SB 5949 — Concerning the capital budget.

$50,000,000 Prior Biennia (Expenditures).

$200,000,000$0 TOTAL.

$250,000,000$350,000 Sec.

2023 c 474 s 1011 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF COMMERCE Pacific Tower Capital Improvements (40000287) Appropriation:

State Building Construction Account — State.

(($6,464,000)) $6,587,000 Prior Biennia (Expenditures).

$0 Future Biennia (Projected Costs).

$6,061,000 TOTAL.

(($12,525,000)) $12,648,000 Sec.

1003.

FOR THE DEPARTMENT OF COMMERCE p.2023-25 Broadband Infrastructure Federal Match Projects (40000290) The appropriations in this section are subject to the following conditions and limitations:

4(1)(a) ESSB$50,000,000 5949of 2023-25the Broadbandstate Infrastructurebuilding Federalconstruction Matchaccount Projects— (40000290)state Theappropriation appropriationsand $11,390,000 of the public works assistance account— state appropriation in this section ((is)) are subjectprovided solely as match for federal authority allocated under this section and section 7017 of this act for the statewide broadband office to administer the followingbroadband conditionsequity, access, and limitations:deployment state grants program in section 60102 of P.L.

(1)(a) $50,000,000 of the state building construction account— state appropriation in this section is provided solely as match for federal authority allocated under this section and section 7017 of this act for the statewide broadband office to administer the broadband equity, access, and deployment state grants program in section 60102 of P.L.

Expenditure of the amountamounts in this subsection is((is)) are contingent on the receipt of this grant funding.

(3) The statewide broadband office must include, in the five-year action plan developed using initial planning funds from the broadband equity,p. access, and deployment program funded under P.L.

2 SB 5949 equity, access, and deployment program funded under P.L.

and cost-effective access to poles, conduits, easements, and rights- p.of-way.

5 ESSB 5949 of-way.

(4) $300,000 of the general fund—federalfund — federal appropriation provided in this section is for a staff position dedicated to advising the statewide broadband office on the availability and feasibility of deploying new and emerging technologies in broadband internet service.

(($150,000,000)) $245,560,000 StatePublic BuildingWorks ConstructionAssistance Account ——State. State.

$11,390,000 State Building Construction Account — State.

(($200,000,000)) $295,560,000$306,950,000 Prior Biennia (Expenditures).

(($150,000,000))$150,000,000 $1,132,194,000 TOTAL.

(($350,000,000)) $1,427,754,000$456,950,000 Sec.NEW SECTION.

Sec.

1003.

A new section is added to 2023 c 474 (uncodified) to read as follows:

FOR THE DEPARTMENT OF COMMERCE Crisis Stabilization Facility-Trueblood Phase 3 (40000601) Appropriation:

State Building Construction Account — State.

$5,000,000 Prior Biennia (Expenditures).

$0 Future Biennia (Projected Costs).

$5,000,000 TOTAL.

$10,000,000 p.

3 SB 5949 NEW SECTION.

Sec.

2023A cnew 474section sis 1017added (uncodified)to is2023 amendedc 474 (uncodified) to read as follows:

FOR THE DEPARTMENT OF COMMERCE 2023-25Communities Cleanof EnergyConcern Fund(40000603) Program (40000294) The appropriationappropriations in this section isare subject to the following conditions and limitations:

(1)(a)(1) $500,000The ofdepartment shall not expend the appropriation in this section isunless providedand solelyuntil for the departmentnonstate share of project costs have been either expended or firmly committed, or both, in an amount sufficient to convenecomplete the project or a workdistinct groupphase to:of the project that is useable to the public for the purpose intended by the legislature.

(i)This Analyzerequirement thedoes financialnot investmentsapply requiredto forprojects ownerswhere ofa tiershare 1of covered buildings to comply with the stateappropriation energyis performancefor standarddesign undercosts RCWonly. 19.27A.210;

and(2) (ii)Prior Maketo recommendationsreceiving tofunds, project recipients must demonstrate that the legislatureproject tosite assistis buildingunder ownerscontrol infor attaininga compliance,minimum whichof must10 include,years, buteither arethrough notownership limitedor to:a long-term lease.

(A)This Identifyingrequirement energydoes efficiencynot investmentsapply to appropriations for preconstruction activities or otherappropriations strategiesin andwhich relatedthe timelinessole forpurpose increasingis energyto efficiencypurchase inreal theproperty buildingsthat sector;does not include a construction or renovation component.

(3) Projects funded in this section may be required to comply with Washington's high performance building standards under chapter 39.35D RCW.

(4) Project funds are available on a reimbursement basis only and may not be advanced under any circumstances.

(5) In contracts for grants authorized under this section, the department shall include provisions that require that capital improvements be held by the grantee for a specified period of time appropriate to the amount of the grant and that facilities be used for the express purpose of the grant.

If the grantee is found to be out of compliance with provisions of the contract, the grantee shall repay to the state general fund the principal amount of the grant plus interest calculated at the rate of interest on state of Washington general obligation bonds issued most closely to the date of authorization of the grant.

(6) Projects funded in this section, including those that are owned and operated by nonprofit organizations, are generally required to pay state prevailing wages.

(7) The department must comply with the requirements set forth in executive order 21-02 and must consult with the department of archaeology and historic preservation and affected tribes on the p.

4 SB 5949 potential effects of these projects on cultural resources and historic properties.

Consultation with the department of archaeology and historic preservation and affected tribes must be initiated before project funds are made available.

(8) The appropriation in this section is provided solely for the following list of projects:

Addis Village (Seattle) .

$944,000 African Diaspora Cultural Anchor Village (SeaTac).

$250,000 Asia Pacific Cultural Center - Facility (Tacoma).

$2,000,000 Bryant Manor Redevelopment - Phase II (Seattle).

$250,000 FHPM Childcare Project (Bremerton).

$200,000 FHPM Kitsap Way Village (Bremerton).

$200,000 Monterey Lofts Renovation - Phase 2 (Seattle).

$987,000 Nuwe Reis Village at Barker Creek (Bremerton).

$2,953,000 Plaza Intramuros Housing Project (Lynnwood).

