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OLYMPIA – A planned sustainable aviation fuels (SAF) production facility being developed by SkyNRG Americas in Walla Walla has been awarded a new $1.5 million grant from the Washington State Department of Commerce. The Port of Walla Walla secured the grant from the Governor’s Economic Development Strategic Reserve Fund through Commerce to assist the project at the Port’s Wallula Gap Industrial Park. 

The SkyNRG Americas facility will produce SAF and renewable diesel using feedstocks such as renewable natural gas (RNG), dovetailing with Washington state’s commitment to advancing sustainable fuel technologies and attracting innovative companies to the region.

It is anticipated that the project will create up to 600 jobs during construction and about 100 jobs once production begins.

“Sustainable aviation fuels are central to the evolving global aerospace industry, and we’re proud to be leading the way here in Washington state,” said Governor Bob Ferguson. “SkyNRG’s new facility will be an important economic driver in the region and throughout our state’s innovative clean energy and aerospace sectors.”

“This project aligns with our strategic growth priorities around clean technology and innovation,” said Joe Nguyen, Director of the Washington State Department of Commerce. “In addition to furthering Washington’s leadership in clean energy and sustainable aviation, it creates family-wage manufacturing jobs that strengthen the local economy and community.”

SkyNRG is a global leader in SAF. The company selected the Wallula Gap Industrial Park, operated by the Port of Walla Walla, for their new project called Project Wigeon. This location enables SkyNRG to produce sustainable aviation fuel (SAF) on a commercial scale and supply it directly to major airports within the state, as well as to other West Coast markets with clean fuel standard policies.

“The Port of Walla Walla is proud to support SkyNRG’s investment, which helps to broaden our economic base while enhancing the strength and resilience of our community,” said Patrick Reay, Executive Director of the Port of Walla Walla. “This facility positions Walla Walla as a leader in sustainable aviation fuel while creating quality jobs and long-term economic benefits. SkyNRG’s presence underscores our commitment to innovation and attracting forward-thinking industries.”

SkyNRG anticipates producing 50 million gallons of SAF and renewable diesel annually, and has agreements already in place to purchase their fuels.

For context, Seattle-Tacoma International Airport dispenses about 600 million gallons of aviation fuel annually. The Port of Seattle has announced a goal to migrate 10% of that volume to SAF - about 60 million gallons per year - and to procure it from local, sustainable sources.

“We are excited to help expand American-made fuel production, as well as Washington state’s leadership in the global clean energy transition, said John Plaza, CEO SkyNRG Americas. We are also proud to bring new jobs to this community.”  

SkyNRG recently secured the Wallula Gap site with the Port, and the SEPA environmental checklist has been submitted to the Washington State Department of Ecology and Walla Walla County. The facility is anticipated to open in 2029.

OLYMPIA – With a rise in federal government layoffs, the Employment Security Department is helping affected federal employees apply for unemployment and get back to work.

The department is experiencing an increase in unemployment claims from federal employees this week, including 63 on Tuesday, Feb. 18.

• Thus far in 2025, 650 federal employees have filed unemployment claims compared to 479 at this time last year.
• Since Jan. 20, 362 federal employees have filed for unemployment (as of Feb. 18).
• 156 were filed over one five-day period (Feb. 13-18).
• The average rate of new unemployment claims from federal employees in 2025 is 14 per day.

“My administration is standing at the ready to support all Washington workers – including federal government employees impacted by chaos in the federal government,” said Governor Bob Ferguson. “We will help you get back on your feet.”

“We are ready to assist federal employees in these trying and uncertain times,” Employment Security Commissioner Cami Feek said. “Whether they are applying for unemployment benefits or need assistance in finding a new job, we’re here to help.”

Federal employees may be eligible for unemployment benefits if:

• Their official duty station was in Washington.
• They are a current Washington resident and their official duty station was outside the United States, or if they worked in Washington after their last federal employer.

Washington state has approximately 76,000 federal employees. Counties with the largest numbers are Kitsap (21,145), King (18,917) and Pierce (11,389), according to the latest Quarterly Census of Employment Wages data. Check out the latest data on Employment Security’s website.

