Category Archives: Vetoed

HB2848

HB2848 – Extends the sales and use tax exemption for hog fuel to 2045.
Prime Sponsor – Representative Chapman (D; 24th District; Clallam County) (Co-Sponsors Orcutt, Tharinger, Walsh, Blake, Tarleton, Springer, Maycumber, Fitzgibbon, and Lekanoff)
Current status – Vetoed by the Governor.
In the House – (Passed)
Had a hearing in the House Committee on Finance February 6th; passed out of committee February 8th. Referred to Rules. Passed the House February 13th. House concurred in Senate changes March 11th.

In the Senate – (Passed)
Referred to the Senate Committee on Environment, Energy and Technology. Scheduled for a hearing February 20th; not heard. Had a hearing February 26th; replaced by a striker and voted out of committee February 27th. Referred to Ways and Means; had a hearing there on March 2nd. Passed out of committee March 9th; referred to Rules. Passed the Senate March 10th. Returned to the House for consideration of concurrence with Senate changes.
Next step would be – Signature by the Governor.
Legislative tracking page for the bill.
SB6665 is a companion bill in the Senate.

Comments –
The tax preference statement for the bill says it’s “the legislature’s specific public policy objective to extend the expiration date of these tax preferences in order to increase the ability of beneficiary facilities to provide at least seventy-five percent of their employees with medical and dental insurance and a retirement plan.” I don’t know if that actually requires facilities to do anything to meet that objective…

Summary –
The law currently exempts hog fuel used to produce electricity, steam, heat, or biofuel from the sales and use tax until 2024. The bill extends that tax exemption to 2045.

The striker only extends the exemption to 2034, and it specifies that the retirement plans mentioned in the intent statement include defined benefit plans, defined contribution plans, and employee investment plans with employer contributions.

HB2722

HB2722 – Requires increasing recycled content in plastic beverage containers.
Prime Sponsor – Representative Mead (D; 44th District; Everett and Marysville) (Co-Sponsors Fitzgibbon, Peterson, Doglio, Goodman, Gregerson, Slatter, Tarleton, Davis, Duerr, Ramel, Walen, Cody, Senn, Pollet)
Current status – Vetoed by the Governor.
In the House – (Passed)
Had a hearing in the House Committee on Environment and Energy February 3rd. Amended substitute passed out of committee February 6th. Replaced by the prime sponsor’s striker on the floor and passed by the House February 13th. On March 7th, the House refused to concur in the Senate’s amendments; bill returned to the Senate, which may recede from the amendments. On March 11th, the House concurred in the Senate’s new version.

In the Senate – (Passed)
Referred to the Senate Committee on Environment, Energy & Technology. Scheduled for a hearing February 20th at 10:00 AM, but not heard. Had a hearing February 25th. Replaced by a striker and passed out of committee February 27th. Referred to Ways and Means, and had a hearing there on February 29th. Passed out of committee March 2nd and referred to Rules. Passed by the Senate March 5th, and returned to the House for concurrence.  On March 10th, as I understand it, the Senate receded from its previous changes, replaced the bill with a new striker which was amended on the floor, and then passed that version. The new version went back to the House for possible concurrence.
Next step would be – Signature by the Governor.
Legislative tracking page for the bill.
SB6645 is a companion bill in the Senate.

Comments –
The bill doesn’t currently seem to say that manufacturers have to report the number of their containers covered by the bill to Ecology each year, though that’s assumed in other sections.

In the House –
The substitute reduces the requirement for the first four year period from 15% to 10%. It shifts from assessing fines per container for violations to fines per pound; they would now be from $0.5 to $0.15 per pound when manufacturers have at least seventy-five percent of the required recycled content; from $0.10 to $0.20 per pound when they have between fifty percent and seventy-five percent of that; from $0.15 to $0.25 per pound when they have between twenty-five and fifty percent of it; from $0.20 to $0.30 per pound  when they have at least fifteen percent but less than twenty-five percent of it; and $0.25 to $0.30 when they have less than fifteen percent of the required recycled plastic. (There’s about a pound of plastic in ten 2-liter bottles or in forty-five single serving bottles, so a fine that was one cent per container or ten cents for the 2-liter bottles would now be between $0.15 and $0.25, but a fine that would have been $0.45 for the single bottles would now still be between $0.15 and $0.25.)

The substitute also gives manufacturers room to negotiate with Ecology about other things besides the size of the fines, requiring the Director to consider whether the minimum recycled content requirements should be waived or reduced at least once a year, and requiring the Department to consider equitable factors in deciding whether to assess a fee and its amount including the nature and circumstances of the violation; actions taken by the manufacturer to correct it; the manufacturer’s history of compliance; and its size and economic condition. (In addition, it directs Ecology to consider granting a waiver, reduction, or extension of the fees to a manufacturer that has demonstrated progress toward meeting the requirements if it hasn’t met them or anticipates that it won’t be able to.) The amendment merely exempts wine pouches and bladders from the requirements.

