Alternative jet fuels

AN ACT Relating to advancing the production and use of 1
alternative jet fuels in Washington; amending RCW 43.330.570, 2
43.21C.535, and 82.89.010; adding a new section to chapter 70A.535 3
RCW; adding a new section to chapter 84.36 RCW; adding a new section 4
to chapter 82.29A RCW; creating a new section; and providing 5
expiration dates. 6
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:7
Sec. 1. RCW 43.330.570 and 2023 c 232 s 6 are each amended to 8
read as follows: 9
(1) The office shall: 10
(a) Coordinate with federally recognized tribes, local 11
government, state agencies, federal agencies, private entities, the 12
state's public four-year institutions of higher education, labor 13
unions, and others to facilitate and promote multi-institution 14
collaborations to drive research, development, and deployment efforts 15
in the production, distribution, and use of alternative jet fuels and 16
renewable fuels including, but not limited to, green electrolytic 17
hydrogen; 18
(b) Review existing renewable fuels, alternative jet fuels, and 19
green electrolytic hydrogen initiatives, policies, and public and 20
private investments, and tax and regulatory incentives, including 21
H-1144.1
HOUSE BILL 1844
State of Washington 69th Legislature 2025 Regular Session
By Representatives Gregerson, Fitzgibbon, Berry, Reed, Parshley,
Ormsby, Hill, and Obras
Read first time 02/05/25. Referred to Committee on Environment &
Energy.
p. 1 HB 1844
assessment of adequacy of feedstock supply and in-state feedstock, 1
renewable fuels, and alternative jet fuels production;2
(c) Consider funding opportunities that provide for the 3
coordination of public and private funds for the purposes of 4
developing and deploying renewable fuels, alternative jet fuels, and 5
green electrolytic hydrogen; 6
(d) Assess opportunities for and barriers to deployment of 7
renewable fuels, alternative jet fuels, and green electrolytic 8
hydrogen in hard to decarbonize sectors of the state economy;9
(e) Request recommendations from the Washington state association 10
of fire marshals regarding fire and other safety standards adopted by 11
the United States department of energy and recognized national and 12
international fire and safety code development authorities regarding 13
renewable fuels, alternative jet fuels, and green electrolytic 14
hydrogen; 15
(f) By December 1, 2023, develop a plan and recommendations for 16
consideration by the legislature and governor on renewable fuels and 17
green electrolytic hydrogen policy and public funding including, but 18
not limited to, project permitting, state procurement, and pilot 19
projects; and 20
(g) Encourage new and support existing public-private 21
partnerships to increase coordinated planning and deployment of 22
renewable fuels, alternative jet fuels, and green electrolytic 23
hydrogen. 24
(2) The office may take all appropriate steps to seek and apply 25
for federal funds for which the office is eligible, and other grants, 26
and accept donations, and must deposit these funds in the renewable 27
fuels accelerator account created in RCW 43.330.575.28
(3) In carrying out its duties, the office must collaborate with 29
the department, the department of ecology, the department of 30
transportation, the utilities and transportation commission, electric 31
utilities in Washington state, the Washington State University 32
extension energy program, the alternative jet fuel work group 33
established in RCW 28B.30.646, and all other relevant state agencies. 34
The office must also consult with and seek to involve federally 35
recognized tribes, project developers, labor and industry trade 36
groups, and other interested parties, in the development of policy 37
analysis and recommended programs or projects. 38
(4) The office may cooperate with other state agencies in 39
compiling data regarding the use of renewable fuels and green 40
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electrolytic hydrogen in state operations, including motor vehicle 1
fleets, the state ferry system, and nonroad equipment.2
(5) Subject to the availability of amounts appropriated for this 3
specific purpose, the office must develop an alternative jet fuels 4
infrastructure competitive grant program to support research, 5
development, demonstration, engineering designs, production 6
facilities, and blending and use of alternative jet fuels 7
infrastructure.8
(a) Grant funds may be used for alternative jet fuel 9
infrastructure planning, engineering, design, research, development, 10
demonstration, and construction. Grant funds may be used to 11
contribute to matching funds for federal, state, or local requests 12
for alternative jet fuels infrastructure proposals.13
(b) Grant funds must not be used for land acquisition or 14
permitting costs.15
(c) Qualifying projects may include, but are not limited to:16
(i) Rail spurs;17
(ii) Barging infrastructure;18
