Unleaded aircraft fuel/tax

AN ACT Relating to establishing tax exemptions for unleaded 1
aircraft fuel; amending RCW 82.42.030, 82.21.040, and 82.23A.030; 2
reenacting and amending RCW 82.42.010; adding a new section to 3
chapter 82.08 RCW; adding a new section to chapter 82.12 RCW; adding 4
a new section to chapter 82.23B RCW; creating new sections; providing 5
an effective date; and providing expiration dates. 6
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:7
NEW SECTION. Sec. 1. It is the intent of the legislature to 8
support the eliminate aviation gasoline lead emissions initiative led 9
by the environmental protection agency and the federal aviation 10
administration through incentivizing the adoption of lead-free 11
aviation fuel alternatives. The environmental protection agency has 12
found that lead emissions from certain aircraft engines cause or 13
contribute to lead air pollution that may be reasonably anticipated 14
to endanger public health, and Washington state has a critical 15
interest in ensuring that alternatives to such fuels are broadly 16
available and utilized by the aviation community. In compliance with 17
the clean air act, federal agencies, aviation experts, engineers, and 18
chemists have worked tirelessly to develop alternative lead-free 19
aviation fuel that can be safely utilized by standard piston powered 20
airplanes. The result of this coordinated effort was successful 21
H-0149.2
HOUSE BILL 1084
State of Washington 69th Legislature 2025 Regular Session
By Representatives Dent, Springer, Keaton, Couture, and Orcutt
Prefiled 12/16/24. Read first time 01/13/25. Referred to Committee
on Finance.
p. 1 HB 1084
development of an alternative lead-free fuel, yet commercial 1
availability and widespread adoption of this alternative lead-free 2
fuel remains a challenge. The legislature intends to incentivize the 3
widespread adoption of lead-free aviation fuel through providing 4
various excise tax exemptions for both businesses and consumers who 5
utilize these safer alternatives. 6
Sec. 2. RCW 82.42.010 and 2024 c 1 s 17 are each reenacted and 7
amended to read as follows: 8
The definitions in this section apply throughout this chapter 9
unless the context clearly requires otherwise. 10
(1) "Air carrier" means any airline, air cargo carrier, air taxi, 11
air commuter, or air charter operator, that provides routine air 12
service to the general population for compensation or hire, and 13
operates at least ((fifteen)) 15 round trips per week between two or 14
more points and publishes flight schedules which specify the times, 15
days of the week, and points between which it operates. Where it is 16
doubtful that an operation is for "compensation or hire," the test 17
applied is whether the air service is merely incidental to the 18
person's other business or is, in itself, a major enterprise for 19
profit. 20
(2) "Aircraft" means every contrivance now known or hereafter 21
invented, used or designed for navigation of or flight in the air, 22
operated or propelled by the use of aircraft fuel.23
(3) "Aircraft fuel" means gasoline and any other inflammable 24
liquid, by whatever name such liquid is known or sold, the chief use 25
of which is as fuel for the propulsion of aircraft, except gas or 26
liquid, the chief use of which as determined by the director, is for 27
purposes other than the propulsion of aircraft. 28
(4) "Dealer" means any person engaged in the retail sale of 29
aircraft fuel. 30
(5) "Deny" means to decline acceptance of an application for 31
licensure or reinstatement. 32
(6) "Department" means the department of licensing.33
(7) "Director" means the director of licensing.34
(8) "Distributor" means any person engaged in the sale of 35
aircraft fuel to any dealer and includes any dealer from whom the tax 36
hereinafter imposed has not been collected. 37
(9) "Local service commuter" means an air taxi operator who 38
operates at least five round-trips per week between two or more 39
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points; publishes flight schedules which specify the times, days of 1
the week, and points between which it operates; and whose aircraft 2
has a maximum capacity of 60 passengers or 18,000 pounds of useful 3
load. 4
(10) "Person" means every natural person, firm, partnership, 5
association, or private or public corporation. 6
(11) "Refuse" has the same meaning as "deny" in subsection (5) of 7
this section. 8
(12) "Revoke" means to prohibit all authority granted by this 9
chapter, including the display and use of credentials issued by the 10
department for a period of one year or greater or for an indefinite 11
period. 12
(13) "Suspend" means to restrict the grant of authority under 13
this chapter for a period of less than one year. 14
(14) "Unleaded aircraft fuel" means specialized 100 octane fuel 15
