Senate Bill 5269 — Transforming and Growing Washington State Manufacturing (2023 Regular Session)

Summary

Senate Bill 5269 of the State of Washington, 2023 Regular Session, sponsored by Senators Shewmake, Keiser, Nguyen, Randall, Valdez, and Wellman. It was read first time on January 11, 2023 and referred to the Committee on Business, Financial Services, Gaming & Trade. The title describes an act relating to transforming and growing Washington state manufacturing, adding a new section to chapter 43.330 RCW, and creating new sections. Section 1 states legislative findings, and Section 2 directs the department of commerce to develop a proactive state industrial strategy by commissioning an independent assessment by October 1, 2023. Section 4 provides that the act may be known and cited as the Washington clean manufacturing leadership act.

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Full text

     S-0529.1

                               SENATE BILL 5269


     State of Washington       68th Legislature         2023 Regular Session

     By Senators Shewmake, Keiser, Nguyen, Randall, Valdez, and Wellman

     Read first time 01/11/23.       Referred   to   Committee   on   Business,
     Financial Services, Gaming & Trade.




 1       AN ACT Relating to transforming and growing        Washington state
 2   manufacturing; adding a new section to chapter         43.330 RCW; and
 3   creating new sections.


 4   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:


 5       NEW SECTION. Sec. 1. The legislature finds and declares that:
 6       (1) Washington state, with its strong climate commitments, highly
 7   skilled workforce, and existing world-class manufacturing base is
 8   well positioned to be a global leader in clean manufacturing.
 9       (2) A strong state and domestic manufacturing sector can provide
10   stable, high-wage jobs and is a prerequisite to achieving Washington
11   state's statutory commitment to net zero greenhouse gas emissions by
12   2050.
13       (3) All Washingtonians deserve the opportunity of a high-road
14   manufacturing career. In building the Washington manufacturing
15   workforce pipeline, the state should fully leverage the transferable
16   skills of our existing manufacturing workforce and develop a
17   comprehensive, in-state pipeline with wraparound services and
18   equitable opportunities to ensure that every Washingtonian has a fair
19   shake at a manufacturing career and intergenerational well-being and
20   career growth opportunities.


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 1       (4) A holistic and coordinated state industrial strategy that
 2   seeks simultaneously to transform and revitalize Washington state's
 3   manufacturing base is vital to prevent the leakage of jobs and carbon
 4   pollution.
 5       (5) Washington has demonstrated a deep commitment to growing
 6   manufacturing. In 2021, the legislature set a goal of doubling the
 7   state's manufacturing base over 10 years. In 2022, the legislature
 8   created tax incentives and updated siting and permitting practices to
 9   accelerate   the  in-state    production   of  clean   energy product
10   manufacturing. Developing a statewide industrial strategy is an
11   important complement to accelerate progress and maximize the benefit
12   of new tax incentives and siting and permitting practices.
13       (6) The bipartisan infrastructure act and inflation reduction act
14   present a once in a generation opportunity to rapidly transform and
15   grow Washington's manufacturing base in a way that advances the
16   state's climate goals. The state has an important role to play in
17   ensuring   that    Washington    fully   leverages   federal  funding
18   opportunities and that the benefits are shared equitably.
19       (7) Washington must take steps to ensure that the transformation
20   and growth of the state's manufacturing base simultaneously addresses
21   and does not contribute to the disproportionate burden of pollution
22   on overburdened communities.