More information about eligibility, applying for unemployment benefits as a federal employee and priority access for federal employees who are military veterans is available at Employment Security’s website.

Federal employees seeking new jobs and careers can visit one of the more than 30 WorkSource offices around the state for specific services, such as job listings and referrals, hiring events, resume and job applications assistance and trainings, among many others. Visit WorkSourceWA.com to find a location.

Employment Security is a partner with WorkSource Washington, a statewide partnership of state, local and nonprofit agencies that provide employment and training services to job seekers and employers. Learn more about WorkSource at WorkSourceWA.com.

Workers on public project were paid at least $18 per hour less than required by law

TUKWILA – Governor Bob Ferguson and the Washington State Department of Labor & Industries announced today that the Highway 99 tunnel subcontractor Glacier Northwest Inc. will pay more than $370,000 in back pay to dozens of employees it underpaid during work on the Seattle tunnel project.

Glacier Northwest paid the affected workers at least $18 per hour less than the fair wages required by law. The company must pay 46 employees, who are owed between $90 and more than $30,000, by July 31, 2025. The employees are getting back every dollar of their underpaid wages.

“Critical public projects depend on the hard work of Washingtonians,” Ferguson said. “My office will work in partnership with L&I to ensure employers uphold their obligations to those workers.”

“This settlement is going to get these workers the wages they earned,” said Joel Sacks, L&I Director. “It can be really challenging for workers, by themselves, to get money owed to them. L&I is here to make sure workers have someone fighting for them.”

L&I enforces the state’s prevailing wage law, which protects workers by setting wages for specific work on publicly funded construction projects. The law helps ensure that contractors have a level playing field when bidding on public projects.

Glacier Northwest contracted with Seattle Tunnel Partners, the public project’s prime contractor, for about $28 million. Glacier disposed of 2.2 million tons of dirt and other material the tunnel-boring machine Bertha excavated. The company took the dirt to the Mats Mats Quarry near Port Ludlow between 2012 and 2017.

Workers running cranes, skid loaders, dump trucks, dozers and excavators were paid $27.69–$31.34 per hour. As a public project, they should have received $49.48 per hour.

Lengthy litigation and settlement
In December 2018, L&I issued a notice of violation against the company, based on a complaint from the International Union of Operating Engineers Local 302. By 2023, after rising through the appeals process and COVID-caused delays, the matter reached the state Court of Appeals, which upheld that the work as part of a public project that should have paid prevailing wages.

L&I and Glacier entered into a legally binding resolution on Dec. 30, 2024.

Work to identify potential savings and efficiencies continues

OLYMPIA — On Day 43 of his administration, Governor Bob Ferguson proposed a plan to save approximately $4 billion. Ferguson’s proposals:

• Maintain all K-12 education investments, and adopt all of Governor Jay Inslee’s proposed investments, a total of more than $15 billion annually. Ferguson’s proposal increases the percentage of the budget devoted to K-12.
• Maintain all public safety investments from the current biennium, and adopt virtually all new investments from the Inslee budget.
• Maintain all investments to address homelessness and housing assistance from the current biennium, and adopt virtually all new investments from the Inslee budget. That totals more than $1.2 billion per biennium.
• Honor and maintain the Collective Bargaining Agreements negotiated with Washington’s hardworking public servants.
• Maintain all current cash benefit assistance programs that benefit Washingtonians, such as TANF – Temporary Assistance for Needy Families.
• Maintain Medicaid eligibility for all Washingtonians. Put another way, if you are a Washingtonian on Medicaid, you will not lose your state coverage.

Since taking office Jan. 15, Ferguson and his team have worked to identify and propose savings to help the Legislature address the state’s projected $15 billion budget shortfall. These savings are in addition to Governor Inslee’s proposal, which reduced the shortfall by an additional $3 billion. Combined, those proposals reduce the shortfall by $7 billion.

“Our state faces a historic budget shortfall,” Ferguson said. “This challenge demands thoughtful leadership and a commitment to fiscal responsibility. My team and I have scoured state spending for savings and efficiencies. We must prioritize while protecting the core needs of Washingtonians.”

