1832-S.E AMS  WILS 001

ESHB 1832 - S AMD 345

    By Senator Brown

                                              NOT ADOPTED 04/17/01

    On page 24, beginning on line 1, strike all of section 26 and insert the following:

    "NEW SECTION. Sec. 26.  A new section is added to chapter 82.16 RCW to read as follows:

    (1) The legislature intends to provide an incentive for water distribution businesses to help reduce their customers' use of water through measures such as:  Water conservation and outreach programs, distributing shower flow restrictors, toilet tank water displacement devices, and leak detection dye tablets; providing water-efficient fixtures at no cost, giving a rebate for customer-purchased fixtures, or arranging for suppliers to provide fixtures at a reduced price; providing plants for low-water demand landscaping, moisture sensors, flow timers, low-volume sprinklers, and drip irrigation systems; and using conservation pricing and billings that show percentage increase/decrease in water use over the same period from the previous year.

    (2) There is allowed a credit against the tax imposed under RCW 82.16.020 equal to two and five-tenths percent of those amounts expended to improve consumers' efficiency of water use or to otherwise reduce the use of water by the consumer when the expenditures are implementing elements of the conservation plan within a state approved water system plan or a small water system management program.

    (3) There is allowed a credit against the tax imposed under RCW 82.16.020 equal to two and five-tenths percent of the amounts received for water services supplied by an entity that holds a permit under RCW 90.46.030 when the water supplied is reclaimed water as defined in RCW 90.46.010.

    (4) No credit may be taken under subsections (1) or (2) of this section unless the credit is first approved by the department.  Application for tax credits under subsections (1) and (2) of this section may only be made in the form and manner prescribed by the department.  The department shall keep a running total of all credits authorized under subsections (1) and (2) of this section during each fiscal year.  The department shall not allow any credits which would cause the total to exceed two hundred fifty thousand dollars in any fiscal year.  Credits allowed under this subsection may be carried over until used.

    (5) No credits may be authorized under this section after June 30, 2003."

EFFECT: Provides a public utility tax credit equal to 2.5 percent of amounts expended to improve consumers' efficiency of water use and 2.5 percent of revenues from water services using reclaimed water.  The credit is the equivalent to a deduction of 50 percent of those amounts.  Total tax credits per fiscal year are limited to $250,000.

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