Z‑0707.1   _____________________________________________






State of Washington      57th Legislature     2001 Regular Session


By Senators Jacobsen, Eide, Patterson, Fraser, Regala, Kline, Spanel, Kohl‑Welles, Roach and Winsley; by request of Governor Locke


Read first time 01/25/2001.  Referred to Committee on Environment, Energy & Water.

_1      AN ACT Relating to exempting electric generating facilities

_2  powered by wind or sun energy from sales and use taxes; amending

_3  RCW 82.08.02567 and 82.12.02567; providing an effective date;

_4  providing expiration dates; and declaring an emergency.




_6      Sec. 1.  RCW 82.08.02567 and 1999 c 358 s 4 are each amended to

_7  read as follows:

_8      (1) The tax levied by RCW 82.08.020 shall not apply to sales of

_9  machinery and equipment used directly in generating electricity

10  using wind, sun, or landfill gas as the principal source of power,

11  or to sales of or charges made for labor and services rendered in

12  respect to installing such machinery and equipment, but only if

13  the purchaser develops with such machinery, equipment, and labor a

14  facility capable of generating not less than two hundred

15  ((kilowatts)) watts of electricity and provides the seller with an

16  exemption certificate in a form and manner prescribed by the

17  department ((by rule)).  The seller shall retain a copy of the

18  certificate for the seller's files.

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_1      (2) For purposes of this section and RCW 82.12.02567:

_2      (a) "Landfill gas" means biomass fuel of the type qualified for

_3  federal tax credits under 26 U.S.C. Sec. 29 collected from a

_4  landfill.  "Landfill" means a landfill as defined under RCW

_5  70.95.030;

_6      (b) "Machinery and equipment" means industrial fixtures,

_7  devices, and support facilities that are integral and necessary to

_8  the generation of electricity using wind, sun, or landfill gas as

_9  the principal source of power;

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

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

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

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

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

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

16  that are not integral and necessary to the generation of

17  electricity that are permanently affixed to and become a physical

18  part of a building;

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

20  electricity by wind energy, solar energy, or landfill gas power if

21  it provides any part of the process that captures the energy of

22  the wind, sun, or landfill gas, converts that energy to

23  electricity, and stores, transforms, or transmits that electricity

24  for entry into or operation in parallel with electric transmission

25  and distribution systems.

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


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

28  read as follows:

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

30  to machinery and equipment used directly in generating not less

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

32  sun, or landfill gas as the principal source of power.

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

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


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

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_1  preservation of the public peace, health, or safety, or support of

_2  the state government and its existing public institutions, and

_3  takes effect July 1, 2001.


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