Puget Sound Partnership Legislative Update, April 19, 2019

Puget Sound Partnership Washington sent this bulletin at 04/19/2019 05:06 PM PDT


leg-update

April 19, 2019

The Puget Sound Partnership's Legislative Update highlights issues related to our region's work to protect and recover Puget Sound.

The 2019 State Legislative Session began on January 14, 2019, and runs 105 consecutive days until April 28, 2019.

  • Puget Sound Partnership Legislative Updates are posted on the Partnership's website.
  • Find up-to-date legislative information online.
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If you have questions or concerns about the legislative priorities for the Puget Sound Partnership, please contact: Jeff Parsons, Legislative Policy Director, 360.999.3803.

 

Highlights from this week

Wednesday, April 17, was the last day for non-exempt bills to be passed by both houses in one form or another. Non-exempt bills that missed this deadline are likely dead for the session. Here are the highlights:

  • Two of the three policy bills introduced by Governor’s request to implement recommendations of the Southern Resident Orca Task Force have been passed by both houses of the Legislature and are on their way to the Governor for his signature. These bills are Engrossed Substitute HB 1578 to improve oil transportation safety and Second Substitute HB 1579 to increase chinook and other prey abundance. The third bill, Second Substitute SB 5577, intended to reduce vessel noise and disturbance, has passed both houses with content differences and is awaiting a vote by the Senate to concur in House amendments.
  • Both houses have also passed different versions of a toxic pollution prevention bill, Substitute SB 5135, that align with a recommendation of the Southern Resident Orca Task Force.
  • The state Operating Budget has been passed in different forms by both houses and members from both houses are negotiating the content of a mutually acceptable bill.
  • The Capital Budget has been passed by the House and is waiting for the Senate to take action on the bill, which is on the Senate Second Reading Calendar.
  • For bills passed by both houses with differences between the versions passed by each, the houses can decide whether to agree to one version or the other or they can decide to try to negotiate the contents of a mutually agreeable version. To be delivered to the Governor for his signature, a bill must be passed with identical content by both houses.

Budget Proposals

The Governor’s operating budget (HB 1109) for the Puget Sound Partnership includes the following enhancements:

  • Promote accountability measures: $834,000 from the state's General Fund (GF-S) in ongoing funding and 2.6 full-time equivalent (FTE) staff are provided to evaluate programs, actions, investments, and organizations related to Puget Sound recovery. This funding will increase accountability and effectiveness across the network of recovery partners. This item responds to recommendations from the Joint Legislative Audit and Review Committee (JLARC).
  • Restore Puget Sound salmon runs: $977,000 (GF-S) in one-time funding and 1.2 FTE staff are provided to coordinate updates to the outdated Puget Sound Salmon Recovery Plan for Chinook salmon, provide support for adaptive management of local watershed chapters, and advance regional work on salmon and ecosystem recovery through Local Integrating Organizations (LIOs). This work will identify the most effective actions for Chinook salmon recovery based on the latest science, serve as a guide to future recovery investments, and support Southern Resident orca recovery. Includes:
    • $328,000 and 1.2 FTE staff to coordinate updates for Puget Sound Salmon Recovery Plan and a portion of time for a Communication Specialist
    • $560,000 for contract services to enable local watersheds support for adaptive management of local watershed chapters and advance regional work on salmon and ecosystem recovery through LIOs
    • $50,000 ($5,000 per LIO) for the role of LIOs related to the previous bullet
    • $40,000 for contract services for an expert to consult, coach, and provide technical assistance to watershed chapters and LIOs
  • Monitoring to accelerate recovery: $1,296,000 (GF-S) in ongoing funding and 1.2 FTE staff is provided to increase capacity and support to achieve the essential functions of a coordinated monitoring and assessment program. The improvements outlined below will inform and support more effective, efficient, and accountable actions and investments to recover Puget Sound. This item responds to a recent JLARC report that recommended correction of deficiencies in the agency's monitoring program, including the need to expand the scope of the program to improve access to credible information, directly link scientific findings to management decisions, measure progress, assess effectiveness, support inclusive and comprehensive science, and provide transparency. Improvements include:
    • $450,000 to conduct assessments and develop products to link scientific findings directly to management decisions (such as, effectiveness of recovery actions, syntheses that inform priority activities)
    • $300,000 for projects to identify and fill information gaps to enable evaluation of the effectiveness of efforts and measurement of progress toward achieving recovery goals
    • $200,000 for communications products that will enable local and regional decision-makers to make informed decisions based on a clear understanding of the best available science
    • $346,370 and 1.2 FTE for a Puget Sound Ecosystem Monitoring Program (PSEMP)Coordinator to strategically link the expertise and information within the monitoring network to the planners, implementers, and decision-makers working to recover Puget Sound
  • Puget Sound Scientific Research: $2,222,000 (GF-S) in ongoing funding and 1 FTE staff are provided for a competitive, peer-reviewed process for soliciting, prioritizing, and funding research projects designed to advance scientific understanding of Puget Sound recovery. Solicitations and project selection for effectiveness monitoring will be organized and overseen by the PSEMP. Initial projects will focus on implementation and effectiveness of Chinook salmon recovery efforts, effectiveness of actions to restore shellfish beds, and implementation of priority studies of the Salish Sea Marine Survival Project. Includes:
    • $342,000 and 1 FTE for Deputy Science Director
    • $510,000 for effectiveness monitoring of Chinook salmon recovery
    • $1.2 million for the Salish Sea Marine Survival Project
    • $170,000 for effectiveness monitoring of shellfish bed recovery
  • Southern Resident Orca Task Force vessel workgroup support: $326,000 (GF-S) in one-time funding and 1.2 FTE staff are provided for support to the Southern Resident Orca Task Force vessel workgroup responsible for researching and recommending actions necessary to reduce the negative effects of vessel noise and disturbance on Southern Resident orcas.

