Washington State

House of Representatives

Office of Program Research

BILL

ANALYSIS

Transportation Committee

HB 2042

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

Brief Description: Advancing green transportation adoption.

Sponsors: Representatives Fey, Orcutt, Slatter, Doglio, Tharinger and Ramos.

Brief Summary of Bill

  • Makes permanent the electric vehicle (EV) infrastructure grant program to support the deployment of EV charging infrastructure.

  • Reinstates the alternative fuel vehicle retail sales and use tax exemption for vehicles priced at $42,500 or less, with the exemption applying to $32,000 of the vehicle price initially, and that amount being stepped down over time.

  • Raises the total registration renewal fee for alternative fuel vehicles from $150 to $200, and uses $100 of the fee to fund alternative fuel vehicle sales and use tax incentives and the EV infrastructure grant program.

  • Extends, modifies, and expands to alternative fuel vehicle infrastructure the alternative fuel commercial vehicle business and occupation and public utility tax credits.

  • Extends the EV battery and infrastructure sales and use tax exemption and expands it to include batteries sold as a component of electric buses and zero emission buses.

  • Extends the leasehold excise tax exemption for public land used for the purpose of EV infrastructure.

  • Establishes a capital grant program to assist transit authorities in fleet electrification.

  • Establishes a technical assistance and education program on alternative fuel vehicles for public agencies within Washington State University's Energy Program.

  • Establishes the authority of public utilities to offer electrification incentive programs, and amends provisions authorizing investor-owned utilities' incentive rate of return on investments in EV supply equipment.

  • Establishes an EV car sharing pilot grant program to support car sharing for underserved communities and lower income workforce members.

  • Authorizes the Department of Commerce to conduct a study on reducing barriers to EV adoption by lower income residents of the state through the use of financing assistance.

  • Authorizes a Joint Transportation Committee study to assess how the state can transition to a low-carbon transportation network.

Hearing Date: 2/25/19

Staff: Jennifer Harris (786-7143).

Background:

Electric Vehicle Charging Infrastructure Pilot Program.

A 2015 law required the Washington State Department of Transportation's (WSDOT) Innovative Partnerships Office to develop a pilot program to support the deployment of electric vehicle (EV) charging infrastructure also supported by private financing. This program was established based on recommendations from a 2014 to 2015 Joint Transportation Committee (JTC) study report, Business Models for Financially Sustainable EV Charging Network. Loans or grants could be awarded (one maximum per project), and were required to be funded from the Electric Vehicle Charging Infrastructure Account.

The WSDOT was required to define corridors along which bidders could propose to install EV charging infrastructure. A bidder was permitted to propose a corridor as well, as long as the WSDOT adopted rules allowing for such a proposal and establishing guidelines for its consideration. The following requirements for proposals were mandated:

  1. Bidders were required to have private sector partners contributing to the project who could gain indirect value from it, such as motor vehicle manufacturers, retail stores, or tourism stakeholders.

  2. Bidders had to demonstrate that the proposed project would be valuable to EV drivers and would address an existing gap in the state's EV charging station infrastructure.

  3. Projects were required to show an expectation of profitability and sustainability for the owner-operator and the private partner.

  4. Bidders had to specify how the project would capture the indirect value of charging station deployment to the private partner.

The WSDOT was permitted to conduct preliminary workshops with potential bidders and other potential private sector partners to determine the best method of designing the pilot program, and to discuss how to develop the partnerships among private sector partners of the pilot program.

The WSDOT was required to adopt rules to implement the pilot program.

Electric Vehicle Charging Infrastructure Account.

The Electric Vehicle Charging Infrastructure Account is part of the Transportation Infrastructure Account. Expenditures from the account may only be used for the EV charging infrastructure pilot program administered by the WSDOT.

Alternative Fuel Vehicle Retail Sales and Use Tax Exemption.

An alternative fuel vehicle retail sales and use tax exemption was in place between January 2009 and the end of May 2018. It was modified in law several times. The most recent version in place, enacted in 2016, was a retail sales and use tax exemption for new passenger cars, light duty trucks, and medium duty passenger vehicles that: (1) had a base model Manufacturer's Suggested Retail Price (MSRP) of $42,500 or less; and (2) were either exclusively powered by a clean alternative fuel or used at least one method of propulsion that was capable of being reenergized by an external source of electricity and were capable of traveling at least 30 miles using only battery power. Both purchased and leased vehicles were eligible. Tax exemption eligibility was capped at $32,000 per eligible vehicle.

