Week 7, Washington State Legislative Report

By Diana Carlen
Lobbyist, Washington Association of Wheat Growers

The Legislature has completed the seventh week of session. Friday, Feb. 28 was the 47th day of the 105-day session. The focus of the past week was on fiscal and transportation committees working late into the night hearing hundreds of bills with fiscal impacts and holding executive session to pass out bills. Friday, Feb. 28th also marked the second major deadline of the legislative session — fiscal cutoff. Any bills having a fiscal impact that did not move out of their fiscal committee are now considered dead for this session. Exceptions to this rule are bills considered Necessary to Implement the Budget (NTIB), like those that include new taxes. In total, 730 bills have survived the first two legislative deadlines and are still alive this session. You can find a full list here.

Over the next several days, the Legislature will focus on passing bills out of their house of origin (House bills out of the House; Senate bills out of the Senate), and legislators will spend most of their time on the House and Senate floor or in caucus debating bills. The deadline to pass bills out of the house of origin is 5 p.m., Wednesday, March 12, 2025.

Budget discussions are also ramping up. On Feb. 27, Gov. Ferguson held a press conference to propose $4 billion in new reductions to the state budget upon his first scrub at the budget shortfall that Democrats estimate is between $12 to $15 billion. These savings are in addition to Gov. Inslee’s proposal, which reduced the shortfall by an additional $3 billion. Combined, those proposals reduce the shortfall by $7 billion. Ferguson is also proposing $300 million in savings by requiring most state employees to take one furlough day per month for the next two years, however, certain public employees such as state troopers and staff at prisons and hospitals would be exempt.

Whether the state needs additional revenue continues to be the big question this session, and Democrats believe new taxes are required for the 2025-2027 budget. House Democrats unveiled a new website to counteract a “no revenue” budget, which former Gov. Jay Inslee was required to prepare by law. The current budget shortfall estimate is between $12 billion to $15 billion. Republicans believe the budget shortfall is closer to $6.7 billion. Due to the shortfall, legislators are moving forward revenue proposals, but Gov. Ferguson has indicated that additional taxes should be a last resort, and it is too early in the budget process to discuss taxes. That said, there is an understanding that “no option can be off the table” as a budget is developed that eliminates the current shortfall. The next economic forecast will be released in mid-March. In Gov.Ferguson’s proposed budget, the identified savings total $3,926,404,000. The full list of Ferguson’s current proposals is available here for the supplemental budget, and here for the 2025-27 biennium.

Democrats and Republicans had different reactions to the Governor’s proposed budget. Democrats believe that reductions alone will not allow the state to sustain the services that people rely on, so they are advocating for an approach of spending cuts and raising revenue. Republicans were generally supportive of Ferguson’s approach to reduce spending and agree with the governor that taxes should be a last resort. Republicans blame Democrats’ spending for the state’s financial woes and say new taxes or tax hikes are unnecessary.

While Gov. Ferguson’s budget plan is part of discussions, it is the Legislature’s job to write the budget. It is expected that the Senate and House will release their proposed budgets shortly after the March 18 revenue forecast.

Below are notable bills that passed out of their fiscal committees this past week (i.e. Alive Bills):

