wa-law.org > bill > 2025-26 > SB 6003 > Substitute Bill
A supplemental capital budget is hereby adopted and, subject to the provisions set forth in this act, the several dollar amounts hereinafter specified, or so much thereof as shall be sufficient to accomplish the purposes designated, are hereby appropriated and authorized to be incurred for capital projects during the period beginning with the effective date of this act and ending June 30, 2027, out of the several funds specified in this act.
SPECIAL APPROPRIATION FOR THE GOVERNOR
SPECIAL APPROPRIATION FOR THE GOVERNOR
FOR THE SECRETARY OF STATE
FOR THE SECRETARY OF STATE
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The appropriation in this section is subject to the following conditions and limitations: The appropriation in this section is provided solely for the following list of projects:
Bridge 33, Rehabilitation$140,000
Burpee Hill Road Landslide Recovery$464,000
Carlisle Lake Dam Safety Improvement$1,545,000
City of Pacific Infrastructure Replacement
and FEMA Match$7,500,000
Green River Signature Pointe Levee$2,000,000
Nooksack Integrated Floodplain$13,050,000
PCLS Parkland Library Flood Mitigation$258,000
Samish River Levees$200,000
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The appropriation in this section is subject to the following conditions and limitations: The appropriation in this section is provided solely for the following list of projects:
Lakewood Nourish Market & Connection Center$5,000,000
Our Sisters' House Permanent Home$1,800,000
Pasco Regional Police Academy Improvements$1,002,000
Seattle Orcas Cricket Community Park$2,500,000
Terrain Cultural Hub$2,050,000
Wild Felid Advocacy Center$948,000
FOR THE DEPARTMENT OF COMMERCE
The appropriation in this section is subject to the following conditions and limitations: The department may not expend the appropriations in this section unless and until the nonprofit selected as the state green bank pursuant to section 130(19), chapter 376, Laws of 2024, changes its name to Washington builds.
$50,000,000 of the appropriation in this section is provided solely to contract with Washington builds to provide accessible and affordable financing for energy efficiency and renewable energy projects for Washington residents and businesses that reduce costs, lower greenhouse gas emissions, and create jobs statewide. Contracts authorized under this section must require Washington builds to remain an independent nonprofit corporation recognized as exempt from federal income taxation for public benefit purposes and to maintain a board of directors that includes members with experience in private sector project finance, banking, and general contracting.
$5,500,000 of the appropriation in this subsection (1) is provided solely for agreements to support a residential credit enhancement model, including partnerships with lenders and contractors, to finance energy efficiency upgrades, solar installations, electrical vehicle chargers, and emergency HVAC replacements. Where feasible, energy efficiency upgrades should provide electric equipment and infrastructure. Funding must prioritize low-income to moderate-income families and households unable to access traditional financing. Families and households above moderate income are eligible but must not be prioritized.
$17,000,000 of the appropriation in this subsection (1) is provided solely for agreements supporting commercial energy efficiency, including, but not limited to, meeting clean buildings performance standard compliance and helping small businesses and tribes in procuring clean energy and pursuing fleet electrification projects, consistent with subsections (3)(a)(iii) and (iv) of this section.
$25,000,000 of the appropriation in this subsection (1) is provided solely for Washington builds for (a) or (b) of this subsection, if Washington builds demonstrates to the department that the funding under (a) of this subsection is obligated and achieves a 15:1 leverage ratio and under (b) of this subsection is obligated and achieves a 3:1 leverage ratio.
Projects funded by this section must meet one or more of the following objectives:
Increase investment in qualified clean energy projects statewide;
Improve the standard of living of Washington residents by supporting efficient, lower-cost clean energy development and financing projects that create high-paying, long-term jobs;
Foster the development and consistent application of transparent underwriting standards, standard contractual terms, and measurement and verification protocols for qualified clean energy projects;
Support the development of performance data to improve effective underwriting, risk management, and financial modeling and to stimulate primary and secondary markets for qualified clean energy projects; and
Provide financing support that abates climate change through the deployment of clean energy technologies that save energy, reduce energy costs and harmful air emissions, or increase energy independence. Priority must be given to projects benefiting vulnerable populations, including tribes and communities with high environmental or energy burdens, and that complement other state clean energy and energy efficiency programs.