"Clean alternative fuel" was defined as natural gas, propane, hydrogen, or electricity, when used in a motor vehicle that met California motor vehicle emission standards and Washington State Department of Ecology (Ecology) rules.

The Department of Licensing (DOL) was required to maintain a list of the models that qualified for this exemption and to determine the lowest MSRP for each model for the purpose of establishing whether the model qualified for the exemption. At the end of each quarter, the State Treasurer was required to transfer from the Multimodal Transportation Account to the State General Fund the amount that would otherwise have been deposited into the State General Fund if not for this tax exemption.

Under the 2016 law, leases for vehicles that qualified for this tax exemption while it was in effect and have not yet ended remain eligible for it through the life of the lease.

Alternative Fuel Vehicle Registration Renewal.

Annual alternative fuel vehicle registration renewal fees, which are assessed in addition to more broadly applicable vehicle license fees, apply to vehicles that are designed to travel at a speed of 35 miles per hour (mph) or greater and that either: (1) use at least one method of propulsion that is capable of being reenergized by an external source of electricity; or (2) are capable of traveling at least 30 miles using only battery power.

The first annual registration renewal fee is set at $100, and is imposed to provide funds to mitigate the impact of vehicles on state roads and highways, and for the purpose of evaluating the feasibility of transitioning from a revenue collection system based on fuel taxes to a road user assessment system. Revenue from the fee must be used for highway purposes and the first $1 million collected in a calendar year must be deposited in the Motor Vehicle Highway Fund. Additional revenue in a calendar year must be deposited as follows: 70 percent to the Motor Vehicle Fund, 15 percent to the Transportation Improvement Account, and 15 percent to the Rural Arterial Trust Account.

The second annual registration renewal fee is set at $50. The first $1 million of revenue collected was required to be deposited in the Multimodal Transportation Account. Any additional revenue, including all revenue at this time, is required to be deposited in the Motor Vehicle Fund.

These registration renewal fees are no longer applicable when a vehicle miles traveled fee or tax is implemented by the state.

Alternative Fuel Commercial Vehicle Tax Credits.

Definitions and Background.

"Clean alternative fuel" means electricity, dimethyl ether, hydrogen, methane, natural gas, liquefied natural gas, compressed natural gas, or propane. "Commercial vehicle" is defined as any commercial vehicle that is purchased by a private business and that is used exclusively in the provision of commercial services or the transportation of commodities, merchandise, produce, refuse, freight, animal, or passengers, and that displays a Washington license plate.

All commercial vehicles that provide transportation to passengers must be operated by an auto transportation company. "Auto transportation company" is defined as any corporation or person owning, controlling, operating, or managing any motor propelled vehicle used in the business of transporting persons for compensation over public highways within the state between fixed points over a regular route.

The business and occupation (B&O) tax is a gross receipts tax that is measured on the value of products, gross proceeds of sale, or gross income of a business. The public utility tax, or PUT, is a tax on the gross income of public service businesses, including businesses that engage in transportation, communications, and the supply of energy, natural gas, and water. The PUT is paid in place of a B&O tax.

Tax credits are subtracted from the applicable tax otherwise due.

Tax Credit Qualification.

A B&O tax and PUT credit is available for the purchase of new, as well as certain used, alternative fuel commercial vehicles for up to 50 percent of the incremental cost of the vehicle purchased above the purchase price of a comparable conventionally fueled vehicle subject to certain per vehicle maximums:

Used commercial vehicles are eligible if they have less than 450,000 miles on their odometers; are less than 10 years past their date of manufacture; were modified after the initial purchase; and are being sold for the first time after modification.

The B&O tax and PUT credits are available for leased vehicles for the credit amount that would be available if the vehicle had been purchased multiplied by the lease reduction factor (that is, for the portion of the vehicle's value other than the residual value remaining at the end of the lease).

The B&O tax and PUT credits are also available for a portion of the costs of converting a commercial vehicle to be principally powered by a clean alternative fuel, the lesser of $25,000 or 30 percent of the costs of conversion.

Tax Credit Restrictions and Notification.

The total credits earned may not exceed the lesser of $250,000 or 25 vehicles per person per calendar year.

No more than $6 million in credits is available in any calendar year. Each vehicle weight class is eligible for a maximum of $2 million in B&O tax and PUT credits per year combined through the end of August of each year, at which time any unused credits from each weight class become usable for a vehicle of any weight.

