BILL REQ. #:  H-2235.1 

READ FIRST TIME 03/07/05.   

     AN ACT Relating to livestock nutrient management equipment and facilities; amending RCW 82.08.890, 82.12.890, 82.08.900, and 82.12.900; amending 2001 2nd sp.s. c 18 s 1 (uncodified); and declaring an emergency.

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

Sec. 1   2001 2nd sp.s. c 18 s 1 (uncodified) is amended to read as follows:
     It is the intent of the legislature to provide tax exemptions to assist ((dairy)) livestock farmers to comply with ((the dairy nutrient management act,)) chapter 90.64 RCW, and to assist public or private entities to establish and operate anaerobic digesters to treat ((dairy)) livestock nutrients on a regional or on-farm basis.

Sec. 2   RCW 82.08.890 and 2001 2nd sp.s. c 18 s 2 are each amended to read as follows:
     (1) The tax levied by RCW 82.08.020 does not apply to sales to eligible persons of services rendered in respect to operating, repairing, cleaning, altering, or improving of ((dairy)) livestock nutrient management equipment and facilities, or to sales of tangible personal property that becomes an ingredient or component of the equipment and facilities. The equipment and facilities must be used exclusively for activities necessary to maintain a ((dairy)) nutrient management plan ((as)) required under chapter 90.64 RCW. This exemption applies to sales made after the ((dairy)) nutrient management plan is certified under chapter 90.64 RCW.
     (2)(a) The department of revenue must provide an exemption certificate to an eligible person upon application by that person. The department of agriculture must provide a list of eligible persons to the department of revenue. The application must be in a form and manner prescribed by the department and must contain information regarding the location of the ((dairy)) livestock operation and other information the department may require.
     (b) The exemption is available only when the buyer provides the seller with an exemption certificate in a form and manner prescribed by the department. The seller must retain a copy of the certificate for the seller's files.
     (3) The definitions in this subsection apply to this section and RCW 82.12.890 unless the context clearly requires otherwise:
     (a) "((Dairy)) Livestock nutrient management equipment and facilities" means machinery, equipment, and structures used in the handling and treatment of ((dairy)) livestock manure, such as aerators, agitators, alley scrapers, augers, dams, gutter cleaners, loaders, lagoons, pipes, pumps, separators, and tanks. The term also includes tangible personal property that becomes an ingredient or component of the equipment and facilities, including repair and replacement parts.
     (b) "Eligible person" means a person (i) licensed to produce milk under chapter 15.36 RCW or (ii) holding a livestock national pollutant discharge elimination system permit, who has a certified ((dairy)) livestock nutrient management plan by December 31, ((2003, as required by chapter 90.64 RCW)) 2006.

Sec. 3   RCW 82.12.890 and 2003 c 5 s 15 are each amended to read as follows:
     The provisions of this chapter do not apply with respect to the use by an eligible person of tangible personal property that becomes an ingredient or component of ((dairy)) livestock nutrient management equipment and facilities, as defined in RCW 82.08.890, or to labor and services rendered in respect to repairing, cleaning, altering, or improving eligible tangible personal property. The equipment and facilities must be used exclusively for activities necessary to maintain a ((dairy)) nutrient management plan as required under chapter 90.64 RCW. This exemption applies to the use of tangible personal property or labor and services made after the ((dairy)) nutrient management plan is certified under chapter 90.64 RCW. The exemption certificate and recordkeeping requirements of RCW 82.08.890 apply to this section.

Sec. 4   RCW 82.08.900 and 2001 2nd sp.s. c 18 s 4 are each amended to read as follows:
     (1) The tax levied by RCW 82.08.020 does not apply to sales to an eligible person establishing or operating an anaerobic digester or to services rendered in respect to installing, constructing, repairing, cleaning, altering, or improving an anaerobic digester, or to sales of tangible personal property that becomes an ingredient or component of the anaerobic digester. The anaerobic digester must be used primarily to treat ((dairy)) livestock manure.
     (2)(a) The department of revenue must provide an exemption certificate to an eligible person upon application by that person. The application must be in a form and manner prescribed by the department and must contain information regarding the location of the facility and other information as the department may require.
     (b) The exemption is available only when the buyer provides the seller with an exemption certificate in a form and manner prescribed by the department. The seller must retain a copy of the certificate for the seller's files.
     (3) The definitions in this subsection apply to this section and RCW 82.12.900 unless the context clearly requires otherwise:
     (a) "Anaerobic digester" means a facility that processes manure from ((cattle)) livestock into biogas and dried manure using microorganisms in a decomposition process within a closed, oxygen-free container.
     (b) "Eligible person" means any person establishing or operating an anaerobic digester to treat primarily ((dairy)) livestock manure.
     (c) "Primarily" means more than fifty percent measured by volume or weight.

Sec. 5   RCW 82.12.900 and 2003 c 5 s 16 are each amended to read as follows:
     The provisions of this chapter do not apply with respect to the use of anaerobic digesters, tangible personal property that becomes an ingredient or component of anaerobic digesters, or the use of services rendered in respect to installing, repairing, cleaning, altering, or improving eligible tangible personal property by an eligible person establishing or operating an anaerobic digester, as defined in RCW 82.08.900. The anaerobic digester must be used primarily to treat ((dairy)) livestock manure.

NEW SECTION.  Sec. 6   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 immediately.