Transcript Highlights:

• And they compete with producers nationally and internationally.
• under this bill to continue to produce.
• If the incentive... ...feasible, access to the full 10 years of the incentive is essential.
• If the incentive period is triggered before a full-sized facility comes online, the remaining incentive
• That committee produced a pretty hefty report of recommendations.

Summary: The Senate Environment, Energy & Technology Committee heard three bills. SB 6246 would direct Ecology to develop recommendations for how no-cost allowances for emissions-intensive trade-exposed facilities (EITEs) should work from 2035 to 2050, and would require EITEs to submit facility-specific emissions data and periodic decarbonization plans as a condition of receiving allowances. Supporters said the bill preserves the Climate Commitment Act’s goals while giving the Legislature and Ecology better information to prevent emissions and job leakage and to plan for industrial decarbonization. Opponents argued the bill adds costly reporting and planning burdens, could threaten competitiveness, and in some cases could lead to allowance withholding; Ecology said it generally supports the approach but wants some streamlining and noted implementation costs are not in the governor’s budget. SB 5932 would provide certainty for sustainable aviation fuel development by changing how Ecology applies electricity carbon intensity in the Clean Fuels Program and by setting an earlier trigger for aviation fuel tax incentives. The sponsor and 12, a Moses Lake SAF developer, said the bill would give investors and producers needed certainty for expansion and help Washington remain competitive. Ecology and Climate Solutions opposed parts of the bill, saying it would weaken incentives for new renewable electricity generation, limit Ecology’s technical discretion, and reduce the Clean Fuels Program’s effectiveness, though Ecology said it supports decarbonizing aviation and is willing to work on the issue through rulemaking. Some testimony also supported the tax certainty portion while objecting to the Clean Fuels Program changes, and one witness asked for clarification on local participation in the incentive. SB 6172 would end remaining state tax and regulatory exemptions for the coal-fired TransAlta plant after its scheduled closure date. The sponsor said Washington should remove special treatment now that the state has phased out coal, while supporters said the bill reinforces the state’s clean energy transition and protects public health and climate goals. A few witnesses raised concerns about possible costs to utilities and ratepayers if the plant were ever required to run in an emergency, and asked for language to protect against that. The hearing concluded with the committee closing public testimony on all three bills; no votes were taken in the transcript.

Transcript Highlights:

• </c><00:03:23.680><c> it,</c> varieties of how you can produce it, varieties of how you can produce it
• It's mostly other um producing AAF.
• The other benefits of most of these state incentives are they're stackable with federal incentives.
• The other benefits of most of these state incentives are they're stackable with federal incentives.
• The other benefits of most of these state incentives are they're stackable with federal incentives.

Summary: The task force approved the October 14, 2025 meeting minutes and then heard a presentation from Austin Kaylor of WSP on alternative aviation fuels. Kaylor described an ongoing feasibility study focused on Cincinnati/Northern Kentucky International Airport and the other four commercial airports in Kentucky, with an eye toward both near-term use of alternative aviation fuel in existing supply chains and longer-term in-state production using local feedstocks. He said Kentucky’s current jet fuel use at the five airports is about 609 million gallons annually and could approach 1 billion gallons by 2050, and he outlined potential feedstocks such as soybeans, corn, and waste oils, along with existing logistics assets like river terminals, trucking, rail, and some pipelines. He also discussed federal and state policy support, including renewable fuel credits and the recent 45Z tax credit extension, and said the study suggests significant economic-development potential if Kentucky can leverage existing infrastructure and incentives. Members asked about the cost of sustainable aviation fuel, whether taxpayers would be subsidizing it, and whether food crops would be diverted from food use. Kaylor responded that the market is increasingly using second-generation and waste-based feedstocks, that federal incentives can cover much of the price differential, and that SAF is a direct substitute for conventional jet fuel with some efficiency benefits. He said demand comes from both U.S. and foreign carriers, including major U.S. airlines that have made emissions-reduction commitments. Members also raised the possibility of locating production in Appalachia to create jobs closer to feedstock sources; Kaylor said that approach has worked in other states and could fit Kentucky’s logistics network. The committee then heard from Leif Elder of the Utah Department of Transportation, who introduced himself and said he would discuss advanced air mobility legislation in Utah. The transcript cuts off before his substantive presentation, and no further votes or actions were recorded after the question-and-answer discussion on alternative aviation fuels.

