Washington state economic development policy
- Issuer
- Congressional materials
- Document type
- 2026 01 14 A33597 D290570 Oedc Commerce Economic Development Policy Session Handout
- Date
- 2026-01-14
- Case
- 2026 01 14 A33597 D290570 Oedc Commerce Economic Development Policy Session Handout
Summary
A session handout on Washington state economic development policy for the Senate Committee on Business, Trade and Economic Development, dated January 14, 2026, describing the OEDC at the WA Department of Commerce. Its table of contents covers the statutes creating Commerce, the Small Business Export Assistance unit, the Business Development unit, Industry Sector Development, and the Small Business Finance and Community Support unit. The handout quotes the department's statutory authority, including RCW 43.330.050 on community and economic development responsibilities and RCW 43.330.080 on contracts with associate development organizations. Its closing section cites 2022 Engrossed Substitute Senate Bill 5693, which provides $15,000,000 of the coronavirus state fiscal recovery fund to expand the small business resiliency network program, and describes Commerce's role in the SSBCI.
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Cite this document
“Washington state economic development policy.”
Original at app.leg.wa.gov, dated 2026-01-14. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2026-01-14-2026-01-14-a33597-d290570-oedc-commerce-economic-development-policy-session-handout/
, SHA-256 3b579b286e16eb55405fc01625d76be062ac35c2d3b3b457552cf17c6966fc04.Full text
Washington state economic development
policy
Senate Committee on Business, Trade and Economic Development
Session handout, January 14, 2026
OFFICE OF ECONOMIC
DEVELOPMENT AND
COMPETATIVENESS (OEDC)
AT WA DEPARTMENT OF
COMMERCE
Table of contents
Statutes creating Commerce and conferring responsibility for economic development activities ..........................3
OEDC Small Business Export Assistance (SBEA) unit .........................................................................................10
OEDC Business Development unit: .....................................................................................................................11
OEDC Industry Sector Development ...................................................................................................................12
OEDC Small Business Finance and Community Support unit: .............................................................................21
WASHINGTON ECONOMIC DEVELOPMENT POLICY 2
Statutes creating Commerce and conferring responsibility for
economic development activities
Statutory authority for Commerce comes from
RCW 43.330.005
“The legislature finds that the long-term economic health of the state and its citizens depends upon the strength
and vitality of its communities and businesses. It is the intent of this chapter to create a department of commerce
that fosters new partnerships for strong and sustainable communities.
The mission of the department is to grow and improve jobs in Washington and facilitate innovation.
To carry out its mission, the department will bring together focused efforts to:
Streamline access to business assistance and economic development services by providing them through
sector-based, cluster-based, and regional partners;
provide focused and flexible responses to changing economic conditions;
generate greater local capacity to respond to both economic growth and environmental challenges;
increase accountability to the public, the executive branch, and the legislature;
manage growth and achieve sustainable development;
diversify the state's economy and export goods and services;
provide greater access to economic opportunity;
stimulate private sector investment and entrepreneurship;
provide stable family-wage jobs and meet the diverse needs of families; …”
Statutory authority to establish the Washington State Department of
Commerce
RCW 43.330.020
“A department of commerce is created. The department shall be vested with all powers and duties established or
transferred to it under this chapter and such other powers and duties as may be authorized by law. Unless
otherwise specifically provided, the existing responsibilities and functions of the agency programs will continue to
be administered in accordance with their implementing legislation.”
Practical Impact: OEDC’s powers and programs are grounded in RCW 43.330 and those statutes allow OEDC to:
Administer economic development programs
Provide technical and financial assistance
Enter contracts on behalf of the state
Solicit and administer grant funds
Cooperate with local governments, businesses, and nonprofits
WASHINGTON ECONOMIC DEVELOPMENT POLICY 3
Community and economic development responsibilities.
RCW 43.330.050
“The department shall be responsible for promoting community and economic development within the state by
assisting the state's communities to increase the quality of life of their citizens and their economic vitality, and by
assisting the state's businesses to maintain and increase their economic competitiveness, while maintaining a
healthy environment. Community and economic development efforts shall include:
Efforts to increase economic opportunity; local planning to manage growth;
the promotion and provision of affordable housing and housing-related services;
providing public infrastructure; business and trade development;
assisting firms and industrial sectors to increase their competitiveness;
fostering the development of minority and women-owned businesses;
facilitating technology development, transfer, and diffusion; community services and advocacy for low-income
persons;”…
“The department shall have the following general functions and responsibilities:
(1) Provide advisory assistance to the governor, other state agencies, and the legislature on community and
economic development matters and issues;
(2) Assist the governor in coordinating the activities of state agencies that have an impact on local government and
communities;
(3) Cooperate with the legislature and the governor in the development and implementation of strategic plans for
the state's community and economic development efforts;
(4) Solicit private and federal grants for economic and community development programs and administer such
programs in conjunction with other programs assigned to the department by the governor or the legislature. To
maximize the impact of federal funding for economic development, the department must coordinate with federal
and state public research facilities to leverage other federal funding coming to the state for research, development,
innovation of new technologies, and transfer of technology to the private sector to promote business development
and jobs in Washington;
(5) Cooperate with and provide technical and financial assistance to local governments, businesses, and
community-based organizations serving the communities of the state for the purpose of aiding and encouraging
orderly, productive, and coordinated development of the state, and, unless stipulated otherwise, give additional
consideration to local communities and individuals with the greatest relative need and the fewest resources;
(6) Participate with other states or subdivisions thereof in interstate programs and assist cities, counties, municipal
corporations, governmental conferences or councils, and regional planning commissions to participate with other
states and provinces or their subdivisions;
(7) Hold public hearings and meetings to carry out the purposes of this chapter;
(8) Conduct research and analysis in furtherance of the state's economic and community development efforts
including maintenance of current information on market, demographic, and economic trends as they affect
different industrial sectors, geographic regions, and communities with special economic and social problems in the
state; …”
WASHINGTON ECONOMIC DEVELOPMENT POLICY 4
Local development capacity—Training and technical assistance
RCW 43.330.070
(1) The department shall work closely with local communities to increase their capacity to respond to economic,
environmental, and social problems and challenges. The department shall coordinate the delivery of development
services and technical assistance to local communities or regional areas. It shall promote partnerships between
the public and private sectors and between state and local officials to encourage appropriate economic growth and
opportunity in communities throughout the state. The department shall promote appropriate local development by:
Supporting the ability of communities to develop and implement strategic development plans; assisting businesses
to start up, maintain, or expand their operations; encouraging public infrastructure investment and private and
public capital investment in local communities; supporting efforts to manage growth and provide affordable
housing and housing services; providing for the identification and preservation of the state's historical and cultural
resources; and expanding employment opportunities.
