S-1852.1  _______________________________________________

                    SUBSTITUTE SENATE BILL 5913

          _______________________________________________

State of Washington      57th Legislature     2001 Regular Session

By Senate Committee on Environment, Energy & Water (originally sponsored by Senator Fraser)

READ FIRST TIME 02/26/01.

Allowing public utility tax deductions for improvements that result in more efficient use of water.

    AN ACT Relating to a public utility tax deduction for expenditures that implement conservation elements of approved water system plans; adding a new section to chapter 82.16 RCW; creating a new section; and providing an expiration date.

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

NEW SECTION. Sec. 1.  The legislature intends to provide an incentive for water distribution businesses to help reduce their customers' use of water through measures such as distributing shower flow restrictors, toilet tank water displacement devices, and leak detection dye tablets; providing water-efficient fixtures at no cost, giving a rebate for customer-purchased fixtures, or arranging for suppliers to provide fixtures at a reduced price; providing plants for low-water demand landscaping, moisture sensors, flow timers, low-volume sprinklers, and drip irrigation systems; and utilizing conservation pricing and billings that show percentage increase/decrease in water use over the same period from the previous year.

NEW SECTION. Sec. 2.  A new section is added to chapter 82.16 RCW to read as follows:

    (1) In computing tax under this chapter, there shall be deducted from the gross income those amounts expended to improve customers' efficiency of water use or to otherwise reduce the use of water by customers when the expenditures are implementing elements of the conservation plan within a state approved water system plan.

    (2) This chapter does not apply to amounts received for water services supplied by an entity that holds a permit under RCW 90.46.030 when the water supplied is reclaimed water as defined in RCW 90.46.010.

    (3) The office of financial management, in consultation with the departments of revenue, health, and ecology, must evaluate the reduction in water use and the long-term revenue impacts of the deductions and exclusions authorized by this section, and report its findings by October 1, 2001, to the legislature's standing committees with jurisdiction over water resources and the legislative fiscal committees.

    (4) This section expires June 30, 2003.

                            --- END ---