Transcript Highlights:

• “I’m not exactly sure their incentive.
• Is that true for all of the producers, for all of the jobs-generating producers of SAF in the state?
• to produce more SAF in California.
• That's why I support the staff incentive.
• I support the Governor's SAF incentive plan.

Summary: The subcommittee first received an informational update on the Governor’s Office of Service and Community Engagement (GoServe), including California Volunteers, the Office of Community Partnerships and Strategic Communications, and the Youth Empowerment Commission. GoServe reported strong participation in College Corps, Youth Service Corps, and Climate Action Corps, along with outreach results from OCPSC and the Trusted Messenger Network. The Department of Finance said the programs remain a priority but noted prior budget reductions, while the LAO said it had no new recommendations. Committee members raised questions about program diversity, geographic reach, administrative costs, and whether the programs duplicate existing volunteer opportunities; one member criticized the programs as costly and duplicative, while another emphasized the value of volunteerism and asked about the men’s service challenge. The item was informational only. The committee then heard an overview of the Board of Equalization’s property tax responsibilities and its first budget proposals since the 2017 reorganization. BOE described its role in county assessment oversight, state-assessed property valuation, and related tax administration. Members asked about BOE’s interaction with counties, property tax reassessments, and local tax notices; BOE explained it mainly works with county assessors and handles technical property tax questions, while local special district charges are generally outside its scope. The committee also considered a BOE proposal to implement SB 293, which would give additional time for certain intergenerational property tax transfer claims after the 2025 wildfires. BOE requested $154,000 for guidance, public materials, and inquiry response work, saying the change is urgent for wildfire-affected families, especially in Altadena. The LAO had no concerns, and the item was held open. BOE also presented an information technology modernization proposal for its state-assessed property program, seeking $3.2 million in 2026-27 and $3.1 million in 2027-28 to replace a 30-year-old mainframe system. BOE said the current system relies heavily on manual data entry and paper processes, creating inefficiencies, cybersecurity risks, and delays, while modernization would free staff for more audits and valuation studies. The LAO supported the need but urged a high bar for new IT projects; Finance said the project met the threshold of necessity. Members generally supported the upgrade but asked about audit gains, revenue impacts, and implementation risks, and the item was held open. Finally, CDTFA gave its department overview and then discussed a proposal to require all delivery network companies, such as Uber Eats and DoorDash, to be treated as marketplace facilitators for sales tax purposes. CDTFA said the current carve-out creates confusion for restaurants and small businesses because some DNCs collect and remit tax while others do not, and the change would improve compliance and shift reporting to larger platforms. Members debated whether the proposal amounts to a tax increase for consumers, with CDTFA and Finance arguing it is a consistency and compliance measure rather than a new tax, while others said it would likely raise consumer costs. The committee also discussed broader CDTFA issues, including local sales tax districts, revenue-sharing agreements, and the growth of special taxing jurisdictions. No votes were taken, and the agenda items were informational or held open.

Transcript Highlights:

• I'm not exactly sure their incentive.
• Is that true for all of the producers, for all of the jobs-generating producers of SAF in the state?
• to produce more SAF in California.
• to produce more staff in California.
• That's why I support the SAF incentive.

Transcript Highlights:

• He said the bill provides incentives for locally produced feedstock and also for bringing in feedstock
• </c><00:17:58.800><c> feedstock,</c> know, um, locally produced feedstock, know, um, locally produced
• </c> produced energy. produced energy.
• , won't all go to one producer.
• It will be fairly one producer.

