Latest news with #JakeFey
Yahoo
09-07-2025
- Business
- Yahoo
High costs may force WA ferry electrification program off course
Washington State Ferries said it would deploy its new electric ferries first on the Mukilteo-Clinton run. The short route is currently served by diesel ferries like the Tokitae, seen here approaching Whidbey Island. (Photo by Tom Banse) Washington aspires for its largest-in-the-nation fleet of passenger ferries to operate reliably and emission-free by 2050. To get there, the plan is to convert six existing vessels to hybrid-electric power, build 16 new plug-in boats, and add shore charging to 16 terminals — all by 2040. But only one conversion is done. And neither new vessels nor electrified terminals are expected to be operational before the end of the decade. With projects taking longer and costing more than expected, achieving the ambitious mid-century goal for the ferry system looks increasingly unattainable. 'We can't do everything we want to do. We can't buy everything we want to buy, so let's talk about the priorities,' said Rep. Jake Fey, D-Tacoma, chair of the state House Transportation Committee, ahead of a work session Tuesday on where things stand in the ferry agency's pursuit of electrification. Rep. Andrew Barkis, R-Olympia, the lead Republican on the committee, agreed after the meeting. 'We need to sit down and review this whole thing — how we're doing this, why we're doing this — for the next 20 years for Washington State Ferries,' he said. Conversion of the Wenatchee, a Jumbo Mark II-class vessel with a 202-car capacity, is done and it returns to service Thursday, a year later than expected. Its $133 million cost is much more than originally budgeted. Planned conversions of two other boats are on hold indefinitely. A week ago, Gov. Bob Ferguson announced he'd accepted Florida-based Eastern Shipbuilding Group's bid to build three new hybrid electric ferries. The first one — at a total cost of about $405 million — is expected to be delivered in about five years. The large price tags and long timelines are stirring conversations among lawmakers and with the governor on how they can erase Washington State Ferries' carbon wake, given limited resources and high demand for service. 'The path from here to there is going to be a little more unpredictable and bumpy, but we're going to get there,' said Sen. Marko Liias, D-Edmonds, chair of the Senate Transportation Committee. 'We're headed in the right direction.' Liias said he's ready to focus on procuring new boats and using cleaner, renewable diesel to fuel existing ones, and pause converting existing boats to electric power for the time being. A new boat will be in use for 60 years while a converted one gains an estimated 25 years of service, he said. Adding new vessels and switching the entire fleet to cleaner-burning diesel could get the state to 90% of its emission reduction goal by 2050, he postulated. 'We need to be more eyes wide open after what we've seen with the Wenatchee,' he said. 'We want to see cleaner air, but we can't write a blank check.' The cost-benefit of converting the jumbo ferry came up late in Tuesday's work session State ferry officials estimated $96 million of the $133 million total could be viewed as directly related to changing the vessel to a hybrid-electric. Though the amount would be less when factoring in savings from buying less diesel fuel when operating on battery power, they said. Rep. Adam Bernbaum, D-Port Angeles, vice chair of the transportation committee, wanted to know what amount of greenhouse gas emission reduction would be achieved. State ferry officials didn't have an immediate answer. 'From a cost perspective, is this an efficient or good use of the state's money? To me, it seems pretty expensive,' he said. 'I would hope that there would be quite significant reductions in greenhouse gas emissions if we're going to continue down this path.' Executive orders issued by former Democratic Gov. Jay Inslee in 2018 and 2020 are steering Washington State Ferries' transition to an emission-free fleet. There's also a separate state law requiring state agencies to reduce their greenhouse gas emissions by 70% by 2040 and to be at net zero a decade later. In 2020, the ferry agency published its System Electrification Plan. It carried an estimated cost of $4 billion, but that figure is 'outdated,' David Sowers, who oversees the electrification program, told House members. 'It doesn't reflect the current bidding climate,' and other costs like tariffs, he said. So far, the agency has secured $1.68 billion. After the meeting, Bernbaum said his questions regarding the conversion were to better understand 'what we are actually paying for' in the push to carry out the electrification program. If the goal is protecting the planet from the effects of climate change, and there is $80 million to spend, is it better spent on converting one ferry or on a utility-scale solar or wind farm?' he said. 'We should be aspiring to get to net zero. But we should be spending those dollars in a wise way and that means not being absolutist,' he said. 'I think we're in a nice reflection point when we're starting to get the data back and it gives us an opportunity to reflect and think about if this is the best path forward.'
