Multiple Agency Fiscal Note Summary — 6240 SB, Jet fuel tax preferences (Final 1/23/2024)
Summary
A Multiple Agency Fiscal Note Summary for 6240 SB, titled Jet fuel tax preferences, with the Individual State Agency Fiscal Note of the Joint Legislative Audit and Review Committee for the same bill. That agency note estimates operating expenditures of 7,200 for 2023-25 and 9,600 each for 2025-27 and 2027-29 from the Performance Audits of Government Account-State. Its narrative says the bill amends RCW 82.04.287 and 82.04.436, providing B&O tax preferences for manufacturers, processors for hire, wholesalers and retailers of alternative jet fuel. The fiscal note summary is marked Final 1/23/2024.
Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used
Cite this document
“Multiple Agency Fiscal Note Summary — 6240 SB, Jet fuel tax preferences (Final 1/23/2024).”
Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2024-01-25-a31728-d266589-6240-sb-fn-final-01-23-24-b9252f0597/
, SHA-256 b460f41b906298d6056c83ad5e33c68a697b4016a74569b032c95d0b0eb20726.Full text
Multiple Agency Fiscal Note Summary
Bill Number: 6240 SB Title: Jet fuel tax preferences
Estimated Cash Receipts
Agency Name 2023-25 2025-27 2027-29
GF-State NGF-Outlook Total GF-State NGF-Outlook Total GF-State NGF-Outlook Total
Department of 0 0 0 (5,000) (5,000) (5,000) (23,000) (23,000) (23,000)
Revenue
Total $ 0 0 0 (5,000) (5,000) (5,000) (23,000) (23,000) (23,000)
Estimated Operating Expenditures
Agency Name 2023-25 2025-27 2027-29
FTEs GF-State NGF-Outlook Total FTEs GF-State NGF-Outlook Total FTEs GF-State NGF-Outlook Total
Joint Legislative .0 0 0 7,200 .0 0 0 9,600 .0 0 0 9,600
Audit and Review
Committee
Department of .2 62,300 62,300 62,300 .1 27,000 27,000 27,000 .1 27,000 27,000 27,000
Revenue
Department of .0 0 0 0 .0 0 0 0 .0 0 0 0
Ecology
Total $ 0.2 62,300 62,300 69,500 0.1 27,000 27,000 36,600 0.1 27,000 27,000 36,600
Agency Name 2023-25 2025-27 2027-29
FTEs GF-State Total FTEs GF-State Total FTEs GF-State Total
Estimated Capital Budget Expenditures
Agency Name 2023-25 2025-27 2027-29
FTEs Bonds Total FTEs Bonds Total FTEs Bonds Total
Joint Legislative Audit .0 0 0 .0 0 0 .0 0 0
and Review Committee
Department of Revenue .0 0 0 .0 0 0 .0 0 0
Department of Ecology .0 0 0 .0 0 0 .0 0 0
Total $ 0.0 0 0 0.0 0 0 0.0 0 0
Estimated Capital Budget Breakout
NONE
FNPID 69586
:
FNS029 Multi Agency rollup
Prepared by: Amy Hatfield, OFM Phone: Date Published:
(360) 280-7584 Final 1/23/2024
FNPID 69586
:
FNS029 Multi Agency rollup
Individual State Agency Fiscal Note
Bill Number: 6240 SB Title: Jet fuel tax preferences Agency: 014-Joint Legislative Audit
and Review Committee
Part I: Estimates
No Fiscal Impact
Estimated Cash Receipts to:
NONE
Estimated Operating Expenditures from:
FY 2024 FY 2025 2023-25 2025-27 2027-29
Account
Performance Audits of Government 4,800 2,400 7,200 9,600 9,600
Account-State 553-1
Total $ 4,800 2,400 7,200 9,600 9,600
Estimated Capital Budget Impact:
NONE
The cash receipts and expenditure estimates on this page represent the most likely fiscal impact. Factors impacting the precision of these estimates,
and alternate ranges (if appropriate), are explained in Part II.