Status: The House passed Engrossed Substitute HB 1109 on a vote of 56 to 38. The Senate passed the bill with an amended striking amendment on a vote of 31 to 17 on April 4. The differences between the two version are being negotiated. 

 

Changes made in House passed operating budget:

  • Funds the following:
    • Restore Puget Sound Salmon Runs partially at $500,000 and 0.6 FTE, instead of $977,000 and 1.2 FTE
    • Puget Sound Scientific Research partially at $1 million and 0.5 FTE, instead of $2,222,000 and 1 FTE
    • The Southern Resident Orca Recovery Task Force vessel workgroup support at the Governor's level of $326,000 and 1.2 FTE
    • Lease rate at the Partnership's Olympia Office at Governor’s level of $80,000
  • Does not fund the following
    • Promote Accountability Measures
    • Monitoring to Accelerate Recovery

Changes made by Senate Ways & Means Committee:

  • Funds the following:
    • Promote Accountability Measures at the Governor’s level of $834,000 and 2.6 FTE
    • Restore Puget Sound Salmon Runs at the Governor’s level of $977,000
    • Monitoring to Accelerate Recovery at the Governor’s level of $1,296,000 and 1.2 FTE
    • Puget Sound Scientific Research at the Governor’s level of $2,222,000 and 1 FTE
  • Does not fund the following:
    • Southern Resident Orca Recovery Task Force vessel workgroup support
    • Lease rate at the Partnership's Olympia Office

 

The Office of Financial Management's capital budget (HB 1102, SB 5134) proposal includes the following requests:

NOTE: Budget requests that implement recommendations of the Southern Resident Orca Task Force are identified parenthetically.

 

Restoring and Protecting Habitat and Promoting Chinook Salmon Abundance

  • $42.5 million (Governor); $43.6 million (House); $45.9 million (Senate) in the capital budget for the Puget Sound Acquisition and Restoration (PSAR) Program to enable the Recreation and Conservation Office (RCO) to provide grants to projects that protect and restore the most critical salmon habitats in Puget Sound (Southern Resident Orca Task Force recommendations 1 & 2)
    • #1-ranked Middle Fork Nooksack Fish Passage is funded in all 3 budgets.
    • The House budget also funds the #2-ranked Dungeness River Floodplain Restoration.
    • The Senate budget funds the #3-ranked Riverbend Floodplain Restoration, but not #2-ranked Dungeness River Floodplain Restoration. The Partnership has objected to this variance fromt eh ranked list.
  • $12.5 million (Governor); $10 million (House); $10 million (Senate) in the capital budget for the Puget Sound Estuary and Salmon Restoration Program (ESRP) to enable RCO to provide grants to protect and restore the nearshore ecosystems of Puget Sound (Southern Resident Orca Task Force recommendations 1 & 2)

  • $35 million in state funding and $50 million in federal funding (Governor);  $25 million in state funding and $50 million in federal funding (House); $25 in state funding and $50 million in federal funding (Senate) for in the RCO capital budget for statewide Salmon Recovery Funding Board (SRFB) programs. The SRFB provides funding for elements necessary to achieve overall salmon recovery, including habitat projects and other activities that result in sustainable and measurable benefits for salmon and other fish species. State funding is required to match federal funding for salmon recovery projects. (Southern Resident Orca Task Force recommendations 1 & 2)

  • Fish passage barrier removal – (Southern Resident Orca Task Force recommendation 1)
    • $25 million (Governor); $25 million (House);  $30.6 million (Senate) for the Brian Abbot Fish Barrier Removal Board.
    • $6 million (Governor); 5 million (House); $5 million (Senate) for the Family Forest Fish Passage Program.
    • $275 million (Governor); $214 million (House); $274 million (Senate) for the Transportation Budget.
  • $42.8 million (Governor); $50.4 million (House); $42.8 million (Senate) in the capital budget for the statewide Floodplains by Design program to enable the Department of Ecology (Ecology) to provide grants for projects that improve flood protection, restore salmon habitat, improve water quality, and enhance outdoor recreation (Southern Resident Orca Task Force recommendations 1 & 5)

  • $40 million (Governor); $40 million (House); $40 million (Senate) for Ecology to fund watershed restoration and enhancement projects as part of the Hirst compromise

  • $5 million (Governor); $4.4 million (House); $3 million (Senate) in capital budget riparian funding to enable the State Conservation Commission's Conservation Reserve Enhancement Program to provide incentives for landowners to set aside riparian buffers (Southern Resident Orca Task Force recommendation 5)

  • $3.5 million (Governor); $2.5 million (House); $2.5 million (Senate) in the capital budget for Forest Riparian Easement Program of Department of Natural Resources (DNR) (Southern Resident Orca Task Force recommendation 5)

  • $1.5 million (Governor); $1 million (House); $1 million (Senate) in the capital budget for the Rivers and Habitat Open Space Program of DNR (Southern Resident Orca Task Force recommendation 5)