(2) The department shall define a set of services including training and technical assistance that it will make
available to local communities, community-based nonprofit organizations, regional areas, or businesses. The
department shall simplify access to these programs by providing more centralized and user-friendly information
and referral. The department shall coordinate community and economic development efforts to minimize program
redundancy and maximize accessibility. The department shall develop a set of criteria for targeting services to
local communities. To the extent funding is made available for this purpose, the department shall provide technical
assistance or enter into contracts to provide technical assistance to assist local communities in developing
competitive applications for federal funding.
(3) The department shall develop a coordinated and systematic approach to providing training to community-based
nonprofit organizations, local communities, and businesses. The approach shall be designed to increase the
economic and community development skills available in local communities by providing training and funding for
training for local citizens, nonprofit organizations, and businesses. The department shall emphasize providing
training in those communities most in need of state assistance.”
Coordination of community and economic development services
RCW 43.330.080
Contracts with county-designated associate development organizations—Scope of services—Business services
training
(1)(a) The department must contract with county-designated associate development organizations to increase the
support for and coordination of community and economic development services in communities or regional areas.
The contracting organizations in each community or regional area must:
i) Be broadly representative of community and economic interests;
ii) Be capable of identifying key economic and community development problems, developing
appropriate solutions, and mobilizing broad support for recommended initiatives;
iii) Work closely with the department to carry out state-identified economic development priorities;
iv) Work with and include local governments, local chambers of commerce, workforce
development councils, port districts, labor groups, institutions of higher education, community
WASHINGTON ECONOMIC DEVELOPMENT POLICY 5
action programs, and other appropriate private, public, or nonprofit community and economic
development groups; and
v) Meet and share best practices with other associate development organizations at least two
times each year.
(b) The scope of services delivered under the contracts required in (a) of this subsection must include two broad
areas of work:
i) Direct assistance, including business planning, to companies throughout the county who need
support to stay in business, expand, or relocate to Washington from out of state or other
countries. Assistance must comply with business recruitment and retention protocols
established in RCW 43.330.062, and includes:
(A) Working with the appropriate partners throughout the county including, but not limited to, local governments,
workforce development councils, port districts, community and technical colleges and higher education
institutions, export assistance providers, impact Washington, the Washington state quality award council, small
business assistance programs, innovation partnership zones, and other federal, state, and local programs to
facilitate the alignment of planning efforts and the seamless delivery of business support services within the entire
county;
(B) Providing information on state and local permitting processes, tax issues, export assistance, and other
essential information for operating, expanding, or locating a business in Washington;
(C) Marketing Washington and local areas as excellent locations to expand or relocate a business and positioning
Washington as a globally competitive place to grow business, which may include developing and executing
regional plans to attract companies from out of state;
(D) Working with businesses on-site location and selection assistance;
(E) Providing business retention and expansion services throughout the county. Such services must include, but are
not limited to, business outreach and monitoring efforts to identify and address challenges and opportunities faced
by businesses, assistance to trade impacted businesses in applying for grants from the federal trade adjustment
assistance for firms program, and the provision of information to businesses on:
vi) Resources available for microenterprise development;
vii) Resources available on the revitalization of commercial districts; and
viii) The opportunity to maintain jobs through shared work programs authorized under
chapter 50.60 RCW;
(F) Participating in economic development systemwide discussions regarding gaps in business start-up assistance
in Washington;
(G) Providing or facilitating the provision of export assistance through workshops or one-on-one assistance; and
(H) Using a web-based information system to track data on business recruitment, retention, expansion, and trade;
and
ii) Support for regional economic research and regional planning efforts to implement target
industry sector strategies and other economic development strategies, including cluster-based
WASHINGTON ECONOMIC DEVELOPMENT POLICY 6
strategies. Research and planning efforts should support increased living standards and
increased foreign direct investment and be aligned with the statewide economic development
strategy. Regional associate development organizations retain their independence to address
local concerns and goals. Activities include:
(A) Participating in regional planning efforts with workforce development councils involving coordinated strategies
around workforce development and economic development policies and programs. Coordinated planning efforts
must include, but not be limited to, assistance to industry clusters in the region;
(B) Participating with the state board for community and technical colleges as created in RCW 28B.50.050, and any
community and technical colleges in the coordination of the job skills training program and the customized training
program within its region;
(C) Collecting and reporting data as specified by the contract with the department for statewide systemic analysis.
In cooperation with other local, regional, and state planning efforts, contracting organizations may provide insight
into the needs of target industry clusters, business expansion plans, early detection of potential relocations or
layoffs, training needs, and other appropriate economic information;
(D) In conjunction with other governmental jurisdictions and institutions, participating in the development of a
countywide economic development plan.
