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Washington state budget could include $10 million to help reopen Intalco in Whatcom County

More than $10 million is earmarked in a state Senate supplemental budget plan to restart the Alcoa Intalco Works aluminum smelter west of Ferndale, and make it more efficient with less pollution, members of Whatcom County’s 42nd District legislative delegation said.

State Rep. Sharon Shewmake, D-Bellingham, told The Bellingham Herald on Wednesday, Feb. 16, that the money was included in Gov. Jay Inslee’s initial budget presentation last summer, and that House and Senate leaders have been working with state labor leaders and industry officials to finalize a plan.

Shewmake said that she and her 42nd District colleague, Rep. Alicia Rule, D-Blaine, have been part of the talks about funding to restart Intalco.

“Good-paying, family-wage jobs are worth fighting for and a priority for me in representing Whatcom County. That’s why I am so proud of this work. I am fully committed to ensuring this deal gets across the finish line. Our families deserve an opportunity to make a solid living wage,” Rule told The Herald in a text message.

Discussions are underway between the Bonneville Power Administration and Blue Wolf Capital Partners LLC about supplying power to the curtailed Intalco Works facility, according to previous Bellingham Herald reporting.

But it was unclear whether an agreement can be reached to reopen the plant.

“Blue Wolf and labor partners met with myself and Rule in November and we were supportive of including $10 million for clean energy account in the capital budget,” Shewmake said in a text message.

“The last hurdle is the agreement with BPA,” she said.

State Sen. Simon Sefzik, R-Ferndale, said in statement Wednesday that he was optimistic that funds for Intalco will be included in the final budget.

Resuming production at the idled plant would provide 700 high-wage jobs that were lost in summer 2020, Sefzik said.

“(Whatcom County) did very well in the Senate’s capital budget proposal. I am especially excited about the $10 million appropriation for Intalco. Restart is looking more and more like reality,” Sefzik said in the emailed statement.

“Intalco restart will have a ripple effect throughout our local and state economy, as general prosperity leads to further job creation,” Sefzik said.

Joe Kendo, government affairs director of the Washington State Labor Council, told The Herald that Rule, Shewmake and Whatcom County Executive Satpal Sidhu have been pushing for state funds to help restart the Intalco plant.

“We’re extremely excited about this. What a great win this is for Whatcom County,” Kendo said. “I truly cannot understate (Sidhu’s) commitment to this as well.”

The Senate’s bipartisan supplemental capital budget proposal released Wednesday would make large investments in areas such as housing, broadband access, environmental issues and school seismic safety, according to McClatchy reporting.

This year’s proposal includes $94.8 million in spending from available bond capacity, $561.6 million from American Rescue Plan Act State Fiscal Recovery Funds, and $290.3 million from federal Infrastructure Investment and Jobs Act grants.

Supplemental budgets make spending adjustments in the “mid-biennium,” or halfway through the 2021-2023 budget cycle.

Sefzik said the $10 million from the state would fund efficiency upgrades and pollution-reduction measures.

“(It would make) Intalco one of just two aluminum plants nationally that produce ‘green aluminum,’” Sefzik said.

“Intalco already is one of the cleanest aluminum plants around, because it does not rely on coal-fired electricity. The current plan builds on that, with upgrades that would reduce Intalco’s greenhouse-gas footprint by 90 percent. Intalco deserves a future, and the Legislature is helping make the dream come true,” he said.

Sefzik was appointed by the Whatcom County Council in January to serve the final months of the late Sen. Doug Ericksen’s term.

He and Shewmake — along with Ben Elenbaas of Custer and Russ Dzialo of Lynden — have said they intend to file in May to seek the seat in the Aug. 2 primary.

This story was originally published February 16, 2022 at 5:02 PM.

Robert Mittendorf
The Bellingham Herald
Robert Mittendorf covers civic issues, weather, traffic and how people are coping with the high cost of housing for The Bellingham Herald. A journalist since 1984, he also served 22 years as a volunteer firefighter for South Whatcom Fire Authority before retiring in 2025.
Dave Gallagher
The Bellingham Herald
Dave Gallagher has covered the Whatcom County business community since 1998. Retail, real estate, jobs and port redevelopment are among the topics he covers.
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