(1) "To manufacture" embraces all activities of a commercial or industrial nature wherein labor or skill is applied, by hand or machinery, to materials so that as a result thereof a new, different or useful substance or article of tangible personal property is produced for sale or commercial or industrial use, and includes:
(a) The production or fabrication of special made or custom made articles;
(b) The production or fabrication of dental appliances, devices, restorations, substitutes, or other dental laboratory products by a dental laboratory or dental technician;
(c) Cutting, delimbing, and measuring of felled, cut, or taken trees;
(d) Crushing and/or blending of rock, sand, stone, gravel, or ore;
(e) The production of compressed natural gas or liquefied natural gas for use as a transportation fuel as defined in RCW
82.16.310; and
(f) The production or processing of renewable natural gas.
(2) "To manufacture" does not include:
(a) Conditioning of seed for use in planting; cubing hay or alfalfa;
(b) Activities which consist of cutting, grading, or ice glazing seafood which has been cooked, frozen, or canned outside this state;
(c) The growing, harvesting, or producing of agricultural products;
(d) Packing of agricultural products, including sorting, washing, rinsing, grading, waxing, treating with fungicide, packaging, chilling, or placing in controlled atmospheric storage;
(e) The production of digital goods;
(f) The production of computer software if the computer software is delivered from the seller to the purchaser by means other than tangible storage media, including the delivery by use of a tangible storage media where the tangible storage media is not physically transferred to the purchaser; and
(g) Except as provided in subsection (1)(e) of this section, any activity that is integral to any public service business as defined in RCW
82.16.010 and with respect to which the gross income associated with such activity: (i) Is subject to tax under chapter
82.16 RCW; or (ii) would be subject to tax under chapter
82.16 RCW if such activity were conducted in this state or if not for an exemption or deduction.
(3) With respect to wastewater treatment facilities:
(a) "To manufacture" does not include the treatment of wastewater, the production of reclaimed water, and the production of class B biosolids; and
(b) "To manufacture" does include the production of class A or exceptional quality biosolids, but only with respect to the processing activities that occur after the biosolids have reached class B standards.