Category Archives: To Rules

HB2957

HB2957 – Regulating indirect sources under the Clean Air Act and reducing building emissions.
Prime Sponsor – Representative Fitzgibbon (D; 34th District; Seattle)
Current status – Introduced in the House Committee on Appropriations March 2nd and scheduled for a hearing and executive session the same afternoon at 1:30 PM. An amended substitute passed out of committee (at 1:50 AM…); referred to Rules.
Next step would be – Action by the Rules Committee.
Legislative tracking page for the bill.

Comments – There’s a staff bill analysis available.

The substitute’s additional definition of “indirect emissions” for the purposes of the act restricts them to emissions from “fuels” ; it also adds what seems like a vague and inadequate definition of “leakage”. It allows the Department of Ecology to get additional data from producers and distributors if that’s needed to calculate the indirect emissions it’s authorized to regulate. It rewrites the section on credits for biofuels to improve the prose, without changing the substance as far as I can see. It now specifies the energy-intensive and trade-exposed facilities that the Department can treat with special consideration, to the extent needed to prevent leakage, by using a list of industry classification codes. (It also specifies that the special consideration does not extend to their products.) The amendment adds an additional preemption, prohibiting local air authorities, cities and counties from adopting a clean fuels standard or low carbon fuel standard until January 1, 2023, if Ecology adopts a clean fuels standard or low carbon fuel standard by January 1, 2021.

Summary –
The bill responds to the recent Supreme Court decision holding that Ecology didn’t have the statutory authority to regulate fossil fuel production and distribution through the Clean Air Act because that didn’t authorize it to regulate indirect emissions. The bill revises the definitions of emissions to specify both direct and indirect ones, and explicitly authorizes Ecology and local air authorities to use the Act to regulate the emissions from the production and distribution of any product in the state emitting over 25,000 tonnes a year of greenhouse gases, and of all fossil fuels.

It requires Ecology to adopt a rule, taking effect after October 1, 2021, that specifies emission thresholds for regulated sources. It authorizes Ecology to collect fees to cover the administrative costs of the program, to rely on market-based mechanisms including bankable tradeable credits to achieve emission reductions, and to provide special consideration for energy-intensive and trade-exposed industries, but only to the extent necessary to address leakage. Ecology is to provide biofuels with credits that adjust their obligations to take account of the difference between their lifecycle emissions and those of whatever fossil fuels they’re expected to replace. If it regulates direct or indirect emissions sources other than fossil fuels, it has to provide a mechanism for using credits or offsets from forest carbon sequestration in meeting those obligations.

The bill directs the Utilities and Transportation Commission to allow timely recovery of prudent and reasonable compliance costs by utilities.

It would delay implementing the 2018 residential energy code until July 1, 2022, if the Legislature provided policies and funding for existing residential retrofit programs that produced larger greenhouse gas emissions reductions.

It prohibits any local caps, taxes or fees on greenhouse gas emissions, and any local restrictions on natural gas infrastructure in new buildings until 2023.

It would make the new Clean Air Act authority null and void if a more comprehensive program that put a price on greenhouse gas emissions and was forecast to achieve the State’s targets were enacted.

SB6586

SB6586 – Imposes a per mile fee on electric and hybrid vehicles.
Prime Sponsor – Senator Saldaña (D; 37th District; Seattle) (Co-Sponsors Hobbs, Liias, and Conway)
Current status – Had a hearing in the Senate Committee on Transportation January 29th. Substitute by the prime sponsor passed out of committee February 10; referred to Rules.
Next step would be – Action by the Rules Committee.
Legislative tracking page for the bill.

Comments –
The proposal would charge an plug in car owner driving an average amount, say 11,000 miles, $385 a year if they only drove on electricity, plus the gas tax on any fuel they used when they weren’t relying on the battery. It would charge a hybrid owner $220 a year plus the regular gas tax.

