S-1043.1 _______________________________________________
SENATE BILL 5492
_______________________________________________
State of Washington 57th Legislature 2001 Regular Session
By Senators Patterson, Carlson, Regala, Fraser, Horn, Haugen, Jacobsen and Kohl‑Welles
Read first time 01/24/2001. Referred to Committee on Environment, Energy & Water.
AN ACT Relating to providing incentives to reduce air pollution through the use of clean alternative fuel vehicles; amending RCW 70.94.030, 82.36.010, and 82.36.280; reenacting and amending RCW 82.36.025; adding new sections to chapter 70.94 RCW; adding new sections to chapter 82.04 RCW; adding a new section to chapter 82.08 RCW; adding a new section to chapter 82.12 RCW; repealing RCW 43.19.637 and 82.38.075; prescribing penalties; providing an effective date; and providing an expiration date.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 1. A new section is added to chapter 70.94 RCW to read as follows:
The legislature finds that Washington state faces threats to its economic vitality, public health, and environment from the ongoing and increasing use of gasoline and diesel fuels in motor vehicles. Motor vehicle emissions from petroleum fuels account for more than half of all air pollutants and almost sixty percent of total carbon dioxide emissions in Washington. The legislature finds it is important to begin addressing the negative impacts of continued gasoline and diesel fuel use. Addressing motor vehicle emissions is further needed because of the expected increases in population and vehicle miles traveled, which threaten to erode air quality gains made over the last decade. To make net progress in improving air quality, reducing the threat of climate change, and protecting public health and the environment, the legislature finds it is necessary to encourage the use of clean alternative fuel vehicles.
Sec. 2. RCW 70.94.030 and 1993 c 252 s 2 are each amended to read as follows:
Unless a different meaning is plainly required by the context, the following words and phrases as hereinafter used in this chapter shall have the following meanings:
(1) "Air contaminant" means dust, fumes, mist, smoke, other particulate matter, vapor, gas, odorous substance, or any combination thereof.
(2) "Air pollution" is presence in the outdoor atmosphere of one or more air contaminants in sufficient quantities and of such characteristics and duration as is, or is likely to be, injurious to human health, plant or animal life, or property, or which unreasonably interfere with enjoyment of life and property. For the purpose of this chapter, air pollution shall not include air contaminants emitted in compliance with chapter 17.21 RCW.
(3) "Air quality standard" means an established concentration, exposure time, and frequency of occurrence of an air contaminant or multiple contaminants in the ambient air which shall not be exceeded.
(4) "Ambient air" means the surrounding outside air.
(5) "Authority" means any air pollution control agency whose jurisdictional boundaries are coextensive with the boundaries of one or more counties.
(6) "Best
available control technology" (BACT) means an emission limitation based on
the maximum degree of reduction for each air pollutant subject to regulation
under this chapter emitted from or that results from any new or modified
stationary source, that the permitting authority, on a case-by-case basis,
taking into account energy, environmental, and economic impacts and other
costs, determines is achievable for such a source or modification through
application of production processes and available methods, systems, and
techniques, including fuel cleaning, clean fuels, or treatment or innovative
fuel combustion techniques for control of each such a pollutant. In no event
shall application of "best available control technology" result in
emissions of any pollutants that will exceed the emissions allowed by any
applicable standard under 40 C.F.R. Part 60 and Part 61, as they exist on July
25, 1993, or their later enactments as adopted by reference by the director by
rule. Emissions from any source utilizing clean fuels, or any other means, to
comply with this subsection shall not be allowed to increase above levels that
would have been required under the definition of BACT as it existed prior to
enactment of the (([federal])) federal clean air act amendments
of 1990.
(7) "Best available retrofit technology" (BART) means an emission limitation based on the degree of reduction achievable through the application of the best system of continuous emission reduction for each pollutant that is emitted by an existing stationary facility. The emission limitation must be established, on a case-by-case basis, taking into consideration the technology available, the costs of compliance, the energy and nonair quality environmental impacts of compliance, any pollution control equipment in use or in existence at the source, the remaining useful life of the source, and the degree of improvement in visibility that might reasonably be anticipated to result from the use of the technology.
(8) "Board" means the board of directors of an authority.