(2) The department must provide business services training to the contracting organizations, including but not
limited to:
(a) Training in the fundamentals of export assistance and the services available from private and public export
assistance providers in the state; and
(b) Training in the provision of business retention and expansion services as required by subsection (1)(b)(i)(E) of
this section.”
Economic diversification strategies — Targeted industry sectors
RCW 43.330.090
(1) The department shall work with private sector organizations, industry and sector associations, federal agencies,
state agencies that use a sector-based approach to service delivery, local governments, local associate
development organizations, and higher education and training institutions in the development of industry sector-
based strategies to diversify the economy, facilitate technology transfer and diffusion, and increase value-added
production. The industry sectors targeted by the department may include, but are not limited to, aerospace,
agriculture, food processing, forest products, marine services, health and biomedical, software, digital and
interactive media, transportation and distribution, and microelectronics. The department shall, on a continuing
basis, evaluate the potential return to the state from devoting additional resources to an industry sector-based
approach to economic development and identifying and assisting additional sectors.
(2) The department's sector-based strategies shall include, but not be limited to, cluster-based strategies that focus
on assisting regional industry sectors and related firms and institutions that meet the definition of an industry
cluster in this section and based on criteria identified by the working group established in this chapter.
WASHINGTON ECONOMIC DEVELOPMENT POLICY 7
(3)(a) The department shall promote, market, and encourage growth in the production of films and videos, as well
as television commercials within the state; to this end the department is directed to assist in the location of a film
and video production studio within the state.
(b) The department may, in carrying out its efforts to encourage film and video production in the state, solicit
and receive gifts, grants, funds, fees, and endowments, in trust or otherwise, from tribal, local, or other
governmental entities, as well as private sources, and may expend the same or any income therefrom for the
encouragement of film and video production. All revenue received for such purposes shall be deposited into
the general fund.
(4) In assisting in the development of regional and statewide industry cluster-based strategies, the department's
activities shall include, but are not limited to:
(a) Facilitating regional focus group discussions and conducting studies to identify industry clusters, appraise
the current information linkages within a cluster, and identify issues of common concern within a cluster;
(b) Supporting industry and cluster associations, publications of association and cluster directories, and
related efforts to create or expand the activities of industry and cluster associations;
(c) Administering a competitive grant program to fund economic development activities designed to further
regional cluster growth. In administering the program, the department shall work with the workforce training
and education coordinating board, the state board for community and technical colleges, the employment
security department, business, and labor.
(i) The department shall seek recommendations on criteria for evaluating applications for grant funds and
recommend applicants for receipt of grant funds. Criteria shall include not duplicating the purpose or
efforts of industry skill panels.
(ii) Applicants must include organizations from at least two counties and participants from the local
business community. Eligible organizations include, but are not limited to, local governments, economic
development councils, chambers of commerce, federally recognized Indian tribes, workforce development
councils, and educational institutions.
(iii) Applications must evidence financial participation of the partner organizations.
(iv) Eligible activities include the formation of cluster economic development partnerships, research and
analysis of economic development needs of the cluster, the development of a plan to meet the economic
development needs of the cluster, and activities to implement the plan.
(v) Priority shall be given to applicants that complement industry skill panels and will use the grant funds to
build linkages and joint projects.
(vi) The maximum amount of a grant is one hundred thousand dollars.
(vii) A maximum of one hundred thousand dollars total can go to King, Pierce, Kitsap, and Snohomish
counties combined.
(viii) No more than ten percent of funds received for the grant program may be used by the department for
administrative costs.
WASHINGTON ECONOMIC DEVELOPMENT POLICY 8
(5) As used in this chapter, "industry cluster" means a geographic concentration of interconnected companies in a
single industry, related businesses in other industries, including suppliers and customers, and associated
institutions, including government and education.”
In the section below we review the statutory authorities by Commerce’s Office of Economic Development and
Competitiveness sub-unit.
WASHINGTON ECONOMIC DEVELOPMENT POLICY 9
Small Business Export Assistance (SBEA) unit
SBEA’s overall work is guided by RCW 43.330.060 Trade and business responsibilities.
Engrossed Substitute Senate Bill 5167 (Current budget bill)
Other RCWs guiding SBEA’s work:
RCW 43.330.005 Grow and improve jobs in Washington and facilitate innovation
RCW 43.330.050 Community and economic development responsibilities.
RCW 43.330.070 Local development capacity—Training and technical assistance
RCW 43.330.080 Coordination of community and economic development services
RCW 43.330.090 Economic diversification strategies—Targeted industry sectors
Trade and business responsibilities.
RCW 43.330.060
(1) The department shall:
a) assist in expanding the state's role as an international center of trade, culture, and finance;
b) promote and market the state's products and services both nationally and internationally;
c) work in close cooperation with other private and public international trade efforts;
d) act as a centralized location for the assimilation and distribution of trade information; and
e) establish and operate foreign offices promoting overseas trade and commerce.
(2) The department shall identify and work with Washington businesses that can use local, state, and federal
assistance to increase domestic and foreign exports of goods and services.”
[ 2010 c 165 s 2; 2005 c 136 s 13; 1993 c 280 s 9.]
NOTES:
Findings—Intent—2010 c 165: "The legislature finds that small businesses and entrepreneurs are a fundamental
source of economic and community vitality for our state. They employ state residents, pay state taxes, purchase
goods and services from local and regional companies, and contribute to our communities in many other ways.