$500,000 PRWA Infrastructure Improvement Project (Rosalia).

$267,000 Rainier Valley Homeownership Initiative (Seattle).

$500,000 Seattle Indian Services Commission (Seattle).

$300,000 Seattle Tibetan Community Center (Seattle).

$1,022,000 United Indians All Tribes Foundation (Seattle).

$56,000 Appropriation:

State Building Construction Account — State.

$10,429,000 Prior Biennia (Expenditures).

$0 Future Biennia (Projected Costs).

$0 TOTAL.

$10,429,000 NEW SECTION.

Sec.

1005.

A new section is added to 2023 c 474 (uncodified) to read as follows:

FOR THE DEPARTMENT OF COMMERCE Green Jobs and Infrastructure Catalytic Funds (40000604) The appropriation in this section is subject to the following conditions and limitations:

(1) The appropriation in this section is provided solely for grants to eligible entities that help mitigate and reverse the effects of climate change, help communities meet their energy and climate change regulatory requirements, bring increased federal and private investment to the state, help develop the advanced workforce of the future, and ensure Washington state maintains or grows its position as a world leader in developing the projects and processes p.

5 SB 5949 that are used to fight climate change globally.

Eligible activities under this section include, but are not limited to, planning predevelopment, design, engineering, and construction of clean technology projects.

(2) Entities eligible for grants under this section include, but are not limited to, local governments, federally recognized tribal governments and tribes' contracted service providers, public and private utilities, ports, associate development organizations, for- profit entities, academic and research institutions, nonprofit organizations, and state agencies.

(3) Projects eligible for funding must be physically located in Washington state.

Eligible projects must be consistent with the state energy strategy adopted under chapter 43.21F RCW and clean energy policies under chapter 19.405 RCW.

Projects must further the goals of the climate commitment act as described in RCW 70A.65.260(1)(j).

(4) The department must consider equity and environmental justice when developing the program structures and opportunities for applicant participation and must follow principles established in its community engagement plan adopted under RCW 70A.02.050.

(5) Except for match funds allocated in subsection (7) of this section, when soliciting and evaluating grant application proposals, awarding contracts, and monitoring projects under this section, the department must:

(a) Use competitive processes to select all projects, except as otherwise noted in this section.

The department must design a competitive process to allow provision of grant award to projects in a timely manner and consistent with the project timeline.

Applications must be accepted on a rolling basis, and final determination must be made by the department;

(b) Ensure compliance with all applicable laws related to the project selection process, project monitoring, and contracting;

and (c) Prioritize projects that leverage the greatest amount of matching funds, such as local levy funding or private investment in advanced manufacturing capability.

(6) Project applicants must disclose all sources of public funding invested in a project.

Grant contracts must provide that if, after a grant has been awarded, the department finds that a grantee has violated chapter 42.52 RCW, either in procuring or performing under the grant, the department in its sole discretion may terminate the grant funding by written notice, and that, if the grant is p.

6 SB 5949 terminated, the department will reserve its right to pursue all available remedies under law to address the violation.

(7) $80,000,000 of the appropriation in this section is provided solely for grants to be used as state match for competitive federal funding and for formula grants that require state match.

To the extent practicable, the department shall prioritize grants that provide benefit to vulnerable populations in overburdened communities, with a goal of directing at least 20 percent of funds to this purpose.

(8) $50,000,000 of the appropriation in this section is provided solely for grants to projects that demonstrate high-wage, clean job creation in Washington, provide risk reduction for investments in public and private infrastructure to enhance industrial lands in order to increase a community's capacity for clean manufacturing, or provide investments in workforce development to attract and train the workforce required to grow the clean energy economy.

(9) $6,500,000 of the appropriation in this section is provided solely for the department to support access to and to flexibly administer the program.

The department may use these funds to hire full-time equivalent positions within the department, as well as contract for additional capacity and subject matter expertise.

(10) The department must strive to allocate all of the amounts appropriated in this section within the 2023-2025 fiscal biennium in the manner prescribed in each subsection.

However, no sooner than January 1, 2025, if upon review of applications the department determines there are not adequate suitable projects in a category, the department may reallocate funding among the purposes of subsections (7) and (8) of this section.

Beginning January 1, 2025, the department must provide quarterly notice of any funding reallocations to the governor and appropriate fiscal committees of the legislature.

Appropriation:

Climate Commitment Account — State.

$136,500,000 Prior Biennia (Expenditures).

$0 Future Biennia (Projected Costs).

$0 TOTAL.

$136,500,000 NEW SECTION.

Sec.

1006.

A new section is added to 2023 c 474 (uncodified) to read as follows:

67 ESSBSB 5949 (B)FOR ProvidingTHE aDEPARTMENT cost-benefitOF analysisCOMMERCE ofClean options,Energy includingCommunity energyDecarbonization efficiency,(40000606) toThe meetappropriation thein goalthis ofsection reducingis greenhousesubject gasto emissionsthe fromfollowing theconditions buildingsand sector;limitations:

and(1) (C)The Recommendationsappropriation in this section is provided solely for the department to balanceadminister financialnoncompetitive investmentsgrants whileto maximizingnonprofit cleanorganizations, energylocal benefitsgovernments, federally recognized tribal governments and tribal entities, state agencies, housing authorities, ports, transit agencies, research organizations, and eligible third- party administrators for theplanning, state,design, includingand statutoryimplementation changesof capital projects and clean energy technologies that mayreduce begreenhouse necessarygas foremissions thisin purpose.vulnerable, overburdened, and tribal communities identified by the department.

(b) The workdepartment groupmust membershipprioritize convenedgrants underproviding thismeaningful sectionbenefit mustto include,vulnerable butpopulations isin notoverburdened limitedcommunities to:as defined under RCW 70A.02.010.

