Friday Legislative Report - February 18 , 2022
BACKGROUND
With Session nearly two-thirds complete, the legislature focused on budget details, including the new transportation funding package branded “Move Ahead Washington.” The first since 2015’s $16B “Connecting Washington,” the current proposal was voted out of the Senate Tuesday on a party-line vote and sent to the House Transportation committee for hearing. This week the Senate also revealed a supplemental capital budget containing 14 port-related projects and received public testimony on the proposal. We’ve got details on all the week’s activity by area below.
TRADE, TRANSPORTATION & INFRASTRUCTURE
Capital Budget process begins
Senate Ways & Means Committee unveiled their capital budget proposal this week and took testimony from more than 60 interested parties. WPPA thanked Senators for funding more than a dozen port projects and directing a total of $50M toward broadband infrastructure in CERB and PWB. WPPA also reminded Senators that all ports could apply for project funding in Core CERB, should they direct more money into that program. Next week, the House Capital Budget proposal will be released and WPPA will scrub that document for port funding opportunities.
Move Ahead Washington transportation package is on the move
The 16-year, $16.8B package Move Ahead WA transportation package advanced out of the Senate late Tuesday night on a party-line vote. The House version, HB2119, was heard in the House Transportation Committee Thursday. With 155 people signed in to testify, the committee took testimony from out-of-state residents, including legislators from Oregon and tribal members from Alaska, who would presumably be impacted by the bill’s fuel export tax. WPPA testified with concerns which are highlighted below. The House Transportation Committee will vote on the proposal Monday. Both transportation committees with then transition to introducing and hearing supplemental transportation budgets next week. The Senate supplemental Transportation Budget is scheduled to be released Sunday evening.
Move Ahead WA Infographic
Details on the package video blog
WPPA advocacy for Move Ahead Washington
Ports have been strong supporters of additional revenue for transportation but do have concerns about certain elements of Move Ahead Washington.
Geographic Equity – Move Ahead Washington was developed by the transportation committee chairs and was negotiated with members of the majority party only. This has resulted in certain regions of the state having few or no priorities funded in this proposal. Ports have long supported a non-partisan, balanced, systems-approach to funding transportation as the best way to retain a well-functioning transportation network.
Constitutionality of fuel export fee – A fee on the export of fuel refined in Washington but consumed in neighboring states is included in Move Ahead Washington. The fee is anticipated to generate just over $2B in revenue. There are concerns that this funding option may not be constitutional. WPPA is concerned that a prolonged legal case addressing the constitutionality of the export fee will further delay projects. Ports support stable and reliable funding for transportation as the best way to maintain and improve our transportation system.
Climate Commitment Act eligibility for Ports
WPPA is advocating for increased funding and clear project eligibility for two funding components of the CCA: alternative fuel & electrification ($488M) and rail ($162M). The alternative fuel and electrification component requires greater clarity around project eligibility and currently receives less than 10% of the total CCA transportation allocation. This is not enough funding. The rail component currently only funds passenger rail initiatives. WPPA would like to see freight rail projects also be eligible for funding with CCA funding.
Port & Local Government funding
Many programs important to ports and our local partners received little of no funding in the Move Ahead Washington proposal. The Freight Mobility Strategic Investment Board, County Road Administration Board, and WSDOT’s Freight Rail Assistance Program and Freight Rail Investment bank received no funding. The Transportation Improvement Board saw only a small increase in their complete streets program. WPPA believes ports and are project partners would be much better positioned to continue to compete for over $100B in competitive grant funding available through the Infrastructure Investment & Jobs Act with even a modest increase in funding to these core transportation programs.
Broadband access for low-income households
HB1723 establishes the Washington Broadband Assistance Program to provide reduced rates for voice and broadband services for low-income households. This legislation 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 bill moved out of the House on a 68 to 30 vote and now sits in the Senate Environment, Energy & Technology Committee.
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 bill passed out of the House on a vote of 96-0 and sits in the Senate Environment, Energy & Technology Committee.
Increasing broadband speeds
SB5715, sponsored by Sen. Lisa Wellman, revises the definition of broadband service to increase service speeds and supports the transition to glass fiber technology. The bill was voted out of the Senate this week 49-0 and is scheduled for public hearing House Committee on Community & Economic Development on February 22.
ENVIRONMENT
Fixing MTCA project delays
SB5895 concerning timing restrictions for remedial action grants to local government, has passed through the Senate on a 49-0 vote and is scheduled for a hearing in the House Committee on Capital Budget on February 24. The bill seeks to reverse a requirement that local governments have all permits in hand prior to receiving remedial action grant funding, creating significant delays in port projects.