Ferguson’s budget savings proposals are built on four key principles:

1. Good government efficiencies and reductions to ensure state agencies are running as lean as possible and right-sizing government. Many of these are reductions that should be made even if there was not a budget shortfall.
2. Given the budget situation, Ferguson very carefully examined proposed or adopted spending not yet implemented.
3. Reconsider recent spending. For example, investments made two years ago for the current biennium. If the Legislature knew two years ago that the state would be facing a $15 billion shortfall, legislators likely would not have made all of these investments.
4. During the COVID-19 pandemic, Washington received significant one-time funding from the federal government for various programs. Those one-time dollars are gone. In some circumstances, the state has backfilled those one-time dollars with ongoing general fund resources. Ferguson and his team took a close look at whether the state could take on those obligations for those federal dollars that were meant as a one-time investment during COVID.

Ferguson is also proposing $300 million in savings by requiring most state employees to take one furlough day per month for the next two years. Certain public employees will be exempt, including troopers patrolling our roads and staff working in our prisons and state hospitals.

Ferguson’s identified savings total $3,926,404,000. The full list of Ferguson’s current proposals is available here for the supplemental budget, and here for the 2025-27 biennium.

Good government efficiencies and reductions

Ferguson proposes reductions in government spending that do not directly impact vital services.

For example: During the emergency response to the COVID-19 pandemic, the Department of Health needed warehouse space for supplies. That warehouse is no longer necessary. Ending that lease saves $4.4 million over four years.

The Department of Ecology and State Parks are saving taxpayers $2.4 million over four years by consolidating and sharing office space.

The Forest Practices Board had funding allocated for rulemaking, but does not anticipate rulemaking in the next four years. Ferguson recommends moving that $1.1 million back to the general fund.

Due to declining population at the Special Commitment Center, Ferguson also recommends that the Department of Social and Health Services close one 24-bed unit and consolidate residents into the remaining units, saving nearly $4 million.

The Department of Services for the Blind pays for a certain number of spots in the young adult training programs at the School for the Blind in Vancouver, whether they are filled or not. Ferguson proposes that, if there are not Washingtonians who need those spots, the state opens eligibility to young people in Oregon. The Oregon Commission for the Blind will pay for any spots they fill, an anticipated $52,000 over four years.

Savings from this category also include a 50 percent reduction in out-of-state travel, a 25 percent reduction to in-state travel, and a 10 percent reduction in state agency spending on equipment and other goods and services.

Ferguson also proposes targeted reductions in state-funded marketing and outreach campaigns, as well as studies and task forces that are not essential to public safety or contributing to the social safety net.

Pausing or phasing in new spending

Ferguson recommends pausing or phasing in program expansions or rate increases that have not yet been implemented.

For example, Ferguson proposes saving $144 million by gradually expanding proposed rate increases paid to childcare centers over the next four years instead of increasing the rate all at once in July.

Scaling back recent spending decisions

Another category of savings involves scaling back major recent investments the Legislature adopted before the full scope of the budget crisis was clear.

For example, Washington went from spending $14 million per year as recently as 2021 on Foundational Public Health to spending more than $155 million per year. Ferguson proposes reducing that to $133 million annually.

Limiting replacement of one-time federal funding

Ferguson and his team also looked at programs where the federal government provided one-time funding. That funding is now gone, or soon will be, but in some cases the state has backfilled with ongoing general fund dollars.

For example, the Washington State Department of Agriculture provides assistance to food banks. As recently as 2019, that program received $12 million in general fund support, per biennium. During the pandemic, the state used one-time federal funds to temporarily increase the program. In the 2021-23 biennium, for example, $128 million in one-time federal dollars went into the program. As that federal funding has declined significantly, the Legislature invested substantial funding. Ferguson recommends limiting the general fund investment to $82 million for the next biennium.