The legislature finds that small businesses and entrepreneurs need increased access to capital and technical
assistance in order to maximize their potential…”
Engrossed Substitute Senate Bill 5167
“3) $1,335,000 of the general fund—state appropriation for fiscal year 2026 and $1,335,000 of the general fund—state
appropriation for fiscal year 2027 are provided solely for the small business export assistance program, for the department to
establish representation in key international markets that will provide the greatest opportunities for increased trade and
investment for small businesses in the state of Washington, and for a grant to a business center that provides confidential, no-
cost, one-on-one, client-centered assistance to small businesses to expand outreach in underserved communities, especially
Black, indigenous, and people of color-owned businesses, providing targeted assistance where needed. Funding may also be
used to collaborate with the department, the Washington economic development association, and others to develop a more
effective and efficient service delivery system for Washington's women and minority-owned small businesses.”
WASHINGTON ECONOMIC DEVELOPMENT POLICY 10
Business Development unit:
Key focus area Our business development work Relevant RCWs
Business Supports bringing new businesses to Relevant RCWs: RCW 43.330.050 (community & economic
recruitment and Washington and helping existing development), supports ADOs in the work described in
retention businesses stay and grow. Guidance RCW 43.330.080 (associate development organizations &
includes site selection, state and local business services)
coordination, and tax incentives.
Key focus area Our business development work Relevant RCWs
Job and capital Promotes economic growth, private RCW 43.330.050 - authorizes the department to increase
investment growth sector investment, and creation of economic opportunity, stimulate private sector investment,
family‑wage jobs through targeted and support stable, family‑wage jobs.
business initiatives.
Key focus area Our business development work Relevant RCWs
Program Manages the Strategic Reserve Fund Relevant RCWs and notes: RCW 43.330.250 establishes
management (SRF) to provide discretionary support the Economic Development Strategic Reserve Account and
for business attraction, retention, authorizes its use to support key projects. RCW
expansion, and high-priority economic 43.330.767 establishes a dedicated account within the
development projects. Oversees the Economic Development Strategic Reserve Fund to help
Evergreen Manufacturing Growth grant accelerate regional manufacturing cluster strategies
program. across the state.
Key focus area Our business development work Relevant RCWs
Technical Provides guidance to businesses on Relevant RCWs: RCW 43.330.050 (community and
assistance permitting, site selection, and regulatory economic development), supports ADOs in the work
requirements, helping companies expand described in RCW 43.330.080 (associate development
efficiently in Washington. organizations & business services)
Key focus area Our business development work Relevant RCWs
International Facilitates connections with foreign Relevant RCWs: RCW 43.330.060 (trade and business
business relations companies seeking to locate in responsibilities), RCW 43.330.050 (economic development
Washington, supporting inbound support for businesses)
investment and international
engagement.
Establishes business development focused priorities
RCW 43.330.060
The department shall work generally with small businesses and other employers to facilitate resolution of siting,
regulatory, expansion, and retention problems. This assistance shall include but not be limited to assisting in
workforce training and infrastructure needs, identifying and locating suitable business sites, and resolving
problems with government licensing and regulatory requirements. The department shall identify gaps in needed
services and develop steps to address them including private sector support and purchase of these services.”
WASHINGTON ECONOMIC DEVELOPMENT POLICY 11
Industry Sector Development
Andy Hill CARE Fund -- RCW 43.348.020
Film and Video Production -- RCW 43.330.090
Industrial Symbiosis Grant Program -- RCW 43.31.635
Industrial Waste Coordination Program -- RCW 43.31.625
Keep Washington Working Program -- RCW 43.330.510
Key industry sectors -- HB 1198
Life Sciences Discovery Fund -- RCW 43.330.500
Recycling Market Development Center -- RCW 70A.240.030
Tourism -- RCW 43.384
Workforce Innovation -- SHB 1170
Key industry sectors
HB 1198
“(5) $2,438,000 of the general fund—state appropriation for fiscal year 2026 and $2,438,000 of the general fund—
state appropriation for fiscal year 2027 are provided solely for the department to identify and invest in strategic
growth areas, support key sectors, and align existing economic development programs and priorities. The
department must consider Washington's position as the most trade-dependent state when identifying priority
investments. The department must engage states and provinces in the northwest as well as associate
development organizations (ADOs), small business development centers, chambers of commerce, ports, and other
partners to leverage the funds provided. Sector leads established by the department must include the industries of:
(a) Aerospace; (b) clean technology and renewable and nonrenewable energy; (c) wood products and other
natural resource industries; (d) information and communication technology; (e) life sciences and global health; (f)
maritime; (g) military and defense; and (h) creative industries. The department may establish these sector leads
by hiring new staff, expanding the duties of current staff, or working with partner organizations and or other
agencies to serve in the role of sector lead.”
Establishes circular bioeconomy within industry sector development
RCW 43.31.625
Industrial waste coordination program
(1) An industrial waste coordination program is established in order to provide expertise, technical assistance, and
best practices to support local industrial symbiosis projects.
(2) The industrial waste coordination program must be administered by the department of commerce and
administered regionally, with each region provided with a dedicated facilitator and technical and administrative
support.
(3) The industrial waste coordination program must facilitate waste exchange by:
(a) Developing inventories of industrial waste innovation currently in operation;
(b) Generating a material flow data collection system in order to capture and manage data on resource
availability and potential synergies;
WASHINGTON ECONOMIC DEVELOPMENT POLICY 12
(c) Establishing guidance and best practices for emerging local industrial resource hubs, which must include a
consideration of steps to avoid creating or worsening negative impacts to overburdened communities as
identified by tools such as the department of health's environmental health disparities map;
(d) Identifying access to capital in order to fund projects, including federal, state, local, and private funding;
(e) Developing economic, environmental, and health disparities metrics to measure the results of industrial or
commercial hubs;
(f) Hosting workshops and connecting regional businesses, governments, utilities, research institutions, and
other organizations in order to identify opportunities for resource collaboration;
(g) Assisting entities throughout the entire life cycle of industrial symbiosis projects, from identification of
opportunities to full project implementation;
(h) Developing economic cluster initiatives in order to spur growth and innovation; and
(i) Making any additional recommendations to the legislature in order to incentivize and facilitate industrial
symbiosis.
