This week the legislature passed two major cutoffs, on Monday, February 28th was the opposite house fiscal cutoff, and Friday, March 4th was the opposite house floor cutoff. Legislators worked long hours through the weekend to ensure priority legislation made it through its opposite chamber fiscal committee. Both chambers then worked to pass bills off the floor in advance of the Friday cutoff. The last bill must begin floor debate by 5:00 PM on cutoff day in order to be considered.
Now that all of the major cutoffs have passed, the focus will shift to supplemental budget negotiations. On Monday, House and Senate Republican and Democratic Leaders gathered for their respective media availability where they answered questions from the media and discussed their various opinions on the supplemental budget proposals. You can watch those here; Legislative Republican Leadership Availability, Legislative Democratic Leadership Media Availability. House and Senate Budget writers will spend the next few days negotiating the final 2022 Supplemental Operating, Capital, and transportation Budgets and we expect to see those early next week.
Representatives met on the floor on Tuesday to discuss the Democratic transportation package “Move Ahead Washington” which intends to spend $16.8 billion dollars over the next 16-years (SB 5974). Original funding for this legislation intended to obtain roughly $2 billion from a six-cent export tax on fuel. The export tax got significant push back from surrounding states like Oregon, Alaska, and Idaho as well as many in-state stakeholders. That funding source has been removed and replaced with an ongoing transfer from the public works account over the next 15 years. On Tuesday, the legislation was voted out of the House on party lines (54-43). On Wednesday the Senate voted not to concur with the changes made in the House which will likely push the proposal into a conference where House and Senate transportation leaders will negotiate a final package.
On Monday, Governor Jay Inslee announced relaxing indoor mask requirements during a press release due to the significant decrease in Covid-19 hospitalizations in Washington. Starting March 12th, masks will no longer be required unless inside a health care, long-term care, or correctional facility.
Legislators will continue to be busy during the final week of the 2022 legislative session as they reconcile differences made to legislation while in the opposite chamber, finalize budgets, and work necessary to implement the budget (NTIB) legislation. Bills that passed out of both chambers without having changes made to them will go directly to the governor’s desk for him to sign into law. However, bills that were amended in the opposite chamber will need to go back to the chamber of origin for a concurrence vote. The session is scheduled to end on Thursday, March 10th.
Bills of Interest:
HB 1846 – Providing a tax preference for rural and nonrural data centers
This bill includes Representative Boehnke’s tax credit for CleanTech issues. This legislation was pulled from Rules to the House floor on March 4th and was voted out of its originating chamber on Thursday, March 4th with a vote of 68-30. The bill now moves to the Senate for further consideration.
SB 5842 – Concerning state laws that address climate change
This legislation was pulled onto the House floor for a debate on Wednesday, March 2nd. The bill passed out of the House with a vote of 81-15. Due to amendments made in the House, legislation will now go back to the Senate for a concurrence vote on changes.
HB 1280 – Concerning greenhouse gas emissions reductions in the design of public facilities
This legislation was introduced during the 2021 legislative session and made it to Senate Rules. The bill passed out of the Senate on Tuesday, March 1st, with a vote of 29-20. It is now on its way to the Governor’s office to be signed into law.
HB 1768 – Updating definitions applicable to energy conservation projects involving public entities
This legislation intends to require the Department of Enterprise Services to issue guidelines for cost-effectiveness determinations. This legislation was pulled onto the floor for a vote on Wednesday, March 3rd. It passed out of the Senate with a vote of 29-18. No changes were made to the bill in the Senate so this bill will move to the Governor’s Desk for signature before becoming law.
HB 1770 – Strengthening energy codes
This legislation implements requirements for cities, towns, and counties to enforce the Washington State energy code for residential buildings or adopt the statewide residential reach code, and requires the State Building Code Council to adopt a statewide residential reach code.
This bill was passed to Rules on the 24th, and then placed on second reading by the Rules Committee on February 25th. Though this bill did not pass out of the Senate by Friday’s (March 4th) cutoff, there is a fiscal note attached to it meaning it could still be alive.
SB 5722 – Reducing greenhouse gas emissions in buildings
In its original form, this legislation requires the Department of Commerce to adopt energy management benchmarks for tier 2 covered buildings, evaluate benchmarking data, and adopt rules for performance standards. The House vehicle of this legislation, HB 1774, died after the first cutoff of this session.
During the bill’s executive session held by the House Appropriations Committee on Monday, February 28th, at 10:00 AM, an amendment proposed by Representative Ormsby was adopted. The amended legislation was voted out of House Appropriations and referred to Rules with a do pass recommendation (19-14).
