Aviation impacts grants

AN ACT Relating to allocating a portion of hazardous substance 1
tax revenues derived from aviation fuel to aircraft noise and air 2
quality mitigation; amending RCW 82.21.020 and 82.21.030; adding a 3
new section to chapter 53.20 RCW; and adding a new section to chapter 4
82.21 RCW. 5
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:6
Sec. 1. RCW 82.21.020 and 2002 c 105 s 1 are each amended to 7
read as follows: 8
Unless the context clearly requires otherwise, the definitions in 9
this section apply throughout this chapter. 10
(1) "Aircraft noise and air quality mitigation allocation" means 11
an amount equal to the rate of the tax on petroleum products under 12
RCW 82.21.030(1)(b) in excess of $1.48 per barrel, multiplied by the 13
number of barrels of aviation fuel.14
(2) "Aviation fuel" has the same meaning as "aircraft fuel" as 15
provided in RCW 82.42.010.16
(3) "Hazardous substance" means: 17
(a) Any substance that, on March 1, 2002, is a hazardous 18
substance under section 101 (14) of the federal comprehensive 19
environmental response, compensation, and liability act of 1980, 42 20
U.S.C. Sec. 9601 (14), as amended by Public Law 99-499 on October 17, 21
S-3678.3
SENATE BILL 6240
State of Washington 69th Legislature 2026 Regular Session
By Senators Orwall, Hasegawa, Saldaña, and C. Wilson
Read first time 01/20/26. Referred to Committee on Ways & Means.
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1986, except that hazardous substance does not include the following 1
noncompound metals when in solid form in a particle larger than one 2
hundred micrometers ( 0.004 inches) in diameter: Antimony, arsenic, 3
beryllium, cadmium, chromium, copper, lead, nickel, selenium, silver, 4
thallium, or zinc; 5
(b) Petroleum products; 6
(c) Any pesticide product required to be registered under section 7
136a of the federal insecticide, fungicide and rodenticide act, 7 8
U.S.C. Sec. 136 et seq., as amended by Public Law 104-170 on August 9
3, 1996; and 10
(d) Any other substance, category of substance, and any product 11
or category of product determined by the director of ecology by rule 12
to present a threat to human health or the environment if released 13
into the environment. The director of ecology shall not add or delete 14
substances from this definition more often than twice during each 15
calendar year. For tax purposes, changes in this definition shall 16
take effect on the first day of the next month that is at least 17
thirty days after the effective date of the rule. The word "product" 18
or "products" as used in this ((paragraph)) subsection (3)(d) means 19
an item or items containing both: (i) One or more substances that are 20
hazardous substances under (a), (b), or (c) of this subsection or 21
that are substances or categories of substances determined under this 22
((paragraph)) subsection (3)(d) to present a threat to human health 23
or the environment if released into the environment; and (ii) one or 24
more substances that are not hazardous substances.25
(((2))) (4) "Petroleum product" means plant condensate, 26
lubricating oil, gasoline, aviation fuel, kerosene, diesel motor 27
fuel, benzol, fuel oil, residual oil, liquefied or liquefiable gases 28
such as butane, ethane, and propane, and every other product derived 29
from the refining of crude oil, but the term does not include crude 30
oil. 31
(((3))) (5) "Possession" means the control of a hazardous 32
substance located within this state and includes both actual and 33
constructive possession. "Actual possession" occurs when the person 34
with control has physical possession. "Constructive possession" 35
occurs when the person with control does not have physical 36
possession. "Control" means the power to sell or use a hazardous 37
substance or to authorize the sale or use by another.38
(((4))) (6) "Previously taxed hazardous substance" means a 39
hazardous substance in respect to which a tax has been paid under 40
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this chapter and which has not been remanufactured or reprocessed in 1
any manner (other than mere repackaging or recycling for beneficial 2
reuse) since the tax was paid. 3
(((5))) (7) "Wholesale value" means fair market wholesale value, 4
determined as nearly as possible according to the wholesale selling 5
price at the place of use of similar substances of like quality and 6
character, in accordance with rules of the department.7
(((6))) (8) Except for terms defined in this section, the 8
definitions in chapters 82.04, 82.08, and 82.12 RCW apply to this 9
chapter. 10
Sec. 2. RCW 82.21.030 and 2023 c 68 s 3 are each amended to read 11
as follows: 12
(1)(a) A tax is imposed on the privilege of possession of 13
