1.1 	A bill for an act
1.2 	relating to taxation; property; providing that certain
1.3 	personal property of an electric generation facility
1.4 	is exempt; amending Minnesota Statutes 2004, section
1.5 	272.02, by adding a subdivision.
1.6 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7 	Section 1. Minnesota Statutes 2004, section 272.02, is
1.8 	amended by adding a subdivision to read:
1.9 		Subd. 68.Electric generation facility personal
1.10 	property. (a) Notwithstanding subdivision 9, clause (a),
1.11 	attached machinery and other personal property which is part of
1.12 	either a simple-cycle, combustion-turbine electric generation
1.13 	facility, or a combined-cycle, combustion-turbine electric
1.14 	generation facility that does not exceed 325 megawatts of
1.15 	installed capacity and that meets the requirements of this
1.16 	subdivision is exempt.  At the time of construction, the
1.17 	facility must:
1.18 	(1) utilize either a simple-cycle or a combined-cycle
1.19 	combustion-turbine generator fueled by natural gas;
1.20 	(2) be connected to an existing 115-kilovolt high-voltage
1.21 	electric transmission line that is within one mile of the
1.22 	facility;
1.23 	(3) be located on an underground natural gas storage
1.24 	aquifer;
1.25 	(4) be designed as either a peaking or intermediate load
2.1 	facility; and 
2.2 	(5) have received, by resolution, the approval from the
2.3 	governing body of the county for the exemption of personal
2.4 	property under this subdivision.
2.5 	(b) Construction of the facility must be commenced after
2.6 	January 1, 2006, and before January 1, 2008.  Property eligible
2.7 	for this exemption does not include electric transmission lines
2.8 	and interconnections or gas pipelines and interconnections
2.9 	appurtenant to the property or the facility.
2.10 	
EFFECTIVE DATE. This section is effective for assessment
2.11 	year 2005, taxes payable in 2006, and thereafter.