(9) "Clean alternative fuel vehicle" means a motor vehicle, as defined in RCW 46.04.320, designed to operate exclusively on alternative fuels; or a hybrid vehicle powered by a combination of an electric motor and an engine powered by gasoline, diesel, or an alternative fuel; or a fuel cell vehicle powered by gasoline or an alternative fuel. Vehicles less than twelve thousand pounds gross vehicle weight must also meet or exceed the federal emission standards for ultralow emission vehicles. For purposes of this subsection, alternative fuels are defined as natural gas, propane, hydrogen, and electricity.
(10) "Control officer" means the air pollution control officer of any authority.
(((10))) (11)
"Department" or "ecology" means the department of ecology.
(((11))) (12)
"Emission" means a release of air contaminants into the ambient air.
(((12))) (13)
"Emission standard" and "emission limitation" mean a
requirement established under the federal clean air act or this chapter that
limits the quantity, rate, or concentration of emissions of air contaminants on
a continuous basis, including any requirement relating to the operation or
maintenance of a source to assure continuous emission reduction, and any
design, equipment, work practice, or operational standard adopted under the
federal clean air act or this chapter.
(((13))) (14)
"Lowest achievable emission rate" (LAER) means for any source that
rate of emissions that reflects:
(a) The most stringent emission limitation that is contained in the implementation plan of any state for such class or category of source, unless the owner or operator of the proposed source demonstrates that such limitations are not achievable; or
(b) The most stringent emission limitation that is achieved in practice by such class or category of source, whichever is more stringent.
In no event shall the application of this term permit a proposed new or modified source to emit any pollutant in excess of the amount allowable under applicable new source performance standards.
(((14))) (15)
"Modification" means any physical change in, or change in the method
of operation of, a stationary source that increases the amount of any air
contaminant emitted by such source or that results in the emission of any air
contaminant not previously emitted. The term modification shall be construed
consistent with the definition of modification in Section 7411, Title 42,
United States Code, and with rules implementing that section.
(((15))) (16)
"Multicounty authority" means an authority which consists of two or
more counties.
(((16))) (17)
"New source" means (a) the construction or modification of a
stationary source that increases the amount of any air contaminant emitted by
such source or that results in the emission of any air contaminant not
previously emitted, and (b) any other project that constitutes a new source
under the federal clean air act.
(((17))) (18)
"Permit program source" means a source required to apply for or to
maintain an operating permit under RCW 70.94.161.
(((18))) (19)
"Person" means an individual, firm, public or private corporation,
association, partnership, political subdivision of the state, municipality, or
governmental agency.
(((19))) (20)
"Reasonably available control technology" (RACT) means the lowest emission
limit that a particular source or source category is capable of meeting by the
application of control technology that is reasonably available considering
technological and economic feasibility. RACT is determined on a case-by-case
basis for an individual source or source category taking into account the
impact of the source upon air quality, the availability of additional controls,
the emission reduction to be achieved by additional controls, the impact of
additional controls on air quality, and the capital and operating costs of the
additional controls. RACT requirements for a source or source category shall
be adopted only after notice and opportunity for comment are afforded.
(((20))) (21)
"Silvicultural burning" means burning of wood fiber on forest land
consistent with the provisions of RCW 70.94.660.
(((21))) (22)
"Source" means all of the emissions units including quantifiable
fugitive emissions, that are located on one or more contiguous or adjacent
properties, and are under the control of the same person, or persons under
common control, whose activities are ancillary to the production of a single
product or functionally related group of products.
(((22))) (23)
"Stationary source" means any building, structure, facility, or
installation that emits or may emit any air contaminant.
NEW SECTION. Sec. 3. A new section is added to chapter 82.04 RCW to read as follows:
(1) Employers who are taxable under this chapter shall be allowed a credit for the purchase or lease of new clean alternative fuel vehicles as defined in RCW 70.94.030, if the vehicles are used in connection with business operations. The credit shall be based upon the following schedule:
VEHICLE TONNAGE CREDIT
Less than 12,000 pounds gross 25 percent of cost or $5,000,
vehicle weight whichever is less
Over 12,000 pounds gross 25 percent of cost or $20,000, vehicle weight whichever is less
(2) The credit may not exceed the amount of tax that would otherwise be due from the employer under this chapter. The maximum amount of credit under this section that may be claimed by an employer for any calendar year shall not exceed one hundred thousand dollars.
(3) Application for tax credit under this section may only be made in the form and manner prescribed in rules adopted by the department.
