RCW 82.08.810 — Exemptions — Air pollution control facilities at a thermal electric generation facility — Exceptions — Exemption certificate — Payments on cessation of operation

(1) For the purposes of this section, "air pollution control facilities" mean any treatment works, control devices and disposal systems, machinery, equipment, structures, property, property improvements, and accessories, that are installed or acquired for the primary purpose of reducing, controlling, or disposing of industrial waste that, if released to the outdoor atmosphere, could cause air pollution, or that are required to meet regulatory requirements applicable to their construction, installation, or operation. (2) The tax levied by RCW 82.08.020 does not apply to: (a) Sales of tangible personal property to a light and power business, as defined in RCW 82.16.010 , for construction or installation of air pollution control facilities at a thermal electric generation facility; or (b) Sales of, cost of, or charges made for labor and services performed in respect to the construction or installation of air pollution control facilities. (3) The exemption provided under this section applies only to sales, costs, or charges: (a) Incurred for air pollution control facilities constructed or installed after May 15, 1997, and used in a thermal electric generation facility placed in operation after December 31, 1969, and before July 1, 1975; (b) If the air pollution control facilities are constructed or installed to meet applicable regulatory requirements established under state or federal law, including the Washington clean air act, chapter 70A.15 RCW; and (c) For which the purchaser provides the seller with an exemption certificate, signed by the purchaser or purchaser's agent, that includes a description of items or services for which payment is made, the amount of the payment, and such additional information as the department reasonably may require. (4) This section does not apply to sales of tangible personal property purchased or to sales of, costs of, or charges made for labor and services used for maintenance or repairs of pollution control equipment. (5) If production of electricity at a thermal electric generation facility for any calendar year after 2002 and before 2023 falls below a twenty percent annual capacity factor for the generation facility, all or a portion of the tax previously exempted under this section in respect to construction or installation of air pollution control facilities at the generation facility shall be due as follows: Portion of previously Year event occurs exempted tax due 2003 100% 2004 95% 2005 90% 2006 85% 2007 80% 2008 75% 2009 70% 2010 65% 2011 60% 2012 55% 2013 50% 2014 45% 2015 40% 2016 35% 2017 30% 2018 25% 2019 20% 2020 15% 2021 10% 2022 5% 2023 0% (6) *RCW 82.32.393 applies to this section. [ 2020 c 20 s 1473 ; 1997 c 368 s 2 .] Notes: *Reviser's note: RCW 82.32.393 expired December 31, 2015. Findings — Intent — 1997 c 368: "(1) The legislature finds that: (a) Thermal electric generation facilities play an important role in providing jobs for residents of the communities where such plants are located; and (b) Taxes paid by thermal electric generation facilities help to support schools and local and state government operations. (2) It is the intent of the legislature to assist thermal electric generation facilities placed in operation after December 31, 1969, and before July 1, 1975, to update their air pollution control equipment and abate pollution by extending certain tax exemptions and credits so that such plants may continue to play a long-term vital economic role in the communities where they are located." [ 1997 c 368 s 1 .] Rules adoption — 1997 c 368: "The department of revenue and the department of ecology may adopt rules to implement this act." [ 1997 c 368 s 15 .] Severability — 1997 c 368: "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." [ 1997 c 368 s 16 .] Effective date — 1997 c 368: "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 takes effect immediately [May 15, 1997]." [ 1997 c 368 s 17 .]