FROM EXECUTIVE DIRECTOR, JAMES THOMPSON

Today’s legislative report marks the last one for the 2022 Legislative Session—when we write to you next Friday with our final report, we will know the fate of this year’s WPPA legislative priorities. We have early good news this week on our MTCA “fix” bill, which now awaits the Governor’s signature. We have more on this below.

The legislature has eased most of its COVID-19 restrictions, allowing for more legislators and members of the public to assemble. At the same time, the Capital Campus is locking down, preparing for a large demonstration this weekend of possibly several thousand protesters and counter-protestors. The pandemic may be winding down, but social unrest appears more persistent.

TRADE, TRANSPORTATION & INFRASTRUCTURE

The final week for budgets

Supplemental budget discussions are intensifying this week, for the final push to adjourn the session Sine Die on Thursday, March 10th.  As reported last week, there are differences between the two Capital budget proposals that ports are watching.  The House funds the Core CERB program ($42.5M) and the manufacturing shovel-ready site certification program ($7.5M), whereas the Senate does not.  Also, there are differences of individual port and community projects between the two.  We know ports have been weighing in on these and other issues: this is the final opportunity to communicate with your legislators about your capital priorities.

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 passed out of the Senate this week amended. The bill will now return to the House for further consideration.

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 out of the House on a 96-2 vote. It now heads to the Governor for signature.

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. The Senate Ways and Means Committee amended the bill and this week it was voted out of the Senate 27-20. Having now passed both chambers and amended, it will need to be reconsidered in the House to remain viable this session.

Move Ahead Washington transportation package update

The 16-year, $16B Move Ahead WA transportation package entered conference committee this week. After growing pushback from the neighboring states of Oregon, Idaho and Alaska, the House removed the controversial fuel export tax earlier this week and replaced the approx. $2B in lost revenue the lost revenue with a sizable sweep of the Public Works Assistance Account. In response, the Senate has proposed backfilling lost revenue by shifting roughly 45 percent of Model Toxic Control Account (MTCA) funding from state operational and environmental programs to the multimodal transportation account. As proposed, the Senate transfer has no negative impact to remedial action grants funded through the capital account of MTCA. However, both sides are highly motivated to pass the Move Ahead WA package and WPPA will continue to monitor the status of the funding closely.

WPPA continues to voice concerns (which are highlighted below) and work to improve access and funding to important programs. An amendment offered by Rep. Dent to remove the $.07/gal increase in the aircraft fuel tax was not adopted. This tax will provide an additional $3M/biennium for grants to general aviation airports through WSDOT’s Airport Improvement Program. 

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.

·       Use of Revenue for Existing Programs – Ports have strongly supported providing new revenue dedicated for transportation. Move Ahead WA has proposed new revenue but also contemplates using funding from the Public Works Assistance Account an account designed to fund important infrastructure across the state. Trading fund sources without backfilling important infrastructure programs is a bad way to produce new transportation revenue and should be avoided.

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 to be eligible for CCA funding as well.

Port & Local Government funding

Many programs important to ports and our local partners received little to 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 are underfunded in the current proposal. Ports and local governments are often successful in receiving competitive federal grants such as Rebuilding American Infrastructure with Sustainability and Equity (RAISE). WPPA believes ports and our local 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.

Trucking policies

HB1706 has passed both chambers of the legislature this week. The bill requires marine terminal operators and/or ports to provide sufficient restroom facilities for truck drivers that are accessing terminal to pick up or deliver cargo. HB1655, which addresses access of state-managed safety rest areas, also passed the legislature, and was also strongly supported by WPPA to ensure essential workers, including truck drivers, have the necessary facilities to safety do their jobs.

Establishing a bi-state bridge authority

SB5558 establishes a bi-state bridge authority to oversee funding, construction, and operation of non-state-owned bridges. This new governance structure will be instrumental in completing the replacement of the Hood River Bridge and may be important to replacing or constructing other bridges in the future. WPPA supported this legislation

Expanding regional transit authority service zones

In one the most divided votes seen this session, SB5528, passed the House by a 2-vote margin early Friday morning. The bill allows Sound Transit (or another regional transit authority) to develop one or more enhanced service zones and collect additional motor vehicle excise tax within the new zone for additional infrastructure or service improvements. WPPA has not taken a position on this bill.

