Week 4, Washington State Legislative Report

By Diana Carlen
Lobbyist, Washington Association of Wheat Growers

We have completed the fourth week of the 2025 Washington State Legislative Session. Feb. 8 marked day 27 of the 105-day session. Committee hearings were the prime focus this week, but there was some floor action as well. We are less than two weeks away from our first major deadline — policy committee cutoff. Feb. 21 is the deadline for bills to be voted out of their policy committee to remain under consideration this session.

This past week, Gov. Ferguson issued an executive order forming a Data Center Workgroup to discuss the impacts of data centers on Washington state’s economy, tax revenue, energy use, and the environment. The workgroup is tasked with considering policies that balance industry growth, tax revenue needs, energy constraints, and sustainability. The Department of Revenue will lead the workgroup. The workgroup will include representatives from the Department of Commerce, the Utilities and Transportation Commission, the Department of Ecology, electric utilities, environmental advocacy groups, labor organizations, industry stakeholders, and others, as designated by the Office of the Governor. A report by the workgroup is due by Dec. 1, 2025.

The upcoming week will see a hearings on a bill (Senate Bill 5578) to incrementally raise the minimum wage to $25 by 2031 and a bill (House Bill 1912) seeking to ensure that farmers receive their exemption for fuel used for agricultural purposes under the Climate Commitment Act.

Reporting Cattle Methane Emissions (House Bill 1630), sponsored by Rep. Lisa Parshley (D-Olympia), requires each owner or operator of a dairy farm or feed lot to report the annual metric tons of methane emitted from the farm or feed lot to Ecology from the preceeding year. For the first report, the owner or operator may estimate the total annual emissions by multiplying the average total monthly emissions over a consecutive three-month period within the calendar year covered by the report. The department must adopt rules, including a reporting schedule that provides reasonable lead time for the first report. The industry is concerned that this legislation sets the foundation of what could possibly lead to a per head cow tax in the coming years. The bill had a public hearing in the House Environment & Energy Committee on Feb. 6. Over 1,500 individuals signed in “opposed” to the bill. The dairy industry is arguing that this legislation should not move forward this session, and instead stakeholders should meet during the interim to come up with ideas on how to use Climate Commitment Act funds to research methane reduction technology.

Hydrofluorocarbon Emissions Reduction (House Bill 1462), sponsored by Rep. Davina Duerr (D-Bothell), requires the phasing out of high-global warming potential (GWP) hydrofluorocarbons (HFCs) and transition to low-GWP alternatives. The bill prohibits the sale or distribution of virgin HFCs with a GWP exceeding 2,200 starting in 2027, with stricter thresholds of 1,500 by 2030 and 750 by 2033, while allowing exemptions for reclaimed HFCs and federally permitted uses. It establishes a Refrigerant Transition Task Force to study barriers and opportunities for transitioning to low-GWP refrigerants and mandates state agencies to prioritize reclaimed refrigerants in servicing equipment by 2026. The Department of Ecology is authorized to adopt rules to implement these changes and grant temporary exemptions for technical or economic infeasibility. A public hearing was held in the House Environment & Energy Committee on Jan. 30, and the committee passed the bill out on Feb. 4 with amendments including delaying the 2027 hydrofluorocarbon (HFC) global warming potential (GWP) limit of 2,200 from 2027 until 2029 and eliminating the authority for the Department of Ecology (Ecology) to prohibit the use of stockpiled refrigerants that exceed GWP limits.

Farmer Conservation Incentives (House Bill 1019), sponsored by Rep. Shavers (D-Oak Harbor), creates a tax credit for farmers participating in conservation programs in Washington state. Starting Jan. 1, 2026, the bill offers a 25% tax credit on eligible expenditures such as new equipment, infrastructure, seeds, and animal feed, aimed at promoting environmental conservation practices among farmers. To qualify for this incentive, farmers must either receive grants from or participate in programs run by the Washington State Conservation Commission. The credit is nonrefundable but can be carried forward for two years if not fully utilized. The bill was heard in the House Finance Committee on Feb. 6.

Layoff Notification and Benefits Protections (Senate Bill 5525), sponsored by Sen. Annette Cleveland (D-Vancouver), establishes state-specific requirements for employers regarding notice and benefits for employees impacted by business closures or mass layoffs. The bill mandates that employers with 50 or more employees provide at least 60 days written notice to affected employees, their bargaining representatives, and the Employment Security Department (ESD). It also requires continuation of group health insurance coverage for up to 120 days and imposes civil penalties of up to $500 per day for failure to notify the ESD. The bill supplements the federal WARN Act by adding state-specific requirements, such as liability for back pay and benefits for noncompliance. A public hearing was held in the Senate Labor & Commerce Committee on Feb. 5.