One(2) representativeEligible uses of thegrant officefunds ofinclude, but are not limited to, planning for sustainable communities and predesign work, energy efficiency improvements, renewable energy generation, increasing the superintendentsupply of publicaffordable, instruction;energy efficient housing, developing resilient and sustainable infrastructure systems, zero-emission, active mobility, and micromobility transportation infrastructure, education and engagement, and workforce development.

one(3) representativeUp to five percent of athe K-12appropriation maintenancein andthis operationsection administratorsis association;for the department to administer the grant program.

oneAdministration representativeincludes, ofbut eachis ofnot thelimited state'sto, publicidentifying four-yeareligible institutionscommunities ofand higherthird-party education;administrators, providing technical assistance, managing contracts, reporting, and providing planning and implementation assistance.

one(4) representativeFor the purposes of thethis statesection, board"eligible forthird-party communityadministrators" means entities that have sufficient expertise and technicalrelationships colleges;within the identified community to help plan for, design, or implement capital projects that reduce greenhouse gases or develop clean energy resources for the community.

one representative of the department of social and health services;

one representative of the department of corrections;

one representative of the department of enterprise services;

one representative of a health care organization;

one representative from a local government;

one representative from an organization representing privately owned tier 1 covered buildings;

one representative from a business specializing in performance contracting for energy services;

one representative from a nonprofit specializing in clean energy;

and two representatives of a national association for industrial and office parks.

(c) The department must submit to the appropriate committees of the legislature:

(i) Analysis of financial investments as required by this section by December 15, 2023;

and (ii) A final report with recommendations as required by this section by September 1, 2024.

(2) Except as provided in subsections (1) and (13) of this section, the appropriation in this section is provided solely for competitive grants to eligible entities for predevelopment, design, and construction of projects that provide a public benefit through research, development, demonstration, or deployment of clean energy technologies that save energy and reduce energy costs, reduce harmful air emissions, or increase energy independence for the state.

Priority must be given to projects that benefit vulnerable populations and overburdened communities, including tribes.

(3) Entities eligible for grant funding under this section include local governments, federally recognized tribal governments p.

7 ESSB 5949 and tribes' contracted service providers, public and private utilities that serve retail customers in the state, for-profit entities, research institutions, nonprofit organizations, and state agencies.

(4) To be eligible, a project must be consistent with the state energy strategy adopted under chapter 43.21F RCW and policies under chapter 19.405 RCW.

To the extent practicable, the department must prioritize projects that build upon Washington's strengths in aerospace, maritime, information and communications technology, grid modernization, advanced materials, and decarbonizing the built environment.

(5) The department must invite stakeholders to participate in the design and implementation of grant programs funded under this section.

The department must consider equity and environmental justice when developing the program structure and opportunities for applicant participation.

(6) When soliciting and evaluating proposals, awarding contracts, and monitoring projects under this section, the department must:

(a) Ensure that competitive processes, rather than sole source contracting processes, are used to select all projects, except as otherwise noted in this section;

(b) Ensure that a public benefit results from the use of public funds through due diligence and monitoring of contracted projects, including ensuring compliance with all applicable laws related to the project selection process, project monitoring, and contracting;

and (c) Prioritize projects for funding that leverage the greatest amount of matching funds, such as local levy funding.

(7)(a) The department must require project applicants to:

(i) Disclose all sources of public funding invested in a project;

and (ii) Identify by name any former or current state of Washington employees employed by the applicant or its governing body in the 24 months preceding the application submittal.

The identification must include the person's separation date and job title or position held.

If the department determines that a conflict of interest or other violation of chapter 42.52 RCW exists, the application must be disqualified from further consideration.

(b) If, after a grant has been awarded, the department finds that a grantee has violated chapter 42.52 RCW, either in procuring or performing under the grant, the department in its sole discretion may p.

8 ESSB 5949 terminate the grant funding by written notice.

If the grant is terminated, the department must reserve its right to pursue all available remedies under law to address the violation.

(8) The department must specify the requirements in subsections (6) and (7) of this section in funding contracts entered into by the department under this section.

(9) $10,000,000 of the appropriation in this section is provided solely for grants to tribes for clean energy development projects.

Eligible uses of grant funding include planning, predesign, design, construction, project predevelopment, and deployment of clean energy projects that contribute to achieving the state's greenhouse gas emissions reduction goals and related policies.

The department must collaborate with tribes in the design and development of this grant program.

(10) $10,000,000 of the appropriation in this section is provided solely for state match for federal funding that aligns with subsection (2) of this section and accelerates meeting state clean energy and climate goals.

Funding may be used to match federal grants to the state or nonstate entities for clean energy research, development, and demonstration projects.

(11) (($12,000,000)) (a) $10,500,000 of the appropriation in the section is provided solely for grants for strategic research, development, and demonstration of new and emerging clean energy generation and storage technologies and climate change mitigation technologies, including greenhouse gas removal.

Grants awarded under this subsection must reduce reliance on fossil fuels, reduce risk of irregularities in power supply, offer opportunities for economic and job growth, and strengthen technology supply chains.

Grant funds are intended to catalyze diverse new technologies that change production, use, storage, and transportation of energy.

The department may provide funding to projects at various stages of readiness, including early-stage research, pilot and demonstration projects, and dual use projects that produce clean energy and additional benefits.

(b) $1,500,000 of the appropriation in this section is provided solely to support proof-of-concept development of biogenic carbon dioxide electrolysis, a chemical technology process that utilizes water, electricity, and biogenic CO2 as inputs, and produces carbon monoxide as an output to be utilized for the production or manufacture of sustainable aviation fuel.

p.

9 ESSB 5949 (12) $20,000,000 of the appropriation in this section is provided solely for grants for electrical grid integration and innovation projects.

To be eligible, a project must develop and demonstrate distributed energy resources, as defined in RCW 19.405.020, and nonwire alternatives that advance community resilience, support implementation of demand response and sustainable microgrids, improve integration of renewable energy and energy storage, and accelerate beneficial load integration and demand management for building electrification, equipment electrification, and electric vehicle charging.

(13) $7,500,000 of the appropriation in this section is provided solely to support regional energy analytics capability at Pacific Northwest national laboratory.

(14) The department must strive to allocate all of the amounts appropriated in this section within the 2023-2025 fiscal biennium in the manner prescribed in each subsection.

However, no sooner than January 1, 2024, if upon review of applications the department determines there are not adequate suitable projects in a category, the department may reallocate funding among the purposes of subsections (9) through (12) of this section.

