FINAL BILL REPORT

ESSB 5473

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.

Background: Industrial projects of statewide significance are defined as either a border crossing project that involves both private and public investments or a private capital investment in manufacturing or research and development. Projects must meet capital investment or job creation requirements. The capital investment requirements range from $20 million for a project located in a county with a population of 20,000 or less, to $1 billion for a project located in a county with a population greater than one million. The job creation requirement is 50 positions in rural counties and 100 positions in urban counties. The Director of the Department of Community, Trade, and Economic Development (CTED) may designate a project as one of statewide significance in special circumstances.

An application for designation as an industrial project of statewide significance must be submitted to CTED. The application must include a letter of approval from jurisdictions where a project is located and must commit to providing the local staff necessary to expedite the completion of a project.

Counties and cities with projects are to enter into agreements with the Office of Permit Assistance and local project managers to expedite the processes necessary for the design and construction of projects. The Office of Permit Assistance is to provide facilitation and coordination services to expedite completion of industrial projects of statewide significance.

Summary: Industrial projects of statewide significance are renamed "projects of statewide significance." Additional projects that may be designated as projects of statewide significance are those development projects that will provide net environmental benefit or will further commercialization of innovations. To qualify, a project must be completed after January 1, 2009. Investment thresholds are reduced to $5 million in the smallest counties and $50 million in the largest counties.

CTED is given additional authority to designate as a project of statewide significance if the project (1) stems from innovation activities at public research institutions in the state or within innovation partnership zones; or (2) will provide a net environmental benefit as determined through the use of established environmental criteria set by the CTED in consultation with the Department of Ecology. Such exceptional designations will only be made after consultation with the Office of Regulatory Assistance on the availability of staff.

CTED must review applications to determine whether a project will provide significant local and/or state economic benefit, whether it is aligned with the state's comprehensive plan for economic development, and whether its designation will prevent equal consideration of all categories of project proposals.

Counties and cities requesting a project's designation as one of statewide significance must ensure the participation of local officials on the public/private team expediting a project's completion. The project proponents may provide the funding necessary for the local jurisdiction to hire the staff required to expedite the process.

Votes on Final Passage:

Senate	47	0
House	86	10	(House amended)
Senate	42	4	(Senate concurred)