Report - 2023 01 19 A30404 D248116 Bill Report 5229 Sbr Bfgt Ta 23

Summary

A Senate Bill Report on SB 5229, an act relating to accelerating rural job growth and promoting economic recovery across Washington through site readiness grants, current as of January 17, 2023 and prepared by nonpartisan staff of the Senate Committee on Business, Financial Services, Gaming & Trade. The bill is sponsored by Senators Frame, Warnick, Kuderer, Lovelett, Nobles, Randall, Salomon, Shewmake and Torres. The report describes the Community Economic Revitalization Board, formed in 1982, and its planning grants, currently capped at $50,000. It states the bill adds costs of achieving site readiness as an allowable grant use and removes the $50,000 cap until December 31, 2028, after which grants may not exceed $200,000. The report closes with staff summaries of supporting and other testimony.

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                            SENATE BILL REPORT
                                  SB 5229

                                      As of January 17, 2023

Title: An act relating to accelerating rural job growth and promoting economic recovery across
     Washington through site readiness grants.

Brief Description: Accelerating rural job growth and promoting economic recovery across
     Washington through site readiness grants.

Sponsors: Senators Frame, Warnick, Kuderer, Lovelett, Nobles, Randall, Salomon, Shewmake
    and Torres.

Brief History:
     Committee Activity: Business, Financial Services, Gaming & Trade: 1/17/23.


                                     Brief Summary of Bill
           • Adds site readiness as an allowable use of the Community Economic
             Revitalization Board's grants for certain planning activities.
           • Removes the cap for planning grants until December 31, 2028, after
             which it may not exceed $200,000.


SENATE COMMITTEE ON BUSINESS, FINANCIAL SERVICES, GAMING & TRADE

     Staff: Kellee Gunn (786-7429)

     Background: The Community Economic Revitalization Board (CERB) was formed
     in 1982 to respond to local economic development in Washington communities. CERB
     provides funding to local governments and federally recognized tribes for public
     infrastructure which supports private development or expansion resulting in jobs and capital
     sector improvements. The Department of Commerce provides administrative support for the
     program.




     This analysis was prepared by non-partisan legislative staff for the use of legislative
     members in their deliberations. This analysis is not part of the legislation nor does it
     constitute a statement of legislative intent.

Senate Bill Report                              -1-                                             SB 5229
     CERB's funding support may be provided as a loan or a grant. Certain activities, such as
     facilitating or promoting gambling and projects that would displace existing jobs to another
     community, are not eligible.

     Applications for financial assistance must include certain information regarding job
     creation, support from local political subdivision and economic development organization
     or workforce council and establish local match and participation. Prioritization is given to
     certain projects that demonstrate or provide certain information regarding community
     benefit, employee benefits, planning, feasibility, and permitting.

     Grants, not to exceed $50,000, may be awarded to support site-specific plans, studies, and
     analyses that address environmental impacts, capital facilities, land use, permitting,
     feasibility, marketing, project engineering, design, site planning, and project debt and
     readiness.

     Summary of Bill: Costs of achieving site readiness is added as an allowable use of
     CERB's grant funding for site-specific plans, studies, and analyses. The $50,000 cap for
     grants is removed until December 31, 2028, after which it may not exceed $200,000.

     Appropriation: None.

     Fiscal Note: Requested on January 10, 2023.

     Creates Committee/Commission/Task Force that includes Legislative members: No.

     Effective Date: Ninety days after adjournment of session in which bill is passed.

     Staff Summary of Public Testimony: PRO: This is a rural economic development bill.
     Site readiness is an important component for CERB projects. CERB is a bipartisan group
     that supports the entire state. The 50k limit is extraordinarily low. Removing the cap will
     make sure we capitalize on federal dollars, and establishes a higher limit of $200k at the end
     of 2028. Eliminating the cap and raising the cap permanently will help get projects started.

     Our port has been a recipient of CERB funds about 13 times. Federal funding for these
     projects is cumbersome for small ports. To be competitive for federal grants, a port needs to
     have 10% of the project completed. The planning program cap was established at $50k in
     1999. The costs of these activities have gone up since then. CERB grants are a relied upon
     tool in our rural communities. CERB has a high return rate on these dollars. Getting sites
     ready to go will help job growth. The pandemic devastated communities and families. We
     are past the triage phase; we need tools and resources. We were disappointed to see
     language removed regarding shovel ready projects, that was in a previous version from last
     year. The site readiness program at Commerce is geared towards sophisticated and large
     ports. This bill will help the others.



Senate Bill Report                             -2-                                         SB 5229
     OTHER: Site readiness grants for large industrial projects, through another Commerce
     program, have been successful. The state provided $2.5 million for the site-readiness grant
     program, and there was over $12 million in requests. The demand is there. Four ports and
     two tribes received these site-readiness grants. Food processing, aerospace, and
     manufacturing have all been recipients. Site readiness grants can help get a sewer line put
     in, or do other foundational work to make a project viable.

     Persons Testifying: PRO: Senator Noel Frame, Prime Sponsor; Jennifer Wray-Keene, Port
     of Woodland; Michael Echanove, CERB - Community Economic Revitalization Board;
     Suzanne Dale Estey, Washington Economic Development Association; Chris Herman,
     Washington Public Ports Association.

     OTHER: Robert Duff, Washington State Department of Commerce.

     Persons Signed In To Testify But Not Testifying: No one.




Senate Bill Report                            -3-                                       SB 5229


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