2023-2025 Washington State Biennial Budgets: Investments in Decarbonization

Decarbonization Elements of Transportation Budget as passed by the Legislature

The Transportation Budget allocates $968 million of Climate Commitment Act Funds to clean energy and decarbonization initiatives and programs, including:

$120 Million for Zero Emission Medium and Heavy-Duty Incentives

$120,000,000 of the carbon emissions reduction account—state appropriation is provided solely for implementation of zero-emission commercial vehicle infrastructure and incentive programs and for the replacement of school buses powered by fossil fuels with zero-emission school buses, including the purchase and installation of zero-emission school bus refueling infrastructure.

(a) Of this amount, $20,000,000 is for the department to administer an early action grant program to provide expedited funding to zero-emission commercial vehicle infrastructure demonstration projects. The department must contract with a third-party administrator to implement the early action grant program.

(b) The office of financial management shall place the remaining $100,000,000 in unallotted status until the joint transportation committee completes the medium and heavy duty vehicle infrastructure and incentive strategy required under section 204 of this act. The director of the office of financial management or the director’s designee shall consult with the chairs and ranking members of the transportation committees of the legislature prior to making a decision to allot these funds.

$3 Million for Hydrogen Refueling Stations

$3,000,000 of the carbon emissions reduction account—state appropriation is provided solely for hydrogen refueling infrastructure investments. The office of financial management shall place the amounts provided in this subsection in unallotted status until the joint transportation committee completes the medium and heavy duty vehicle infrastructure and incentive strategy required under section 204 of this act. The director of the office of financial management or the director’s designee shall consult with the chairs and ranking members of the transportation committees of the legislature prior to making a decision to allot these funds.

$2.5 Million for ZEV Cargo Handling Equipment

$2,500,000 of the carbon emissions reduction account—state appropriation is provided solely for zero emission cargo handling equipment incentives. The office of financial management shall place the amounts provided in this subsection in unallotted status until the joint transportation committee completes the medium and heavy duty vehicle and cargo handling and off-road equipment infrastructure and incentive strategy required under section 204 of this act. The director of the office of financial management or the director’s designee shall consult with the chairs and ranking members of the transportation committees of the legislature prior to making a decision to allot these funds.

$5 Million for Clean Off-Road Equipment

$5,000,000 of the carbon emissions reduction account—state appropriation is provided solely for clean off-road equipment incentives. The office of financial management shall place the amounts provided in this subsection in unallotted status until the joint transportation committee completes the medium and heavy duty vehicle and cargo handling and off-road equipment infrastructure and incentive strategy required under section 204 of this act. The director of the office of financial management or the director’s designee shall consult with the chairs and ranking members of the transportation committees of the legislature prior to making a decision to allot these funds.

$6.3 Million for Port Drayage Zero Emission Pilot at NWSA

$6,300,000 of the carbon emissions reduction account—state appropriation is provided solely to fund a zero emission drayage truck demonstration project (L1000324) at Northwest Seaport Alliance facilities.

$43 Million for Shore Power and Port Electrification

$26,500,000 of the carbon emissions reduction account—state appropriation is provided solely for port electrification competitive grants (L2021182). To be eligible to receive state funds under this section, a port must first adopt a policy that requires vessels that dock at the port facility to use shore power if such vessel is capable of using such power and when such power is available at the port facility.

$14,000,000 of the carbon emissions reduction account—state appropriation is provided solely to fund a zero emission shore power infrastructure demonstration project at Northwest Seaport Alliance facilities (L1000325). Local funds sufficient to fully fund this project must be contributed to the project, and any agreements required for the project must be secured.

$2,000,000 of the carbon emissions reduction account—state appropriation is provided solely for port electrification at the port of Bremerton (L1000337), which may include the purchase and installation of zero emission port shore power systems and other zero emission infrastructure, equipment, and technology.

$500,000 of the carbon emissions reduction account—state appropriation is provided solely for port electrification at the port of Anacortes (L1000338), which may include the purchase and installation of zero emission port shore power systems and other zero emission infrastructure, equipment, and technology.

$51.4 for Zero Emission Transit Grants

$12,000,000 of the multimodal transportation account—state appropriation and $39,400,000 of the climate transit programs account—state appropriation are provided solely for the green transportation capital projects identified in LEAP Transportation Document 2023-2 ALL PROJECTS as developed April 21, 2023, Program – Public Transportation Program (V). Of the amount of climate transit program account funds appropriated in this subsection, up to one percent may be used for program administration and staffing.

$14 Million for Guemes Electric Ferry

$14,000,000 of the carbon emissions reduction account—state appropriation is provided solely for the Guemes Ferry Boat Replacement project (L4000124).

$74 Million for WSF Electrification

Move Ahead Washington funding for WSF Ferry electrification plan.

$64 Million for EV Infrastructure and Access

$25,200,000 allocation under Move Ahead Washington funding for the National Electric Vehicle Infrastructure grant program.

