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SENATE BILL 5542

           _____________________________________________

State of Washington      57th Legislature     2001 Regular Session

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

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

_1      AN ACT Relating to providing sales and use tax exemptions for

_2  air pollution control facilities acquired or installed by a light

_3  and power business at thermal electric peaking plants; and adding

_4  a new section to chapter 82.34 RCW.

_5  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

_6      NEW SECTION. Sec. 1.  A new section is added to chapter 82.34

_7  RCW to read as follows:

_8      (1) The following definitions apply throughout this section:

_9      (a) "Qualifying facility" means an air pollution control

10  facility as that term is defined in RCW 82.34.010(1)(a) to be

11  installed or acquired for a thermal electric peaking plant and

12  which is approved pursuant to the Washington clean air act,

13  chapter 70.94 RCW.

14      (b) "Thermal electric peaking plant" means a natural gas-fired

15  thermal electric generating facility operated by a light and power

16  business and placed into service between January 1, 1978, and

17  December 31, 1984, and that is registered for the calendar year

18  2000 pursuant to RCW 70.94.151.

                               p. 1                       SB 5542

_1      (c) "Light and power business" has the same meaning as in RCW

_2  82.16.010.

_3      (2) The department shall, upon written request of a light and

_4  power business to which the approval issued under chapter 70.94

_5  RCW is attached, make a determination as to whether a plant is a

_6  thermal electric peaking plant acquiring or installing a

_7  qualifying facility eligible under this section.  The department

_8  shall consult with the department of community, trade, and

_9  economic development and the department of ecology in making the

10  determination.  If the determination is in the affirmative, the

11  department shall issue the light and power business a sales and

12  use tax exemption certificate in a form and manner as deemed

13  appropriate by the department.

14      (3) The charges for installation or acquisition of a qualifying

15  facility by the holder of the certificate are exempt from sales

16  tax imposed under chapter 82.08 RCW and use tax imposed under

17  chapter 82.12 RCW.  The purchaser must provide the seller with a

18  copy of the sales and use tax exemption certificate.  The seller

19  shall retain a copy of the certificate for the seller's files.

20      (4) The exemption in this section is limited to the

21  installation or acquisition of a qualifying facility and does not

22  apply to servicing, maintenance, operation, or repairs of a

23  thermal electric peaking plant or of an air pollution control

24  facility.

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SB 5542                        p. 2