(iii) Fuel loading and offloading racks; and19
(iv) Installation of blending facilities, including tanks, pipes, 20
pumps, and mixing equipment.21
(d) Infrastructure built with grant funding is intended to be for 22
the public good. Grant recipients must not restrict access to 23
infrastructure. Excessive fees for use may be considered a restricted 24
access.25
(e) To the extent practicable, the department must support grant 26
recipients with continued work on responsible streamlining of the 27
permitting process.28
(f) Beginning December 1, 2026, and annually thereafter, the 29
department must report to the governor and relevant committees of the 30
legislature on projects selected for funding and project status.31
Sec. 2. RCW 43.21C.535 and 2023 c 230 s 302 are each amended to 32
read as follows: 33
(1) The department of ecology shall prepare nonproject 34
environmental impact statements, pursuant to RCW 43.21C.030, that 35
assess and disclose the probable significant adverse environmental 36
impacts, and that identify related mitigation measures, for each of 37
the following categories of clean energy projects, and colocated 38
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battery energy storage projects that may be included in such 1
projects: 2
(a) Green electrolytic or renewable hydrogen projects;3
(b) Utility-scale solar energy projects, which will consider the 4
findings of the Washington State University least-conflict solar 5
siting process; and 6
(c) Onshore utility-scale wind energy projects.7
(2) The scope of a nonproject environmental review shall be 8
limited to the probable, significant adverse environmental impacts in 9
geographic areas that are suitable for the applicable clean energy 10
type. The department of ecology may consider standard attributes for 11
likely development, proximity to existing transmission or 12
complementary facilities, and planned corridors for transmission 13
capacity construction, reconstruction, or enlargement. The nonproject 14
review is not required to evaluate geographic areas that lack the 15
characteristics necessary for the applicable clean energy project 16
type. 17
(3)(a) The scope of nonproject environmental impact statements 18
must consider, as appropriate, analysis of the following probable 19
significant adverse environmental impacts, including direct, 20
indirect, and cumulative impacts to: 21
(i) Historic and cultural resources; 22
(ii) Species designated for protection under RCW 77.12.020 or the 23
federal endangered species act; 24
(iii) Landscape scale habitat connectivity and wildlife migration 25
corridors; 26
(iv) Environmental justice and overburdened communities as 27
defined in RCW 70A.02.010; 28
(v) Cultural resources and elements of the environment relevant 29
to tribal rights, interests, and resources including tribal cultural 30
resources, and fish, wildlife, and their habitat; 31
(vi) Land uses, including agricultural and ranching uses; and32
(vii) Military installations and operations. 33
(b) The nonproject environmental impact statements must identify 34
measures to avoid, minimize, and mitigate probable significant 35
adverse environmental impacts identified during the review. These 36
include measures to mitigate probable significant adverse 37
environmental impacts to elements of the environment as defined in 38
WAC 197-11-444 as it existed as of January 1, 2023, tribal rights, 39
interests, and resources, including tribal cultural resources, as 40
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identified in RCW 70A.65.305, and overburdened communities as defined 1
in RCW 70A.02.010. The department of ecology shall consult with 2
federally recognized Indian tribes and other agencies with expertise 3
in identification and mitigation of probable, significant adverse 4
environmental impacts including, but not limited to, the department 5
of fish and wildlife. The department of ecology shall further specify 6
when probable, significant adverse environmental impacts cannot be 7
mitigated. 8
(4) In defining the scope of nonproject review of clean energy 9
projects, the department of ecology shall request input from 10
agencies, federally recognized Indian tribes, industry, stakeholders, 11
local governments, and the public to identify the geographic areas 12
suitable for the applicable clean energy project type, based on the 13
climatic and geophysical attributes conducive to or required for 14
project development. The department of ecology will provide 15
opportunities for the engagement of tribes, overburdened communities, 16
and stakeholders that self-identify an interest in participating in 17
the processes. 18
(5) The department of ecology will offer early and meaningful 19
consultation with any affected federally recognized Indian tribe on 20
the nonproject review under this section for the purpose of 21
understanding potential impacts to tribal rights and resources, 22
