Senate committee adopts amendment to extend and clarify agricultural fuel exemptions under Climate Commitment Act

The Senate Environment, Energy & Technology Committee on Thursday adopted an amendment to Engrossed Second Substitute House Bill 1912 and voted to send the bill, as amended, to the Ways and Means Committee.

The bill would establish a voluntary process for certain entities to notify the Department of Ecology of locations where fuels exempt from the Climate Commitment Act are sold, require Ecology to publish specified information by Oct. 1, 2025, and extend an exemption for certain fuels used to transport agricultural products on public highways by two years. Staff told the committee the bill originally directed the Department of Commerce, subject to appropriation, to provide financial assistance to retail fuel sellers to facilitate sales of exempt fuels; the striking amendment removes that appropriation language.

Senator Short, who offered the striking amendment and a follow-on page-in-line amendment, said the change reflects ongoing stakeholder work to make the exemption clearer for farmers. "This is an important first step and I support it," Senator Short said. The adopted striking amendment defines "motor vehicle fuel" to mean gasoline used primarily to propel vehicles or vessels and defines "special fuel" to include diesel, biodiesel and other listed fuels; it makes the exemption for fuels used by a farm fuel user available regardless of whether the fuel propels a motor vehicle until Jan. 1, 2030, after which the exemption applies only to fuel used to propel a motor vehicle. A later page-in-line amendment removed liquefied petroleum gas, natural gas and kerosene from the special fuel definition while adding legislative intent language to include payments to farm fuel users who purchase kerosene, propane, or natural gas in a remittance program administered by the Department of Licensing.

Committee members raised practical concerns about locating exempt fuels in the retail supply chain and differences among fuels such as propane, kerosene and natural gas. One senator said they would vote against final passage today but that the committee would continue working on the details; the record shows the amendment was adopted by voice vote and the bill, as amended, received a due-pass recommendation to the Ways and Means Committee "subject to signatures." No roll-call tally was provided in the transcript.

Action taken was limited to committee amendment adoption and a committee recommendation; the bill will require further floor action and any necessary appropriations to implement Commerce-related provisions if those are restored in later versions.