On Thursday, March 3rd, the bill was pulled from Rules to the House floor. There were five amendments for consideration; four offered by Representative Dye and one by Representative Hackney. Two of Rep. Dye’s amendments were withdrawn while the other two were not accepted. Representative Hackney’s amendment was adopted. The bill will now move back to the House for a concurrent vote on changes made in the Senate.
SB 5678 – Concerning energy transformation, nonemitting electric generation, and renewable resource project analysis and declaratory orders
This legislation, sponsored by Representative Short, would allow an investor-owned utility to petition the Utilities and Transportation Commission for a declaratory order to determine whether certain types of projects meet Clean Energy Transformation Act standards (per staff report).
This legislation moved to Rules on Tuesday, March 1st, and then was pulled onto the House floor on Friday, March 4th. This bill had bi-partisan support and was voted out of the House by a vote of 97-1. It now moves to the Governor’s desk to be signed into law.
SB 5910 – Accelerating the availability and use of renewable hydrogen in Washington state
This legislation, sponsored by Senator Carlyle, establishes the Office of Renewable Fuels as well as the Renewable Fuels Accelerator Account. It also aims to assist in securing federal funding for clean hydrogen in our state, and authorizes municipal and public utility districts to produce, use, sell, and distribute renewable and electrolytic hydrogen. After being voted out of the House Environment and Energy Committee on Thursday, February 24th with an adopted amendment sponsored by Representative Ramel, this bill moved to House Appropriations for a public hearing on Friday, February 25th.
House Appropriations held executive session on this legislation on Monday, February 28th. In appropriations, two changes were made which included Representative Fitzgibbon’s striker and an amendment offered by Representative Ormsby. This legislation will move back to the Senate for a concurrence vote on changes that the House made before it can continue to the Governor’s desk.
HB 1766 – Modifying the regulation of gas companies to achieve reductions in greenhouse gas emissions
This legislation, sponsored by Representative Ramel, was a Governor’s Office bill. The bill was last heard on January 28th during a public hearing in front of the House Environment & Energy Committee. It is likely that this legislation is dead.
HB 1767 / SB 5666 – Concerning the authority of publicly owned electric utilities to engage in targeted electrification through the adoption of plans that establish a finding that utility outreach and investment in the conversion of its customers’ end use equipment from fossil fuels to electricity will provide net benefits to the utility
This legislation, sponsored by Representative Ramel, was a request by the Governor’s Office. The Senate vehicle of this legislation did not move past its policy committee public hearing and is dead for the session. The House vehicle of the bill, however, was referred to House Rules on January 25th. As it did not move out of its originating Chamber, it is likely dead for the session.
Hearings of Interest:
House Finance – 3/7/2022 8:00 AM
Public Hearing:
- SSB 5799 – Modifying the application of the workforce education investment advanced computing surcharge to provider clinics and affiliated organizations. (Remote testimony.)
- E2SSB 5755 – Authorizing certain cities to establish a limited sales and use tax incentive program to encourage redevelopment of underdeveloped lands in urban areas. (Remote testimony.)
- ESSB 5459 – Creating a business and occupation tax deduction for persons conducting payment card processing activity. (Remote testimony.)
- ESB 5901 – Concerning economic development tax incentives for targeted counties. (Remote testimony.)
- ESB 5849 – Concerning tax incentives. (Remote testimony.)
- ESSB 5980 – Providing substantial and permanent tax relief for small businesses to mitigate structural deficiencies in Washington’s business and occupation tax and lessen long-term negative economic consequences of the pandemic that have disproportionately impacted small businesses. (Remote testimony.)
- ESB 5309 – Providing a sales and use tax exemption for adult and baby diapers. (Remote testimony.)
Executive Session:
- SSB 5799 – Modifying the application of the workforce education investment advanced computing surcharge to provider clinics and affiliated organizations.
- E2SSB 5755 – Authorizing certain cities to establish a limited sales and use tax incentive program to encourage redevelopment of underdeveloped lands in urban areas.
- ESSB 5459 – Creating a business and occupation tax deduction for persons conducting payment card processing activity.
- ESB 5901 – Concerning economic development tax incentives for targeted counties.
- ESB 5849 – Concerning tax incentives.
- ESSB 5980 – Providing substantial and permanent tax relief for small businesses to mitigate structural deficiencies in Washington’s business and occupation tax and lessen long-term negative economic consequences of the pandemic that have disproportionately impacted small businesses.
- ESB 5309 – Providing a sales and use tax exemption for adult and baby diapers.
