BILL REQ. #:  H-5241.2 

Read first time 02/06/08.   Referred to Committee on Finance.

     AN ACT Relating to providing sales and use tax exemptions on the sale of organic biomass purchased by a light and power business or forest products company for the production of steam to generate electricity or for use in a production process; adding a new section to chapter 82.08 RCW; and adding a new section to chapter 82.12 RCW.

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

NEW SECTION.  Sec. 1   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 organic biomass to a qualified business.
     (2) For the purposes of this section and section 2 of this act:
     (a) "Organic biomass" means: (i) Solid organic fuels from wood or forest residue that do not include wood pieces that have been treated with chemical preservatives such as creosote, pentachlorophenol, or copper-chrome-arsenic; or (ii) byproducts of wood manufacturing processes, including but not limited to bark, wood chips, and sawdust, where wood pieces were not treated with chemical preservatives.
     (b) "Qualified business" means a light and power business or forest products company located in Washington that uses organic biomass for the primary purpose of burning the biomass in a boiler to produce steam to either: (i) Generate electricity; or (ii) be used in the production process; or both.
     (c) "Forest products company" means a person engaged in the business of manufacturing or processing for hire: (i) Timber into timber products or wood products; or (ii) timber products into other timber products or wood products.
     (d) "Timber products" means logs, wood chips, sawdust, wood waste, and similar products obtained wholly from the processing of timber; pulp; and recycled paper products.
     (e) "Wood products" means paper and paper products; dimensional lumber; engineered wood products such as particleboard, oriented strand board, medium density fiberboard, and plywood; wood doors; and wood windows.
     (f) "Light and power business" has the same meaning as defined under RCW 82.16.010.

NEW SECTION.  Sec. 2   A new section is added to chapter 82.12 RCW to read as follows:
     (1) The provisions of this chapter do not apply in respect to the use of organic biomass, if used by a qualified business.
     (2) The definitions in section 1 of this act apply to this section.