In this Feb. 26, 2014, file photo, TransAlta and its surrounding property is seen from the air north of Centralia.
On Friday, Gov. Jay Inslee vetoed tax incentives that would have helped with the conversion of TransAlta from the state’s only coal-fired plant to natural gas or biomass fuel.
The provision would have provided exemptions from the state sales and use tax to encourage the conversion of the plant in Centralia.
In a response from TransAlta, the company noted the incentives have been under discussion for three years. Senate Bill 5439, sponsored by Sen. John Braun, R-Centralia, and a companion bill in the House contained the same language.
TransAlta said it appreciated Braun’s efforts to include and pass the conversion incentives, while expressing disappointment that Inslee vetoed the language in the bill.
“We are looking at opportunities to retrofit our existing Centralia facility to natural gas-fired generation to provide reliable and affordable power as more renewable energy continues to come online and into the electricity grid — a transition our company strongly supports,” according to TransAlta. “However, we also acknowledge the reality that reliable and affordable baseload power is still greatly needed to meet the electricity demands of our state.”
TransAlta stated the tax incentive is one important factor in regard to the conversion.
“We would not be building a new fossil fuel plant. Instead, TransAlta would modify some equipment at the existing plant to convert the plant to run on gas instead of coal,” according to the company. “TransAlta’s plant at Centralia is still needed to produce electricity.”
Sen. Doug Ericksen, R-Ferndale, expressed his disappointment on the veto.
“The legislative process is based on trust,” Ericksen, chairman of the Senate Energy, Environment and Telecommunications Committee, said. “Today, Jay Inslee violated that trust by reneging on a deal that was worked out over the course of our regular legislative session and three special sessions.”
The Washington Environmental Council on the other hand thanked Inslee for the move, stating the action demonstrates the state is committed to leading the transition to clean energy.
“Tax breaks for fossil fuel take Washington in the wrong direction — relying on dangerous fuels that feed climate change,” according to a statement from the council.
In 2011, then-Gov. Christine Gregoire signed an agreement with Canadian-based TransAlta to shut down the first coal-fired boiler by 2020 and the other by 2025.
For a more detailed story on the issue, check out the Thursday edition of The Chronicle.