including tribal cultural resources, archaeological sites, sacred 23
sites, fisheries, or other rights and interests in tribal lands and 24
lands within which an Indian tribe or tribes possess rights reserved 25
or protected by federal treaty, statute, or executive order. Certain 26
information obtained by the department of ecology under this section 27
is exempt from disclosure consistent with RCW 42.56.300.28
(6) Final nonproject environmental review documents for the clean 29
energy projects identified in subsection (1) of this section, where 30
applicable, shall include maps identifying probable, significant 31
adverse environmental impacts for the resources evaluated. Maps must 32
be prepared with the intention to illustrate probable, significant 33
impacts, creating a tool that may be used by project proponents, 34
tribes, and government to inform decision making. The maps may not be 35
used in the place of surveys on specific parcels of land or input of 36
a potentially affected federally recognized Indian tribe regarding 37
specific parcels. 38
(7) Following the completion of a nonproject review subject to 39
this section, the interagency clean energy siting coordinating 40
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council created in RCW 43.394.010 must consider the findings and make 1
recommendations to the legislature and governor on potential areas to 2
designate as clean energy preferred zones for the clean energy 3
project technology analyzed, and any taxation, regulatory, 4
environmental review, or other benefits that should accrue to 5
projects in such designated preferred zones. 6
(8) Nothing in this section prohibits or precludes projects from 7
being located outside areas designated as clean energy preferred 8
zones. 9
(9) Subject to the availability of amounts appropriated for this 10
specific purpose, the department of ecology must explore the 11
development of one or more nonproject environmental impact statements 12
for alternative jet fuel production pathways in accordance with those 13
developed for other clean energy projects in this section. For the 14
purposes of this subsection, "alternative jet fuel" has the same 15
meaning as provided in RCW 70A.535.010.16
NEW SECTION. Sec. 3. A new section is added to chapter 70A.535 17
RCW to read as follows: 18
(1) By January 1, 2026, and in compliance with RCW 43.01.036, the 19
department must submit a report to the governor and appropriate 20
committees of the legislature on the availability of biomethane. The 21
report must identify, at a minimum: 22
(a) The availability of biomethane as a feedstock for alternative 23
jet fuel within Washington state, including whether biomethane 24
availability is sufficient to support the alternative jet fuel 25
production volume identified in RCW 70A.535.150; 26
(b) The effect on biomethane availability if biomethane 27
eligibility is limited to transport on pipelines that flow toward 28
fuel production facilities in Washington state at least 50 percent of 29
the time; 30
(c) Alternative approaches to incentivize biomethane production 31
in Washington state and ensure the state benefits from such 32
production; and 33
(d) The credit prices and crediting periods required, under this 34
chapter and rules adopted by the department, to incentivize the 35
capture of fugitive methane to produce biomethane.36
(2) In developing the report required in subsection (1) of this 37
section, the department must consult with the alternative jet fuels 38
work group established in RCW 28B.30.646. 39
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(3) The department must not adopt, by rule, restrictions relating 1
to pipeline flow or geographic origin of biomethane claimed as a 2
feedstock to produce alternative jet fuel prior to the completion of 3
the report in subsection (1) of this section. 4
(4) The department must not limit the crediting periods, under 5
this chapter and rules adopted by the department, to less than 20 6
years for the voluntary capture of methane associated with biomethane 7
claimed as a feedstock to produce alternative jet fuel prior to the 8
completion of the report in subsection (1) of this section.9
Sec. 4. RCW 82.89.010 and 2022 c 185 s 1 are each amended to 10
read as follows: 11
The definitions in this section apply throughout this chapter 12
unless the context clearly requires otherwise. 13
(1) "Alternative jet fuel" has the same meaning as provided in 14
RCW 70A.535.010.15
(2) "Applicant" means a person applying for a tax deferral under 16
this chapter. 17
(((2))) (3) "Eligible investment project" means an investment 18
project of at least $2,000,000 in either qualified buildings or 19
qualified machinery and equipment, or both, for any of the following 20
new, renovated, or expanded: 21
(a) Manufacturing operations; 22
(b) Facilities to produce clean fuels, subject to the limitations 23
in subsection (((8))) (9)(d) of this section, renewable hydrogen, 24
