Friday Legislative Report - March 12, 2021
BACKGROUND
We turned a corner on the 2021 legislative session this week. All bills, with the exception of those necessary to implement the budget, had to be voted out of their chamber of origin by 5pm Tuesday, March 9th. The House passed 220 bills and the Senate, not far behind, passed 208. Despite the challenges of a COVID-induced remote session and a 30 percent drop in the number of bill introductions, the House’s pace for passing bills is only slightly below historical norms, and on par for the Senate.
Following cut-off, our attention shifted to Washington D.C. where the House of Representatives passed the Senate’s version of the $1.9T American Rescue Plan. President Biden signed it into law on Wednesday. In addition to providing $1,400 direct payments to individuals that meet certain income criteria, the legislation provides over $7B in stimulus and other payments to Washington state, its cities, counties, and other local governments.
Funding to cities and counties will be in the form of direct appropriations. The Governor and legislators, however, will have the opportunity to weigh in on how much of the remaining funding will be directed. Ports should note the estimated $650M dedicated to “other non-county governments” as well as expenditures for dedicated capital funds. Beyond funding allocated to the state, the plan also allocates over $7B nationally for broadband.
We are pleased to have Rick Agnew from Van Ness Feldmen joining WPPA on Thursday March 18th at noon to provide details about what’s in the American Rescue Plan, and what may be next on the horizon in Washington DC. Register now here.
Back in Olympia, we expect to receive the updated revenue forecast next Wednesday and each chambers’ legislative budget proposals shortly thereafter. Transportation continues to be a key topic of discussion this session and we’d like to thank Representative Jake Fey, Chair of the House Transportation Committee and Representative Joe Fitzgibbon, Chair of the House Environment & Energy Committee for joining us on March 11th to talk about their proposed legislation, which links state carbon policy with transportation revenue conversations. We have a summary of the meeting on our blog.
To help make sense of the five different funding plans which have been proposed this session, WPPA has produced a short video describing each proposal including port-specific funding opportunities. In addition to the video we have also produced a side-by-side infographic which helps to compare and contrast the different proposals.
MODEL TOXICS CLEAN-UP ACT (MTCA)
The next state revenue forecast will be released on Wednesday, March 17th. Budget action will ramp up following its release. Stay tuned for developments and stay in touch with your legislators.
BROADBAND
HB 1336, a bill that creates unrestricted authority for public entities to provide telecommunications services to end users (aka, retail authority), received overwhelming support in public hearing in the Senate Environment, Energy & Technology Committee. Despite this showing, the bill lacks support from Committee Chair Senator Reuven Carlyle and is not scheduled for a vote. A bill with a more restricted version of this authority, SB 5383, did pass out of this committee and is schedule for public hearing and executive session in the House Committee on Community & Economic Development next week. A comparison of these bills can be found here: https://app.leg.wa.gov/committeeschedules/Home/Document/231209#toolbar=0&navpanes=0
Two bills that are not identical, but both designed to facilitating the installation of broadband along state highway rights-of-way continue to move in this session. The Senate version, SB 5439, received a public hearing in the House Transportation Committee this week. The House version, HB 1457, is scheduled for public hearing in the Senate Transportation Committee next week.
TAX INCREMENT FINANCING (TIF)
This past week was an important milestone for the tax increment financing issue. HB 1189 was heard in the Senate Business, Financial Institutions & Trade Committee, with more than 50 parties weighing in. Many stakeholders, including some ports, signed in pro, while other ports signed in con. Two developments came from the hearing: 1) the ports with concerns indicated they wanted to keep working on the language to try to find resolution, and 2) the committee chair agreed to delay the vote on the bill until later next week to allow time for negotiations.
The main sticking point seems to be centered around the concern about the potential for TIF districts to cover large areas in multiple locations rather than encouraging TIF districts to be targeted and focused. While there are numerous sideboards in the bill designed to ensure the districts address specific needs, the ports are asking for additional controls, or “guardrails.” The TIF Coalition, WPPA, and ports are continuing to discuss ways to address these concerns.
