Template revised September 22, 2016.
COMMISSION
AGENDA MEMORANDUM
Item No.
11a
BRIEFING ITEM
Date of Meeting
May 23, 2023
DATE: May 16, 2023
TO: Steve Metruck, Executive Director
FROM: Pearse Edwards, Sr. Director External Relations
Clare Gallagher, Director, Capital Project Delivery
SUBJECT: 2023 State Legislative Session Review
EXECUTIVE SUMMARY
The purpose of this briefing is to provide the Port of Seattle Commission, Executive Director, and
Executive Leadership Team with a final report on the 2023 State Legislative Session, with specific
attention given to the Port’s 2023 State Legislative Agenda.
On Sunday, April 23, 2023, the Washington State Legislature adjourned, representing the end of
the 2023 105-day session. While legislators were able to pass three budgets and major milestone
legislation, in the final hours of session the Legislature rejected the compromise legislation
addressing the state’s drug possession law. After the Washington State Supreme Court struck
down the State's felony drug-possession law (the Blake Decision) during the 2021 legislative
session, lawmakers passed a quick fix to classify possession as a misdemeanor but refer people
to treatment before charging them. That law sunsets in July. Thus, the Washington State
Legislature reconvened in special session on May 16, 2023, introducing a new compromise
proposal that passed both chambers by the close of the day.
It was a good session for the Port of Seattle and NWSA, with bills such as the “2:1 match” and
SAF winning passage and funding secured for electric trucks, phase two of SR 509 and SR 167
(Gateway Projects), and Quiet Sound.
The Legislature approved a $69.3 billion two-year operating budget. No new tax increases were
included in the budget, though a tax on capital gains passed in 2021, a law upheld by the Supreme
Court in the midst of this session, will bring in about $1 billion over the next two years. The most
significant positive impact to the budget was the higher-than-expected revenue from the State’s
first carbon auction in the amount of $300 million in the first auction.
The Washington State House and Senate agreed on a nearly $13.5 billion transportation budget,
a plan that spends heavily on major highway construction already in progress, electrifying the
transportation sector, the state ferry system, climate-focused projects, and the court-mandated
fix of the State’s fish culverts.
COMMISSION AGENDA – Briefing Item No.11a Page 2 of 9
Meeting Date: May 23, 2023
Template revised September 22, 2016.
The Legislature also passed an $8.9 billion capital construction budget, with over $4 billion in
new bonds. Some highlights of spending include historic investments in affordable housing and
homelessness, money for behavioral health treatment centers, and k-12 construction. The plan
also leaves $95.4 million in spending for next year.
On Tuesday, May 16, 2023, the Governor signed the 2023-25 Capital, Operating and
Transportation Budget bills. While Governor Inslee acknowledged the important investments in
the Transportation Budget, he expressed his continued frustration and concerns that the budget
underfunds preservation and “over promises” on new projects. Governor Inslee’s letter to House
and Senate Transportation leaders is included as an attachment to this memo.
Only a few bills that we were advocating for failed to pass. These bills were the WRAP Act, a bill
pertaining to changes to recycled materials; a civil asset forfeiture bill that the Port worked with
Rep. Hackney on to add an amendment; and transit-oriented development. It is important to
note that any bill introduced this session that failed to pass will automatically be reintroduced in
next year’s short legislative session.
The memo below provides a high-level overview of issues the Port supported, monitored, or
otherwise engaged on, and their status at the end of the 2023 legislative session.
Staff will be joined at the Commission briefing by our contract lobbyists, Trent House and Brooke
Davies, and Eric ffitch, Executive Director of the Washington Public Ports Association.
SUCCESS FOR PORT PRIORITIES:
Sustainable Aviation Fuels (SAF) legislation (SB 5447 and HB 1505): The Port of Seattle was part
of a coalition of aviation and clean fuel production entities who worked with Senate Majority
Leader Andy Billig to advance this bill. The legislation incentivizes in-state production and use of
sustainable aviation fuels and requires that the Department of Ecology elevate SAF to a Tier 1
fuel pathway; and a potential amendment to the LCFS statute to give that type of a fuel a
“multiplier” in the credit market.