  • $7.8 million in the capital budget for the Washington Department of Fish & Wildlife (WDFW) to provide state match for federal and state shares of costs for the ecosystem-based estuary restoration projects at, the Duckabush estuary, the North Fork Skagit River delta, and the Nooksack River delta, as identified by the Puget Sound Nearshore Ecosystem Restoration Project. This project will be implemented in partnership with the U.S. Army Corps of Engineers over the next 10-18 years (Southern Resident Orca Task Force recommendation 1)

  • $115 million (Governor); $80 million (House); $90 million (Senate) in the RCO capital budget for the statewide Washington Wildlife and Recreation Program to provide grants for critical wildlife habitat, riparian areas, and agricultural land

Preventing Toxic Pollution

  • $66 million (Governor); $35 million (House); $18 million (Senate) in the capital budget for the Stormwater Financial Assistance Program for Ecology to provide grants to local governments for projects that help prevent stormwater pollution (related to Southern Resident Orca Task Force recommendation 31)

  • $3.7 million (Governor); $3.7 million (House); $3.7 million (Senate) in the capital budget for Ecology to implement Chemical Action Plans (related to Southern Resident Orca Task Force recommendation 30)

  • $35 million (Governor); $35 million (House); $30 million (Senate) in the capital budget for Ecology’s Centennial Clean Water Fund

  • $204 million (Governor); $204 million (House); $204 million (Senate) in the capital budget for Ecology’s Water Pollution Control Revolving Program (related to Southern Resident Orca Task Force recommendation 31)

Status: The House passed Substitute HB 1102 on a vote of 94 to 0. The Senate Ways & Means Committee, passed the bill with a striking amendment on April 4. The bill is now on the Senate Second Reading Calendar.

 

New Revenue

HB 1228 - Increasing transportation revenues to help fund state fish barrier removal. (Graduated Real Estate Excise Tax)  

Status: The bill is in the House Transportation Committee where it had a public hearing on April 5.

 

HB 2117 - Providing a pathway to modernize and rebalance the Washington state tax structure so that it is equitable, adequate, stable, and transparent for the people of Washington State. Reauthorizes and expands the Tax Structure Work Group.  

Status: The bill is in the House Rules Committee.

 

HB 2122 - Imposing a sales and use tax on recreational equipment and apparel to provide funding to the state wildlife account.

Status: The bill is in the House Finance Committee.

 

HB 2156 - Investing in quality prekindergarten, K-12, and postsecondary opportunities throughout Washington with excise taxes on sales and extraordinary profits of high valued assets. (9.9 % capital gains tax, modifies REET)

Status: The bill is in the House Finance Committee.

 

HB 2157 - Updating the Washington tax structure to address the needs of Washingtonians. Modifies certain tax preferences and exemptions.

Status: The bill is in the House Finance Committee.

 

SB 5130 - Increasing transportation revenues to help fund state fish barrier removal. (Graduated Real Estate Excise Tax)

Status: The bill is in the Senate Transportation Comittee.

 

SB 5961 - Improving the equity and sustainability of Washington's tax structure. (8.9% capital gains tax; tax reductions for low income families, small businesses, senior citizens; etc.)

Status: The bill is in the Senate Ways & Means Committee.

 

SB 5971 - Concerning transportation funding. (Carbon fee)

Status: The bill is in the Senate Ways & Means Committee.

 

SB 5993 - Reforming the financial structure of the model toxics control program. (Volumetric hazardous substance tax)

Status: The Senate Ways & Means Committee passed Substitute SB 5993 on April 18.

  • Changes the Hazardous Substance Tax (HST) on petroleum products to a volumetric rate of $2.52 per 42-gallon barrel.
  • Replaces the existing Model Toxics Control Act (MCTA) accounts with operating, capital, and stormwater accounts; HST revenue will be allocated at 43 percent for operating, 43 percent for capital, and 14 percent for stormwater.
  • Adjusts the volumetric rate each year by a fiscal growth factor.
  • Specifies qualifying operating budget programs and capital budget projects for each account.
  • Requires the Governor's proposed and enacted budgets to be accompanied by a report documenting the MTCA expenditures.
  • Fiscal note estimates revenue as follows:
    • $764.3 million in the 2019-21 biennium ($107 million for stormwater)
    • $950.9 million in the 2021-23 biennium ($133.1 million for stormwater)
    • $1.0365 billion in the 2023-25 biennium ($145.1 million for stormwater)

Effect of Substitute SB 5993, as passed:

  • Changes the growth in the tax rate from the fiscal growth factor to the implicit price deflator for nonresidential construction.
  • Reduces the tax rate from $2.52 per barrel to $1.39 per barrel.
  • Modifies the expenditure allocation to the following
    • Operating: 45 percent
    • Capital: 40 percent
    • Stormwater: 15 percent
  • Adds an intent section that specifies that there will be no transfers from the MTCA accounts to the operating budget in 2017-2019 or 2019-2021 biennia.
  • Restricts Ecology from disbursing remedial action grants unless the applicants have received all necessary permits.
  • Replaces reporting language on the Governor's proposed and enacted budgets related to MTCA accounts with direction to OFM and LEAP to modify budgeting and reporting systems to document MTCA account, appropriation, and project information.
  • Removes the expiration of the exclusion relating to agricultural hazardous substances; the expiration is current law under the tax preferences statute, RCW 82.32.805.

SB 5997 - Eliminating or narrowing certain tax preferences to increase state revenue for essential public services.