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In grants authorized under this section, the department must require Washington builds to establish guidelines, screening processes, and evaluation and selection criteria for lenders participating in the credit enhancement model. For all other applicants and project types, Washington builds shall directly offer financial products, including soliciting, evaluating, and monitoring projects funded under this section. Grant agreements must require Washington builds to:
Use competitive selection processes to select lender partners, contractors, and projects, except as otherwise provided in this section;
Conduct appropriate due diligence in the use of public funds, including project selection oversight, project monitoring, and compliance with all applicable laws, and including disclosure and conflict of interest statutes;
Adopt policies and procedures establishing borrower eligibility and the terms and conditions of financial support before providing financing for qualified clean energy projects;
Develop and offer financing structures for qualified clean energy projects, including, but not limited to, loans, credit enhancements, guarantees, warehousing, securitization, and other financial products and structures;
Leverage private investment in qualified clean energy projects through financing mechanisms that support, enhance, and complement private investment;
Ensure that financing entities provide funds in a reasonable and transparent manner that is consistent with borrower financial interests and state consumer protection standards; and
Charge reasonable fees for financing support and risk management activities.
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Consistent with chapter 42.52 RCW, a project applicant must disclose in application materials any current or former state employee employed by the applicant or serving on its governing board within the preceding 24 months, including the individual's name, employing agency, position held, and separation date. If it is determined by the department or Washington builds that there is a conflict of interest or a situation that is likely to constitute a violation of chapter 42.52 RCW, the applicant may be disqualified from further consideration.
If, after notice and review, the department or Washington builds determines that a funding recipient is involved in a conflict of interest or likely violation of chapter 42.52 RCW or similar law, the department or Washington builds may terminate the funding agreement by written notice and pursue available legal remedies.
Requirements in subsection (4) of this section must be included in all funding agreements issued by the department and Washington builds.
$1,250,000 of the appropriation in this section is provided solely for a grant to Washington builds for program administration. In the grant authorized under this subsection, the department must include provisions that require Washington builds to:
Maintain a centralized public website reporting financing rates, terms, and conditions of all financing support transactions, except where disclosure of such information would reveal trade secrets, confidential commercial information, or confidential financial information;
Post a third-party financial audit annually to the public website starting June 30, 2026;
Coordinate with market and program participants to disseminate best practices for project oversight and consumer protection;
Prepare an annual public report on Washington builds' financing activities, including other project funding sources, greenhouse gas emission reductions, estimated job creation, income levels of residential recipients, and the geographic distribution of financed projects. Submit the report to the governor and the appropriate legislative committees by November 1st of each year, beginning in fiscal year 2027;
Conduct a market analysis to assess demand and feasibility for Washington builds to offer services in water efficiency technologies, drought mitigation projects, and climate resilience projects; and
Perform other activities as are necessary to carry out the provisions of this section.
$1,250,000 of the appropriation in this section is provided solely for the department's administrative expenses to carry out the provisions of this section.
FOR THE DEPARTMENT OF COMMERCE
The appropriation in this section is subject to the following conditions and limitations:
The legislature intends that grants provided in this section support capital projects throughout the state that benefit entities serving local communities within a given legislative district. The department shall enter into contracts with entities to accomplish the purposes intended by the legislature within the parameters outlined in section 8006 of this act.
The appropriation in this section is provided solely for the following list of projects:
African Diaspora Cultural Anchor Village$4,000,000
Food Lifeline$634,000
ICHS Holly Park$106,000
Kirkland Public Works Maintenance Center$350,000
Mt. View Pressure Zone Reservoir Design$515,000
North Beach PAWS$250,000
Northwest Maritime Grant$463,000
Olympic Discovery Trail Port Townsend$750,000
Outdoors for All$1,000,000
Plymouth Housing$1,000,000
TVW Facility Expansion$2,500,000
FOR THE DEPARTMENT OF ENTERPRISE SERVICES
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FOR THE MILITARY DEPARTMENT
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The following acts or parts of acts are each repealed:
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FOR THE DEPARTMENT OF AGRICULTURE
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2025 c 414 s 3117 (uncodified) is repealed.