The substitute leaves the fees to be specified in future legislation, or according to the recommendations in the plan if the Legislature doesn’t do that. It adds options for variable rates to the items the plan’s to cover, and extends the fee to State light vehicles. The plan would no longer have the Transportation Commission serve in a policy role that ensures independent oversight, reporting to the Legislature, and appropriate public input; it leaves the Department of Transportation as the lead agency in charge of administering and operating the system. (It’s not clear from the language whether this is only during a transition plan, while the bill leaves the ultimate long term role of the Commission open, or if this is to be ongoing…)

Transportation Choices has a flyer about road use charges.

Summary –
Starting January 1st 2024, the bill would charge plug-in vehicles that can go thirty miles or more on the battery three and a half cents per mile, and other hybrids two cents a mile, in addition to other fees and taxes. The proceeds would have to be used for road preservation and maintenance.

By December 1, 2021, the Department of Transportation and the Transportation Commission would develop a plan for imposing the fee, incorporating the ongoing work of the Commission evaluating road usage charges. It would have to include:
(a) Different mileage reporting options;
(b) Recommended methods and rates for achieving cost efficiency, fairness, minimal administrative cost, payment compliance, consumer choice, and preserving individual privacy;
(c) Alternatives to allow for monthly or quarterly payment;
(d) Any recommended statutory changes, including suggested offsets or rebates to recognize other taxes and fees paid by electric and hybrid vehicle owners;
(e) Recommendations to align the system better with other vehicle charges and to establish a potential framework for broader implementation of a per mile funding system, including analysis of the preferred method for addressing Eighteenth Amendment considerations; and
(f) A recommended implementation and governance structure under which the Department would operate the system, but the Commission would ensure independent oversight, appropriate public input, and report to the Legislature.

SB6432

SB6432 – Bans offshore oil projects and any oil or gas infrastructure on shorelines of statewide significance.
Prime Sponsor – Senator Rolfes (D; 23rd District; Bainbridge Island)
Current status –
In the Senate (Passed)
Amended and passed by the Senate Committee on Environment, Energy & Technology January 30th. Referred to the Senate Rules Committee. Amended by the prime sponsor on the floor and passed the Senate February 17th.

In the House –
Referred to the House Committee on Environment and Energy; had a hearing February 25th. Passed out of committee February 27th; referred to Rules.
Next step would be – Action by the Rules Committee.
Legislative tracking page for the bill.

Comments – The staff notes on the amendment say it clarifies the bill’s prohibition; I think the summary below is still right. (The sponsor’s amendment on the floor simply adjusted the bill’s descriptions of covered areas to match other statutory references.)

Summary –
The bill prohibits offshore drilling for oil or gas. It prohibits leasing state aquatic lands, tidelands, or submerged lands on the Pacific coast for purposes of oil or gas exploration, development, or production, or for infrastructure to handle extracted oil and gas transported through state waters off the coast. (The actual language in the bill is about “state waters associated with the outer continental shelf”; I’m not sure how much ocean this includes, but I think the definition in the bill extends to the 200 mile limit.)

It prohibits infrastructure for handling or transporting extracted gas and oil on the Shorelines Management Act’s shorelines of statewide significance.

SB6172

SB6172 – Revives B&O tax exemption for Bonneville funds utilities spend on low-income bill assistance or weatherization.
Prime Sponsor – Senator Braun (R; 20th District; Cowlitz & Lewis Counties)
Current status – Had a hearing in the Senate Committee on Environment, Energy & Technology January 28th. Passed out of committee February 6th, and referred to Ways and Means. Had a hearing there on February 20th; passed out of Ways and Means February 28th. Referred to Rules.
Next step would be – Action by the Rules Committee.
Legislative tracking page for the bill.
HB2505 is a companion bill in the House.

Comments –
A similar exemption was created by the Legislature in 2010 and expired in June 2015. In the 2018 session, Senator Hobb’s SB6323 proposed reviving it through 2029, but the bill died in the Ways and Means Committee. (At that point, the fiscal note estimated that the bill would reduce the general fund by $600,000 in the first biennium, and $1.2 million per biennium going forward.)

Summary –
The bill creates a permanent exemption from the B&O tax for funds utilities receive from the Bonneville Power Administration as credits against contracts or for energy conservation or demand-side management, provided that they use that money for bill assistance or weatherization for low-income customers, and that it’s an addition to what they would be spending in any case.