used to power piston engine aircraft that does not contain 16
tetraethyllead.17
Sec. 3. RCW 82.42.030 and 2013 c 225 s 303 are each amended to 18
read as follows: 19
The provision of RCW 82.42.020 imposing the payment of an excise 20
tax on each gallon of aircraft fuel sold, delivered or used in this 21
state does not apply to: 22
(1) Aircraft fuel sold for export and exported from this state;23
(2) Aircraft fuel imported into the state in interstate or 24
foreign commerce and intended to be sold while in interstate or 25
foreign commerce; 26
(3) Aircraft fuel sold to an agency of the United States 27
government; 28
(4) Aircraft fuel delivered directly into the aircraft fuel tanks 29
of equipment operated by an air carrier or supplemental air carrier 30
operating under a certificate of public convenience and necessity 31
under the provisions of the federal aviation act of 1958, P.L. 32
85-726, as amended; 33
(5) Aircraft fuel delivered directly into the aircraft fuel tanks 34
of equipment operated by a local service commuter;35
(6) Aircraft fuel sold to emergency medical air transport 36
entities; 37
(7) Aircraft fuel sold to a licensed aircraft fuel distributor;38
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(8) Aircraft fuel delivered into the bulk storage tank of a 1
certified user; 2
(9) Aircraft fuel used in the operation of aircraft for testing 3
or experimental purposes; ((and))4
(10) Aircraft fuel used in the operation of aircraft when such 5
operation is for the training of crews in Washington state for 6
purchasers of aircraft who are certified air carriers; and7
(11) Unleaded aircraft fuel sold, delivered, or used in the 8
state. 9
NEW SECTION. Sec. 4. A new section is added to chapter 82.08 10
RCW to read as follows: 11
(1) The tax levied by RCW 82.08.020 does not apply to sales of 12
unleaded aircraft fuel as defined in RCW 82.42.010.13
(2) This section expires January 1, 2032. 14
NEW SECTION. Sec. 5. A new section is added to chapter 82.12 15
RCW to read as follows: 16
(1) The provisions of this chapter do not apply with respect to 17
the use of unleaded aircraft fuel as defined in RCW 82.42.010.18
(2) This section expires January 1, 2032. 19
Sec. 6. RCW 82.21.040 and 2024 c 241 s 1 are each amended to 20
read as follows: 21
The following are exempt from the tax imposed in this chapter:22
(1) Any successive possession of a previously taxed hazardous 23
substance. If tax due under this chapter has not been paid with 24
respect to a hazardous substance, the department may collect the tax 25
from any person who has had possession of the hazardous substance. If 26
the tax is paid by any person other than the first person having 27
taxable possession of a hazardous substance, the amount of tax paid 28
shall constitute a debt owed by the first person having taxable 29
possession to the person who paid the tax. 30
(2) Any possession of a hazardous substance by a natural person 31
under circumstances where the substance is used, or is to be used, 32
for a personal or domestic purpose (and not for any business purpose) 33
by that person or a relative of, or person residing in the same 34
dwelling as, that person. 35
(3) Any possession of a hazardous substance amount which is 36
determined as minimal by the department of ecology and which is 37
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possessed by a retailer for the purpose of making sales to ultimate 1
consumers. This exemption does not apply to pesticide or petroleum 2
products. 3
(4) Any possession of alumina or natural gas. 4
(5)(a) Until January 1, 2028, any possession of a hazardous 5
substance as defined in RCW 82.21.020(1)(c) that is solely for use by 6
a farmer or certified applicator as an agricultural crop protection 7
product and warehoused in this state or transported to or from this 8
state, provided that the person possessing the substance does not 9
otherwise use, manufacture, package for sale, or sell the substance 10
in this state. 11
(b) The definitions in this subsection apply throughout this 12
section unless the context clearly requires otherwise.13
(i) "Agricultural crop protection product" means a chemical 14
regulated under the federal insecticide, fungicide, and rodenticide 15
act, 7 U.S.C. Sec. 136 as amended as of September 1, 2015, when used 16
to prevent, destroy, repel, mitigate, or control predators, diseases, 17
weeds, or other pests. 18
(ii) "Certified applicator" has the same meaning as provided in 19
RCW 17.21.020. 20
(iii) "Farmer" has the same meaning as in RCW 82.04.213.21
(iv) "Manufacturing" includes mixing or combining agricultural 22
crop protection products with other chemicals or other agricultural 23
crop protection products. 24
(v) "Package for sale" includes transferring agricultural crop 25
