10 Year Analysis Complete for House Bill 1652

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UPDATE: The 10 year analysis for HB 1652, titled AN ACT Relating to reducing environmental impacts associated with the operation of certain ocean-going vessels, has been completed. 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		Vessel Sulfur Pollution Control Fee
2026		$0
2027		$0
2028		$616,536
2029		$981,927
2030		$981,927
2031		$981,927
2032		$981,927
2033		$981,927
2034		$981,927
2035		$981,927
Total:		$7,490,025

Department of Ecology:

The cash receipts impact to Ecology under this bill is estimated to be greater than $50,000 in Fiscal Year (FY) 2028 and ongoing for revenue that would be collected and deposited into the Vessel Sulfur Pollution Account as would be required under sections 4, 5, and 6. 

Section 4 would require ports to collect fees from operators of ocean-going vessels for non-compliance. If a port were to elect to not receive non-compliance fees, these fees would instead be deposited into the Air Quality and Health Disparities Improvement Account. Ecology has no basis to determine whether Washington ports will elect to receive noncompliance fees, nor the volume of noncompliance fees to be assessed to vessel operators, therefore Ecology assumes revenue deposited into the Air Quality and Health Disparities Improvement Account as would be required by Section 4 (3)(b) to be indeterminate.

Section 5 would require Ecology, beginning January 1st, 2028, to assess fees to ocean-going vessels in an amount necessary to cover the costs to implement, administer, and enforce the requirements of this chapter. Fees would be assessed to vessels at the time of each port visit. In 2023, the Department of Ecology’s publication of VEAT 2023 (Vessel Entries and Transits for Washington Waters 30th edition) stated that there were 5,727 vessels in transit and bound for a Washington port. Ecology assumes a future version of the bill would require section 5 fee revenue to be deposited into the Vessel Sulfur Pollution Account as would be created in section 6. As revenue would be collected in the second half of FY 2028, Ecology assumes revenue collected in FY 2028 would be half of the year’s projected expenditures to implement the program.

Section 5 would require Ecology to collect penalties in the amount of $10,000 per day, per violation, from persons found to be in violation of this chapter. Penalty revenue collected would be deposited into the Natural Climate Solutions Account. Penalties are assumed to limited, but unknown, and are not estimated in this fiscal note.

Vessel sulfur pollution account:

FY 2028: $616,536

FY 2029 and ongoing: $981,927

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

Department of Ecology


Bill sponsors and contact information:

Representative Debra Lekanoff, Prime Sponsor
Democrat
(360) 786-7800
debra.lekanoff@leg.wa.gov

Representative Alex Ramel
Democrat
(360) 786-7970
alex.ramel@leg.wa.gov

Representative Julia Reed
Democrat
(360) 786-7814
Julia.Reed@leg.wa.gov

Representative Beth Doglio
Democrat
(360) 786-7940
beth.doglio@leg.wa.gov

Representative Shaun Scott
Democrat
(360) 786-7920
Shaun.Scott@leg.wa.gov




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

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