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Committee hears marinas and DNR support switching aquatic-lease inflation index from PPI to CPI
Summary
House Bill 17-58 would change the inflation index used to adjust annual rent for water‑dependent aquatic land leases from the Producer Price Index to the Consumer Price Index. DNR and marina operators told the committee the change would smooth year‑to‑year volatility in rents and provide predictability for lessees and state revenue.
House Bill 17-58 drew in‑person and remote testimony from marina operators, the Department of Natural Resources and industry groups on Feb. 12, as the House Agriculture and Natural Resources Committee considered whether to change the inflation index used to set annual rent for water‑dependent aquatic land leases.
Lily Smith, staff to the committee, summarized that current statute uses the Producer Price Index (PPI) to adjust lease rents while aquatic easement rates are adjusted under the Consumer Price Index (CPI). The bill would replace the PPI with the CPI for the annual inflation adjustment on water dependent use leases.
Thomas Gorman, aquatic resources division manager at DNR, testified the measure would “greatly smooth the inflation rate” that DNR applies annually. He said PPI volatility has produced swings “from as much as negative 8% all the way up to 16%,” compared with the CPI’s narrower historic range, and that the bill does not change initial rent setting or four‑year reevaluation procedures — it affects only the annual inflation adjustment between valuations.
Marina operators, represented by the Northwest Marine Trade Association and individual marina managers, also supported the bill. Taryn Todd, marina manager at Foss Harbor Marina in Tacoma, said a May 2024 PPI‑driven increase produced a 16% jump in her lease rate “leaving our team only a few weeks to try to adjust our budget for the year.” She and Dwight Jones, who manages multiple marinas in Puget Sound, said switching to CPI will provide predictability for marinas and more stable revenue for DNR.
The committee clarified a typographical error in the staff summary that briefly referred to a “commodity price index”; staff confirmed the correct index is the Consumer Price Index.
Ending: DNR and industry witnesses urged adoption to reduce year‑to‑year rent volatility for lessees and make budgeting and revenue projections more stable. A fiscal note is available in the committee bill packet.