Yahoo
25-04-2025
- Business
- Yahoo
WA House advances gas tax increase, $3.2B transportation revenue package
Traffic on Interstate 5 near Olympia. (Bill Lucia/Washington State Standard) Washington House Democrats late Thursday approved a multibillion-dollar transportation revenue package anchored by a 6-cent increase to the state's gas tax, the first hike in nearly a decade. The increase would bring the state's per-gallon gas tax from 49.4 cents to 55.4 cents, then raise it by 2% each year to account for inflation. At the same time, the state tax on diesel would go up three cents in July and another three cents two years later. That six cents would also get a 2% boost each year after that. The gas tax hike, which would go into effect in July, is expected to raise $1.4 billion over the next six years. The diesel tax would net upward of $160 million over that time, estimates show. In total, lawmakers are banking on the package to bring in $3.2 billion over the next six years. Senate Bill 5801 contains numerous other tax and fee boosts. There's an increase in the passenger vehicle weight fee. There's a bump in the added sales tax for vehicles from 0.3% to 0.5%. There are $3 increases in the fees for titles and registrations. There's a new 8% tax on the portion of the selling price of vehicles above $100,000. There's a 10% tax on the amount of non-commercial aircraft sales above $500,000. There's a temporary increase in the rental car tax from 5.9% to 11.9% before moving down to 9.9% in 2027. There's an increase in the tire replacement fee from $1 to $5. There's a $1 increase every three years in fees for new IDs and driver's licenses. And there's an added charge for ferry riders paying with credit cards, as well as a 50-cent increase to the capital vessel surcharge on each fare. House Transportation Committee Chair Jake Fey, D-Tacoma, said the 'dire' transportation budget situation warrants the potpourri of taxes. Lawmakers have warned of a $1 billion shortfall over the next two-year budget cycle, ballooning to $8 billion over the next six years. They point to skyrocketing construction costs, flagging gas tax revenue and the looming multibillion-dollar question of how to address the court-ordered removal of culverts blocking fish migration. 'My constituents don't want to pay more, but they want to drive on roads that are well maintained,' said Rep. Julia Reed, D-Seattle. 'They want to ride on ferries that function and run on time. They want to see their streets served by modes of transportation that allow them to get out of their cars once in a while, and allow their children to move around more freely.' Republicans say the medley of taxes, on top of separate levies to pay for the operating budget, is too much for working-class residents to bear. Rep. Andrew Barkis, the leading Republican voice in the House on transportation issues, said in floor debate that he recognizes revenue is needed to improve Washington's infrastructure. But 'it comes to a point where we're putting this on the backs of Washingtonians with an ever-increasing burden of taxation,' said Barkis, of Olympia. On the House floor, Democrats rejected Republican proposals to get rid of the increases to the gas and diesel taxes, rental car tax, vehicle sales tax and tire replacement fee. Democrats did choose to ax a controversial $1-per-attendee tax on sporting events, concerts and more at large venues. To make up for the lost revenue, they added another increase to the fee on heavier passenger vehicles. They also elected to require the state Department of Transportation to conduct an analysis before imposing tolls across the entire State Route 520 corridor, not just the floating bridge, as is currently the case. When the Senate approved its initial $3 billion revenue framework last month, four Republicans joined most Democrats in support. On Thursday night, the new version in the House passed 51-47 without any Republican votes and eight Democrats in opposition. Senate Bill 5801 now goes to the Senate to agree with the changes made in the House before sending it to Democratic Gov. Bob Ferguson's desk by Sunday's scheduled close of the legislative session. The chamber plans to take it up later Friday. Ferguson has not publicly weighed in on the proposed gas tax increase. 'We'll see when that comes to me,' Ferguson told reporters Friday, noting he was expecting a briefing from his budget director on the plan's latest version. How exactly the additional money will be spent remains to be seen. Lawmakers finished negotiating late Wednesday on their funding plan, expected to total upward of $15 billion. They plan to release their agreed proposal Saturday morning. Also on Thursday, the House approved transferring 0.1% of proceeds from the state sales tax from the operating budget to transportation starting in the 2027-29 biennium. This would shift hundreds of millions of dollars toward transportation. The Senate on Friday also passed the bill, Senate Bill 5802, so it's headed to the governor.