green electrolytic hydrogen, ((or)) green hydrogen carriers , or 25
alternative jet fuels; or 26
(c) Storage facilities. 27
(((3))) (4) "Green electrolytic hydrogen" means hydrogen produced 28
through electrolysis and does not include hydrogen manufactured using 29
steam reforming or any other conversion technology that produces 30
hydrogen from a fossil fuel feedstock. 31
(((4))) (5) "Green hydrogen carrier" means a chemical compound, 32
created using electricity or renewable resources as energy input and 33
without use of fossil fuel as a feedstock, from renewable hydrogen or 34
green electrolytic hydrogen for the purposes of transportation, 35
storage, and dispensing of hydrogen. 36
(((5))) (6)(a) "Initiation of construction" means the date that a 37
building permit is issued under the building code adopted under 38
RCW 19.27.031 for: 39
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(i) Construction of the qualified building, if the underlying 1
ownership of the building vests exclusively with the person receiving 2
the economic benefit of the deferral; 3
(ii) Construction of the qualified building, if the economic 4
benefits of the deferral are passed to a lessee as provided in RCW 5
82.89.020; or 6
(iii) Tenant improvements for a qualified building, if the 7
economic benefits of the deferral are passed to a lessee as provided 8
in RCW 82.89.020. 9
(b) "Initiation of construction" does not include soil testing, 10
site clearing and grading, site preparation, or any other related 11
activities that are initiated before the issuance of a building 12
permit for the construction of the foundation of the building.13
(c) If the eligible investment project is a phased project, 14
"initiation of construction" applies separately to each phase.15
(((6))) (7) "Investment project" means an investment in either 16
qualified buildings or qualified machinery and equipment, or both, 17
including labor and services rendered in the planning, installation, 18
and construction of the project. 19
(((7))) (8) "Manufacturing" has the same meaning as "to 20
manufacture" in RCW 82.04.120. 21
(((8))) (9) "Manufacturing operation" means manufacturing 22
tangible personal property exclusively incorporated as an ingredient 23
or component of or used in the generation of: 24
(a) Passenger cars, light duty trucks, medium duty passenger 25
vehicles, buses, commercial vehicles as defined in RCW 46.04.140, or 26
motorcycles that emit no exhaust gas from the onboard source of 27
power, other than water vapor; 28
(b) Charging and fueling infrastructure for electric, hydrogen, 29
or other vehicle types that emits no exhaust gas from the onboard 30
source of power, other than water vapor; 31
(c) Renewable and green electrolytic hydrogen, including 32
preparing renewable and green electrolytic hydrogen for distribution 33
or converting it to a green hydrogen carrier; 34
(d) Clean fuel with associated greenhouse gas emissions not 35
exceeding 80 percent of the 2017 levels established under RCW 36
70A.535.020 or its successor statute under chapter 70A.535 RCW;37
(e) Electricity from renewable resources; or 38
(f)(i) Alternative jet fuel, including fueling infrastructure;39
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(ii) For the purposes of this subsection (9), "fueling 1
infrastructure" means facilities or equipment used to store, handle, 2
blend, load, unload, transport, deliver, or distribute neat or 3
blended alternative jet fuel to facilitate end-use in an aircraft. 4
"Fueling infrastructure" includes, but is not limited to, storage or 5
blending tanks, pumping systems, pipe or pipelines, mixing equipment, 6
fuel testing equipment, fuel monitoring or control equipment, fuel 7
safety equipment, and fuel loading or unloading connections to at 8
least one transportation modality used to provide the alternative jet 9
fuel to an airport for use in an aircraft; or10
(g) Storage facilities. 11
(((9))) (10) "Meaningful construction" means an active 12
construction site, where excavation of a building site, laying of a 13
building foundation, or other tangible signs of construction are 14
taking place and that clearly show a progression in the construction 15
process at the location designated by the taxpayer in the application 16
for deferral. Planning, permitting, or land clearing before 17
excavation of the building site, without more, does not constitute 18
"meaningful construction." 19
(((10))) (11) "Operationally complete" means the eligible 20
investment project is capable of being used for its intended purpose 21
as described in the application. 22
(((11))) (12) "Person" has the same meaning as in RCW 82.04.030.23
(((12))) (13) "Qualified buildings" means construction of new 24
structures, and expansion or renovation of existing structures for 25
the purpose of increasing floor space or production capacity, used 26
for manufacturing, including plant offices and warehouses or other 27
