Friday Legislative Report - January 28, 2022

BACKGROUND

Port and maritime industry leaders joined forces this week to host Ports - Maritime Day for nearly 180 participants to engage with legislative leaders and policy makers. The annual event is typically held in the legislative building; it includes legislator visits and an evening reception at the Olympia Yacht Club. While this year’s version was held online, this format allowed us the flexibility to bring together leadership from both the Senate and the House, along with legislators leading on port issues, Governor’s Office staff, and Department of Ecology program managers.

It was also a very active week for WPPA staff organizing advocacy efforts and testifying on bills. Read on to learn more about individual bills.

TRADE, TRANSPORTATION & INFRASTRUCTURE

Additional funding for transportation advances

Transportation committee chairs Representative Jake Fey and Senator Marko Liias have both signaled the possibility of seeing an agreed-to proposal as early as next week; while still in discussions, the framework increases funding over 15-years and is currently between $12-$15B. The revenue comes from four main sources: appropriating revenue generated by the passage of the Climate Commitment Act, an increase in transportation-related fees, increases in programmatic funding provided through the Infrastructure Investment & Jobs Act (IIJA) and a one-time transfer of revenue from the state’s general fund.

Senator Liias acknowledged early in session that it was the wrong time to consider increasing the gas tax, leaving this off the table as a possible revenue source. As a result, additional funding for roadway projects in this package is likely to be slim. The bulk of additional spending will go to maintenance and preservation and addressing the rising costs of additional projects like the Gateway Program and the final phases of the SR 520 floating bridge project.

Competing for IIJA grant funding

WPPA continues to seek ways that the state can help ports and our partners compete for over $100B in IIJA competitive grant funding. Ports continue to support finishing projects already started under the Connecting Washington package, as well as the replacement of infrastructure beyond its useful life, like the Interstate Bridge Replacement project.

Trucker safety and access issues

A work session focusing on trucking and supply chain workforce shortages is scheduled in the House College & Workforce Development Committee next Tuesday. WPPA testified last Tuesday in favor of HB1657, a bill that creates incentives for the development of truck parking by allowing port tenants developing 10 or more spaces to waive leasehold excise tax.  

Road usage charge

Representative Wicks has introduced a bill which would phase in adoption of the road usage charge beginning in 2025. HB2026 is scheduled for a hearing in the House Transportation Committee next Thursday. As more zero emission vehicles come online, replacing gasoline or diesel fueled vehicles, a shift to a new revenue model to fund transportation infrastructure will be necessary. WPPA supports the road usage charge as a method to ensure revenue for transportation is sustainable.

Broadband

SB5715, sponsored by Sen. Lisa Wellman, revises the definition of broadband service to increase service speeds. The bill, which was heard in the Senate Committee on Environment, Energy & Technology this week, supports the transition to glass fiber technology.

HB1722, which requires cities and counties to allow micro-trenching for the installation of underground fiber, was heard in the House Committee on Local Government this week and is scheduled for executive action next week.

Broadband assistance & digital equity

HB1723 establishes the Washington Broadband Assistance Program to provide reduced rates for voice and broadband services for low-income households. The bill also creates the Digital Equity Planning Grant Program to provide grants to local governments, institutions of higher education, and workforce development councils for digital equity planning. The House Committee on Community & Economic Development advanced the bill, which is now scheduled for public hearing in House Committee on Appropriations on February 1.

Public Works Board Broadband

HB1673 directs the public works board to create a pre-application process for its broadband infrastructure loans and grants program. The House Committee on Community & Economic Development advanced the bill, which is now scheduled for public hearing in House Committee on Capital Budget on February 1.

ENVIRONMENT

Addressing delays in MTCA-funded projects

SB5895 is scheduled for public hearing the Senate Committee on Environment, Energy & Technology at 10:30 AM on February 1. The bill seeks to reverse a 2019 bill’s requirement that local governments have all permits in hand prior to receiving remedial action grant funding, creating significant delays in port projects.

Decarbonization bills

As previously reported, Governor Inslee has prioritized four bills aimed at reducing carbon in the building sector. This week, HB1766, “Modifying the regulation of gas companies to achieve reductions in greenhouse gas emissions,” was heard in the House Environment & Energy Committee. This bill would require natural gas utilities to create a clean heat transition plan aimed at reducing emissions. Additionally, the bill establishes restrictions on offering new service to certain customers after 2022 and that gas utilities may not extend service to new customers after 2024 without UTC approval.

Emissions Intensive Trade Exposed (EITE) legislation scheduled for a vote out of Committee next week

Department of Ecology request legislation, House Bill 1682, is scheduled for a vote out of Committee early next week. This bill would create a compliance pathway for Emissions Intensive Trade Exposed (EITE) businesses, many of which are important partners with ports. The prime sponsor, Rep. Joe Fitzgibbon (D-West Seattle), has expressed his interest in working with EITE’s to continue to improve the legislation.

Derelict Vessels funding update

The companion derelict funding vessels received good news this week when HB1700 (Representative Paul, D-Oak Harbor) was moved out of the Rules Committee, and SB5598 (Senator Lovelett, D-Anacortes), passed unanimously out of Senate Agriculture, Water, Natural Resources & Parks Committee and was sent to Ways & Means.  Since the bill calls for funds to be transferred from the general fund to the derelict vessel fund, the fiscal committee needs to also approve the bill. 

These bills call for a 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 have been working hard to pass these bills, and we thank you for your continued communication to legislators about the importance of advancing these bills.

GOVERNANCE & PORT OPERATIONS

Odd-year elections

HB1727 (Representative Gregerson, D-SeaTac) would eliminate odd-year elections (except special elections) after 2028.  There was extensive testimony and signers for and against the bill, as has been the case in past years.  The House Committee on State Government & Tribal Affairs passed the bill on a party-line vote and referred it to the Rules Committee.  WPPA signed in opposed, primarily because this change would result in a general election ballot that would be unwieldy, and voters could experience ballot fatigue before they got to still important, but down-ballot, port or other local elections.

ECONOMIC DEVELOPMENT

Shovel-Ready site certification

HB1958, introduced by Representative April Berg (D – Mill Creek), would create a shovel-ready site certification program to pre-determine shovel-ready status.  The bill also allows CERB to increase the maximum amount they may distribute for planning grants.  WPPA testified in support of this bill, and we are asking that HB1958 be scheduled for a vote on in the coming week.