Status: The Senate Ways & Means Committee passed an amended version of the bill on April 18.

Effect of original bill:

  • The nonresident sales tax exemption is converted to a remittance program. Refunds may only be requested by nonresidents for the immediately preceding calendar year, and must be for at least $25. Also, a nonresident may only make one refund request per calendar year and it must include proof of nonresident status as prescribed by the Department of Revenue. Penalties are created for making fraudulent statements or submitting fraudulent documents.
  • The preferential B&O rate for travel agents and tour operators is eliminated.

Effect of committee amendment:

  • Increases the business and occupation tax rate for travel agents and tour operators from 0.275 percent to 0.9 percent, beginning July 1, 2019.

SB 5998 - Establishing a graduated real estate excise tax.

Status: The Senate Ways & Means Committee passed an amended version of the bill on April 18.

Effect of Proposed Substitute SB 5998:

  • Modifies the graduated real estate excise tax rates and establishes a marginal rate structure so that specified rates are imposed at certain thresholds of the selling price.
  • Maintains distributions under current law and provides that additional revenues must be deposited into the education legacy trust account.
  • Increases from 12 to 36 months the period of time in which a controlling interest transfer is determined, where the transfer involves multiple transfers of an interest in an entity that, collectively, and the amount to a transfer is 50 percent or more of the entity.
  • Clarifies the definition of “controlling interest” applies to any corporation.
  • Provides the Department of Revenue with explicit authority to disregard tax avoidance schemes.
  • Expands existing reporting requirements for transfers of interests in entities that are required to file an annual report with the Secretary of State.
  • Clarifies that real property with multiple uses must be classified according to the property’s predominant use.
  • Makes the act exempt from tax preference performance review and expiration.

Status of legislation related to Southern Resident orca recovery

Strengthening Oil Transportation Safety

2SHB 1578 (Governor’s request legislation)—Reducing threats to Southern Resident orcas by improving the safety of oil transportation.

 

Status of Second Substitute HB 1578: The House passed the bill on a vote of 70 to 28. The Senate passed the bill with committee amendments and no additional amendments on a vote of 32 to 13 on April 12. The House concurred with the Senate amendments and the bill is now awaiting the Governor’s signature.

 

Effect of Second Substitute HB 1578:

  • New tug escort requirements outlined in statute:
    • Specifies tug escort requirements for oil tankers of a certain size in Puget Sound.
    • Specifies tug escort requirements for certain sized oil tankers and articulated tug barges transited through Rosario Strait and connected waterways, beginning September 1, 2020. These new tug escort requirements for Rosario Strait only apply to oil tankers of between 5,000 and 40,000 deadweight tons and towed barges designed to carry more than 5,000 deadweight tons. These requirements do not apply to vessels providing bunkering or refueling services and may be adjusted by rule by the Board of Pilotage Commissioners. Tug escort requirements for Rosario Strait may be suspended through rule based on expertise gained after consideration of information during rule review.
    • Vessels or barges that are empty or in ballast do not need escorts.
  • Requires the Board of Pilotage Commissioners and the Department of Ecology (Ecology) to adopt rules for tug escorts in Puget Sound by December 31, 2025.
    • Effectiveness of rules to be assessed and changes to be considered every 10 years.
    • Board of Pilotage Commissioners must complete a synopsis of changing vessel traffic trends by September 1, 2020. The synopsis will be consider during tug escort rulemaking.
    • Ecology and the Board of Pilotage Commissioners will consult with federally recognized tribes that could be potentially affected, rather than consulting with tribe with usual and accustomed fishing rights in areas subject to rulemaking.
  • Authorizes Ecology to adopt rules for an emergency response towing vessel to be situated in the San Juan Islands area.
    • Expands the scope of tribal governments and other entities that Ecology is directed to partner with to discuss shared funding of an emergency response towing vessel.
  • Beginning July 1, 2021, additional reporting to Ecology regarding the gravity of oil transported through pipeline and oil transfers by vessels is required.

Increasing Prey Abundance

HB 1579 (Governor’s request legislation)—Implementing recommendations of the Southern Resident Orca Task Force related to increasing Chinook salmon and forage fish abundance.

 

Status of HB 1579: The House passed Second Substitute HB 1579 on a vote of 59 to 39. The Senate Agriculture, Water, & Natural Resources Committee passed the bill with a striking amendment. The Senate passed the bill with the committee amendments and no other amendments on a vote of 26 to 20 on April 10. The House concurred with the Senate amendments and the bill is now awaiting the Governor’s signature.

 