Check applicable boxes and follow corresponding instructions:
If fiscal impact is greater than $50,000 per fiscal year in the current biennium or in subsequent biennia, complete entire fiscal note
form Parts I-V.
X If fiscal impact is less than $50,000 per fiscal year in the current biennium or in subsequent biennia, complete this page only (Part I).
Capital budget impact, complete Part IV.
Requires new rule making, complete Part V.
Legislative Contact: Clinton McCarthy Phone: 360-786-7319 Date: 01/15/2024
Agency Preparation: Dana Lynn Phone: 360-786-5177 Date: 01/18/2024
Agency Approval: Eric Thomas Phone: 360 786-5182 Date: 01/18/2024
OFM Review: Gaius Horton Phone: (360) 819-3112 Date: 01/19/2024
Form FN (Rev 1/00) 190,932.00 Request # 21-1
FNS063 Individual State Agency Fiscal Note 1 Bill # 6240 SB
Part II: Narrative Explanation
II. A - Brief Description Of What The Measure Does That Has Fiscal Impact
Significant provisions of the bill and any related workload or policy assumptions that have revenue or expenditure impact on the responding agency by
section number.
This bill amends RCW 82.04.287 and 82.04.436, providing B&O tax preferences for manufacturers, processors for hire,
wholesalers and retailers of alternative jet fuel. The bill adds new preferences under each statute for businesses located in a
distressed area of the state (as defined in the bill) that produce alternative jet fuel.
TAX PREFERENCE PERFORMANCE STATEMENT DETAILS
Section 5 notes that the tax preference performance statement in section 8, chapter 232, Laws of 2023 applies for sections
2 through 4 of the bill.
The 2023 performance statement categorized the preferences as intended to improve industry competitiveness, as indicated
in RCW 82.32.808(2)(b). The Legislature's specific public policy objective is to encourage production and use of alternative
jet fuels and to support development of the alternative jet fuels industry in the state by providing targeted tax relief.
The Legislature intended to extend the expiration dates if a review finds that:
• There has been an increase in the production and use of alternative jet fuels by persons claiming the tax preferences.
• The production and use of alternative jet fuels in the state does not result in additional pollution including, but not limited to,
pollution from per-and polyfluoroalkyl substances, noxious gases, ultrafine particles, lead, or other metals.
• The alternative jet fuel industry has created measurable economic growth in Washington.
JLARC is directed to include a racial equity analysis on air travel-related pollution in communities near an international
airport owned by a port district in a county with a population greater than 1.5 million.
To obtain the data necessary for its review, JLARC may access and use data from an international airport owned by a port
district in a county with a population greater than 1.5 million, the University of Washington, reports compiled by the
Washington State University, and other data collected by the state as it deems necessary.
II. B - Cash receipts Impact
Cash receipts impact of the legislation on the responding agency with the cash receipts provisions identified by section number and when appropriate, the
detail of the revenue sources. Description of the factual basis of the assumptions and the method by which the cash receipts impact is derived. Explanation
of how workload assumptions translate into estimates. Distinguished between one time and ongoing functions.
II. C - Expenditures
Agency expenditures necessary to implement this legislation (or savings resulting from this legislation), with the provisions of the legislation that result in
the expenditures (or savings) identified by section number. Description of the factual basis of the assumptions and the method by which the expenditure
impact is derived. Explanation of how workload assumptions translate into cost estimates. Distinguished between one time and ongoing functions.
JLARC staff would contact and work with the Department of Revenue, the Port of Seattle, the University of Washington,
and Washington State University immediately after passage of the bill to ensure any project contacts needed for the
expanded tax preferences are established and all necessary data for JLARC staff’s future evaluation needs are identified
and collected. JLARC will likely review these preferences in 2031.
The expenditure detail reflects work conducted to prepare for the future review of the preferences. Costs associated with
the review are not included in this fiscal note. This fiscal note reflects only the costs associated with establishing data
collection.