The Department of Revenue (DOR) is required to provide notification on its website on a monthly basis of the amount of credits that have been applied for, issued, and are remaining. Credit availability is evaluated based on when an application is received by the DOR, which must respond within 15 days of receipt providing information on the availability of the tax credits.

Program Requirements.

To claim a tax credit, a person is required to:

  1. electronically file with the DOR all returns, forms, and any other information required by the DOR;

  2. complete an application for the credit that must include certain specified information (the same application can be used for multiple vehicles);

  3. provide notice of intent to claim the credit that is required to include certain specified information within 15 days of receiving notice of tax credit availability by the DOR; and

  4. provide final documentation that must include certain specified information within 15 days of receipt of the vehicle.

The anticipated delivery date of the vehicle must be within one year of acceptance of the credit. Within 15 days of receipt of the notice of intent to claim the tax credit, the DOR must notify the applicant of the application's approval, denial, or missing information in their notice.

Credits may be earned from January 1, 2016, through January 1, 2021, except for credits for leased vehicles, which may be earned from July 1, 2016, through January 1, 2021. A credit earned during one calendar year may be carried over to be credited against taxes incurred in the next calendar year. Credits may not be used towards both the B&O tax and the PUT.

On a quarterly basis, the State Treasurer must transfer a sum equal to the amount of tax credits provided from the Multimodal Transportation Account to the State General Fund.

Electric Vehicle Battery and Infrastructure Retail Sales and Use Tax Exemption.

"Electric vehicle infrastructure" is defined as structures, machinery, and equipment necessary and integral to support an EV, including battery charging stations, rapid charging stations, and battery exchange stations.

A retail sales and use tax exemption for EV batteries and infrastructure has been in place since July 2009. The tax exemption may be used for:

The buyer is required to provide the seller with an exemption certification as specified by the DOR, and the seller must retain a copy of the certificate.

The EV battery and infrastructure tax exemption expires January 1, 2020.

Leasehold Excise Tax Exemption for EV Infrastructure.

A leasehold tax is a tax on the use of public property by a private party. This tax is paid in place of a property tax.

An exemption on leasehold excise taxes is available for leases to tenants of public lands that are used for the purposes of EV infrastructure installation, maintenance, and operations. This exemption expires January 1, 2020.

Public Transit.

There are 32 public transit agencies throughout the state, the majority of which are operated as public transportation benefit areas (PTBAs) or other special purpose districts; several are operated by cities and counties. Through the administration of a variety of federal and state grant programs, the WSDOT assists local and regional transportation providers in purchasing vehicles and equipment, expanding and sustaining service, and funding facilities and infrastructure.

Washington State University Extension Energy Program.

The Washington State University (WSU) Extension Energy Program provides information, technical assistance, and consultation on physical plant operations, maintenance, and construction issues to state and local governments, tribal governments, and nonprofit organizations. The program is funded with voluntary subscription charges, service fees, and other funding secured or provided to the WSU for this purpose.

Utility Providers and Electric Vehicle Charging Infrastructure.

Municipal Electric Utilities and Public Utility Districts.

Municipalities are authorized to operate as utilities and set the rates and charges for the provision of water, sewer, electric power, heating fuel, solid waste removal, and transportation facility services. Public utility districts (PUDs) are a type of special purpose district authorized for the purpose of generating and distributing electricity, providing water and sewer services, and providing telecommunications services. A PUD may operate on a countywide basis or may encompass a smaller jurisdiction. A PUD is governed by a board of either three or five elected commissioners.

Investor-Owned Utility Investment in Electric Vehicle Supply Equipment.

In establishing rates for privately owned gas and electrical companies, the Utilities and Transportation Commission (UTC) must consider policies to improve access to, and promote fair competition in the provision of, electric vehicle supply equipment (EVSE) build-out. These policies may include, but are not limited to, allowing a rate of return on investment on capital expenditures for EVSE that is deployed for the benefit of ratepayers, provided that the capital expenditures do not increase costs to ratepayers in excess of 0.25 percent.

A rate of return on investment for EVSE build-out may only be allowed if the company chooses to pursue capital investment in EVSE on a fully regulated basis similar to other capital investments behind a customer's meter. The incentive rate of return is established by adding an increment of up to 2 percent to the rate of return on common equity permitted on the company's other investments. The incentive rate of return on investment only apples to projects installed after July 1, 2015, and which are reasonably expected at the time they are placed in the rate base to result in real and tangible benefits for ratepayers by being installed and located where EVs are most likely to be parked for intervals longer than two hours.

Low-Income Utilization of Electric Vehicles Study.

