Revision: Notice of Committee Passage of Engrossed Second Substitute House Bill 1110

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E2SHB 1110, titled AN ACT Relating to reducing the greenhouse gas emissions associated with transportation fuels, has been scheduled for a public hearing by the Senate Committee on Transportation.

Date and Time: 04/04/2019 1:30PM (Subject to change by the Legislature.)
Location: J.A. Cherberg Building, Senate Hearing Rm 1, Olympia, WA

The Office of Financial Management has identified this bill as requiring a ten-year projection of increased cost to the taxpayers or affected fee payers.

Ten-year projection:

Fiscal Year		Clean Fuels Program Fee
2020		$0
2021		305,123
2022		712,234
2023		778,816
2024		639,159
2025		705,741
2026		639,159
2027		705,741
2028		639,159
2029		705,741
Total:		$ 5,830,873

Note:  This fiscal note reflects language in E2SHB 1110, 2019 Legislative Session.

The engrossed second substitute bill makes the following changes:

- Adds exemptions from the Clean Fuels program requirements for several additional types of fuels and uses.

- Details the types of activities to support the reduction of greenhouse gas emissions associated with transportation that may be used to generate credits.

Overview

The Department of Ecology is directed to adopt a rule establishing a Clean Fuels program limiting the greenhouse gas emissions attributable to each unit of transportation fuel to 10 percent below 2017 levels by 2028 and 20 percent below 2017 levels by 2035. The start date for the program must be no later than January 1, 2021.

Credits

The Department of Ecology must adopt rules that allow for the creation, tracking, and trading of credits that are equal to one metric ton of carbon dioxide equivalents. Required cost containment mechanisms may include a credit clearance market designed to make credits available for sale to regulated persons after the conclusion of a compliance period at a Department of Ecology determined price.

The bill takes effect 90 days after final adjournment of the session in which it is enacted. If specific funding is not provided by June 30, 2019, in the omnibus appropriations act this legislation is null and void. 

ASSUMPTIONS

- The Department of Revenue will not be administering the Clean Fuels program.

- Credits will be sold and traded on established markets. It is unclear if these types of transactions would result in a business and occupation (B&O) taxable event that would be taxed at the service and other activities rate. 

- There is no information available on the amount of buying, selling, or trading of credits that may happen; therefore, the revenue impact to the state general fund from any B&O taxes collected from this activity is indeterminate.

The department does not set, administer or collect the tax or fee contained in this bill.

This engrossed bill is proposed by the House of Representatives.

The second substitute bill was proposed by:

House Committee on Appropriations
(360) 786-7155



The original bill sponsors and contact information are:

Representative Joe Fitzgibbon, Prime Sponsor
Democrat
(360) 786-7952
Joe.Fitzgibbon@leg.wa.gov

Representative Vandana Slatter
Democrat
(360) 786-7936
Vandana.Slatter@leg.wa.gov

Representative Shelley Kloba
Democrat
(360) 786-7900
Shelley.Kloba@leg.wa.gov

Representative Strom Peterson
Democrat
(360) 786-7950
Strom.Peterson@leg.wa.gov

Representative Steve Tharinger
Democrat
(360) 786-7904
Steve.Tharinger@leg.wa.gov

Representative Laurie Jinkins
Democrat
(360) 786-7930
Laurie.Jinkins@leg.wa.gov

Representative Nicole Macri
Democrat
(360) 786-7826
Nicole.Macri@leg.wa.gov

Representative Eileen Cody
Democrat
(360) 786-7978
Eileen.Cody@leg.wa.gov

Representative Steve Bergquist
Democrat
(360) 786-7862
Steve.Bergquist@leg.wa.gov

Representative Beth Doglio
Democrat
(360) 786-7992
Beth.Doglio@leg.wa.gov

Representative June Robinson
Democrat
(360) 786-7864
June.Robinson@leg.wa.gov

Representative Gerry Pollet
Democrat
(360) 786-7886
Gerry.Pollet@leg.wa.gov

Representative Derek Stanford
Democrat
(360) 786-7928
Derek.Stanford@leg.wa.gov

Representative Noel Frame
Democrat
(360) 786-7814
Noel.Frame@leg.wa.gov


Senate Committee on Transportation members and contact information:

Senator Annette Cleveland
Democrat
(360) 786-7696
Annette.Cleveland@leg.wa.gov

Senator Mona Das
Democrat
(360) 786-7692
DAS_MO@leg.wa.gov

Senator Phil Fortunato
Republican
(360) 786-7660
phil.fortunato@leg.wa.gov

Senator Steve Hobbs
Democrat
(360) 786-7686
Steve.Hobbs@leg.wa.gov

Senator Curtis King
Republican
(360) 786-7626
Curtis.King@leg.wa.gov

Senator Liz Lovelett
Democrat
(360) 786-7678
Liz.Lovelett@leg.wa.gov

Senator John McCoy
Democrat
(360) 786-7674
John.McCoy@leg.wa.gov

Senator Joe Nguyen
Democrat
(360) 786-7667
NGUYEN_JO@leg.wa.gov

Senator Steve O'Ban
Republican
(360) 786-7654
Steve.OBan@leg.wa.gov

Senator Mike Padden
Republican
(360) 786-7606
Mike.Padden@leg.wa.gov

Senator Emily Randall
Democrat
(360) 786-7650
RANDALL_EM@leg.wa.gov

Senator Rebecca Saldaña
Democrat
(360) 786-7688
Rebecca.Saldana@leg.wa.gov

Senator Tim Sheldon
Democrat
(360) 786-7668
Timothy.Sheldon@leg.wa.gov

Senator Dean Takko
Democrat
(360) 786-7636
Dean.Takko@leg.wa.gov

Senator Maureen Walsh
Republican
(360) 786-7630
Maureen.Walsh@leg.wa.gov

Senator Lisa Wellman
Democrat
(360) 786-7641
Lisa.Wellman@leg.wa.gov

Senator Claire Wilson
Democrat
(360) 786-7658
WILSON_CL@leg.wa.gov

Senator Hans Zeiger
Republican
(360) 786-7648
Hans.Zeiger@leg.wa.gov



Legislative Bill Information Website: http://apps.leg.wa.gov/billinfo/

Initiative 960 Website: http://www.ofm.wa.gov/tax/default.asp