WA SB5601

Establishes a competitive grant program for alternative jet fuels infrastructure, supporting research, development, production facilities, and blending infrastructure such as rail spurs, barging facilities, and fuel loading equipment

Creates property tax and leasehold tax exemptions beginning July 1, 2029 for alternative jet fuel manufacturing and blending facilities, valid for 10 years and expiring December 31, 2047; exemptions require fuel to have at least 50% less CO2 emissions than conventional jet fuel

Expands existing clean energy tax deferrals (minimum $2 million investments) to include alternative jet fuel production and fueling infrastructure

Prohibits Department of Ecology from adopting rules restricting pipeline flow or geographic origin of biomethane used as feedstock for alternative jet fuel production

Requires Department of Commerce to report by June 1, 2026 on feedstock availability for alternative jet fuels, and Department of Ecology to explore nonproject environmental impact statements for alternative jet fuel production pathways by June 30, 2027