In the 2018 Supplemental Transportation Budget, Engrossed Substitute Senate Bill 6106, a budget proviso for the WSDOT's Innovative Partnership Office provided funding for a study to be conducted by the Puget Sound Clean Air Agency to identify and evaluate opportunities to facilitate low-income utilization of EVs, including an EV car-sharing program for low-income housing sites designed to maximize the use of EVs by residents of these sites. The study was also required to consider any infrastructure needs that would need to be met to support the use of EVs at low-income housing sites. A report detailing the findings of the study was due to the transportation committees of the Legislature by December 1, 2018.

The report issued by the Puget Sound Clean Air Agency, Facilitating Low-Income Utilization of Electric Vehicles, included a number of recommendations, including a recommendation for a pilot program to be conducted at low-income housing sites.

Washington State Department of Commerce.

The Washington State Department of Commerce (Commerce) is responsible for promoting community and economic development in the state by assisting the state's communities in increasing their quality of life and economic vitality, and by assisting the state's businesses in maintaining and increasing their economic competitiveness, while maintaining a healthy environment.

Community and economic development efforts that Commerce is tasked with include: efforts to increase economic opportunity; local planning to manage growth; the promotion and provision of affordable housing and housing-related services; providing public infrastructure; business and trade development; assisting firms and industrial sectors in increasing their competitiveness; fostering the development of minority and women-owned businesses; facilitating technology development, transfer, and diffusion; community services and advocacy for low-income people; and public safety efforts.

Joint Transportation Committee.

The JTC is responsible for reviewing and researching transportation programs and issues to educate and promote the dissemination of transportation research to state and local government policymakers, including legislators and legislative staff. The executive committee of the JTC consists of the chairs and ranking members of the House and Senate transportation committees.

Summary of Bill:

Electric Vehicle Charging Infrastructure Program.

The EV charging infrastructure pilot program is made permanent subject to the availability of amounts appropriated for this specific purpose.

Alternative Fuel Vehicle Retail Sales and Use Tax Exemption.

The alternative fuel vehicle retail sales and use tax exemption is reinstated using the same vehicle qualification criteria in place between July 1, 2016, and May 31, 2018. For vehicles purchased or leased between August 1, 2019, and July 31, 2021, the maximum amount eligible for the tax exemption is $32,000; for vehicles purchased or leased between August 1, 2021, and July 31, 2023, the maximum amount eligible for the tax exemption is $24,000; and for vehicles purchased or leased between August 1, 2023, and July 31, 2025, the maximum amount eligible for the tax exemption is $16,000.

The seller must keep records necessary for the DOR to verify eligibility, and a person claiming the exemption must also submit certain specified information to the DOR.

The Department of Licensing (DOL) is required to maintain a list of the models that may qualify for this exemption and to determine the lowest MSRP for each model. A seller is not responsible for repayment of the tax exemption as long as the seller relies on the DOL's list to verify a vehicle's eligibility on the date of sale or lease, even if a retroactive change is later made.

At the end of each quarter, the State Treasurer is required to transfer from the Multimodal Transportation Account to the State General Fund the amount that would otherwise have been deposited in the State General Fund if not for this tax exemption. The DOR must provide a report to the Legislature by the last day of October 2019, and every six months thereafter, providing certain specified information related to the use of this tax exemption.

The qualification period for this tax exemption ends July 31, 2025. Leases for vehicles that qualify for this tax exemption may maintain eligibility through July 31, 2028.

Alternative Fuel Vehicle Registration Renewal.

One of the two annual alternative fuel vehicle registration renewal fees is raised from $50 to $100, bringing the total in annual alternative fuel vehicle registration renewal fees to $200. All revenue raised by this registration renewal fee must be deposited in the Electric Vehicle Account.

Electric Vehicle Account.

The Electric Vehicle Account is created in the Transportation Infrastructure Account. Expenditures from this account may only be used for the EV charging infrastructure program and to reimburse the general fund for the revenues that would otherwise be collected if not for the alternative fuel vehicle retail sales and use tax exemption.

Alternative Fuel Commercial Vehicle and Infrastructure Tax Credits.

The definition of "auto transportation company" is updated to clarify that fixed points or a regular route may be updated on a regular basis, and to include private, nonprofit transportation providers and charter party carriers.

A new B&O tax and PUT credit is established for up to 50 percent of the cost to purchase alternative fuel vehicle infrastructure, tangible personal property that will become a component of alternative fuel vehicle infrastructure, and the installation and construction of alternative fuel vehicle infrastructure. The cost of property acquisition and site improvement related to the installation of alternative fuel vehicle infrastructure is excluded from eligibility for this tax credit.

