SHB 2006
In CommitteeHouse
Industrial land banks
Extending the deadline for a rural county collecting the sales and use tax for economic development purposes to designate industrial land banks under the growth management act.
This status may be delayed. See Action History below for the latest updates.
How does a bill become law?
- Introduced: The bill is filed and assigned a number.
- Committee: A subject-matter committee holds hearings, takes public testimony, and decides whether to advance the bill.
- Floor Vote: The full chamber (House or Senate) debates and votes on the bill.
- Opposite Chamber: The bill repeats the committee and floor vote process in the other chamber.
- Governor: The Governor reviews the bill and decides whether to sign or veto it.
- Signed: The bill has been signed into law.
AI Analysis
This bill extends the deadline for eligible rural counties to designate industrial land banks—pre-approved sites for large-scale manufacturing or industrial use—outside urban growth areas. It allows counties to plan for major industrial development in a structured way, with strict environmental, infrastructure, and land-use safeguards, to support economic development while protecting rural and resource lands.
- Allows eligible rural counties to designate up to two industrial land banks—pre-approved locations for large-scale industrial development—outside urban growth areas, if no suitable sites exist within urban areas.
- Uses a two-step process: (1) designating land bank areas in the county’s comprehensive plan, and (2) approving specific projects through a local master plan process.
- Requires strict safeguards, including buffers from rural areas, protection of critical areas (e.g., wetlands), infrastructure planning, and limits on non-industrial commercial uses (max 10% of floor area).
- Mandates public notice (30-day advance), environmental review at the programmatic level, and interlocal agreements with cities and service districts before master plan approval.
- Extends the deadline for rural counties with economic development sales taxes to designate land banks from December 31, 2016, to the county’s next periodic comprehensive plan review before December 31, 2027.
Who is affected
- Rural counties meeting eligibility criteria — Rural counties that meet specific population, unemployment, or geographic criteria (e.g., bordering another state or the Pacific Ocean) and have enacted a local sales tax for economic development may use this process to designate land for large-scale industrial projects outside urban growth areas.
- Industrial and manufacturing businesses — Major industrial and manufacturing businesses (e.g., natural resource processing, large-scale manufacturing) that require large parcels or locations near transportation corridors or resource lands may gain access to pre-approved development sites.
- Local governments and service providers — Local governments (cities, special purpose districts) must enter into interlocal agreements before master plan approval and may need to provide or fund infrastructure (e.g., roads, water, sewer) concurrently with development.
- Agricultural, forest, and mineral resource landowners — Farmers, forest landowners, and mineral resource operators may be affected if industrial development is sited near or adjacent to agricultural, forest, or mineral resource lands—requiring mitigation of impacts under the law.
Pro/Con Analysis
Stronger case for benefits
Potential Benefits (5)
The bill enables rural counties to proactively plan for large-scale industrial development outside urban growth areas, supporting job creation in sectors like manufacturing and natural resource processing—especially where no suitable sites exist within cities.
Business & EmploymentRef: RCW 36.70A.367(1), (2)Mandated environmental protections—including air/water quality review, buffers, and infrastructure impact fees—help prevent degradation of sensitive rural and resource lands, benefiting long-term ecological health and community well-being.
EnvironmentPeopleRef: RCW 36.70A.367(3)(e), (h)Interlocal agreements required before master plan approval ensure coordination with cities and service districts, potentially improving infrastructure planning and reducing duplication or unfunded mandates for local governments.
Local GovernmentPeopleRef: RCW 36.70A.367(3)(f)The requirement for transit-oriented planning and demand management in master plans may reduce traffic congestion and emissions by encouraging carpooling, transit, or remote work—benefiting commuters and the broader transportation network.
TransportationLean peopleRef: RCW 36.70A.367(3)(d)Allowing limited commercial/service uses (≤10% floor area) to support workers may improve quality of life and retention for industrial employees—though the cap prevents broader commercial sprawl.
HousingLean peopleRef: RCW 36.70A.367(3)(g)
Potential Concerns (5)
The bill permits industrial development outside urban growth areas, potentially increasing pressure on rural housing markets as workers and infrastructure expand into previously rural communities—though the 10% commercial cap and buffer requirements may mitigate some residential displacement.
HousingRef: RCW 36.70A.367(2)(a)Counties must provide or coordinate infrastructure (roads, water, sewer) concurrently with development, which may strain local budgets—especially in fiscally constrained rural counties—unless offset by new tax revenue or interlocal agreements.
Local GovernmentRef: RCW 36.70A.367(3)(c), (h)While buffers and mitigation for agricultural/forest/mineral lands are required, the programmatic-level environmental review (RCW 36.70A.367(2)(b)) may reduce site-specific scrutiny, potentially allowing cumulative impacts to go unaddressed in high-value resource areas.
EnvironmentRef: RCW 36.70A.367(3)(i), (j)The 10% cap on non-industrial commercial floor area restricts mixed-use development, limiting opportunities for small businesses (e.g., cafes, retail) to serve workers—potentially reducing local economic spillover and increasing reliance on distant services.
Business & EmploymentRef: RCW 36.70A.367(3)(g)Eligibility criteria exclude many rural counties (e.g., those without a sales tax for economic development, or not meeting population/unemployment thresholds), limiting the policy’s reach and potentially deepening regional disparities in development capacity.
Local GovernmentRef: RCW 36.70A.367(5)
Who Is Most Affected
Rural counties meeting eligibility criteria (e.g., high unemployment, bordering another state or the Pacific) gain new authority to plan for large-scale industrial development, potentially increasing tax revenue and job opportunities—but must absorb upfront infrastructure costs and planning burdens.
Large manufacturing and natural resource processing firms gain access to pre-approved, large-footprint sites outside urban constraints—accelerating project timelines and reducing siting risk—though they must comply with strict environmental and infrastructure requirements.
Local governments and service districts (cities, utility districts) must enter binding interlocal agreements and may be required to fund or provide infrastructure—increasing fiscal responsibility but also creating opportunities for coordinated regional planning and shared costs.
Agricultural, forest, and mineral landowners benefit from mandatory mitigation and buffers, but may face indirect impacts if industrial sites are sited adjacent to their lands—potentially reducing land values or limiting future development options.
Workers in targeted industries may benefit from new jobs and local services (e.g., cafeterias, convenience stores), but may also face longer commutes or reduced housing affordability if rural communities grow rapidly around industrial sites.