WA Legislature Update 


Greetings WWCC members,

 

We are pleased to provide you with an update on legislative activities related to alternative fuels and petroleum reduction. 

 

It's been a very exciting legislative session thus far with an unprecedented number of bills related to electric vehicles (EVs) and alternative fuels. As such, we haven't been able to cover all of the action, but here are details on the items we are tracking the closest:


 

Alternative Fuel Vehicle Retail Sales & Use Tax Exemptions  

There are several different bills moving in support of tax exemptions for purchases of alternative fuel vehicles. Three of them seek to extend the exemption currently in place beyond its July 1, 2015 expiration date. Another would exempt private businesses from taxes on the purchase or conversion of commercial vehicles that run on alternative fuels.

  • HB 1925 | SB 5445
    • Synopsis: Governor Inslee requested this legislation, which would extend the sales tax exemption for purchases of alternative fuel vehicles for another 10 years. This legislation would also limit the tax credit to the first $60,000 of the purchase price of new passenger cars.
       
    • StatusThe State Senate Energy and Environment Committee held a public hearing for SB 5455 on February 5. The State House Finance Committee held a public hearing for HB 1925 on February 23.
       
       
  • SB 5333
    • Synopsis: This bill is supported by the electric vehicle caucus and is a variation on the Governor's approach, above. Key variances include:
      • Extends the sales and use tax exemption for seven years.
      • Exempts the first $45,000 of purchase price from sales and use taxes.
      • Earmarks the $100 annual EV registration fee to the electric vehicle charging infrastructure account.
         
    • StatusWWCC provided testimony in support of SB 5333. The State Senate Transportation Committee held a public hearing for the bill on February 4. The bill was approved on February 25. SB 5333 will now head to the State Senate Ways & Means Committee for finance negotiations. 
       
  • NEW - HB 2087. 
    • Synopsis: A variation of SB 5333, also sponsored by the EV Caucus.  This bill exempts the first $35,000 of EV purchases for 4 years, and imposes an additional $50 EV fee for battery electric vehicles and a $25 EV for plug-in hybrid electric vehicles. Incremental EV fees are earmarked for EV infrastructure bank run by the Washington State Department of Transportation (WSDOT). Other provisions:
      • WSDOT may provide 30% loans or 50% grants for "profitable and sustainable infrastructure."
      • Front loads $1 million  to an EV infrastructure bank, to be paid back over ten years with "EV fee" proceeds from annual registrations.
         
    • Status: The State House Transportation Committee held a public hearing for the bill on February 24. An executive session is scheduled for February 27. 
       
  • HB 1396 | SB 5325. 
    • Synopsis: This bill has bipartisan sponsorship in both the House and Senate and incentivizes the use of alternative fuel commercial use vehicles with tax preferences. The bill would exempt private businesses from three taxes on the purchase or conversion of commercial vehicles that run "principally" on a clean alternative fuel. The exemption would last 10 years. 
      • Eligible fuel types include electricity, gasohol, hydrogen, hythane (a trademarked natural gas / hydrogen blend), methane, methanol, propane or natural gas - liquefied (LNG) or compressed (CNG). 
      • "Commercial vehicle" is defined as any vehicle purchased by a private business that is used exclusively to transport various commodities and products (not passengers). 
         
    • StatusWWCCC provided testimony in support of HB 1396. The State House Transportation Committee held a public hearing for HB 1396 on February 4. The bill was scheduled for executive session on February 9, but no action was taken by the committee. The State Senate Transportation Committee held a public hearing for SB 5325 on February 4, but no further action is currently scheduled.  
       
Zero Emission Vehicle Mandate
Reducing emissions by making changes to the clean car standards and clean car program:
  • HB 1487 | SB 5423. 
    • Synopsis: The Washington State Department of Ecology has requested legislation to adopt California's Zero Emission Vehicle (ZEV) mandate in Washington's Clean Air rules. This would require car makers to deliver for sale a certain, rising percentage of ZEVs in the state.
       
    • StatusSB 5423 did not receive a public hearing. HB 1487 was altered and now does not contain a ZEV mandate. The bill's remaining language does correct a loophole related to the clean car standard for light pickup trucks. The substitute version of HB 1487 has now been referred to the Rules Committee. 

Electric Vehicle Infrastructure Bank 
Several proposals would support a new "bank" to support public charging infrastructure. The bank would be run by WSDOT. The proposals include:
  • HB 1572 | SB 5444
    • Synopsis: This legislation requested by Governor Inslee would create an EV Infrastructure Bank.
       
    • StatusHB 1572 did not receive a public hearing. The State Senate Transportation Committee held a public hearing for SB 5444 on February 4.
       
       
  • HB 1300 | SB 5358. 
    • Synopsis: The Transportation Revenue bill would expand the state's annual $100 registration fee for electric vehicle owners to include all plug-in EVs, including plug-in hybrids, starting July 1, 2016. It also earmarks this revenue to the Infrastructure Bank account until PEVs reach 0.5% of all vehicles registered in Washington. 
       
    • StatusNeither bill has been scheduled for a public hearing or addressed by their respective committees. 

Other EV Infrastructure Bills:
  • SB 5446. 
    • Synopsis: Requiring incentives for electric vehicle readiness in buildings. Governor Inslee requested this legislation, which would require large cities and counties adjacent to major traffic corridors, such as I-5, I-90, I-405 and SR-520, to adopt incentives for building owners to install "rapid" charging stations in new and existing structures.
       
    • Status: The State Senate Energy and Environment Committee held a public hearing for this bill on February 5. 
      • The bill was altered and has now been referred to the Rules Committee. The substitute bill no longer requires cities to provide incentives for EV readiness in buildings. 
      • Instead, the bill provides language that local governments can use to enact incentives on their own. The bill's language specifically encourages incentives for multi-family residential buildings. 
  • SB 5735
    • Synopsis: Providing incentives for carbon reduction investments. Under this bill, electric utilities would receive credit toward their I-937 renewable power requirements if they undertake certain carbon-reduction activities. Eligible approaches include installing EV charging infrastructure and other natural gas transportation infrastructure, various forms of electricity conservation, and carbon sequestration programs.
       
    • Status: The State Senate Energy and Environment Committee held a public hearing on February 5. 
      • An altered bill was referred to the Rules Committee. The substitute bill removes the original sunset date for the proposed carbon offset system. 
      • The substitute bill has now been sent to the Senate floor by the Rules Committee.  

New - Clean Fuel Standard:
  • Synopsis: The Department of Ecology has released a discussion document on the adoption of a Clean Fuel Standard (CFS). 
    • A CFS, like a low carbon fuel standard, would create a regulatory framework to gradually decrease the greenhouse gas emissions of transportation fuels over time. 
    • Clean fuel standards generally require fuel producers and distributors to reduce the GHG content of their fuels. One way to do this is to blend and distribute more alternative fuels.  
       
  • Status: WWCC attended the first public input session last Thursday and provided comments in support of the adoption of a Clean Fuel Standard. More details on the standard can be found from the Washington State Department of Ecology
     

A special thanks to JJ McCoy, Legislative Director at Seattle Electric Vehicle Association for assembling much of this content and providing real time updates on the status of legislation. 

 

Kimberley Cline & Scott DeWees

Western Washington Clean Cities Coalition Co-Coordinators





 



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