Beginning January 1, 2024, the department must provide quarterly notice of any funding reallocations to the appropriate fiscal committees of the legislature.

$60,000,000$100,000,000 Prior Biennia (Expenditures).

$240,000,000$0 TOTAL.

$300,000,000$100,000,000 Sec.p.

1005.8 SB 5949 NEW SECTION.

2023 c 474 s 1020 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF COMMERCE 2023-25 Housing Trust Fund (40000295) The appropriations in this section are subject to the following conditions and limitations:

(1) (($163,663,000)) $188,816,000 of the state taxable building construction account — state appropriation ((is)) and $364,000 of the capital community assistance account — state appropriation are provided p.

10 ESSB 5949 solely for the new construction, acquisition, or rehabilitation of affordable housing projects that serve and benefit low-income and special needs populations including, but not limited to, people with chronic mental illness or behavioral health conditions, farmworkers, people who are homeless, and people in need of permanent supportive housing.

The department shall strive to invest at least 20 percent of the appropriation provided under this subsection with by and for organizations, as defined by the office of equity.

(2) (($25,000,000)) $36,500,000 of the state taxable building construction account — state appropriation ((is)) and $8,500,000 of the Washington housing trust account —state appropriation are provided solely for affordable housing projects that serve and benefit low- income people with developmental or intellectual disabilities.

The department must use a separate application form and evaluation criteria for applications under this subsection.

The department must coordinate with the department of social and health services regarding any needed supportive services and make efforts to enact the recommendations of the housing needs study for individuals with intellectual and developmental disabilities, as provided in section 1068(6), chapter 332, Laws of 2021.

(3) $100,000,000 of the state taxable building construction account— state appropriation is provided solely for the apple health and homes rapid permanent supportive housing program created in chapter 216, Laws of 2022.

Of the amounts provided in this subsection, $5,000,000 is provided solely for the St.

Agnes Haven project in Spokane.

(4) (($40,000,000)) $60,000,000 of the state building construction account— state appropriation is provided solely for awards to organizations eligible under RCW 43.185A.040 for the development of homeownership projects affordable to first-time low- income households throughout the state.

Projects serving homebuyers whose income is up to 80 percent of the area median income, adjusted for household size, for the county where the property is located are eligible to apply, except that projects located in rural areas of the state, as defined by the department, serving homebuyers whose income is up to 100 percent of the area median income, adjusted for household size, for the county where the property is located are eligible to apply.

Eligible activities include, but are not limited to, down payment assistance, closing costs, acquisition, p.

11 ESSB 5949 rehabilitation costs, and new construction.

Eligible organizations may include those that plan to provide housing to socially disadvantaged communities as defined in 13 C.F.R.

124.103.1007.

TheA departmentnew shallsection striveis added to invest2023 atc least474 50(uncodified) percentto ofread these funds with by and for organizations, as definedfollows: by the office of equity, and make efforts to enact the recommendations of the homeownership disparities work group created in section 128(100), chapter 297, Laws of 2022.

(5)FOR $25,000,000THE ofDEPARTMENT theOF stateCOMMERCE buildingPacific constructionTower accountCapital —Improvements stateFY24 appropriationSupplemental is(40000610) providedAppropriation: solely for affordable housing preservation projects, which may include, but are not limited to:

(a)State ProjectsBuilding preservingConstruction andAccount—State. extending the affordability commitment period for projects in the housing trust fund portfolio.

The$123,000 fundsPrior mayBiennia be(Expenditures). provided for major building improvements, preservation, and system replacements, necessary for the existing housing trust fund portfolio to maintain long-term viability.

The$0 departmentFuture mustBiennia require(Projected aCosts). capital needs assessment be provided prior to contract execution.

Funds$5,420,000 mayTOTAL. not be used to add or expand the capacity of the property.

When$5,543,000 allocatingNEW funds,SECTION. the department must prioritize buildings that are older than 15 years and that serve very low-income and extremely low-income populations.

(b)Sec. Projects preserving affordable multifamily housing at risk of losing its affordability due to expiration of use restrictions that otherwise require affordability including, but not limited to, United States department of agriculture funded multifamily housing.

The1008. department must prioritize projects that satisfy the goal of long- term preservation of Washington's affordable multifamily housing stock, particularly in rural areas of the state.

FundsA maynew besection usedis foradded acquisitionto or2023 forc acquisition474 and(uncodified) rehabilitation of properties to preserveread theas affordablefollows: housing units beyond their existing use restrictions and keep them in Washington's housing portfolio for a minimum of 40 years.

IfFOR aTHE capitalDEPARTMENT needsOF assessmentCOMMERCE is2025 required,Rapid theCapital departmentAcquisition must(40000612) workThe withappropriation thein applicant to ensure that this doessection notis createsubject an unnecessary impediment to rapidlythe accessingfollowing theseconditions funds.and limitations:

(c)(1) The$80,000,000 fundingof providedthe underappropriation in this subsectionsection (5) is notprovided subjectsolely for eligible organizations defined under RCW 43.185A.040 to theacquire, 90-dayrenovate, applicationand periodsprepare inreal RCWproperty 43.185.070for rapid conversion into enhanced emergency shelters, permanent supportive housing, transitional housing, permanent housing, youth housing, or 43.185A.050.shelter for extremely low-income people, as well as individuals, families, unaccompanied youth, and young people experiencing sheltered and unsheltered homelessness.

(d) The amount awarded under this subsection (5) may not be calculated in award limitations for other housing trust fund awards.

(6) (($4,000,000)) $16,000,000 of the state taxable building construction account —state appropriation is provided solely for a p.

12 ESSB 5949 grant to the northwest cooperative development center to provide subgrants for the acquisition and preservation of mobile or manufactured home communities.

Funding provided under this subsection may be used to acquire mobile or manufactured home communities for the purpose of avoiding household displacement due to sale or other transactions and ensuring preservation of housing affordability for low-income households for a minimum of 40 years.