$3,746,000 of the electric vehicle account—state appropriation and $30,000,000 of the carbon reduction emissions account—state appropriation are provided solely for the clean alternative fuel vehicle charging and refueling infrastructure program in chapter 287, Laws of 2019 (advancing green transportation adoption).

$2,100,000 of the carbon emissions reduction account—state appropriation is provided solely to fund electric vehicle charging infrastructure for the electric charging megasite project at Mount Vernon library commons.

$1,200,000 of the multimodal transportation account—state appropriation and $2,000,000 of the carbon reduction emissions account—state appropriation are provided solely for the pilot program established under chapter 287, Laws of 2019 (advancing green transportation adoption) to provide clean alternative fuel vehicle 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.

$7 Million for Electric Bike Incentives

$5,000,000 of the carbon emissions reduction account—state appropriation is provided solely for the department to establish a program for providing rebates to qualifying persons who purchase e-bikes and qualifying equipment and services from a qualifying retailer. For persons who are at least 16 years of age and reside in households with incomes at or below 80 percent of the county area median income, the amount of the rebate is up to $1,200 on the sale of an e-bike and any qualifying equipment and services. For all other persons who are at least 16 years of age, the amount of the rebate is up to $300.

For fiscal year 2025, $2,000,000 of the carbon emissions reduction account—state appropriation is provided solely for the department to establish an e-bike lending library and ownership grant program.

$5 Million for ZEV Locomotive and Charging

$5,000,000 of the carbon emissions reduction account—state appropriation is provided solely to fund the replacement of two Tacoma rail diesel-electric switcher locomotives with zero emission battery-electric switcher locomotives and to install on-site charging equipment at a Tacoma rail facility (L1000327). Local funds sufficient to fully fund this project must be contributed to the project, and any agreements required for the project must be secured.

$1.5 Million for Hydrogen/EV Charging in Wenatchee

$1,000,000 of the electric vehicle account—state appropriation and $500,000 of the multimodal transportation account—state appropriation are provided solely for a co-located DC fast charging and hydrogen fueling station near the Wenatchee or East Wenatchee area near a state route or near or on a publicly owned facility to service passenger, light-duty and heavy-duty vehicles. The hydrogen fueling station must include a DC fast charging station co-located at the hydrogen fueling station site. Funds may be used for one or more fuel cell electric vehicles that would utilize the fueling stations.

$30 Million in Match Funding for Federal Hydrogen Fueling Station Grants

The legislature recognizes that for the state to meet long-term zero emissions goals requires consumers have options when investing in different vehicle technologies, including battery electric vehicles and fuel cell electric vehicles. Therefore, it is the intent of the legislature to appropriate multimodal transportation account funds not to exceed $30,000,000 over the next three biennia as a state match for secured federal funds to finance hydrogen fueling stations in disadvantaged and overburdened communities for both passenger and light-truck vehicles and medium to heavy-duty vehicles. The department, in consultation with the interagency electric vehicle coordinating council, must pursue any federal funding available through the charging and fueling infrastructure discretionary grant program and any other sources under the federal infrastructure investment and jobs act (P.L. 23117-58).

$2.5 Million for Truck Parking

$2,500,000 of the multimodal transportation account—state appropriation is provided solely for the department to coordinate with cities, counties, ports, and private entities to develop actionable recommendations for state assistance in the development of specific candidate truck parking sites to be developed with amenities, identified by location. The department shall identify private land parcels for potential development of sites, which may include, but should not be limited to, a feasibility analysis of sites adjacent to Interstate 90 near North Bend for a 400 to 600 space truck parking site. The public benefit of each potential truck parking site must be included in this assessment. The department shall consider opportunities for the state to provide assistance in the development of truck parking sites, including possible opportunities to provide assistance in land acquisition and evaluating land use requirements. The department must update the transportation committees of the legislature on agency activities and their status by December 1, 2023, and to provide a final report to the transportation committees of the legislature by December 1, 2024.

Decarbonization Elements of Capital Budget as passed by the Legislature

The Capital Budget allocates $717 million of Climate Commitment Act Funds to clean energy and decarbonization initiatives and programs, including:

$163 Million for Home Electrification and Appliance Rebates Program (HEAR)

$83,000,000 of the general fund—federal appropriation and $75,000,000 of the climate commitment account—state appropriation are provided solely for the department to administer grants to eligible third-party administrators for heat pump and other high-efficiency electric equipment rebates, with a focus on low/moderate income households and small businesses. $5,000,000 of the climate commitment account—state appropriation is provided solely for the department to administer grants to eligible third-party administrators for heat pumps for adult family homes.

$39 Million for Large Scale Solar Innovation Projects

The appropriation in this section is subject to the following conditions and limitations: $20,000,000 is provided solely for the Yakama Nation Solar project and $19,000,000 is provided solely for a competitive grant program for large scale solar innovation projects.

