Washington ferry fleet electrification costs could exceed $4.4 billion

Washington State Ferries (WSF) is facing significant financial challenges, with an estimated $5.5 billion in long-term unfunded needs, primarily due to the electrification of its ferry fleet. The agency has requested $751 million for its operating budget and $1.1 billion for its capital budget for the 2025-2027 biennium, which is still $230 million short of what is necessary to maintain operations. The electrification initiative alone is projected to cost $4.4 billion, accounting for 80% of WSF's unfunded needs. To address these needs, WSF plans to build four new ferries at a cost of $1.1 billion and seven new electric ferries, estimated at $2.8 billion. Each electric vessel is expected to cost around $400 million, and WSF aims to add one new electric vessel annually to replace retiring older ferries. Additionally, over $352 million is needed to electrify 11 terminals, although this figure may rise as predesign studies progress. The agency's financial strategy includes utilizing revenue from the Climate Commitment Act, which allocated $3.2 billion for the 2023-25 biennium. This funding will support various projects, including the conversion of existing ferries to hybrid-electric systems and the development of new electric ferries for specific routes. WSF emphasizes the importance of terminal electrification to fully realize the benefits of the new vessels. The agency's Senior Director of Finance highlighted the critical role of the ferry system in serving the Puget Sound area, underscoring the urgency of addressing these funding gaps to ensure continued service and modernization of the fleet.