S‑1642.1      _____________________________________________

SUBSTITUTE SENATE BILL 5541

           _____________________________________________

State of Washington      57th Legislature     2001 Regular Session

By Senate Committee on Environment, Energy & Water (originally sponsored by Senators Jacobsen, Eide, Patterson, Fraser, Regala, Kline, Spanel, Kohl‑Welles, Roach and Winsley; by request of Governor Locke)

READ FIRST TIME 02/16/01. 

_1      AN ACT Relating to exempting electric generating facilities

_2  powered by wind, fuel cells, biomass waste, or sun energy from

_3  sales and use taxes; amending RCW 82.08.02567 and 82.12.02567;

_4  providing an effective date; providing expiration dates; and

_5  declaring an emergency.

_6  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

_7      Sec. 1.  RCW 82.08.02567 and 1999 c 358 s 4 are each amended to

_8  read as follows:

_9      (1) The tax levied by RCW 82.08.020 shall not apply to sales of

10  machinery and equipment used directly in generating electricity

11  using wind, fuel cells, biomass waste, sun, or landfill gas as the

12  principal source of power, or to sales of or charges made for

13  labor and services rendered in respect to installing such

14  machinery and equipment, but only if the purchaser develops with

15  such machinery, equipment, and labor a facility capable of

16  generating not less than two hundred ((kilowatts)) watts of

17  electricity and provides the seller with an exemption certificate

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_1  in a form and manner prescribed by the department ((by rule)).  The

_2  seller shall retain a copy of the certificate for the seller's

_3  files.

_4      (2) For purposes of this section and RCW 82.12.02567:

_5      (a) "Landfill gas" means biomass fuel of the type qualified for

_6  federal tax credits under 26 U.S.C. Sec. 29 collected from a

_7  landfill.  "Landfill" means a landfill as defined under RCW

_8  70.95.030;

_9      (b) "Machinery and equipment" means industrial fixtures,

10  devices, and support facilities that are integral and necessary to

11  the generation of electricity using wind, fuel cells, biomass

12  waste, sun, or landfill gas as the principal source of power;

13      (c) "Machinery and equipment" does not include:  (i) Hand-powered

14  tools; (ii) property with a useful life of less than one year;

15  (iii) repair parts required to restore machinery and equipment to

16  normal working order; (iv) replacement parts that do not increase

17  productivity, improve efficiency, or extend the useful life of

18  machinery and equipment; (v) buildings; or (vi) building fixtures

19  that are not integral and necessary to the generation of

20  electricity that are permanently affixed to and become a physical

21  part of a building;

22      (d) Machinery and equipment is "used directly" in generating

23  electricity with fuel cells or by wind energy, solar energy, or

24  landfill gas power or biomass waste power, if it provides any part

25  of the process that captures the energy of the wind, biomass

26  waste, sun, or landfill gas, converts that energy to electricity,

27  and stores, transforms, or transmits that electricity for entry

28  into or operation in parallel with electric transmission and

29  distribution systems;

30      (e) "Fuel cell" means an electrochemical reaction that

31  generates electricity by combining atoms of hydrogen and oxygen in

32  the presence of a catalyst;

33      (f) "Biomass waste" means organic materials such as animal

34  waste, food processing waste, wood and agricultural residues,

35  sewage, and municipal solid waste.

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

37 

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_1      Sec. 2.  RCW 82.12.02567 and 1999 c 358 s 10 are each amended to

_2  read as follows:

_3      (1) The provisions of this chapter shall not apply with respect

_4  to machinery and equipment used directly in generating not less

_5  than two hundred ((kilowatts)) watts of electricity using wind,

_6  fuel cells, biomass waste, sun, or landfill gas as the principal

_7  source of power.

_8      (2) The definitions in RCW 82.08.02567 apply to this section.

_9      (3) This section expires June 30, ((2005)) 2009.

10      NEW SECTION. Sec. 3.  This act is necessary for the immediate

11  preservation of the public peace, health, or safety, or support of

12  the state government and its existing public institutions, and

13  takes effect July 1, 2001.

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