This bill aims to address the critical need for fish habitat restoration in Washington state, particularly in light of a federal court injunction concerning salmon and steelhead populations. It acknowledges the significant habitat loss attributed to hydropower dams and road culverts that hinder salmon passage. To meet the state's obligations, the legislation proposes a special tax on light and power utility businesses, which will generate revenue for special tax revenue bonds dedicated to financing habitat restoration projects. The estimated cost for these projects exceeds $5 billion, and the bill seeks to establish a funding mechanism that does not impose additional burdens on taxpayers.

Key provisions include amendments to existing tax laws, such as adjusting the tax rate for light and power businesses and creating a new federal injunction salmon habitat restoration account. The bill also allows for the issuance of special tax revenue bonds, secured by the new tax revenues, to fund projects aimed at mitigating fish passage barriers and enhancing salmon recovery efforts. Furthermore, it empowers the state finance committee to issue refunding bonds for outstanding bonds, with proceeds managed according to the committee's guidelines. The legislation specifies that if the Washington State Supreme Court mandates the inclusion of bond principal and interest in the state's aggregate debt calculations, certain sections of the act will expire. The new provisions will form a chapter in Title 77 of the Revised Code of Washington (RCW) and are set to take effect on January 1, 2026.

Statutes affected:
Original Bill: 82.16.020, 82.18.040, 82.45.230
Substitute Bill: 82.16.020, 82.18.040, 82.45.230