The maximum annual credit per vehicle class restriction is removed for alternative commercial vehicle B&O tax and PUT credits. The maximum annual credit for both vehicle and vehicle infrastructure credits is $6 million. A maximum total credit amount of $32.5 million is available for these credits, with credits issued since July 15, 2015, to be counted towards this total.

A separate application is required for infrastructure-related items, but all infrastructure-related items at a single location may be included in a single application. The anticipated delivery date of the infrastructure or infrastructure component must be within one year of acceptance of the credit. The anticipated construction or installation completion date of the infrastructure must be within two years of the acceptance of the credit.

The DOR must conduct outreach to interested parties to obtain input on how best to streamline the application process required for the credit, and must incorporate the findings from this effort into the rules and practices it adopts to implement and administer the credit.

The tax credits may be earned until January 1, 2030, and may be used until January 1, 2031.

Electric Vehicle Battery, Infrastructure, and Zero Emissions Bus Retail Sales and Use Tax Exemption.

The EV battery and infrastructure retail sales and use tax exemption is extended to also apply to batteries sold as a component of an electric bus at the time of the vehicle's sale and to the sale of zero emission buses.

The EV battery and infrastructure retail sales and use tax expiration date is extended to July 31, 2029.

Leasehold Excise Tax Exemption for EV Infrastructure.

The leasehold excise tax exemption for EV infrastructure is extended to July 31, 2029.

Tax Preference Performance Statement.

The Legislature's public policy objective for establishing and extending the tax incentive programs described above is to increase the use of clean alternative fuel vehicles in Washington. The Joint Legislative Audit and Review Committee (JLARC) is directed to measure the effectiveness of these tax incentive programs by evaluating the number of clean alternative fuel vehicles titled in the state. The DOL and the DOR are required to provide the JLARC with information needed for this analysis to be conducted.

Green Transportation Capital Grant Program for Public Agencies.

The WSDOT is required to establish a green transportation capital grant program to aid transit authorities in funding cost-effective capital projects such as:

To receive grant program funds for a project, a transit authority must provide matching funds that are at least equal to the grant funding provided.

The WSDOT must establish an advisory committee to assist in identifying projects, which must include representatives from Ecology, Commerce, the UTC, and at least one transit authority. The WSDOT must select projects based on a competitive process. In selecting projects, the WSDOT must consider the cost effectiveness of the reductions in carbon emissions to be produced and the benefits to the state of a lower carbon intensity transportation system.

The WSDOT must submit a prioritized list of selected projects to the Legislature by December 1 of each even-numbered year in a request for funding, and must report annually to the transportation committees of the Legislature on the status of funded grant projects.

Alternative Fuel Vehicle Technical Assistance and Education Program.

Subject to the availability of amounts appropriated for this specific purpose, the WSU Extension Energy program must establish and administer a technical assistance and education program focused on the use of alternative fuel vehicles. Education and assistance may be provided to public agencies.

Utility Providers and Electric Vehicle Charging Infrastructure.

Municipal Electric Utilities and Public Utility Districts.

The governing body of a municipal electric utility or public utility district may adopt an electrification of transportation plan that, at a minimum, establishes a finding that utility outreach and investment in the electrification of transportation infrastructure is cost-effective, using an industry-recognized cost test which may include ratepayer impact measure or total resource cost.

In adopting an electrification of transportation plan, the governing body may consider some or all of the following:

Upon making a cost-effectiveness determination, a municipal electric utility or public utility district may offer incentive programs in transportation electrification for its customers, including advertising programs that promote the utility's services, incentives, or rebates.

Investor-Owned Utility Investment in Electric Vehicle Supply Equipment.

An investor-owned utility may submit to the UTC an electrification of transportation plan that deploys EVSE or provides other electric transportation programs, services, or incentives to support electrification of transportation, provided that such EVSE, programs, or services do not increase costs to customers in excess of 0.25 percent above the benefits of electric transportation to all customers over a period consistent with the utility's planning horizon under its most recent integrated resource plan.

In reviewing an electrification of transportation plan by an investor-owned utility, the UTC must consider the following:

The UTC must acknowledge submittal of an electrification of transportation plan within four months of submittal of the plan. The UTC may provide comment on the plan in its acknowledgement letter.

The UTC may allow an incentive rate of return on investment on capital expenditures for EVSE that is deployed consistent with an electrification of transportation plan submitted by a utility. The incentive rate of return on investment applies to any EVSE project that is installed after July 1, 2015.