This tax preference review may require additional resources. The audit will be conducted and presented to JLARC
consistent with the processes used for other tax preference reviews. Based on all tax preference legislation that is passed,
Jet fuel tax preferences 014-Joint Legislative Audit and Review Committee
Form FN (Rev 1/00) 190,932.00 Request # 21-1
FNS063 Individual State Agency Fiscal Note 2 Bill # 6240 SB
JLARC may subsequently determine that it can absorb the costs for this proposed bill in its base budget, if the workload of
other enacted tax preference legislation does not exceed current staffing. JLARC will assess all of the tax preference
reviews mandated in the 2024 legislative session.
This audit will require an estimated 1 audit month.
JLARC Audit Months: JLARC calculates its staff resources in "Audit Months" to estimate the time and effort to undertake
and complete its studies. An "Audit Month" reflects a JLARC analyst’s time for a month, together with related
administrative, support, and goods/services costs. JLARC’s anticipated 2023-25 costs are calculated at approximately
$23,900 per audit month.
Part III: Expenditure Detail
III. A - Operating Budget Expenditures
Account Account Title Type FY 2024 FY 2025 2023-25 2025-27 2027-29
553-1 Performance Audits State 4,800 2,400 7,200 9,600 9,600
of Government
Account
Total $ 4,800 2,400 7,200 9,600 9,600
III. B - Expenditures by Object Or Purpose
FY 2024 FY 2025 2023-25 2025-27 2027-29
FTE Staff Years
A-Salaries and Wages 3,100 1,600 4,700 6,200 6,200
B-Employee Benefits 1,000 500 1,500 2,000 2,000
C-Professional Service Contracts
E-Goods and Other Services 600 300 900 1,200 1,200
G-Travel 100 100 200 200
J-Capital Outlays
M-Inter Agency/Fund Transfers
N-Grants, Benefits & Client Services
P-Debt Service
S-Interagency Reimbursements
T-Intra-Agency Reimbursements
9-
Total $ 4,800 2,400 7,200 9,600 9,600
III. C - Operating FTE Detail: List FTEs by classification and corresponding annual compensation. Totals need to agree with total FTEs in
Part I and Part IIIA
Job Classification Salary FY 2024 FY 2025 2023-25 2025-27 2027-29
Research Analyst 131,064
Support staff 110,856
Total FTEs 0.0
III. C - Operating FTE Detail: FTEs listed by classification and corresponding annual compensation. Totals agree with total FTEs in Part I
and Part IIIA.
NONE
III. D - Expenditures By Program (optional)
NONE
Part IV: Capital Budget Impact
IV. A - Capital Budget Expenditures
Jet fuel tax preferences 014-Joint Legislative Audit and Review Committee
Form FN (Rev 1/00) 190,932.00 Request # 21-1
FNS063 Individual State Agency Fiscal Note 3 Bill # 6240 SB
NONE
IV. B - Expenditures by Object Or Purpose
NONE
IV. C - Capital Budget Breakout
Acquisition and construction costs not reflected elsewhere on the fiscal note and description of potential financing methods.
NONE
IV. D - Capital FTE Detail: FTEs listed by classification and corresponding annual compensation. Totals agree with total FTEs in Part IVB.
NONE
Part V: New Rule Making Required
Provisions of the bill that require the agency to adopt new administrative rules or repeal/revise existing rules.
Jet fuel tax preferences 014-Joint Legislative Audit and Review Committee
Form FN (Rev 1/00) 190,932.00 Request # 21-1
FNS063 Individual State Agency Fiscal Note 4 Bill # 6240 SB
Department of Revenue Fiscal Note
Bill Number: 6240 SB Title: Jet fuel tax preferences Agency: 140-Department of Revenue
Part I: Estimates
No Fiscal Impact
Estimated Cash Receipts to:
Account FY 2024 FY 2025 2023-25 2025-27 2027-29
GF-STATE-State (5,000) (23,000)
01 - Taxes 05 - Bus and Occup Tax
Total $ (5,000) (23,000)
Estimated Expenditures from:
FY 2024 FY 2025 2023-25 2025-27 2027-29
FTE Staff Years 0.1 0.3 0.2 0.1 0.1
Account
GF-STATE-State 001-1 17,700 44,600 62,300 27,000 27,000
Total $ 17,700 44,600 62,300 27,000 27,000
Estimated Capital Budget Impact:
NONE
The cash receipts and expenditure estimates on this page represent the most likely fiscal impact. Factors impacting the precision of these estimates,
and alternate ranges (if appropriate), are explained in Part II.