Yahoo
22-04-2025
- Business
- Yahoo
6-cent gas tax hike central to new transportation deal in WA Legislature
(Getty Images) Transportation budget writers in the Washington Legislature are settling on a revenue package that would hike the state's gasoline tax 6 cents a gallon beginning July 1. The potential gas tax increase, the first in the state since 2016, raises nearly half of the estimated $3.2 billion the new package is expected to bring in over six years. It would up the state's levy from 49.4 cents per gallon to 55.4 cents, then lift it by 2% each year. The proposal is the product of bipartisan negotiations between legislators in the House and Senate seeking a solution to soaring project costs and flagging gas tax collections as drivers transition to more efficient vehicles. 'We're close,' said House Transportation Committee Chair Jake Fey, D-Tacoma. The new proposition in Senate Bill 5801 makes a sizable dent in what's estimated to be a $1 billion shortfall over the next two years and $8 billion over the next six years. Lawmakers say more money is needed to fund highway megaprojects, the Washington State Patrol, state ferries and the removal of culverts and other barriers blocking fish migration. Meanwhile, the two chambers are negotiating over what the new revenue will pay for as they hash out a two-year transportation plan in the $15 billion to $16 billion range. Initial revenue packages released last month totaled $4.4 billion in the House and $3 billion in the Senate. The revised gas tax proposal hews closer to what the Senate previously unveiled. The House had teased raising the tax 9 cents, then indexing it to inflation. The Senate's original plan received some Republican backing, passing 31-18 in March with three Democrats opposed and four Republicans in support. Washington's gas tax is already one of the highest in the country, before accounting for the 18.4-cent federal rate. On top of the gas tax hike, the latest framework includes hikes for the diesel fuel tax — 3 cents a gallon in both fiscal years 2026 and 2028, then those increases indexed to rise 2% annually for inflation. There are also added taxes on vehicle sales, rental cars, luxury vehicles, private jets and a $1 per attendee fee on operators of stadiums and other venues with a capacity of 17,000 or more. One of the bigger-ticket items is $317 million from a $30-per-ton weight fee on heavy-duty trucks that would also rise with inflation in future years. Lawmakers also pencil in $138 million from violations of the state's new speed cameras in work zones. The tax cornucopia also drops some controversial ideas in the earlier House and Senate proposals. There's no increased fee on electric vehicle registrations. There's no new 10% surcharge on e-bike purchases. There's no vehicle registration fee for transit operators. And there's no ferry fare increase. Most notable may be the absence of a new highway use fee the House had floated. The creative fee, patterned after a similar approach in Virginia, would have charged drivers based on their car's fuel economy, with more efficient vehicles paying more. Fey and other Democrats have toyed with such a road usage charge for over a decade. He was disappointed to see it not included in Tuesday's revenue proposal. Senate Transportation Committee Chair Marko Liias, D-Edmonds, said negotiators dropped the charge because of how late in the process it came and the resulting lack of time 'to understand the impacts.' The plan includes other policy changes, including tolling on the entire State Route 520 corridor, not just the floating bridge, mandating biodiesel fuel for state ferries and providing a sales tax exemption for zero-emission buses. But it doesn't include added uses for Tacoma Narrows Bridge toll proceeds or increased enforcement for expired vehicle registration tabs, as the Senate had proposed. The proposal, heard in the House Transportation Committee on Tuesday, is set for a vote from the panel Wednesday morning. The legislative session is scheduled to end Sunday.
