2326-S.E AAS 3/1/94
ESHB 2326 - S COMM AMD
By Committee on Transportation
ADOPTED AS AMENDED 3/1/94
Strike everything after the enacting clause and insert the following:
"NEW SECTION. Sec. 1. It is the intent of the legislature to provide an incentive that encourages the use of renewable fuels by the motoring public, stimulates higher value added markets for agricultural products and by-products, and encourages a waste to energy industry. It is also the intent of the legislature to limit the financial impact to the state of this incentive.
The legislature declares that encouraging the use of renewable fuels by the motoring public will provide the following benefits to the people of Washington: Improved air quality, a market for agricultural products and by-products, a reduction of cost associated with the disposal of organic wastes, and new business and employment opportunities in the state.
NEW SECTION. Sec. 2. RCW 82.36.2251 and 1993 c 268 s 2 are each repealed.
Sec. 3. RCW 46.68.090 and 1991 c 342 s 56 are each amended to read as follows:
(1) All moneys that have accrued or may accrue to the motor vehicle fund from the motor vehicle fuel tax and special fuel tax shall be first expended for the following purposes:
(a) For payment of refunds of motor vehicle fuel tax and special fuel tax that has been paid and is refundable as provided by law;
(b) For payment of amounts to be expended pursuant to appropriations for the administrative expenses of the offices of state treasurer, state auditor, and the department of licensing of the state of Washington in the administration of the motor vehicle fuel tax and the special fuel tax, which sums shall be distributed monthly;
(c) From April 1, 1992, through March 31, 1996, for distribution to the transfer relief account, hereby created in the motor vehicle fund, an amount not to exceed three hundred twenty-five one-thousandths of one percent;
(d) For distribution to the rural arterial trust account in the motor vehicle fund, an amount as provided in RCW 82.36.025(2) and 46.68.095(3);
(e) For distribution to the urban arterial trust account in the motor vehicle fund, an amount as provided in RCW 82.36.025(3);
(f) For distribution to the transportation improvement account in the motor vehicle fund, an amount as provided in RCW 46.68.095(1);
(g) For distribution to the special category C account, hereby created in the motor vehicle fund, an amount as provided in RCW 46.68.095(2);
(h) For distribution to the county arterial preservation account, hereby created in the motor vehicle fund, an amount as provided in RCW 46.68.095(4);
(i) For distribution to the motor vehicle fund to be allocated to cities and towns as provided in RCW 46.68.110, an amount as provided in RCW 46.68.095(5);
(j) For distribution to the motor vehicle fund to be allocated to counties as provided in RCW 46.68.120, an amount as provided in RCW 46.68.095(6);
(k) For expenditure for highway purposes of the state as defined in RCW 46.68.130, an amount as provided in RCW 82.36.025(4) and 46.68.095(7);
(l) From July 1, 1994, through June 30, 1995, for distribution to the gasohol exemption holding account, hereby created in the motor vehicle fund, an amount equal to four and sixty-one one-hundredths of one percent of the amount available prior to distributions under (a) through (k) of this subsection, to be used only for highway construction.
(2) The amount accruing to the motor vehicle fund by virtue of the motor vehicle fuel tax and the special fuel tax and remaining after payments, distributions, and expenditures as provided in this section shall, for the purposes of this chapter, be referred to as the "net tax amount."
NEW SECTION. Sec. 4. A new section is added to chapter 82.36 RCW to read as follows:
(1) Alcohol of any proof that is sold in this state for use as fuel in motor vehicles is exempt from the motor fuel tax under this chapter, subject to the limitations under section 5 of this act, if such alcohol has been verified by the department as meeting all of the following conditions:
(a)(i) The alcohol was manufactured by a company that has been verified by the department as having produced four million gallons or less of alcohol for use as motor fuel in the prior calendar year. If a company applying for certification has not been in continuous production for the entire prior calendar year its plant or plants must have a total annual fuel alcohol production capacity of four million gallons or less.
(ii) The company has not sold more than four million gallons of its own manufactured fuel alcohol in the current calendar year.
(b) The alcohol was manufactured by a company whose primary raw material for the alcohol is food processing waste, brewery waste, or wood and paper processing waste.
(2) In addition, a tax credit of thirty percent of the tax rate imposed by RCW 82.36.025 shall be given for every gallon of alcohol receiving the exemption under subsection (1) of this section and used in an alcohol gasoline blend which contains at least ten percent by volume of alcohol.
NEW SECTION. Sec. 5. A new section is added to chapter 82.36 RCW to read as follows:
The motor fuel tax exemption under section 4 of this act is subject to the following limitations:
(1) No exemption shall be allowed for the sale of alcohol in all of western Washington during, or one month prior to, the time that oxygenated fuel is required by the state in any area in western Washington. No exemption shall be allowed for the sale of alcohol in all of eastern Washington during, or one month prior to, the time that oxygenated fuel is required by the state in any area in eastern Washington.
(2) The tax exemption for qualified alcohol shall not apply to any alcohol that is blended with gasoline by any distributor in excess of five million gallons of qualified alcohol per distributor during any calendar year.
(3)(a) For fuel sold beginning on the effective date of this act and until December 31, 1994, the total amount of the tax exemption and credit shall not exceed two and one-half million dollars.
(b) For fuel sold after December 31, 1994, the total amount of the tax exemption and credit shall not exceed five million dollars per calendar year.
NEW SECTION. Sec. 6. (1) If a court enters a final order invalidating or remanding section 2 of this act on the grounds that it does not comply with section 13, chapter 2, Laws of 1994, it is the intent of the legislature that this measure be submitted to the people for their adoption, ratification, or rejection, at the next succeeding general election to be held in this state, in accordance with Article II, section 1 of the state Constitution, as amended, and the laws adopted to facilitate the operation thereof.
(2) If a court remands this act for a vote of the people, the ballot title shall be substantially as follows: "Shall the alcohol fuel tax exemption be limited to alcohol produced from waste products?"
NEW SECTION. Sec. 7. Sections 4 and 5 of this act shall expire on December 31, 1999.
NEW SECTION. Sec. 8. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.
NEW SECTION. Sec. 9. 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 shall take effect May 1, 1994."
ESHB 2326 - S COMM AMD
By Committee on Transportation
ADOPTED 3/1/94
On page 1, line 1 of the title, after "gasohol;" strike the remainder of the title and insert "amending RCW 46.68.090; adding new sections to chapter 82.36 RCW; creating a new section; repealing RCW 82.36.2251; providing an effective date; providing an expiration date; providing for contingent submission of this act to a vote of the people; and declaring an emergency."
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