To create the Puget Sound Partnership as an independent state agency. The partnership would be lead by a 7 member commission and Executive Directed appointed by the Governor. The Commission would be responsible for setting goals for cleaning up Puget Sound by 2020. See companion SB 5372.   Official Text and Analysis.

To add additional non-voting members on the Leadership Council, defines the number of members of the Coordination Board, creates a minimum amount of local government representation on the Coordination Board, adds legislators and state-agency representatives as non-noting members of the Coordination Board, and changes the membership of the Science Advisory Committee.

To create the Puget Sound Recovery Account to fund the implementation of the Partnership's Action Agenda. All reporting is consolidated into one biennial State of the Sound Report and the triennial JLARC reviews are reduced to one JLARC review in 2011, and another in 2016. The Washington Academy of Sciences is involved in the appointment of the Science Advisory Committee. Specifies that the grant preference given to Puget Sound Partners for the Public Works Trust Fund and the Centennial Clean Water Act is a preference for specific projects included in the Action Agenda, and that projects not consistent with the Action Agenda are ineligible under the grant programs. Limits the grant preference given to Puget Sound Partners in the Centennial Clean Water Act to only projects addressing storm water or wastewater. Expands the grant preference, and grant limits, given to Puget Sound Partners for the Public Works Trust Fund and the Centennial Clean Water Act to also include additional grant programs.

To require the Action Agenda to include a historical analysis of the environmental health of Puget Sound.

To include in the Puget Sound Partnership's investigation into barriers to 2020 success an investigation into the impact human activities that remove biomass from marine waters.

To allow nonconformance with the action agenda when governmental entities use proper discretion when determining a lack of funds or legal authority, or conflicting existing authorities.

To change the assistance provided to local entities from technical assistance to nonregulatory guidance.

To make technical changes clarifying the scope of projects that must not be in conflict with the Action Agenda in order to receive grant funding.

To strike the original bill.