Senate Ways & Means – 3/7/2022 5:00 PM
Public Hearing:
- HB 1641 – Restoring the business and occupation and public utility tax exemption for custom farming and hauling farm products. (Remote testimony.) (If measure is referred to committee.)
- 2SHB 1814 – Expanding equitable access to the benefits of renewable energy through community solar projects. (Remote testimony.)
- ESHB 1846 – Providing a tax preference for rural and nonrural data centers. (Remote testimony.) (If measure is referred to committee.)
- ESHB 1914 – Updating and expanding the motion picture competitiveness program. (Remote testimony.) (If measure is referred to committee.)
- 2SHB 1918 – Reducing emissions from outdoor power equipment. (Remote testimony.) (If measure is referred to committee.)
- 2SHB 1988 – Concerning tax deferrals for investment projects in clean technology manufacturing, clean alternative fuels production, and renewable energy storage. (Remote testimony.) (If measure is referred to committee.)
- SHB 2018 – Creating a three-day shop local and save sales and use tax holiday to benefit all Washington families for certain items $1,000 or less during the month of September. (Remote testimony.) (If measure is referred to committee.)
- SHB 2099 – Improving tax administration by waiving penalties and imposing interest in certain situations involving delayed tax payments, and by extending a statute of limitations period for certain egregious tax crimes. (Remote testimony.)
- HB 1990 – Concerning a sales and use tax deferral for projects to improve the state route number 167 and Interstate 405 corridor. (Remote testimony.) (If measure is referred to committee.)
Executive Session
- SB 5983 – Concerning untested and unregulated cannabinoid products.
- ESHB 2124 – Concerning extending collective bargaining to legislative employees.
- SSB 5543 – Concerning a zero-emission landscaping equipment incentive.
- SB 5967 – Imposing a state climate resiliency and mitigation surcharge on large financial institutions financing the global fossil fuel industry while recognizing the financial institution industry’s efforts to address climate change.
Senate Ways & Means – 3/9/2022 12:00 PM
Executive Session:
- HB 1641 – Restoring the business and occupation and public utility tax exemption for custom farming and hauling farm products. (If measure is referred to committee.)
- 2SHB 1814 – Expanding equitable access to the benefits of renewable energy through community solar projects.
- ESHB 1846 – Providing a tax preference for rural and nonrural data centers. (If measure is referred to committee.)
- ESHB 1914 – Updating and expanding the motion picture competitiveness program. (If measure is referred to committee.)
- 2SHB 1918 – Reducing emissions from outdoor power equipment. (If measure is referred to committee.)
- 2SHB 1988 – Concerning tax deferrals for investment projects in clean technology manufacturing, clean alternative fuels production, and renewable energy storage. (If measure is referred to committee.)
- SHB 2018 – Creating a three-day shop local and save sales and use tax holiday to benefit all Washington families for certain items $1,000 or less during the month of September. (If measure is referred to committee.)
- SHB 2099 – Improving tax administration by waiving penalties and imposing interest in certain situations involving delayed tax payments, and by extending a statute of limitations period for certain egregious tax crimes.
- HB 1990 – Concerning a sales and use tax deferral for projects to improve the state route number 167 and Interstate 405 corridor. (If measure is referred to committee.)
Important Dates:
Feb 3 – House of Origin Policy Cutoff
Feb 7 – House of Origin Fiscal Cutoff
Feb 15 – House of Origin Floor Cutoff
Feb 24 – Opposite House Policy Cutoff
Feb 28 – Opposite House Fiscal Cutoff
March 4 – Opposite House Floor Cutoff
Clean Tech Alliance Bill Status & Upcoming Events Report
Upcoming Events
Ways & Means (Senate) – Virtual – 3/7 @ 5:00pm
• 2SHB 1988 – Public Hearing – Concerning tax deferrals for investment projects in clean technology manufacturing, clean alternative fuels production, and renewable energy storage. (Remote testimony.) (If measure is referred to committee.)
