HOUSE BILL REPORT
3SHB 2053
This analysis was prepared by non-partisan legislative staff for the use of legislative members in
their deliberations. This analysis is not a part of the legislation nor does it constitute a
statement of legislative intent.
As Passed Legislature
Title: An act relating to improving the availability of motor vehicle fuel in the event of an electric power outage or interruption in electric service.
Brief Description: Providing for improved availability of motor vehicle fuel during power outages or interruptions in electrical service.
Sponsors: By House Committee on Finance (originally sponsored by Representatives Goodman, Springer, O'Brien, Dunshee, Eddy, Blake, Lovick, Upthegrove, Green, Simpson and Hurst).
Brief History:
Finance: 1/15/08, 1/18/08 [DP3S].
Floor Activity:
Passed House: 3/9/07, 96-1.
Passed House: 2/4/08, 94-0.
Passed Senate: 3/11/08, 42-0.
Passed Legislature.
Brief Summary of Third Substitute Bill |
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HOUSE COMMITTEE ON FINANCE
Majority Report: The third substitute bill be substituted therefor and the third substitute bill do pass. Signed by 9 members: Representatives Hunter, Chair; Hasegawa, Vice Chair; Orcutt, Ranking Minority Member; Condotta, Assistant Ranking Minority Member; Conway, Ericks, McIntire, Roach and Santos.
Staff: Don Taylor (786-7388).
Background:
Washington's principal tax on businesses is the state business and occupation (B&O) tax.
The B&O tax applies to the gross receipts derived from engaging in business. Although the
tax does not reflect the cost of doing business, there are a variety of exemptions, deductions
and other tax incentives permitted by law. Gasoline service stations are subject to the B&O
retailing rate (0.471 percent) on motor vehicle fuel and other items that are sold to
consumers. Most B&O tax receipts are deposited in the State General Fund.
Summary of Third Substitute Bill:
A credit against state B&O tax liability is provided for gasoline service stations for costs
associated with acquiring alternative power generation devices. The amount of tax credit is
limited to 50 percent of the cost of such devices, up to a maximum of $25,000 per taxpayer.
Eligible costs include the purchase of an alternative power generation devices, the wiring
necessary to install the devices and the related installation labor and services. An overall cap
of $750,000 per biennium applies to the total credits under the program. The credit will
expire at the end of Fiscal Year 2011.
Appropriation: None.
Fiscal Note: Requested on 3rd Substitute January 18, 2008.
Effective Date: The bill takes effect July 1, 2008.
Staff Summary of Public Testimony: (In support) There were 10,000 households without
power in northern King County and southern Snohomish County during the November 2006
wind storm. Households need access to fuel to operate their home generators. Mini-marts
with gas pumps would also be able to operate refrigeration equipment so that food does not
spoil and customers will be able to purchase milk, eggs, etc. during a power outage.
The state of Florida has mandated a system by which gas stations have power available. It is
expected that the current bill will be utilized by about 15 gas stations. The average cost of a
typical generator system to power a gas station is approximately $24,000, excluding the cost
of wiring.
There is a proposed amendment to reduce the maximum credit to $25,000. Another proposed
amendment would expand the use of the credit to cover the cost of wiring and related charges
for labor.
Persons Testifying: Representative Goodman, prime sponsor; and Charlie Brown, Oil Marketers Association.