The striker limits the containers the bill covers to bottles. It moves the initial compliance date back to 2022, and makes minor adjustments in some other time periods. It adds emissions associated with the transportation of recycled plastic to the items Ecology is to take into account. It now specifies that Ecology must consider equitable factors in decisions about fines; adds consideration of whether violations were due to circumstances beyond the manufacturer’s reasonable control or were unavoidable; and limits the use of fines to supporting the State’s new recycling development center.

In the Senate –
The committee striker makes minor technical adjustments, and moves the date at which manufacturers become subject to fines for failing to meet the requirements back a year, to January 1, 2023.

The new striker removes some ambiguity about when manufacturers become subject to fees for violations, gives the Pollution Control Hearings Board authority to review appeals of fees and of any adjustments of recycled content rates, and makes some technical changes. The floor amendment preempts local authority to implement recycled content requirements for plastic beverage containers.

Summary –
The bill requires increasing in the average annual level of post-consumer recycled plastic in a manufacturers’ beverage containers, beginning with at least 15% in the period between the beginning of 2021 and the end of 2024. The requirement goes up to 25% from January 2025 through the end of 2030; increases to 50% from then to the end of 2034, and is 75% after that.

It requires manufacturers’ to report to the Department of Ecology each year on the percentages of virgin plastic and recycled plastic in the containers they sold or distributed in the state during the previous year. They’re subject to the following fines (adjusted for inflation) if they fail to meet the requirements:
(a) $0.0025 for each container when they have at least seventy-five percent of the required recycled content;
(b)$0.005 for each container when they have between fifty percent and seventy-five percent of that;
(c) $0.01 for each container when they have between twenty-five and fifty percent of it;
(d) $0.015 for each container when they have at least fifteen percent but less than twenty-five percent of it; and
(e) $0.02 for each container when they have less than fifteen percent of the required recycled plastic.
Ecology’s authorized to conduct audits and inspections and there’s an additional penalty of $1.15/pound for any over-reporting of recycled content it discovers through those or some other means.

The bill doesn’t apply to polycoated cartons, foil pouches, drink boxes, refillable plastic beverage containers, infant formula, medical containers, or others Ecology decides to exempt.

SB6430

SB6430 – Establishing a statewide industrial waste coordination program.
Prime Sponsor – Senator Brown (R; 8th District; TriCities)
Current status – Vetoed by the Governor.
In the Senate – (Passed the Senate)
Passed out of the Senate Committee on Environment, Energy & Technology January 22nd. Referred to Ways and Means; Had a hearing there February 10th at 10:00 AM. Passed out of Ways and Means February 11th. Referred to Rules; passed the Senate unanimously February 17th.

In the House – (Passed the House)
Referred to the House Committee on Environment and Energy; had a hearing February 24th. Passed out of committee February 27th; referred to Appropriations. Passed out of there and referred to Rules March 2nd. Passed the House March 6th.
Next step would be – To the Governor for signature.
Legislative tracking page for the bill.

Summary –
The bill would establish a statewide industrial waste coordination program to support and coordinate existing collaborations where underutilized resources of one company, such as waste, by-products, residues, energy, water, logistics, capacity, expertise, equipment, and materials are used by another company, and would support new opportunities for such industrial symbiosis projects.

The program would be administered by the Department of Commerce to provide expertise, technical assistance, and best practices to support local industrial symbiosis projects; it would be managed regionally, with a dedicated facilitator and technical and administrative support for each region.

The program would be required to develop inventories of current industrial waste innovation; generate a material flow data collection system to capture and manage data on resource availability and potential synergies provided voluntarily; establish guidance and best practices for emerging local industrial resource hubs; identify access to capital in order to fund projects; develop economic and environmental performance metrics for industrial or commercial hubs; host workshops and connect regional businesses, governments, utilities, research institutions, and other organizations to identify opportunities for resource collaboration; assist organizations throughout the life cycle of projects, from identification of opportunities to full implementation; develop economic cluster initiatives to spur growth and innovation; and make any additional recommendations to the legislature in order to incentivize and facilitate industrial symbiosis.

If funds were appropriated, the program would be authorized to establish a program offering competitive grants for researching, developing, and deploying local waste coordination projects. Grants could be used for existing industrial symbiosis efforts by public or private organizations; emerging opportunities including projects arising from the industrial waste coordination program established by the act, conceptual work by public utilities on redirecting their wastes to productive use, or existing inventories or project concepts involving converting specific biobased wastes to renewable natural gas; research on product development using a specific waste flow; feasibility studies to evaluate potential biobased resources; or feasibility studies for publicly owned utilities evaluating shifting to multiutility operations or potential symbiotic connections with other regional businesses. Grants would be limited to under $500,000, would require a one-to-one match from nonstate funds, would have to be distributed geographically, and would be awarded considering factors such as time to implementation and scale of expected economic or environmental benefits.

The bill extends the current legislation exempting some financial, commercial, and proprietary information from public disclosure to cover this program.

HB2248

HB2248 – Enhances opportunities to participate in community solar projects.
Prime Sponsor – Representative Doglio (D; 22nd District; Thurston County)
Current status – Vetoed by the Governor.
In the House –  (Passed the House)
Had a hearing in the House Committee on Environment and Energy January 16th. Replaced by a substitute, amended, and passed out of committee February 4th; referred to Appropriations. Had a hearing there February 10th; passed out of Appropriations February 11th. Referred to Rules; returned to Rules on February 26th. Replaced with a striker by the prime sponsor on the floor and passed out of the House February 27th. House concurred in Senate changes March 12th.

