Template revised April 12, 2018.

COMMISSION

AGENDA MEMORANDUM

Item No.

11a

BRIEFING ITEM

Date of Meeting

November 19, 2024

DATE: November 19, 2024

TO: Stephen P. Metruck, Executive Director

FROM: John Flanagan, Senior State Government Relations Manager

SUBJECT: Draft 2025 State Legislative Agenda

EXECUTIVE SUMMARY

Since the end of the 2024 state legislative session in Olympia, staff from the Government Affairs

team has been working with subject-matter experts across the Port, members of the Executive

Leadership Team, staff from the Commission office, and the Commissioners themselves to

develop a draft legislative agenda for the 2025 legislative session.

This is the initial staff briefing for commissioners, with any proposed changes discussed in public

session to be adopted on December 10, 2024.

DRAFT 2025 State Legislative Agenda

In general, and across the entirety of the Port’s state-level advocacy, the Port will seek to support

state-level action that preserves local values. Those values include, but are not limited to, respect

for Tribal Sovereignty, protection of the environment and natural resources, adherence to

established labor standards, and the preservation of human rights.

Priority Agenda Items

Economic Development & Workforce

Encouraging Tourism

• Support industry-endorsed legislation where it aligns with Port goals, and an ongoing

operating budget allocation to establish a sustainable and competitive State Tourism

Program in Washington.

• Monitor the rollout of the Department of Natural Resources’ ‘Safe and Sustainable

Recreation’ program and support agency requests related to implementation.

• As necessary, pursue funding to get the region ‘World Cup ready’.

Green Jobs

• Advocate for additional and ongoing funding to support the State’s ‘Green Jobs &

Infrastructure’ Program.

COMMISSION AGENDA – Briefing Item No. 11a Page 2 of 10

Meeting Date: November 19, 2024

Template revised September 22, 2016.

Childcare Access

• Support policies and programming that increase access to and improve affordability of

childcare for parents that work primarily at a Port-owned or Port-controlled facility.

Support for Business & Innovation

• Advocate for the continuation or establishment of programs that champion innovation,

aid the global competitiveness of the region, and provide critical support to international

business.

Aviation

Shared Advocacy: StART Communities & the Port

Support the full set of shared State Policy Priorities developed by Port staff and the community

representatives of the SEA Stakeholder Advisory Round Table (StART) Committee. That list

includes:

• Effective implementation of the Noise Insulation Repair and Replacement Program;

• Making tangible progress towards identifying additional regional airport capacity;

• Sustaining existing State programs to enhance air quality;

• Maintaining and expanding sustainable aviation fuel (SAF) production and use in

Washington; and

• Decarbonizing ground transportation, reducing airport emissions, and supporting

electrification.

Sustainable Aviation Fuels

Similarly, support the full set of updated legislative recommendations from the WSU Alternative

Jet Fuel Work Group. Those recommendations include:

• Preservation of existing SAF incentives;

• Enacting new Property / Leasehold Tax Exemptions for SAF Facilities;

• Creating a SAF Infrastructure Grant Program;

• Amending an existing Construction Sales Tax Deferral program to include SAF facilities;

and

• Streamlining permitting processes for SAF facilities.

Continue to monitor any changes to the State’s Clean Fuel Standard to ensure that those changes

do not improperly disadvantage SAF production and use.

Aviation & Environment

Pursue inclusion of language in the biennial budget to direct the use of previously diverted

Aviation Fuel Sales Tax Revenue towards environmental cleanup efforts at airport facilities.

COMMISSION AGENDA – Briefing Item No. 11a Page 3 of 10

Meeting Date: November 19, 2024

Template revised September 22, 2016.

Continue to advocate for improvements to statewide sustainable waste management standards,

including by establishing new extended producer responsibility for packaging policy, elevating

minimum post-consumer recycled content requirements, and supporting organics management

and composting system improvements.

Actively oppose any efforts at the State level to impact or delay ongoing environmental analysis

of the Sustainable Airport Master Plan (SAMP).

Transportation

Revenue & Funding Models

Given major funding challenges across the entirety of the Transportation Budget, the Legislature

is likely to introduce several competing proposals aimed at addressing shortfalls this session.