Effect of Second Substitute HB 1579

  • Regarding fishing regulations:
    • Requires a recreational fishing license for saltwater smelt and liberalizes catch limits for bass, walleye, and channel catfish. Requires a license to fish for saltwater smelt instead of all smelt.
  • Regarding the Department of Fish and Wildlife's (DFW) Hydraulic Project Approval authority:
    • Creates a hydraulic pre-application that a person may file with the DFW to determine whether a project requires a complete application for a hydraulic project permit. The DFW must provide tribes and local governments a seven calendar day review and comment period for pre-applications. If the DFW determines that a complete application is required, the applicant would then need to submit a complete application as defined in statue. The DFW would process the permitting decision.
    • Authorizes the DFW to serve stop work orders for violations of hydraulic project approvals that may cause significant harm to fish life. DFW must take all reasonable measures to ensure that the project proponent actually receives notice of the stop work order, notice to comply, or notice of penalty.
    • Increases the civil penalty for violations of the hydraulic code from $100 per day to $10,000 per violation, subject to enactment of a section authorizing three demonstration projects to test the effectiveness and costs of river management by June 30, 2019.
    • Removes the requirement that the DFW issue permits with or without conditions for single-family residential bulkheads and rock walls.
    • Provides the that the new hydraulic code enforcement provisions do not apply to hydraulic projects that have received a forest practices hydraulic project permit from the Department of Natural Resources (DNR).
  • Demonstration projects
    • Subject to appropriations, the Washington State Conservation Commission, Ecology, Washingotn State Department of Agriculture, DFW, and DNR are required to work together on three demonstration projects--one project in each Whatcom, Snohomish, and Grays Harbor counties-- to function as a model for river management., The three demonstration projects should test the effectiveness and costs of various management strategies, and should project agricultural land, restore fish runs, and protect public infrastructure and recreational access. The departments must subsequently report to the Legislature by December 31, 2020.
    • Provides that agencies agencies must implement the demonstration projects within the amounts appropriated in the omnibus operating appropriations act and expires the demonstration projects on June 30, 2030.

 

Vessel noise and disturbance

2SSB 5577(Governor’s request legislation)—Concerning the protection of Southern Resident orcas from disturbance by vessels.

 

Status of Second Substitute SB 5577: The Senate passed the bill on a vote of 46 to 3. The House passed the bill with committee amendments on April 15

 

Effect of Second Substitute SB 5577

  • Increases distances within which vessels or other objects may not approach Southern Resident orcas and makes it unlawful to approach or fail to disengage the transmission of a vessel within 300 yards of a Southern Resident orca and specifies that it is unlawful to position a vessel within 400 yards of an orca.
  • Makes it unlawful to exceed 7 knot vessel speed with half a nautical mile of a Southern Resident orca.
  • Establishes a commercial whale watching license program, sets fees for the license, and requires the DFW to report on the license program.
    • The license program includes an alternate operator license for a designated alternate operator to operate a commercial whale watching vessel.
    • Makes commercial whale watching without a permit, or violating department rules regarding commercial whale watching a misdemeanor.
    • Requires the DFW to establish rules to implement the commercial whale watching license program that are designed to reduce the daily and cumulative impacts to orcas and requires the DFW to involve the public, industry, and other interested parties in any rulemaking process. The DFW must include rules regarding the number of commercial whale watching operators that may view Southern Resident orcas at the same time.
    • Requires the DFW to convene an independent science panel to review the most current and best available science regarding impacts to orcas by small vessels and commercial whale watching vessels.
    • The DFW's rule adoption requirements of the bill are subject to the availability of amounts appropriated.
  • Adds sustainable whale watching to the topics required in the statewide tourism marketing plan.

 

Effect of House Appropriations Committee amendment:

  • Requires, instead of authorizes, the DFW to adopt rules for commercial whale watching license holders for the viewing of Southern Resident orcas in the inland waters of Washington and removes the provision stating that such rulemaking is subject to appropriation.

Other policy bills

Toxic Pollution Prevention

SSB 5135 - Preventing toxic pollution that affects public health or the environment. (SB 5135 is now the vehicle for this legislation)

  • Requires the Ecology  to identify priority chemicals and priority consumer products.
  • Authorizes Ecology to make regulatory determinations regarding priority chemicals.
  • Requires Ecology to identify priority chemicals, priority consumer products, and make regulatory determinations every five years.

Status of SB 5135: The House passed SSB 5135 with the House Committee striking amendment, as amended on the floor, by a vote of 60-37 on April 15.The bill awaits a vote by the Senate on whether or not to concur in the House amendments. The two houses can decide whether to agree to one version or the other or they can decide to try to negotiate a mutually agreeable version.

 

Effect of Substitute SB 5135:

  • Requires the Ecology to identify priority chemicals and priority consumer products.
  • Authorizes Ecology to make regulatory determinations regarding priority chemicals.
  • Requires Ecology to identify priority chemicals, priority consumer products, and make regulatory determinations every five years.
  • Prohibits Ecology from designating as priority consumer products Federal Aviation Administration (FAA) or Department of Defense (DOD) regulated or certified finished products, parts, materials, and processes when used to manufacture or maintain FAA or DOD finished products, and motorized vehicles.
  • Requires Ecology to consult with the Department of Health (DOH) when designating priority chemicals and products and when making regulatory determinations.
  • Requires Ecology to provide opportunity for review as well as comment on regulatory determinations.
  • Requires Ecology to notify the public of the peer-reviewed science and other sources of information relied upon in selecting priority chemicals and products.

