(1) The authority recognizes its responsibilities to adopt rules pertaining to the State Environmental Policy Act (SEPA). The authority has reviewed SEPA and its own operations. The authority concludes that all actions that the authority is authorized to undertake under chapter 365, Laws of 2002 are exempt from SEPA pursuant to WAC 197-11-904(4). The authority is an administrative agency created to issue bonds securitizing revenues from the master settlement agreement between the state and tobacco product manufacturers. The authority's operations will consist of activities in support of and related to this bond issuance responsibility. The issuance of bonds and activities with respect to related financing agreements and approvals constitute administrative, fiscal or personnel activities exempt under WAC 197-11-800 (15)(d).

(2) In accordance with WAC 197-11-904(4), the authority adopts this statement regarding the adoption of rules in compliance with SEPA.