Association of Washington Business – Updated Weekly

Highest prices of 2024: The results of Washington’s latest carbon credit auction show prices increasing after a ballot measure to overturn the program failed.

• Carbon allowances offered in the auction on Dec. 4 sold for $40.26 each, about 35% higher than the $29.88 sale price in the September auction.

Time to act: The surge in prices marks a return to the higher prices seen in 2023, emphasizing the need for continued revision to the state’s Climate Commitment Act and carbon pricing program.

“The program as it exists today is too volatile and unpredictable,” said AWB President Kris Johnson. “If changes aren’t made, we expect to see continued price swings and a return to the kind of extreme spikes we saw in the summer of 2023, only with even higher prices.”

Making changes: AWB will advocate for steps to improve price stability, including increasing the number of carbon credits available, in the upcoming legislative session.

Get in touch: Contact AWB Government Affairs Director Peter Godlewski to learn more and get involved.

Going northward: The latest edition of Washington Business magazine features stories on two AWB-led trips to Canada, a report on the state’s aerospace industry, 10th anniversary of the Grassroots Alliance, and more. A print copy will be mailed to members soon.

• AWB’s 2024 trade mission took a bipartisan group of legislators and business leaders to Canada to strengthen connections around trade, energy, housing, agriculture and more.

• In a study tour led by the AWB Institute, employers and lawmakers traveled to Toronto and Ottawa to learn about Canada’s $10-per-day child care system.

• The modernization of the Columbia River Treaty between the United States and Canada is expected to help meet regional power demand and benefit agriculture and cargo shipments.

Departing lawmaker shares perspective: State Sen. Andy Billig, D-Spokane, reflects on his 14 years in the Legislature and six as Senate Majority Leader as he prepares to leave the Legislature. Read the interview.

Read more: The full edition is available online.

Legal wrangling: Both supporters and opponents have filed lawsuits over a voter-approved ballot measure that protects natural gas access.

• Initiative 2066, which was endorsed by AWB, rolls back new building code rules that raised barriers for consumers to access natural gas. Washington voters approved the measure by 51.7% in the November election.

Call to adjust the codes: The Building Industry Association of Washington, the sponsor of I-2066, filed suit on Dec. 6 to demand the State Building Code Council modify the energy code to comply with the voter-approved changes.

Second lawsuit: A coalition that includes King County, the city of Seattle and environmental groups sued last week to block the initiative from being implemented, contending the measure is unconstitutional and misled voters.

What’s next: The building industry group expects the state to respond to its complaint in early 2025. Meanwhile, a hearing on the opponents’ constitutional challenge is expected early next year, a matter that may ultimately be settled by the state Supreme Court.

New governor: Incoming governor Bob Ferguson will speak to AWB members at a lunch keynote during AWB’s 2025 Legislative Day & Hill Climb Feb. 5 in Olympia.

• Seating is limited and 240 seats will sell out fast, so register now to guarantee your spot for Gov. Ferguson’s first appearance before the business community as the newly elected Washington governor.

Connect with lawmakers: This members-only event will also include issue-area meetings with key lawmakers on a wide range of policy issues, plus an evening networking reception.

Early-bird pricing: Register by Dec. 31 before prices go up. Space is limited, so register early.

Predictable crisis: After a multi-billion-dollar budget surplus during the pandemic, state lawmakers are now facing a projected deficit of $10-12 billion over the next four years. This crisis is the result of overspending, not a drop in revenue.

"We were concerned that we might land in exactly the spot where we have landed today," AWB President Kris Johnson writes in his latest newspaper column.

Spending increases: Lawmakers increased spending by 16% in the 2023-2025 biennium when revenues were only expected to rise by 3%. They are now looking at cuts and tax increases to fill the budget gap.

Tax hikes on the table: In the 2025 legislative session, AWB expects lawmakers to propose an array of potential tax hikes, including a new payroll tax, that would, if approved, be the largest tax increase in state history.

Time for fiscal discipline: With Washington already a high-cost state for employers, AWB is urging lawmakers to push pause on spending while they get the state’s financial house in order.

Learn more: Join AWB via Zoom at 10 a.m. Tuesday for a tax and fiscal policy discussion.

Going out with a bang: As we close out our year-long celebration of AWB’s 120th birthday, take a look at the milestones from our 12th decade:

• AWB forms the Grassroots Alliance, now made up of more than 100 chambers statewide

• AWB embarked on its first Manufacturing Week bus tour, now in its 8th year

• As the world shut down for the pandemic, AWB ramped up its efforts to advocate and support employers

• And more

Full timeline: From AWB’s founding in 1904 as the Citizen’s Alliance to present day, explore all 12 decades of AWB’s history.