Generally, the Port has supported transportation revenue and funding models that:

• Benefit freight mobility;

• Enhance competitiveness of the gateway;

• Prioritize multimodal transportation; and

• Continue the work of decarbonizing our transportation system and reducing local

transportation-related emissions.

In the coming session, the Port will advocate for well-balanced revenue proposals that create

funding capacity without impairing other priorities.

The Port will also support legislation to:

• Enable the use of ‘public-private partnership’ (P3) models to fund transportation

projects;

• Create a ‘supply chain competitiveness’ funding program benefitting ports; and

• Establish a new commute trip reduction grant program.

Major Transportation Projects

The Port will advocate for:

• Any legislative or budgetary changes that are necessary to ensure completion of the

Puget Sound Gateway Project without additional delays;

• Small, but meaningful, investments in projects recommended by the joint WSDOT/Port

of Seattle Corridor Study on SR 518 that was completed in 2020;

• Funding to support mitigation efforts related to the ongoing ‘Revive I-5’ project; and

• Preservation of existing transportation investments in high-speed rail.

Environment & Energy

COMMISSION AGENDA – Briefing Item No. 11a Page 4 of 10

Meeting Date: November 19, 2024

Template revised September 22, 2016.

Clean Energy Siting

The Port will:

• Continue to broadly support statewide efforts to site clean energy facilities, and will seek

to assess the feasibility of constructing and maintaining clean energy production facilities

for its own use;

• Seek to participate in legislative proposals related to the Department’s ‘Considerations

for Consolidating Clean Energy Permits and Applications’ report as well as the ‘Clean

Energy Siting Council’s Annual Legislative Report Draft Recommendations’ to reinforce

formal comments submitted to the State Department of Ecology in July;

• Ensure that funding is available for the work of the Blue Wind Collaborative to assess and

support the offshore wind supply chain;

• Advocate broadly for policy and budgetary solutions that benefit the construction of

transmission infrastructure and grid modernization and resiliency; and

• Support streamlining of the site certification process;

Sustainable & Decarbonized Maritime

Secure additional investment in the work of the Sustainable Maritime Fuels Collaborative, and

in close coordination with partner organizations, support all efforts to incentivize the production

and use of Sustainable Maritime Fuels (SMFs) in Washington. The Port will monitor existing and

emerging clean fuels policies to ensure that SMFs are broadly included.

Request additional and ongoing funds for the Port Electrification Grant Program (including a set-

aside benefitting shore power for cruise operations) and enacted Zero-emission Medium and

Heavy-Duty Truck (MHD ZEV) incentives and programming.

Stormwater

In partnership with the Northwest Seaport Alliance and the Port of Tacoma, support legislation

to establish a less onerous compliance pathway that affords protection from legal liability in

certain situations for regulated entities under the updated Industrial Stormwater General Permit

(ISGP).

Public Safety

The Port will continue to participate in discussions with the State Auditor’s office as they seek to

update the State’s system for civil asset forfeiture proceedings and outcomes. As in prior years,

the Port will continue to pursue legislation that gives the Port additional flexibility in the use of

revenue from civil asset forfeiture proceedings.

In partnership with relevant state agencies, the Port will assess, and pursue as necessary,

legislation to enable additional enforcement authority on roadways that are jointly monitored

and controlled by the Port and State.

COMMISSION AGENDA – Briefing Item No. 11a Page 5 of 10

Meeting Date: November 19, 2024

Template revised September 22, 2016.

Tax & Revenue

Support efforts by partner local governments to reform the state and local property tax, including

efforts to raise or eliminate the local property tax levy cap.

Continue to seek improvements to the state’s Tax Increment Financing (TIF) framework with the

overall goal of diminishing the Port’s possible exposure to revenue diversion.

Governance

Support joint efforts by the Public Ports Association, Association of Cities, and Association of

Counties to limit Public Records Act violations by local governments and special purpose districts

that are engaged in ‘good faith efforts’ to respond to records requests.

In direct response to the recent cyber-attack that continues to impact port operations, explore

opportunities to update emergency powers statutes to grant the Port expanded authority

comparable to other local government entities.