Electric Vehicle Car Sharing Pilot Program.

Subject to the availability of amounts appropriated for this specific purpose, the WSDOT Innovative Partnership Office is required to develop a grant pilot program to support EV car sharing programs that provide EV use opportunities to underserved communities and low- to moderate-income members of the workforce not readily served by transit or located in transportation corridors with emissions that exceed federal or state emissions standards. Nonprofit organizations with a demonstrated history of managing or implementing low-income transportation electric and shared mobility pilot programs are eligible to participate in the program.

The WSDOT must determine specific eligibility criteria based on specified evaluation and scoring requirements, the Puget Sound Clean Air Agency's report on low-income utilization of EVs, and other factors relevant to increasing EV use in underserved and low- to moderate-income communities. The WSDOT may conduct preliminary workshops to determine the best method of designing the pilot program.

Grants may be awarded to successful proposals. The total grant amount available for a project may range from $50,000 to $200,000. Grants may be awarded to fund vehicles, charging infrastructure, staff time, and any other expenses required to implement the project. No more than 10 percent of grant funds may be used for administrative expenses.

Lower-Income Electric Vehicle Financing Study.

Subject to the availability of amounts appropriated for this specific purpose, Commerce must conduct a study to identify opportunities to reduce barriers to EV adoption by lower income residents of the state through the use of vehicle and infrastructure financing assistance. The study must include an assessment of opportunities to work with nonprofit lenders to facilitate vehicle purchases through the use of loan-loss reserves and rate buy-downs by qualified borrowers purchasing EVs eligible for the alternative fuel vehicle retail sales and use tax exemptions, and may address additional financing assistance opportunities identified. The study must focus on potential borrowers who are at or below 80 percent of the state median household income, and may also address any additional opportunities identified to increase EV adoption by lower-income residents of the state.

Commerce may contract with a consultant on all or a portion of this study, and must provide a report detailing the findings of this study to the transportation committees of the Legislature by December 1, 2019.

Joint Transportation Committee Study on Carbon Emissions Reduction.

Subject to the availability of amounts appropriated for this specific purpose, the JTC must produce a report that analyzes the policy, technology, and infrastructure changes necessary to transition Washington to a low-carbon transportation network in a manner that minimizes costs and maximizes benefits for the state's economy, improves and modernizes the state's energy infrastructure, and maintains electric system reliability.

The report must be directed at achieving carbon emission reductions in the transportation sector consistent with a state economy-wide reduction target of 80 percent below 1990 carbon emission levels, and must analyze the changes necessary to transition the state to meet the following goals:

  1. All privately owned passenger and light duty vehicles of model year 2035 or later sold or registered in the state are zero emission vehicles.

  2. All vehicles of model year 2025 or later operated by agencies or local government subdivisions of the state are zero emission vehicles or use non-fossil alternative fuels when zero emission vehicles are impractical.

  3. Public transit vehicle fleets are zero emission by 2040.

  4. Short-haul air travel, rail, freight vehicles, and long-distance transit rely on non-fossil alternative fuels by 2040.

The report must include an analysis of a number of areas, including: increased utilization of public transportation and other strategies designed to reduce vehicle miles travelled; fueling stations and utility infrastructure build-out and investments in them; strategies for utilities; lost fuel tax revenue and alternative sources to replace it; impacts on low-income individuals and strategies to maximize equity during the technology transition period; impact on the state's air quality; and public transit agency infrastructure build-out. The report must outline scenarios that will achieve the goals noted above.

In producing the report, the JTC must consult with Commerce, Ecology, the WSDOT, and the UTC; conduct a series of public workshops; convene an advisory committee composed of representatives from communities who would experience the greatest impact from widespread adoption of electric and zero emission vehicles; appoint an economic and technology advancement advisory committee; and consult with other states, the federal government, and other countries.

By January 1, 2021, the report must be submitted to the committees of the House of Representatives and the Senate with jurisdiction over energy, the environment, and transportation.

Intent Section.

The Legislature intends to help reduce harmful air pollution in the state from exhaust emissions, including green house gas emissions, by encouraging the adoption of electric and other clean alternative fuel vehicles and an increased reliance on greener transit.

Appropriation: None.

Fiscal Note: Requested on February 15, 2019.

Effective Date: This bill takes effect August 1, 2019, except for sections 10 and 15 of this bill, relating to the alternative fuel commercial vehicle and infrastructure tax credit, which takes effect January 1, 2020.