PFAS Testing of Biosolids (Senate Bill 5033), sponsored by Sen. Jeff Wilson (R-Longview), requires Ecology to establish PFAS chemical sampling or testing requirements for biosolids. By July 1, 2028, Ecology must complete an analysis of the levels of PFAS chemicals in biosolids produced in Washington state. By Dec. 1, 2028, the department must submit a report to the appropriate committees of the legislature with recommendations on how to proceed based on the analysis. While the bill does not impact agriculture, we are monitoring it. A public hearing was held in the Senate Environment, Energy & Technology Committee on Feb. 7.

Organic Agriculture Expansion (Senate Bill 5474), sponsored by Sen. Marko Liias (D-Lynnwood), directs the Department of Agriculture to develop an Organic Agriculture Action Plan by June 1, 2027, to address barriers to organic certification, expand markets, and support underrepresented communities in agriculture. It also establishes a microgrant program for producers implementing climate-smart practices, with priority given to projects benefiting overburdened communities. Additionally, the bill allows for adjustments to organic certification fees to reduce financial barriers. A public hearing was held in the Senate Agriculture & Natural Resources Committee on Feb. 3.

Agritourism Tax Relief (Senate Bill 5479), sponsored by Sen. Marko Liias (D-Lynnwood), expands permissible incidental uses of open space land to include agritourism activities while providing tax relief for landowners. The bill defines agritourism activities as recreational, educational, or entertainment events on farms, such as festivals, weddings, and produce stands, provided they are incidental and do not exceed 20% of the total classified land. It also reduces the financial penalties for removing land from its current use classification by shortening the additional tax calculation period from seven years to four years and allowing waivers or refunds of certain taxes and penalties. A hearing was held in the Senate Agriculture & Natural Resources Committee on Feb. 3.

Premerger Notification Requirements (Senate Bill 5122), sponsored by Sen. Yasmin Trudeau (D-Tacoma), establishes a state-level premerger notification process requiring entities subject to the federal Hart-Scott-Rodino Act to submit copies of their filings to the Washington Attorney General if they meet specific criteria, such as having a principal place of business in Washington or significant sales within the state. The bill aims to enhance state oversight of mergers and acquisitions by ensuring the Attorney General has access to relevant information, while maintaining strict confidentiality protections and allowing limited information-sharing with other states and federal agencies. Noncompliance may result in civil penalties of up to $10,000 per day. The bill passed the Senate on Feb. 5 by a vote of 30-19.

Wage Replacement Program for Excluded Workers (Senate Bill 5626), sponsored by Sen. Rebecca Saldaña (D-Seattle), establishes a state-level wage replacement program for workers ineligible for unemployment insurance, including undocumented workers. The program, set to launch on Jan. 1, 2027, will provide weekly benefits for up to 26 weeks, funded through a new employer surcharge starting at 0.01%. The Employment Security Department will oversee the program, contracting with a third-party administrator to handle applications, benefits, and outreach. The bill was heard in the Senate Labor & Commerce Committee on Feb. 4.

Riparian Program Review (Senate Bill 5384), sponsored by Sen. Perry Dozier (R-Waitsburg), directs the Joint Legislative Audit and Review Committee (JLARC) to conduct a comprehensive review of Washington State’s riparian programs. The review will include an inventory of state-funded riparian programs, an evaluation of their effectiveness, and recommendations to improve access, reduce administrative burdens, and enhance program outcomes. JLARC is required to submit a preliminary report by Dec. 1, 2025, and a final report by June 1, 2027, with the section expiring on July 1, 2028. The bill was heard in the Senate Agriculture & Natural Resources Committee on Feb. 6.

Conservation District Funding (Senate Bill 5510), sponsored by Sen. Sharon Shewmake (D-Bellingham), amends RCW 89.08.405 to cap the amount counties may deduct from conservation district rates and charges for administrative costs. Under the bill, counties can deduct either the actual administrative costs incurred or 1% of the amount collected, whichever is lower, ensuring that conservation districts retain a greater portion of their funding. A public hearing was held in the Senate Ways & Means Committee on Feb. 4.

Commercial Driver’s License Standards (Senate Bill 5464), sponsored by Sen. Curtis King (R-Yakima), directs the Washington State Department of Licensing to align state CDL processes with federal motor carrier safety standards regarding domicile and immigration status. The bill requires the department to update relevant administrative rules, provide regular training for staff handling CDL applications, and develop educational materials for applicants, CDL holders, and training schools. A public hearing was held in the Senate Transportation Committee on Feb. 3.

Sustainable Farms and Fields Program Updates (Senate Bill 5391), sponsored by Sen. Sharon Shewmake (D-Bellingham), revises the Sustainable Farms and Fields Grant Program by modifying eligible uses of grant funds, updating prioritization criteria, and refining carbon metrics. The bill eliminates funding for compost spreading equipment and scientific studies on greenhouse gas emissions from crop residues, instead allowing grants to support projects that reduce carbon dioxide equivalent emissions through energy efficiency or reduced fuel use. It also updates the timeline for revising the carbon equivalency metric, requiring the use of a 100-year storage equivalency metric until the update occurs. A public hearing was held in the Senate Agriculture & Natural Resources Committee on Feb. 3.