The bill also requires that:
• Washington State University must convene an Alternative Jet Fuels Work Group to further
the development of alternative jet fuels as a productive industry in the state. Membership
includes legislators and sectors involved in alternative jet fuel research, development,
production, and utilization.
• The University of Washington, in collaboration with Washington State University,
calculate emissions of ultrafine and fine particulate matter and sulfur oxides from the use
of alternative jet fuel compared to conventional fossil jet fuels at SEA, including potential
regional air quality benefits of any reductions, beginning in December 2024.
COMMISSION AGENDA – Briefing Item No.11a Page 3 of 9
Meeting Date: May 23, 2023
Template revised September 22, 2016.
The bills passed both chambers with strong bipartisan support. Governor Inslee signed the bill on
May 3
rd
. The law becomes effective on July 23
rd
.
Shorepower: On July 1, 2023, the Washington State Department of Transportation will receive
its allocation of $29m for grants to port districts to support decarbonization work. While two port
projects – in Seattle, Bremerton, and Anacortes—received direct appropriations, all other ports
are eligible to apply for funding under this section. WPPA will be working with WSDOT to develop
the grant program and will be in touch with members with more information as soon as details
become available. Additionally, the Transportation Budget included $14 million for the zero
emission shorepower infrastructure demonstration project at Northwest Seaport Alliance
facilities.
Clean Trucks: The Transportation budget included $20 million for an early action grant program
for zero-emission commercial vehicle infrastructure demonstration projects, $6.3 million for a
zero-emission drayage truck demonstration project at the NWSA, and $33.7 million for
charging/refueling along priority corridors, which while not specific to clean trucks, could be
beneficial.
“2 to 1 Match” bill (HB 1086)– Rep. Shavers (D-10, Mt. Vernon), introduced a bill amending the
RCW to increase local governments’ ability to contract with community service and non-profit
organizations. The Port’s goal was to reduce the required non-profit match for those grants, as
well as include port districts in the legislation. This required an amendment during Senate
consideration to accomplish our goals. With the blessing of labor, the prime sponsor, the
committee chair, and the WA Recreation & Park Association, a striking amendment was drafted
and adopted. The bill passed both chambers with overwhelming support. Governor Inslee signed
the bill on May 2
nd
, with Commissioner Mohamed present. The law will go into effect on July 23
rd
.
Clean Energy Siting: HB 1216, sponsored by Rep. Fitzgibbon, seeks to streamline permitting and
siting of clean energy facilities in Washington by creating: a new designation for clean energy
projects of statewide significance; a new coordinated permitting process; and development of
non-project environmental impact statements for certain clean energy projects. The bill was
signed on May 3
rd
. The law goes into effect on July 23
rd
.
Trafficking: Legislation (SB 5114) passed both chambers with only one dissenting vote to create
a network of hearing, support, and transition services for adults 18 and older with lived
experience of sex trafficking. Funding for the resource centers in the amount of $5.7 million is
included in the final Operating budget.
Child Care Facilities: HB 1199 (Rep. Senn, D-41, Mercer Island) would allow for childcare facilities
in common interest communities (e.g. condominium complex or HOA-administered facilities).
The bill passed both chambers. Governor Inslee signed the bill into law on May 1
st
and the bill
became effective upon his signature.
COMMISSION AGENDA – Briefing Item No.11a Page 4 of 9
Meeting Date: May 23, 2023
Template revised September 22, 2016.
Middle housing legislation: HB 1110 sponsored by Rep. Bateman (D-22, Olympia) as introduced
would have allowed cities with a population of at least 6,000 or a city near an urban growth area
with a population of more than 200,000 to increase density in residential areas typically
dedicated to single-family detached housing. The Port supported the legislation as it alleviates
pressure to build housing on industrial lands.
