WPMA News / Spring 2026 
 63
State Report
2026 Legislative  
Session Recap
The 2026 session adjourned on March 12 after a fast-mov-
ing 60-day session that resulted in 267 bills passed and significant
policy changes impacting Washington’s business climate.
Key Highlights Impacting Our Industry
1. Introduction of a State Income Tax
One of the most consequential developments was passage of
a new tax on high-income earners:
• Applies to individuals and entities earning over $1 million
• Scheduled to take effect beginning in 2028
• Expected to face legal challenges and potential
ballot action
This marks a historic shift, as Washington has long been one
of the few states without an income tax. Washington has al-
ways promised a No Income Tax environment, as the Busi-
ness and Occupation Tax, a rare and regressive tax, was in
place instead. Some indicate this move by the Legislature is
unconstitutional and will likely be contested in WA Courts.
2. Transportation & Fuel Policy Changes
The Legislature adopted a $16.6 billion transportation
budget, continuing to rely heavily on fuel tax revenue while
making targeted adjustments:
• Delay of additional diesel tax increases
• Continued indexing of fuel taxes to inflation
• Increased aviation fuel taxes and related fees
At the same time, policies tied to the Climate Commitment
Act (CCA) continue to expand regulatory reach and cost
impacts across the fuel supply chain.
3. Expansion of Cap-and-Invest (CCA) Requirements
WOMA’s most significant legislative focus this session cen-
tered on proposed changes to Washington’s Cap-and-Invest
program under the Climate Commitment Act (CCA).
Second Substitute House Bill 2215 (2SHB 2215) represent-
ed one of the most impactful — and challenging — policy
battles for our industry this year.
The final legislation:
• Lowers emissions compliance thresholds, bringing more
fuel suppliers into the program and cross checks new
businesses taking advantage of a loophole in importation
of products
• Expands greenhouse gas reporting requirements
• Tightens regulatory oversight across the fuel supply chain
• Includes a targeted exemption for certain
distributor operations
• Exempts emissions related to lubricants beginning in 2027
This bill fundamentally reshapes participation in Washington’s
carbon market and increases compliance complexity for many in
our industry.
This was, without question, WOMA’s most difficult and hard-
fought issue of the 2026 session.
We want to extend our sincere appreciation to WOMA’s Board
of Directors, legislative committee members, and engaged
marketers across the state who stepped up — through testimony,
outreach, and direct engagement with lawmakers.
Your leadership, responsiveness, and willingness to stay at the
table during a complex and evolving negotiation made a mean-
ingful difference. While the final outcome presents ongoing
challenges, WOMA’s presence ensured that critical operational
realities were heard and considered throughout the process.
4. Budget Growth and Revenue Strategy
The Legislature adopted an $80.2 billion operating
budget, relying in part on new and expanded revenue
sources, including:
• The newly adopted income tax
• Changes to B&O tax exemptions
• Adjustments to existing tax structures
These decisions reflect continued upward pressure on taxa-
tion and regulatory policy in Washington State.
Launching WA Fuel Prices: 
A New Consumer Education Initiative
Every year, I ask my President one question … “What impact
do you want to leave on the Association that will have a lasting
effect?” Jarrod Franson has offered me a list, but his major focus
is improving our Social Media Presence and creating a consumer-
based website that help explain the ongoing battle each of you

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