(4) The credit shall be taken not more than once quarterly and must be claimed by the due date of the last tax return for the calendar year in which the purchase is made.
(5) The department shall keep a running total of all credits granted under this section during each calendar year, and shall disallow any credits that would cause the tabulation for any calendar year to exceed two million dollars.
(6) Any person who knowingly makes a false statement of material fact in the application for a credit under subsection (1) of this section is guilty of a gross misdemeanor.
NEW SECTION. Sec. 4. A new section is added to chapter 82.04 RCW to read as follows:
(1) Employers who are taxable under this chapter and provide financial assistance for the purchase or lease of new clean alternative fuel vehicles as defined in RCW 70.94.030 to school districts, transit agencies, and local governments shall be allowed a credit for amounts paid, if the vehicles are used for public transit. School buses are considered public transit for purposes of this section.
(2) The credit may not exceed the amount of tax that would otherwise be due under this chapter. The maximum amount of the credit under this section claimed by each employer for any calendar year shall not exceed two hundred thousand dollars.
(3) Application for tax credit under this section may only be made in the form and manner prescribed in rules adopted by the department.
(4) The credit shall be taken not more than once quarterly and must be claimed by the due date of the last tax return for the calendar year in which the purchase is made.
(5) The department shall keep a running total of all credits granted under this section during each calendar year, and shall disallow any credits that would cause the tabulation for any calendar year to exceed two million dollars.
(6) Any person who knowingly makes a false statement of a material fact in the application for a credit under subsection (1) of this section is guilty of a gross misdemeanor.
NEW SECTION. Sec. 5. A new section is added to chapter 82.04 RCW to read as follows:
(1) Employers who are taxable under this chapter shall be allowed a credit for the development of alternative fuel and electric vehicle recharging infrastructure. For purposes of this chapter, alternative fuel infrastructure means dispensing equipment for natural gas, propane, hydrogen, fuel containing a minimum of eighty-five percent ethanol, fuel containing a minimum of twenty percent biodiesel, and electric recharging stations. The credit shall be based upon the following schedule:
(a) Fifty percent of the costs incurred for systems open to the public not to exceed two hundred thousand dollars; and
(b) Twenty-five percent of the costs incurred for systems not open to the public not to exceed one hundred thousand dollars.
(2) The credit may not exceed the amount of tax that would otherwise be due from the employer under this chapter. The maximum amount of credit under this section that may be claimed by an employer for any calendar year shall not exceed one million dollars.
(3) Application for tax credit under this section may only be made in the form and manner prescribed in rules adopted by the department.
(4) The credit shall be taken not more than once quarterly and must be claimed by the due date of the last tax return for the calendar year in which the infrastructure is developed.
(5) The department shall keep a running total of all credits granted under this section during each calendar year, and shall disallow any credits that would cause the tabulation for any calendar year to exceed five million dollars.
(6) Any person who knowingly makes a false statement of a material fact in the application for a credit under subsection (1) of this section is guilty of a gross misdemeanor.
NEW SECTION. Sec. 6. A new section is added to chapter 82.08 RCW to read as follows:
The tax imposed by this chapter shall not apply to the sale or lease of a new motor vehicle that meets the definition of a "clean alternative fuel vehicle" as provided in RCW 70.94.030.
NEW SECTION. Sec. 7. A new section is added to chapter 82.12 RCW to read as follows:
The provisions of this chapter do not apply to the use of any new motor vehicle that meets the definition of a "clean alternative fuel vehicle" as provided in RCW 70.94.030.
Sec. 8. RCW 82.36.010 and 1998 c 176 s 6 are each amended to read as follows:
The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
(1) "Alternative fuel" means natural gas, propane, hydrogen, electricity, fuels containing a minimum of eighty-five percent ethanol, and fuels containing a minimum of twenty percent biodiesel.
(2) "Blended fuel" means a mixture of motor vehicle fuel and another liquid, other than a de minimus amount of the liquid, that can be used as a fuel to propel a motor vehicle.
(((2))) (3)
"Bond" means a bond duly executed with a corporate surety qualified
under chapter 48.28 RCW, which bond is payable to the state of Washington
conditioned upon faithful performance of all requirements of this chapter,
including the payment of all taxes, penalties, and other obligations arising
out of this chapter.
(((3))) (4)
"Bulk transfer" means a transfer of motor vehicle fuel by pipeline or
vessel.