The bill was amended to allow different classes of multi-plex housing depending on the
population of the jurisdiction. For cities with population of 75,000 or higher – including Seattle
and Bellevue – it allows for four units per lot; six units per lot within 0.25 miles walking distance
of a major transit stop; and six units per lot if at least two units are affordable housing. Other
changes to the bill would allow local government to halt middle housing permits if the project
would negatively affect a local government’s water and sewer systems. The bill was signed into
law on May 8
th
and becomes effective on July 23
rd
.
Workforce Training:
Clean energy sector workforce training – The Port supported legislation to develop workforce
training programs in the clean energy sector. HB 1176 (Rep. Slatter, D-48, Bellevue) and SB 5247
(Sen. Nobles, D-28, Fircrest) creates the Washington Climate Corps network and directs the
state’s workforce training and education coordinating board to establish a committee to evaluate
clean energy workforce needs that would make recommendations to the Governor and
Legislature. The bill passed both chambers. $9 million was allocated to the program in the budget.
The bill was signed into law on May 3
rd
. The law goes into effect on July 23
rd
.
Apprenticeship Utilization - HB 1050,, sponsored by Rep. Ricelli, would require port public works
projects over $2 million to achieve 15% use of apprenticeships. Throughout session, WPPA
shared that ports strongly support apprenticeship utilization as an effective way to grow the
workforce but have concerns this legislation would become a barrier to all small businesses and
may limit the number of bidders interested in port projects. The legislature amended a study into
this bill which should help ports and other local governments prepare for this change. The
legislation will not take effect until 2024. The bill was signed into law on May 9
th
and becomes
effective on July 23
rd
.
Policing: HB 1240 (Peterson, D-21, Edmonds) – Governor and AG request legislation that will
prohibit the manufacture, importation, distribution, and sale of semi-automatic weapons such as
the AR-15. The Governor signed the bill on April 25
th
, becoming effective immediately upon
signing. Other measures that passed permit the state to sue the firearms industry for failures to
act responsibly and create a 10-day waiting period for firearm purchases.
Tourism: The Port strongly supported HB 1258, statewide tourism marketing, throughout the
session. The bill reduces the nonstate match requirement to 1:1 from 2:1 for expenditures from
the statewide tourism marketing account. Unfortunately, the bill’s initial funding of $26 million
was reduced to $9 million in the final budget. The whittling away of the proposed funding
COMMISSION AGENDA – Briefing Item No.11a Page 5 of 9
Meeting Date: May 23, 2023
Template revised September 22, 2016.
stemmed from the belief that tourists flock to the state already. The Governor signed the bill into
law on April 25, 2023, with the law becoming effective immediately.
Other tourism-related items in the state budget include $150.7 million for Outdoor Recreation
and Conservation and $81.6 million for State Parks.
CACC Replacement: The Commercial Aviation Coordinating Commission was formed pursuant to
legislation passed in the 2019 legislative session. Senate Bill 5370 was authored by Senator Karen
Keiser (D-33
rd
, SeaTac, Des Moines) and convened a large group process to identify the preferred
site for a next commercial service airport by January 1, 2022.
House Transportation Chair Fey introduced HB 1791 that will decommission the CACC’s role to
identify preferred sites for a new commercial airport. Instead, it submits a “progress report” to
the Governor and the Legislature on January 1, 2024, and “annually thereafter.”
The new committee’s work will have an expanded focus of a “coordinated look at transportation
system as a whole” and asks that it consider the “broader context of state transportation needs.”
The Port of Seattle would retain its seat on the committee. Moses Lake and Spokane airports will
also be represented. Citizen participation would increase from two to seven representatives from
both eastern and western Washington.
Upon passing the Legislature, the bill was delivered to the Governor’s office on April 20
th
. It awaits
final action by the Governor.
Derelict Aquatic Structures: SB 5433, Department of Natural Resources supported legislation,
will support ongoing work to remove derelict structures from waterways. The Port of Seattle staff
worked with WPPA, DNR, and Puget Sound Partnership staff to amend bill language to address
our collective concerns. The bill passed both chambers unanimously and signed into law on
May 1
st
.
