Friday Legislative Report - February 25 , 2022
BACKGROUND
Washington’s money and how to spend it—legislators this week were concerned with the money to make things run as the Senate and House both released proposed operating, supplemental capital, and transportation budgets for the next biennium. These proposals are on a fast track to pass out of their respective committees by the end of the week—thus beginning the real negotiations, all leading up to the grand finale on March 10 when final versions of the budgets are due.
As you may recall from our blog last week, the revenue forecast was extremely positive, which means that budget writers have lots of money to work with to fund projects and programs. That in turn means that there’s a lot for ports to like in these budgets—WPPA still has some concerns about certain aspects of these proposals, which we spent our week communicating to the legislature about. To find out more about specific bills, read on.
TRADE, TRANSPORTATION & INFRASTRUCTURE
Action Alert: CERB funding needs your help
The House and Senate each released their version of a proposed supplemental Capital Budget; for the CERB program, there is a clear winner. Representative Tharinger put $42.5M into the core CERB program, $25M into broadband funding, and $7.5M into manufacturing site certification planning grants through CERB, for a total of $75M. This is a significant investment in infrastructure funding for ports across Washington. The Senate supplemental Capital Budget proposal did not invest in Core CERB or the site certification, but they did put $25M into CERB broadband funding.
CERB staff report that they have a pipeline of potential projects of nearly $400M, a majority of which are port projects. We support the investment in core CERB and the site certification planning grants and are asking for the House proposal to prevail.
Please communicate with Senators Frockt and Mullet and other members of the Ways & Means Committee that your port supports the House proposal to invest $42.5M in core CERB and $7.5M in manufacturing site certification. And be sure to thank Representatives Tharinger and Steele on the House Capital Budget Committee for their proposal. We want to make sure the leaders involved in the final negotiations hear from the port community.
Broadband 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. This week the bill moved out of the Senate Environment, Energy & Technology Committee on executive action.
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 this week moved out of the Senate Environment, Energy & Technology Committee on executive action.
Concerning 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 on a 49-0 vote and this week passed through the House Committee on Community & Economic Development on executive action.
Move Ahead Washington transportation package
The 16-year, $16B Move Ahead WA transportation package continued to move forward this week with hearings and executive action in the House Transportation Committee on both the revenue (HB2119) and the spending bill (HB2118). The Senate has woven the spending bill of its Move Ahead WA proposal into its supplemental transportation budget (SB5689) creating some uncertainty around which projects would be included over the 16 years of this proposal. Both chambers are expected to spend time today and over the weekend advancing components of both the new revenue and supplemental transportation bills.
Outside of the legislature, concerns over the most controversial part of Move Ahead WA, the fuel export tax, have grown louder. Alaska introduced a bill imposing a tax on crude oil exports to Washington. Republican legislators from Oregon vowed to leave their appointed positions on the Joint Oregon-Washington Legislative Action Committee formed to oversee the Interstate Bridge Replacement Program should the export tax become law. WPPA continues to voice concerns (which are highlighted below) and is working to improve access and funding to important programs. One such amendment adopted in SB5974 would allow FMSIB to create an at-grade crossing program and provided $5M in funding to advance the creation of road/rail grade separation projects. This is particularly useful as Senator Cantwell was instrumental in creating and funding the Grade Crossing Elimination program in the Infrastructure Investment & Jobs Act. More information about Move Ahead WA can be found below.
Move Ahead WA Infographic
Transportation Thursday 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. Ports and local governments are often successful in receiving competitive federal grants such as the Rebuilding American Infrastructure with Sustainability and Equity (RAISE). 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.
ENVIRONMENT
Funding the removal of derelict vessels
HB1700 was heard this week in Senate Ways & Means and is now scheduled for executive action February 28. The bill continues to be 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 moves to Ways & Means
The Senate Housing & Local Government voted HB1117 out of committee yesterday on a party-line vote. The amended bill makes only modest changes, requiring compensatory mitigation apply to all facilities, activities and projects falling under the Shoreline Management Act. WPPA supports the goal of improving salmon stocks, but this bill modifies local permitting in a way that creates greater uncertainty and cost around mitigation strategies necessary to create net ecological gain. A new term introduced in this version of the bill, “properly functioning watershed conditions”, becomes a catch-all that could affect in water, shoreline and near-shore activities. The bill is scheduled for a hearing in Senate Ways & Means tomorrow and is scheduled for possible executive action on Monday.
Fixing MTCA project delays
SB5895, concerning timing restrictions for remedial action grants to local governments, has passed through the Senate on a 49-0 vote and received public hearing and executive action in the House Capital Budget Committee, which also voted unanimously to move the bill. Testimony and support from Adam LeMieux (Port of Everett) Mike Hogan (Port of Bellingham) and Sean Eagan (Port of Tacoma and NWSA) have been pivotal in this bill’s rapid movement this week and throughout session.
We are reporting on the following bills relating to the Climate Commitment Act and legislative interest in reducing greenhouse gas emissions, so that ports can follow the progression of the discussion--WPPA has not taken a position on these bills.
