HB1018

HB1018 – Adds ten years to the tax exemption for hog fuel used for electricity, steam, heat or biofuel.
Prime Sponsor – Representative Tharinger (D; 24th District; NW Olympic Peninsula) (Co-Sponsors Chapman & Fey – Ds; Orcutt & Abbarno – Rs)
Current status – Had a hearing in Senate Ways and Means March 23rd; passed out of committee April 4th and referred to Rules. Passed by the Senate April 19th.
Next step would be – To the Governor.
Legislative tracking page for the bill.
SB5030 is a companion bill in the Senate.

Comments –
The same proposal was introduced by Representative Chapman in 2021 as HB1387, but did not get a hearing. It passed the House last year as HB1924, under Representative Tharinger’s sponsorship.

In the House –
Passed out of the House Finance Committee  January 19th. Referred to Rules, and passed by the House unanimously March 16th.

Summary –
The bill would extend the current sales and use tax exemptions for hog fuel used to produce electricity, steam, heat, or biofuel for ten years, until June 2034. (The bill declares the policy objective of the exemption is to increase the ability of beneficiary facilities to provide at least 75 percent of their employees with medical and dental insurance and a retirement plan, but this is not a requirement. It’s only to be used by the Joint Legislative Audit and Review Committee in evaluating the effectiveness of the exemption.)

JLARC reviewed a previous exemption in 2019. It estimated that the exemption would save the sixteen participating facilities $5.6 million over the 2021-2023 biennium. Employment had only gone down by 281 jobs between 2013 and 2017, from 5,139 jobs to 4,858, so that exemption easily met the stated policy goal of retaining at least 75% of the jobs.