(7) (($2,000,000)) $5,000,000 of the state taxable building construction account —state appropriation is provided solely for a grant to the northwest cooperative development center to provide subgrants to organizations that are "mobile home park cooperatives" or "manufactured housing cooperatives" under RCW 59.20.030 for completing capital improvement processes.

Subgrants provided under this subsection may be used solely for critical improvements, repairs, and infrastructure upgrades to promote the preservation of mobile or manufactured home communities as affordable housing.

The grantee must award subgrants based on needs relating to health, safety, and cost.

(8) (($40,337,000)) $57,937,000 of the state taxable building construction account — state appropriation ((is)) and $3,536,000 of the capital community assistance account — state appropriation are provided solely for the following list of projects:

African Diaspora Cultural Anchor Village (SeaTac).

$4,000,000 Cedar House.

$112,000 Generations Place Workforce Housing.

$1,600,000 Gravelly Lake Commons at LASA (Lakewood).

$500,000 Habitat for Humanity.

$6,000,000 KCR Mills Crossing Affordable Housing.

$2,000,000 ((Kenmore Supportive Housing (Kenmore).

$1,000,000)) Leavenworth Affordable Workforce Rental Housing (Leavenworth).

(($1,000,000)) $2,300,000 Lewis County Homeless Shelter (Chehalis).

$2,500,000 Lincoln District Family Housing (Tacoma).

$5,050,000 Mary's Place Shelter Replacement (Burien).

$6,000,000 Mount Zion Housing (Seattle).

$1,000,000 Multicultural Village Design (Kent).

$550,000 New Hope Family Housing (Seattle).

$325,000 Open Doors for Multicultural Families.

$5,000,000 Peninsula Community Health Housing (Bremerton).

$412,000 p.

13 ESSB 5949 Raymond Manor Low-Income Senior Housing.

$1,500,000 Redmond Supportive Housing.

$3,200,000 Saint Vincent de Paul Phase 1.

$1,000,000 Shiloh Baptist Church New Life Housing (Tacoma).

$1,000,000 Skyway Affordable Housing (Skyway).

$3,000,000 Tacoma/Pierce County Habitat Affordable Housing (Pierce County).

$14,000,000 The House of Bethlehem.

$424,000 (9) $10,000,000 of the state taxable building construction account— state appropriation in this section is provided solely for site improvements, acquisition, construction, and installation of transitional tiny homes or similar housing.

Awards may be made for noncode compliant structures and may be exempted from the 40-year affordability requirement under RCW 43.185A.060.

(10) In evaluating projects in this section, the department must give preference for applications based on some or all of the criteria in RCW 43.185.070(5).

(((10))) (11) The department shall strive to allocate at least 30 percent of the funds provided in this section to projects located in rural areas of the state, as defined by the department.

(((11))) (12) The department must strive to allocate all of the amounts appropriated in this section within the 2023-2025 fiscal biennium in the manner prescribed in each subsection.

However, if upon review of applications the department determines there are not adequate suitable projects in a category, the department may allocate funds to other affordable housing projects serving other low-income and special needs populations, provided those projects are located in an area with an identified need for the type of housing proposed.

(13)(a) During the 2023-2025 fiscal biennium, any unallocated funds provided in subsection (1) of this section may be used for rapid capital housing acquisition projects that provide an affordable housing and encampment resolution, serving and benefiting low-income and special needs populations.

(b) Rapid capital proposals must be from eligible organizations, as defined in RCW 43.185A.040, to acquire, renovate, and prepare real property for rapid conversion into enhanced emergency shelters, permanent supportive housing, transitional housing, permanent housing, or shelter for extremely low-income people, as well as individuals, families, unaccompanied youth, and young people p.

14 ESSB 5949 experiencing sheltered and unsheltered homelessness.

The(a) fundingAcquisition providedof undermultifamily thishousing subsection is nota subjectpriority, toand the 60-daydepartment applicationshall periodprioritize housing projects that rapidly move people experiencing unsheltered homelessness into housing, including, but not limited to, individuals living in RCWunsanctioned 43.185A.150.encampments, the public rights-of-way, or other public spaces.

(b) Amounts provided in this section may not be used for operating or maintenance costs, supportive services, or debt service.

(2) $5,000,000 of the appropriation in this section is provided solely for acquiring, building, site improvements, and installing transitional tiny homes or similar housing.

Awards may be made to noncode compliant structures and may be exempted from the 40-year affordability requirement under RCW 43.185A.060.

p.

9 SB 5949 (3) $15,000,000 of the appropriation in this section is provided solely for acquisition of manufactured homes for the purpose of preserving and creating new manufactured and mobile home communities.

The department must contract with the northwest cooperative development center—resident owned communities to preserve mobile home communities as nonprofits or coop run affordable housing projects that benefit households at or below 80 percent of the area median income.

The department, in collaboration with the contractor, must submit an interim report to the governor and the legislature by June 30, 2025, on the number of mobile home parks purchased and the demographics of the residents.

(4) When selecting housing projects funded in this section, the department shall balance the state's interest in quickly approving and financing projects, the degree to which the project will leverage other funds, the extent to which the project promotes racial equity, and the extent to which the project will promote priorities on a statewide basis, including in rural areas and in geographically diverse parts of the state.

(5) If the department finds a recipient to be out of compliance with the provisions of the contract, the recipient shall repay to the state general fund the principal amount of the award plus interest calculated at the rate of interest on state of Washington general obligation bonds issued on the date closest to the date of authorization of the award.

(6) The funding provided under this section is not subject to the 60-day application periods in RCW 43.185A.050.

(7) The department must strive to allocate all of the amounts appropriated in this section within the 2023-2025 fiscal biennium in the manner prescribed in each subsection.

However, if upon review of applications the department determines there are not adequate suitable projects in a category, the department may reallocate funding among the purposes of the other subsections of this section.

CapitalState CommunityBuilding AssistanceConstruction Account — State.

$3,900,000$100,000,000 StatePrior BuildingBiennia Construction(Expenditures). Account — State.

(($65,000,000)) $85,000,000 State Taxable Building Construction Account— State.

(($335,000,000)) $414,253,000 Washington Housing Trust Account —State.

$8,500,000 Subtotal Appropriation.