U.S. inflation ticked up last month

Consumer prices rose 2.7% in November from a year ago, largely driven by pricier used cars, hotel rooms and groceries. From October to November, prices climbed 0.3%, the largest monthly increase since April.

Federal Reserve officials will consider the data as they meet this week to decide on interest rates. The Associated Press reports:

The relatively mild November increase won’t likely be enough to discourage the officials from cutting their key rate by a quarter-point.

World Cup expected to generate nearly $1 billion for Seattle area

The 2026 FIFA World Cup is expected to generate at least $929 million in economic impact for King County, according to preliminary projections from Visit Seattle.

Seattle’s Lumen Field will host six World Cup games between June and July 2026. The projection includes more than $100 million in direct state and local tax revenue and anticipates 20,762 full-time and part-time jobs will be supported.

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Deborah Krishnadasan appointed new 26th District senator

Pierce County Council and Kitsap County commissioners voted last week to appoint Deborah Krishnadasan, a Democrat and education leader from Gig Harbor, to a fill a vacancy in the 26th Legislative District.

Krishnadasan will replace former state Sen. Emily Randall, who is newly elected to Congress. The 26th district Senate seat will be on the ballot in a special election next November, and the winner will serve through 2026.

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Replacement picked for longtime Washington senator

Democratic state Rep. Tina Orwall will succeed Sen. Karen Keiser as she retires from the Legislature after more than 30 years. The King County Council appointed Orwall last week to the Senate seat representing the 33rd Legislative District.

The council also appointed Democrat Edwin Obras, deputy division director at the City of Seattle’s Human Services Department, to fill Orwall’s seat in the state House of Representatives.

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Alaska Airlines to add nonstop flights from Seattle to Tokyo, Seoul

Alaska Airlines plans to begin offering nonstop flights from Seattle to Tokyo in May and Seoul, South Korea, in October. The new cross-Pacific flights are made possible through Alaska’s merger with Hawaiian Airlines, which gave it access to long-haul widebody airplanes.

Alaska Airlines aims to offer at least 12 nonstop global destinations with long-haul widebody aircraft from Seattle by 2030.

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Pear growers spread the word about "forgotten fruit” after worst harvest in decades

After a tough harvest season, Washington’s pear industry is strategizing ways to get more households to try the fruit. The 2024 pear harvest in the Pacific Northwest was the smallest in 40 years, largely due to pollination issues.

At the Washington State Tree Fruit Association’s annual meeting in Yakima, Pear Bureau Northwest CEO CarrieAnn Arias shared ideas for marketing and promoting pears.

“In my opinion, pears have been forgotten … they are an afterthought after apples and cherries,” she said.

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New WA apple will be called Sunflare

The wait is over. Washington’s newest apple is called Sunflare, a name chosen from more than 15,000 entries in a naming contest, Washington State University announced last week.

The winning name was submitted by a Centralia resident, who won a box of Sunflare apples and WSU-themed prizes. A cross between a Honeycrisp and Pink Lady, the Sunflare apple is expected to reach grocery stores in 2029.

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Industry leaders to serve on CHIPS and Science Act working group

The Washington State Commerce Department has announced 11 members of a new statewide group to help Washington secure current and future grant opportunities from the federal CHIPS and Science Act.

Members include the Pacific Northwest National Laboratory, Heritage University and Columbia River Economic Development Council. The group’s immediate focus will be on the National Advanced Packaging Manufacturing Program, one of the initiatives aimed at boosting domestic semiconductor manufacturing.

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Fast Facts resumes in 2025

There will be no Fast Facts emails on Dec. 23 and Dec. 30. Check your inboxes on Dec. 23 for a year-in-review email, highlighting AWB’s biggest milestones of 2024. Fast Facts will return on Jan. 6.

Budget talk: Join AWB via Zoom at 10 a.m. Tuesday to learn about the state’s projected $10 to $12 billion budget deficit and what it means for employers, plus other timely tax and fiscal topics.

Expert insights: In this free webinar, hear from Washington Research Council analyst Emily Makings and AWB Government Affairs Director Max Martin.

Registration: Register now to receive the webinar link.

The forecast: From labor law to energy, transportation to health care and much more, AWB’s policy experts will lay out their forecast for the 2025 legislative session on Jan. 8 during the Legislative Session Preview Webinar.

• Sign up now for the 1-hour webinar beginning at 10 a.m. with AWB’s Government Affairs Team.

“I looked at the picture of the apple for a long time, fantasizing what it was going to taste like. It was a real eye-catcher. I saw a nice relationship between the colors and the name. And the sun has everything to do with the growth of the product.” ~ Ryan Escarcega, a chef and foodservice salesperson from Centralia, who submitted the winning name Sunflare in a contest to name Washington’s newest apple.