FMSIB Reform: HB 1084 makes changes to the board, including the addition of four new
members while removing direct grant-making authority from the board. However, the legislature
funded nearly $30 million in board priorities this session, including $300,000 for the 2024 Marine
Cargo Forecast. This is the first funding FMSIB priorities have received in four years. The bill was
signed into law on April 25
th
.
Port Anti-Trust: HB 1257, sponsored by Rep. Hackney, will give ports that move cargo or
passengers the authority to continue meeting to discuss rates and charges and other best
practices for port operations. This bill extends the state’s antitrust protection to those ports and
responds to a recent shift in interpretation at the Federal Maritime Commission which called the
antitrust immunity of ports joining the Northwest Marine Terminals Association into question.
The bill was signed into law on May 9
th
and becomes effective July 23
rd
.
COMMISSION AGENDA – Briefing Item No.11a Page 6 of 9
Meeting Date: May 23, 2023
Template revised September 22, 2016.
Quiet Sound funding: The Port drafted and supported a $700,000 appropriation for Quiet Sound
in the upcoming biennium. Both chambers adopted this amount in the final operating budget.
MORE WORK TO BE DONE: Issues that we will work next year.
Transit-Oriented Development (TOD): SB 5466 sponsored by Sen. Liias would have required the
Department of Transportation to establish a completive grant program to help finance qualifying
housing projects within rapid transit corridors. The Port of Seattle has been supportive of
increased density in areas zoned for residential purposes if it relieves pressure to develop
industrial lands.
The bill received support from builders, environmentalists, and labor and passed the Senate in a
near unanimous vote. A House amendment that included an affordable housing clause split the
strange-bedfellow coalition supporting the bill. This conversation will continue over the interim
and the bill will be re-introduced next year.
Asset Forfeiture: HB 1385, a bill sponsored by Rep. Hackney, would amend seizure and forfeiture
procedures and reporting. The Port submitted and the House amended the bill to expand the
Port’s use of forfeited funds in its possession. Currently, RCW limits such uses to purposes of
illegal drug interdiction (e.g., the hiring of police officers assigned to illegal drug enforcement).
Updated language would expand usage of such funds for human trafficking and gun control
enforcement issues.
The bill failed to advance before the fiscal cutoff and did not move forward this session.
The bill faced challenges because no state agency wanted the enforcement authority to track
forfeited property. This includes the State Treasurer and the Washington State Patrol. Port staff
will work with the bill sponsor before the 2024 session to identify a state agency willing to serve
as the enforcement party. Since this is the first half of the biennium the bill will automatically be
reintroduced next session.
WRAP Act: (HB 1131/SB 5154): the Washington Recycling and Packaging Act (WRAP Act)
sponsored by Rep. Liz Berry and Senator Christine Rolfes was an attempt for the state to shift
responsibility for managing packaging and paper products (PPP) from local governments to
producers. This bill was important to the Port of Seattle because we rely on Washington’s
recycling system to help achieve our ambitious goal to divert at least 60% of our waste from
landfills through waste reduction and recycling programs.
Both bills passed their respective policy committees. The legislation ultimately died in both the
House and Senate due to fierce opposition from a variety of stakeholders including the solid
waste companies, hospitality, grocers, and pharmaceutical companies. This conversation will
continue over the interim as there was $500,000 included in the final operating budget to
COMMISSION AGENDA – Briefing Item No.11a Page 7 of 9
Meeting Date: May 23, 2023
Template revised September 22, 2016.
continue studying this issue. The bill will automatically be resurrected in the 2024 legislative
session.
BUDGET:
Operating Budget (SB 5187): The Operating Budget is a two-year plan that pays for the day-to-
day operations of state government, including K-12 schools, human services, higher education,
prison system, public safety, and more. The final budget appropriates $69.2 billion for the
biennium. It adds $4.7 billion in new spending, leaves approximately $3 billion in reserves, and
does not rely on new taxes or fees.
