Locke offers plan to assist aluminum makers
Tax break that would begin in 2004 linked to job stability
Bert Caldwell - Staff writer
Washington's aluminum smelters would get a small boost from a provision in the state budget unveiled Tuesday by Gov. Gary Locke.
His proposal would exempt aluminum makers from brokerage taxes paid on natural gas purchased to fuel generating plants adjacent to smelters.
To qualify for the incentive, owners would have to maintain employment levels and commit to investing in conservation and renewable energy.
The exemptions would begin in 2004. There was no estimate given for the financial impact to state revenues.
Susan Ashe, spokeswoman for Kaiser Aluminum Corp., said the company supports the measure, but she added that the exemption should be just one component of a number that would give the industry some relief from electricity costs that have forced four of 10 smelters in the Northwest to close down completely in recent months.
Kaiser has idled both its Washington plants; Tacoma in June, Mead last week. The company sold the power needed to operate those plants because exploding electricity prices offer greater profit potential than does aluminum production.
But hundreds of workers have lost their jobs.
Ashe said Kaiser has considered participating in the construction of gas-fired power plants, on site and off. No decisions have been made, she said.
Golden Northwest Aluminum Co., which operates smelters in The Dalles, Ore., and Goldendale, Wash., is working on a plan to site a turbine at its Washington plant.
Chief Executive Officer Brett Wilcox could not be reached for comment on how helpful the governor's proposal would be to his project.
Sen. Lisa Brown, D-Spokane, who will chair the Senate Finance Committee when the Legislature convenes next month, said she is concerned about the viability of the aluminum industry in the region.
But the power issues confronting the industry are part of a broader problem the Legislature must try to help resolve, she said.
"I want to look at the big picture," Brown said.