Effect of House Environment & Energy Committee Striking Amendment:

  • Requires Ecology to cite, publish, and categorize the sources of information that it relied upon, including peer-reviewed science, in the course of taking significant new agency action under the new authority established by the bill, in a manner consistent with the existing requirements for significant agency action taken by Ecology water quality and shorelands and environmental assistance programs.
  • Requires Ecology to report to the Legislature whenever designating priority chemicals, priority consumer products, or making regulatory determinations.
  • Delays the effective date of the designation of priority chemicals, priority consumer products, and regulatory determinations until the end of the regular legislative session immediately following that action by Ecology.
  • Delays the effective date of rules adopted by Ecology to implement determinations of regulatory actions to restrict the manufacture, sale, or use of a chemical in a product until 365 days after the adoption of the rules.
  • Requires Ecology to form a stakeholder process to provide expertise, input, and a review of the activities related to priority chemicals in priority consumer products.
  • Requires Ecology to determine if safer alternatives are feasible and available, in addition to meeting one of four other criteria, in order for Ecology to make a regulatory determination to restrict priority chemicals in priority consumer products.
  • Requires Ecology to identify expected costs and benefits to government agencies and to private persons or businesses when adopting rules to implement regulatory determinations regarding priority chemicals in priority consumer products.
  • Requires Ecology to prepare a small business economic impact statement consistent with the Regulatory Fairness Act for each rule to implement a regulatory determination that requires a manufacturer to provide notice of the use of priority chemicals or that restricts or prohibits the manufacture, sale, or use of a priority chemical in a priority consumer product.

 

Fish Passage Barrier Removal

HB 1187/SB 5567 - Revising hydraulic project eligibility standards under RCW 77.55.181 for conservation district-sponsored fish habitat enhancement projects. Removes the requirement that conservation district-sponsored fish habitat enhancement projects determined to be eligible for streamlined review follow design standards established by the Washington Conservation Commission through an interagency agreement with the United States Fish and Wildlife Service and the Natural Resource Conservation Service. Instead, conservation district-sponsored fish habitat enhancement projects determined to be eligible for streamlined review must be approved by conservation districts.

 

Status of HB 1187: No action was taken before the deadline, so the bill is likely dead.

 

Status of SB 5567: The bill is on the  Senate Second Reading Calendar and is likely dead.

 

HB 1228/SB 5130 (OFM request) – Increasing transportation revenues to help fund state fish barrier removal.

  • Imposes a graduated Real Estate Excise Tax (REET) beginning July 1, 2019.
  • Moves up the effective date of certain vehicle weight fees.

Status: The Senate Transportation Committee had a public hearing for SB 5130 on February 6. House Finance Committee was relieved of HB 1228 on April 2 and the bill was referred to House Transportation Committee, where it had a public hearing on April 5.

 

HB 1691 – Concerning funding and administering local government infrastructure by the public works board.

  • Specifies that public works projects may include natural or green infrastructure.
  • Allows up to one percent of the biennial capital budget appropriation for the Public Works Board to be for value planning grants.
  • Ends deposit of Refuse Tax into Education Legacy Trust Account June 30, 2019, instead of June 30, 2023.
  • Prioritizes the Refuse Tax that is deposited into the Public Works Assistance Account, from fiscal year 2020 through fiscal year 2030, for grants to address fish barriers.

Status:  House Capital Budget Committee passed Substitute HB 1691 on February 26 and the bill is now in the House Appropriations Committee, but is likely dead for the session.

 

HB 1889/SB 5136 – Establishing the water infrastructure program.

  • Establishes a competitive water infrastructure grant program for projects that promote increasing the availability of water for out-of-stream uses, reducing the risk of flooding, improving fish passage, or reducing stormwater pollution from existing development.
  • Requires the Office of Columbia River, the Office of Chehalis Basin, the Fish Barrier Removal Board, and Ecology to review applications based on specified criteria.
  • Establishes three appropriated accounts for the Water Infrastructure Program.
  • Expresses legislative intent to provide $500 million per biennium to the Water Infrastructure Program.

Status:  House Capital Budget Committee had a public hearing on HB 1889 February 21. Senate Agriculture, Water, Natural Resources, & Parks Committee had a public hearing on SB 5136 January 29. No further action was taken and the bills are likely dead for the session.

 

HB 2022 – Providing funding options to local governments for addressing fish passage barrier removals. Creates the Local Barrier Partnership Account and corresponding competitive grant program to fund the public portion of certain public-private fish passage barrier removal projects.

 

Status: The bill is in House Rules Review and is likely dead for the session.

 

SB 5404 (by Senator Rolfes) – Expanding the definition of fish habitat enhancement projects. Fish habitat enhancement projects restoring native kelp and eelgrass beds, and restoring native oysters, may qualify for a streamlined administrative review and approval process.

 

Status:  Senate passed SB 5404 on a vote of 44 to 0 and the House passed it on a vote of 93 to 0. The has now been signed by the President of the Senate.

 

SB 5788 (by Senator Mullet) – Local infrastructure funding - Solid Waste taxes to be deposited into the public works assistance account and be prioritized for grants to address fish barriers as recommended by the fish passage barrier removal board. The Public Works Board/Commerce would serve as grant manager.

 

Status:  The bill is in the Senate Ways & Means Committee and is likely dead for the session.

 

SB 5798 (by Senator Schoesler) – Relating to providing a sales and use tax exemption for construction and repair costs associated with fish barrier removal. Prioritizes deposits into the public works assistance account for grants to address fish barriers consistent with the comprehensive strategy to maximize habitat value of culvert correction investments and infrastructure projects in support of housing development.

 

Status: The bill is in the Senate Ways & Means Committee and is likely dead for the session.

 

SB 5972 (by Senator Hobbs) – Relating to additive transportation funding and appropriations – Includes:

  • $350 million of Forward Washington Account appropriation must be used for removal of fish culverts using a watershed approach to maximize habitat gain by replacing both state and local culverts. Requires use of this funding to replace the culvert impacted by the US 101/Lower Hoh Road Intersection Improvements project in the 2019-2021 Biennium.
  • $50 million of this appropriation must be used for storm water retrofits and improvements.