FOR THE SUPERINTENDENT OF PUBLIC INSTRUCTION
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FOR THE WASHINGTON STATE HISTORICAL SOCIETY
FOR THE STATE BOARD FOR COMMUNITY AND TECHNICAL COLLEGES
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FOR THE WASHINGTON STATE CRIMINAL JUSTICE TRAINING COMMISSION
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FOR THE DEPARTMENT OF LABOR AND INDUSTRIES
FOR THE DEPARTMENT OF SOCIAL AND HEALTH SERVICES
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FOR THE DEPARTMENT OF CORRECTIONS
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The following acts or parts of acts are each repealed:
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FOR THE EVERGREEN STATE COLLEGE
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FOR THE STATE BOARD FOR COMMUNITY AND TECHNICAL COLLEGES
FOR THE SUPERINTENDENT OF PUBLIC INSTRUCTION
RCW 43.88.031 requires the disclosure of the estimated debt service costs associated with new capital bond appropriations. The estimated debt service costs for the appropriations contained in this act are $73,258,483 $46,425,516 for the 2025-2027 biennium, $410,061,655 $390,379,123 for the 2027-2029 biennium, and $631,176,449 $584,977,090 for the 2029-2031 biennium.
(1) The following agencies may enter into financial contracts, paid from any funds of an agency, appropriated or nonappropriated, for the purposes indicated and in not more than the principal amounts indicated, plus financing expenses and required reserves pursuant to chapter 39.94 RCW. When securing properties under this section, agencies shall use the most economical financial contract option available, including long-term leases, lease-purchase agreements, lease-development with option to purchase agreements or financial contracts using certificates of participation. Expenditures made by an agency for one of the indicated purposes before the issue date of the authorized financial contract and any certificates of participation therein are intended to be reimbursed from proceeds of the financial contract and any certificates of participation therein to the extent provided in the agency's financing plan approved by the state finance committee.
(1) The legislature finds that use of life-cycle cost analysis will aid public entities, architects, engineers, and contractors in making design and construction decisions that positively impact both the initial construction cost and the ongoing operating and maintenance cost of a project. To ensure that the total cost of a project is accounted for and the most reasonable and cost efficient design is used, agencies shall develop life-cycle costs for any construction project over $10,000,000. The life-cycle costs must represent the present value sum of capital costs, installation costs, operating costs, and maintenance costs over the life expectancy of the project. The legislature further finds the most effective approach to the life-cycle cost analysis is to integrate it into the early part of the design process.
(1) For the 2025-2027 fiscal biennium, unless otherwise specified for a single purpose in this act or chapter 414, Laws of 2025, agencies are appropriated one lump sum for minor works projects. It is the intent of the legislature that appropriated funds be spent in the biennium for which they are appropriated.
(1) The legislature intends that appropriations for grant programs and community projects be spent in a timely manner in order to accomplish the goal for which they were appropriated. In furtherance of this goal, the legislature does not intend to reappropriate moneys for projects for which a contract has not been executed within four years from the date of appropriation or for which appropriations have not been spent within six years of appropriation:
(1) Except as otherwise required by statute, grant programs appropriated in this act and administered by the department of commerce must comply with the criteria outlined in this section.
FOR THE STATE TREASURER—TRANSFERS
Any agency receiving appropriations in this act from climate commitment act accounts created in RCW 70A.65.240 through 70A.65.280 must report to and coordinate with the department of ecology to track expenditures as described in RCW 70A.65.300 and chapter 173-446B WAC. If an expenditure is expected to result in greenhouse gas emission reductions, the agency must use a department of ecology approved calculator tool or methodology.
Subject to availability of amounts appropriated for this specific purpose, the low-income home rehabilitation grant program is created within the department.
The program must include the following elements:
Eligible homeowners must be low-income and live in rural areas.
Homeowners who are senior citizens, persons with disabilities, families with children five years old and younger, and veterans must receive priority for grants.
The cost of the home rehabilitation must be the lesser of:
80 percent of the assessed or appraised value of the property post rehabilitation, whichever is greater; or
$50,000.
