The 2025 legislative session was mostly positive for AWC’s public works and infrastructure priorities given the state’s fiscal challenges, with cities’ advocacy playing a key role in helping to keep intact ongoing funding for the Public Works Assistance Account (PWAA).

Lawmakers once again took funds from the PWAA to help address a budget shortfall, but they did not advance a proposal in SB 5804 to permanently divert the account’s principal revenue streams to fund the state’s obligation to remove fish-passage-blocking culverts.

They also expanded cities’ ability to use real estate excise tax revenue for capital needs (HB 1791) and passed a capital budget (SB 5195) investing an additional $100 million in the Connecting Housing and Infrastructure Program.

While AWC does not welcome this year’s PWAA sweep of $288 million on top of existing diversions, we appreciate that lawmakers offset the diversion by giving the Public Works Board $100 million in state construction bonds and authority to spend $265 million from the account, protecting existing commitments and enabling a new round of loans and grants. On May 9, shortly after sine die, the Board opened a call for applications for its construction funding program, making approximately $100 million available for FY 2026. Applications are due by August 8.

AWC also appreciates a capital budget provision increasing the cap on funding that the Board can provide to any jurisdiction for emergency public works projects in a biennium from $10 million to $12 million but had reservations about a provision indicating intent to limit reappropriations for projects that take longer than anticipated to move forward.

Most of the bills before the Legislature in 2025 involving public works and infrastructure were related to procurement. HB 1549 revises the “responsible bidder” criteria for contractors, excusing them from required training on public works and prevailing wage if they completed a recent project without a violation. The bill also requires an apprentice utilization plan, unless the bidder met utilization requirements on its last project.

Under HB 1633, a contractor on a public works project costing $1 million or more that involves HVAC, plumbing, or electrical work must now provide proof at the time of bid that the subcontractor doing that work is licensed—i.e., contractors will no longer be able to swap in a subcontractor up to 48 hours later if the original subcontractor cannot get the necessary license. HB 1967 lowers costs for design-build projects by removing the requirement to obtain a performance and payment bond for portions not involving construction, such as design and preconstruction services.

A handful of public works procurement-related bills did not pass this year but are likely to return, as legislators continue to push for more equitable, modern procurement practices and protections for small, disadvantaged businesses. One proposal requires public project owners to pay the prevailing wage in effect when work is performed rather than the rate at the time of bid (SB 5061). Another gives public entities greater flexibility to use in-house personnel instead of going to bid (HB 1966). A third bill tightens rules on prompt payment (SB 5176) to help small contractors who often struggle with challenges related to cash flow. Both HB 1966 and SB 5176 are the results of recommendations from the Capital Projects Advisory Review Board. Finally, a pair of bills require projects to “buy American” materials (HB 1256, HB 1726).

The Legislature passed two bills that directly affect city utilities. The first, SB 5627, which was the subject of ongoing and productive negotiations up to the end of the legislative session, modernizes the “call before you dig” law, notably adding a web-based option to the existing toll-free telephone locator service, requiring utility owners to provide “positive response,” and expanding the civil and criminal penalties excavators and facility operators face for violations. The outcome was the result of many compromises among excavators and public owners, with the support of the bill’s sponsor, the late Sen. Bill Ramos. The second bill, SB 5033 creates an unfunded mandate requiring local government wastewater treatment plants to test for per- and polyfluoroalkyl substances, or PFAS, in biosolids and provide samples to the Department of Ecology.

Finally, lawmakers passed two bills on electrician licensing, one that allows reciprocity for electrical inspectors coming from outside Washington (SB 5265) and another requiring certification for workers installing or maintaining electrical components at electric vehicle (EV) chargers located at public facilities (SB 5528).