$20 Million for the DOE Hydrogen HUB Application

The appropriation in this section is provided solely for state match for the Pacific Northwest hydrogen association application, supported by the department, for a United States department of energy hydrogen hub grant.

$20 Million for Reducing Emissions in Hard-to-Decarbonize Sectors Program 

The appropriation in this section is provided solely for the department to administer a grant program for greenhouse gas emissions reduction strategies for hard to decarbonize sectors, including industry, aviation, and maritime.

$50 Million for Energy Retrofits and Solar Power for Public Buildings 

The appropriation in this section is provided solely for grants to local governments, public higher education institutions, school districts, tribal governments, and state agencies for improvements to facilities and related projects that result in energy and operational cost savings.

$83 Million for Carbon Sequestration Forests

$83,000,000 of the appropriation is provided solely for the purchase of property to be managed for increased carbon sequestration and carbon storage through sustainable harvests and as replacement trust lands for existing encumbered forested state trust lands; and for structurally complex, carbon dense, forested state trust lands that may be transferred from trust status. The amount provided in this section is also to be used to carry out additional silvicultural activities on state trust lands, to convene a stakeholder group and conduct additional analysis related to the management of forested state trust lands, and to cover department costs to implement this section. 

Decarbonization Elements of Operating Budget as passed by the Legislature

The Operating Budget allocates $444 million of Climate Commitment Act Funds and over $200 million in general funds to clean energy and decarbonization initiatives and programs, including:

$138 Million for Electric Vehicle Charging Infrastructure

$69,000,000 of the general fund—state appropriation for fiscal year 2024 and $69,000,000 of the general fund—state appropriation for fiscal year 2025 are provided solely for the development of community electric vehicle charging infrastructure.

$50 Million for ZEV Purchase Incentives for Low-Income

$50,000,000 of the electric vehicle incentive account—state appropriation is provided solely for the department to implement programs and incentives that promote the purchase of or conversion to alternative fuel vehicles, prioritizing programs that will serve individuals living in an overburdened community, individuals who are in greatest need of this assistance in order to reduce the carbon emissions and other environmental impacts of their current mode of transportation, and low-income communities.

$30 Million for Farms and Fields Program with $22 Million to Dairy Digesters

$30,000,000 of the climate commitment account—state appropriation is provided solely for grants through the sustainable farms and fields program for organic agricultural waste and greenhouse gas emissions reduction through climate-smart livestock management. Of the amounts provided in this subsection, the commission may grant up to $22,000,000 toward cost share agreements for anaerobic digester development to dairy farm owners. Grants awarded for anaerobic digester development must have at least a 50 percent nonstate match and be awarded through a competitive process that considers:

The commission may grant up to $6,000,000 for technical and financial assistance to increase implementation of climate-smart livestock management, alternative manure management, and other best management practices to reduce greenhouse gas emissions and increase carbon sequestration; and may grant up to $2,000,000 for research on, or demonstration of, projects with greenhouse gas reduction benefits. 

$123 Million for Solar + Storage Projects

$37,000,000 of the general fund—state appropriation for fiscal year 2024 and $37,000,000 of the general fund—state appropriation for fiscal year 2025 are provided solely for grants to increase solar deployment and installation of battery storage in community buildings to enhance grid resiliency and provide backup power for critical needs.

$19,500,000 of the general fund—state appropriation for fiscal year 2024 and $19,500,000 of the general fund—state appropriation for fiscal year 2025 are provided solely for a grant program to provide solar and battery storage community solar projects for public assistance organizations serving low-income communities. Priority must be given to projects sited on “preferred sites” such as rooftops, structures, existing impervious surfaces, landfills, brownfields, previously developed sites, irrigation canals and ponds, storm water collection ponds, industrial areas, dual-use solar projects that ensure ongoing agricultural operations, and other sites that do not displace critical habitat or productive farmland.

$10,664,000 of the climate commitment account—state appropriation is provided solely for the department to administer a pilot program to provide grants and technical assistance to support planning, predevelopment, and installation of commercial, dual-use solar power demonstration projects. Eligible grant recipients may include, but are not limited to, nonprofit organizations, public entities, and federally recognized tribes.

$10 Million for Clean Energy Siting Grants

$10,000,000 of the climate commitment account—state appropriation is provided solely for grants to support port districts, counties, cities, towns, special purpose districts, any other municipal corporations or quasi-municipal corporations, and tribes to support siting and permitting of clean energy projects in the state. Eligible uses of grant funding provided in this section include supporting predevelopment work for sites intended for clean energy projects, land use studies, conducting or engaging in planning efforts such as planned actions and programmatic environmental impact statements, and staff to improve permit timeliness and certainty.

$20.6 Million for Public Building Energy Efficiency

$20,592,000 of the climate commitment account—state appropriation is provided solely for the department to administer a grant program to assist owners of public buildings in covering the costs of conducting an investment grade energy audit for those buildings. Public buildings include those owned by state and local governments, tribes, and school districts.