Washington Governor Seeks $5 Million Cut to Derelict Vessel Removal Program
Updated (2 articles)
Governor Proposes $5 Million Reallocation From Vessel Program The governor’s 2026 budget proposal would divert $5 million of the $8 million watercraft excise tax revenue to the state’s general fund, endangering the $17 million two‑year derelict‑vessel removal effort in Puget Sound [1]. The move is presented as a response to a projected $2.3 billion budget shortfall, aiming to avoid new sales or property taxes [1]. Officials warn the cut could halt progress on cleaning waterways and protecting marine habitats [1].
DNR Reports Record Removal but Growing Backlog The Washington Department of Natural Resources logged the removal of a record 411 abandoned boats over the past two years, a peak effort intended to improve water quality and marine life health [1]. Simultaneously, the agency added 375 new vessels to the removal list, many larger and more expensive to extract, expanding the backlog [1]. Without restored funding, the agency anticipates difficulty meeting the increased demand [1].
Environmental Officials Warn of Pollution Risks Public Lands Commissioner Dave Upthegrove highlighted that derelict vessels continuously leak trash, human waste, fuel, heavy metals, and plastics into Puget Sound [1]. These contaminants threaten critical species such as salmon and orcas, amplifying ecological concerns [1]. The commissioner stresses that sustained funding is essential to mitigate these ongoing environmental hazards [1].
Boating Community Reacts to Tax Diversion Proposal Owners of larger non‑commercial boats, who fund the excise tax, expect a cleaner environment and have expressed frustration over the proposed redirection of their contributions [1]. The boating community broadly supports the removal program but worries the cut will undermine water quality improvements [1]. Governor’s office argues the reallocation is a necessary first step in a longer fiscal adjustment process [1].
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Timeline
2025 – Washington’s recycling rate hovers around 50 percent, lagging behind states with container‑deposit systems that achieve higher recovery rates, underscoring the policy push for a new fee [2].
Jan 21, 2026 – Lawmakers introduce House Bill 1607, adding a 10‑cent refundable container fee to every beverage purchase, with drop‑off sites to be installed in retail parking lots statewide [2].
Jan 21, 2026 – Rep. Monica Stonier argues the fee “will clean up litter, protect waterways and marine life, and help farmers and fishermen whose livelihoods depend on a healthy environment” and could cut the state’s $12 million annual litter‑cleanup bill [2].
Jan 21, 2026 – The Washington Refuse & Recycling Association warns the fee will “raise prices on everyday items” amid inflation and claims producers may keep unclaimed deposits [2].
Feb 20, 2026 – Governor’s budget proposal redirects $5 million of the $8 million watercraft excise tax to the general fund, jeopardizing the $17 million two‑year derelict‑vessel removal program [1].
Feb 20, 2026 – DNR reports a record 411 abandoned boats hauled from Puget Sound in the past two years, but 375 new vessels join a backlog of 300‑plus awaiting extraction [1].
Feb 20, 2026 – Public Lands Commissioner Dave Upthegrove warns “derelict vessels leak trash, human waste, fuel, heavy metals and plastics, threatening salmon and orca populations” if removal stalls [1].
Feb 20, 2026 – Boating community leaders stress that owners of larger non‑commercial boats pay the watercraft excise tax expecting a healthier environment and are frustrated by the proposed diversion of those dollars [1].
Late 2026 (expected) – If House Bill 1607 passes, the 10‑cent fee takes effect, and statewide container‑return stations become operational, creating a new revenue stream for recycling programs [2].
2027 (projected) – The two‑year derelict‑vessel removal program is slated to conclude, contingent on securing the full $8 million excise‑tax funding; a shortfall could extend the timeline and increase environmental risks [1].