HF 2681

as introduced - 86th Legislature (2009 - 2010) Posted on 02/09/2010 11:32pm

A bill for an act
relating to taxation; property; electric generation facility; modifying the in-lieu
payment agreement; amending Minnesota Statutes 2009 Supplement, section
272.02, subdivision 92.

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

Section 1.

Minnesota Statutes 2009 Supplement, section 272.02, subdivision 92,
is amended to read:

Subd. 92.

Electric generation facility; personal property.

(a) Notwithstanding
subdivision 9, clause (a), attached machinery and other personal property that is part of
an electric generation facility that exceeds 150 megawatts of installed capacity, does not
exceed 780 megawatts of summer capacity, and meets the requirements of this subdivision
is exempt. At the start of construction, the facility must:

(1) be designed to utilize natural gas as a primary fuel;

(2) be owned by an entity other than a public utility as defined in section 216B.02,
subdivision 4;

(3) be located within five miles of two or more interstate natural gas pipelines;

(4) be located within one mile of an existing electrical transmission substation with
operating alternating current voltages of 115 kV, 345 kV, and 500 kV;

(5) be designed to provide electrical capacity, energy, and ancillary services;

(6) have satisfied all of the requirements under section 216B.243;

(7) have executed an interconnection agreement with the Midwest Independent
System Operator that does not require the acquisition of more than one mile of new
electric transmission right-of-way within the county where the facility is located, and does
not provide for any other new routes or corridors for future electric transmission lines in
the county where the facility is located;

(8) be located in a county with an essential services and transmission services
ordinance;

(9) have signed a development agreement with the county board in the county in
which the facility is located. The development agreement must be adopted by a two-thirds
vote of the county board, and must contain provisions ensuring:

(i) the facility is designed to use effluent from a wastewater treatment facility as
its preferred water source if it includes any combined-cycle units, and will not seek an
exemption from legislative approval under section 103G.265, subdivision 3, paragraph
(b); and

(ii) all processed wastewater discharge will be colocated with the outfall of a
wastewater treatment facility;

(10) have signed a development agreement with the township board in the township
in which the facility is located containing provisions ensuring that noise and visual
impacts of the facility are mitigated. The development agreement must be adopted by a
two-thirds vote of the township board; and

(11) have an agreement with the host county, township, and school district for
payment in lieu of personal property taxes to the host county, township, and school
district deleted text begin for a total amount not to exceed $600,000 per year deleted text end new text begin which shall be in effect new text end for the
operating life of the facility. Any amount distributed to the school district is not subject
to the deductions under section 126C.21.

(b) Construction of the facility must begin after March 1, 2010, and before March 1,
2014. Property eligible for this exemption does not include electric transmission lines and
interconnections or gas pipelines and interconnections appurtenant to the facility.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after final enactment.
new text end