Notice of Committee Passage for Engrossed Third Substitute House Bill 1091. PL - Update: Passed Legislature

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E3SHB 1091.PL, 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 Ways & Means. 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		342,258
2024		764,649
2025		836,690
2026		764,649
2027		836,690
2028		764,649
2029		836,690
2030		764,649
2031		836,690
Total:		$ 6,747,614

Department of Ecology:

Cash receipts are indeterminate due to the uncertain timing of when the requirements of section 3(8) for an additive transportation revenue act will be met in order to begin implementation of compliance obligations and credit generation for the clean fuels program. For purposes of this analysis, a scenario of cash receipts is provided based on an assumption that the requirements of 3(8) would be met by January 1, 2023. If the requirements of section 3(8) are not met by then, Ecology assumes program implementation of compliance obligations and credit generation would be on hold, and there would be no cash receipts in the Clean Fuels Program Account until the requirements of section 3(8) are met.

Section 14 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 14 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 14, 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 14.

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

Department of Ecology

The following legislators voted do pass:

Senator Steve Conway
Democrat
(360) 786-7656
steve.conway@leg.wa.gov

Senator Karen Keiser
Democrat
(360) 786-7664
Karen.Keiser@leg.wa.gov

Senator Sam Hunt
Democrat
(360) 786-7642
Sam.Hunt@leg.wa.gov

Senator Jeannie Darneille
Democrat
(360) 786-7652
DARNEILL_JE@leg.wa.gov

Senator Bob Hasegawa
Democrat
(360) 786-7616
bob.hasegawa@leg.wa.gov

Senator Christine Rolfes
Democrat
(360) 786-7644
christine.rolfes@leg.wa.gov

Senator Jamie Pedersen
Democrat
(360) 786-7628
jamie.pedersen@leg.wa.gov

Senator Kevin Van De Wege
Democrat
(360) 786-7646
Kevin.VanDeWege@leg.wa.gov

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 David Frockt
Democrat
(360) 786-7690
david.frockt@leg.wa.gov

Senator Mark Mullet
Democrat
(360) 786-7608
mark.mullet@leg.wa.gov

Senator June Robinson
Democrat
(360) 786-7674
june.robinson@leg.wa.gov

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

Senator Manka Dhingra
Democrat
(360) 786-7672
Manka.Dhingra@leg.wa.gov


The following legislators voted do not pass:

Senator Mark Schoesler
Republican
(360) 786-7620
mark.schoesler@leg.wa.gov

Senator Jim Honeyford
Republican
(360) 786-7684
Jim.Honeyford@leg.wa.gov

Senator Judy Warnick
Republican
(360) 786-7624
judith.warnick@leg.wa.gov

Senator Ann Rivers
Republican
(360) 786-7634
ann.rivers@leg.wa.gov

Senator John Braun
Republican
(360) 786-7638
john.braun@leg.wa.gov

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

Senator Lynda Wilson
Republican
(360) 786-7632
lynda.wilson@leg.wa.gov

Senator Keith Wagoner
Republican
(360) 786-7676
keith.wagoner@leg.wa.gov

Senator Chris Gildon
Republican
(360) 786-7648
GILDON_CH@leg.wa.gov

Senator Ron Muzzall
Republican
(360) 786-7618
MUZZALL_RO@leg.wa.gov



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

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