buildings for the storage of raw materials or finished goods if the 28
facilities are an essential or an integral part of a factory, mill, 29
plant, or laboratory used for manufacturing. If a qualified building 30
is used partly for manufacturing and partly for other purposes, the 31
applicable tax deferral must be determined by apportionment of the 32
costs of construction under rules adopted by the department.33
(((13))) (14) "Qualified machinery and equipment" means all new 34
industrial fixtures, equipment, and support facilities that are an 35
integral and necessary part of a manufacturing operation. "Qualified 36
machinery and equipment" includes: Computers; software; data 37
processing equipment; laboratory equipment; manufacturing components 38
such as belts, pulleys, shafts, and moving parts; molds, tools, and 39
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dies; operating structures; and all equipment used to control, 1
monitor, or operate the machinery. 2
(((14))) (15) "Recipient" means a person receiving a tax deferral 3
under this chapter. 4
(((15))) (16) "Renewable resource" has the same meaning as in RCW 5
82.08.816. 6
(((16))) (17) "Storage facility" means a facility that:7
(a) Accepts electricity as an energy source and uses a chemical, 8
thermal, mechanical, or other process to store energy for subsequent 9
delivery or consumption in the form of electricity; or10
(b) Stores renewable hydrogen, green electrolytic hydrogen, or 11
green hydrogen carrier for subsequent delivery or consumption.12
NEW SECTION. Sec. 5. A new section is added to chapter 84.36 13
RCW to read as follows: 14
(1)(a) All leasehold interests in buildings, machinery, 15
equipment, and other personal property used primarily for the 16
manufacturing or blending of alternative jet fuel, the land upon 17
which the property is located, and land that is reasonably necessary 18
in the manufacturing or blending of alternative jet fuel, but not the 19
land necessary for producing feedstocks, which together comprise a 20
new manufacturing or blending facility or an addition to an existing 21
manufacturing or blending facility, are exempt from state property 22
taxation. 23
(b) For manufacturing facilities that produce products in 24
addition to alternative jet fuel, the amount of the property tax 25
exemption is based on the annual percentage of the total value of all 26
products manufactured that is the value of the alternative jet fuel 27
manufactured. 28
(2)(a) The exemption under this section applies to facilities 29
manufacturing or blending alternative jet fuel that has at least 50 30
percent less carbon dioxide equivalent emissions than conventional 31
petroleum jet fuel. 32
(b) A claimant may be required to provide documentation to the 33
county assessor or the department that the facility has obtained a 34
carbon intensity score from the department of ecology sufficient to 35
verify the requirement under (a) of this subsection.36
(3) Claims for exemptions authorized by this section must be 37
filed with the county assessor on forms prescribed by the department 38
and furnished by the assessor. Once filed, the exemption is valid for 39
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10 assessment years following the date on which the facility or the 1
addition to the existing facility becomes operationally complete and 2
may not be renewed. The assessor must verify and approve claims as 3
the assessor determines to be justified and in accordance with this 4
section. No claims may be filed after December 31, 2030.5
(4) The department may adopt rules, pursuant to chapter 34.05 6
RCW, as necessary to properly administer this section.7
(5) The exemption under this section applies only to property 8
taxes levied for the state. A local taxing district may authorize the 9
exemption under this section for any facility located within its 10
taxing jurisdiction so long as the facility meets the requirements 11
and conditions of this section. 12
(6) For the purposes of this section, the following definitions 13
apply: 14
(a) "Alternative jet fuel" has the same meaning as in RCW 15
70A.535.010. 16
(b) "Carbon dioxide equivalent" has the same meaning as in RCW 17
70A.45.010. 18
(c) "Operationally complete" means the alternative jet fuel 19
manufacturing or blending facility is capable of being used for its 20
intended purpose. 21
(7) This section expires December 31, 2043. 22
NEW SECTION. Sec. 6. A new section is added to chapter 82.29A 23
RCW to read as follows: 24
(1)(a) All leasehold interests in buildings, machinery, 25
equipment, and other personal property used primarily for the 26
manufacturing or blending of alternative jet fuel, the land upon 27
which the property is located, and land that is reasonably necessary 28
in the manufacturing or blending of alternative jet fuel, but not the 29
land necessary for producing feedstocks, which together comprise a 30