Legacy Issue Area 1: Economic and Workforce Development

Continue to support economic and workforce development proposals that are consistent with

Goals 1, 2, 3, 5, and 6 of the Port’s Century Agenda with a focus on policies and programs that

prioritize equity, foster innovation, and create quality and sustainable jobs in the region.

Advocacy will include support for:

• Partnerships that benefit the growth of port-related industries and expansion of state-

level worker training programs in those industries;

• Career-connected learning and work-based learning programs that seek to expose K-12

students to professions in port-related industries, including ongoing support for CORE

PLUS programming;

• Continuation and expansion of pre-apprentice and apprenticeship programs;

• Efforts to expand the trucking and logistics workforce, including increasing the supply of

Commercial Driver’s License (CDL) holders and drivers, with a specific focus on those

serving port operations;

• Programs that prioritize equitable recruitment, training, and retention of workers

representing diverse populations;

• Policy solutions that connect port-adjacent communities to economic opportunity and

‘prosperity-in-place’;

• The continued enforcement of responsible labor standards;

• Increased state-level investments to promote and grow the tourism industry in

Washington;

• Investments in broadband infrastructure and digital equity programming, including the

use of state funds as ‘match dollars’ for federal programs;

• Rural economic development initiatives, including those that benefit small manufacturers

and domestic manufacturing generally, investments in freight corridors serving rural

areas, rural tourism, and support for associate development organizations;

COMMISSION AGENDA – Briefing Item No. 11a Page 6 of 10

Meeting Date: November 19, 2024

Template revised September 22, 2016.

• Proposals that reduce structural barriers, prioritize equitable working conditions,

promote the success of small businesses, and benefit minority and women-owned

enterprises;

• The repeal of I-200, efforts to implement Executive Order 22-02, and outcomes resulting

from the ongoing work of the Governor’s Statewide Diversity, Equity, and Inclusion

Council;

• Statewide contracting practices and programs that increase flexibility for public owners

while also supporting small, minority, and women-owned businesses, and increasing

opportunity and access for those businesses;

• Creating state-level programs geared towards assisting businesses owned by woman,

minority, and veteran populations and rural small businesses that traditionally struggle to

access available public resources.

Continue to monitor and engage in legislative efforts regarding use of project labor agreements,

‘prompt pay’ requirements, and other emerging trends in labor relations.

Legacy Issue Area 2: Energy, Climate, Environment, and Habitat

Continue to support state-level policies regarding energy, environment, sustainability, climate,

and habitat that serve Goals 4 and 5 of the Port’s Century Agenda. Advocate for policy and

budgetary solutions that promote the adoption and implementation of clean energy, phase-

down the State’s reliance on fossil fuels, reduce emissions, and improve environmental

outcomes.

Advocacy will include support for:

• Promotion of the use of low- and zero-carbon fuels for transportation, providing low or

zero emission transit options, and otherwise aiding the continued reduction in the cost of

low- and zero-carbon energy sources;

• Policies that promote the use of clean energy technology, promote the development of

in-state renewable energy, build energy efficiency, and support a statewide reduction in

greenhouse gas emissions while enforcing statewide goals for clean power, and that can

be implemented in ways that leverage our state’s competitiveness, maintain the efficient

operation of essential public facilities such as airports and seaports, and support social

equity in the private sector;

• Proliferation of sustainable aviation fuels, including support for SAF infrastructure

programs and any necessary adjustments to existing incentives;

• Likewise, programs to support the proliferation of sustainable maritime fuels and other

non-emitting maritime technologies, including support for all necessary storage,

bunkering, and other infrastructure;

• On-dock decarbonization programs and incentives;

• Programs and policies geared towards ‘Scope 3 emissions’;

• Programs benefitting Puget Sound health, including water quality, habitat restoration,

cleanups, stormwater, underwater noise reduction, and programs related to Southern

COMMISSION AGENDA – Briefing Item No. 11a Page 7 of 10

Meeting Date: November 19, 2024

Template revised September 22, 2016.

