CERTIFICATION OF ENROLLMENT
SENATE BILL 5008
Chapter 226, Laws of 2021
2021 REGULAR SESSION
BONNEVILLE POWER ADMINISTRATION FUNDS AND CREDITS—LOW-INCOME RATEPAYER ASSISTANCE—BUSINESS AND OCCUPATION TAX EXEMPTION
EFFECTIVE DATE: July 1, 2021
Passed by the Senate April 11, 2021
Yeas 47 Nays 1
President of the Senate
Passed by the House April 22, 2021
Yeas 97 Nays 0
Speaker of the House of Representatives
I, Brad Hendrickson, Secretary of the Senate of the State of Washington, do hereby certify that the attached is SENATE BILL 5008 as passed by the Senate and the House of Representatives on the dates hereon set forth.
Approved May 10, 2021 3:22 PM
May 10, 2021
Governor of the State of Washington
Secretary of State
State of Washington
SENATE BILL 5008
Passed Legislature - 2021 Regular Session
State of Washington
2021 Regular Session
BySenators Robinson, Short, Brown, Hasegawa, and Wilson, C.
Prefiled 12/09/20.Read first time 01/11/21.Referred to Committee on Environment, Energy & Technology.
AN ACT Relating to extending the business and occupation tax exemption for amounts received as credits against contracts with or funds provided by the Bonneville power administration and used for low-income ratepayer assistance and weatherization; amending RCW 82.04.310
; creating a new section; providing an effective date; and declaring an emergency.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 1. This section is the tax preference performance statement for the tax preference contained in section 2, chapter . . ., Laws of 2021 (section 2 of this act). This performance statement is only intended to be used for subsequent evaluation of the tax preference. It is not intended to create a private right of action by any party or be used to determine eligibility for preferential tax treatment.
(1) The legislature categorizes this tax preference as one intended to induce certain designated behavior by taxpayers, as indicated in RCW 82.32.808
(2)(a), and also to create low-income ratepayer tax and utility rate relief under RCW 82.32.808
(2) The legislature's specific public policy objectives are to:
(a) Increase investment in energy efficiency and conservation programs;
(b) Support efforts by utilities to acquire all cost-effective energy conservation and noncarbon-emitting energy resources as required under state law; and
(c) Increase funds dedicated to low-income ratepayer assistance and weatherization in Washington.
(3) To support the objectives in subsection (2) of this section, it is the legislature's intent to make permanent the exemption from business and occupation tax amounts received by utilities in the form of credits against power contracts or received from the Bonneville power administration for energy conservation purposes, if the tax savings are used by utilities for low-income ratepayer assistance or weatherization programs. This exemption will induce utilities to invest funds in energy conservation and efficiency programs, thereby reducing the amount of electric energy that such utilities must either generate or purchase, thereby reducing energy costs to utilities and customers. Further, state laws mandating utilities to acquire energy through both energy conservation and noncarbon-emitting resources can increase the cost of energy to ratepayers. Therefore, it is the legislature's intent that this exemption from the business and occupation tax apply only to the extent the tax amounts that would otherwise be owed on credits or refunds from the Bonneville power administration are used by a utility for low-income ratepayer assistance or weatherization, and that the funds generated for low-income ratepayer assistance or weatherization be additive to any existing funds used by the utility for those purposes.
(4) To measure the effectiveness of the exemption provided in this act in achieving the specific public policy objectives described in subsection (2) of this section, the joint legislative audit and review committee must, at a minimum:
(a) Evaluate the average annual investment in energy conservation projects by Washington state utilities that have power contracts with the Bonneville power administration; and
(b) Evaluate the average additional funds from the tax savings resulting from this act that are dedicated to low-income ratepayer assistance and weatherization by Washington state utilities that have power contracts with the Bonneville power administration.
and 2019 c 202 s 2 are each amended to read as follows:
(1) This chapter does not apply to any person in respect to a business activity with respect to which tax liability is specifically imposed under the provisions of chapter 82.16
RCW including amounts derived from activities for which a deduction is allowed under RCW 82.16.050
. The exemption in this subsection does not apply to sales of natural gas, including compressed natural gas and liquefied natural gas used or sold to manufacture transportation fuel, and renewable natural gas, by a gas distribution business, if such sales are exempt from the tax imposed under chapter 82.16
RCW as provided in RCW 82.16.310
(2) This chapter does not apply to amounts received by any person for the sale of electrical energy for resale within or outside the state.
(3)(a) This chapter does not apply to amounts received by any person for the sale of natural or manufactured gas in a calendar year if that person sells within the United States a total amount of natural or manufactured gas in that calendar year that is no more than twenty percent of the amount of natural or manufactured gas that it consumes within the United States in the same calendar year.
(b) For purposes of determining whether a person has sold within the United States a total amount of natural or manufactured gas in a calendar year that is no more than twenty percent of the amount of natural or manufactured gas that it consumes within the United States in the same calendar year, the following transfers of gas are not considered to be the sale of natural or manufactured gas:
(i) The transfer of any natural or manufactured gas as a result of the acquisition of another business, through merger or otherwise; or
(ii) The transfer of any natural or manufactured gas accomplished solely to comply with federal regulatory requirements imposed on the pipeline transportation of such gas when it is shipped by a third-party manager of a person's pipeline transportation.
(4) Until January 1, 2031, this chapter does not apply to amounts received by any person in the form of credits against power contracts with the Bonneville power administration, or funds provided by the Bonneville power administration, for the purpose of implementing energy conservation programs or demand-side management programs, so long as the amount that would otherwise be owed under this chapter is used for purposes of low-income ratepayer assistance or weatherization. The funds generated for low-income ratepayer assistance and weatherization under this subsection must be additive to and not supplant any existing funds used by the utility for low-income ratepayer assistance and weatherization.
NEW SECTION. Sec. 3. This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect July 1, 2021.
Passed by the Senate April 11, 2021.
Passed by the House April 22, 2021.
Approved by the Governor May 10, 2021.
Filed in Office of Secretary of State May 10, 2021.
--- END ---