POSTED: Thursday, Feb. 25, 2010

Blaine, Bellingham differ on bill for water-quality funding

Local legislators dislike proposal

The Bellingham and Blaine city councils have weighed in on a state proposal that would raise hundreds of millions of dollars for water-quality projects.

And more local legislators have stated their opposition to the proposal.

Both councils expressed their views Monday, Feb. 22, with Bellingham supporting House Bill 3181 and companion legislation in the Senate.

Blaine council members opposed the measure, sort of. That's because Blaine's resolution opposed House Bill 1614, which has gone nowhere in the legislative session. That bill would have created a $1.50-a-barrel fee on petroleum products to help local governments pay for state- and federally mandated stormwater and other water-quality projects.

Instead, legislators and a coalition of environmental groups offered up HB 3181, which would increase a voter-created "hazardous substance tax" from 0.7 percent to 2 percent. The tax has not been increased since its creation in the late 1980s.

The increase is projected to raise about $225 million its first year, but some local officials are concerned because the bill would initially divert a significant portion - 69 percent the first year - to the state's general fund to close a $2.8 billion budget gap.

The tax applies to more than 8,000 substances sold in the state, with 80 to 85 percent of the revenue from petroleum products.

Because of the impact on local refineries, and the diversion of cash to the general fund, the Whatcom County Council has voted 6-1 to oppose the bill. Councilman Carl Weimer said he voted against the resolution because the council didn't hear from all sides. Councilman Ken Mann said he voted for the resolution largely due to the diversion of funds, not because money isn't needed for water-quality projects.

The Bellingham council's resolution includes a request to change the bill so all of the money goes to water projects. Councilman Jack Weiss, author of the resolution, said the state should help Bellingham taxpayers in not having to pay for all stormwater improvements.

"We need to go back to the people who are actually creating the materials that are polluting our bay, Puget Sound," he said.

Meanwhile, three local legislators say they'll vote against the measure.

State Rep. Doug Ericksen, R-Ferndale, held a telephone town hall on the proposed funding when it was a petroleum product barrel tax in 2009, and continues to oppose the legislation.

State Rep. Kelli Linville, D-Bellingham, has said in e-mails to constituents that if the bill makes it to the House floor, she would vote against it.

State Sen. Kevin Ranker, D-San Juan Island, said the bill's impact is too significant and he's concerned about the loss of local refinery jobs. He's working on an alternative funding source for water projects.