Washington Business 2019 Legislative Review & Vote Record

issue area reports | environment require the producer of a product to be responsible for its collection, and disposal or reuse after the use of the product. The orig inal def inition of “producer” was extremely broad and covered firms which use plastic pallet wrap and restaurant take away containers. Based on the impact on the broader business community and feedback f rom ou r mem b er s , AW B or ig i n a l ly opposed this bill. AWB worked with several stakeholder groups and Senator Rolfes to highlight the business community concerns regarding EPR and were able to reach a compromise where the bill became a task force. The task force will examine multiple options to reduce plastic packaging and allow broader feedback from the regulated community as successful efforts in other states and report back to the Legislature by October 2020. with concerns. Although the bill included cost-increase protections, it will increase energ y prices for most residents a nd businesses in Washington. Areas that a re ser ved pr i m a r i ly by hydropower will see lower price increases while areas ser ved by ut i l it ies w it h fossil fuel generation will see larger price increases. The bill a lso recog nizes hydropower as a renewable resource, a long-standing AWB goal. AWB remained neutral on this bill. E2SSB 5116 Passed/AWB Neutral 100% clean energy Passed/AWB Other/Concerned Engrossed Second Substitute Senate Bill 5116, sponsored by Sen. Reuven Carlyle, D-Seattle, was a governor-requested bill and the central element of the governor’s Clean Energy platform intended to create a pathway to zero emissions from electrical production. The combination of the failure of Initiative 1631 at the ballot box in 2018 and the increased Democratic majority in both houses meant there was significant pressure to pass a climate bill this session. The bill would ban so-called coal by wire (electricity generated by coal outside of Washington state) by 2025, require that utilities be carbon neutral (using a combination of increased renewables and a graduated fee for carbon emissions) by 2030, and sets 2045 as the date for 100% renewable, carbon-free electricity in Washing ton. Included in the final version of the bill are important protections for grid reliability and limits on cost increases for energ y prices, both areas in which AWB testified Bill considered as part of AWB’s voting record E3SHB 1257 concerning energy efficiency Eng rossed Third Sub- s t it ute Hou s e Bi l l 1 257, spon sored by Rep. Bet h Doglio, D-Olympia, was a Senate Republican Floor Leader Shelley Short, R-Addy, governor-requested bill and serves on the Agriculture, Water, Natural Resources & Parks part of his plan to reduce Committee, as well as the Environment, Energy & Technology Committee. statewide carbon emissions. The bill had two elements: requiring improvements in energ y effi- to see some cost protections included in the ciency for covered commercial buildings final version. The bill also required natural over 50,000 square feet; and energy effi- gas companies to identify and implement all ciency requirements for natural gas. Under available and cost-effective conservation the bill, the Department of Commerce will methods to meet a self-imposed acquisition establish energy performance baselines target every two years. As part of identify- and performance standards for buildings ing the cost-effectiveness of these targets, by November 2020. Building owners will the companies must factor in the social cost then be required to make improvements of the greenhouse gas emissions associated to their building’s energ y performance with the extraction, transmission and use against those baselines or face fines. Agri- of natural gas. AWB strongly opposed the culture structures and buildings used for inclusion of a social cost of carbon into industrial or manufacturing purposes are natural gas and other elements of this bill exempt from the law as are buildings that which will increase the cost of natural gas are unoccupied for 12 months or longer. provided to Washington businesses and AWB testified with concerns about the cost worked to see it reduced in the final version. impacts on building owners and was pleased Favorable outcome for Washington businesses Missed Opportunities special edition 2019 17

Washington Business 2019 Legislative Review & Vote Record | Page 19