Notice of Introduction for Senate Bill 5688 - Update: 10 Year Analysis Complete

You are receiving this email as a subscriber to the Initiative 960 email list. RCW 43.135.031 (I-960) requires that notices be sent each time a bill that raises taxes or fees is: introduced in either house; scheduled for a public hearing; approved by any legislative committee; or passed by either house of the Legislature.

Please note: This email message was sent from a notification-only address. Please do not reply to this message.

SB 5688, titled AN ACT Relating to providing carbon sequestration and ecosystem services in the management of public lands, has been introduced in the Senate. 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:

Department of Natural Resources:

Cash receipts are indeterminate. The annual rate of revenue generation will be driven by the number of projects, the types of projects, the size of those projects, and frequency with which we develop new projects. We know that private forest managers that sell carbon credits on both the regulatory and voluntary markets have generated millions of dollars per year through those projects in addition to revenue generated from more traditional business lines. We anticipate generating revenue in a similar fashion as those projects due. DNR could also reap additional long-term revenue from increased volume due to improved forest management practices (the cost of which would be offset by revenue from carbon projects), unproductive lands being made productive again through inputs (e.g. seedlings) paid for by revenue from the sale of credits, or other yet unforeseen co-beneficial conditions introduced by ecosystem services projects.

Numbers vary in the voluntary carbon market range from $2 per carbon credit in an emerging market to upwards of $29 per carbon credit in an established market (California). A current 10,000 acre carbon project on private industrial forestland in southwest Washington is earning approximately $128,000 per year at the $2 rate. After broker’s fees the actual net earnings to the landowner was approximately $103,000. At the high-end ($29), this same project could potentially earn $1.63 million per year for the landowner. If this were a DNR project, the department would retain 25-31 percent and the remaining would be distributed to the trust beneficiaries.

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

Department of Natural Resources


Bill sponsors and contact information:

Senator Liz Lovelett, Prime Sponsor
Democrat
(360) 786-7678
liz.lovelett@leg.wa.gov

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

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

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

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

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




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

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