hazardous substances in this state. Except as provided in (b) of this 14
subsection, the rate of the tax is seven-tenths of one percent 15
multiplied by the wholesale value of the substance. Moneys collected 16
under this subsection (1)(a) must be deposited in the model toxics 17
control capital account. 18
(b) For the fiscal year beginning July 1, 2019, the rate of the 19
tax on petroleum products is $1.09 per barrel. For subsequent fiscal 20
years, the rate of tax on petroleum products is determined pursuant 21
to subsection (3) of this section. The tax collected under this 22
subsection (1)(b) on petroleum products must be deposited as follows, 23
after first depositing the tax as provided in (c) and (d) of this 24
subsection, except that during the 2021-2023 biennium the deposit as 25
provided in (c) of this subsection may be prorated equally across 26
each month of the biennium: 27
(i) Sixty percent to the model toxics control operating account 28
created under RCW 70A.305.180; 29
(ii) Twenty-five percent to the model toxics control capital 30
account created under RCW 70A.305.190; and 31
(iii) Fifteen percent to the model toxics control stormwater 32
account created under RCW 70A.305.200. 33
(c) Until the beginning of the ensuing biennium after the 34
enactment of an additive transportation funding act, $50,000,000 per 35
biennium to the motor vehicle fund to be used exclusively for 36
transportation stormwater activities and projects. For purposes of 37
this subsection, "additive transportation funding act" means an act 38
enacted after June 30, 2023, in which the combined total of new 39
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revenues deposited into the motor vehicle fund and the multimodal 1
transportation account exceed $2,000,000,000 per biennium 2
attributable solely to an increase in revenue from the enactment of 3
the act. 4
(d) Beginning with taxes collected on or after October 1, 2026, 5
the portion of tax collected under (b) of this subsection (1) 6
constituting the aircraft noise and air quality mitigation allocation 7
must be deposited in the state aircraft noise and air quality 8
mitigation account created in section 3 of this act.9
(e) The department must compile a list of petroleum products that 10
are not easily measured on a per barrel basis. Petroleum products 11
identified on the list are subject to the rate under (a) of this 12
subsection in lieu of the volumetric rate under (b) of this 13
subsection. The list will be made in a form and manner prescribed by 14
the department and must be made available on the department's 15
internet website. In compiling the list, the department may accept 16
technical assistance from persons that sell, market, or distribute 17
petroleum products and consider any other resource the department 18
finds useful in compiling the list. 19
(2) Chapter 82.32 RCW applies to the tax imposed in this chapter. 20
The tax due dates, reporting periods, and return requirements 21
applicable to chapter 82.04 RCW apply equally to the tax imposed in 22
this chapter. 23
(3) For fiscal years beginning on or after July 1, 2020, the rate 24
of tax on petroleum products for the previous fiscal year must be 25
adjusted to reflect the percentage change in the implicit price 26
deflator for nonresidential structures as published by the United 27
States department of commerce, bureau of economic analysis for the 28
most recent 12-month period ending December 31st of the prior year.29
NEW SECTION. Sec. 3. A new section is added to chapter 53.20 30
RCW to read as follows: 31
The state aircraft noise and air quality mitigation account is 32
created in the state treasury. All receipts from RCW 82.21.030(1)(d) 33
must be deposited into the account. Moneys in the account may be 34
spent only after appropriation. Expenditures from the account may be 35
used only by the department of commerce to establish a grant program 36
to fund mitigation strategies within aviation-impacted communities 37
related to aviation-related air quality impacts and aviation-related 38
noise impacts. For the purposes of this section, "aviation-impacted 39
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communities" means communities located within 10 miles of an airport 1
runway operated by a port district authorized to undertake programs 2
for the abatement of aircraft noise under RCW 53.54.010.3
NEW SECTION. Sec. 4. A new section is added to chapter 82.21 4
RCW to read as follows: 5
Taxpayers subject to tax under this chapter on the possession of 6
aviation fuel must report the quantity of barrels and tax due on a 7
separate line as required by the department. 8
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