protection products from one container to another, including the 26
transfer of fumigants and other liquid or gaseous chemicals from one 27
tank to another. 28
(vi) "Use" has the same meaning as in RCW 82.12.010.29
(6) Any possession of unleaded aircraft fuel as defined in RCW 30
82.42.010.31
(7) Persons or activities which the state is prohibited from 32
taxing under the United States Constitution. 33
Sec. 7. RCW 82.23A.030 and 1989 c 383 s 17 are each amended to 34
read as follows: 35
The following are exempt from the tax imposed in this chapter:36
(1) Any successive possession of a previously taxed petroleum 37
product. If tax due under this chapter has not been paid with respect 38
to a petroleum product, the department may collect the tax from any 39
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person who has had possession of the petroleum product. If the tax is 1
paid by any person other than the first person having taxable 2
possession of a petroleum product, the amount of tax paid shall 3
constitute a debt owed by the first person having taxable possession 4
to the person who paid the tax. 5
(2) Any possession of a petroleum product by a natural person 6
under circumstances where the substance is used, or is to be used, 7
for a personal or domestic purpose (and not for any business purpose) 8
by that person or a relative of, or person residing in the same 9
dwelling as, that person. 10
(3) Persons or activities which the state is prohibited from 11
taxing under the United States Constitution. 12
(4) Any persons possessing a petroleum product where such 13
possession first occurred before July 1, 1989. 14
(5) Any possession of (a) natural gas, (b) petroleum coke, or (c) 15
liquid fuel or fuel gas used in petroleum processing.16
(6) Any possession of petroleum products that are exported for 17
use or sale outside this state as fuel. 18
(7) Any possession of petroleum products packaged for sale to 19
ultimate consumers. 20
(8) Any possession of unleaded aircraft fuel as defined in RCW 21
82.42.010.22
NEW SECTION. Sec. 8. A new section is added to chapter 82.23B 23
RCW to read as follows: 24
(1) The provisions of this chapter do not apply with respect to 25
the receipt of unleaded aircraft fuel as defined in RCW 82.42.010.26
(2) This section expires January 1, 2032. 27
NEW SECTION. Sec. 9. (1) This section is the tax preference 28
performance statement for the tax preferences contained in this act. 29
This performance statement is only intended to be used for subsequent 30
evaluation of the tax preferences. It is not intended to create a 31
private right of action by any party or be used to determine 32
eligibility for preferential tax treatment.33
(2) The legislature categorizes these tax preferences as ones 34
intended to induce certain designated behavior by taxpayers, as 35
indicated in RCW 82.32.808(2)(a). 36
(3) It is the legislature's specific public policy objective to:37
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(a) Incentivize utilization of alternative 100 octane unleaded 1
aircraft fuel by the aviation community; and 2
(b) Increase the availability of unleaded aircraft fuel in the 3
marketplace. 4
(4) It is the legislature's intent to incentivize the adoption, 5
utilization, and availability of unleaded aircraft fuel in order to 6
facilitate the phaseout of 100LL aircraft fuel in Washington state.7
(5) The legislature intends to extend the expiration date of the 8
tax preferences in this act, if a review finds that:9
(a) Aircraft operators or pilots of piston powered aircraft are 10
transitioning from use of leaded aircraft fuel to use of unleaded 11
aircraft fuel; 12
(b) Unleaded aircraft fuel is available for purchase at an 13
increasing number of airports across Washington state; and14
(c) Lead emissions from aircraft engines has decreased within 15
Washington state. 16
(6) In order to obtain the data necessary to perform the review 17
in subsection (5) of this section, the joint legislative audit and 18
review committee must refer to reports or data issued by the 19
environmental protection agency, federal aviation administration, 20
eliminate aviation gasoline lead emissions initiative partnership, 21
department of revenue, department of ecology, and other involved 22
federal, state, or local agencies, or stakeholder groups aiding in 23
the transition to lead-free aircraft fuel alternatives. The committee 24
may also refer to data provided by individual aircraft fuel 25
distributors, airports, pilots, aircraft operators, and any other 26
data sources, as needed. 27
NEW SECTION. Sec. 10. Sections 1 through 3 and 6 of this act 28
expire January 1, 2032.29
NEW SECTION. Sec. 11. Section 7 of this act expires July 1, 30
2031.31
NEW SECTION. Sec. 12. This act takes effect August 1, 2025.32
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