Sales tax exemption proposed for pulp mill green energy

Wood and forest products sold for biomass production wouldn’t be taxed

January 31, 2008

OLYMPIA – Olympic Peninsula legislators want the state to help pulp and paper mills using biomass technology, like Grays Harbor Paper, build on their green energy programs.

Reps. Kevin Van De Wege (D-Sequim) and Lynn Kessler (D-Hoquiam) are sponsoring House Bill 3328 to eliminate the taxes on products sold to the factories used to create steam for the pulp and paper process or electricity.

“The need for green technology is increasing everyday,” Van De Wege, the prime sponsor, said.  “There will be incredible job growth around producing renewable energy source and some of our local paper mills can step up now and start providing it.”

The wood products used in biomass production generally come from the leftovers of forest harvesting and often go unused.  Biomass is the process of burning fuel to create steam, which is used in the industrial process, but also can be used to produce electricity at the same time. 

Van De Wege and Kessler’s bill would provide the incentive needed to get companies to tap this unused fuel source.

“This bill gives an economic boost to an industry that has gone through some tough times,” Kessler said.  “The communities where these mills are located haven’t always shared in the prosperity that other parts of the state enjoy.”

Both legislators hope members will be excited about the proposal, but at the very least hope to begin the discussion with a hearing in the House.