FINAL BILL REPORT

                     EHB 1883

PARTIAL VETO

                                 C 145 L 91

Brief Description:  Encouraging gasohol.

By Representatives R. Meyers, Chandler, Grant, Nealey, Hochstatter, McLean, Vance, Riley, Bray, Paris, Jacobsen, May, Betrozoff, Wynne, Moyer, D. Sommers and Rasmussen.

House Committee on Energy & Utilities

House Committee on Transportation

Senate Committee on Energy & Utilities

Background:  Gasohol, 90 percent gasoline and 10 percent ethanol, reduces dependency on imported oil; uses indigenous, renewable feedstocks; and causes less air pollution when burned.

A number of financial incentives have been established to encourage production of ethanol for use in gasohol and to encourage gasohol distribution.  Among these incentives is the exemption of motor vehicle fuel alcohol manufacturers and gasohol distributors from the business and occupation tax and the partial exemption of these manufacturers and distributers from motor vehicle fuel tax until December 31, 1992.

Summary:  The motor vehicle fuel tax exemption is continued until December 31, 1999.

The director of the Department of Agriculture, with the concurrence of the Department of Ecology, may grant a variance from the American Society for Testing Materials (ASTM) standards for motor vehicle fuels if necessary to produce a fuel with lower emissions.

Votes on Final Passage:

House 98    0

Senate   44    0     (Senate amended)

House 94    0     (House concurred)

Effective:     July 28, 1991

Partial Veto Summary:  The section authorizing the variance from ASTM standards is removed because the same authorization is contained in the Clean Air Bill.