Green fertilizer incentives

AN ACT Relating to establishing a green fertilizer incentive 1
program to support the production and adoption of low-carbon nitrogen 2
fertilizer in Washington state; and adding a new chapter to Title 15 3
RCW. 4
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:5
NEW SECTION. Sec. 1. (1) The legislature finds that fertilizer 6
represents a significant and volatile input cost for Washington's 7
agricultural producers and that most nitrogen fertilizer used in 8
Washington is imported from out-of-state or foreign sources dependent 9
on fossil natural gas feedstocks.10
(2) The legislature further finds that advances in industrial 11
manufacturing now allow for the production of nitrogen fertilizer 12
using renewable energy and air-sourced nitrogen, resulting in 13
substantial reductions in life-cycle greenhouse gas emissions 14
compared to conventional production methods. 15
(3) The legislature intends to position Washington as a national 16
leader in the development and adoption of domestically produced, low-17
carbon fertilizer; to strengthen agricultural resilience and supply-18
chain security; and to create high-wage manufacturing and rural 19
economic opportunities associated with the clean energy transition.20
S-3666.1
SENATE BILL 5971
State of Washington 69th Legislature 2026 Regular Session
By Senators Boehnke, Dozier, Liias, and Shewmake
Prefiled 01/05/26. Read first time 01/12/26. Referred to Committee
on Agriculture & Natural Resources.
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(4) Therefore, the legislature establishes the green fertilizer 1
incentive program within the department of agriculture, to be 2
implemented by rule by July 1, 2028. The legislature further intends 3
that the green fertilizer program is funded in whole or part by 4
appropriations from the accounts created in chapter 70A.65 RCW, known 5
as the climate commitment act, in addition to other sources.6
NEW SECTION. Sec. 2. The definitions in this section apply 7
throughout this chapter unless the context clearly requires 8
otherwise.9
(1) "Department" means the department of agriculture.10
(2) "Green fertilizer" means nitrogen-based fertilizer produced 11
using manufacturing processes that achieve at least an 80 percent 12
reduction in life-cycle greenhouse gas emissions compared to 13
conventional natural gas-based production, as determined by the 14
department. 15
(3) "Program" means the green fertilizer incentive program 16
created in section 3 of this act. 17
NEW SECTION. Sec. 3. (1) Subject to the availability of amounts 18
appropriated for this specific purpose, the department shall 19
establish and administer the green fertilizer incentive program to 20
promote the in-state production and agricultural utilization of green 21
fertilizer.22
(2) The program must be designed consistent with the 23
recommendations of the department's October 2024 report 24
"Incentivizing the Adoption of Washington-Made Green Fertilizer" and 25
may include, but is not limited to: 26
(a) Price-based reimbursement grants or point-of-sale rebates to 27
farmers purchasing green fertilizer; 28
(b) Performance-based or production-based incentive payments to 29
in-state green fertilizer manufacturers or distributors;30
(c) Equipment and training grants to support adoption of new 31
green fertilizer application technologies; and 32
(d) Other mechanisms determined by the department to be necessary 33
to encourage use and production of green fertilizer or to reduce the 34
market and adoption risk of green fertilizer. 35
(3) Eligible participants in the program include, but are not 36
limited to: 37
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(a) Washington farmers, green fertilizer producers, and green 1
fertilizer distributors; and 2
(b) Tribal governments and tribal agricultural cooperatives.3
(4) The department must administer the program in consultation 4
with the department of commerce and the department of ecology to 5
ensure alignment with state manufacturing, energy, and emissions 6
reduction policies. 7
(5) Implementation costs and the activities described in 8
subsection (2) of this section are subject to appropriation from the 9
climate commitment account created in RCW 70A.65.260.10
NEW SECTION. Sec. 4. (1) The department shall adopt rules to 11
implement this chapter by July 1, 2028.12
(2) The rules adopted under this section must:13
(a) Establish eligibility criteria, application procedures, and 14
verification requirements for program participants;15
(b) Define a fertilizer price index and establish a methodology 16
for determining reimbursement or incentive levels;17
(c) Ensure that all program expenditures and benefits are 18
administered consistent with the environmental justice and equity 19
provisions of chapters 70A.02 and 70A.65 RCW; and 20
(d) Provide for coordination with other state and federal 21
incentive programs to maximize leverage of private and public 22
investment. 23
(3) By December 1, 2027, in accordance with RCW 43.01.036, the 24
department must submit a preliminary report to the appropriate 25
committees of the legislature and the governor, summarizing:26
(a) The proposed program design; 27
(b) Cost modeling; and 28
(c) Readiness for implementation. 29
(4) The program takes effect upon completion of rule making, 30
subject to the availability of amounts appropriated for this specific 31
purpose, and subsequent appropriation by the legislature.32
NEW SECTION. Sec. 5. Sections 1 through 4 of this act 33
constitute a new chapter in Title 15 RCW.34
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