Transcript Highlights:

• Or are we talking about larger federal implications, like right now the tariffs and what it's done to

Summary: The committee’s final day focused first on a historical overview of New Mexico tax packages by Pam Stokes of Legislative Council Services. She described how tax packages have alternated over the decades between tax relief, revenue raising, and tax reform, with examples ranging from the creation of the gross receipts tax in 1966 to major packages in 1981, 1986, 1991, 1994, 2005, 2019, 2022, 2024, and the vetoed 2025 package. Members discussed how tax policy often tracks revenue conditions, how packages can combine increases and decreases, and how local government gross receipts taxes and hold-harmless distributions have affected communities differently. Several members reflected on past packages, especially the 2004 food tax repeal and the 2013 film tax and manufacturing changes, and noted that tax policy can have major economic and political effects even when it is not “sexy” legislation. The committee then heard a proposal to expand the health care practitioner gross receipts tax deduction to include co-insurance, and to extend the sunset date. Sponsor Senator Figueroa said the bill was intended to help recruit and retain medical providers and build on prior deductions for co-pays and deductibles. Testimony explained that co-insurance is the patient’s share after the deductible, that providers currently absorb the gross receipts tax on those payments, and that the proposal would cost about $30 million to the state plus about $20 million to municipalities and counties, with the exact fiscal impact likely to be updated. Members raised concerns about the effect on local governments, whether insurers could be required to reimburse providers, whether the bill would actually attract doctors, and whether better evaluation measures and sunsets should be added. The sponsor said the bill was part of a broader set of efforts to address provider shortages and that the discussion would continue. Representative McQueen then presented a bill to update the Land Conservation Incentives Act. He and conservation partners said the program has protected more than 500,000 acres but has not kept pace with rising land values, especially for irrigated agricultural land in the Middle Rio Grande. The proposal would increase the percentage of conservation value eligible for the credit, raise the per-transaction cap from $250,000 to $2 million, and make the credit refundable rather than only transferable. Testimony emphasized that the program is voluntary, keeps land in private ownership and production, and helps land-rich, cash-poor landowners preserve farmland and water rights. Members asked about average credit amounts, how easements work, whether landowners could effectively buy land and then use the credit, and whether there should be inflation indexing or a statewide cap. The discussion also touched on water rights, fencing, and the role of conservation easements in protecting agricultural land and compact water deliveries. Finally, Senator Sharer previewed his 2% tax proposal with a historical presentation on New Mexico tax law, using props to illustrate the evolution from early territorial tax codes to the modern tax system. He argued that the state’s current tax structure is overly complex and that recent federal changes have disrupted the personal income tax base. The committee did not take any votes on the day’s presentations; the meeting was primarily informational, with members offering feedback and raising policy concerns for future sessions.

Transcript Highlights:

• instead, which, of course, is going to add additional cost, especially when you start looking at tariffs

Committee: House Environment & Energy

Summary: The committee held a work session on SEPA-related clean energy permitting and on Washington’s carryout bag law. Ecology presented on the clean energy programmatic environmental impact statements (PEISs) completed for utility-scale solar, onshore wind, and green hydrogen, with a fourth for sustainable aviation fuel in progress. Ecology and EFSEC described how these broad reviews identify likely impacts, mitigation measures, and planning tools to help developers and lead agencies move projects through SEPA more efficiently, while still requiring project-level review. Committee members and presenters discussed issues such as wildfire risk from battery storage, water use, agricultural land conversion, recycling of solar panels and wind turbines, and the need for early tribal consultation and better cultural resource studies. Grant County and Yakama Nation both emphasized the importance of early pre-application coordination, cumulative impact review, and adequate time for tribal and agency input; Puget Sound Energy said it needs more predictable permitting to meet clean energy mandates and maintain reliability, while still facing major transmission and generation needs. The second half of the meeting focused on the state’s carryout bag law. Committee staff reviewed the law’s history, current requirements, and upcoming changes: the 8-cent charge on paper and plastic bags rises to 12 cents in 2026, thicker 4-mil bags will be required in 2028, and a temporary 4-cent penalty on those thicker bags takes effect in the interim. Commerce summarized a Washington State University study finding that plastic bag distribution fell but total plastic weight increased because reusable bags are thicker, and Ecology described its education-first enforcement approach, litter study results, and the interaction with the new Recycling Reform Act. Ecology said it has received hundreds of complaints but has not yet imposed the $250 retailer penalty, using multiple rounds of technical assistance before site visits or fines. Members questioned whether the thicker-bag requirement makes environmental sense, whether the penalty structure is administratively burdensome, and how the law applies to tribal retailers.