Bills: HB1986 , HB1694 , HB1695 , HB2030 , HB1673

Committee: House Energy & Environmental Protection

Summary: The committee on Energy and Environmental Protection heard testimony on three measures related to cleaner fuels. On HB 1986, which would require the Department of Transportation to adopt rules for a clean fuel standard by January 1, 2028 and include reporting and public informational sessions, testimony was largely supportive from state commissions, fuel companies, airlines, and other industry and advocacy groups. Supporters said the bill would create a long-term framework for reducing emissions and developing cleaner fuels in Hawaii. Opposition came from Energy Justice Network, which argued that so-called clean fuels are not carbon-free, would be costly, and could delay a needed transition to electrification. The department later said it was monitoring the bill and was concerned about costs. No vote or final action was taken in the hearing. The committee then heard HB 1694, a sustainable aviation fuel tax credit bill that would provide a per-gallon credit for SAF, cap annual credits at $20 million, require reporting, and sunset in 2035. The Department of Taxation testified on administration, while the Department of Transportation said it supported the measure as a short-term strategy to jump-start SAF until the clean fuel standard ramps up. Airlines, fuel companies, the Hawaii Food Industry Association, the Hawaii Renewable Fuels Coalition, and others supported the bill, saying it would send a market signal, help close the cost gap with conventional jet fuel, and encourage local production and investment. Opponents, including Energy Justice Network, Life of the Land, and Ted Metros, argued the bill would be expensive, could lock in a transitional fuel system, and would not produce enough fuel to meet demand. Committee members asked about the likely impact and the share of total fuel demand the credit could support; DOT said the supported gallons would be only a very small percentage of annual demand and that the credit was intended to work alongside the future clean fuel standard. Finally, the committee took up HB 1695 HD1 on renewable fuel, which expands the renewable fuels production tax credit. Testimony was again mixed but generally supportive from the Department of Transportation, Department of Taxation, Island Energy Services, airlines, the Tax Foundation, Pana Pacific, and the Hawaii Farm Bureau. Supporters said the measure would encourage local feedstock production, create agricultural opportunities, and help attract investment in renewable fuels. Pana Pacific requested an amendment to explicitly include camelina in the definition of renewable feedstocks. Opponents, including Energy Justice Network and Life of the Land, repeated concerns about cost, imported feedstocks, and the risk of undermining full electrification goals. The hearing transcript does not show any vote or final committee action on HB 1694 or HB 1695 HD1.

Transcript Highlights:

• I'm not exactly sure their incentive.
• Is that true for all of the producers, for all of the jobs-generating producers of SAF in the state?
• to produce more SAF in California.
• That's why I support the SAF incentive.
• I support the governor's SAF incentive plan.

Summary: The subcommittee first heard an informational overview from the Governor’s Office of Service and Community Engagement (GoServe), including California Volunteers, the Office of Community Partnerships and Strategic Communications, and the Youth Empowerment Commission. GoServe reported strong participation in programs such as California Service Corps, College Corps, Youth Service Corps, Climate Action Corps, and the new men’s service challenge. Testimony emphasized enrollment, retention, and completion outcomes, outreach results, and efforts to reduce administrative costs. The Department of Finance said the administration supports the programs but has already made reductions to help address the budget deficit, while the LAO said it had no new recommendations on the informational item. Committee members raised questions about program scale, demographics, and effectiveness, especially for Climate Action Corps and whether the programs are duplicative of existing volunteer opportunities. One member criticized the programs as too fragmented and costly, while others asked for more data on who is being served and whether the programs increase actual participation in state services. GoServe said it would follow up with demographic and regional impact information. The committee also discussed the men’s service challenge, which GoServe said has formed partnerships with organizations such as YMCAs and Big Brothers Big Sisters and has already attracted more than 2,000 participants. The item was informational only. The committee then heard a BOE overview and a budget request to implement SB 293, which gives wildfire-affected families additional time to claim intergenerational Prop. 13 property tax transfers. BOE requested $154,000 for guidance, public materials, and inquiry response, explaining that the work is urgent and tied to disaster relief in Los Angeles County, especially Altadena. The LAO had no concerns, and Finance had no comment. Members asked how many cases might be affected and whether more funding would be needed later; BOE said the full number is not yet known and that future requests are possible. The committee also heard BOE’s IT modernization proposal for the state-assessed property tax system, a 30-year-old mainframe replacement costing $3.2 million in 2026-27 and $3.1 million in 2027-28. BOE and Finance supported the project as necessary, while the LAO said it had no concerns but urged a high bar for new IT spending. Members generally supported modernization but cautioned about implementation risk. Finally, CDTFA presented an overview and two policy proposals. The department described administering 42 tax and fee programs, collecting $98 billion in FY 2024, and improving administrative efficiency. Members then discussed local sales tax tools and revenue-sharing agreements, with concerns raised about transparency, consultant-driven tax allocation disputes, and the impact on local communities. CDTFA and the LAO explained that local jurisdictions control how district sales tax revenues are spent and noted the Legislature could revisit the statutory cap on local add-on sales taxes. The committee then heard CDTFA’s proposal to treat all delivery network companies as marketplace facilitators so they must collect and remit sales tax on delivery-app orders. CDTFA said the change would resolve confusion, shift compliance from thousands of small restaurants to a few large platforms, and raise about $44 million annually. Several members questioned whether the proposal would effectively raise consumer costs and whether it would create a competitive advantage or disadvantage among delivery platforms. The item remained under discussion, with no vote taken in the transcript.