(((4))) (5)
"Bulk transfer-terminal system" means the motor vehicle fuel
distribution system consisting of refineries, pipelines, vessels, and
terminals. Motor vehicle fuel in a refinery, pipeline, vessel, or terminal is
in the bulk transfer-terminal system. Motor vehicle fuel in the fuel tank of
an engine, motor vehicle, or in a railcar, trailer, truck, or other equipment
suitable for ground transportation is not in the bulk transfer-terminal system.
(((5))) (6)
"Dealer" means a person engaged in the retail sale of motor vehicle
fuel.
(((6))) (7)
"Department" means the department of licensing.
(((7))) (8)
"Director" means the director of licensing.
(((8))) (9)
"Evasion" or "evade" means to diminish or avoid the
computation, assessment, or payment of authorized taxes or fees through:
(a) A knowing: False statement; misrepresentation of fact; or other act of deception; or
(b) An intentional: Omission; failure to file a return or report; or other act of deception.
(((9))) (10)
"Export" means to obtain motor vehicle fuel in this state for sales
or distribution outside the state.
(((10))) (11)
"Highway" means every way or place open to the use of the public, as
a matter of right, for the purpose of vehicular travel.
(((11))) (12)
"Import" means to bring motor vehicle fuel into this state by a means
of conveyance other than the fuel supply tank of a motor vehicle.
(((12))) (13)
"Licensee" means a person holding a license issued under this
chapter.
(((13))) (14)
"Marine fuel dealer" means a person engaged in the retail sale of
motor vehicle fuel whose place of business and/or sale outlet is located upon a
navigable waterway.
(((14))) (15)
"Motor vehicle fuel blender" means a person who produces blended
motor fuel outside the bulk transfer-terminal system.
(((15))) (16)
"Motor vehicle fuel distributor" means a person who acquires motor
vehicle fuel from a supplier, distributor, or licensee for subsequent sale and
distribution.
(((16))) (17)
"Motor vehicle fuel exporter" means a person who purchases motor
vehicle fuel in this state and directly exports the fuel by a means other than
the bulk transfer-terminal system to a destination outside of the state. If
the exporter of record is acting as an agent, the person for whom the agent is
acting is the exporter. If there is no exporter of record, the owner of the
motor fuel at the time of exportation is the exporter.
(((17))) (18)
"Motor vehicle fuel importer" means a person who imports motor
vehicle fuel into the state by a means other than the bulk transfer-terminal
system. If the importer of record is acting as an agent, the person for whom
the agent is acting is the importer. If there is no importer of record, the
owner of the motor vehicle fuel at the time of importation is the importer.
(((18))) (19)
"Motor vehicle fuel supplier" means a person who owns and stores
motor vehicle fuel in a terminal facility or who refines and stores motor
vehicle fuel at a refinery.
(((19))) (20)
"Motor vehicle" means a self-propelled vehicle designed for operation
upon land utilizing motor vehicle fuel as the means of propulsion.
(((20))) (21)
"Motor vehicle fuel" means gasoline and any other inflammable gas or
liquid, by whatsoever name the gasoline, gas, or liquid may be known or sold,
the chief use of which is as fuel for the propulsion of motor vehicles or
motorboats.
(((21))) (22)
"Person" means a natural person, fiduciary, association, or
corporation. The term "person" as applied to an association means
and includes the partners or members thereof, and as applied to corporations,
the officers thereof.
(((22))) (23)
"Position holder" means a person who holds the inventory position in
motor vehicle fuel, as reflected by the records of the terminal operator. A
person holds the inventory position in motor vehicle fuel if the person has a
contractual agreement with the terminal for the use of storage facilities and
terminating services at a terminal with respect to motor vehicle fuel.
"Position holder" includes a terminal operator that owns motor
vehicle fuel in their terminal.
(((23))) (24)
"Rack" means a mechanism for delivering motor vehicle fuel from a
refinery or terminal into a truck, trailer, railcar, or other means of nonbulk
transfer.
(((24))) (25)
"Refiner" means a person who owns, operates, or otherwise controls a
refinery.
(((25))) (26)
"Removal" means a physical transfer of motor vehicle fuel other than
by evaporation, loss, or destruction.