Transcript Highlights:

• instead, which, of course, is going to add additional cost, especially when you start looking at tariffs

Summary: The committee held a work session on state environmental policy act (SEPA) implementation and carryout bags. Ecology staff Diane Buterak described the Clean Energy Programmatic Environmental Impact Statements (PEISs) completed for utility-scale solar, onshore wind, and green hydrogen, plus a new PEIS underway for sustainable aviation fuel. She explained that PEISs provide broad planning-level analysis to help developers and agencies avoid or mitigate impacts, but do not replace project-level review. Members asked about permitting timelines, greenhouse gas emissions from different hydrogen production methods, water use, agricultural land conversion, battery fire risk, and tribal consultation. Buterak said the PEISs identify potentially significant impacts and mitigation measures, including fire response planning, early tribal outreach, and agrovoltaics as an option for solar projects. EFSEC’s Amy Hofkimer then presented the transmission-facility programmatic EIS required by SB 5165 for 230 kV and higher transmission projects. She said the statewide review covers new lines and certain upgrades/modifications, analyzes impacts to water, cultural and tribal resources, habitat, and other areas, and uses general measures, design considerations, avoidance criteria, and sensitivity maps to guide siting and corridor planning. She said the final document would be issued in early October. Questions focused on reconductoring, tribal lands, scenic areas, and whether the review could affect existing lines crossing tribal lands. A Grant County planning director, Jim Anderson Cook, said Ecology’s PEIS would help with cumulative impacts for clustered solar projects, but noted tight local review timelines and the need for strong pre-application coordination, especially on cultural resource studies and decommissioning plans. Yakama Nation attorney Shona Leverett argued SEPA is only an assessment tool and said tribes face barriers from short comment periods, limited confidential tribal input, weak cumulative impact analysis, and challenges in the FSEC process; she urged better upfront developer diligence and more effective tribal coordination. Puget Sound Energy’s Sarah Leverett said the utility needs efficient and predictable permitting to meet clean energy mandates while maintaining reliable service and aging infrastructure. She described the scale of needed clean energy and transmission buildout, including a 10-year process for the Energize Eastside transmission rebuild, and said more consistent SEPA and PEIS processes could help. Members asked about future generation sources, reliability, and hydropower as a firming resource; she said PSE is pursuing an “all of the above” approach and would welcome more firm, dispatchable clean energy options. The committee then shifted to carryout bags. Staff Jacob Lipson and Tracy Taylor reviewed Washington’s bag law, its preemption of local ordinances, the current 8-cent charge, the scheduled increase to 12 cents, and the 2025 change delaying the 4-mil thickness requirement until 2028 while adding a temporary 4-cent penalty for thicker bags. Ecology’s Peter Lyon said the agency emphasizes education and complaint-based enforcement, has received 872 reports, and has not yet imposed any fines. Commerce’s Kirk Esmond summarized a WSU study finding fewer plastic bags distributed but more plastic by weight, and said Commerce and Ecology support keeping the 2.25-mil standard and not allowing thinner single-use bags again. Retail industry testimony from Brandon Housekeeper said grocers comply with the law but oppose the added 4-cent penalty and thicker-bag requirement, citing higher costs and confusion in the policy changes.