Transcript Highlights:

• They emit significant greenhouse gases, and they compete with producers nationally.
• under this bill to continue to produce.
• First, it provides clarity around the existing SAF production incentive.
• “If the incentive period is triggered before a full-sized facility comes online, the remaining incentive
• That committee produced a pretty hefty report of recommendations.

Bills: SB6172 , SB6246 , SB5932

Committee: Senate Environment, Energy & Technology

Keywords: Washington climate policy, greenhouse gas, GHG emissions, cap-and-invest, carbon market, emissions trading, allowances, covered entity, coal-fired power plant, coal plant, electric utility, electric generating facility, fossil fuels, natural gas, imported electricity, emissions leakage, air pollution, renewable energy transition, industrial emissions, railroad emissions

Transcript Highlights:

• That's why this incentive is so vital.
• I'm the CEO of the Producers Guild of America.
• I invite you to support the incentive.
• I'm an independent producer.
• I'm a showrunner and producer.

Transcript Highlights:

• And when you're dealing with seasonal produce, which that program was all produce, it didn't match up
• And when you're dealing with seasonal produce, which that program was all produce, it didn't match up
• You see the green is the amount of federal incentives, which includes those farmers market incentives
• You see the green is the amount of federal incentives, which includes those farmers market incentives
• </c><00:48:13.920><c> That's</c> of Kentucky grown produce. That's of Kentucky grown produce.

Summary: The Tobacco Settlement Oversight Committee received a monthly report from the Kentucky Office of Agricultural Policy and the A Development Board/Finance Corporation. Staff reviewed May activity, including county council visits, loan and grant approvals, farm safety funding, and support for beginning farmers, agricultural infrastructure, processing, and county/state projects. The committee also recognized an intern and thanked Tara Roberts for her service as she prepares to leave the agency. Members were reminded about a June 20 anniversary event marking 25 years of the office and related programs. A major topic was K-CARD, the Kentucky Center for Agricultural and Rural Development. Staff explained that the program is being expanded to provide more technical assistance for beginning farmers and farm families, including help with business plans and estate planning/farm transition discussions. Members asked how farmers would access the service and were told the extension office would be the front-line contact, with K-CARD providing the technical assistance and neutral-site consultations. The committee also discussed support for large food animal veterinarians. Staff said the incentive program has helped more than 33 veterinarians and is intended to support existing providers rather than quickly increase numbers; members raised concerns about the pipeline and selection process at Auburn University, and staff said discussions with the university were ongoing. The committee then heard from Community Farm Alliance on Kentucky Double Dollars, Fresh Rx for Moms, and farmers market support programs. CFA reported expansion to roadside stands, more retail onboarding, seven new counties, and estimated economic and farmgate impacts, emphasizing that state funding helps leverage federal and private dollars and stabilize local food access programs. No formal votes or legislative actions were taken beyond approving the May minutes.

Transcript Highlights:

• The criteria must also provide for coordination with other incentives, Incentives or reimbursements.
• in Washington and then be a value added for producers going forward.
• Carbon-reduced fertilizer to be produced in Washington and then be a value added for producers going
• This type of hydrogen production is more price stable and produces zero emissions.
• And I think from a functional, that CCA dollars could be used for this incentive fund.

Summary: The House Agriculture and Natural Resources Committee heard public testimony on Substitute Senate Bill 5971, which would create a green fertilizer incentive program to support low-carbon nitrogen fertilizer production in Washington. Committee staff and agency witnesses described the bill as implementing recommendations from a prior work group and said the Department of Agriculture and Ecology could develop the program, though Ecology recommended clarifying lifecycle emissions accounting, defining green fertilizer, and tying incentives to emissions reductions. Supporters, including a labor representative, Atlas Agro, NRDC, and TRIDEC, said the bill could reduce emissions, stabilize fertilizer prices for farmers, create jobs, and help Washington capture federal hydrogen tax credits. The committee also heard testimony on Substitute Senate Bill 6097, which would add federally recognized Indian tribes as eligible participants in the Conservation Futures Program; tribal, county, and land trust witnesses said the change would improve conservation partnerships, reduce transaction complexity, and better support stewardship of open space, farmland, and habitat. Public testimony tallies were read into the record for both bills, with strong support and opposition noted on each. After the hearings, the committee took up executive session on three bills. Senate Bill 5919, encouraging fire districts and insurers to create voluntary incentives for wildfire mitigation and agricultural activities, was moved out of committee with a due pass recommendation on a 10-0 vote with one excused. Senate Bill 5816, adding juice grapes as a covered agricultural product under the Agricultural Marketing and Fair Practices Act, was also reported out with a due pass recommendation on a 10-0 vote with one excused. The committee deferred action on engrossed substitute Senate Bill 5838, which concerns membership on the Board of Natural Resources and includes tribal representation; staff explained a proposed amendment would reduce tribal seats to one and alternate east-west representation by term. The chair announced the next day’s hearing would start at 9 a.m. and reminded members to submit any amendments by 6 p.m. that evening.