Yahoo
11-04-2025
- Automotive
- Yahoo
Washington state may charge drivers fuel efficiency fee, raise gas tax to 58.4 cents per gallon
For more than 100 years, roads and bridges in Washington state have been paid for with gas taxes. But thanks to more fuel-efficient and electric cars, the tax revenue is declining, says House Transportation Committee Chair Rep. Jake Fey. In a press release, he noted that gas tax revenue funds more than a third of the state's transportation budget ($1.3 billion annually), and without action gas tax revenue will decline by over 70% by 2050, leaving roads significantly underfunded. Fey's new proposal is to charge car owners an annual fee based on the mileage of their vehicles. This alongwith a nine-cent increase to the state gas tax is part of the House $15.2 billion transportation budget proposal. 'It's easy to collect," Fey said to King 5. "It's easy to get the information on miles per gallon." The proposed fee would not apply to cars that get less than 25 miles per gallon — meaning vehicles that use more gas will not be charged the fee, since they already pay more in gas taxes. Fey's proposed per-mile fee would only apply to cars with more efficient engines — not plug-in hybrids or electric cars, which pay an annual registration fee. Traditional hybrids would no longer have to pay the $75 hybrid registration fee. Instead, they would be subject to the new Highway Use Fee. For example, a car that gets 26 miles per gallon would be charged about $7 per year in fees. A vehicle with 50 miles per gallon efficiency would pay $94 annually, according to KING 5. 'This is going to start in addition to the gas tax, which is also going to be raised, so there are some concerns there,' said Rep. Andrew Barkis, the top-ranking Republican on the House Transportation Committee, to King 5. 'But if this is a model that over time can morph into a road usage charge that replaces the gas tax, this is a good model.' Despite his support, Barkis ultimately voted against the transportation budget proposal, saying he'd prefer to see the state use sales tax from car purchases or the Climate Commitment Act to pay for road repairs. The Washington House and Senate must now negotiate and reconcile their transportation budgets to reach a final agreement before the end of the legislative session on April 27. While the proposed Highway Use Fee might not break the bank, it comes at a time when many Washington residents are already feeling the pinch of rising car-related costs. Washington already has one of the highest gas taxes in the country at 49.4 cents per gallon and this may go higher. Auto insurance rates are climbing across the country, and drivers are also paying more for repairs, parts, and vehicle registrations. When viewed together, these incremental increases can put additional strain on household budgets. This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
Yahoo
08-04-2025
- Business
- Yahoo
Inflation worries drive WA lawmakers to jack up I-5 bridge borrowing plan by $900M
Crews work on the Interstate 5 bridge over the Columbia River in 2019. (Oregon Department of Transportation) Washington state lawmakers on Monday backed a huge increase in the amount of toll revenues they'll count on to help pay for construction of a replacement bridge on Interstate 5 across the Columbia River. The House Transportation Committee amended then approved House Bill 1958, authorizing the sale of $2.5 billion in general obligation bonds. That's $900 million more than assumed in the original bill. The legislation now goes to the Rules Committee and a likely floor vote in the coming days. With significant cost increases on major highway and bridge projects in recent years, it made sense to recalibrate to a higher bonding capacity to avoid getting into a pinch, backers said. 'The idea is that we have to have enough resources for construction. We think we have enough, but we want to make sure,' said Rep. Jake Fey, D-Tacoma, chair of the House Transportation Committee and the bill's sponsor. Sen. Marko Liias, D-Edmonds, chair of the Senate Transportation Committee, said, 'We need to make sure this project is well-positioned to stay on schedule and get built as soon as possible.' Project planners have estimated the price tag for replacing the bridge will range from $5 billion to $7.5 billion, with a likely figure of around $6 billion. Permits are anticipated by 2026. Once rolling, construction is expected to last until 2032. Washington and Oregon have committed about $1 billion each and the states have snagged federal grants totaling $2.1 billion. Tolls were counted on to raise at least $1.2 billion of the current projected cost. They'll be imposed in both directions on the existing bridge as early as spring of 2026. Because Washington will be administering the tolling program, it is the one that needs to issue the bonds. Bonds, a long-assumed source of financing for the new span linking Washington and Oregon, would pay for design and construction, as well as future maintenance and operation. The borrowed money would be repaid with toll proceeds, gas taxes, and vehicle fees. Because the bonds would be backed by 'the full faith and credit of the state,' the general fund could be tapped as a last-resort source of repayment. Rep. John Ley, R-Vancouver, a vocal opponent of tolling, opposed the bill in committee on Monday. He said he'll propose changes when it reaches the House floor for a vote. Ley said he'll offer an amendment to ensure Washington and Oregon share equally in the liability if there are not enough proceeds to repay the bonds. As written, responsibility would fall solely upon Washington, he argued. More importantly, he said, with a new project cost estimate due out in summer, it's too soon for this conversation. 'We shouldn't be talking about bonding tolls until we have a price tag,' he said.