Transcript Highlights:

• And had a fee structure and a tariff structure that would absolutely work with their customers to make

Committee: House Economic & Rural Development & Policy Committee

Transcript Highlights:

• I know we're having inflation issues as well as tariff issues, but just kind of curious what that amount's

Bills: SB6 , SB62 , SB74 , SB90 , SB104 , SB119 , SB132 , SB133 , SB135 , SB182 , SB185 , SB193 , SB207 , SB217 , SB229 , SB233 , SB260 , SB262 , SB280 , SB281 , SB300 , SB306 , SB378 , SB382 , SB393 , SB403 , SB422 , SB427 , SB431 , SB434 , SB442 , SB452 , SB456 , SB468 , SB472 , SB487 , SB503 , SB6

Committee: Assembly Ways and Means

Transcript Highlights:

• ever had, and in my opinion should never have rates as a consideration, because FERC approves the tariffs

Committee: Senate Energy and Natural Resources

Transcript Highlights:

• It's the tariff approach.

Committee: Senate Subcommittee on Personnel

Keywords: defense, geopolitical tensions, military readiness, China, Russia, U.S. military, Indo-Pacific, alliance, procurement

Summary: The meeting focused on critical defense and security matters, particularly concerning the ongoing geopolitical tensions involving China and Russia. There were discussions surrounding U.S. military readiness, with significant emphasis on the potential threats posed by China in the Indo-Pacific region. Members expressed concerns about America's military capabilities in relation to the growing Chinese fleet and the importance of maintaining strong alliances with nations like Japan, South Korea, and Taiwan. Additionally, the notion of prioritizing the defense industrial base was highlighted, emphasizing the need for effective procurement and modernization efforts to counter adversarial threats. Furthermore, notable commentary included a reference to President Zelensky's remarks regarding peace negotiations with Ukraine, expressing a willingness for further cooperation with the U.S.

Transcript Highlights:

• this office in particular, you know, we see that the governor, I'm sorry, the president is using tariffs
• this office in particular, you know, we see that the governor, I'm sorry, the president is using tariffs
• So I do the president is is using tariffs. He's the president is is using tariffs.
• </c><01:12:17.840><c> and</c><01:12:18.000><c> the</c> based on those tariffs and the based on those
• tariffs and the negotiations<01:12:18.640><c> that</c><01:12:18.880><c> are</c><01:12:19.040><c> going

Committee: Joint Appropriations

Transcript Highlights:

• I know we've had a lot happening with tariffs and the supplier. Yep. As brief as I can ask...
• I know we've had a lot happening with tariffs and the supplier. Yep.

Committee: Joint Joint Committee on Ways and Means

Summary: The Joint Committee on Ways and Means held a hearing at UMass Amherst on Governor Healey’s fiscal year 2027 budget, focusing on energy/environment-related transportation issues and the Massachusetts Department of Transportation. The chairs and members opened with thanks to UMass, university leadership, court officers, and legislative staff, and Chancellor Javier Reyes highlighted UMass Amherst’s research, workforce, sustainability, and transportation contributions, including energy research, transit operations, and partnerships with MassDOT. The hearing then moved to MassDOT and MBTA testimony on the administration’s transportation funding package, including House 2, the FY26 Fair Share supplemental, and a proposed four-year Chapter 90 authorization. MassDOT officials described the budget as part of a broader multi-year transportation investment strategy, citing funding for operations, snow and ice removal, regional transit authorities, the MBTA, the Merit Rating Board, sustainable aviation fuel credits, micro-transit and last-mile grants, unpaved road improvements, bridge and pavement work, and housing-related transportation infrastructure. They emphasized workforce expansion, capital delivery capacity, safety improvements, and local aid, including the new lane-mile-based Chapter 90 formula intended to benefit rural communities. Officials also discussed major projects and programs such as Grant Central, culvert and unpaved road grants, work zone speed cameras, congestion hotspot fixes, the Sagamore and Bourne Bridge projects, and MBTA operating support and safety upgrades. Testimony from the MBTA and rail/transit staff focused on improved ridership, service frequency, accessibility, and safety, including progress on the Green Line Train Protection System, reduced delays, expanded bus and commuter rail service, and the South Coast rail extension. Regional transit authorities reported increased ridership and described new fare-free, connectivity, and community transit grants. Aeronautics testimony covered airport capital work, drone and data programs, sustainable aviation fuel efforts, and workforce development in aviation maintenance. Committee members then asked questions, especially about Western Massachusetts priorities, Chapter 90 funding, bridge repairs, snow and ice costs, Cape Cod bridges, Buzzard’s Bay rail, and Compass Rail/West-East Rail. Officials said several federal rail grants were moving forward, that Sagamore Bridge procurement would begin soon, and that the administration remained committed to pursuing federal funding and multi-year transportation investments.