Transcript Highlights:

• and the excess that we produce.
• up directly in producers' pockets in recognition of the climate-smart practices that they're producing
• So we need to think about the incentives and ways to stabilize our markets for our producers.
• So OK Produce is the produce distributor who sells to Mother's Nutritional Center.
• There's also going to be incentives and training that's funded by the California Nutrition Incentive

Summary: The joint oversight hearing focused on food insecurity in California and how state and federal nutrition programs, agricultural production, and food distribution systems intersect. Assemblymembers emphasized that many Californians, including farmworkers, seniors, children, and communities of color, remain food insecure despite California’s agricultural abundance. Panelists and members discussed CalFresh, WIC, school meals, Sun Bucks, food banks, and the impact of federal policy changes, including possible nutrition cuts, tariffs, and immigration enforcement, on access to food and the agricultural workforce. Secretary Karen Ross described CDFA programs aimed at improving access to fresh food and supporting local agriculture, including the senior farmers’ market program, California Nutrition Incentive Program, Healthy Refrigeration Grant Program, Community Food Hubs, Farm to School, urban agriculture, and a proposed tribal food sovereignty program. She said these efforts help connect local producers to consumers, expand healthy food access, and build infrastructure such as refrigeration, mobile markets, and aggregation hubs. Department of Social Services Deputy Director Alexis Fernandez Garcia outlined CalFresh, CFAP, Sun Bucks, CACFP, emergency food programs, and tribal nutrition assistance, noting that CalFresh and related programs significantly reduce poverty and food insecurity, but participation gaps remain for non-English speakers, some Asian American communities, and undocumented households. PPIC researcher Tess Thorman presented data showing that 13% of California households experienced food insecurity in 2023, with higher rates among households with children and Latino, Black, and other households. She said nutrition programs reduce poverty and food hardship, but federal rules, income thresholds, immigration restrictions, and high living costs limit their reach. Members asked about simplifying applications, improving call center access, increasing outreach in multiple languages, and adjusting benefits for inflation. Officials said the state has used available federal options to streamline enrollment, improve customer service, and target outreach, but many core rules and benefit levels are set federally. The second panel shifted to food production and market access. A farmer, a UC food systems leader, and a produce distributor described efforts to connect small and medium farms with food banks, schools, universities, and Medi-Cal food-as-medicine programs. They highlighted programs such as Farms Together, the USDA Southwest Regional Food Business Center, Farm to School, food hubs, and climate-smart infrastructure grants as ways to create stable markets for local growers while improving food access. Speakers also raised concerns about land tenure, consolidation, regulatory burdens, labor constraints, and the loss of federal funding, and members discussed whether state investments and Prop. 4 funds could help sustain and expand these efforts.

Transcript Highlights:

• The base incentive range is now between 5% to 25%.
• This is very much a performance-based process. ...incentive.
• to produce here.
• And finally, the I in incentive—the I in the incentive.
• This is my illustrious producer, Chris.

Bills: HB4568 , HB5458 , HB4543 , HB2703 , HB3728 , HCR113 , HCR126

Committee: House Culture, Recreation & Tourism

Keywords: film industry, incentives, grants, Texas, moving image, economic development, production companies, content standards, HB 5458, Texas Parks and Wildlife Department, TPWD, chronic wasting disease, CWD, cervids, deer, elk, moose, wildlife management, game animals, disease management

Transcript Highlights:

• Put simply, the program design rewards fuel producers who produce larger volumes of low-carbon fuels.
• Fuel producers bring clean fuels to California, leveraging incentives from this complementary federal
• incentives.
• It's not producing any emissions at all, but it could be very expensive and very hard to produce volumes
• fuel producer.

