1.1 	A bill for an act
1.2 	relating to taxation; property; providing that certain
1.3 	personal property of an electric generation facility
1.4 	is exempt from property taxation; amending Minnesota
1.5 	Statutes 2004, 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 2004, section 272.02, is
1.8 	amended by adding a subdivision to read:
1.9 		Subd. 68.Electric generation facility; personal
1.10 	property. Notwithstanding subdivision 9, clause (a), attached
1.11 	machinery and other personal property which is part of an
1.12 	existing simple-cycle, combustion-turbine electric generation
1.13 	facility that exceeds 300 megawatts of installed capacity and
1.14 	that meets the requirements of this subdivision is exempt.  At
1.15 	the time of the construction, the facility must:
1.16 	(1) be designed to utilize natural gas as a primary fuel;
1.17 	(2) be owned by a public utility as defined in section
1.18 	216B.02, subdivision 4, and be located at or interconnected with
1.19 	an existing generating plant of the utility;
1.20 	(3) be designed to provide peaking, emergency backup, or
1.21 	contingency services;
1.22 	(4) satisfy a resource need identified in an approved
1.23 	integrated resource plan filed under section 216B.2422; and 
1.24 	(5) have received, by resolution, the approval from the
1.25 	governing body of the county and the city for the exemption of
2.1 	personal property under this subdivision.
2.2 	Construction of the facility expansion must be commenced
2.3 	after January 1, 2004, and before January 1, 2005.  Property
2.4 	eligible for this exemption does not include electric
2.5 	transmission lines and interconnections or gas pipelines and
2.6 	interconnections appurtenant to the property or the facility.
2.7 	
EFFECTIVE DATE. This section is effective beginning with
2.8 	assessment year 2005, for taxes payable in 2006 and thereafter.