Check applicable boxes and follow corresponding instructions:
If fiscal impact is greater than $50,000 per fiscal year in the current biennium or in subsequent biennia, complete entire fiscal note
form Parts I-V.
X If fiscal impact is less than $50,000 per fiscal year in the current biennium or in subsequent biennia, complete this page only (Part I).
X Capital budget impact, complete Part IV.
X Requires new rule making, complete Part V.
Legislative Contact: Clinton McCarthy Phone:
360-786-7319 Date: 01/15/2024
Agency Preparation: Anna Yamada Phone:
360-534-1519 Date: 01/23/2024
Agency Approval: Marianne McIntosh Phone:
360-534-1505 Date: 01/23/2024
OFM Review: Amy Hatfield Phone:
(360) 280-7584 Date: 01/23/2024
Request # 6240-1-1
Form FN (Rev 1/00) 191,848.00 1 Bill # 6240 SB
FNS062 Department of Revenue Fiscal Note
Part II: Narrative Explanation
II. A - Brief Description Of What The Measure Does That Has Fiscal Impact
Significant provisions of the bill and any related workload or policy assumptions that have revenue or expenditure impact on the responding agency by
section number.
CURRENT LAW
PREFERENTIAL BUSINESS AND OCCUPATION (B&O) TAX RATE
Businesses that manufacture alternative jet fuels pay a preferential B&O tax rate for manufacturing activities and
wholesaling and retailing of the alternative jet fuel manufactured.
For manufacturers, the amount of tax equals the value of the product manufactured multiplied by the rate of 0.275%.
For processors for hire, the amount of tax equals the business's gross income multiplied by the rate of 0.275%.
For those making sales at retail or wholesale, the amount of tax equals the gross proceeds of sales multiplied by the rate of
0.275%.
Alternative jet fuel means fuel that can be blended and used with conventional petroleum jet fuels without the need to
modify aircraft engines. It also has a lower carbon intensity than the annual carbon intensity standard (found in WAC
173-424-900) and does not include conventional jet fuel.
The preferential rates become effective on the first day of the quarter immediately following the month when the
Department of Ecology notifies the Department of Revenue (department) that one or more facilities with a cumulative
production capacity of at least 20 million gallons of alternative jet fuel each year are operating in Washington.
A person who takes the preferential rates must file an annual tax performance report with the department.
The preferential rates expire nine calendar years after the close of the calendar year in which the tax rates take effect.
BUSINESS AND OCCUPATION TAX CREDIT FOR MANUFACTURERS:
The law provides a B&O tax credit to those manufacturing alternative jet fuel. The credit equals $1 per gallon of alternative
jet fuel having at least 50% less carbon dioxide (CO2) equivalent emissions than conventional jet fuel and is sold by:
- A business manufacturing alternative jet fuel located in a qualifying county with a population of less than 650,000 at the
time of an application.
- The Department of Ecology, in consultation with the Department of Archeology and Historic Preservation, must verify that
the production facility is not located on the footprint of a structure listed as a historic cemetery or tribal burial grounds.
- The business's designated fuel blender is located in Washington (but not for both activities).
The credit amount must increase by 2 cents for each additional 1% reduction in CO2 equivalent emissions beyond 50%, not
to exceed $2 per gallon.
The credit is calculated only on the portion of jet fuel that is considered alternative jet fuel and does not include conventional
jet fuel when such fuels are blended or otherwise used in a jet fuel mixture.