In the Senate – (Passed the Senate)
Referred to the Senate Committee on Ways and Means; had a hearing there on March 2nd. Replaced by a striker and voted out of committee March 9th. Referred to Rules. Passed by the Senate March 11th and returned to the House for consideration of concurrence in the changes.
Next step would be – Signature by the Governor.
Legislative tracking page for the bill.
(SB6223 is a companion bill in the Senate.)

Comments –
There’s a staff summary of the changes on page 7 of the House Bill Report on the substitute.

Interestingly, Republican Representative DeBolt, from Lewis County, is a cosponsor of this bill. (Transalta plans to put a 180MW solar project on their reclaimed coal mine site near Centralia, in his district, to complement its nearby Skookumchuck wind project, and there’s now considerable local interest in developing other renewable energy projects.)

The amended House substitute provides participating utilities an additional credit against their  taxes each year of the larger of 0.0025% of their sales or $50,000.

There’s a staff summary of the changes made by the House striker on its last page. They include extending the enrollment period for the program by five years, to 2031; expanding potential subscribers to include tribal and public agencies serving low-income communities; creating a biennial cap of $5 million to spread the available funding out over time, distributed among utilities in proportion to their retail sales; and establishing a target cost of $3/watt for projects, which the WSU extension service administering the program can review and adjust each biennium. It also drops the net metering provisions.

There’s a staff summary of the changes made by the Senate Ways and Means striker on its last page. (It’s in the folder for the bill on the page with the committee materials for the meeting.) As I read the striker’s new language about compensation, on p. 19:
It limits the portion of the one-time initial payment for administrative costs to the startup costs for the qualifying subscribers rather than paying for all the costs of administering those memberships.
It now says that the other portion of the initial payment is “not to exceed” the cost of the proportion of the project providing benefits to qualifying subscribers rather than saying it’s to equal that.
It reintroduces net metering for community solar projects of up to 100 kWs behind the meter, but only for the customer being billed for that meter, rather than providing virtual net metering for all subscribers.
It says that “For all other community solar projects, compensation must be determined at a value set by the participating utility and paid to the administrator or subscribers according to the agreement between the project and the utility.”
It also requires the Energy Office to allocate the incentive funds among participating utilities in an equitable way, and clarifies a few other details.

Summary –
The bill extends the expiring community solar incentive program, retaining many of its provisions, but it would allow subscribers who invest in a project to get net metering payments from their share of it in the same way they would if the panels were on their own roofs. (With net metering, you get a credit at the retail rate on your bill each month for the electricity your share of the project produced, so it’s as if the utility was not charging you for that power, and you can carry that credit forward if you have a surplus and use it to reduce later bills. (The credits are only good until the end of each year, though, so you don’t want to subscribe for more power than you’ll use in that time.)

The bill would also extend the $0.10/kWh production incentive credit that the current program ended with to all the subscribers of projects that had at least 40% of their subscriptions from any combination of low-to-moderate-income households and low-to-moderate-income service providers like housing authorities and food banks. The incentives would last for eight years; subscribers could receive up to 50% of the cost of their share of the project from them. However, the bill would provide an additional $0.10/kWh incentive credit to the low-to-moderate-income households; they would also be eligible to get production incentives for up to 100% of their costs. (These are defined as customers with up to 115% of the household median in their area. Average household median income for the state is about $64,000, though it varies a lot.)  (In addition, the bill would also allow utilities that created community solar projects to meet requirements for energy assistance to low-income households under the Clean Energy Transformation Act by not charging for or discounting  part or all of the costs of those subscriptions; they could also retain the RECs associated with the production of power from these shares of a project.)

As I read the bill, service providers can subscribe to projects, but aren’t eligible for the additional incentive. One of these organizations has to certify the income status of each of the low-to-moderate income households subscribing, which sounds as if it may not be attractive to people in that category who aren’t currently depending on those services. Projects can’t be bigger than one thousand kilowatts; at least 40% of all the subscriptions have to be for less than twenty kilowatts; and no customer can subscribe to more than 40% of a project. (However, customers can subscribe to more than one project, but not for more than their total estimated annual usage, or for more capacity than 100 kW AC.)

Details –

The bill would stop certifying projects under the current incentive program at the end of June 2020. Projects could apply for precertification under the new program for six years, between the first of July 2020, and the end of June 2026. (They’d get another two years to complete them; but as I read the bill they wouldn’t be eligible for the incentives. The previous two sentences may not be right; I don’t think the bill’s current language is consistent about how the timetables for projects and incentives relate toward the end of the period.)

Utilities can currently receive annual tax credits (up to the greater of 1.5% of their 2014 sales or $250,000) for community solar production incentives if they choose to provide them; for projects under the new program that are certified by the end of June 2026, the bill increases that to the greater of 1.75% of sales or $300,000. Total incentives under the new program are capped at $20 million.