Notable investment include:
• Targeted Equity Investments: $496M
• Clean energy siting and permitting: $55.8M
• Establishing the Washington Climate Corps: $4.7 million
• Quiet Sound: $700K
• Maritime Core Plus Programs : $1M
• Resource centers for the adult victims of sex-trafficking: $5.7M
• Tourism: $9M
• Climate Commitment Act and Natural Resources
o $412 million in Climate Commitment Act investments
o $45 million for forest health and wildfire protection
o $39 million for biodiversity protection
o $36 million for salmon habitat and recovery
Capital Budget (SB 5200): The Capital Budget is the state’s construction budget, and typically
includes investments to state and local agencies for building and infrastructure projects, such as
public schools and universities, parks, prisons, but does not include transportation construction.
It operates over the same two-year period as the Operating Budget. The final budget authorizes
$9 billion in total budgeted funds, of which $4.7 billion is debt limit bonds for the 2023-25
biennium. The remaining amounts are $947 million in federal funds, $328 million in Model Toxic
Control Accounts, $717 million in Climate Commitment Accounts, $295 million in alternate
financing authorizations, $275 million in State Common School Construction Account, and $1.8
billion in all other funds. Approximately $95 million in bond capacity is reserved for a
supplemental capital budget.
Notable investments include:
• Grants for clean energy research, development, demonstration, and deployment
projects: $60M
• Grant program to reduce carbon emissions in hard-to-decarbonize sectors such as
aviation and maritime: $40M
• Ultra-fine Particle Monitoring: $400k
• Wildlife Recreation and Conservation: $150M
COMMISSION AGENDA – Briefing Item No.11a Page 8 of 9
Meeting Date: May 23, 2023
Template revised September 22, 2016.
• Natural Resources: $2.4 billion is invested in natural resource projects that collectively
address water quality and supply, salmon recovery, outdoor recreation and conservation,
state trust lands, state parks, air quality, and more. Major investments include:
o Water Quality: $779 million
o Salmon Recovery: $378.3 million
o Water Supply: $233.7 million
o Outdoor Recreation and Conservation: $150.7 million
o Toxic Cleanup and Prevention: $158.1 million
o State Parks: $81.6 million
o Carbon Sequestration Forests and Trust Lands: $110.1 million
o Air Quality: $56.6 million
• Local & Community Projects: $231 million, which funds over 325 community-based
projects.
• Home Electrification and Appliance Rebates Program (HEAR): $163 million
• Clean Energy Fund Grants: $60 million
• Large scale solar innovation projects: $39 million
• Local emission reduction projects and projects to reduce emissions in hard to decarbonize
sectors: $36.7 million
• Local Infrastructure:
o Public Works Trust Fund for infrastructure projects administered through the
Public Works Board: $400 million
o Low-interest loans to publicly and privately owned drinking water systems
through the Department of Health: $140 million
o State matching funds for the federal Broadband Equity, Access, and Deployment
Program: $50 million
Transportation Budget (HB 1125): The state’s transportation budget pays for both the day-to-
day operation of state transportation agencies and the construction and preservation of state
highways and roads. Most of the revenue that supports the transportation budget comes from
the state gas tax and permits, licenses, and other fees. The final budget appropriates $13.4 billion
and made significant investments towards major highway projects ($5.4 billion), the state’s ferry
system ($1.3 billion), and fish and culvert removal and repair ($1 billion). Notably, this is the first
year the state can utilize funding from the Climate Commitment Act that passed in 2021. Nearly
$1 billion will be used for projects that support conversion to zero-emission transportation.
Notable investments include:
• Port Electrification Competitive Grants: $29M
• Zero emission shore power infrastructure demonstration project at Northwest Seaport
Alliance facilities; $14M
• The Gateway Project (SR 167 and SR 509) Phase 2 construction: $874M
• SR 18 Widening: $57M
COMMISSION AGENDA – Briefing Item No.11a Page 9 of 9
Meeting Date: May 23, 2023
Template revised September 22, 2016.
ATTACHMENTS TO THIS BRIEFING
(1) OFM Letter
(2) Presentation slides
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
January 24, 2023 – Commission amendments approved for the 2023 State Legislative Agenda
November 8, 2022– The Commission approved for the 2023 State Legislative Agenda
October 25, 2022 – Commission Study Session for the 2023 State Legislative Agenda
