The bill aims to promote the production and utilization of alternative jet fuels in Washington by establishing a competitive grant program to support research, development, and infrastructure related to these fuels. It mandates the Department of Ecology to develop nonproject environmental impact statements for alternative jet fuel production pathways, ensuring that these pathways yield fuels with significantly lower carbon emissions than conventional jet fuel. The legislation emphasizes stakeholder consultation, including with federally recognized tribes, to assess environmental impacts and foster collaboration in clean energy initiatives. Key amendments include a definition of "alternative jet fuel" and a stipulation that the Department cannot impose restrictions on the pipeline flow or geographic origin of biomethane used as feedstock.

Additionally, the bill introduces tax exemptions for the manufacturing and blending of alternative jet fuel, effective July 1, 2029, exempting buildings, machinery, equipment, and land used for these purposes from state property and leasehold taxes. The exemptions apply to facilities producing alternative jet fuel with a specified percentage reduction in carbon dioxide equivalent emissions compared to conventional jet fuel. The bill outlines the process for claiming these exemptions and establishes a ten-year validity period following the operational completion of the facility. It also includes definitions for key terms and mandates a performance evaluation of the tax preferences, focusing on increasing alternative jet fuel production while preventing additional pollution. A review by the joint legislative audit and review committee, including a racial equity analysis, is required, with a preliminary report due by December 1, 2032.

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