Transcript Highlights:

• So where are we with, you know, again, tariffs, war in terms of cost on some of these components of concrete
• So where are we with, you know, again, tariffs, war in terms of cost on some of these components of concrete

Committee: House Capital Investment

Transcript Highlights:

• I know we've had a lot happening with tariffs and the supplier.
• I know we've had a lot happening with, um, with tariffs and the supplier. Yep.

Committee: Joint Joint Committee on Ways and Means

Transcript Highlights:

• know, these fellows are a wealth of information from the manufacturing sector to discussions about tariffs
• know, these fellows are a wealth of information from the manufacturing sector to discussions about tariffs

Summary: The subcommittee approved the October 15 minutes and observed a moment of silence for the victims of the UPS Worldport plane crash. The main presentation was from Transportation Cabinet Commissioner Bobby Joe Lewis on the Local Assistance Road Program/County Priority Projects Program (LAARP/CPP), which was implemented under House Bill 546 and now requires rehabilitation projects to restore roads to original condition, cap funding at $500,000 per project, use a new scoring matrix, include a local match, and submit one photograph per 300 feet of project length. He reported that the 2026-2027 cycle ran from June 1 to October 1 and drew 1,215 project applications from 107 counties and 106 cities, with total submitted project costs of about $121.1 million and about $102.3 million requested after local match. He also said 30% of submissions scored 10s and 22% scored 9s, and that the list of requests and required photos had been submitted to the General Assembly and LRC. Members asked about how scores change over time, whether roads can move from lower scores to 10s, and whether the new process gives a better picture of local needs. Lewis said scores can change based on weather and road conditions, but the new system provides more information and a more standardized evaluation than before. Several members raised concerns about the volume and size of required photographs, suggesting drone footage or video as an alternative; Lewis said the photo requirement has caused confusion and large file uploads, and he was open to considering easier ways to document conditions. Members also discussed continuity in scoring across districts, and Lewis explained that district staff appointed by chief district engineers use a handbook and scoring matrix, with the scores entered into a computer system so evaluators do not see the final score while scoring. The committee also discussed funding levels and carry-forward balances for the program. Lewis said the program began with $20 million authorized in HR92, noted underruns from completed projects, and reported a carry-forward amount that had grown to $355,432.42 available for reauthorization as of October 13. In response to questions, he said the current process concentrates applications into a short window, with 63% of applications arriving in the last few days and 417 on October 1, which created a heavy workload but was completed on time. The meeting then moved to multimodal funding priorities, with Jennifer Kersner of Kentuckians for Better Transportation introducing herself and offering condolences for the UPS aviation incident before beginning her remarks.