(($400,000,000)) $511,653,000 Prior Biennia (Expenditures).

(($1,600,000,000))$0 $1,960,612,000 TOTAL.

(($2,000,000,000))$100,000,000 $2,472,265,000p. Sec.

1006.10 SB 5949 NEW SECTION.

2023Sec. c 474 s 1021 (uncodified) is amended to read as follows:

FOR1009. THE DEPARTMENT OF COMMERCE 2023-25 Connecting Housing to Infrastructure (CHIP) (40000296) The appropriation in this section is subject to the following conditions and limitations:

(1)A Thenew appropriation in this section is providedadded solelyto for2023 grantsc or474 deferred(uncodified) loans to localread governments,as affordablefollows: housing project sponsors, and public utility districts or their contracted service providers for system development charges and utility improvements for mobile home park cooperatives and new affordable housing projects that serve and benefit low-income households.

LocalFOR governmentsTHE andDEPARTMENT publicOF utilityCOMMERCE districtsBEAD orBroadband theirEquity contracted service providers may also use funds to reimburse waived system development charges and impactAffordability feesGrants for(40000613) mobileThe homeappropriation parkin cooperativesthis andsection newis affordablesubject housingto projectsthe thatfollowing serveconditions and benefitlimitations: low-income p.

15The ESSBappropriation 5949in households.this section is provided solely for the statewide broadband office to administer the broadband equity, access, and deployment state grants program in section 60304 of P.L.

Where117-58 applicable,(infrastructure theinvestment extension must be consistent with the approved comprehensive plans under the growth management act and mustjobs beact). within the established boundaries of the urban growth area.

(2)Expenditure $37,202,000 of the stateamount buildingin constructionthis account—statesubsection appropriation is providedcontingent solelyon forthe grantsreceipt orof deferredthis loansgrant tofunding. ((local governments or public utilities)) applicants located within a jurisdiction that impose a sales and use tax under RCW 82.14.530(1) (a)(ii) or (b)(i)(B), 82.14.540, or 84.52.105.

(3)Appropriation: $20,000,000 of the state building construction account — state appropriation in this section is provided solely for grants to ((local governments or public utilities)) applicants located within:

(a)General AFund city— orFederal. county with a population of 150,000 or less;

and$5,000,000 (b)Prior ABiennia jurisdiction(Expenditures). that imposed a sales and use tax under RCW 82.14.530(1) (a)(ii) or (b)(i)(B).

(4)$0 $798,000Future ofBiennia the(Projected stateCosts). building construction account — state appropriation in this section is provided solely for the Habitat for Humanity Infrastructure Project in Kennewick and Walla Walla.

(5)$0 $2,000,000TOTAL. of the state building construction account — state appropriation in this section is provided solely for the Aviva Crossing Sanitary Sewer Upgrades Project (Tacoma).

(6)$5,000,000 ToNEW beSECTION. eligible for funding under this section, an applicant must demonstrate, at minimum:

(a)Sec. That ((affordable housing development)) construction will begin ((construction)) within 24 months of the grant or loan award;

and1010. (b) A strong probability of serving the original target group or income level for a period of at least 25 years.

(7)A Fornew purposessection ofis thisadded section,to the2023 followingc definitions474 apply.(uncodified) to read as follows:

(a)FOR "AffordableTHE housing"DEPARTMENT hasOF theCOMMERCE same2025 meaningLocal asand Community Project (40000614) The appropriations in RCWthis 43.185A.010.section are subject to the following conditions and limitations:

(b)(1) "Low-incomeThe household"department hasshall not expend the sameappropriation meaningin asthis section unless and until the nonstate share of project costs have been either expended or firmly committed, or both, in RCWan 43.185A.010.amount sufficient to complete the project or a distinct phase of the project that is useable to the public for the purpose intended by the legislature.

(c)This "Mobilerequirement homedoes parknot cooperative"apply hasto projects where a share of the sameappropriation meaningis asfor indesign RCWcosts 59.20.030.only.

(d)(2) "SystemPrior developmentto charges"receiving meansfunds, chargesproject forrecipients newmust drinkingdemonstrate water,that wastewater,the orproject stormwatersite connectionsis whenunder acontrol localfor governmenta orminimum publicof utility10 hasyears, waivedeither standardthrough feesownership normallyor applieda tolong-term developerslease. for connection charges on affordable housing projects.

This requirement does not apply to appropriations for preconstruction activities or appropriations in which the sole purpose is to purchase real property that does not include a construction or renovation component.

1611 ESSBSB 5949 (((d)))(3) (e)Projects "Utilityfunded improvements"in meansthis drinkingsection water,may wastewater,be orrequired stormwaterto utilitycomply improvements.with Washington's high performance building standards under chapter 39.35D RCW.

(4) Project funds are available on a reimbursement basis only and may not be advanced under any circumstances.

(5) In contracts for grants authorized under this section, the department shall include provisions that require that capital improvements be held by the grantee for a specified period of time appropriate to the amount of the grant and that facilities be used for the express purpose of the grant.

If the grantee is found to be out of compliance with provisions of the contract, the grantee shall repay to the state general fund the principal amount of the grant plus interest calculated at the rate of interest on state of Washington general obligation bonds issued most closely to the date of authorization of the grant.

(6) Projects funded in this section, including those that are owned and operated by nonprofit organizations, are generally required to pay state prevailing wages.

(7) The department must comply with the requirements set forth in executive order 21-02 and must consult with the department of archaeology and historic preservation and affected tribes on the potential effects of these projects on cultural resources and historic properties.

Consultation with the department of archaeology and historic preservation and affected tribes must be initiated before project funds are made available.

(8) The state building construction account — state appropriation in this section is provided solely for the following list of projects:

2026 FIFA World Cup (Seattle).

$10,000,000 Algae Carbon Sequestration and Regenerative Soils (Statewide).

$2,500,000 Goodwill Land Acquisition for Redevelopment (Seattle).

$3,000,000 Habitat for Humanity (Seattle) .

$2,000,000 Open Doors for Multicultural Families (Kent).

$5,000,000 Opioid Recovery and Care Access (Seattle).