(4) The department of commerce may coordinate with other agencies, representatives of business and
manufacturing networks, and other entities in order to develop material flow generation data and increase
multisectoral outreach.
(5) In generating the material flow data collection system under subsections (3)(b) and (4) of this section, the
department of commerce may only use publicly available data or data voluntarily provided by program participants.
No entity may be required to disclose material flow data. The department of commerce must keep any proprietary
business information confidential and such information is exempt from public disclosure, as provided in RCW
42.56.270.
[ 2021 c 308 s 2.]
NOTES:
Findings—Intent—2021 c 308: "The legislature finds that industrial symbiosis networks create valuable
collaborative opportunities where the underutilized resources of one company, such as waste, by-products,
residues, energy, water, logistics, capacity, expertise, equipment, and materials may be used by another. The
legislature further finds that many existing businesses and organizations in the state have the potential to partner
in the establishment of these networks, and the formation of industrial symbiosis innovation hubs at the state and
local level would facilitate a systems approach that identifies business opportunities to improve resource
utilization and productivity for a more sustainable and integrated industrial economy.
Therefore, the legislature intends to establish a statewide industrial waste coordination program in order to nurture
and coordinate existing industrial symbiosis efforts and to catalyze new industrial symbiosis opportunities.
Furthermore, the legislature intends to establish the program in order to: Find ways of turning waste and by-
products into valued resource inputs; reduce waste management costs; generate new business opportunities;
increase the size and diversity of business networks; identify means of improving environmental performance;
achieve environmental justice in goals and policies; incentivize pathways to family-wage, green jobs; expand the
regional circular economy; and drive innovation." [ 2021 c 308 s 1.]
WASHINGTON ECONOMIC DEVELOPMENT POLICY 13
Establishes industrial symbiosis program
RCW 43.31.635
Industrial symbiosis grant program
(1) Subject to the availability of amounts appropriated for this specific purpose, a competitive industrial symbiosis
grant program is established in order to provide grants for the research, development, and deployment of local
waste coordination projects.
(2) Grants may go towards:
(a) Existing industrial symbiosis efforts by public or private sector organizations;
(b) Emerging industrial symbiosis opportunities involving public or private sector organizations, including
projects arising from:
(i) The industrial waste coordination program established in RCW 43.31.625;
(ii) Conceptual work completed by public utilities to redirect their wastes to productive use; or
(iii) Existing inventories or project concepts involving specific biobased wastes converted to renewable
natural gas;
(c) Research on product development using a specific waste flow;
(d) Feasibility studies to evaluate potential biobased resources;
(e) Feasibility studies for publicly owned utilities to evaluate business models to transform to multiutility
operations or for the evaluation of potential symbiosis connections with other regional businesses; or
(f) Other local waste coordination projects as determined by the department of commerce.
(3) The Department of Commerce must develop a method and criteria for the allocation of grants, subject to the
following:
(a) Project allocation should reflect geographic diversity, with grants being distributed equally in western and
eastern parts of the state, urban and rural areas, and small towns and large cities;
(b) Project allocation should consider factors such as time to implementation and scale of economic or
environmental benefits;
(c) Grants must require a one-to-one nonstate to state match;
(d) Individual grant awards may not exceed $500,000; and
(e) Project allocation should avoid creating or worsening environmental health disparities and should make
use of tools such as the department of health's environmental health disparities map.
[ 2021 c 308 s 3.]
WASHINGTON ECONOMIC DEVELOPMENT POLICY 14
NOTES:
Findings—Intent—2021 c 308: See note following RCW 43.31.625.
Establishes recycling development center
RCW 70A.240.030
Recycling development center—Creation—Purpose and duties—Report to the legislature and governor—
Interagency agreement—Rules
(1) The recycling development center is created within the department of ecology.
(2) The purpose of the center is to provide or facilitate basic and applied research and development, marketing, and
policy analysis in furthering the development of markets and processing for recycled commodities and products.
As used in this chapter, market development consists of public and private activities that are used to overcome
impediments preventing full and productive use of secondary materials diverted from the waste stream, and that
encourage and expand use of those materials and subsequent products. In fulfilling this mission, the center must
initially direct its services to businesses that transform or remanufacture waste materials into usable or
marketable materials or products for use rather than disposal.
(3) The center must perform the following activities:
(a) Develop an annual work plan. The work plan must describe actions and recommendations for developing
markets for commodities comprising a significant percentage of the waste stream and having potential for
use as an industrial or commercial feedstock, with initial focus on mixed waste paper and plastics;
(b) Evaluate, analyze, and make recommendations on state policies that may affect markets for recyclable
materials. Such recommendations must include explicit consideration of the costs and benefits of the market-
effecting policies, including estimates of the anticipated: Rate impacts on solid waste utility ratepayers;
impacts on the prices of consumer goods affected by the recommended policies; and impacts on rates of
recycling or utilization of postconsumer materials;
(c) Work with manufacturers and producers of packaging and other potentially recyclable materials on their
work to increase the ability of their products to be recycled or reduced in Washington;
(d) Initiate, conduct, or contract for studies relating to market development for recyclable materials, including
but not limited to applied research, technology transfer, life-cycle analysis, and pilot demonstration projects;
(e) Obtain and disseminate information relating to market development for recyclable materials from other
state and local agencies and other sources;
(f) Contract with individuals, corporations, trade associations, and research institutions for the purposes of this
chapter;
(g) Provide grants or contracts to local governments, state agencies, or other public institutions to further the
development or revitalization of recycling markets in accordance with applicable rules and regulations;
(h) Provide business and marketing assistance to public and private sector entities within the state;
WASHINGTON ECONOMIC DEVELOPMENT POLICY 15
(i) Represent the state in regional and national market development issues and work to create a regional
recycling development council that will work across either state or provincial borders, or both;
(j) Wherever necessary, the center must work with: Material recovery facility operators; public and private
sector recycling and solid waste industries; packaging manufacturers and retailers; local governments;
environmental organizations; interested colleges and universities; and state agencies, including the
department of commerce and the utilities and transportation commission; and
(k) Report to the legislature and the governor each even-numbered year on the progress of achieving the
center's purpose and performing the center's activities, including any effects on state recycling rates or rates
of utilization of postconsumer materials in manufactured products that can reasonably be attributed, at least
in part, to the activities of the center.
