Friday Legislative Report - April 16, 2021
BACKGROUND
The session passed a major milestone on Sunday as the cutoff for moving all bills not concerning state revenue came and went. As is typical of this moment in the legislative process, activity and debate intensified as members and their constituencies worked to keep issues important to them alive. Some survived this stage, but many did not. Most of those fortunate to have bills still active must now turn their efforts to reconciling changes made to bills in each chamber.
Each cutoff narrows the legislature’s focus, and now their work is directed to budgets and bills necessary to implement the budget. With the few remaining days of session, the legislature will bargain on a substantial scale designed to construct these budgets and far-reaching funding efforts to support them. Expect debate on carbon pricing mechanisms and capital gains tax to dominate these attempts.
Are you following the chances of a transportation package passing this session? We’ve put together a vlog (video blog) deep dive on the subject with WPPA’s Senior Director of Environmental Affairs Gerry O’Keefe, who covers the three bills- Environmental Justice, Clean Fuel Standard, and Cap-and-Trade.
MODEL TOXICS CLEAN-UP ACT (MTCA)
The MTCA remains in good shape. The team effort put in by port districts contacting their local legislators and advocating for the preservation of these funds directly influenced the win this session. Thank you all for your work.
TRANSPORTATION
Action on money for transportation progressed slowly this week, at a pace that suggests insufficient time remains in this legislative session to reach agreement. The Senate Transportation Committee heard a trio of bills which make up Forward Washington and proceeded to vote them out of committee along a party line vote. Concerns about some of the more than two dozen revenue sources remained, including the extension of a $50M per biennium influx of funding from the hazardous substance tax, a provision designed to sunset upon passage of new revenue for transportation.
Meanwhile, a letter signed by 17 members from the House continued to show the deep divide on carbon pricing, a significant funding source for transportation. The sizable number of House Democratic signors continued to show support for a carbon fee versus cap-and-trade legislation, which was narrowly voted out of the Senate chamber. Significant division like this reinforced the likelihood that we will not see new revenue for transportation this session.
BROADBAND
In a year where broadband has attracted significant attention, SB 5383 and HB 1336 have become lightning rods in the question of how Washington will address access to this service. On Sunday, the bills became the big debate in the session’s final minutes allotted to considering policy bills. Both bills expand authority for Ports and PUDs but differ significantly in that the Senate version limits public retail authority to projects in areas unserved by broadband and the House version applies no restriction. Following vigorous debate, both bills passed and are now subject to concurrence action. Questions regarding how these two bills might concurrently amend the same statute also remain open.
A bill designed to facilitate the installation of broadband along state highway rights-of-way, HB 1457, passed out of the Senate and received concurrence in the House this week. It now awaits transmittal to the Governor for signature.
OTHER KEY PRIORITIES
Aviation
With an hour or two to spare prior to cut-off, the House voted in unanimous support for SB 5031. The bill would make the Community Aviation Revitalization Loan Program (CARL) permanent. The bill is onto the Governor for his signature. We continue to look for the conference report on the Capital Budget to see the level of funding provided for the program. HB 1198 appears to have died on the Senate floor calendar. The bill would have extended the timeline for the Aviation Coordinating Commission to complete its work. WPPA is working to determine if it would be possible to extend the timeline with a budget proviso. With no intervention, WSDOT must submit the report with a preferred site or facility for a commercial airport by January 2022.
Public Works
The Senate concurred with changes made in the House putting SB 5032 on a pathway to the Governor. The bill extends the sunset for ports and other public owners to use alternative public works procurement processes when constructing capital projects. Because it was amended, the bill must return to the Senate for a concurrence vote.
Rail Safety and Labor
Two bills WPPA had expressed concerns with did not advance in time for cut-off and were considered dead for this legislative session. SB 5065 would have established an additional leave policy for railroad workers in Washington state. HB 1418, would have implemented recommendations to improve railroad safety. HB 1418 was substantially improved from earlier versions and it may return as a budget proviso.
