Committee Hears Bill to Create State Supply‑Chain Competitiveness Program for Ports

The committee heard Engrossed Senate Bill 5,649, which would create a Washington State Supply Chain Competitiveness Infrastructure Program to provide grants and loans to public ports and tribal ports with public operations. Martha Whaling, staff to the Technology, Economic Development and Veterans Committee, said the Department of Transportation would set priorities, performance metrics and evaluation criteria and would collaborate with multiple categories of supply‑chain stakeholders to develop the program.

Jennifer Harris presented the fiscal note and staffing estimates: WSDOT reported an estimated fiscal impact of about $300,000 in fiscal 2027 and roughly $560,000 ongoing (biennially) to staff the program with two full‑time equivalents to operate grant and revolving loan functions; overall program costs and grant amounts remain indeterminate and are subject to appropriations, and no funds were appropriated for the program in the Senate transportation budget in its current form.

Port interests testified in support. Eric Fitch, executive director of the Washington Public Ports Association, said the bill aims to address freight congestion and help ports remain competitive for federal funding, noting the legislation clarifies that projects eligible under the Freight Mobility Strategic Investment Board should not be double‑eligible for the new program. “56 49 is a bipartisan attempt to make progress on an issue that's impacting Washington's trade driven economy, freight congestion, and the efficient functioning of our supply chain,” Fitch said.

Adam Lemieux of the Port of Everett described local examples, including widening a corridor and removing overhead utilities that limit cargo dimensions, and said competitively awarded state funds could help ports compete for federal grants and reduce bottlenecks. Catherine Fraser of the Port of Port Angeles described a terminal renovation she estimated at more than $10,000,000 for a small port that lacks rail access and stressed a state match would make federal applications more competitive; she cited a recent example in which state dollars helped secure about $9,000,000 in federal funds.

Members asked about likely federal matches and why some agencies had not testified. Witnesses said the port infrastructure development grant (PIDP) can cover up to roughly 80% of project costs in certain communities, and Eric Fitch said agencies had been consulted though the bill is not in the governor's budget. Brandy De Laing, executive director of the Freight Mobility Strategic Investment Board, told the committee that many proposed projects do not meet FMSIB's statutory strategic‑corridor criteria but that the board welcomes participation in setting program priorities. “A lot of the projects that have been proposed under this program ... do not meet our statutory requirements,” De Laing said, while noting the board appreciates being part of the policy setting process.

The committee closed the public hearing on SB 5,649 with no vote. Staff reminded members of amendment and budget deadlines before the committee adjourned to caucus.