SB 6331
In CommitteeSenate
Diesel vessels/state ferries
Addressing diesel vessel procurement at the Washington state ferries.
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 allows Washington State Ferries to quickly acquire new clean diesel vessels using flexible procurement methods, with strict delivery deadlines and incentives for in-state construction. It also updates procurement rules to prioritize life-cycle costs and oversight, while requiring reporting on project delays.
- Requires the Department of Transportation to acquire clean diesel ferry vessels (125–140 vehicles, up to 1,200 passengers) using flexible procurement methods, with delivery guaranteed by December 31, 2032.
- Allows the use of multiple-contract procurement, design-build, design-bid-build, or lease-with-option-to-buy approaches, bypassing standard competitive bidding rules for these vessels.
- Grants a 13% bid credit to proposals for vessels built in Washington state (adjusted for in-state construction share), based on a 2016 study of economic and logistical costs of out-of-state building.
- Requires third-party oversight and semiannual reporting to the legislature and Office of Financial Management on project schedule, risks, and budget.
- Mandates that procurement for propulsion systems include life-cycle cost analysis, with fuel efficiency evaluated at least as heavily as initial price.
Who is affected
- Washington State Ferries — Washington state ferries will be able to acquire new clean diesel vessels more quickly using flexible procurement methods, and must ensure delivery by December 31, 2032.
- Maritime shipbuilders (especially in-state) — Shipbuilders in Washington state gain a 13% bid credit for vessels built in-state, and must meet apprenticeship and small business goals; out-of-state builders face no credit but must still comply with environmental and labor standards.
- Washington Department of Transportation — State agencies like the Department of Transportation gain expanded authority to use alternative procurement methods (e.g., design-build or lease-with-option-to-buy) and to bypass certain standard bidding rules for these vessels.
- Washington State Legislature and Governor’s Office — Legislative committees and the governor must approve lease-with-option-to-buy plans and receive regular reports on project delays, increasing oversight responsibility.
Pro/Con Analysis
Stronger case for benefits
Potential Benefits (4)
The requirement to guarantee delivery by December 31, 2032 — backed by third-party oversight and semiannual reporting — addresses chronic delays that have left aging ferries in service beyond safe operational limits. This reduces risk of mechanical failure and service disruption, directly benefiting everyday commuters and residents who rely on the ferry system for daily travel and emergency access to islands and peninsulas.
Public SafetyPeopleRef: Sec. 1(3); Sec. 6(5)The 13% bid credit for in-state construction is explicitly tied to the 2016 Washington Institute for Public Policy study, which found significant economic leakage from out-of-state building. This credit helps offset the real cost disadvantage of Washington shipbuilders and supports local jobs — particularly in skilled trades — in a sector where Washington has a comparative advantage. While imperfect, it is the most direct tool in the bill to retain high-wage maritime jobs in-state.
Business & EmploymentPeopleRef: Sec. 1(2)(d); Sec. 6(2)(d)The requirement for life-cycle cost analysis — with fuel efficiency weighted at least as heavily as initial price — for propulsion system procurement aligns procurement with long-term operational savings. This reduces long-term taxpayer costs and incentivizes energy-efficient technologies, benefiting ratepayers and the state’s climate goals. It also supports innovation in fuel-efficient diesel and hybrid systems, potentially creating demand for new local supply-chain partners.
Business & EmploymentPeopleRef: Sec. 1(2)(c); Sec. 6(2)(c); Sec. 2(c); Sec. 7(c)The bill explicitly requires contractors to meet apprenticeship standards (RCW 39.04.320) and small business enterprise goals (RCW 47.60.835), and to comply with water pollution controls (RCW 90.48). This strengthens labor standards and environmental compliance in a high-value construction sector, supporting unionized workers and communities near shipyards who bear environmental and traffic burdens from shipbuilding.
Business & EmploymentPeopleRef: Sec. 6(2)(e); Sec. 6(2)(f)
Potential Concerns (4)
The 13% bid credit for in-state construction is structured as a preference, but the credit is based on a 2016 study estimating out-of-state construction costs — not a guaranteed subsidy. In practice, only large, vertically integrated shipbuilders with existing Puget Sound facilities (e.g., Vigor Industrial, Bellingham Shipyard) are likely to qualify for meaningful credit, while smaller in-state fabricators or new entrants cannot meaningfully compete due to scale and capacity constraints. This tilts procurement toward a small number of large, incumbent in-state firms rather than broadly supporting Washington small businesses.
Business & EmploymentLean industryRef: Sec. 1(2)(d); Sec. 6(2)(d)The bill allows the state to bypass standard competitive bidding rules (RCW 47.60.810–824) for ferry procurement, replacing them with flexible methods like design-build and lease-with-option-to-buy. While intended to accelerate delivery, this reduces transparency and public oversight, increasing risk of cost overruns and favoritism — especially since lease-with-option-to-buy plans require legislative approval but are not subject to full competitive scrutiny. This weakens accountability for a major capital program.
Local GovernmentIndustryRef: Sec. 1(2)(c); Sec. 6(2)(c)The lease-with-option-to-buy option, while authorized, requires legislative and gubernatorial approval and is “subject to the availability of amounts appropriated.” In practice, this creates a budgetary dependency that may delay or cancel the lease, shifting financial risk to the state and potentially destabilizing long-term financing for shipbuilders who rely on predictable state contracts. This uncertainty disproportionately affects small- and mid-sized suppliers in the maritime supply chain.
Business & EmploymentLean industryRef: Sec. 1(2)(c); Sec. 6(2)(c)The bill mandates third-party oversight and reporting, but the oversight structure is additive rather than replacement — existing statutory requirements (e.g., RCW 47.60.810’s owner’s representative) remain in place. This creates redundant oversight layers without addressing core systemic issues (e.g., chronic delays in ferry procurement since the 2011–2017 Olympic-class program overruns), limiting actual improvement in project delivery or safety outcomes.
Public SafetyLean industryRef: Sec. 1(2)(e); Sec. 6(2)(e)
Who Is Most Affected
Everyday commuters and residents of island and peninsular communities benefit from more reliable, timely ferry service. Delays and breakdowns disrupt access to jobs, healthcare, education, and emergency services. The 2032 delivery guarantee and oversight requirements directly improve service reliability and safety for this group.
Large, established Puget Sound shipyards (e.g., Vigor Industrial, Bellingham Shipyard) are the primary beneficiaries of the 13% in-state credit, as they have the capacity and infrastructure to meet the 2032 deadline. Smaller fabricators and new entrants face barriers to entry, limiting the benefit to a concentrated group of incumbent firms.
State employees and agencies (e.g., WSDOT, Washington State Ferries) gain procedural flexibility but also added oversight responsibilities. While this may reduce bureaucratic friction in procurement, it also shifts decision-making away from standard competitive processes, increasing risk of mismanagement without proportional accountability.
Small- and mid-sized maritime suppliers (e.g., engine manufacturers, electrical systems integrators, local machine shops) may benefit indirectly from small business goals and apprenticeship requirements, but the bill does not mandate subcontracting targets or set-aside provisions, limiting concrete benefit. The focus on large vessel contracts favors prime contractors over supply-chain partners.
Taxpayers and general fund users benefit from life-cycle cost analysis and oversight, which may reduce long-term costs. However, bypassing standard competitive bidding increases risk of cost overruns, and the 13% credit effectively raises the baseline cost of in-state procurement — potentially increasing long-term taxpayer liability if not offset by efficiency gains.