$3,500,000 Prototype Electric Hydrofoil Ferry and Shoreside Infrastructure (Statewide).

$2,000,000 Seattle Storm Center (Seattle).

$1,000,000 Tristate Health Hospital (Clarkston).

$3,000,000 p.

12 SB 5949 (9) $3,250,000 of the natural climate solutions account—state appropriation in this section is provided solely for the following list of projects:

Carbon Sequestration Prairie Restoration (Tumwater).

$2,000,000 Silver Bay Logging Property Acquisition (Seattle).

$1,250,000 (10) $4,000,000 of the climate commitment account—state appropriation in this section is provided solely for the Nisqually Indian Tribe microgrid system.

State Building Construction Account—State.Account — State.

$60,000,000$32,000,000 PriorClimate BienniaCommitment (Expenditures).Account — State.

$4,000,000 Natural Climate Solutions Account —State.

$3,250,000 Subtotal Appropriation.

$39,250,000 Prior Biennia (Expenditures).

$240,000,000$0 TOTAL.

$300,000,000$39,250,000 Sec.NEW SECTION.

1007.Sec.

1011.

A new section is added to 2023 c 474 (uncodified) to read as follows:

FOR THE DEPARTMENT OF COMMERCE Housing for People with Intellectual & Developmental Disabilities (40000615) Appropriation:

Washington Housing Trust Account —State.

$4,500,000 Prior Biennia (Expenditures).

$0 Future Biennia (Projected Costs).

$0 TOTAL.

$4,500,000 NEW SECTION.

Sec.

1012.

A new section is added to 2023 c 474 (uncodified) to read as follows:

FOR THE DEPARTMENT OF COMMERCE 2023-25 Community Solar Resilience Hubs (40000620) The appropriation in this section is subject to the following conditions and limitations:

(1) The appropriation in this section is provided solely for grants to increase solar deployment and installation of battery storage in community buildings to enhance grid resiliency and provide backup power for critical needs, such as plug load and refrigeration p.

13 SB 5949 for medication, during outages, or to provide incentives to support electric utility demand response programs that include customer-sited solar and battery storage systems.

Eligible uses of the amounts provided in this section include, but are not limited to, planning and predevelopment work with vulnerable, highly impacted, and rural communities.

(2) For the purposes of this subsection "community buildings" means K-12 schools, community colleges, community centers, recreation centers, libraries, tribal buildings, state and local government buildings, and other publicly owned infrastructure.

Appropriation:

State Building Construction Account — State.

$74,000,000 Prior Biennia (Expenditures).

$0 Future Biennia (Projected Costs).

$0 TOTAL.

$74,000,000 NEW SECTION.

Sec.

1013.

A new section is added to 2023 c 474 (uncodified) to read as follows:

FOR THE DEPARTMENT OF COMMERCE 2023-25 Community Solar (40000621) The appropriation in this section is subject to the following conditions and limitations:

(1) The appropriation in this section is provided solely for a grant program to provide solar and battery storage community solar projects for public assistance organizations serving low-income communities.

Eligible uses of the amounts provided in this section include, but are not limited to, planning and predevelopment work with vulnerable, highly impacted, and rural communities.

(a) Grants are not to exceed 100 percent of the cost of the project, taking into account any federal tax credits or other federal or nonfederal grants or incentives that the project is benefiting from.

(b) Priority must be given to projects sited on "preferred sites" such as rooftops, structures, existing impervious surfaces, landfills, brownfields, previously developed sites, irrigation canals and ponds, storm water collection ponds, industrial areas, dual-use solar projects that ensure ongoing agricultural operations, and other sites that do not displace critical habitat or productive farmland.

p.

14 SB 5949 (2) For the purposes of this subsection "low-income" has the same meaning as provided in RCW 19.405.020 and "community solar project" means a solar energy system that:

Has a direct current nameplate capacity that is greater than 12 kilowatts but no greater than 1,000 kilowatts;

and has, at minimum, either two subscribers or one low- income service provider subscriber.

Appropriation:

State Building Construction Account — State.

$39,000,000 Prior Biennia (Expenditures).

$0 Future Biennia (Projected Costs).

$0 TOTAL.

$39,000,000 NEW SECTION.

Sec.

1014.

A new section is added to 2023 c 474 (uncodified) to read as follows:

FOR THE DEPARTMENT OF COMMERCE 2023-25 Community EV Charging (40000622) The appropriation in this section is subject to the following conditions and limitations:

(1) The appropriation in this section is provided solely for the development of community electric vehicle charging infrastructure.

(2) Funding provided in this section must be used for projects that provide a benefit to the public through development, demonstration, and deployment of clean energy technologies that save energy and reduce energy costs, reduce harmful air emissions, or increase energy independence for the state.

(3) Projects that receive funding under this section must be implemented by, or include partners from, one or more of the following:

Local governments, federally recognized tribal governments, or public and private electrical utilities that serve retail customers in the state.

(4) Grant funding must be used for level two or higher charging infrastructure and related costs including, but not limited to, construction and site improvements.

Projects may include a robust public and private outreach plan that includes engaging with affected parties in conjunction with the new electric vehicle infrastructure.

(5) The department must prioritize funding for projects in the following order:

(a) Multifamily housing;

(b) Publicly available charging at any location;

p.

15 SB 5949 (c) Schools and school districts;

(d) State and local government buildings and office buildings;

(e) All other eligible projects.

(6) The department must coordinate with other electrification programs, including projects developed by the department of transportation, to determine the most effective distribution of the systems.

The department must also collaborate with the interagency electric vehicle coordinating council established in RCW 43.392.030 to implement this section and must work to meet benchmarks established in chapter 182, Laws of 2022.

Appropriation:

State Building Construction Account — State.

$138,000,000 Prior Biennia (Expenditures).

$0 Future Biennia (Projected Costs).

$0 TOTAL.

$138,000,000 NEW SECTION.

Sec.

1015.

A new section is added to 2023 c 474 (uncodified) to read as follows:

FOR THE DEPARTMENT OF COMMERCE Opioid Treatment Facility Pool (40000623) The appropriation in this section is subject to the following conditions and limitations:

The appropriation in this section is provided solely for facility acquisition by a state agency for treatment of opioid use disorder.