The credit may be earned from the first day of the quarter immediately following the quarter when the Department of
Ecology notifies the department that one or more facilities with a cumulative production capacity of at least 20 million gallons
of alternative jet fuel each year are operating in Washington. No credit may be earned beginning nine calendar years after
the close of the calendar year in which the contingency occurs.
Request # 6240-1-1
Form FN (Rev 1/00) 191,848.00 2 Bill # 6240 SB
FNS062 Department of Revenue Fiscal Note
Manufacturers claiming this credit must reduce the wholesale price of alternative jet fuel by the amount of the claimed
credit.
To claim this credit, the taxpayer must electronically file all returns, forms, and other required information, including contract
pricing for sales of alternative jet fuel, with the department and complete an application for the credit. The taxpayer claiming
the credit provided in this section must file a complete annual tax performance report with the department.
Businesses may take the credit for either manufacturing or using alternative jet fuels, but not both.
The department must notify those applying for the credit within 60 days of acceptance of their documentation.
The credit earned during one calendar year may be carried over and claimed against taxes incurred only for the next
subsequent calendar year. The department cannot grant refunds.
PROPOSAL
The intent of this bill is to support the development of the alternative jet fuel industry in distressed areas of the state by
extending the existing tax preferences and providing long-term employment opportunities to distressed areas.
“Distressed area” means a county that has been designated as such by the Employment Security Department by January 1,
2024.
This bill allows a manufacturer of alternative jet fuel to locate in a “distressed area” to qualify for the existing tax
preferences.
PREFERENTIAL B&O RATES
The reduced rates of 0.275% become effective for a business located in a distressed area on the first day of the quarter
immediately following the month when the Department of Ecology notifies the department that the particular facility has a
facility-specific production capacity of at least 500,000 gallons of alternative jet fuel each year.
The preferential rates expire for all locations in the state nine calendar years after the close of the calendar year in which
the department receives notice from the Department of Ecology that a cumulative production capacity of at least 20 million
gallons of alternative jet fuel annually from one or more facilities operating in the state.
B&O TAX CREDIT
Only after the Department of Ecology has notified the department that the particular facility in a distressed area has a
facility-specific production capacity of at least 500,000 gallons of alternative jet fuel each year, that specific manufacturer
may take the B&O credit after June 30, 2025.
EFFECTIVE DATE
This bill takes effect on July 1, 2024.
II. B - Cash receipts Impact
Cash receipts impact of the legislation on the responding agency with the cash receipts provisions identified by section number and when appropriate,
the detail of the revenue sources. Description of the factual basis of the assumptions and the method by which the cash receipts impact is derived.
Explanation of how workload assumptions translate into estimates. Distinguished between one time and ongoing functions.
ASSUMPTIONS
Producers in distressed areas
- An alternative jet fuel production facility in a distressed area begins operations by July 1, 2024, with an initial capacity of
40,000 gallons during the fiscal year 2025. The capacity will increase to 500,000 gallons by July 1, 2025, during fiscal year
2026.
Request # 6240-1-1
Form FN (Rev 1/00) 191,848.00 3 Bill # 6240 SB
FNS062 Department of Revenue Fiscal Note
- The Department of Ecology will verify this facility’s 500,000-gallon capacity requirement for a distressed area during the
third quarter of calendar year 2026.
- The preferential B&O rate for this specific production facility in a distressed area becomes effective October 1, 2026, the
start of the fourth quarter. This leads to eight months of impacted cash collections in fiscal year 2027.
- Producer credits will be taken against the B&O tax paid in fiscal year 2028 for fuel produced the previous year.
Producers in non-distressed, qualifying counties
- An alternative jet fuel production facility with a 30 million gallon capacity begins operations by July 1, 2028.
- The Department of Ecology will verify the 20 million gallon capacity requirement during the third quarter of calendar year
2028 and verify, in consultation with the Department of Archeology and Historic Preservation, that the production facilities
are not listed as a historic cemetery or tribal burial grounds.
