Week 5, Washington State Legislative Report

By Diana Carlen
Lobbyist, Washington Association of Wheat Growers

Feb. 16 marked the 35th day of the legislative session. There is less than a week to go until the first big deadline for policymakers. Feb. 21 is the deadline for when all bills must have advanced out of their policy committee, or else they are likely dead for the session. Bills that have a certain fiscal impact must then go through one of the fiscal committees. A similar deadline arrives Feb. 28, when bills with fiscal impacts must be passed out of fiscal committees. Keep in mind that tax bills and other legislation deemed necessary for the state budget are not subject to these deadlines.

Agricultural Fuel Exemptions (House Bill 1912), sponsored by Rep. Tom Dent (R-Moses Lake), seeks to ensure that farmers receive the exemptions they were promised under the Climate Commitment Act for fuel used for agricultural purposes. The bill is supported by the governor and has bipartisan support from a couple dozen legislators. The bill requires the Department of Ecology to adopt rules to establish a remittance program for suppliers and users of agricultural and farm fuels exempt from Climate Commitment Act. The bill also makes the temporary exemption for fuels used to transport agricultural products on public highways permanent. A public hearing was held in the House Environment & Energy Committee on Feb. 13. Everyone who testified on the bill supported the intent of the bill, but there were questions on how the remittance program would be implemented. Testifiers also wanted to ensure that the mechanisms in place currently to allow farmers to receive the exemption at point of sale remain in place as well and that the remittance is for transactions where there has not been a fix applied.

Improving Recycling Rates/EPR Bills: As previously reported, there are once again two competing recycling bills before the legislature. Rep. Fey’s recycling bill (Substitute House Bill 1071) passed out of House Environment & Energy Committee unanimously this past week. By contrast, Rep. Berry’s bill (Substitute House Bill 1150) and Sen. Liz Lovett’s bill (Senate Bill 5284) establishing an extended producer responsibility program passed out of their respective committees on a party line vote with all the Republicans on the committee voting against it. SSB 5284 and SHB 1150 were amended in committee with exemptions for agriculture. One, they exempt agricultural employers with less than $5 million, adjusted annually for inflation, in gross revenue in Washington from consumer sales of agricultural commodities under the employer’s brand name. Second, it was amended to state that farmers that produce agricultural commodities under the brand or trademark of another person are not eligible to be contractually assigned responsibility as a producer for another person who would otherwise be the producer of a covered material. The fate of these bills is currently unclear.

Road Usage Charges (House Bill 1921), sponsored by Rep. Jake Fey (D-Tacoma), establishes a road usage charge (RUC) system to replace declining fuel tax revenues with mileage-based fees. Starting in 2027, owners of electric and hybrid vehicles could voluntarily start paying 2.6 cents for every mile they drive. In exchange for participating, those vehicle owners would not have to pay registration fees. In 2029, it would become mandatory for those drivers, and optional for drivers with cars that get more than 20 mpg. In 2031, those drivers would have to enroll. Eventually all private vehicle owners would have to participate. Commercial trucks and vehicles weighing more than 10,000 pounds would be exempt. House Bill 1921 was heard in the House Transportation Committee on Feb. 13.  Over 20,000 people signed in of which 19,836 signed in opposed compared to 270 in support.

Minimum Wage Increase & Vacation/Bereavement Leave (Senate Bill 5578/House Bill 1764), would raise the minimum wage to $25 an hour by 2031 and also mandate paid vacation and bereavement leave. A higher minimum wage would also raise the salary threshold for overtime-exempt employees, requiring many more employers to start paying overtime. Both bills received hearings this past week in their respective labor committees. The business community is vehemently opposed to these bills as Washington state already has the highest minimum wage in the country.

Environmental Justice Integration (House Bill 1303), sponsored by Rep. Sharlett Mena (D-Tacoma), requires the integration of environmental justice considerations into decision making for projects impacting pollution-burdened communities. The bill requires lead agencies to prepare environmental justice impact statements for new projects, expansions, or permit renewals in these areas starting Jan. 1, 2027. These statements must evaluate potential environmental and public health stressors, existing burdens, and unavoidable adverse impacts. The bill also exempts certain clean energy and national security projects. The bill passed out of the House Environment & Energy Committee on a party-line vote on Feb. 11 and has been referred to the House Appropriations Committee.

Supply Chain Infrastructure (House Bill 1860), sponsored by Rep. Julia Reed (D-Seattle), establishes the Washington State Supply Chain Competitiveness Infrastructure Program to enhance the state’s global trade competitiveness by funding and prioritizing supply chain infrastructure projects. The program, administered by the Department of Transportation (DOT) in collaboration with stakeholders such as the Department of Commerce, public ports, tribal governments, and industry representatives, will provide grants and loans to public ports and tribal governments with public port operations. A dedicated account in the state treasury will fund the program, with appropriations aligned to specific goals, including improving freight system efficiency, supporting economic and environmental benefits, and mitigating community impacts from freight traffic. Eligible projects must align with a port’s freight development plan, and the DOT will establish performance metrics and evaluation criteria to prioritize investments. The bill was heard in the House Technology, Economic Development, & Veterans Committee on Feb. 14.

Workplace Monitoring Regulations (House Bill 1672), sponsored by Rep. Shelley Kloba (D-Kirkland), establishes regulations on the use of electronic monitoring and automated decision systems (ADS) by employers in Washington, effective July 1, 2026. The bill restricts electronic monitoring to specific purposes, such as job function assistance or legal compliance, and prohibits its use in private areas or off-duty activities. It also regulates ADS use, requiring human oversight for employment decisions and mandating impact assessments to address risks like discrimination or privacy violations. Employees are granted rights to data access, protection from retaliation, and restrictions on monitoring of personal devices. The bill was heard in the House Labor & Workplace Standards Committee on Feb. 11.

Workplace Immigration Protections (Senate Bill 5104), sponsored by Sen. Bob Hasegawa (D-Seattle), penalizes employers who use threats related to immigration status to coerce employees into actions that violate their legal rights, particularly in the context of wage and labor conditions, including laws related to agricultural labor. The bill defines coercion and threats in detail, establishes a complaint process through the Department of Labor and Industries, and sets civil penalties ranging from $1,000 for a first violation to $10,000 for subsequent violations, with each act considered a separate offense. Penalties will be adjusted for inflation starting in 2028, and funds collected will be deposited into the supplemental pension fund. The bill passed the Senate on Feb. 12 by a vote of 40-9.

Yakima Basin Water Plan Extension (Substitute Senate Bill 5031), sponsored by Sen. Judy Warnick (R-Moses Lake), extends the water supply milestone for the Yakima River Basin Integrated Plan from June 30, 2025, to June 30, 2035. This extension allows additional time to secure permits and funding for water supply facilities designed to provide at least 214,000 acre-feet of water for both instream and out-of-stream uses. The bill also updates related deadlines for cost-benefit reviews of large water projects and land management plans under the community forest trust to align with the new milestone date. The bill passed out of the Senate unanimously on Feb. 12.

Turfgrass Seed Contracts (Senate Bill 5074), sponsored by Sen. Matt Boehnke (R-Kennewick), proposes amendments to the Revised Code of Washington to define and regulate contracts specific to the turfgrass seed industry. The bill introduces new definitions, including “seed grower,” “seed producer,” and “seed production contract,” and clarifies that “turfgrass seed” encompasses specific types of grass seed used for turf, excluding forage fescue and reclamation grass seed. It also exempts turfgrass seed production and purchase contracts from certain restrictions on agricultural contracts, such as prohibitions on relinquishing involvement in sale timing decisions.

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