Summary: The hearing focused on California’s Low Carbon Fuel Standard (LCFS), its role in reducing transportation emissions, and whether its costs at the pump are justified by its climate, air quality, and investment benefits. The co-chairs and several members framed the discussion around affordability and asked whether the program’s benefits, including cleaner fuels, zero-emission vehicle infrastructure, and public health gains, outweigh any added fuel costs. Members also raised concerns about how the program is understood by the public and whether its benefits are being communicated clearly. CARB and CEC officials explained how LCFS works as a market-based program that sets declining carbon-intensity targets, generates credits for lower-carbon fuels, and requires deficit holders to buy credits or otherwise comply. They said the program has driven billions in annual private investment, expanded alternative fuels, supported EV charging and hydrogen stations, and helped reduce emissions and local pollution. They also argued that LCFS credit prices are not the main driver of gasoline prices, that the recent amendments added only about seven cents per gallon, and that crude oil, refining, and distribution costs account for most pump price variation. Committee members pressed witnesses on credit banking, market effects, the recent rule updates, additionality, and whether the program’s benefits are concentrated in-state or out-of-state. CARB said banking helps keep the program cost-effective and provides investment certainty, while the Energy Commission said LCFS-related costs are relatively stable and separate from the broader gasoline market. The panel also discussed how the 2025 amendments were shaped by the state’s 2030 and 2045 climate goals and by uncertainty over federal actions. No votes or formal actions were taken during the portion of the hearing provided.

Transcript Highlights:

• Um, as of February 2025, there are about 14 producers participating in the bio incentive programs.
• Uh the bio incentive incentive payments.
• Um, as of February 2025, there are about 14 producers participating in the bio incentive programs. requires
• participating in the bio producers participating in the bio incentive<00:01:50.560><c> programs.
• </c> incentive programs. incentive programs.

Bills: HF858 , HF2577 , HF2576

Committee: House Agriculture Finance and Policy

Transcript Highlights:

• It's the highest-cost-to-produce state in the nation also.
• So we have a very high cost structure to produce milk.
• to produce optimum production levels, that's the answer.
• So in a fluid market, we have to produce for the market.
• to consumers. ...from producers to consumers.

Committee: Senate Agriculture

Summary: The Committee on Agriculture convened, took roll, and heard Senate Bill 58 by Senator Harrow, which would create regulation for companion animal cremation. Harrow described a case involving mishandled pet remains and said the bill would require written service descriptions, prohibit false or misleading statements, require certification with returned remains, authorize Department of Agriculture and Consumer Services rulemaking, and impose civil penalties for violations. With no questions or public opposition, the committee voted the bill favorably. The committee then heard presentations on robotics in agriculture and aquaculture. Dr. Nathan Boyd of UF/IFAS discussed the rapid growth of agricultural robotics, including AI-driven weed detection, targeted spraying, autonomous tractors, and harvesting technology, emphasizing reduced pesticide use, lower input costs, and labor-saving automation. Dr. Nicole Kirchoff of Live Advantage Bait and Adrian Johnson of the Florida Shellfish Aquaculture Association highlighted aquaculture’s economic and environmental value, Florida’s strong position in the industry, and challenges including hurricane losses, lack of insurance, land-use instability, capital access, and water quality. They urged support for working waterfronts, risk mitigation, and policies to help the sector commercialize and expand. The committee also heard from dairy producers Kevin Lusher and Jacob Larson. Lusher described his family’s dairy and artisan cheese business, noting reliance on USDA grants, rising costs, labor shortages, and regulatory burdens, and asked for more grant support, marketing for Fresh From Florida products, and permanent funding for Farmers Feeding Florida. Larson discussed the broader dairy market, declining herd sizes due to efficiency gains, high production costs in Florida, and competition from out-of-state processing, suggesting incentives for local processing and supply management. Finally, FDOT Chief Planner Wayway Schen presented on arterial and local road funding programs, including ART, ARTW, SCOP, SCRAP, CIGP, and TRIP, and said rural road needs remain significant, with more than $16 billion in unfunded or partially funded project needs. The committee adjourned after brief discussion and thanks to the presenters.

Transcript Highlights:

• The North Dakota University System will be tasked with producing an annual list of low-producing programs
• , and the recommendation of the... ...system will be tasked with producing an annual list of low-producing
• But there's not an incentive factor.
• But there's not an incentive factor.
• Is this over-inclusive in this incentive pool?

