Passed by the Senate March 2, 2011 YEAS 47   ________________________________________ President of the Senate Passed by the House April 9, 2011 YEAS 95   ________________________________________ Speaker of the House of Representatives | I, Thomas Hoemann, Secretary of the Senate of the State of Washington, do hereby certify that the attached is SENATE BILL 5526 as passed by the Senate and the House of Representatives on the dates hereon set forth. ________________________________________ Secretary | |
Approved ________________________________________ Governor of the State of Washington | Secretary of State State of Washington |
State of Washington | 62nd Legislature | 2011 Regular Session |
Read first time 01/28/11. Referred to Committee on Environment, Water & Energy.
AN ACT Relating to incentives for stirling converters; amending RCW 82.04.294; and reenacting and amending RCW 82.16.110 and 82.16.120.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1 RCW 82.04.294 and 2010 c 114 s 109 are each amended to
read as follows:
(1)(((a) Beginning October 1, 2005, upon every person engaging
within this state in the business of manufacturing solar energy systems
using photovoltaic modules, or of manufacturing solar grade silicon to
be used exclusively in components of such systems; as to such persons
the amount of tax with respect to such business is, in the case of
manufacturers, equal to the value of the product manufactured, or in
the case of processors for hire, equal to the gross income of the
business, multiplied by the rate of 0.2904 percent.)) Upon every person engaging within
this state in the business of manufacturing solar energy systems using
photovoltaic modules or stirling converters, or of manufacturing solar
grade silicon, silicon solar wafers, silicon solar cells, thin film
solar devices, or compound semiconductor solar wafers to be used
exclusively in components of such systems; as to such persons the
amount of tax with respect to such business is, in the case of
manufacturers, equal to the value of the product manufactured, or in
the case of processors for hire, equal to the gross income of the
business, multiplied by the rate of 0.275 percent.
(b) Beginning October 1, 2009,
(2)(((a) Beginning October 1, 2005, upon every person engaging
within this state in the business of making sales at wholesale of solar
energy systems using photovoltaic modules and manufactured by the
seller, or of solar grade silicon manufactured by the seller to be used
exclusively in components of such systems; as to such persons the
amount of tax with respect to the business is equal to the gross
proceeds of sales of the solar energy systems using photovoltaic
modules, or of the solar grade silicon to be used exclusively in
components of such systems, multiplied by the rate of 0.2904 percent.)) Upon every person engaging within
this state in the business of making sales at wholesale of solar energy
systems using photovoltaic modules or stirling converters, or of solar
grade silicon, silicon solar wafers, silicon solar cells, thin film
solar devices, or compound semiconductor solar wafers to be used
exclusively in components of such systems, manufactured by that person;
as to such persons the amount of tax with respect to such business is
equal to the gross proceeds of sales of the solar energy systems using
photovoltaic modules or stirling converters, or of the solar grade
silicon to be used exclusively in components of such systems,
multiplied by the rate of 0.275 percent.
(b) Beginning October 1, 2009,
(3) ((Beginning October 1, 2009,)) Silicon solar wafers, silicon
solar cells, thin film solar devices, or compound semiconductor solar
wafers are "semiconductor materials" for the purposes of RCW 82.08.9651
and 82.12.9651.
(4) The definitions in this subsection apply throughout this
section.
(a) "Compound semiconductor solar wafers" means a semiconductor
solar wafer composed of elements from two or more different groups of
the periodic table.
(b) "Module" means the smallest nondivisible self-contained
physical structure housing interconnected photovoltaic cells and
providing a single direct current electrical output.
(c) "Photovoltaic cell" means a device that converts light directly
into electricity without moving parts.
(d) "Silicon solar cells" means a photovoltaic cell manufactured
from a silicon solar wafer.
(e) "Silicon solar wafers" means a silicon wafer manufactured for
solar conversion purposes.
(f) "Solar energy system" means any device or combination of
devices or elements that rely upon direct sunlight as an energy source
for use in the generation of electricity.
(g) "Solar grade silicon" means high-purity silicon used
exclusively in components of solar energy systems using photovoltaic
modules to capture direct sunlight. "Solar grade silicon" does not
include silicon used in semiconductors.
(h) "Stirling converter" means a device that produces electricity
by converting heat from a solar source utilizing a stirling engine.
(i) "Thin film solar devices" means a nonparticipating substrate on
which various semiconducting materials are deposited to produce a
photovoltaic cell that is used to generate electricity.
(5) A person reporting under the tax rate provided in this section
must file a complete annual report with the department under RCW
82.32.534.
(6) This section expires June 30, 2014.
Sec. 2 RCW 82.16.110 and 2010 c 202 s 1 and 2010 c 106 s 225 are
each reenacted and amended to read as follows:
The definitions in this section apply throughout this chapter
unless the context clearly requires otherwise.
(1) "Administrator" means an owner and assignee of a community
solar project as defined in subsection (2)(a)(i) of this section that
is responsible for applying for the investment cost recovery incentive
on behalf of the other owners and performing such administrative tasks
on behalf of the other owners as may be necessary, such as receiving
investment cost recovery incentive payments, and allocating and paying
appropriate amounts of such payments to the other owners.
