1.1 	A bill for an act
1.2 	relating to taxation; modifying a property tax exemption for certain biomass 
1.3 	electric generation facilities; amending Minnesota Statutes 2006, section 272.02, 
1.4 	subdivision 82.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Minnesota Statutes 2006, section 272.02, subdivision 82, is amended to read:
1.7 		Subd. 82.Biomass electric generation facility; personal property. (a) 
1.8 	Notwithstanding subdivision 9, clause (a), attached machinery and other personal property 
1.9 	which is a part of an electric generation facility, including remote boilers that comprise 
1.10 	part of the district heating system, generating up to 30 megawatts of installed capacity and 
1.11 	that meets the requirements of this subdivision is exempt. At the time of construction, the 
1.12 	facility must:
1.13 	(1) be designed to utilize a minimum 90 percent waste biomass as a fuel;
1.14 	(2) not be owned by a public utility as defined in section 216B.02, subdivision 4;
1.15 	(3) be located within a city of the first class and have its primary location at a former 
1.16 	garbage transfer station; and
1.17 	(4) be designed to have capability to provide baseload energy and district heating.
1.18 	(b) Construction of the facility must be commenced after January 1, 2004, and 
1.19 	before January 1, 2008 2010. Property eligible for this exemption does not include electric 
1.20 	transmission lines and interconnections or gas pipelines and interconnections appurtenant 
1.21 	to the property or the facility.

1.22 	EFFECTIVE DATE. This section is effective for property taxes payable in 2009 
1.23 	and thereafter.