Summary: The committee met to discuss higher education funding and capital building policy. Members first heard an update from NDUS Deputy Commissioner Lisa Johnson on low-producing academic programs. She described a proposed board policy using a five-year rolling window and thresholds of fewer than 10 undergraduate graduates or fewer than 5 graduate graduates, with programs flagged for three consecutive review periods going to the board. Possible outcomes would include continuation, continuation with modifications, inactivation, or termination. Members asked about how the review would account for program costs, service to other students, workforce demand, and the difference between inactivation and termination. Johnson said the board would consider broader factors and that campuses already do detailed program analysis. Several members also asked about cost savings and staffing impacts from program terminations, and Johnson said the board would try to provide more information later. The committee then received a report on the Capital Building Fund from Jamie Wilkie. He reviewed the program’s history, matching requirements, and recent uses, noting that about $334 million in state and matching dollars has been invested overall, with most going to deferred maintenance and extraordinary repairs. Members discussed whether the program is reducing deferred maintenance and requested updated systemwide data on deferred maintenance and campus space utilization. Wilkie said the board is considering a new study to update deferred maintenance figures, which are based on information more than 12 years old. He also reported that several institutions have used current biennium funds for projects such as residence hall renovations, health sciences housing, generators, and building repairs. Later, the committee began a detailed walkthrough of a draft bill that would replace the current higher education funding formula with an FTE-based model and also revise the capital building fund structure. The draft would use fall enrollment FTEs, add completion incentives for degrees in in-demand fields, and create a separate research funding component for UND and NDSU tied to doctoral completions and external research expenditures. Members raised concerns about the use of older data in the formula, the treatment of waivers, the weighting of professional and health sciences programs, and the use of CIP codes to define CTE and education incentives. The bill draft would also combine capital building fund tiers, broaden eligible uses for deferred maintenance and legislatively authorized projects, change matching requirements, repeal the old formula chapter and the capital pool, and transfer funds from the Strategic Investment and Improvements Fund into the capital building fund. No final votes were taken during the portion provided; the meeting was primarily discussion and review.

Transcript Highlights:

• There is an incentive to create those jobs.
• There is an incentive to create those jobs.
• There is an incentive to create those jobs.
• And how we can keep this incentive going.
• When we, when the sunset on the last incentive, so I've been around to have the last incentive, no incentive

Committee: House Joint Committee on Rural Economic Development

Summary: The Committee on Economic Development met with a quorum and first went into executive session, where it adopted a House committee substitute and voted House Bill 1716 due pass by a 13-0 vote, House Bill 2474 due pass by a 15-0 vote, and House Bill 2693 due pass by a 12-2 vote with one present. The committee then moved into public hearings. House Bill 3095, sponsored by Rep. Brown, would extend the business facility tax credit. Brown and witnesses from Burns & McDonnell and business groups said the credit supports retention and expansion of high-paying jobs in Missouri, especially in Kansas City, and helps the company plan future growth. No opposition was offered, and the hearing closed after several supportive witnesses testified. House Bill 3249, sponsored by Rep. Harzusa, would extend the jet fuel sales tax exemption for common carriers from 2033 to 2043 to support the planned redevelopment of St. Louis Lambert International Airport. Witnesses said the exemption helps encourage airline investment in a multi-billion-dollar airport project, and the bill drew support from regional business groups with no opposition. House Bills 2142 and 2058, sponsored by Reps. Wellenkamp and Vernetti, would combine the Missouri motion media tax credit’s two $8 million buckets into one $16 million pool and extend the sunset to 2035. Sponsors and industry witnesses said the change would improve competitiveness, support film and TV production, and help build long-term infrastructure and jobs; supporters included film office representatives, chambers of commerce, and local governments, with no opposition testimony. House Bill 2886, sponsored by Rep. Riggs, would update Missouri broadband law by raising speed standards, extending the state broadband office sunset, and addressing future federal broadband funds and provider defaults. Riggs argued the bill is needed to keep pace with AI and modern internet use and to recover federal funds; supporters from AARP and the broadband office emphasized the need for better service and longer timelines. Industry groups opposed parts of the bill, especially the exclusion of cable and concerns about overbuilding and overly strict speed requirements, while the broadband director said the sunset extension and future service needs should be considered. The committee adjourned after the hearing on HB 2886.

Transcript Highlights:

• </c><00:08:35.200><c> is</c> the actually ky's um incentive is the actually ky's um incentive is stronger
• </c><00:16:08.680><c> statute</c> was used within the incentive statute was used within the incentive
• Well, Spectrum News spoke with one of the producers of that movie, and this producer said the state's
• So, how do these incentives work?
• These aren't incentives.

