BILL REQ. #:  S-4141.1 

Read first time 01/13/2006.   Referred to Committee on Water, Energy & Environment.

     AN ACT Relating to providing incentives for the conversion of landfill methane gas to liquid fuel; adding a new section to chapter 82.08 RCW; adding a new section to chapter 82.12 RCW; creating a new section; providing an effective date; and providing expiration dates.

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

NEW SECTION.  Sec. 1   The legislature seeks to encourage the conversion of landfill methane gas to liquid fuels for use in motor vehicles. This conversion provides an alternative use for landfill gas projects and provides environmental benefits because it is a cleaner burning fuel relative to gasoline and diesel fuel.

NEW SECTION.  Sec. 2   A new section is added to chapter 82.08 RCW to read as follows:
     (1) The tax levied by RCW 82.08.020 does not apply to sales of machinery and equipment, or to services rendered in respect to constructing structures, installing, constructing, repairing, cleaning, decorating, altering, or improving of structures or machinery and equipment, or to sales of tangible personal property that becomes an ingredient or component of structures or machinery and equipment, if the machinery, equipment, or structure is integral and necessary for the conversion of landfill methane gas to a liquid fuel for use in motor vehicles.
     (2) The tax levied by RCW 82.08.020 does not apply to charges made for labor and services rendered in respect to installing, repairing, cleaning, altering, or improving vehicles including new parts, repair parts, and replacement parts, integral and necessary for the conversion to operate the vehicles on liquid fuel converted from landfill methane gas.
     (3) A person taking the exemption under this section must keep records necessary for the department to verify eligibility under this section. 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 shall retain a copy of the certificate for the seller's files.
     (4) For the purposes of this section "machinery and equipment" means industrial fixtures, devices, and support facilities and tangible personal property that becomes an ingredient or component thereof, including repair parts and replacement parts that are integral and necessary for the conversion of landfill methane gas into a liquid fuel for use in motor vehicles.
     (5) This section expires July 1, 2009.

NEW SECTION.  Sec. 3   A new section is added to chapter 82.12 RCW to read as follows:
     (1) The provisions of this chapter do not apply with respect to the use of machinery and equipment, or to services rendered in respect to constructing structures, installing, constructing, repairing, cleaning, decorating, altering, or improving of structures or machinery and equipment, or tangible personal property that becomes an ingredient or component of structures or machinery and equipment, integral and necessary for the conversion of landfill methane gas to a liquid fuel for use in motor vehicles.
     (2) The provisions of this chapter do not apply to charges made for labor and services rendered in respect to installing, repairing, cleaning, altering, or improving vehicles including new parts, repair parts, and replacement parts, integral and necessary for the conversion to operate the vehicles on liquid fuel converted from landfill methane gas.
     (3) For the purposes of this section "machinery and equipment" means industrial fixtures, devices, and support facilities and tangible personal property that becomes an ingredient or component thereof, including repair parts and replacement parts that are integral and necessary for the conversion of landfill methane gas into a liquid fuel for use in motor vehicles.
     (4) This section expires July 1, 2009.

NEW SECTION.  Sec. 4   This act takes effect July 1, 2006.