1.1 	A bill for an act
1.2 	relating to taxation; modifying the personal property exemption for certain 
1.3 	electric utility generation facilities;amending Minnesota Statutes 2004, section 
1.4 	272.02, subdivision 55.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Minnesota Statutes 2004, section 272.02, subdivision 55, is amended to read:
1.7 		Subd. 55.Electric generation facility; personal property. Notwithstanding 
1.8 	subdivision 9, clause (a), attached machinery and other personal property which is part of 
1.9 	an electric generating facility that meets the requirements of this subdivision is exempt. At 
1.10 	the time of construction, the facility must be sited on an energy park that (i) is located on 
1.11 	an active mining site, or on a former mining or industrial site where mining or industrial 
1.12 	operations have terminated be designated as an innovative energy project as defined in 
1.13 	section 216B.1694, (ii) isbe within a tax relief area as defined in section  273.134, (iii) 
1.14 	has on-site have access to existing railroad infrastructure within less than three miles, (iv) 
1.15 	has direct rail access to a Great Lakes port, (v) has sufficient private water resources 
1.16 	on site, and (vi) ishave received by resolution approval from the governing body of 
1.17 	the county and township or city in which the proposed facility is to be located for the 
1.18 	exemption of personal property under this subdivision, and (v) be designed to host at 
1.19 	least 500 megawatts of electrical generation.
1.20 	Construction of the first 250 500 megawatts of the facility must be commenced 
1.21 	after January 1, 2002 2006, and before January 1, 2005 2010. Construction of up to an 
1.22 	additional 750 megawatts of generation must be commenced before January 1, 2010
1.23 	2015. Property eligible for this exemption does not include electric transmission lines and 
1.24 	interconnections or gas pipelines and interconnections appurtenant to the property or the 
2.1 	facility. To qualify for an exemption under this subdivision, the owner of the electric 
2.2 	generation facility must have an agreement with the host county, township or city, and 
2.3 	school district, for payment in lieu of personal property taxes to the host county, township 
2.4 	or city, and school district.

2.5 	EFFECTIVE DATE. This section is effective the day following final enactment.