We’re happy to say that AmeriGas is ready and able to start processing Cap and Invest exemptions and reimbursements for our customers who qualify for an agricultural exemption according to Washington State’s criteria.
To get started, please complete and submit the Washington CCA Agricultural Exemption Certificate. This form is a self-certification by you that your business—and its uses of propane—meet the criteria to be considered exempt.
If you use propane for anything that doesn’t qualify for the exemption, you’ll need to let us know in the Exemption Certificate form. Once processed, we’ll no longer charge Cap and Invest to your delivery locations that you self-certify to us are exempt.
You’ll also need to complete a separate reimbursement request for exempted gallons purchased from AmeriGas since January 1, 2023 (more on that below).
What qualifies as exempt?
First, some background information. In 2021, the Washington State Legislature passed the Climate Commitment Act (“CCA”) which went into effect on January 1, 2023. This created a market-based carbon tax program known as Cap and Invest which limits a company’s allowable emissions AND assesses an additional tax on certain types of fuels including gasoline, diesel, and—you guessed it—propane.
However, according to the CCA, farm fuel users who use propane for agricultural purposes are exempt from paying the Cap and Invest tax on those gallons used for agricultural purposes. Washington state defines “farm fuel user” as a farmer or someone who provides horticultural services to farmers. Agricultural purposes are defined as the performance of activities directly related to the growing, raising, or producing of agricultural products. Definitions of “farm fuel user” and “agricultural purpose” can be found in the Reimbursement Request Form and Exemption Certificate.
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Emissions from “motor vehicle fuel or special fuel that is used exclusively for agricultural purposes by a farm fuel user” are exempt from coverage under the Washington State Cap-and-Invest Program. (RCW 70A.65.080(7)(e)(i)). "Agricultural purposes" and "farm fuel user" have the same meanings as provided in RCW 82.08.865, stated below.
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According to RCW 82.08.865(2)(e), a “farm fuel user” is defined as a farmer or “a person who provides horticultural services for farmers, such as soil preparation services, crop cultivation services, and crop harvesting services.”
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According to RCW 82.08.865(2)(a)(i), "Agricultural purposes" means the performance of activities directly related to the growing, raising, or producing of agricultural products. "Agricultural purposes" does not include: (A) Heating space for human habitation or water for human consumption; or (B) transporting on public roads individuals, agricultural products, farm machinery or equipment, or other tangible personal property, except when the transportation is incidental to transportation on private property and the fuel used for such transportation is not subject to tax under chapter 82.38 RCW. Additionally, RCW 82.04.213(4) states "agriculture," "farming," "horticulture," "horticultural," and "horticultural product" does not include “cannabis, usable cannabis, and cannabis infused products.”
For more information on exemption eligibility or any questions that you may have concerning an exemption from Washington State’s Cap-and-Invest Program, please contact the Washington State Department of Ecology or visit their website at https://ecology.wa.gov/air-climate/climate-commitment-act/cap-and-invest.
If you have questions about the Washington State Cap and Invest program or determining your eligibility for a self-certified exemption, you can find out more here.
Next, complete your reimbursement request.
Once you’ve submitted your self-certified Exemption Certificate, you’ll also need to fill out the form to request reimbursement from AmeriGas for gallons previously purchased from us. You’ll need your account number and the total number of gallons that you’ve purchased from AmeriGas since January 1, 2023, that were used for agricultural purposes.
We’ll process your reimbursement request and issue a credit to your account for any Cap and Invest fees that you’ve paid since January 1, 2023, for the gallons that you self-certify to us were used for agricultural purposes.