(4) In order to carry out its responsibilities under this chapter, the department must enter into an interagency
agreement with the department of commerce to perform or contract for the following activities:
(a) Provide targeted business assistance to recycling businesses, including:
(i) Development of business plans;
(ii) Market research and planning information;
(iii) Referral and information on market conditions; and
(iv) Information on new technology and product development;
(b) Conduct outreach to negotiate voluntary agreements with manufacturers to increase the use of recycled
materials in products and product development;
(c) Support, promote, and identify research and development to stimulate new technologies and products
using recycled materials;
(d) Actively promote manufacturing with recycled commodities, as well as purchasing of recycled products by
state agencies consistent with and in addition to the requirements of chapter 43.19A RCW and RCW
39.26.255, local governments, and the private sector;
(e) Undertake studies on the unmet capital and other needs of reprocessing and manufacturing firms using
recycled materials, such as financing and incentive programs; and
(f) Conduct research to understand the waste stream supply chain and incentive strategies for retention,
expansion, and attraction of innovative recycling technology businesses.
(5) The department may adopt any rules necessary to implement and enforce this chapter including, but not limited
to, measures for the center's performance.
[ 2019 c 166 s 3. Formerly RCW 70.370.030.]
NOTES:
Effective date—2019 c 166: See note following RCW 70A.240.010.
WASHINGTON ECONOMIC DEVELOPMENT POLICY 16
Establishes life sciences discovery fund
RCW 43.330.500
The life sciences discovery fund is created in the custody of the state treasurer. Only the department or the
department's designee may authorize expenditures from the fund. Expenditures from the fund may be made only
for purposes of RCW 43.330.502. Administrative expenses of the department, including staff support, are limited to
actual costs incurred by the department in designating the nonprofit organization and in monitoring and collecting
grant payback funds. Revenues to the fund consist of transfers made by the legislature from strategic contribution
payments deposited in the tobacco settlement account under RCW 43.79.480, moneys received pursuant to
contribution agreements entered into pursuant to former RCW 43.350.030, moneys received from gifts, grants, and
bequests, and interest earned on the fund. During the 2017-2019 fiscal biennium, the legislature may make
appropriations from the fund to the department of commerce for providing life sciences research grants. The fund
is subject to allotment procedures under chapter 43.88 RCW, but an appropriation is not required for expenditures.
[ 2019 c 83 s 4; 2018 c 299 s 924; 2016 sp.s. c 36 s 937; 2011 c 5 s 916; 2005 c 424 s 8. Formerly RCW
43.350.070.]
NOTES:
Effective date—2018 c 299: See note following RCW 43.41.433.
Effective date—2016 sp.s. c 36: See note following RCW 18.20.430.
Effective date—2011 c 5: See note following RCW 43.03.220.
Establishes Andy Hill cancer research endowment
RCW 43.348.020
(1) The Andy Hill cancer research endowment is created. The powers of the endowment are vested in and must be
exercised by a board. The board consists of thirteen members appointed by the governor:
(a) Two members must be appointed from nominations submitted by the presidents of the University of
Washington and Washington State University;
(b) Two members must be appointed from nominations submitted by the Fred Hutchinson cancer center and
the Seattle children's research institute;
(c) Two members must be appointed from nominations submitted by patient advocacy organizations;
(d) Two members must be appointed from nominations submitted by representatives of businesses or
industries engaged in the commercialization of life sciences research or cancer research;
(e) One member must be appointed from a list of at least three nominated by the speaker of the house of
representatives;
(f) One member must be appointed from a list of at least three nominated by the president of the senate;
WASHINGTON ECONOMIC DEVELOPMENT POLICY 17
(g) One member must be appointed from nominations submitted by entities or systems that provide health
care delivery services;
(h) One member must be appointed from nominations provided by private sector donors to the fund. However,
the governor may reject all nominations and request a new list from which the governor must select the
member; and
(i) The remaining member must be a member of the public.
(2) In soliciting nominations and appointing members, the governor must seek to identify individuals from
throughout the state having relevant knowledge, experience, and expertise with regard to (a) cancer research,
prevention, and care; (b) health care consumer issues; (c) government finance and budget; and (d) the
commercialization of life sciences or cancer research. In soliciting nominations and appointing members, the
governor must seek individuals who will contribute to the geographic diversity of the board, with the goal that at
least five board members be from counties with a population less than one million persons. Appointments must be
made on or before July 1, 2016.
(3) The term of a member is four years from the date of their appointment except the initial term of the members in
subsection (1)(d) through (i) of this section must be two years to create a staggered appointment process. A
member may be appointed to not more than two full consecutive terms. A member appointed by the governor may
be removed by the governor for cause under RCW 43.06.070 and 43.06.080. The members may not be
compensated but may be reimbursed, solely from the fund, for expenses incurred in the discharge of their duties
under this chapter.
(4) Seven members of the board constitute a quorum.
(5) The members must elect a chair, treasurer, and secretary annually, and other officers as the members
determine necessary, and may adopt bylaws or rules for their own government.
