HF 2363

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to taxation; property; clarifying the market
value exclusion for electric power generation
efficiency; amending Minnesota Statutes 2004, section
272.0211, subdivisions 1, 2.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2004, section 272.0211,
subdivision 1, is amended to read:

Subdivision 1.

Efficiency determination and
certification.

An owner or operator of a new or existing
electric power generation facility, excluding wind energy
conversion systems, may apply to the commissioner of revenue for
a market value exclusion on the property as provided for in this
section. This exclusion shall apply only to the market value of
the equipment of the facility, and shall not apply to the
structures and the land upon which the facility is located. The
commissioner of revenue shall prescribe the forms and procedures
for this application. Upon receiving the application, the
commissioner of revenue shall request the commissioner of
commerce to make a determination of the efficiency of the
applicant's electric power generation facility. deleted text begin In calculating
the efficiency of a facility, deleted text end The commissioner of commerce shall
deleted text begin use a definition of deleted text end new text begin calculate new text end efficiency deleted text begin which calculates
efficiency as the sum of:
deleted text end

deleted text begin (1) the useful electrical power output; plus
deleted text end

deleted text begin (2) the useful thermal energy output; plus
deleted text end

deleted text begin (3) the fuel energy of the useful chemical products,
deleted text end

deleted text begin all divided by the total energy input to the facility, expressed
as a percentage deleted text end new text begin as the ratio of useful energy outputs to energy
inputs, expressed as a percentage, based on the performance of
the facility's equipment during a heat rate test conducted in
conformance with the American Society of Mechanical Engineers
Performance Test Codes PTC-46-1996: Performance Test Code on
Overall Plant Performance new text end . The commissioner must include in
this formula the energy used in any on-site preparation of
materials necessary to convert the materials into the fuel used
to generate electricity, such as a process to gasify petroleum
coke. The commissioner shall use the deleted text begin high heating value deleted text end new text begin Higher
Heating Value (HHV) new text end for all substances in the commissioner's
efficiency calculations, except for wood for fuel in a
biomass-eligible project under section 216B.2424; for these
instances, the commissioner shall adjust the heating value to
allow for energy consumed for evaporation of the moisture in the
wood. The applicant shall provide the commissioner of commerce
with whatever information the commissioner deems necessary to
make the determination. Within 30 days of the receipt of the
necessary information, the commissioner of commerce shall
certify the findings of the efficiency determination to the
commissioner of revenue and to the applicant. deleted text begin The commissioner
of commerce shall determine the efficiency of the facility and
certify the findings of that determination to the commissioner
of revenue every two years thereafter from the date of the
original certification.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for assessment
year 2005 and thereafter, for taxes payable in 2006 and
thereafter.
new text end

Sec. 2.

Minnesota Statutes 2004, section 272.0211,
subdivision 2, is amended to read:

Subd. 2.

Sliding scale exclusion.

Based upon the
efficiency determination provided by the commissioner of
commerce as described in subdivision 1, the commissioner of
revenue shall subtract deleted text begin five deleted text end new text begin eight new text end percent of the taxable market
value of the qualifying property for each percentage point that
the efficiency of the specific facility, as determined by the
commissioner of commerce, is above deleted text begin 35 deleted text end new text begin 40 new text end percent. The reduction
in taxable market value shall be reflected in the taxable market
value of the facility beginning with the assessment year
immediately following the determination. For a facility that is
assessed by the county in which the facility is located, the
commissioner of revenue shall certify to the assessor of that
county the percentage of the taxable market value of the
facility to be excluded.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for assessment
year 2005 and thereafter, for taxes payable in 2006 and
thereafter.
new text end