Resident Killer Whale (SRKW) recovery, including support for additional Quiet Sound

funding;

• Maintaining funding for programs associated with the Model Toxics Control Act (MTCA)

that assist the Port in its efforts to promote environmental stewardship, including cleanup

grants, public participation grants to community organizations, and benefitting voluntary,

expeditious cleanup of habitat restoration and/or shoreline public access projects in

underserved communities;

• Streamlining and providing robust state funding for the Department of Ecology’s wetland

mitigation banking program so that cost-effective and large-scale compensatory

mitigation projects can be built in advance of permitted impacts;

• Programs and legislative solutions to address derelict vessels on port and port-adjacent

properties;

• Efforts to increase climate resiliency, including through implementation of

recommendations in the State’s recently published Climate Resilience Strategy and

investments in resilience in the transportation network serving ports, in collaboration and

partnership with local governments;

• Policies that reduce air emissions and pollution for passengers and employees traveling

to and from Port facilities, including promoting and improving the efficiency of public

transportation and public transit;

• Continuing state partnerships to reduce emissions from waterfront operations while

maintaining an international competitive edge, including partnerships to support electric

transmission infrastructure development, regarding innovation in the clean maritime

sector, and in the State’s ongoing Maritime Blue 2050 initiative;

• Responsible and thoughtful implementation of statewide environmental justice

standards, including support for state-agency efforts to build intersectionality directly

into programming, advocacy to ensure that state agencies adhere to standards for

investment in overburdened communities and vulnerable populations that are set in

current law, establishing adequate enforcement mechanisms, and providing necessary

resources; and

• the Washington Conservation Corps (WCC) program, including creating opportunities to

integrate WCC staff into Port operations and programs.

Legacy Issue Area 3: Transportation

Support transportation policy that is consistent with Goals 1, 2, and 4 of the Port’s Century

Agenda, emphasizing the importance of proposals supporting freight mobility, enhancing

competitiveness, aiding multimodal transportation, and continuing to decarbonize.

Advocacy will include support for:

• Investments in transportation networks serving essential public facilities with specific

emphasis on funding needed for upgrades to near-port facilities;

• Proposals speeding the movement of freight and passengers from origin to destination

through seaport and airport facilities, and improving trade competitiveness of the state

and the Port’s gateway;

COMMISSION AGENDA – Briefing Item No. 11a Page 8 of 10

Meeting Date: November 19, 2024

Template revised September 22, 2016.

• Ongoing efforts to address the major deficit of truck parking in the region and to expand

the number of areas set aside for the needs of commercial truck operators;

• Continued promotion of Washington as an international trading partner, including

support for the state’s exporters and ensuring that transportation facilities supporting

trade are modern, world-class, and operate efficiently;

• Proposals to clarify and affirm the authority of the Port Commission to control access to

port facilities by all transportation modes (including private vehicle access, commercial

ground transportation providers, and public transportation providers), and promoting

fairness and equity among transportation service providers, in support of responsible

operation in all areas of regulation, including insurance, monitoring, safety, and

environmental standards;

• State engagement relating to increasing passenger vessel routes operating in Puget

Sound, provided that any increased vessel traffic is accompanied by mitigation;

• Regional conversations related to innovative transportation partnerships that will help

alleviate congestion on roadways and in airports, and reduce emissions associated with

the transportation sector;

• Continuation of programs that incentivize the adoption and use of electric vehicles;

• Coordinated approaches to regional transportation planning, including aviation planning;

• Continued progress regarding airport siting or expansion and the efforts of the

Commercial Aviation Work Group (CAWG);

• State-level actions to advance planning for major transportation projects, provided that

planning efforts account for impacts to the broader transportation network and consider

effects to adjacent areas;

• Investments in multimodal and active transportation infrastructure that prioritize safety,

increased choice, and efficient movement of freight and all users; and

• Promotion of state agency efforts benefitting REAL ID compliance.

Participate in, and monitor, conversations regarding transportation revenue and revenue-

generating policies, advocating that policies prioritize and uphold economic competitiveness and

do not disadvantage the efficient movement of goods. Likewise, the Port will continue to

advocate that broader transportation implications continue to be a central consideration of

major transportation projects.

Legacy Issue Area 4: Land Use

Continue to advocate for land use policies benefitting goals 1, 3, 4, and 5 of the Port’s Century

Agenda, with a specific focus on zoning issues that may affect port competitiveness.