Summary: The committee first took up Senate Bill 1, which would create a Kentucky Film Office and a Kentucky Film Leadership Council to promote film production in the state. Sponsors said the bill is intended to expand Kentucky’s use of film tax incentives, improve marketing and infrastructure, and attract productions that could generate jobs, tourism, and broader economic development. They noted a committee substitute made two changes: adding a salary cap for the film office executive director and correcting a date. Members asked about whether the office should instead be housed in the Economic Development Cabinet, how Kentucky’s refundable credit compares with Georgia’s transferable credits, the bill’s obscenity language, the size of the current incentive cap, and whether there should be reporting on the program’s results. Supporters cited a University of Louisville study estimating about $200 million in industry revenue in 2022 and argued the state is not fully using existing credits; an outside witness, Andrew McNeel, opposed the bill, calling the incentives subsidies, warning that Georgia’s uncapped program could lead to pressure to raise Kentucky’s cap, and arguing the bill could subsidize films with little lasting local benefit. After debate, the committee adopted the substitute and passed Senate Bill 1 as amended by House Committee Substitute 1 with an expression of opinion that it should pass. Several members explained their votes, including concerns about transparency, local hiring, and the need for further review. The committee then moved on to Senate Bill 76, which would raise the threshold for a retainage/escrow requirement in certain real estate improvement contracts from $500,000 to $2 million. The sponsor said the change is meant to reflect construction cost inflation since the statute was enacted in 1990. The transcript indicates a motion and second were made, but the discussion was cut off before any final action on the bill is shown. Finally, the committee heard Senate Bill 162, a simplified bill on unemployment insurance fraud. The sponsor said it would require suspected fraud to be referred to the appropriate state or federal law enforcement authorities, including the Justice and Public Safety Cabinet, county or Commonwealth’s attorneys, and, where applicable, the U.S. Department of Justice, to create a clearer process and accountability. The transcript ends during the presentation, before any vote or committee action on SB 162 is recorded.

Transcript Highlights:

• The North Dakota University System will be tasked with producing an annual list of low-producing programs
• and the recommendation of the... ...system will be tasked with producing an annual list of low-producing
• The past formula did not have any incentives for research.
• But there's not an incentive factor.
• But there's not an incentive factor.

Committee: Joint Higher Education Funding Review Committee

Transcript Highlights:

• So normally we'll start growing produce.
• </c><00:14:59.440><c> or</c> out maybe growing uh produce or out maybe growing uh produce or vegetables
• 11.760><c> um</c><00:20:12.000><c> over</c> incentive programs totaling um over incentive programs totaling
• </c> youth a incentive programs at 25,000. youth a incentive programs at 25,000. five<00:20:21.600><c
• </c> $2 million, one horiculture incentives $2 million, one horiculture incentives loan<00:20:35.200>

Summary: The committee met on September 18, 2025, approved the July 10 minutes, and received Brandon Reid’s monthly report on Kentucky agriculture development and finance activity for July and August. Reid emphasized the long-running structure created under House Bill 611 and Senate Bill 28, the role of county agriculture development councils in all 120 counties, and the importance of the program as a national model for supporting Kentucky agriculture. He also introduced new staff and interns, including a new loan programs manager, Rachel Coward, and project manager Kylie Davis. For July, the development board reported $3.4 million invested in agriculture and the finance corporation reported $3.1 million in loans. Highlights included 11 county council meetings, site visits, program reviews, and 18 project reports. July approvals included county agriculture incentive programs, deceased farm animal removal programs, youth incentive programs, county/state projects, infrastructure loans, an agriculture processing loan, and beginning farmer loans. Staff also noted that all 120 counties had submitted their required five-year comprehensive plans on schedule. Bill McCloskey then highlighted several funded projects, including Dino’s Farm LLC in Jefferson County, which received support to purchase a meat processing facility and equipment, with the goal of creating market opportunities for goat, sheep, and cattle producers and establishing Kentucky’s first halal meat processing facility. Other projects included a veterinarian facility project to address large animal vet shortages and Grow Appalachia at Berea College, which provides technical assistance and market support for small-scale and eastern Kentucky producers. Members discussed the need for programs such as high tunnels and other small-scale opportunities in rural areas, and staff noted related resources such as CAPE and NRCS funding. For August, the board reported $500,000 in development board investments and just over $3 million in finance corporation loans, along with fewer staff activities than July but continued county council, site visit, and project review work. August approvals included county agriculture incentive programs, deceased animal removal programs, youth incentive programs, county/state projects, agriculture infrastructure loans, beginning farmer loans, and a horticulture incentives loan. Additional project updates included another veterinary equipment purchase, emergency safety equipment in Graves County, and a food safety and efficiency incentive for Jared Cornet.