Local government bills
This past Sunday was another important deadline in the legislative process: bills moved out of the opposite chamber (except bills necessary to implement the budget) or they are considered dead. While legislators were working through bills with lots of amendments and wrangling for votes, a few bills were left behind at the deadline. For WPPA, bills relating to open government and the .09 sales tax for rural public facilities were in the mix of those bills left on the table.
HB 1056, which we have reported on in prior Legislative Reports, would have given local governments the ongoing authority to meet remotely during declared emergencies. While this bill would not affect the current emergency relating to the pandemic, it would have updated state law for future emergencies. WPPA has been working with other local governments to get this bill passed. For now, the bill is dead, but since this is a two-year process, it can be revived quickly at the beginning of next session.
The other open government bill that died was ESHB 1329, a bill that would have required local governments to provide an opportunity for remote testimony and would have placed more requirements around taking testimony before final action. In addition, the bill encouraged public agencies to record and post recordings of meetings online. The bill was a compromise between local government groups and legislators but failed to pass the final hurdle on the Senate floor. WPPA expects this bill to be revived next session.
SHB 1333 would have extended the use of local sales taxes for public facilities in rural counties from 2034 to 2054 and would have allowed counties previously eligible to continue use of the funds. Ports receive a share of this money from certain counties to finance economic development activities and it is considered an important revenue stream for this purpose. WPPA and other stakeholders will work to pass the bill next session.
ESSB 5141a Implementing the Recommendations of the Environmental Justice Task Force
The bill was amended by the House and sent back to the Senate for concurrence.
The following detail provide some context for the scope of the debate. A major sticking point has been the definition of “significant agency actions.” The House included a revised definition for which covered agencies (including the Departments of Transportation and Ecology) must conduct an environmental justice assessment. The actions now include:
(1) significant legislative rules;
(2) new grant or loan program development and adoption;
(3) the award by a covered agency of a capital project, grant, or loan of at least $12 million or a transportation project, grant, or loan of at least $15 million;
(4) the submission of agency request legislation to the Office of the Governor or the Office of Financial Management (OFM) for approval; and
(5) any other actions deemed significant by a covered agency.
It remains unclear whether the fate of the bill is tied to CFS, Cap and Trade, and the Transportation Budget.
E3SHB 1091 Clean Fuel Standard (previously Low Carbon Fuel Standard)
The bill awaits amendment or concurrence in the House. Five senators, including Mullet, Hasegawa, Cleveland, Van De Wege, and Conway have signed a letter to conferees that include a list of provisions the bill must retain to secure their votes. These provisions include:
Ensure that this policy does not dramatically increase the cost of fuel, which is a burden that will likely fall on consumers and disproportionately impact those who can least afford it.
Ensure that Washington State benefits from the jobs created by the additional money that will be spent by consumers on low carbon fuels. This includes new biofuel facilities in Washington and an assurance that some of the crops used to make those fuels come from our state.
The bill must maintain a link to the transportation package.
Maintain the legislative review beyond the 10% threshold so that elected officials can weigh the efficiency of the policy after implementation.
SSB 5126 – Washington Climate Commitment Act
The bill was heard in the House Environment Committee Wednesday. Testimony fell along similar lines in the House as it had in the Senate, with elements of the environmental justice community objecting vehemently to the Cap-and-Trade mechanism in favor of a carbon tax. One notable difference was high profile tribal chairs and Black Lives Matter representatives who testified in support of the bill.
The environmental justice debate continues apace in the House with two freshman representatives dropping a carbon tax bill this week. The divisions are as obvious as their implications for a transportation package this session.
SHB 1193 Dredged Material Disposal
The House will concurred with changes made in the Senate. The bill is on its way to the Governor for signature. Another win for port districts this session.
Environmental Review Proviso
In a late breaking development, a proviso directing the Department of Ecology to convene stakeholders to develop recommendations for changes to the state’s statutes has emerged. WPPA is working with advocates in the House, the Governor’s Office, organized labor, and the Senate to see it included in the final package.