OTHER KEY PRIORITIES
Aviation
SB 5031 has made its way to the House Transportation Committee where it will receive a hearing next Monday. The bill would make the Community Aviation Revitalization Loan Program (CARL) permanent. It’s companion, HB 1030, also passed out of the House on a unanimous vote but has yet to be scheduled for a hearing in the Senate. Also scheduled for a hearing next Monday but in the Senate Transportation Committee is HB 1198 which extends the timeline for the Aviation Coordinating Commission to complete its work. WPPA is also watching HB 1379 which would establish a unpiloted aircraft system coordinator with WSDOT aviation. This bill will also be heard in committee on Monday.
Public Works
SB 5333 did not make it out of the Senate prior to cut-off. However, WPPA will continue to watch this bill as its budget implications could mean it still could move this session. The bill would make certain contractual provisions such as COVID-related force majeure, unenforceable.
Rail Safety and Labor
WPPA will testify with concerns on HB 1418 during Senate Transportation Committee testimony on Monday. The bill is designed to address rail safety recommendations identified during an interim JTC study related to the 2017 Amtrak 501 derailment. The change in scope related to the Utilities & Transportation Commission’s oversight role continues to be unclear. WPPA continues to track SB 5065 which was voted out of the Senate just prior to cut-off on Tuesday. The bill continues to extend benefits beyond those afforded by the Paid Family & Medical Leave passed in 2018. WPPA will seek an amendment to the bill exempting rail operators with fewer than 50 employees. The bill has not yet been scheduled for a hearing in the House.
Port Automation
WPPA testified Wednesday on SB 5026 when it received a hearing in the House Local Government Committee. The bill prohibits ports with container operations from making investments in zero or near-zero emission infrastructure if that equipment is also automated. We continue to express our concerns with bills like this which seek to restrict ports’ authority. The bill passed out of committee on a party line vote this morning.
ESSB 5141 Implementing the Recommendations of the Environmental Justice Task Force
The bill was amended and approved along party lines 28-21. As previously note, the bill establishes an environmental justice council assigned specified advisory and oversight responsibilities for covered agencies' implementation of environmental justice activities. A significant floor was adopted that states, “the role of the council is purely advisory and council decisions are not binding on an agency, individual, or organization.”
The bill is being heard in the House Environment and Energy Committee this morning.
E3SHB 1091 Clean Fuel Standard (previously Low Carbon Fuel Standard)
The bill was heard by the Senate Environment, Energy and Technology Committee on Wednesday. Testimony in the committee split along familiar lines with environmental interests and businesses interested in participating the credit market supporting the bill. Broadly, opposition came from highway users concerned the policy would inhibit further transportation investment packages, agricultural interests, and petroleum interests.
The House attempted to address concerns about Washington’s environmental review process by establishing a program to identify least-conflict priority sites for low-carbon transportation fuel projects. The Department of Ecology is required to periodically convene specified parties to discuss mitigation of significant likely environmental impacts associated with low-carbon transportation fuel projects.
WPPA is not convinced the added siting provisions solve the state’s problematic environmental review process. We continue to press for more substantial changes.
SSB 5126 – Washington Climate Commitment Act
The bill will be heard on Monday in the Ways and Means Committee and is scheduled for executive session on Thursday. Exempt from bill cutoffs because of its budget implications, the bill resides in the Senate Ways and Means Committee.
WPPA is considering how the bill might be amended to streamline environmental review of new projects covered by the act.
SHB 1193 Dredged Material Disposal
The bill passed the House unanimously and will be heard in the Senate Environment, Energy and Technology Committee on Wednesday.
The bill resolves a conflict between the state Shoreline Management Act and federal law that requires the U.S. Army Corps of Engineers to maintain navigation channels.