(2)(a) "Community solar project" means:
(i) A solar energy system that is capable of generating up to
seventy-five kilowatts of electricity and is owned by local
individuals, households, nonprofit organizations, or nonutility
businesses that is placed on the property owned by a cooperating local
governmental entity that is not in the light and power business or in
the gas distribution business;
(ii) A utility-owned solar energy system that is capable of
generating up to seventy-five kilowatts of electricity and that is
voluntarily funded by the utility's ratepayers where, in exchange for
their financial support, the utility gives contributors a payment or
credit on their utility bill for the value of the electricity produced
by the project; or
(iii) A solar energy system, placed on the property owned by a
cooperating local governmental entity that is not in the light and
power business or in the gas distribution business, that is capable of
generating up to seventy-five kilowatts of electricity, and that is
owned by a company whose members are each eligible for an investment
cost recovery incentive for the same customer-generated electricity as
provided in RCW 82.16.120.
(b) For the purposes of "community solar project" as defined in (a)
of this subsection:
(i) "Company" means an entity that is:
(A)(I) A limited liability company;
(II) A cooperative formed under chapter 23.86 RCW; or
(III) A mutual corporation or association formed under chapter
24.06 RCW; and
(B) Not a "utility" as defined in this subsection (2)(b); and
(ii) "Nonprofit organization" means an organization exempt from
taxation under 26 U.S.C. Sec. 501(c)(3) of the federal internal revenue
code of 1986, as amended, as of January 1, 2009; and
(iii) "Utility" means a light and power business, an electric
cooperative, or a mutual corporation that provides electricity service.
(3) "Customer-generated electricity" means a community solar
project or the alternating current electricity that is generated from
a renewable energy system located in Washington and installed on an
individual's, businesses', or local government's real property that is
also provided electricity generated by a light and power business.
Except for community solar projects, a system located on a leasehold
interest does not qualify under this definition. Except for utility-owned community solar projects, "customer-generated electricity" does
not include electricity generated by a light and power business with
greater than one thousand megawatt hours of annual sales or a gas
distribution business.
(4) "Economic development kilowatt-hour" means the actual kilowatt-hour measurement of customer-generated electricity multiplied by the
appropriate economic development factor.
(5) "Local governmental entity" means any unit of local government
of this state including, but not limited to, counties, cities, towns,
municipal corporations, quasi-municipal corporations, special purpose
districts, and school districts.
(6) "Photovoltaic cell" means a device that converts light directly
into electricity without moving parts.
(7) "Renewable energy system" means a solar energy system, an
anaerobic digester as defined in RCW 82.08.900, or a wind generator
used for producing electricity.
(8) "Solar energy system" means any device or combination of
devices or elements that rely upon direct sunlight as an energy source
for use in the generation of electricity.
(9) "Solar inverter" means the device used to convert direct
current to alternating current in a ((photovoltaic cell)) solar energy
system.
(10) "Solar module" means the smallest nondivisible self-contained
physical structure housing interconnected photovoltaic cells and
providing a single direct current electrical output.
(11) "Stirling converter" means a device that produces electricity
by converting heat from a solar source utilizing a stirling engine.
Sec. 3 RCW 82.16.120 and 2010 c 202 s 2 and 2010 c 106 s 103 are
each reenacted and amended to read as follows:
(1)(a) Any individual, business, local governmental entity, not in
the light and power business or in the gas distribution business, or a
participant in a community solar project may apply to the light and
power business serving the situs of the system, each fiscal year
beginning on July 1, 2005, for an investment cost recovery incentive
for each kilowatt-hour from a customer-generated electricity renewable
energy system.
(b) In the case of a community solar project as defined in RCW
82.16.110(2)(a)(i), the administrator must apply for the investment
cost recovery incentive on behalf of each of the other owners.
(c) In the case of a community solar project as defined in RCW
82.16.110(2)(a)(iii), the company owning the community solar project
must apply for the investment cost recovery incentive on behalf of each
member of the company.
(2)(a) Before submitting for the first time the application for the
incentive allowed under subsection (4) of this section, the applicant
must submit to the department of revenue and to the climate and rural
energy development center at the Washington State University,
established under RCW 28B.30.642, a certification in a form and manner
prescribed by the department that includes, but is not limited to, the
following information:
(i) The name and address of the applicant and location of the
renewable energy system.
(A) If the applicant is an administrator of a community solar
project as defined in RCW 82.16.110(2)(a)(i), the certification must
also include the name and address of each of the owners of the
community solar project.
(B) If the applicant is a company that owns a community solar
project as defined in RCW 82.16.110(2)(a)(iii), the certification must
also include the name and address of each member of the company;
(ii) The applicant's tax registration number;
(iii) That the electricity produced by the applicant meets the
definition of "customer-generated electricity" and that the renewable
energy system produces electricity with:
(A) Any solar inverters and solar modules manufactured in
Washington state;
(B) A wind generator powered by blades manufactured in Washington
state;
(C) A solar inverter manufactured in Washington state;
(D) A solar module manufactured in Washington state; ((or))
(E) A stirling converter manufactured in Washington state; or
(F) Solar or wind equipment manufactured outside of Washington
state;
(iv) That the electricity can be transformed or transmitted for
entry into or operation in parallel with electricity transmission and
distribution systems; and
(v) The date that the renewable energy system received its final
electrical permit from the applicable local jurisdiction.
