Full Text of SB1820 102nd General Assembly
SB1820sam001 102ND GENERAL ASSEMBLY | Sen. David Koehler Filed: 3/24/2021
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| 1 | | AMENDMENT TO SENATE BILL 1820
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 1820 on page 1, by | 3 | | replacing lines 4 through 15 with the following:
| 4 | | "Section 1. Short title. This Act may be cited as the | 5 | | Energy Community Reinvestment Act. | 6 | | Section 5. Energy Community Transition Payments. | 7 | | (a) For purposes of this Section: | 8 | | "Generation facility" means a plant or equipment used to | 9 | | produce, manufacture, or otherwise generate electricity that | 10 | | is not a transmission facility or an energy storage system | 11 | | procured by a distribution company for support in delivering | 12 | | energy services to end users.
| 13 | | "Wholesale generation company" means a company engaged in | 14 | | the business of producing, manufacturing, or generating | 15 | | electricity for sale at wholesale only.
| 16 | | (b) Any wholesale generation company that does not rely on |
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| 1 | | a renewable, or such company's affiliate, subsidiary, or | 2 | | parent company, that currently has no binding agreement for | 3 | | payments in lieu of transition payments to all taxing | 4 | | districts in which the company's generation facilities are | 5 | | located shall be required to make transition payments to any | 6 | | taxing district in which an affiliated generation facility, or | 7 | | part thereof, is located and has been devalued for property | 8 | | tax payment purposes; provided, however, that where such a | 9 | | binding agreement for the payment in lieu of transition | 10 | | payments has been entered into on or after the effective date | 11 | | of this Act, that agreement shall govern, and that generation | 12 | | facility shall be exempt from the provisions of this Act. | 13 | | Those payments shall offset any reductions of property taxes | 14 | | as a result of any devaluation of that generation facility. | 15 | | This Section does not provide for any exemption from property | 16 | | tax and is in addition to any property tax obligations. | 17 | | (c) For the taxable year in which the wholesale generation | 18 | | company begins decommissioning and for the 3 subsequent | 19 | | taxable years, transition payments shall be the difference | 20 | | between the property taxes due for that property for the | 21 | | current taxable year and the property taxes due for that | 22 | | property for taxable year 2020. From the fifth taxable year | 23 | | following the beginning of the decommissioning process until | 24 | | the tenth taxable year, transition payments shall be | 25 | | calculated as follows: | 26 | | (1) For taxable year 5, the amount shall be equivalent |
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| 1 | | to 90% of the difference between the equalized assessed | 2 | | value of the property as of January 1, 2020 and the | 3 | | equalized assessed value of the property as of taxable | 4 | | year 5, multiplied by the applicable tax rate for that | 5 | | property for the taxable year; | 6 | | (2) For taxable year 6, the amount shall be equivalent | 7 | | to 80% of the difference between the equalized assessed | 8 | | value of the property as of January 1, 2020 and the | 9 | | equalized assessed value of the property as of taxable | 10 | | year 6, multiplied by the applicable tax rate for that | 11 | | property for the taxable year; | 12 | | (3) For taxable year 7, the amount shall be equivalent | 13 | | to 70% of the difference between the equalized assessed | 14 | | value of the property as of January 1, 2020 and the fair | 15 | | cash value of the property as of taxable year 7, | 16 | | multiplied by the applicable tax rate for that property | 17 | | for the taxable year; | 18 | | (4) For taxable year 8, the amount shall be equivalent | 19 | | to 60% of the difference between the equalized assessed | 20 | | value of the property as of January 1, 2020 and the | 21 | | equalized assessed value of the property as of taxable | 22 | | year 8, multiplied by the applicable tax rate for that | 23 | | property for the taxable year; | 24 | | (5) For taxable year 9, the amount shall be equivalent | 25 | | to 50% of the difference between the equalized assessed | 26 | | value of the property as of January 1, 2020 and the |
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| 1 | | equalized assessed value of the property as of taxable | 2 | | year 9, multiplied by the applicable tax rate for the | 3 | | property for the taxable year; and | 4 | | (6) For taxable year 10, the amount shall be | 5 | | equivalent to 40% of the difference between the equalized | 6 | | assessed value of the property as of January 1, 2020 and | 7 | | the equalized assessed value of the property as of taxable | 8 | | year 10, multiplied by the applicable tax rate for the | 9 | | property for the taxable year. | 10 | | (d) Any such transition payments shall be included in the | 11 | | tax base for purposes of determining the taxing district's | 12 | | levy. The Department of Revenue may issue rules and guidelines | 13 | | for implementing the provisions of this Section consistent | 14 | | with preserving the transition payment amounts in the local | 15 | | tax base for such purposes. | 16 | | (e) A generation company or wholesale generation company | 17 | | may, in order to comply with its transition payment liability | 18 | | obligation, execute an agreement for payment in lieu of | 19 | | transition payments with the taxing districts in which such | 20 | | generation facility is sitting, and said company shall be | 21 | | exempt from transition payments, in whole or in part, as | 22 | | provided in any such agreements during terms thereof. Any such | 23 | | agreement shall be the result of good faith negotiations and | 24 | | shall be the equivalent of the property tax obligation based | 25 | | on full and fair cash valuation. Any such negotiated amount | 26 | | shall be included in the tax base for purposes of determining |
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| 1 | | the levy. The Department of Revenue may issue rules and | 2 | | guidelines for implementing the provisions of this Section | 3 | | consistent with preserving the negotiated payment amount in | 4 | | the local tax base for such purpose. | 5 | | (f) A taxing district, acting by and through its governing | 6 | | body and assessors, is hereby authorized to enter into an | 7 | | agreement with a wholesale energy generator concerning | 8 | | payments in lieu of transition payments. A taxing district and | 9 | | wholesale energy generator may agree to ratify any such | 10 | | agreement entered into and in effect prior to the enactment of | 11 | | this act in all respects and as though this Act had been in | 12 | | full force and effect at the time of the execution of said | 13 | | agreement. | 14 | | (g) Agreements between wholesale generation companies and | 15 | | host taxing districts shall be executed as a result of good | 16 | | faith negotiations. Such agreements shall cover a period of | 17 | | time equal to a minimum of ten years. If an agreement on such | 18 | | payment in lieu of transition payments cannot be effected | 19 | | through good faith negotiations, the parties shall submit to | 20 | | arbitration and such arbitration shall be performed by the | 21 | | Department of Revenue or a state-certified professional | 22 | | arbitrator or arbitration firm appointed by the Department of | 23 | | Revenue. | 24 | | (h) The Department of Revenue may adopt rules and may | 25 | | issue guidance for implementing the provisions of this Section | 26 | | consistent with the goal of preserving the transition payment |
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| 1 | | and in lieu of transition payment in the local tax base.".
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