- The preferential B&O rate becomes effective October 1, 2028, the start of the fourth quarter. This leads to eight months
of impacted cash collections in fiscal year 2029.
- Producers and alternative fuel users will claim credits beginning in fiscal year 2030.
- Producer credits will be taken against the B&O tax paid in fiscal year 2030 for fuel produced the previous year.
-The two facilities will exceed the 20 million gallon threshold to trigger the tax preferences on July 1, 2028, triggering the
preferences to expire on July 1, 3037, nine years after.
- Beginning in fiscal year 2029, alternative jet fuel production will grow at the rate projected for worldwide production
capacity, as reported by Statista.
- When alternative jet fuel is manufactured in the state, it will be consumed by in-state users before being exported during
the period of this fiscal note.
- Airlines/carriers will replace fossil-based jet fuels with alternative fuels as the in-state production begins.
DATA SOURCES
- Transportation Economic & Revenue Forecast, Summary Vol. I November 2023 Forecast
- U.S. Energy Information Administration, Prices, Sales Volume, and Stocks by State
- U.S. Energy Information Administration, PADD 5 Refinery and Blender Net Production
- California Air Resources Board, LCFS Pathway Certified Carbon Intensities
- Washington Research Council, Economic contribution of Washington State's petroleum refining Industry in 2019, Appendix
A.2 Quantity and Value of Output, June 2021
- Construction Begins on First U.S Commercial e-SAF Plant, Aironline.com, July 11, 2023,
https://www.ainonline.com/aviation-news/aerospace/2023-07-11/construction-begins-first-us-commercial-e-saf-plant
- New $800 M sustainable aviation fuel plant planned for Washington state, May 18, 2023,
https://www.seattletimes.com/business/boeing-aerospace/new-800m-sustainable-aviation-fuel-plant-planned-for-washington
-state/
- Congressional Research Service, Sustainable Aviation Fuel (SAF)
- Air passenger Numbers to Recover in 2024, JETA, March 1, 2022,
https://www.iata.org/en/pressroom/2022-releases/2022-03-01-01/
- Statista, SAF World production capacity 2020-2025 trend
- Statista, U.S. price outlook of select fuels 2018-2050
- Department of Revenue, Excise tax data
REVENUE ESTIMATES
Request # 6240-1-1
Form FN (Rev 1/00) 191,848.00 4 Bill # 6240 SB
FNS062 Department of Revenue Fiscal Note
This bill decreases state revenues by an estimated $5,000 in the 2025-27 biennium and $23,000 in the 2027-29 biennium.
TOTAL REVENUE IMPACT:
State Government (cash basis, $000):
FY 2024 - $ 0
FY 2025 - $ 0
FY 2026 - $ 0
FY 2027 - ($ 5)
FY 2028 - ($ 11)
FY 2029 - ($ 12)
Local Government, if applicable (cash basis, $000): None
II. C - Expenditures
Agency expenditures necessary to implement this legislation (or savings resulting from this legislation), with the provisions of the legislation that result in
the expenditures (or savings) identified by section number. Description of the factual basis of the assumptions and the method by which the expenditure
impact is derived. Explanation of how workload assumptions translate into cost estimates. Distinguished between one time and ongoing functions.
ASSUMPTIONS:
This bill affects minimal taxpayers.
FIRST YEAR COSTS:
The department will incur total costs of $17,700 in fiscal year 2024. These costs include:
Labor Costs – Time and effort equate to 0.09 FTEs.
- Adopt one new administrative rule.
- Set up, program, and test computer system changes.
- Identify publications and information the department may need to create or update on the department's website.
Object Costs - $6,800.
- Computer system changes, including contract programming.
SECOND YEAR COSTS:
The department will incur total costs of $44,600 in fiscal year 2025. These costs include:
Labor Costs – Time and effort equate to 0.33 FTEs.
- Continued computer system testing, monitoring, and maintenance.