(b) Within thirty days of receipt of the certification the
department of revenue must notify the applicant by mail, or
electronically as provided in RCW 82.32.135, whether the renewable
energy system qualifies for an incentive under this section. The
department may consult with the climate and rural energy development
center to determine eligibility for the incentive. System
certifications and the information contained therein are subject to
disclosure under RCW 82.32.330(3)(l).
(3)(a) By August 1st of each year application for the incentive
must be made to the light and power business serving the situs of the
system by certification in a form and manner prescribed by the
department that includes, but is not limited to, the following
information:
(i) The name and address of the applicant and location of the
renewable energy system.
(A) If the applicant is an administrator of a community solar
project as defined in RCW 82.16.110(2)(a)(i), the application must also
include the name and address of each of the owners of the community
solar project.
(B) If the applicant is a company that owns a community solar
project as defined in RCW 82.16.110(2)(a)(iii), the application must
also include the name and address of each member of the company;
(ii) The applicant's tax registration number;
(iii) The date of the notification from the department of revenue
stating that the renewable energy system is eligible for the incentives
under this section; and
(iv) A statement of the amount of kilowatt-hours generated by the
renewable energy system in the prior fiscal year.
(b) Within sixty days of receipt of the incentive certification the
light and power business serving the situs of the system must notify
the applicant in writing whether the incentive payment will be
authorized or denied. The business may consult with the climate and
rural energy development center to determine eligibility for the
incentive payment. Incentive certifications and the information
contained therein are subject to disclosure under RCW 82.32.330(3)(l).
(c)(i) Persons, administrators of community solar projects, and
companies receiving incentive payments must keep and preserve, for a
period of five years, suitable records as may be necessary to determine
the amount of incentive applied for and received. Such records must be
open for examination at any time upon notice by the light and power
business that made the payment or by the department. If upon
examination of any records or from other information obtained by the
business or department it appears that an incentive has been paid in an
amount that exceeds the correct amount of incentive payable, the
business may assess against the person for the amount found to have
been paid in excess of the correct amount of incentive payable and must
add thereto interest on the amount. Interest is assessed in the manner
that the department assesses interest upon delinquent tax under RCW
82.32.050.
(ii) If it appears that the amount of incentive paid is less than
the correct amount of incentive payable the business may authorize
additional payment.
(4) Except for community solar projects, the investment cost
recovery incentive may be paid fifteen cents per economic development
kilowatt-hour unless requests exceed the amount authorized for credit
to the participating light and power business. For community solar
projects, the investment cost recovery incentive may be paid thirty
cents per economic development kilowatt-hour unless requests exceed the
amount authorized for credit to the participating light and power
business. For the purposes of this section, the rate paid for the
investment cost recovery incentive may be multiplied by the following
factors:
(a) For customer-generated electricity produced using solar modules
manufactured in Washington state or a solar stirling converter
manufactured in Washington state, two and four-tenths;
(b) For customer-generated electricity produced using a solar or a
wind generator equipped with an inverter manufactured in Washington
state, one and two-tenths;
(c) For customer-generated electricity produced using an anaerobic
digester, or by other solar equipment or using a wind generator
equipped with blades manufactured in Washington state, one; and
(d) For all other customer-generated electricity produced by wind,
eight-tenths.
(5)(a) No individual, household, business, or local governmental
entity is eligible for incentives provided under subsection (4) of this
section for more than five thousand dollars per year.
(b) Except as provided in (c) through (e) of this subsection (5),
each applicant in a community solar project is eligible for up to five
thousand dollars per year.
(c) Where the applicant is an administrator of a community solar
project as defined in RCW 82.16.110(2)(a)(i), each owner is eligible
for an incentive but only in proportion to the ownership share of the
project, up to five thousand dollars per year.
(d) Where the applicant is a company owning a community solar
project that has applied for an investment cost recovery incentive on
behalf of its members, each member of the company is eligible for an
incentive that would otherwise belong to the company but only in
proportion to each ownership share of the company, up to five thousand
dollars per year. The company itself is not eligible for incentives
under this section.
(e) In the case of a utility-owned community solar project, each
ratepayer that contributes to the project is eligible for an incentive
in proportion to the contribution, up to five thousand dollars per
year.
(6) If requests for the investment cost recovery incentive exceed
the amount of funds available for credit to the participating light and
power business, the incentive payments must be reduced proportionately.
(7) The climate and rural energy development center at Washington
State University energy program may establish guidelines and standards
for technologies that are identified as Washington manufactured and
therefore most beneficial to the state's environment.
(8) The environmental attributes of the renewable energy system
belong to the applicant, and do not transfer to the state or the light
and power business upon receipt of the investment cost recovery
incentive.
(9) No incentive may be paid under this section for kilowatt-hours
generated before July 1, 2005, or after June 30, 2020.