Transcript Highlights:

• really</c><00:12:34.480><c> escalating</c> There's a lot of pressure on construction costs due to tariffs
• 'Well, the problem is high interest rates, the problem is federal budget changes, the problem is tariffs

Summary: The Housing Task Force 2.0 reconvened with several new members and heard a presentation from Kentucky Housing Corporation Executive Director Winston Miller and Deputy Executive Director Wendy Smith. They framed the task force’s work as a practical effort to address Kentucky’s housing shortage, update members on the current housing landscape, summarize existing state and federal resources, and suggest areas for the task force to focus on over the coming year. KHC said its 2024 housing supply gap analysis found Kentucky is short about 206,000 housing units, split roughly evenly between rental and homeownership, and projected the gap could grow to 287,000 units by 2029 if current trends continue. They emphasized that every county in Kentucky needs more housing, that the 2008 housing crisis and loss of construction capacity remain major causes of the shortage, and that current pressures include high interest rates, rising insurance and tax costs, construction cost inflation, and housing prices and rents growing faster than incomes. KHC also said homelessness has risen in Kentucky, with point-in-time counts showing double-digit increases in recent years. The presenters reviewed existing resources, including federal programs, the Kentucky Affordable Housing Trust Fund, the rural housing trust fund, KHC mortgage and down payment assistance programs, and the state mortgage interest deduction. They said these resources are important but insufficient to close the gap, and noted that a proposed federal FY2026 budget would cut HUD programs by 44%, potentially removing about $286 million from Kentucky housing resources, though no action has been taken yet. They urged the task force to consider stronger, more flexible tools such as a revolving loan fund, a state affordable housing tax credit, and economic development and employer-assisted housing incentives, and pointed to Indiana’s housing infrastructure and regional development funds as examples. No votes or formal actions were taken in the portion provided.

Transcript Highlights:

• It will get worse, not better, starting today, when we had tariffs put on Canadian imports, which has
• It will get worse, not better, starting today, when we had tariffs put on Canadian imports, which has

Bills: HF837

Committee: House Commerce Finance and Policy

Transcript Highlights:

• does not currently have well-defined rules for the flexibility of these data center loads in their tariff
• does not currently have well-defined rules for the flexibility of these data center loads in their tariff

Bills: HF4 , HF173

Committee: Senate Taxes

Keywords: tax relief fund, budget surplus, surplus revenue, tax rebate, tax refund, one-time refund, income tax, property tax, constitutional amendment, Minnesota Constitution, general fund, budget reserve, taxpayer relief, state surplus, fiscal forecast, wealthy taxpayers, high-income exclusion, 2026 ballot, referendum, surplus distribution

Transcript Highlights:

• We already have a federal government that has gotten out of control from our president on tariffs and
• We already have a federal government that has gotten out of control from our president on tariffs and
• Control from our president on tariffs and have made things very difficult with war that's raising prices

Transcript Highlights:

• From the weather to markets to tariffs to input costs, there's so much you don't control, and that creates
• From the weather to markets to tariffs to input costs, there's so much you don't control, and that creates
• From the weather to markets to tariffs to input costs, there's so much you don't control, and that creates

Committee: Senate Judiciary and Public Safety

Transcript Highlights:

• really our participating transmission owners is basically our responsibility to show how our current tariff