Hydrogen as a transportation fuel

SB 5910 would increase incentives and enable pathways for the adoption of the use of green electrolytic hydrogen as a transportation fuel. Among other things, the bill establishes the office of renewable fuels and will provide funding allowing Washington to compete for federal funding designed to create and establish clean hydrogen clusters within the state. WPPA supports this bill.

ENVIRONMENT

Good news- Fixing MTCA project delays

The MTCA “fix” bill was voted out of the second chamber, 98-0.  This bill ensures all permits do not have to be in hand to receive grants or loans for remedial action on contaminated properties. The bill awaits a final sign-off and will be forward on to the Governor.

We would like to thank all our port partners for their help to get this bill through the process.  If you worked with specific legislators who lent a hand to get this done, please take a minute to thank them. 

Net Ecological Gain

The Senate Ways and Means Committee did not advance the net ecological gain bill, HB 1117 this week, effectively killing the policy for this 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.

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). The bill, as passed by the Senate, includes 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. On March 3, the bill passed out of the Senate by a vote of 29-20. It will need to go back to the House for concurrence. Click here to read a current summary of the bill.

 Status of Governor Inslee’s decarbonization bills

• 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 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 still remain however there has been extensive collaboration and improvements made to the bill. On March 3, the bill passed out of the House by a vote of 53-45. It will now go back to the Senate for concurrence.

• Alive - Strengthening energy codes: HB1770, sponsored by Rep. Davina Duerr (D-Bothell), has been significantly amended to now only include “reach code” provisions for residential construction which cities, towns, and counties are currently preempted from doing. The Department of Commerce and the State Building Code Council are tasked with developing the “reach code” which will be optional for local governments to adopt. The bill is currently in the Senate Rules Committee and will need to be voted on by March 4 at 5pm to remain alive.

• 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).

Emissions Intensive Trade Exposed (EITE) legislation  

HB 1682, introduced as Department of Ecology request legislation, would establish a compliance pathway for Emissions Intensive Trade Exposed (EITE) businesses as required by the Climate Commitment Act. This bill has still not yet passed a chamber of the legislature, however, is still considered alive and “Necessary to Implement the Budget.” With less than a week remaining in the session, it is unclear if a compromise will occur in time.

Good news – Sustainable funding for the removal of Derelict Vessels

HB1700 passed out of Senate this afternoon with a strong vote of 45-3. The 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. This was the final stop in the legislative process, and now it is transferred to the Governor’s office for his signature. Please take a minute to thank your legislators who helped get this bill through.  

ECONOMIC DEVELOPMENT

.09 Rural Tax Credit Funding

HB1333 would extend the .09 rural tax credit program until 2054.  The bill was voted out of Senate Ways & Means with six “no” votes and placed in the Rules Committee for further action.  A coalition of interest groups, including WPPA, have been working to get this bill onto the floor calendar for a vote by the deadline of this afternoon, March 4, at 5pm.  Because the Rules Committee is not expected to meet again today, it appears the bill is dead again this year.  Despite an amendment adopted in committee that would require the state Auditor’s office to create a searchable website to view county expenditures of this fund, we are told concerns linger about a lack of information of how much is collected in this fund statewide, and what the funds are used for.  Should the bill fail to pass, the coalition of interests have agreed to work on an acceptable reporting mechanism in the interim and bring the bill back again next session.  

SSB5898 by Senator Hawkins would expand the eligible uses of the .09 tax credit program to include workforce housing.  The bill stems from a request of local constituents, the Chamber, cities and others in the Leavenworth and Chelan areas.  This week, the House pulled a package of bills out of Rules Committee, late in the evening, and ran the bill on the floor the next afternoon.  There was opposition to the bill, but not enough to stop it on the floor, as the bill came out of the House 68-28.  Since the House amended the bill, it must go back to the Senate for concurrence.  WPPA continues to oppose it.  This bill has gained media attention, which you can read here.