  • Agricultural Fuel Exemptions (Substitute 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. On Feb. 28, the bill passed out of the House Appropriations Committee with the recognition that the bill is very much a work in progress. All stakeholders support the intent of the bill and agree that the bill should not disrupt current mechanisms in place that allow farmers to receive exempt fuel. One item that agricultural groups are working on is amending the bill to make the exemption for transporting agricultural products on public highways permanent. Another aspect of stakeholder discussions on the bill is that better education is needed for farmers to learn about current mechanisms in place that various distributors are offering to provide exempt fuel to agricultural users. We expect to see a new draft of the bill early next week.
  • Enhanced Producer Responsibility Program (EPR) (Second Substitute Senate Bill 5284/Second Substitute House Bill 1150), requires producers of certain product packaging to participate in and fund the operations of a producer responsibility organization (PRO) related to the postconsumer management of covered PPP and other recycling-related activities. The companion bills both passed out of their respective committees this week. Notably, the competing recycling bill being pushed by waste haulers, SHB 1071, was heard in the House Appropriations Committee but never brought up for a vote. The House Democrats still seem divided on their support between 2SHB 1150 and SHB 1071. House Republicans tend to prefer the approach in SHB 1071 so conceivably, aspects of SHB 1071 could have enough votes to pass the House if 2SHB 1150 is brought up for a vote of the full House.
  • Unemployment Benefits for Striking Workers (Substitute Senate Bill 5041), sponsored by Sen. Marcus Riccelli (D-Spokane), would allow workers who choose to go on strike to be eligible for unemployment insurance (UI) benefits. The business community is in strong opposition to this legislation because Washington’s UI system is designed to provide benefits to workers who lose their jobs through no fault of their own.
  • County Utility Tax Authorization (House Bill 1702), sponsored by Rep. Sharon Wylie (D-Vancouver), authorizes counties in Washington state to impose a public utility tax on businesses providing utility services. The bill permits counties to levy an excise tax up to 3% on the gross income of utilities, with the tax required to be itemized on consumer bills. The business community is strongly opposed to these additional tax increases. The bill passed out of the House Appropriations Committee with an amendment that would require 0.2% of the tax revenues be used for utility assistance for low-income residents.
  • Hydrofluorocarbon Emissions Reduction (Substitute House Bill 1462), sponsored by Rep. Davina Duerr (D-Bothell), phases-in, between 2030 and 2033, global warming potential (GWP) limits for virgin bulk hydrofluorocarbons (HFCs) entering commerce in Washington. It also directs the Department of Ecology to establish a refrigerant transition taskforce to complete a study by 2027 addressing the transition to low-GWP refrigerants, and requires Ecology to adopt rules based on the taskforce’s work to require low-GWP or ultra-low GWP refrigerants.
  • Environmental Justice Integration (Substitute House Bill 1303), sponsored by Rep. Sharlett Mena (D-Tacoma), would integrate environmental justice (EJ) considerations into certain projects by adding it as an element of the environment and a part of the SEPA checklist. The bill was amended significantly to simply require Ecology to undertake rulemaking to implement the environmental justice component and develop mitigation guidance.
  • Supply Chain Infrastructure (Senate Bill 5649), sponsored by Sen. Marko Liias (D-Lynnwood), 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.
  • Pesticide Safety Committee Extension (House Bill 1294), sponsored by Rep. Tom Dent (R-Moses Lake), extends the expiration date of the pesticide application safety committee from July 1, 2025, to July 1, 2035.
  • Clean Fuels Program (Substitute House Bill 1409), sponsored by Rep. Joe Fitzgibbon (D- Burien), proposes significant amendments to Washington’s Clean Fuels Program (i.e. Washington’s low carbon fuel standard for transportation fuels). The bill adjusts the reduction schedule to achieve a 45% decrease in carbon intensity by 2034. The bill was amended to specify that Clean Air Act civil and criminal penalties no longer apply to violations of the Clean Fuels Program, but establishes penalties and other enforcement powers specific to the CFP program. The bill also prohibits Ecology from increasing the carbon intensity standards beyond 20% beginning in 2030 unless Ecology determines that one new or expanded biofuel production facility has received a siting, operating, or environmental permit after Jan. 1, 2025.
  • Paid Family Leave Expansion (Second Substitute House Bill 1213), sponsored by Rep. Liz Berry (D-Seattle), expands worker protections under Washington’s Paid Family and Medical Leave program. Currently, small employers with fewer than 50 employees are exempt from providing job protection and health benefit continuation for employees on Paid Family and Medical Leave (PFML). This bill eliminates these exemptions. In addition, employees could begin utilizing the benefits after 180 days of employment (current law requires you to have worked for the employer for a year before utilizing the benefits). It also expands access to grants for small employers to offset the costs of employees’ use of leave in the PFML Program.
  • Auction Price Containment CCA (Substitute House Bill 1975), sponsored by Rep. Joe Fitzgibbon (D-West Seattle), amends price containment mechanisms related to the Climate Commitment Act (CCA) allowance markets, including setting the price ceiling for calendar years 2026 and 2027 at $80.
  • Annual Greenhouse Gas Emissions Reporting (Senate Bill 5036), sponsored by Sen. Matt Boehnke (R-Kennewick), seeks to improve the timeliness and accountability of Washington State’s greenhouse gas emissions tracking by requiring annual reporting instead of the current biennial schedule. Beginning in 2026, the Department of Ecology and the Department of Commerce would be mandated to provide total statewide emissions data for the preceding year by Dec. 31 annually. The bill also includes provisions to clarify emission reduction targets, maintain the inclusion of wildfire emissions in reporting, and exclude carbon dioxide emissions from biomass combustion under specific conditions.
  • Agritourism Tax Relief (Substitute House Bill 1261), sponsored by Rep. Sam Low (R-Lake Stevens), seeks to expand 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.