Prior to a purchase, sale bid or offer, the department shall consult with the office of financial management for review and approval of the project and transfer of the property.

Appropriation:

State Building Construction Account — State.

$5,000,000 Prior Biennia (Expenditures).

$0 Future Biennia (Projected Costs).

$0 TOTAL.

$5,000,000 NEW SECTION.

Sec.

1016.

A new section is added to 2023 c 474 (uncodified) to read as follows:

FOR THE DEPARTMENT OF COMMERCE Opioid Treatment Expansion Grants (40000626) p.

16 SB 5949 The appropriation in this section is subject to the following conditions and limitations:

The appropriation in this section is provided solely for grants to community providers to increase opioid treatment program services and access.

Consideration must be given to programs that increase access to medication assisted opioid use disorder treatment, including methadone, to populations that are disproportionately impacted or in parts of the state with limited access to those treatment modalities.

Appropriation:

State Building Construction Account — State.

$5,000,000 Prior Biennia (Expenditures).

$0 Future Biennia (Projected Costs).

$0 TOTAL.

$5,000,000 NEW SECTION.

Sec.

1017.

A new section is added to 2023 c 474 (uncodified) to read as follows:

FOR THE DEPARTMENT OF COMMERCE BEAD Broadband Subgrantees Technical Assistance (40000628) Appropriation:

Public Works Assistance Account —State.

$2,500,000 Prior Biennia (Expenditures).

$0 Future Biennia (Projected Costs).

$0 TOTAL.

$2,500,000 NEW SECTION.

Sec.

1018.

A new section is added to 2023 c 474 (uncodified) to read as follows:

FOR THE DEPARTMENT OF COMMERCE Energy Efficiency Revolving Loan Fund Capitalization Program (40000629) The appropriation in this section is subject to the following conditions and limitations:

The appropriation in this section is provided solely as expenditure authority for grant funding received by the department for the energy efficiency revolving loan fund capitalization program in section 40502 of P.L.

117-58 (infrastructure investment and jobs act).

The department's expenditures under this section may not exceed the actual amount of grant funding awarded.

Appropriation:

p.

17 SB 5949 General Fund—Federal.

$1,869,000 Prior Biennia (Expenditures).

$0 Future Biennia (Projected Costs).

$0 TOTAL.

$1,869,000 Sec.

1019.

For purposes of this subsection (2), "rapid transit corridor" includes either one-half mile from light rail or commuter rail, or one-quarter mile from bus rapid transittransit. or other high-capacity bus service area.

(b) Produce at least ((100))100 80 units of housing;

and (c) Include a covenant on the property requiring at least 10 percent of total housing units in the project remain affordable for households with incomes at or below 60 percent of area median income p.

1718 ESSBSB 5949 (c) Include a covenant on the property requiring at least 10 percent of total housing units in the project remain affordable for households with incomes at or below 60 percent of area median income and at least 10 percent of total housing units in the project remain affordable for households with incomes at or below 80 percent of area median income for at least 99 years.

However, if upon review of applications the department determines there are not adequate suitable projects to receive awards, the department may allocate state funding to other p.affordable housing projects serving other low-income and special needs populations.

18p. ESSB 5949 affordable housing projects serving other low-income and special needs populations.

(9)19 OfSB the5949 amountsAppropriation: appropriated in this section, $2,100,000 from the state taxable building construction account—state appropriation and $2,100,000 from the general fund—private/local appropriation are provided solely for the Redmond Supportive Housing project.

Appropriation:General Fund—Private/Local.

General$25,000,000 FundState —Taxable Private/Local.Building Construction Account— State.

$25,000,000 State Taxable Building Construction Account — State.

1008.1020.

2023 c 474 s 1023 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF COMMERCE 2023-25 Behavioral Health Community Capacity Grants (40000299) The appropriation in this section is subject to the following conditions and limitations:

(1) The appropriation in this section is provided solely for the department to issue grants to community hospitals or other community providers to expand and establish new capacity for behavioral health services in communities.

The department must consult an advisory group consisting of representatives from the department of social and health services, the health care authority, one representative from a managed care organization, one representative from an accountable care organization, and one representative from the association of county human services.

Amounts provided in this section may be used for construction and equipment costs associated with establishment or preservation of the facilities.

The department may approve funding for the acquisition of a facility if the project will result in increased behavioral health capacity.

Amounts provided in this section may not be used for operating costs associated with the treatment of patients using these services.

p.

19 ESSB 5949 (2) In awarding funding for projects in subsection (5) of this section, the department must establish criteria for the issuance of the grants, which must include:

(a) Evidence that the application was developed in collaboration with one or more regional behavioral health entities that administer the purchasing of services;

(b) Evidence that the applicant has assessed and would meet gaps in geographical availability of behavioral health services in their region;

(c) Evidence that the applicant is able to meet applicable licensing and certification requirements in the facility that will be used to provide services;

(d) A commitment by applicants to serve persons who are publicly funded and persons detained for involuntary commitment under chapter 71.05 RCW;

(e) A commitment by the applicant to maintain and operate the beds or facility for a time period commensurate to the state investment, but for at least a 10-year period;

(f) The date upon which structural modifications or construction would begin and the anticipated date of completion of the project;

(g) A detailed estimate of the costs associated with opening the beds;

(h) A financial plan demonstrating the applicant's ability to maintain and operate the facility;

and (i) The applicant's commitment to work with local courts and prosecutors to ensure that prosecutors and courts in the area served by the hospital or facility will be available to conduct involuntary commitment hearings and proceedings under chapter 71.05 RCW.

(3) In awarding funding for projects in subsection (5) of this section, the department, in consultation with the advisory group established in subsection (1) of this section, must strive for geographic distribution and to allocate funding based on population and service needs of an area.

The department must consider current services available, anticipated services available based on projects underway, and the service delivery needs of an area.

(4) The department must prioritize projects that increase capacity in unserved and underserved areas of the state.

(5)(a) (($28,443,000)) $29,443,000 of the state building construction account — state appropriation in this section is provided solely for competitive community behavioral health grants to address p.