Ways & Means (Senate) – Virtual – 3/9 @ 12:00pm
• 2SHB 1988 – Exec Session – Concerning tax deferrals for investment projects in clean technology manufacturing, clean alternative fuels production, and renewable energy storage. (If measure is referred to committee.)
| Bill # | Abbrev. Title | Short Description | Status | Sponsor |
| HB 1036 (Dead) | Transportation fuel/carbon | Reducing greenhouse gas emissions by reducing the carbon intensity of transportation fuel. | H Env & Energy | Fitzgibbon |
| HB 1046 (Dead) | Community solar programs | Concerning community solar programs. | H Env & Energy | Bateman |
| SHB 1081 (Dead) (ESSB 5084) | State gen. obligation bonds | Concerning state general obligation bonds and related accounts. | H Rules X | Tharinger |
| SHB 1084 (Dead) (SB 5093) | Building decarbonization | Reducing statewide greenhouse gas emissions by achieving greater decarbonization of residential and commercial buildings. | H Approps | Ramel |
| HB 1093 (Dead) (SB 5091) | Operating budget, 2nd supp. | Making 2019-2021 fiscal biennium second supplemental operating appropriations. | H Approps | Ormsby |
| SHB 1094 (Dead) (ESSB 5092) | Operating budget | Making 2021-2023 fiscal biennium operating appropriations. | H Rules X | Ormsby |
| SHB 1103 (Dead) (SB 5366) | Building materials | Improving environmental and social outcomes with the production of building materials. | H Approps | Duerr |
| E2SHB 1117 | Comp. planning/salmon | Promoting salmon recovery through revisions to the state’s comprehensive planning framework. | S Ways & Means | Lekanoff |
| HB 1125 (Dead) | Energy investments | Incentivizing investment in energy conservation and efficiency measures and expanding opportunities for energy rate discounts to, among other objectives, reduce the energy burden of low-income customers and vulnerable populations. | H Env & Energy | Shewmake |
| HB 1130 (Dead) | Energy supply/consumers | Concerning consumer affordability and reliability in energy supply. | H Env & Energy | Dye |
| SHB 1135 (Dead) (SSB 5165) | Transp. budget 2021-2023 | Making transportation appropriations for the 2021-2023 fiscal biennium. | H Rules X | Fey |
| 2SHB 1173 | State lands development auth | Concerning state lands development authorities. | S Passed 3rd | Berry |
| SHB 1204 (Dead) (SB 5256) | Transp. electrification | Concerning the electrification of transportation. | H Rules X | Macri |
| SHB 1406 (Dead) (SB 5426) | Wealth tax | Improving the equity of Washington state’s tax code by creating the Washington state wealth tax and taxing extraordinary financial intangible assets. | H Approps | Frame |
| HB 1513 (Dead) | Carbon emissions | Improving environmental health by reducing carbon emissions through increasing climate resilience and mitigating the effects of climate change by levying a carbon pollution tax, authorizing a climate finance bond program, and investing in clean economic growth. | H Env & Energy | Lekanoff |
| HB 1534 (Dead) | Carbon pollution tax | Establishing a carbon pollution tax that recognizes the nature of energy-intensive, trade-exposed industries. | H Env & Energy | Shewmake |
| HB 1766 (Dead) (SB 5668) | Gas companies | Modifying the regulation of gas companies to achieve reductions in greenhouse gas emissions. | H Env & Energy | Ramel |
| HB 1767 (Dead) (SB 5666) | Targeted electrification | Concerning the authority of publicly owned electric utilities to engage in targeted electrification through the adoption of plans that establish a finding that utility outreach and investment in the conversion of its customers’ end use equipment from fossil fuels to electricity will provide net benefits to the utility. | H Rules C | Ramel |
| SHB 1768 | Energy conservation projects | Updating definitions applicable to energy conservation projects involving public entities. | S Passed 3rd | Duerr |
| ESHB 1770 (SB 5669) | Energy codes | Strengthening energy codes. | S 2nd Reading | Duerr |
| HB 1774 (Dead) (SSB 5722) | Greenhouse gases/buildings | Reducing greenhouse gas emissions in buildings. | H Env & Energy | Hackney |
| SHB 1781 (SSB 5651) | Capital budget, supplemental | Concerning the capital budget. | H Rules R | Tharinger |
| E2SHB 1812 | Energy facility site council | Modernizing the energy facility site evaluation council to meet the state’s clean energy goals. | S Passed 3rd | Fitzgibbon |
| SHB 1864 (Dead) | Leadership and security | Concerning economic development through advanced technology leadership and security. | H Rules R | Boehnke |
| EHB 1964 (Dead) | Alternative energy decomm. | Concerning the decommissioning of alternative energy facilities. | S Environment, En | Corry |
