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 collaboration among stakeholders, including state agencies, tribes, and private entities, to foster the growth of the alternative fuels sector. 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 properties and leasehold interests associated with the manufacturing and blending of alternative jet fuel, effective July 1, 2029. It specifies that all necessary buildings, machinery, equipment, and land will be exempt from state property and leasehold taxes if the alternative jet fuel produced has a specified percentage lower in carbon dioxide equivalent emissions than conventional petroleum 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 review by the joint legislative audit and review committee, which will assess the effectiveness of these tax preferences and include a racial equity analysis related to air travel pollution, 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