Update on funding for derelict vessel removal
HB1700 had a very good hearing in Senate Agriculture, Water, Natural Resources & Parks Committee this week, and was promptly voted out of the committee on the same day. The bill continues to move in part because the harsh examples given for the need for more stable funding are likely prompting legislators to keep the bill moving. At this point, the bill remains in its original form (meaning without amendments) and if passed from Ways & Means, will be completely out of the committee process. If your port has a Senator serving on the Senate Ways & Means Committee, please let them know this is an important bill for the ports near waterways.
As a reminder, this bill calls 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. The Department of Natural Resources estimates that with the current number of known derelict vessels, this infusion of funding will help them clear that backlog within 10 years.
Net Ecological Gain
WPPA submitted concerns about HB1117 as part of public testimony on the bill in the Senate Housing & Local Government meeting on Wednesday. The bill weaves the goal of improving salmon stocks into growth management law including local permitting and project mitigation strategies. WPPA strongly supports the goal of the legislation, a priority highlighted in work conducted by the ORCA Task Force but has concerns about aspects of the bill. For example, it places the burden of funding net ecological gain on public sector projects, which could set infrastructure projects up for more uncertainty as the path to successful mitigation is left undefined in the bill. The bill has been scheduled for executive session next Wednesday.
Emissions Intensive Trade Exposed (EITE) legislation - alive
Department of Ecology request legislation, HB1682, is still alive despite no public action since February 1. The Department of Ecology, stakeholders, and legislators continue to discuss details of a compliance pathway for Emissions Intensive Trade Exposed (EITE) businesses, many of which are important partners with ports. Notably, this bill is considered Necessary to Implement the Budget (NTIB) and can advance at any time if a deal is reached.
Energy Facility Site Evaluation Council (EFSEC) - alive
HB1812, sponsored by Rep. Joe Fitzgibbon (D-West Seattle), would expand the eligibility of projects that are able to opt-in to the EFSEC siting process to include clean energy product manufacturing and renewable natural gas facilities (primarily methane). The bill also makes numerous changes to the process and includes a requirement to engage with local governments where a project is proposed. Ports remain a non-voting member of EFSEC, where applicable. The bill passed the House by a vote of 95-3 on Feb. 13 and had a public hearing on February 17 in the Senate.
Status of Governor Inslee’s decarbonization bills
Only two of Governor Inslee’s priority bills aimed at decarbonizing the building survived the latest cutoff deadline:
Alive - Reducing greenhouse gas emissions in buildings: SB5722, sponsored by Sen. Joe Nguyen (D-Seattle), would create new tiers of performance standards for buildings between 20,000-49,999 square feet. The Department of Commerce is tasked with adopting rules starting in 2030. On February 12, the bill passed the Senate by a vote of 27-22 and had a public hearing in the House on February 17. The bill has been significantly modified since its introduction. A current summary can be found here.
Alive - Strengthening energy codes: HB1770, sponsored by Rep. Davina Duerr (D-Bothell), proposes a ‘net-zero ready’ requirement for all new construction that begins in 2034. This means each project reduces energy use by 80 percent, uses all-electric equipment and appliances, implements electrical panel capacity and wiring for solar panels, and incorporates electric vehicle charging and battery storage. Additionally, this bill would allow local jurisdictions to adopt a new statewide ‘reach code’ for residential construction. On February 12, the bill passed the House by a vote of 51-47 and had a public hearing on February 17 in the Senate.
Dead – Clear authority for publicly-owned electric utilities to engage in targeted electrification/fuel switching (HB1767) and modifying the regulation of gas companies to achieve reductions in greenhouse gas emissions (HB1766).
PORT OPERATIONS & GOVERNANCE
Voting Rights Act (VRA)
E2SSB5597 was heard in House State Government & Tribal Affairs Committee, where hundreds of individuals signed in either Pro, Con or Other on the bill. WPPA signed in Other, noting concerns for the potential for unexpected costs to ports and concern that all ports would need to go through “pre-clearance” to make changes to their voting process, whether there is an identified problem. We are told legislators are taking comments received into consideration while contemplating amendments to the bill. The bill will need to move out of this committee by Thursday, February 24th to remain alive.
E2SSB5597 makes some notable changes to the Washington voting rights act that passed the legislature in 2018. The bill would allow successful claimants to recover costs up to $50,000 for their expenses (including attorney’s fees), would create a data depository at the UW for VRA information such as best practices, and would require all ports to obtain pre-clearance approval from the state’s Attorney General or Superior Court when making certain changes to voting practices such as when creating at large positions or increasing commission seats from 3 to 5, or redistricting.
Public Meetings
After sitting dormant for more than a month, ESHB1329 was given a hearing in Senate Government & Elections Committee. This compromise bill by Representative Emily Wicks from last session, will require governing bodies to allow public comment at or before regular public meetings, require (if feasible) remote oral testimony and encourage recording of meetings. Local governments, including ports, support this version of the bill.