Advocacy will include support for:

• Proposals that reflect the “Guiding Principles: Stewardship, Enhancement, and Protection

of Maritime and Manufacturing Lands” document that was adopted by the Northwest

Seaport Alliance on November 1, 2016;

COMMISSION AGENDA – Briefing Item No. 11a Page 9 of 10

Meeting Date: November 19, 2024

Template revised September 22, 2016.

• Proposals that aim to reduce pressure on critical industrial lands by focusing dense

residential development into existing residential areas that have typically been

characterized by low-density single-family development;

• Efforts to acknowledge and define Manufacturing and Industrial Centers (MICs) as

resource lands of statewide economic significance;

• Proposals that recognize the role industrial resource lands play in global port

competitiveness and in supporting job retention in diverse economic sectors;

• Policies that give the Port flexibility in the conveyance of surplus property; and

• Proposals that seek to strengthen the Container Ports Element of the Growth

Management Act.

Monitor actions related to the Department of Commerce’s Interbay Public Development Advisory

Committee, and any other legislative changes that may impact the efficient functioning of

statewide essential public facilities.

Ensure that ongoing efforts to update the Growth Management Act do not inadvertently result

in the imposition of new or expanded planning requirements for Ports without providing

adequate resources to implement.

Other Legacy Issue Areas: Tax, Revenue, Governance, Technology, Trafficking, Civil Asset

Forfeiture

Taxation:

Support state-level tax policies that foster the economic health of port-related businesses and

activities, including:

• Policies that promote the efficient movement of freight and support communities that

contain warehousing and distribution infrastructure, especially those facilities and

communities benefitting agriculture, manufacturing, and trade sectors; and

• Policies that reduce manufacturing costs in port-related sectors, including businesses that

support the efficient functioning of SEA International Airport, and incentivizing

construction of fishing vessels within Washington State.

Pending action by the Department of Revenue, consider legislative solutions to clarify the

application of Leasehold Excise Tax to certain port-related businesses, and continue to monitor

stalled Leasehold Excise Tax rule making.

Additionally, the Port will continue monitoring developments around programs that divert Port

revenues to other uses, opposing changes that further increase diversion of Port revenue, or are

otherwise inconsistent with underlying tax law.

Revenue:

Continued support for grant & loan programs that aim to maximize the use and availability of

federal resources for Port infrastructure and initiatives.

COMMISSION AGENDA – Briefing Item No. 11a Page 10 of 10

Meeting Date: November 19, 2024

Template revised September 22, 2016.

Governance:

• Oppose legislation that would create an imbalance of representatives between the two

homeports in the governance of the Northwest Seaport Alliance.

• Monitor legislative proposals that would alter the governance structure of either NWSA

homeport, and if proposed, advocate for ratification by citizen vote within the respective

homeport district(s).

Technology:

• Monitor proposals related to the use of biometric technology, such as facial recognition,

with particular attention to those that address protection of individual privacy, equity,

and compliance with federal and state regulations.

• Continue to monitor proposals related to establishing a Washington State Digital ID

intended for general use including at airport facilities.

• Monitor state-level regulation of artificial intelligence (AI), and seek to form relevant

partnerships with state and local government agencies regarding the use of AI.

Trafficking:

• Continue to engage state agencies, the legislature, and external partners in Port-

sponsored efforts to combat human trafficking and forced labor at port facilities,

including the airport, seaport, cruise terminals, and marina properties. Explore additional

opportunities to deepen partnerships and align ongoing efforts happening elsewhere. As

the region hosts major large-scale events (like the World Cup), ensure that the State

supports anti-trafficking programs.

ATTACHMENTS TO THIS BRIEFING

(1) Presentation slides

PREVIOUS COMMISSION ACTIONS OR BRIEFINGS

January 9, 2024 – The Commission voted to adopt the Final 2024 State Legislative Agenda

December 12, 2023 – The Commission was briefed on the Draft 2024 State Legislative Agenda

November 8, 2022 – The Commission voted to adopt the Final 2023 State Legislative Agenda

October 25, 2022 – The Commission was briefed on the Draft 2023 State Legislative Agenda