Notable bills that did make it out of fiscal committee before deadline (i.e. Dead bills):

  • Regulating Train Length (House Bill 1862), sponsored by Rep. Sharon Tomiko Santos (D-Seattle), would have prohibited railroads from operating a train that exceeds 8,500 feet in length in the state.
  • Grant Program for Seasonal Overtime (Senate Bill 5722), sponsored by Sen. Rebecca Saldana (D-Seattle), would have created a grant program, administered by the Employment Security Department, for certain farmers of handpicked specialty crops equivalent of eight weeks of their paid overtime hours during their peak harvest season, up to $40,000. To qualify for a grant, a farm must hire only domestic agriculture workers, be owned and operated by a state resident. grow handpicked specialty crops that are sold to consumers at local markets or sold or donated to local schools or food banks (local means within 250 miles of where specialty crop was grown). The bill was very narrow and would not have benefited many farms.
  • Shortline Rail Tax Incentives: HB 1058 / SB 5063: Sponsored by Rep. Andrew Barkis (R-Lacey) and Sen. Derek Stanford (D-Bothell), would have provided tax incentives for Class II and III railroads, as well as railroads owned by local governments.
  • Agricultural Economic Impacts (Substitute Senate Bill 5117), sponsored by Sen. Ron Muzzall (R-Oak Harbor), would have mandated the Office of Financial Management to establish a mechanism for the determination of the fiscal impact of proposed legislation which, if enacted into law, would directly or indirectly increase or decrease regulatory costs incurred by entities engaged in agriculture.
  • Wage Replacement Program for Excluded Workers (Substitute Senate Bill 5626), sponsored by Sen. Rebecca Saldaña (D-Seattle), would have established a state-level wage replacement program for workers ineligible for unemployment insurance, including undocumented workers. The program would have provided weekly benefits for up to 26 weeks, funded through a new employer surcharge starting at 0.01%.
  • Organic Agriculture Expansion (Substitute Senate Bill 5474), sponsored by Sen. Marko Liias (D-Lynnwood), would have directed 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.
  • Workplace Monitoring Regulations (Substitute House Bill 1672), sponsored by Rep. Shelley Kloba (D-Kirkland), would have established regulations on the use of electronic monitoring and automated decision systems (ADS) by employers in Washington, effective July 1, 2026. The bill restricted electronic monitoring to specific purposes, such as job function assistance or legal compliance, and prohibits its use in private areas or off-duty activities.
  • UI for Part Time Workers (Substitute House Bill 1682), sponsored by Rep. Lillian Ortiz-Self (D-Mukilteo), would have provided unemployment assistance to part time workers.

Leave a Reply