AN ACT Relating to responding to energy supply shortages; amending RCW 82.08.02567, 82.12.02567, 44.39.010, and 44.39.015; providing an effective date; providing expiration dates; and declaring an emergency.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

Sec. 1. RCW 82.08.02567 and 1999 c 358 s 4 are each amended to read as follows:

(1) The tax levied by RCW 82.08.020 shall not apply to sales of machinery and equipment used directly in generating electricity using wind, fuel cells, biomass waste, sun, or landfill gas as the principal source of power, or to sales of or charges made for labor and services rendered in respect to installing such machinery and equipment, but only if the purchaser develops with such machinery, equipment, and labor a facility capable of generating not less than two hundred ((~~kilowatts~~)) watts of electricity and provides the seller with an exemption certificate in a form and manner prescribed by the department ((~~by rule~~)). The seller shall retain a copy of the certificate for the seller's files.

(2) For purposes of this section and RCW 82.12.02567:

(a) "Landfill gas" means biomass fuel of the type qualified for federal tax credits under 26 U.S.C. Sec. 29 collected from a landfill. "Landfill" means a landfill as defined under RCW 70.95.030;

(b) "Machinery and equipment" means industrial fixtures, devices, and support facilities that are integral and necessary to the generation of electricity using wind, fuel cells, biomass waste, sun, or landfill gas as the principal source of power;

(c) "Machinery and equipment" does not include: (i) Hand-powered tools; (ii) property with a useful life of less than one year; (iii) repair parts required to restore machinery and equipment to normal working order; (iv) replacement parts that do not increase productivity, improve efficiency, or extend the useful life of machinery and equipment; (v) buildings; or (vi) building fixtures that are not integral and necessary to the generation of electricity that are permanently affixed to and become a physical part of a building;

(d) Machinery and equipment is "used directly" in generating electricity with fuel cells or by wind energy, solar energy, or landfill gas power or biomass waste power, if it provides any part of the process that captures the energy of the wind, biomass waste, sun, or landfill gas, converts that energy to electricity, and stores, transforms, or transmits that electricity for entry into or operation in parallel with electric transmission and distribution systems;

(e) "Fuel cell" means an electrochemical reaction that generates electricity by combining atoms of hydrogen and oxygen in the presence of a catalyst;

(f) "Biomass waste" means organic materials such as animal waste, food processing waste, wood and agricultural residues, sewage, and municipal solid waste.

(3) This section expires June 30, ((~~2005~~)) 2009.

Sec. 2. RCW 82.12.02567 and 1999 c 358 s 10 are each amended to read as follows:

(1) The provisions of this chapter shall not apply with respect to machinery and equipment used directly in generating not less than two hundred ((~~kilowatts~~)) watts of electricity using wind, fuel cells, biomass waste, sun, or landfill gas as the principal source of power.

(2) The definitions in RCW 82.08.02567 apply to this section.

(3) This section expires June 30, ((~~2005~~)) 2009.

Sec. 3. RCW 44.39.010 and 1977 ex.s. c 328 s 13 are each amended to read as follows:

There is hereby created the joint committee on energy ((~~and utilities~~)) shortages of the legislature of the state of Washington.

Sec. 4. RCW 44.39.015 and 1977 ex.s. c 328 s 14 are each amended to read as follows:

The committee shall consist of four senators and four representatives who shall be selected biennially as follows:

(1) The president of the senate shall ((~~nominate~~)) appoint four members from the ((~~energy and utilities~~)) senate to serve on the committee, including the ((~~chairman,~~)) chairperson of the committee responsible for energy issues. Two members ((~~being~~)) from each major political party((~~, to serve on the committee, and shall submit the list of nominees to the senate for confirmation. Upon confirmation, the senators shall be deemed installed as members~~)) must be appointed.

(2) The speaker or co-speakers of the house of representatives shall nominate four members from the ((~~energy and utilities~~)) house of representatives to serve on the committee, including the ((~~chairman,~~)) chairperson or cochairs of the committee responsible for energy issues. Two members ((~~being~~)) from each major political party((, to serve on the committee, and shall submit the list of nominees to the house of representatives for confirmation. Upon confirmation, the representatives shall be deemed installed as members. The chairmen of the senate and house energy and utilities committees shall alternately serve as chairman for one year terms. The chairman of the house committee shall serve as the initial chairman. The chairman may designate another committee member to serve as chairman in his or her absence)) must be appointed.

(3) The committee shall elect a chairperson and a vice-chairperson. The chairperson shall be a member of the house of representatives in even-numbered years and a member of the senate in odd-numbered years. In the case of a tie in the membership of the house of representatives in an even-numbered year, the committee shall elect cochairs from the house of representatives in that year.

NEW SECTION. Sec. 5. 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, 2001.