NOTE: SB 5971 creates the sources of revenue for this account, including a carbon fee of $15 per metric ton of CO2 generated by use of fossil fuels except those used to generate electricity.

 

Status: Substitute versions of both SB 5971 and SB 5972 passed out of the Senate Committee on Transportation on March 6. SSB 5972 is now in Senate Rules 2 Review. SSB 5971 is now in Senate Ways & Means Committee, no action has been taken since March 7.

 

Effect of Substitute SB 5971: Reduces carbon fee to $10 for utilities, but stays at $15 for remaining entities.

 

Effect of substitute SB 5972: Modifies various appropriations, but not those for fish culvert removal nor those for storm water retrofits and improvements.

 

SB 5978 (by Senator King) – Relating to vehicle taxation. Transfers revenue from Motor Vehicle Excise Tax to state General Fund and specifies purposes for which it may be spent, including watershed fish passage barrier removal.

 

Status:  The bill is in the Senate Ways & Means and is likely dead for the session.

 

Environmental Justice

SB 5489 - Establishing a healthy environment for all by addressing environmental health disparities. Also known as: “Healthy Environment for All” (HEAL) (Note: HB 2009 was introduced in substantially the same form as the substitute version of SB 5489.)

  • Creates a task force to recommend various strategies for incorporating environmental justice principles into how specified agencies discharge their responsibilities.
  • Requires certain state agencies to conduct a cumulative impact analysis to identify highly impacted communities.
  • Requires Ecology to engage in rulemaking to implement task force recommendations.

Status of SB 5489: The Senate passed the bill on a vote of 27 to 21 and the House State Government & Tribal Relations passed the bill with a striking amendment on March 28. The House Appropriations Committee passed the bill with an amended House Committee Striking Amendment on April 8, and the bill is now in House Rules 2 Review. 

 

Effect of Substitute SB 5489:

  • Removes requirement that state agencies adopt rules as recommended by the task force.
  • Removes the requirement that the task force reconvene five years after state agencies adopt rules.
  • Requires state agencies to adopt the cumulative impact analysis for the purposes of identifying highly impacted communities.
  • Provides that the task force provide guidance to agencies, the Legislature, and the Governor regarding how to use the cumulative impact analysis and designating highly impacted communities.
  • Requires the DOH to initiate a process to develop model policies for implementing task force recommendations.
  • Requires state agencies to submit a report on progress made towards reducing environmental burdens and attaining environmental health targets.

Effect of Second Substitute SB 5489:

  • Three members are added to the task force to represent the interests of tribes, business and organized labor.
  • The task force and its activities are made subject to the availability of amounts appropriated specifically for the task force.

Effect of amended House Committee Striking Amendment:  

  • Modifies the definition of "cumulative impact analysis" to mean the analysis tool used by the DOH's Washington Tracking Network to identify certain populations, rather than the analysis identifying certain populations.
  • Requires the task force to submit a preliminary report to the Legislature and the Governor by December 1, 2019, if the task force is not able to complete the tasks required under the bill as a result of insufficient funds appropriated.
  • Requires the preliminary report to include information on: (a) Tasks that could not be completed as a result of in sufficient funds appropriated; (b) the status of the task force's activities; and (c) additional resources the task force needs to complete all of the requirements reflected under the bill.
  • Modifies language pertaining to an agency's requirement to adopt the cumulative impact analysis to clarify that state agencies must adopt the use of the cumulative impact analysis, and if the task force issues guidance on how to use it, then the agencies must adopt it consistent with the task force's guidance.
  • Modifies the requirement that the DOH initiate a process to provide uniform rules, policies, or guidelines within 60 days after the issue of the task force's guidance related to the cumulative impact analysis to specify that the DOH is only required to do so if the task force issues guidance on how to use the cumulative impact analysis.

Effect of House striking amendment to Engrossed HB 2009:

  • Creates a task force of 21 members, subject to the availability of amounts appropriated, to recommend strategies for incorporating environmental justice principles into how state agencies that are represented on the task force discharge their responsibilities.
  • Requires the task force to submit a final report to the Legislature and the Governor by October 31, 2020, that includes its findings and recommendations such as guidance for state agencies when adopting rules, policies, or guidelines regarding how to use the cumulative impact analysis and identify highly impacted communities.
  • Authorizes the task force to include, if time and resources permit, additional various recommendations in its final report.
  • Requires the task force to submit a preliminary report to the Legislature and the Governor, by December 1, 2019, that includes certain information, if the task force is not able to complete the required tasks under the bill because of insufficient funds appropriated.
  • Requires that the task force hold four regional meetings to seek input and receive feedback from, and present their work plan and proposals to, communities throughout the state.
  • Specifies that state agencies may not adopt rules, polices, or guidelines as required or authorized under the bill until the Legislature approves the recommendations of the task force through the amendment of the chapter created under this bill or through specific reference in an appropriations act.
  • Requires state agencies that are represented on the task force to use all practicable means and measures to promote environmental justice and fair treatment.
  • Requires the state agencies that are represented on the task force to notify the Governor's Interagency Council on Health Disparities (Council) and submit a report to the Legislature upon the adoption of rules, policies, or guidelines related to the cumulative impact analysis.
  • Requires the state agencies that are represented on the task force to report to the Governor, Council, and Legislature one year after the effective date of the adopted rules, policies, or guidelines, and two years thereafter, on the progress made towards reducing disproportionate environmental burdens and attaining environmental health targets.
  • Specifies that standards or requirements established under state or federal laws preempt the recommendations of the task force, to the extent that the task force's recommendations are in conflict with state or federal laws.
  • Specifies that the act does not create an entitlement to services or private right of action or claim.
  • Includes a null and void clause.