- Review reports, scrutinize data, and examine accounts to make corrections as necessary.
ONGOING COSTS:
Ongoing costs for the 2025-27 biennium equal $27,000 and include similar activities described in the second-year costs. Time
and effort equate to 0.1 FTEs.
Request # 6240-1-1
Form FN (Rev 1/00) 191,848.00 5 Bill # 6240 SB
FNS062 Department of Revenue Fiscal Note
Part III: Expenditure Detail
III. A - Expenditures by Object Or Purpose
FY 2024 FY 2025 2023-25 2025-27 2027-29
FTE Staff Years 0.1 0.3 0.2 0.1 0.1
A-Salaries and Wages 6,800 28,200 35,000 18,400 18,400
B-Employee Benefits 2,200 9,400 11,600 6,000 6,000
C-Professional Service Contracts 6,800 6,800
E-Goods and Other Services 1,300 4,800 6,100 2,000 2,000
J-Capital Outlays 600 2,200 2,800 600 600
Total $ $17,700 $44,600 $62,300 $27,000 $27,000
III. B - Detail: FTEs listed by classification and corresponding annual compensation. Totals agree with total FTEs in Part I and Part IIIA.
Job Classification Salary FY 2024 FY 2025 2023-25 2025-27 2027-29
EMS BAND 4 131,684 0.0 0.0
EMS BAND 5 153,836 0.0 0.0
IT B A-JOURNEY 91,968 0.2 0.1 0.1 0.1
MGMT ANALYST4 76,188 0.0 0.0
TAX POLICY SP 2 78,120 0.1 0.0 0.0
TAX POLICY SP 3 88,416 0.0 0.1 0.1
TAX POLICY SP 4 95,184 0.0 0.0
WMS BAND 2 98,456 0.0 0.0
WMS BAND 3 111,992 0.0 0.0
Total FTEs 0.1 0.3 0.2 0.1 0.1
III. C - Expenditures By Program (optional)
NONE
Part IV: Capital Budget Impact
IV. A - Capital Budget Expenditures
NONE
IV. B - Expenditures by Object Or Purpose
NONE
IV. C - Capital Budget Breakout
Acquisition and construction costs not reflected elsewhere on the fiscal note and description of potential financing methods.
NONE
None.
Part V: New Rule Making Required
Provisions of the bill that require the agency to adopt new administrative rules or repeal/revise existing rules.
Should this legislation become law, the department will use the standard process to adopt one new rule under chapter 458-20
WAC. Persons affected by this rulemaking would include manufacturers located in a distressed county with a production
capacity of at least 500,000 gallons of alternative jet fuel.
Request # 6240-1-1
Form FN (Rev 1/00) 191,848.00 6 Bill # 6240 SB
FNS062 Department of Revenue Fiscal Note
Individual State Agency Fiscal Note
Bill Number: 6240 SB Title: Jet fuel tax preferences Agency: 461-Department of Ecology
Part I: Estimates
X No Fiscal Impact
Estimated Cash Receipts to:
NONE
Estimated Operating Expenditures from:
NONE
Estimated Capital Budget Impact:
NONE
The cash receipts and expenditure estimates on this page represent the most likely fiscal impact. Factors impacting the precision of these estimates,
and alternate ranges (if appropriate), are explained in Part II.
Check applicable boxes and follow corresponding instructions:
If fiscal impact is greater than $50,000 per fiscal year in the current biennium or in subsequent biennia, complete entire fiscal note
form Parts I-V.
If fiscal impact is less than $50,000 per fiscal year in the current biennium or in subsequent biennia, complete this page only (Part I).
Capital budget impact, complete Part IV.
Requires new rule making, complete Part V.
