Washington Cattlemen’s Association
Week 14 Legislative Report

Hello Friends: April 12th was a significant cutoff date. Legislation had to be passed by the legislature, or it’s dead for the session. Exceptions include budgets and bills considered necessary to implement the budget. April 23rd is the final day of the legislative session.

Dead for now –

Addressing Carbon surcharges related to the Climate Commitment Act and Low Carbon Fuel Standard:
As it stands, there is not the poliDcal will from a majority of legislators to properly address this. Many proponents of the Climate Commitment Act (CCA) and Low Carbon Fuel Standard (LCFS) insist that the “oil industry” is not required to include surcharges in the cost of fuel sold for ag production purposes. Opponents, including the Ag industry have argued that it’s the state’s responsibility to ensure that those exempted in the law have an effective process to ensure the exemption, including a mechanism for refunds.

BP has continued to tout a limited solution, but it’s now understood to only apply to those purchasing entire tanker loads from BP.

Refunds for fuel purchases in 2023 remain contentious as many proponents of the CCA and LCFS argue those refunds need to come from the “oil industry”, while opponents would argue that the refund should come from the states’ significant auction proceeds.

It appears likely that the only remedy for the agriculture industry may be in a court of law. Definitely recommending that folks con;nue to save fuel receipts.

Dead bills to note:

Dead - HB 1589 - Supporting Washington's clean energy economy and transition from Natural Gas. This Puget Sound Energy bill would have prohibited gas companies serving more than 500,000 retail gas customers in Washington from extending gas service to any commercial or residential location that did not receive or file an application for gas service as of June 30, 2023.

The prohibition on the extension of gas service did not apply to manufacturing facilities and those other types of facilities, including medical, correctional, and military until January 1, 2040.

Passed legislation to note:
SB 5353 - Concerning the Voluntary Stewardship Program
• Removes the date by which counties must have elected to join the Voluntary Stewardship Program (VSP).
• Provides that a county electing to join the VSP is eligible for a share of funding made available to implement the program, subject to funding availability from the state.
• Establishes that a county electing to join the VSP is not required to implement the program in a participating watershed until adequate funding for the program in that watershed is provided to the county

SB 5341 – Creating a location-based promotion program for Washington food and agricultural products.
• This gets WSDA started on the process to establish a location-based promotion program for Washington ag products.

Tax Bills that are still alive:
HB 1628 – Increasing Property Taxes for Affordable Housing
Despite Republican opposition, this bill continues to advance. This legislation would increase both state and local real estate excise taxes to pay for affordable housing. Certain agricultural lands would not be subject to the increase.

Brief Summary:
• Increases the “ceiling” for the Tier 1 1.1 percent state real estate excise tax (REET) from $525,000 to $750,000 beginning January 1, 2025.
• Increases the state REET rate for Tier 4 (selling price over $3,025,000) from 3 percent to 3.5 percent except for commercial property, beginning January 1, 2025.
• Imposes the new 3.5 percent REET rate for Tier 4 for commercial property beginning January 1, 2027.
• Adds the Washington Housing Trust Fund, the Apple Health and Homes Account, the Affordable Housing for All Account, and the new Developmental Disabilities Housing and Services Account to the Accounts that receive proceeds from REET.
• Allows a county or city to impose an additional 0.25 percent REET for the construction and support of affordable housing beginning January 1, 2024.
• Removes the expiration date on the ability to use certain local government REET funds for facilities for those experiencing homelessness or for affordable housing and removes a $1,000,000 limit on the annual use of such funds in larger jurisdictions.
• Removes certain restrictions on the permitted uses of revenue from specified local government real estate excise taxes and allows for the councilmanic imposition of a 0.25 percent REET by counties, and cities within those counties, that choose to plan under the Growth Management Act instead of requiring voter approval.
• Creates a REET exemption for certain sales or transfers of properties that qualify for a property tax exemption that will be used for a community purpose. Budgets: We have detailed the Operating, Capital and Transportation budgets editions. All three budets are currently being negotiated between the House, Senate and Governor.