1.1                          A bill for an act 
  1.2             relating to taxation; exempting certain property of a 
  1.3             small biomass electrical generating facility from 
  1.4             property taxes; amending Minnesota Statutes 2000, 
  1.5             section 272.02, by adding a subdivision. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 2000, section 272.02, is 
  1.8   amended by adding a subdivision to read: 
  1.9      Subd. 50.  [SMALL BIOMASS ELECTRIC GENERATION FACILITY; 
  1.10  PERSONAL PROPERTY.] Notwithstanding subdivision 9, clause (a), 
  1.11  attached machinery and other personal property which is part of 
  1.12  an electrical generating facility that meets the requirements of 
  1.13  this subdivision is exempt.  At the time of construction the 
  1.14  facility must: 
  1.15     (1) have a generation capacity of less than 25 megawatts; 
  1.16     (2) provide process heating needs in addition to electrical 
  1.17  generation; and 
  1.18     (3) utilize agricultural by-products from the malting 
  1.19  process and other biomass fuels as its primary fuel source.  
  1.20     Property eligible for this exemption does not include 
  1.21  electric transmission lines and interconnections or gas 
  1.22  pipelines and interconnections appurtenant to the property or 
  1.23  facility. 
  1.24     <b>[EFFECTIVE DATE.]</b> This section is effective for assessment 
  1.25  year 2003, and thereafter.