Legislative Contact: Clinton McCarthy Phone: 360-786-7319 Date: 01/15/2024
Agency Preparation: Cristina Steward Phone: 564-669-1723 Date: 01/18/2024
Agency Approval: Erik Fairchild Phone: 360-407-7005 Date: 01/18/2024
OFM Review: Lisa Borkowski Phone: (360) 742-2239 Date: 01/23/2024
Form FN (Rev 1/00) 191,023.00 Request # 24-052-1
FNS063 Individual State Agency Fiscal Note 1 Bill # 6240 SB
Part II: Narrative Explanation
II. A - Brief Description Of What The Measure Does That Has Fiscal Impact
Significant provisions of the bill and any related workload or policy assumptions that have revenue or expenditure impact on the responding agency by
section number.
Currently, RCW 82.04.287 allows businesses manufacturing alternative jet fuel (also known as sustainable aviation fuel, or
SAF) to receive a tax credit of 0.275 percent of the business’s gross income, effective July 1, 2024.
This bill would amend RCW 82.04.287 and RCW 82.04.436 to reduce the fuel production capacity requirements that must
be met to receive the credit when businesses producing alternative jet fuel are located in distressed areas of the state.
Section 2 would amend RCW 82.04.287 to include a provision that Ecology notify the Department of Revenue when a SAF
production facility in a distressed area of the state has a facility-specific production capacity of at least 500,000 gallons per
year.
Section 3 would define “distressed area” as a county that has been designated as such by the Employment Security
Department.
Section 4 would amend RCW 70A.535.150 to require Ecology to notify the Department of Revenue within 30 days when
any facility capable of producing at least 500,000 gallons of alternative jet fuel each year is operating in a distressed area in
the state.
This bill would have no fiscal impact to Ecology. Information about production capacity of SAF production facilities is
collected by a third party, and notification requirements under this bill are within Ecology’s existing workload implementing
ESSB 5447 (2023).
II. B - Cash receipts Impact
Cash receipts impact of the legislation on the responding agency with the cash receipts provisions identified by section number and when appropriate, the
detail of the revenue sources. Description of the factual basis of the assumptions and the method by which the cash receipts impact is derived. Explanation
of how workload assumptions translate into estimates. Distinguished between one time and ongoing functions.
II. C - Expenditures
Agency expenditures necessary to implement this legislation (or savings resulting from this legislation), with the provisions of the legislation that result in
the expenditures (or savings) identified by section number. Description of the factual basis of the assumptions and the method by which the expenditure
impact is derived. Explanation of how workload assumptions translate into cost estimates. Distinguished between one time and ongoing functions.
Part III: Expenditure Detail
III. A - Operating Budget Expenditures
NONE
III. B - Expenditures by Object Or Purpose
NONE
III. C - Operating FTE Detail: FTEs listed by classification and corresponding annual compensation. Totals agree with total FTEs in Part I
and Part IIIA.
NONE
III. D - Expenditures By Program (optional)
NONE
Jet fuel tax preferences 461-Department of Ecology
Form FN (Rev 1/00) 191,023.00 Request # 24-052-1
FNS063 Individual State Agency Fiscal Note 2 Bill # 6240 SB
Part IV: Capital Budget Impact
IV. A - Capital Budget Expenditures
NONE
IV. B - Expenditures by Object Or Purpose
NONE
IV. C - Capital Budget Breakout
Acquisition and construction costs not reflected elsewhere on the fiscal note and description of potential financing methods.
NONE
IV. D - Capital FTE Detail: FTEs listed by classification and corresponding annual compensation. Totals agree with total FTEs in Part IVB.
NONE
Part V: New Rule Making Required
Provisions of the bill that require the agency to adopt new administrative rules or repeal/revise existing rules.
Jet fuel tax preferences 461-Department of Ecology
Form FN (Rev 1/00) 191,023.00 Request # 24-052-1
FNS063 Individual State Agency Fiscal Note 3 Bill # 6240 SB
File and source
- File
- 2024-01-25_a31728_d266589_6240-sb-fn-final-01-23-24.pdf
- Size
- 426,407 bytes
- SHA-256
- b460f41b906298d6056c83ad5e33c68a697b4016a74569b032c95d0b0eb20726
- Original
- No public link identified.