(((26))) (27)
"Terminal" means a motor vehicle fuel storage and distribution
facility that has been assigned a terminal control number by the internal
revenue service, is supplied by pipeline or vessel, and from which reportable
motor vehicle fuel is removed at a rack.
(((27))) (28)
"Terminal operator" means a person who owns, operates, or otherwise
controls a terminal.
(((28))) (29)
"Two-party exchange" or "buy-sell agreement" means a
transaction in which taxable motor vehicle fuel is transferred from one
licensed supplier to another licensed supplier under an exchange or buy-sell
agreement whereby the supplier that is the position holder agrees to deliver
taxable motor vehicle fuel to the other supplier or the other supplier's
customer at the rack of the terminal at which the delivering supplier is the
position holder.
Sec. 9. RCW 82.36.025 and 1999 c 269 s 16 and 1999 c 94 s 29 are each reenacted and amended to read as follows:
A motor vehicle fuel tax rate of twenty-three cents per gallon shall apply to the sale, distribution, or use of motor vehicle fuel, except for alternative fuel. A tax rate of eleven and one-half cents per gallon shall apply to the sale, distribution, or use of alternative fuel.
Sec. 10. RCW 82.36.280 and 1998 c 176 s 36 are each amended to read as follows:
Any person who uses any motor vehicle fuel or alternative fuel for the purpose of operating any internal combustion engine not used on or in conjunction with any motor vehicle licensed to be operated over and along any of the public highways, and as the motive power thereof, upon which motor vehicle fuel excise tax has been paid, shall be entitled to and shall receive a refund of the amount of the motor vehicle fuel excise tax paid on each gallon of motor vehicle fuel so used, whether such motor vehicle excise tax has been paid either directly to the vendor from whom the motor vehicle fuel was purchased or indirectly by adding the amount of such excise tax to the price of such fuel. No refund shall be made for motor vehicle fuel consumed by any motor vehicle as herein defined that is required to be registered and licensed as provided in chapter 46.16 RCW; and is operated over and along any public highway except that a refund shall be allowed for motor vehicle fuel consumed:
(1) In a motor vehicle owned by the United States that is operated off the public highways for official use;
(2) By auxiliary equipment not used for motive power, provided such consumption is accurately measured by a metering device that has been specifically approved by the department or is established by either of the following formulae:
(a) For fuel used in pumping fuel or heating oils by a power take-off unit on a delivery truck, refund shall be allowed claimant for tax paid on fuel purchased at the rate of three-fourths of one gallon for each one thousand gallons of fuel delivered: PROVIDED, That claimant when presenting his or her claim to the department in accordance with the provisions of this chapter, shall provide to said claim, invoices of fuel oil delivered, or such other appropriate information as may be required by the department to substantiate his or her claim; or
(b) For fuel used in operating a power take-off unit on a cement mixer truck or load compactor on a garbage truck, claimant shall be allowed a refund of twenty-five percent of the tax paid on all fuel used in such a truck; and
(c) The department is authorized to establish by rule additional formulae for determining fuel usage when operating other types of equipment by means of power take-off units when direct measurement of the fuel used is not feasible. The department is also authorized to adopt rules regarding the usage of on board computers for the production of records required by this chapter.
NEW SECTION. Sec. 11. A new section is added to chapter 70.94 RCW to read as follows:
The Washington State University energy program, in consultation with the departments of ecology, revenue, and licensing; local governments; vehicle manufacturers and suppliers; and other interested parties shall collect and review the relevant data associated with the provisions of chapter . . ., Laws of 2001 (this act) and evaluate the effectiveness of these incentives in improving air quality and increasing the use of clean alternative fuel vehicles. The Washington State University energy program shall present its findings and make recommendations as appropriate to the legislature biannually on or before December 15th, beginning in 2004.
NEW SECTION. Sec. 12. The following acts or parts of acts are each repealed:
(1) RCW 43.19.637 (Clean-fuel vehicles--Purchasing requirements) and 1991 c 199 s 213; and
(2) RCW 82.38.075 (Natural gas, propane--Annual license fee in lieu of special fuel tax for use in motor vehicles--Schedule--Decal or other identifying device) and 1983 c 212 s 1, 1981 c 129 s 1, 1979 c 48 s 1, & 1977 ex.s. c 335 s 1.
NEW SECTION. Sec. 13. This act takes effect January 1, 2002.
NEW SECTION. Sec. 14. This act expires December 31, 2009.
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