Summary: The Assembly Committee on Utilities and Energy heard SB 1259, which would require refineries to provide advance closure and remediation planning information, and SB 1425, which would authorize the High-Speed Rail Authority to create a permit process for encroachments in its right of way. The committee also held an informational hearing on California electricity reliability and the future of the Strategic Reliability Reserve. The chair opened by noting the hearing room change, testimony limits, and that the committee would proceed without a quorum at first, then later established quorum for votes. On SB 1259, Senator Blake Spear argued the bill would give communities and state agencies needed information to plan for refinery closures, cleanup, and land reuse, comparing the requirement to estate planning. Supporters, including Benicia City Councilmember Carrie Birdseye and UC Santa Barbara professor Ranjit Schmook, said the bill would help communities facing refinery closures avoid being left without information and better prepare for redevelopment and remediation. Opponents, including the Western States Petroleum Association, the State Building and Construction Trades Council, and business groups, argued the bill could send negative market signals, create conflicts with federal reporting, and potentially accelerate refinery closures. The committee passed SB 1259 on a 7-3 vote, later reopening the roll and recording additional votes before moving it out as amended to Appropriations. On SB 1425, Senator Cortese and sponsor Robert Pearsall said the bill would help the High-Speed Rail Authority manage utility, broadband, drainage, and vegetation encroachments along the project corridor and reduce delays. Labor and construction groups supported the measure as a way to add certainty and speed project delivery. Utilities and local agencies, including LADWP, Southern California Gas, Southern California Edison, PG&E, and others, opposed unless amended, saying the bill needed clearer language on emergencies, existing agreements, and potential impacts on their own rights of way and service obligations. After discussion about emergency language and utility coordination, the committee passed SB 1425 as amended to Appropriations on a 10-3 vote. In the oversight hearing, CEC, CPUC, CAISO, and DWR officials reported that California’s summer reliability outlook is better than in prior years, with substantial new procurement, storage, and demand-response resources added since 2020. They said the state is projected to meet its summer reliability standard and has not needed a flex alert for three straight years, but cautioned that extreme heat, fire, hydro conditions, and federal policy uncertainty still pose risks. Officials emphasized that the current Strategic Reliability Reserve remains important as a backstop, while longer-term planning must address rising demand from electrification and data centers and the eventual retirement of emergency resources.

Transcript Highlights:

• really our participating transmission owners is basically our responsibility to show how our current tariff

Committee: House Utilities and Energy

Transcript Highlights:

• Part of that cost estimate looks at market factors, considering inflation and tariff workforce trends

Summary: The committee first received an informational update on the Interstate Bridge Replacement Project from Carly Francis and Travis Brower. They described the project’s purpose as improving seismic resilience, safety, freight movement, transit, and bicycle/pedestrian access across the Columbia River, and said the updated cost estimate is $13.2 billion to $14.4 billion for the full corridor. They explained the increase from the 2022 estimate as driven by construction inflation, a more conservative inflation curve, schedule delays, more detailed engineering, and risk modeling. They also outlined the funding plan, including $2.1 billion in federal funds, $1 billion each from Oregon and Washington, and $1.5 billion in projected toll revenue, and said they are working to obligate federal funds by the end of September. The panel described a first funded phase that would include the bridge, highway connections, tolling infrastructure, bridge removal, and transit design, with light rail to Vancouver still intended but dependent on additional funding. Members questioned the risk of losing federal transit funds, whether bridge design decisions were being made with legislative input, and whether the space reserved for light rail could be used for buses if transit funding does not materialize. The committee then heard testimony on maintaining Oregon’s existing roads and bridges from representatives of Knife River, the Asphalt Pavement Association of Oregon, and CRH. Witnesses said pavement and bridge preservation is severely underfunded, with ODOT needing about $400 million per year for pavement preservation but receiving roughly $100 million annually. They showed examples of deteriorating highways such as U.S. 97 and I-84 and argued that delaying maintenance leads to much higher reconstruction costs, more safety risks, and higher user costs. Knife River described layoffs and reduced work in Oregon because of limited preservation funding, while witnesses also said rising wages, equipment costs, fuel, and permitting delays are increasing project costs. Committee members asked about the role of prevailing wage, diesel equipment, hauling distances, and whether preservation work could be prioritized more effectively. Finally, economist Joe Cortright presented on recent ODOT megaproject cost overruns. He said Oregon has experienced persistent overruns driven by overly optimistic revenue forecasts, heavy reliance on debt, consultant costs, inflation above forecast, and projects that have become much larger in scope than originally presented. He cited major increases in the Interstate Bridge, Rose Quarter, and Abernathy Bridge projects and argued that some designs are far wider and more expensive than necessary. Cortright said better accountability, clearer priorities, and more disciplined project sizing are needed, and committee members pressed him on why agencies proceed with larger designs even when consultants recommend narrower, less expensive alternatives.