On February 24, 2025, Washington Senate Bill 5710 was introduced, aiming to bolster the state's shipbuilding industry by incentivizing local construction of vessels. The bill proposes a 13 percent credit on bid proposals for vessels constructed within Washington, adjusted according to the proportion of construction completed in-state. This initiative seeks to address economic losses associated with out-of-state vessel construction, as highlighted by a 2016 study from the Washington Institute for Public Policy.
Key provisions of the bill include requirements for contractors to adhere to apprenticeship standards and water pollution control laws, ensuring compliance with both state and federal regulations. Additionally, for contracts utilizing federal funds, contractors must meet disadvantaged business enterprise targets, promoting inclusivity within the industry. The bill also mandates that contractors based in Washington comply with small business enterprise goals.
A significant aspect of SB 5710 is the employment of third-party experts to oversee project quality and provide semiannual reports to legislative committees. These experts will assist in managing change orders and offer technical advice, ensuring that projects align with budget and schedule expectations.
The introduction of SB 5710 has sparked discussions among lawmakers regarding its potential economic impact and the importance of supporting local businesses. Proponents argue that the bill could revitalize the state's shipbuilding sector, create jobs, and enhance the quality of vessels produced. However, some critics express concerns about the feasibility of the proposed credit and its implications for competition with out-of-state shipyards.
As the bill progresses through the legislative process, its outcomes could significantly influence Washington's maritime economy and the future of vessel construction in the state. Stakeholders are closely monitoring developments, anticipating further debates and potential amendments as the bill moves forward.