1.1                          A bill for an act 
  1.2             relating to taxation; providing for tax exemptions for 
  1.3             a cogeneration electric generation facility using 
  1.4             waste tires as a primary fuel; amending Minnesota 
  1.5             Statutes 2000, sections 272.02, by adding a 
  1.6             subdivision; 297A.25, subdivision 28; 297A.71, by 
  1.7             adding a subdivision.  
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 2000, section 272.02, is 
  1.10  amended by adding a subdivision to read: 
  1.11     Subd. 45.  [WASTE TIRE COGENERATION FACILITY; PERSONAL 
  1.12  PROPERTY.] Notwithstanding subdivision 9, clause (a), attached 
  1.13  machinery and other personal property which is part of an 
  1.14  electric generating facility that meets the requirements of this 
  1.15  subdivision is exempt.  At the time of construction, the 
  1.16  facility must: 
  1.17     (1) be designed to utilize waste tires as a primary fuel 
  1.18  source; and 
  1.19     (2) be a cogeneration electric generating facility of 15 to 
  1.20  25 megawatts of installed capacity. 
  1.21     Construction of the facility must be commenced after 
  1.22  January 1, 2000, and before January 1, 2004.  Property eligible 
  1.23  for this exemption does not include electric transmission lines 
  1.24  and interconnections or gas pipelines and interconnections 
  1.25  appurtenant to the property or the facility. 
  1.26     <b>[EFFECTIVE DATE.]</b> This section is effective for taxes 
  2.1   levied in 2001, payable in 2002, and thereafter. 
  2.2      Sec. 2.  Minnesota Statutes 2000, section 297A.25, 
  2.3   subdivision 28, is amended to read: 
  2.4      Subd. 28.  [WASTE PROCESSING EQUIPMENT.] The gross receipts 
  2.5   from the sale of and storage, use, or consumption of equipment 
  2.6   used for processing solid or hazardous waste at a resource 
  2.7   recovery facility, as defined in section 115A.03, subdivision 
  2.8   28, are exempt, including pollution control equipment at a 
  2.9   resource recovery facility that burns refuse-derived fuel or 
  2.10  mixed municipal solid waste as its primary fuel.  An electric 
  2.11  generation facility that processes and utilizes waste tires as 
  2.12  its primary fuel is a resource recovery facility for the 
  2.13  purposes of this section.  
  2.14     <b>[EFFECTIVE DATE; INSTRUCTION TO REVISOR.]</b> This section is 
  2.15  effective for purchases and sales made after the date of final 
  2.16  enactment.  In the next edition of Minnesota Statutes, the 
  2.17  revisor of statutes shall codify the amendment to this section 
  2.18  in section 297A.68, subdivision 24. 
  2.19     Sec. 3.  Minnesota Statutes 2000, section 297A.71, is 
  2.20  amended by adding a subdivision to read: 
  2.21     Subd. 23.  [CONSTRUCTION MATERIALS AND EQUIPMENT; WASTE 
  2.22  TIRES COGENERATION ELECTRIC GENERATING FACILITY.] Materials and 
  2.23  supplies used or consumed in, and equipment incorporated into, 
  2.24  the construction, improvement, or expansion of a facility using 
  2.25  waste tires to generate electricity are exempt if: 
  2.26     (1) the facility utilizes waste tires as a primary fuel in 
  2.27  generating electricity; 
  2.28     (2) the facility is a cogeneration facility; and 
  2.29     (3) the installed capacity of the facility is 15 to 25 
  2.30  megawatts. 
  2.31     <b>[EFFECTIVE DATE.]</b> This section is effective for purchases 
  2.32  and sales made after the date of final enactment.