Notice of Committee Passage for Engrossed Third Substitute House Bill 1091

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E3SHB 1091, titled AN ACT Relating to reducing greenhouse gas emissions by reducing the carbon intensity of transportation fuel, has been passed by the Senate Committee on Environment, Energy & Technology. 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
2022		$
2023		381,986
2024		866,083
2025		938,124
2026		866,083
2027		938,124
2028		866,083
2029		938,124
2030		866,083
2031		938,124
Total:		$ 7,598,814

Department of Ecology:

Section 13 would authorize Ecology to require a fee from persons that register or report under the provisions of this chapter. Ecology would adopt rules following an opportunity for public comment that would determine the payment schedule and fee amount. The fee amount would be required to be set so that receipts equal but do not exceed the projected direct and indirect costs for Ecology’s and Commerce’s development and implementation of the program. 

Ecology would be required to establish rules by January 1, 2023, under section 3. Ecology assumes the fee authorized in section 13 would start on this date. Based on the start date for fee implementation, Ecology estimates that the latter 6 months of FY 2023 expenditures for the Clean Fuels program would be fee-recoverable, and all future expenditures would be funded through fee revenue in the Clean Fuels Program Account. 

Per section 13, the fee amount would be set so that receipts equal but do not exceed projected direct and indirect costs for Ecology's and Commerce’s development and implementation of the program. Cash receipts are estimated to equal expenditure estimates in the new Clean Fuels Program Account beginning January 1, 2023. 

Individual fee levels and the number of fee payers is indeterminate at this time. Rulemaking and stakeholder feedback will determine which entities will be required to pay a fee and what portion of the program should be supported by each class of participant. 

All fee receipts would be deposited in the Clean Fuels Program Account created in section 13.

Ten-year projection prepared in consultation with the following agencies:

Department of Ecology
Department of Commerce

The following legislators voted do pass:

Senator Marko Liias
Democrat
(360) 786-7640
Marko.Liias@leg.wa.gov

Senator Reuven Carlyle
Democrat
(360) 786-7670
Reuven.Carlyle@leg.wa.gov

Senator Derek Stanford
Democrat
(360) 786-7600
Derek.Stanford@leg.wa.gov

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

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

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

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


The following legislators voted to refer the bill without recommendation:

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


The following legislators voted do not pass:

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

Senator Doug Ericksen
Republican
(360) 786-7682
Doug.Ericksen@leg.wa.gov

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

Senator Shelly Short
Republican
(360) 786-7612
Shelly.Short@leg.wa.gov

Senator Sharon Brown
Republican
(360) 786-7614
Sharon.Brown@leg.wa.gov



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

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