Status of HB 2009:The House passed Engrossed HB 2009 with a striking amendment on a vote of 88 to 10 on April 17. Since the House and Senate passed two different bills, it is unclear whether one of these bills or the other will be considered exempt from the cutoff resolution.

Other bills the Partnership is monitoring

ESSB 5322 – Ensuring compliance with the federal clean water act by prohibiting certain discharges into waters of the state.

Status: Senate passed Engrossed Substitute SB5322 on a vote of 30 to 17 and the House Environment & Energy Committee passed the bill with an amended striking amendment on March 28. The bill is now on the House Second Reading Calendar, but no action was taken before the deadline, so the bill is likely dead.

Effect of Substitute SB 5322:

  • Prohibits motorized or gravity siphon aquatic mining or discharge of effluent from such an activity within the ordinary high water mark of certain waters of the state.

Effect of House committee striking amendment:

  • Removes a reference to ordinary high water mark within definition of motorized or gravity siphon aquatic mining.
  • Adds dredging operations undertaken by a diking or drainage district formed under Title 85 RCW to the list of activities that are exempt from the provisions of the act.
  • Makes technical change in reference to federal Clean Water Act.
  • Makes technical change in definition of motorized or gravity siphon aquatic mining.

 

SB 5505 - Addressing the use of local stormwater charges paid by the department of transportation.

 

Effect of SB 5505:

  • Requires that local government utilities that charge stormwater fees to the Washington State Department of Transportation (WSDOT) may use the fees only for stormwater control facilities and best management practices that directly address runoff from state highways as opposed to all types of stormwater runoff.
  • Requires local government utilities to provide an expenditure plan and annual progress report before receiving the WSDOT stormwater fees.
  • The legislation would have indeterminate, but likely significant revenue losses for local governments. Based on conversations with local governments, these revenue losses could be anywhere between 50 to 100 percent of their current WSDOT funds. Due to time constraints, not all local governments could be contacted and not all those contacted could provide estimates. Two case studies, one of Snohomish County, another of the City of Vancouver, are provided below.
    • Potential revenue losses for Snohomish County:
      • By limiting the applicability of local government stormwater utility rates to a subset from the state highway system, Snohomish County estimates that, if enacted, this legislation would reduce Snohomish County's revenues from WSDOT by 90 percent to 100 percent; that is up to $562,000. This is because these WSDOT funds currently go toward addressing significant habitat, hydrologic, and geomorphic impacts to Snohomish County's watershed caused by the state highway system. Limiting consideration to a narrowly defined understanding of state highway runoff impacts that do not include state highway runoff impacts on a county's or city's habitat, hydrologic, and geomorphic environments would mean that Snohomish would not receive funds to address these issues.
    • Potential revenue losses for the City of Vancouver:
      • When the proposed RCW requirements were in place, the City of Vancouver was not eligible to receive over $1.2 million available in stormwater fees from WSDOT between 1998 and 2014. A number of factors contributed to that loss: projects were unable to gain approval from WSDOT, limited coordination impeded project development, permitting hurdles delayed project implementation, and requirements for proportionate cost sharing for projects. The location and topography of WSDOT right-of-way within city limits made it and would make it difficult to identify projects where WSDOT stormwater flow contribution could be quantified relative to other stormwater sources and provide a significant contribution to the total project cost for the City. For example, if the City were to construct million dollar stormwater treatment facility, the WSDOT portion might only be $100,000, under the proposed legislation. This would create a funding issue and compete with other priority projects within the City.

Status: The Senate passed the bill on a vote of 45 to 2. It was also passed by the Senate Transportation Committee on April 8 and the bill is now on the House Second Reading Calendar. No action was taken before the deadline, but the bill may considered “necessary to implement the budget,” which would mean it would remain alive until the end of the session.

 

SB 5873 – Concerning community forests

 

Effect of original bill:

  • Creates the Community Forest Grant Program and Community Forestland Account.
  • Authorizes state and local agencies, tribes, and qualified nonprofit organizations to apply for funds for the acquisition, development, and restoration activities of community forest projects.

Status of SB 5873: The Senate passed a  Second Substitute on a vote of 41 to 5. The bill is now in the House Rural Development, Agriculture, & Natural Resources Committee, where it was given a public hearing on March 19 and was scheduled for executive action on April 3, but no action was taken, so the bill is likely dead for the session.

 

Effect of First Substitute:

  • Replaces the Community Forest Grant Program and Community Forestland Account with a Community Forest Pilot Program at DNR.
  • Directs DNR, subject to available funding, to establish the pilot by including the highest scoring projects from a 2018 Capital Budget report containing a list of prioritized projects.
  • Requires DNR to report back on the pilot program every two years, and the pilot program expires June 30, 2025.

Effect of Second Substitute:

  • Changes management of the community forest pilot program from DNR to the RCFB.
  • Adds definitions for sponsors including state and local agencies, qualified nonprofit organizations, and tribes.
  • Specifies lands may not be sold or subdivided without prior approval from the RCFB.
  • Adds if lands cease to be used for a community forest, such lands shall be managed by DNR.