23       NEW SECTION. Sec. 2. (1)(a) By October 1, 2023, the department
24   of commerce must develop a proactive state industrial strategy by
25   commissioning   an  independent   assessment   of opportunities  for
26   Washington to capture new and emerging industries and strengthen its
27   existing manufacturing base. This independent assessment must be
28   completed and made publicly available by October 1, 2024, with an
29   interim progress report due on January 1, 2024.
30       (b) The independent assessment must include, but is not limited
31   to:
32       (i) Assessing how the transition to net-zero emissions by 2050
33   will impact the potential futures of manufacturing in Washington,
34   including identifying specific opportunities for Washington to
35   actively seek investment in new and emerging industries and to
36   transform and strengthen the state's existing manufacturing base to
37   meet the needs of a net-zero economy, taking into account the
38   Washington's existing key sectors, job quality, and regional
39   diversity;
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 1       (ii) Assessing the needs of Washington's existing manufacturers,
 2   including supply chain challenges and resources required to meet the
 3   statutory greenhouse gas emissions reductions in RCW 70A.45.020;
 4       (iii) Identifying opportunities to build and maximize the
 5   environmental and economic benefits of a circular economy for both
 6   new and existing industries in building out and strengthening
 7   Washington's manufacturing base;
 8       (iv) Identifying what is required to attract new investment and
 9   transform and strengthen Washington's existing manufacturing base,
10   including needs related to:
11       (A) Transportation and port infrastructure;
12       (B) Supply chains;
13       (C) Workforce; and
14       (D) Energy; and
15       (v) Identifying opportunities to support minority and women-owned
16   firms and small and medium-sized firms in capturing new and emerging
17   industries.
18       (c) The workforce assessment referenced in (b)(iv)(C) of this
19   subsection should: (i) Catalogue and examine how to maximize the use
20   of the existing manufacturing workforce's transferable skills; (ii)
21   address any remaining skills gaps and identify opportunities to build
22   a manufacturing workforce pipeline that ensures all current and
23   future Washingtonians have fair access to a manufacturing career by
24   sector; and (iii) ensure equitable and accessible pathways and
25   advancement opportunities in manufacturing by sector.
26       (d) The energy assessment referenced in (b)(iv)(D) of this
27   subsection should include the quantity, price, and location of
28   electricity necessary to decarbonize and grow Washington's existing
29   manufacturing base and capture new and emerging industries.
30       (e) The independent assessment will not replace but may inform
31   the work of the manufacturing council created in RCW 43.330.762 to
32   advise and consult on the department of commerce's recommendations to
33   achieve the goals established in RCW 43.330.760.


34       NEW SECTION.    Sec. 3.   (1) The department of commerce must
35   appoint an industrial policy advisor to ensure that Washington state
36   fully leverages available federal funding for manufacturing to meet
37   the state's economic development goals in RCW 43.330.760 and the
38   statutory greenhouse gas emissions reductions in RCW 70A.45.020 and


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 1   guide the implementation of the state industrial strategy created
 2   pursuant to section 2 of this act.
 3       (2) The industrial policy advisor must:
 4       (a) Track federal and other funding opportunities to transform
 5   and strengthen existing Washington manufacturers and promote the
 6   growth of new and emerging industries;
 7       (b) Alert Washington manufacturers to relevant federal and other
 8   funding opportunities;
 9       (c) Support Washington manufacturers in applying for federal and
10   other funding opportunities and in completing required reporting;
11       (d) Work to ensure that Washington's pursuit of its goals in RCW
12   43.330.760 and 70A.45.020 are aligned and mutually reinforcing;
13       (e)   Foster   interagency  and    intraagency  coordination   and
14   collaboration, including with the department of commerce sector
15   leads,   on   manufacturing-related   policymaking   and   activities,
16   including both climate and economic development manufacturing-related
17   policymaking;
18       (f) Coordinate with the workforce innovation sector lead,
19   particularly with respect to building the manufacturing workforce
20   pipeline; and
21       (g) Provide quarterly reports to the manufacturing council
22   created in RCW 43.330.762.
23       (3) The industry policy advisor may also:
24       (a) Form expert committees with industry representatives to
25   develop sector-specific strategies for attracting new investment and
26   transforming and strengthening existing manufacturing consistent with
27   the industrial strategy created pursuant to section 2 of this act;
28       (b) Assist local governments with economic plans to attract new
29   investment and transform and strengthen existing manufacturing
30   consistent with the industrial strategy created pursuant to section 2
31   of this act; and
32       (c) Support communities negatively impacted by the closure or
33   relocation of manufacturing facilities by supporting efforts to
34   attract new investment consistent with the industrial strategy
35   created pursuant to section 2 of this act and facilitate the movement
36   of existing skilled manufacturing workers into new industrial
37   sectors.


38       NEW SECTION.   Sec. 4.   This act may be known and cited as the
39   Washington clean manufacturing leadership act.
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1       NEW SECTION. Sec. 5. Section 2 of this act is added to chapter
2   43.330 RCW and codified with the subchapter heading of "MANUFACTURING
3   AND RESEARCH AND DEVELOPMENT SECTOR PROMOTION."

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