(6) Meetings of the board must be held in accordance with the open public meetings act, chapter 42.30 RCW, and
at the call of the chair or when a majority of the members so requests. Meetings of the board may be held at any
location within or out of the state, and members may participate in a meeting of the board by means of a
conference telephone or similar communication equipment under RCW 23B.08.200.
(7) The board must be staffed by one or more program administrators selected by and under contract with the
board. The board may cause one or more tax-exempt nonprofit corporations to be created, organized, and operated
exclusively to perform some or all of the program administrator duties. The board may select and contract directly
with any program administrator. The program administrator must be paid an administrative fee as determined by
the board and paid mutually agreed-upon operating costs which may vary depending on the endowment's
activities.
[ 2025 c 199 s 2; 2018 c 4 s 2; 2015 3rd sp.s. c 34 s 3.]
WASHINGTON ECONOMIC DEVELOPMENT POLICY 18
Establishes tourism marketing authority
RCW 43.384
NOTE: The following excerpts identify instances of direct involvement by the Department of Commerce as set forth
in the statute. They are provided for ease of reference and do not represent the full scope of RCW 43.384 or its
individual sections.
RCW 43.384.010 – Definitions.
Excerpt:
(3) "Department" means the department of commerce.
(4) "Director" means the director of the department of commerce.
RCW 43.384.020 – Established—Duties—Administrative assistance.
Excerpt:
(3) The department provides administrative assistance to the authority and serves as the fiscal agent of the
authority for moneys appropriated for purposes of the authority.
RCW 43.384.030 – Board of directors—Membership—Advisory committee—Procedures.
Excerpt:
(2) There must be a nonvoting advisory committee to the board. The advisory committee must consist of:
(a) One ex officio representative from the department, state parks and recreation commission, department of
transportation, and other state agencies as the authority deems appropriate; and
(b) One member from a federally recognized Indian tribe appointed by the director of the department.
RCW 43.384.040 – Statewide tourism marketing account—Matching funds. (Effective January 1, 2026.)
Excerpt:
Expenditures from the account may be used only for expenditures of the department that are related to
implementation of a statewide tourism marketing program and operation of the authority.
RCW 43.384.050 – Use of funds.
Excerpt:
(1) From amounts appropriated to the department for the authority and from other moneys available to it, the
authority may incur expenditures for any purpose specifically authorized by this chapter […]
Establishes Keep Washington Working statewide work group
RCW 43.330.510
(1) A keep Washington working statewide work group is established within the department. The work group must:
(a) Develop strategies with private sector businesses, labor, and immigrant advocacy organizations to support
current and future industries across the state;
WASHINGTON ECONOMIC DEVELOPMENT POLICY 19
(b) Conduct research on methods to strengthen career pathways for immigrants and create and enhance
partnerships with projected growth industries;
(c) Support business and agriculture leadership, civic groups, government, and immigrant advocacy
organizations in a statewide effort to provide predictability and stability to the workforce in the agriculture
industry; and
(d) Recommend approaches to improve Washington's ability to attract and retain immigrant business owners
that provide new business and trade opportunities.
(2) The work group must consist of eleven representatives, each serving a term of three years, representing
members from geographically diverse immigrant advocacy groups, professional associations representing
business, labor organizations with a statewide presence, agriculture and immigrant legal interests, faith-based
community nonprofit organizations, legal advocacy groups focusing on immigration and criminal justice, academic
institutions, and law enforcement. The terms of the members must be staggered. Members of the work group must
select a chair from among the membership. The work group must meet at least four times a year and hold
meetings in various locations throughout the state. Following each meeting, the work group must report on its
status, including meeting minutes and a meeting summary to the department. The department must provide a
report to the legislature annually.
(3) In addition to the duties and powers described in RCW 43.330.040, it is the director's duty to provide support to
the work group.
(4) The definitions in RCW 43.17.420 apply to this section.
[ 2019 c 440 s 3.]
NOTES:
Findings—Construction—Conflict with federal requirements—Effective date—2019 c 440: See notes following RCW
43.17.425.
Workforce innovation
Substitute House Bill 1170
Workforce development
1/ Regarding RCW 43.330.060 Trade and business responsibilities should we include the following notes:
NOTES:
Findings—Intent—2010 c 165: "The legislature finds that small businesses and entrepreneurs are a fundamental
source of economic and community vitality for our state. They employ state residents, pay state taxes, purchase
goods and services from local and regional companies, and contribute to our communities in many other ways.
The legislature finds that small businesses and entrepreneurs need increased access to capital and technical
assistance in order to maximize their potential. The legislature intends that the department of commerce and the
small business development center each build upon their existing relevant statutory missions and authorities by
collaborating on a specific plan to expand services to small businesses and entrepreneurs beginning in the 2011-
2013 biennium." [ 2010 c 165 s 1.]
WASHINGTON ECONOMIC DEVELOPMENT POLICY 20
Savings—Effective date—2005 c 136: See notes following RCW 43.168.020.
Tacoma world trade center—1993 c 134: "The legislature recognizes that export opportunities for small and
medium-sized businesses stimulates economic growth. Within current resources, the department of trade and
economic development shall work with the Tacoma world trade center, to assist small and medium-sized
businesses with export opportunities." [ 1993 c 134 s 1.]
Small Business Finance and Community Support unit:
Establishing the State Small Business Credit Initiative (SSBCI)
RCW 43.330.060
“(4) The department shall work to increase the availability of capital to small businesses by developing new and
flexible investment tools; by assisting in targeting and improving the efficiency of existing investment mechanisms;
and by assisting in the procurement of managerial and technical assistance necessary to attract potential
investors.