The maximum amount that may be granted under this program may not exceed the cost of the home rehabilitation as provided in (c) of this subsection.
The department must adopt rules for implementation of this grant program.
Notwithstanding RCW 43.330.480(2) and subsection (2)(a) of this section, for the 2025-2027 fiscal biennium, amounts appropriated for low-income home rehabilitation projects impacted by the weather event described in emergency proclamation 25-07 are not limited to homeowners in rural areas.
The commission may acquire by gift, easement, purchase, lease, or condemnation lands, buildings, water rights, rights‑of‑way, or other necessary property, and construct and maintain necessary facilities for purposes consistent with this title. The commission may authorize the director to acquire property under this section, but the power of condemnation may only be exercised by the director when an appropriation has been made by the legislature for the acquisition of a specific property, except to clear title and acquire access rights‑of‑way.
The commission may sell, lease, convey, or grant concessions upon real or personal property under the control of the department.
During the 2025-2027 fiscal biennium, this section does not apply to the sale of land pursuant to section 3102, chapter 414, Laws of 2025 or section 3013 or 3015, chapter . . ., Laws of 2026 (section 3013 or 3015 of this act).
The director shall maintain and manage real or personal property owned, leased, or held by the department and shall control the construction of buildings, structures, and improvements in or on the property. The director may adopt rules for the operation and maintenance of the property.
The commission may authorize the director to sell, lease, convey, or grant concessions upon real or personal property under the control of the department. This includes the authority to sell timber, gravel, sand, and other materials or products from real property held by the department, and to sell or lease the department's real or personal property or grant concessions or rights‑of‑way for roads or utilities in the property. Oil and gas resources owned by the state which lie below lands owned, leased, or held by the department shall be offered for lease by the commissioner of public lands pursuant to chapter 79.14 RCW with the proceeds being deposited in the fish, wildlife, and conservation account created in RCW 77.12.170(3): PROVIDED, That the commissioner of public lands shall condition such leases at the request of the department to protect wildlife and its habitat.
If the commission determines that real or personal property held by the department cannot be used advantageously by the department, the director may dispose of that property if it is in the public interest.
If the state acquired real property with use limited to specific purposes, the director may negotiate terms for the return of the property to the donor or grantor. Other real property shall be sold to the highest bidder at public auction. After appraisal, notice of the auction shall be published at least once a week for two successive weeks in a newspaper of general circulation within the county where the property is located at least 20 days prior to sale.
Proceeds from the sales shall be deposited in the fish, wildlife, and conservation account created in RCW 77.12.170(3).
During the 2025-2027 fiscal biennium, this section does not apply to the sale of land pursuant to section 3102, chapter 414, Laws of 2025 or section 3013 or 3015, chapter . . ., Laws of 2026 (section 3013 or 3015 of this act).
For purposes of this title, the commission may make agreements to obtain real or personal property or to transfer or convey property held by the state to the United States or its agencies or instrumentalities, units of local government of this state, public service companies, or other persons, if in the judgment of the commission and the attorney general the transfer and conveyance is consistent with public interest. For purposes of this section, "local government" means any city, town, county, special district, municipal corporation, or quasi-municipal corporation.
If the commission agrees to a transfer or conveyance under this section or to a sale or return of real property under RCW 77.12.210, the director shall certify, with the attorney general, to the governor that the agreement has been made. The certification shall describe the real property. The governor then may execute and the secretary of state attest and deliver to the appropriate entity or person the instrument necessary to fulfill the agreement.
During the 2025-2027 fiscal biennium, this section does not apply to the sale of land pursuant to section 3102, chapter 414, Laws of 2025 or section 3013 or 3015, chapter . . ., Laws of 2026 (section 3013 or 3015 of this act).
2025 c 414 s 8020 (uncodified) is repealed.
If any part of this act is found to be in conflict with federal requirements that are a prescribed condition to the allocation of federal funds to the state, the conflicting part of this act is inoperative solely to the extent of the conflict and with respect to the agencies directly affected, and this finding does not affect the operation of the remainder of this act in its application to the agencies concerned. Rules adopted under this act must meet federal requirements that are a necessary condition to the receipt of federal funds by the state.
If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.
This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately.