacortes), will be heard in Senate Agriculture, Water & Natural Resources Committee on January 20th.  This proposal calls for transfer of 25 percent of the Watercraft Excise Tax into the Derelict Vessel Removal Account, creating reliable and sustainable funds for vessel removal into the future.  Port representatives, together with other interest groups, will testify in support of the measure.

GOVERNANCE & PORT OPERATIONS

Remote Participation in Public Meetings

HB1329, sponsored by Rep Emily Wicks (D- Everett), was introduced last session to address remote participation in public meetings.  The bill requires public agencies to provide an opportunity for public comment at or before every regular meeting at which final action is taken; requires agencies to provide an opportunity for remote oral comment, upon request, if individuals find physical attendance at a meeting difficult; encourages agencies to provide remote access to meetings; and encourages agencies to record and post recordings of meetings online for at least six months.  WPPA, along with other local governments, worked with the prime sponsor to amend the bill.  This version includes amendments offered by local governments while maintaining the spirit of the original intent, which was to provide remote access to residents wanting to participate in public meetings.  The bill passed out of the House and has been referred to the Senate State Government & Elections Committee for further review.

ECONOMIC DEVELOPMENT

.09 Sales Tax in Rural Counties

A bill from last session extends the .09 program out to the year 2054, HB1333 (sponsored by Rep Steve Tharinger (D-Sequim)) was pulled from the House Rules Committee this week, and is anticipated to be sent back to the Senate for further review.  WPPA has this on the 2022 priority list. WPPA will be reminding legislators that the bill passed unanimously out of the House last year, and the favorable amendment being offered by Rep Tharinger will ensure Garfield County can continue their .09 program.