| 2SHB 1988 (Dead) (SSB 5744) | Clean tech. tax deferrals | Concerning tax deferrals for investment projects in clean technology manufacturing, clean alternative fuels production, and renewable energy storage. | H Passed 3rd | Shewmake |
| HB 2002 (Dead) | Energy infrastructure siting | Concerning the siting of energy infrastructure necessary for the fulfillment of the state’s decarbonization goals. | H Env & Energy | Fitzgibbon |
| SHB 2118 (Dead) (SSB 5975) | Additive transp. funding | Concerning additive transportation funding and appropriations. | H Rules R | Fey |
| SHB 2119 (Dead) (ESSB 5974) | Transportation resources | Addressing transportation resources. | H Rules R | Fey |
| ESSB 5083 (Dead) (SHB 1080) | Capital budget 2021-2023 | Concerning the capital budget. | S Rules X | Frockt |
| SB 5091 (Dead) (HB 1093) | Operating budget, 2nd supp. | Making 2019-2021 fiscal biennium second supplemental operating appropriations. | S Ways & Means | Rolfes |
| SB 5093 (Dead) (SHB 1084) | Building decarbonization | Reducing statewide greenhouse gas emissions by achieving greater decarbonization of residential and commercial buildings. | S Environment, E | Liias |
| SB 5168 (Dead) | Electric utility advisory | Concerning renewable and nonemitting resources analysis and advisory opinions. | S Environment, E | Short |
| SB 5206 (Dead) | Energy facility evaluation | Eliminating expedited processing of an alternative energy resource facility fueled by solar energy on certain designated lands before the energy facility site evaluation council. | S Environment, E | Warnick |
| SB 5231 (Dead) (E3SHB 1091) | Transportation fuel/carbon | Reducing greenhouse gas emissions by reducing the carbon intensity of transportation fuel. | S Environment, E | Stanford |
| SB 5244 (Dead) | Nuclear reactor production | Encouraging the production of advanced nuclear reactors, small modular reactors, and components through the invest in Washington act. | S Environment, E | Brown |
| SB 5256 (Dead) (SHB 1204) | Transp. electrification | Concerning the electrification of transportation. | S Environment, E | Liias |
| SB 5308 (Dead) | Hybrid vehicle fees | Reducing certain transportation electrification fees on hybrid vehicles. | S Transportation | Short |
| SB 5373 (Dead) | Carbon pollution | Concerning carbon pollution. | S Environment, E | Lovelett |
| SB 5415 (Dead) | Energy facil site eval cncl | Concerning the energy facility site evaluation council. | S Environment, E | Lovelett |
| SB 5493 (Dead) | Residential renewable energy | Reopening the renewable energy system incentive program for residential-scale systems. | S Environment, En | Wilson |
| SSB 5651 (SHB 1781) | Capital budget, supplemental | Concerning the capital budget. | H Rules R | Frockt |
| SB 5666 (Dead) (HB 1767) | Targeted electrification | Concerning the authority of publicly owned electric utilities to engage in targeted electrification through the adoption of plans that establish a finding that utility outreach and investment in the conversion of its customers’ end use equipment from fossil fuels to electricity will provide net benefits to the utility. | S Environment, E | Liias |
| SB 5668 (Dead) (HB 1766) | Gas companies | Modifying the regulation of gas companies to achieve reductions in greenhouse gas emissions. | S Environment, E | Lovelett |
| SB 5669 (Dead) (ESHB 1770) | Energy codes | Strengthening energy codes. | S Environment, En | Liias |
| SSB 5678 | Energy project orders | Concerning energy transformation, nonemitting electric generation, and renewable resource project analysis and declaratory orders. | H Passed 3rd | Short |
| SSB 5722 (HB 1774) | Greenhouse gases/buildings | Reducing greenhouse gas emissions in buildings. | H Passed 3rd | Nguyen |
| SSB 5744 (Dead) (2SHB 1988) | Clean tech. tax deferrals | Concerning tax deferrals for investment projects in clean technology manufacturing, clean alternative fuels production, and renewable energy storage. | S Ways & Means | Nguyen |
| SSB 5835 (Dead) | Workers’ comp marriage study | Concerning workers’ compensation. | S Rules X | Saldaña |
| SB 5908 (Dead) | Clean car authority | Creating the clean car authority as a new state government agency. | S Transportation | Liias |
| SSB 5910 | Hydrogen | Accelerating the availability and use of renewable hydrogen in Washington state. | H 2nd Reading | Carlyle |
| SB 5968 (Dead) | Salmon populations/effect | Requiring the department of fish and wildlife to track the effect of certain specified activities on salmon populations. | S Ag/Water/Natura | Fortunato |
| ESSB 5974 (SHB 2119) | Transportation resources | Addressing transportation resources. | S Conf appt | Liias |
| SSB 5975 (Dead) (SHB 2118) | Additive transp. funding | Concerning additive transportation funding and appropriations. | S Conf appt | Liias |