Additional agency savings not included in Ferguson’s proposal

In response to Ferguson’s call for money-saving ideas, state agencies identified an additional $1 billion in potential budget savings that Ferguson does not recommend at this time. That information will be sent to the Legislature for their consideration, recognizing that no option can be off the table as work continues to bridge the budget gap.

SEATTLE – Governor Bob Ferguson announced today he will delay hybrid-electric conversion for two of the state’s largest ferries, putting Washington on the path to restoring full domestic ferry service by this summer. As a result of this plan, Washington State Ferries will have 18 operating vessels in the water for the first time since 2019.

Full domestic service is considered 21 vessels with 18 in the water at any time.

Ferguson is delaying the ferry conversion until after World Cup 2026, which is scheduled from June 26 through July 6. Converting the ferries removes them from service for an extended period of time. For example, the Wenatchee, the first Washington State Ferries vessel to undergo hybrid-electric conversion, will have been out of service at least 22 months by the time the conversion is completed this summer.

“Washingtonians count on fast, reliable ferries to get to work and access critical services,” Ferguson said. “We must do everything we can to fully restore ferry service to pre-pandemic levels. This decision immediately improves customer service and centers the people.”

Since the pandemic, Washington State Ferries has operated on a reduced schedule, significantly impacting Washingtonians who rely on ferry service. Right now, for example, commuters who travel by ferry between Bremerton and Seattle — one of the state’s busiest ferry routes — must wait more than two hours between boats every day. This action will improve those wait times.

Delaying the hybrid-electric conversion for the remaining two ferries prioritizes improved ferry service, especially ahead of major events like the World Cup in summer 2026.   

Continuing to move forward with new electric ferries

Ferguson is committed to building new electric ferries. The procurement process to acquire as many as five new electric ferries is in process. Washington State Ferries will open bids from prospective shipbuilders in early April and aims to sign a contract with at least one successful bidder by late May.

Elevating the head of Ferries

Additionally, Governor Ferguson announced that Steve Nevey, head of Washington State Ferries, has assumed the elevated role of Deputy Transportation Secretary. Nevey will work closely with Transportation Secretary Julie Meredith, attending Cabinet meetings to report directly to Ferguson and senior leadership about updates on improving ferry service statewide.

“Governor Ferguson’s decision to delay these hybrid-electric conversions is the first step toward achieving a long-term vision for improved ferry service in Washington,” Deputy Transportation Secretary Steve Nevey said. “Our work is not done, but this puts us on track to fully restore and maintain service levels Washingtonians rely on. I look forward to continued work with the Governor, his senior staff and the Legislature to address our dual challenges of modernizing our fleet and supporting our hardworking crews.”

Meeting with island communities

Before taking office, Governor Ferguson met with residents of Whidbey Island to discuss the challenges they face because of reduced ferry service. Riding a ferry to and from that meeting, Ferguson had the opportunity to visit a wheelhouse and engine room, hearing directly from the crew about their work.

The Governor also plans to continue meeting directly with communities affected by reduced ferry service levels. Ferguson is planning to meet with residents in the San Juan Islands on July 15. 

Supporting ferry workers

In addition to this delay, Washington State Ferries is exploring other ways to improve ferry service, which has also been affected by insufficient crews available to operate the vessels.  Washington State Ferries continues to prioritize workforce recruitment, retention and training efforts to help stabilize the system.

Ferguson is committed to honoring and supporting the compensation increases in the state’s collective bargaining agreements to address the workforce challenges. The collective bargaining agreements provide a total of more than $26 million for ferry worker compensation. Those agreements are with the Legislature. Ferguson has been clear that including those agreements in the final budget is essential.

Ferguson’s long-term strategy to acquire new vessels

Ferguson also announced that he is exploring innovative options for procuring new electric vessels after the state receives the next set of up to five vessels. After the new electric vessels are procured, Washington State Ferries will need to replace an additional 11 vessels before 2040 to keep the fleet modern and operating at full capacity.

Deputy Transportation Secretary Nevey and Transportation Secretary Meredith will work closely with the Legislature to explore innovative solutions for getting new boats in the water as quickly as possible. Among those options is leasing new ferries with the goal of eventually taking ownership.