(5) The department shall assist women and minority-owned businesses in overcoming barriers to entrepreneurial
success. The department shall contract with public and private agencies, institutions, and organizations to conduct
entrepreneurial training courses for minority and women-owned businesses. The instruction shall be intensive,
practical training courses in financing, marketing, managing, accounting, and recordkeeping for a small business,
with an emphasis on federal, state, local, or private programs available to assist small businesses. Instruction shall
be offered in major population centers throughout the state at times and locations that are convenient for minority
and women small business owners.
(6)(a) Subject to the availability of amounts appropriated for this specific purpose, by December 1, 2010, the
department, in conjunction with the small business development center, must prepare and present to the governor
and appropriate legislative committees a specific, actionable plan to increase access to capital and technical
assistance to small businesses and entrepreneurs beginning with the 2011-2013 biennium. In developing the plan,
the department and the center may consult with the Washington state microenterprise association, and with other
government, nonprofit, and private organizations as necessary. The plan must identify:
(i) Existing sources of capital and technical assistance for small businesses and entrepreneurs;
(ii) Critical gaps and barriers to availability of capital and delivery of technical assistance to small
businesses and entrepreneurs;
(iii) Workable solutions to filling the gaps and removing barriers identified in (a)(ii) of this subsection; and
(iv) The financial resources and statutory changes necessary to put the plan into effect beginning with the
2011-2013 biennium.
(b) With respect to increasing access to capital, the plan must identify specific, feasible sources of capital and
practical mechanisms for expanding access to it.”
WASHINGTON ECONOMIC DEVELOPMENT POLICY 21
Cannabis/Social Equity Program:
1. In 2020, HB 2870 permitted the issue of approximately 40 additional cannabis retail licenses to create
opportunities for diversity in the cannabis industry and reduce barriers to entry to the cannabis industry for
individuals and communities most adversely impacted by the enforcement of cannabis-related laws, or the “war on
drugs”
2. A task force formed to facilitate the development of a statewide cannabis social equity program. The Social
Equity in Cannabis Task Force convened and ultimately provided a Final Report to the Legislature and Governor
advising on the development of policies and recommendations to enhance social equity in the cannabis industry
licensing process.
Recommendations from the Task Force included:
- Focus on policies to expand cannabis licensure opportunities for social equity applicants.
- Create a professional development and workforce training program to support social equity applicants.
- Expand the scope of the Technical Assistance and Mentorship Program to include financial assistance for social
equity applicants.
- Create a community reinvestment fund from cannabis tax revenue to support communities harmed by the “war on
drugs”
2025 – Senate Bill 5080
Final rules (RCW 69.50.335) went into effect Jan. 18, 2025.
The cannabis retail registration window opened on Jun. 2, 2025 and closed Jul. 1, 2025.
69 registrants received notification they were “selected” for the Social Equity Program as of Oct. 20, 2025.
Equitable Access to Credit Program
RCW 82.04.449
2021 Engrossed Second Substitute House Bill 1015
RCW 43.330.050
Community and Economic Development Responsibilities
The Equitable Access to Credit Program, a tax credit program, awards grants to qualified lending institutions to
provide businesses in historically underserved communities with access to credit. It offers businesses and
individuals who pay state business and occupation tax (B&O) taxes a unique opportunity to contribute and receive
tax credits. By making cash contributions equivalent to their B&O tax liability, participants can receive a dollar-for-
dollar tax credit from the Department of Revenue (DOR). Businesses can contribute up to $1 million annually to the
Program and receive tax credit.
The program provides a tax preference mechanism that generates funds for grants to qualified lending institutions.
These grants, funded through contributions in exchange for B&O tax credits, are dedicated to providing access to
credit for historically underserved communities. A minimum of 65% of the value of all grants awarded in any
WASHINGTON ECONOMIC DEVELOPMENT POLICY 22
calendar year must be allocated for native Community Development Financial Institutions (CDFI) or grantees to
provide services or invest, or both, in rural counties.
Small Business Resiliency Network (SBRN) Program
RCW 43.330.050
Community and Economic Development responsibilities
RCW 43.330.070
Local development Training and technical assistance
2022 Engrossed Substitute Senate Bill 5693
5693-S.PL.pdf (wa.gov) pages 114-115
(148) $15,000,000 of the coronavirus state fiscal recovery fund— federal appropriation is provided solely to expand
the small business resiliency network program. Program expansion activities may include:
(a) Providing funding for new or existing network partners to provide wraparound services and support to assist
small business owners, including support in accessing financing; and
(b) Establishing a credit repair pilot program by contracting with community foundations and nonprofit credit
unions with existing character-based lending programs to provide credit counseling and other services to build or
improve credit for small businesses and entrepreneurs who are unable to access conventional lending.
State Small Business Credit Initiative (SSBCI) and Technical Assistance
Program
A 2021 Authority issued by the Governor’s office through a competitive application process with U.S. Treasury to
participate in the State Small Business Credit Initiative (SSBCI) pursuant to:
RCW 43.330.040
Director powers and duties
RCW 43.330.050
Community and economic development responsibilities
RCW 43.330.060
Trade and business responsibilities
The above provides authority, issued by Governor’s office, through a competitive application process with U.S.
Treasury to participate in the State Small Business Credit Initiative (SSBCI), and has:
WASHINGTON ECONOMIC DEVELOPMENT POLICY 23
1) designated the Washington State Department of Commerce (Commerce) to accept SSBCI funds from U.S.
Treasury allocated to the state of Washington.
2) Commerce responsible for administrating Washington’s participation in the SSBCI and ensuring the
implementation of the programs included in Washington’s application.
3) Commerce is responsible for overseeing SSBCI programs and contractors for ensuring that all reporting
requirements under Treasury regulations are completed.
4) Commerce all necessary legal authority to enter into an allocation agreement with Treasury.
WASHINGTON ECONOMIC DEVELOPMENT POLICY 24
File and source
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