Second Substitute Senate Bill 5269 — Washington State Manufacturing (2023 Regular Session)

Summary

Second Substitute Senate Bill 5269 of the 68th Legislature, 2023 Regular Session, State of Washington, by Senate Ways & Means (originally sponsored by Senators Shewmake, Keiser, Nguyen, Randall, Valdez and Wellman), read first time 02/24/23. The act relates to transforming and growing Washington state manufacturing and adds a new section to chapter 43.330 RCW. The legislature's findings discuss clean manufacturing and a state industrial strategy. A short-title section says the act may be known and cited as the Washington clean manufacturing leadership act.

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Full text

     S-1827.1

                      SECOND SUBSTITUTE SENATE BILL 5269


     State of Washington         68th Legislature     2023 Regular Session

     By Senate Ways & Means (originally sponsored by Senators Shewmake,
     Keiser, Nguyen, Randall, Valdez, and Wellman)

     READ FIRST TIME 02/24/23.




 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.


                                       p. 1                         2SSB 5269
 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) The department of commerce must
24   perform an independent assessment of opportunities for Washington to
25   capture new and emerging industries that align with statewide
26   greenhouse   gas  reduction   limits  and   strengthen  its  existing
27   manufacturing base. By October 1, 2024, and in compliance with RCW
28   43.01.036, the department of commerce shall submit the independent
29   assessment to the appropriate committees of the legislature.
30       (2) By June 1, 2025, the department of commerce must develop a
31   proactive state industrial strategy based on the independent
32   assessment required by subsection (1) of this section.
33       (3) The independent assessment must include, but is not limited
34   to:
35       (a) Assessing how the transition to net-zero emissions by 2050
36   will impact the potential futures of manufacturing in Washington,
37   including identifying specific opportunities for Washington to
38   actively seek investment in new and emerging industries and to
39   transform and strengthen the state's existing manufacturing base to
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 1   meet the needs of a net-zero economy, taking into account the
 2   Washington's existing key sectors, job quality, and regional
 3   diversity;
 4       (b) Assessing the needs of Washington's existing manufacturers,
 5   including supply chain challenges and resources required to meet the
 6   statutory greenhouse gas emissions reductions in RCW 70A.45.020;
 7       (c)   Identifying  opportunities   to  build   and  maximize the
 8   environmental and economic benefits of a circular economy for both
 9   new and existing industries in building out and strengthening
10   Washington's manufacturing base;
11       (d) Identifying what is required to attract new private
12   investment and transform and strengthen Washington's existing
13   manufacturing base, including needs related to:
14       (i) Transportation and port infrastructure;
15       (ii) Supply chains;
16       (iii) Workforce; and
17       (iv) Energy;
18       (e) Identifying opportunities to support minority and women-owned
19   firms and small and medium-sized firms in capturing new and emerging
20   industries;
21       (f) Identifying existing and potential future gaps in the state's
22   manufacturing sector that inhibit in-state manufacturers from
23   producing the necessary goods, services, and infrastructure to
24   transition to the net-zero economy and attract new investment in the
25   state to accelerate the in-state production of clean energy product
26   manufacturing; and
27       (g) Evaluating opportunities for the state's use of public
28   ownership   investment   in  developed  and   emerging  manufacturing
29   industries to address the existing and potential future gaps
30   identified in (f) of this subsection. This evaluation shall provide
31   recommendations on the highest and best uses of public resources as
32   part of the state industrial strategy as provided in subsection (2)
33   of this section.
34       (4) The workforce assessment referenced in subsection (3)(d)(iii)
35   of this section should: (a) Catalogue and examine how to maximize the
36   use of the existing manufacturing workforce's transferable skills;
37   (b) address any remaining skills gaps and identify opportunities to
38   build a manufacturing workforce pipeline that ensures all current and
39   future Washingtonians have fair access to a manufacturing career by


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 1   sector; and (c) ensure equitable and accessible pathways and
 2   advancement opportunities in manufacturing by sector.
 3       (5) The energy assessment referenced in subsection (3)(d)(iv) of
 4   this section should include the quantity, price, and location of
 5   electricity necessary to decarbonize and grow Washington's existing
 6   manufacturing base and capture new and emerging industries.
 7       (6) The independent assessment will not replace but may inform
 8   the work of the manufacturing council created in RCW 43.330.762 to
 9   advise and consult on the department of commerce's recommendations to
10   achieve the goals established in RCW 43.330.760.


11       NEW SECTION.    Sec. 3.   (1) The department of commerce must
12   appoint an industrial policy advisor to ensure that Washington state
13   fully leverages available federal funding for manufacturing to meet
14   the state's economic development goals in RCW 43.330.760 and the
15   statutory greenhouse gas emissions reductions in RCW 70A.45.020 and
16   guide the implementation of the state industrial strategy created
17   pursuant to section 2 of this act.
18       (2) The industrial policy advisor must:
19       (a) Track federal and other funding opportunities to transform
20   and strengthen existing Washington manufacturers and promote the
21   growth of new and emerging industries;
22       (b) Alert Washington manufacturers to relevant federal and other
23   funding opportunities;
24       (c) Support Washington manufacturers in applying for federal and
25   other funding opportunities and in completing required reporting;
26       (d) Work to ensure that Washington's pursuit of its goals in RCW
27   43.330.760 and 70A.45.020 are aligned and mutually reinforcing;
28       (e) Foster interagency and coordination and collaboration,
29   including with the department of commerce sector leads, on
30   manufacturing-related policymaking and activities, including both
31   climate and economic development manufacturing-related policymaking;
32       (f) Coordinate with the workforce innovation sector lead,
33   particularly with respect to building the manufacturing workforce
34   pipeline; and
35       (g) Provide quarterly reports to the manufacturing council
36   created in RCW 43.330.762.
37       (3) The industry policy advisor may also:
38       (a) Form expert committees with industry representatives to
39   develop sector-specific strategies for attracting new investment and
                                     p. 4                        2SSB 5269
 1   transforming and strengthening existing manufacturing consistent with
 2   the industrial strategy created pursuant to section 2 of this act;
 3       (b) Assist local governments with economic plans to attract new
 4   investment and transform and strengthen existing manufacturing
 5   consistent with the industrial strategy created pursuant to section 2
 6   of this act; and
 7       (c) Support communities negatively impacted by the closure or
 8   relocation of manufacturing facilities by supporting efforts to
 9   attract new investment consistent with the industrial strategy
10   created pursuant to section 2 of this act and facilitate the movement
11   of existing skilled manufacturing workers into new industrial
12   sectors.

13       NEW SECTION.   Sec. 4.   This act may be known and cited as the
14   Washington clean manufacturing leadership act.


15       NEW SECTION. Sec. 5. Section 2 of this act is added to chapter
16   43.330 RCW and codified with the subchapter heading of "MANUFACTURING
17   AND RESEARCH AND DEVELOPMENT SECTOR PROMOTION."

                                  --- END ---




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