Emissions Intensive Trade Exposed (EITE) legislation
A new version of HB 1682 was published Thursday night, and scheduled for a public hearing on Friday, February 25. This bill was introduced as Department of Ecology request legislation and would establish a compliance pathway for Emissions Intensive Trade Exposed (EITE) businesses as required by the Climate Commitment Act. While this bill has been deemed Necessary to Implement the Budget, therefore not subject to cutoff deadlines, it has not yet passed a chamber of the legislature and will need to quickly progress through the process if stakeholders can agree to a version moving forward.
Reducing greenhouse gas emissions in buildings
SB5722, sponsored by Sen. Joe Nguyen (D-Seattle), would create new tiers of performance standards for buildings and tasks the Department of Commerce with adopting rules starting in 2030 to implement the program. As originally introduced, the bill faced significant opposition from stakeholders, including the Association of Washington Business (AWB) and National Association for Industrial and Office Parks (NAIOP). Both AWB and NAIOP have shifted to the position of other commenting that some concerns remain, however, there has been extensive collaboration and improvements made to the bill. The bill is scheduled for a public hearing on February 25. Click here to see a current summary of the bill.
Strengthening energy codes: HB1770, sponsored by Rep. Davina Duerr (D-Bothell), was significantly amended this week as it continues to move through the process. As introduced, the bill would have proposed a “net-zero ready” requirement for all new construction, meaning an increased use of all-electric equipment and appliances, implements electrical panel capacity and wiring for solar panels, and incorporates electric vehicle charging and battery storage. This provision was removed by the Committee on Wednesday, and now only contains “reach code” provisions for residential construction which cities, towns, and counties are currently preempted from doing. The bill is currently in the Senate Rules Committee. Click here to see a current summary of the bill.
Energy Facility Site Evaluation Council (EFSEC)
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). Most recently, the bill was amended to include requirements for notifying and consulting with federally recognized tribes, clarifies that green hydrogen carriers and certain biofuels facilities can opt-in to the EFSEC process. The bill is scheduled for a public hearing on February 26 and a vote out of Committee on February 28. Click here to read a current summary of the bill.
PORT OPERATIONS & GOVERNANCE
Voting Rights Act (VRA)
After an extensive hearing, the House State Government & Tribal Affairs Committee adopted a striking amendment on E2SSB5597 and passed the bill on a party line vote. WPPA signed in Other on this bill and communicated to committee members two concerns: the potential for unexpected extensive costs to port districts, and the requirement that all ports would need to go through “preclearance” to make changes to their voting process, whether there was an identified problem. The striking amendment removed ports from any preclearance requirements and somewhat narrows the cost recovery mechanism for persons or organizations who challenge an election system under the VRA. This is good news for port districts, and we thank the legislators who took the time to listen and evaluate our concerns.
Public Meetings and Posting Requirements
Two bills from last session (ESHB1329 and ESHB1056) pertain to remote meetings, public testimony, and online posting. These two similar bills were amended into one document and passed out of the Senate Government & Elections Committee. The compromise bill will allow public agencies to hold meetings remotely during declared emergencies and will be require them to provide an option for the public to listen remotely. The bill also requires agencies to allow public comment before or during meetings where final action is taken. Public agencies may share websites or have their websites hosted by other public agencies, and in doing so will be required to post meeting notices during emergencies. In addition, the bill encourages public agencies to provide remote access to public meetings and encourages agencies to record meetings and make them available online. The compromise language is supported by WPPA together with several local government associations and represents a good faith effort in coming up with language that solves a problem raised by the prime sponsors as well as provides tools for public agencies during emergencies.
ECONOMIC DEVELOPMENT
.09 Rural Tax Credit Funding
There are two bills moving through the session this year relating to the .09 program. HB1333 received a final committee hearing this week and is scheduled for executive action on February 28th. This is the bill that would extend the .09 program until 2054. The proposal is receiving support and we are optimistic we can get this bill across the finish line.
Senator Hawkins introduced the second .09 bill, which was heard, amended, and passed out of House Finance Committee this week. The bill adds affordable workforce housing as an eligible use for the funds. The bill stems from a request of local constituents, the Chamber, cities and others in the Leavenworth and Chelan areas. WPPA conveyed to the prime sponsor the importance of this locally collected and locally utilized economic development tool, and ports do not support expanding the use of these modest funds. WPPA suggested amending the bill to take out the word “facilities” thereby limiting it to housing infrastructure only, or limiting it geographically to a particular legislative district, or placing a sunset provision on the entire bill. Unfortunately, these were not accepted.
In addition, WPPA communicated with members of the Finance Committee about port concerns and quickly learned that a majority on the committee was supportive of this proposal. Legislators are seeking solutions to the housing crisis, specifically relating to finding a place for the workforce to live. The committee adopted one amendment that will restrict the use of the funds to public or non-profit housing providers, rather than private housing providers. WPPA is aware of the variety of opinions on this issue. We will continue to work with our colleagues in Olympia to determine whether there are other options.
Infrastructure Bank
The House continues to move Senate Joint Memorial 8006 that requests the US Congress to pass the Infrastructure Act of 2021 or similar legislation. The Act would establish a government corporation to facilitate financing of infrastructure projects to public and private entities. The bill is now in House Rules Committee.