new manufacturing or blending facility or an addition to an existing 31
manufacturing or blending facility, are exempt from state leasehold 32
taxes. 33
(b) For manufacturing facilities that produce products in 34
addition to alternative jet fuel, the amount of the leasehold tax 35
exemption is based on the annual percentage of the total value of all 36
products manufactured that is the value of the alternative jet fuel 37
manufactured. 38
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(2)(a) The exemption under this section applies to facilities 1
manufacturing or blending alternative jet fuel that has at least 50 2
percent less carbon dioxide equivalent emissions than conventional 3
petroleum jet fuel. 4
(b) A claimant may be required to provide documentation to the 5
county assessor or the department that the facility has obtained a 6
carbon intensity score from the department of ecology sufficient to 7
verify the requirement under (a) of this subsection.8
(3) Claims for exemptions authorized by this section must be 9
filed with the department on forms prescribed and furnished by the 10
department. Once filed, the exemption is valid for 10 assessment 11
years following the date on which the facility or the addition to the 12
existing facility becomes operationally complete and may not be 13
renewed. The department must verify and approve claims as the 14
department determines to be justified and in accordance with this 15
section. No claims may be filed after December 31, 2030.16
(4) The department may adopt rules, pursuant to chapter 34.05 17
RCW, as necessary to properly administer this section.18
(5) The exemption under this section applies only to the portion 19
of leasehold excise taxes that would otherwise be retained by the 20
state. A local taxing district may authorize the exemption under this 21
section for any facility located within its taxing jurisdiction so 22
long as the facility meets the requirements and conditions of this 23
section. 24
(6) For the purposes of this section, the following definitions 25
apply: 26
(a) "Alternative jet fuel" has the same meaning as in RCW 27
70A.535.010. 28
(b) "Carbon dioxide equivalent" has the same meaning as in RCW 29
70A.45.010. 30
(c) "Operationally complete" means the alternative jet fuel 31
manufacturing or blending facility is capable of being used for its 32
intended purpose. 33
(7) This section expires December 31, 2043. 34
NEW SECTION. Sec. 7. (1) This section is the tax preference 35
performance statement for the tax preferences contained in sections 3 36
through 5, chapter . . ., Laws of 2025 (sections 4 through 6 of this 37
act). This performance statement is only intended to be used for 38
subsequent evaluation of the tax preferences. It is not intended to 39
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create a private right of action by any party or to be used to 1
determine eligibility for preferential tax treatment.2
(2) The legislature categorizes these tax preferences as ones 3
intended to improve industry competitiveness as indicated in RCW 4
82.32.808(2)(b). 5
(3) It is the legislature's specific public policy objective to 6
encourage the production and use of alternative jet fuels. It is also 7
the legislature's intent to support the development of the 8
alternative jet fuels industry in Washington by providing targeted 9
tax relief for such businesses. 10
(4) The legislature intends to extend the expiration date of the 11
tax preferences contained in this act if a review finds:12
(a) An increase in the production and use of alternative jet 13
fuels in Washington by persons claiming the tax preferences in this 14
act; 15
(b) That the production and use of alternative jet fuels in this 16
state does not result in additional pollution including, but not 17
limited to, pollution from per- and polyfluoroalkyl substances, 18
noxious gases, ultrafine particles, lead, or other metals; and19
(c) That the alternative jet fuel industry has created measurable 20
economic growth in Washington. 21
(5) The review conducted by the joint legislative audit and 22
review committee must include a racial equity analysis on air travel-23
related pollution in communities near an international airport owned 24
by a port district in a county with a population greater than 25
1,500,000. 26
(6) In order to obtain the data necessary to perform the review 27
in subsection (4) of this section, the joint legislative audit and 28
review committee may access and use data from an international 29
airport owned by a port district in a county with a population 30
greater than 1,500,000, the University of Washington, reports 31
compiled by the Washington State University pursuant to RCW 32
28B.20.545, and any other data collected by the state as it deems 33
necessary. 34
(7) The joint legislative audit and review committee must 35
complete a preliminary report by December 1, 2032.36
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