The bill aims to promote the production and utilization of alternative jet fuels in Washington State by amending existing laws and introducing new provisions. It establishes a competitive grant program to support the research, development, and construction of infrastructure necessary for alternative jet fuels. The legislation mandates collaboration among various stakeholders, including tribes and local governments, to foster the development of renewable fuels and green electrolytic hydrogen. Additionally, the Department of Ecology is required to prepare nonproject environmental impact statements for clean energy projects and consult with affected tribes regarding potential impacts.

Furthermore, the bill introduces new definitions and provisions related to the manufacturing and blending of alternative jet fuel, including tax exemptions for facilities engaged in these activities. Specifically, it exempts leasehold interests in buildings, machinery, and equipment used primarily for manufacturing or blending alternative jet fuel from state property and leasehold taxes, provided that the fuel produced meets certain carbon reduction criteria. The bill also establishes a performance statement for the tax preferences granted, with criteria for extending these preferences based on increased production, minimal pollution impact, and measurable economic growth. A racial equity analysis will be included in the review process, with a preliminary report due by December 1, 2032.

Statutes affected:
Original Bill: 43.330.570, 43.21C.535, 82.89.010