Energy Incentive Bill Gets Final OK

By Dennison, Mike

HELENA – While tax and budget issues grabbed the spotfight at the special session this past week lawmakers on Tuesday also gave final approval to a bill to promote energy development, primarily in Eastern Montana.

“This bill is, first and foremost, about economic opportunity in Eastern Montana,” said Sen. Jeff Essmann, R-Billings, moments before the Senate approved the measure after midnight Monday.

He and other supporters said the bill, which grants broad property tax breaks to new energy projects, is “an important first step” toward boosting coal, wind and other energy development in the state and putting Montana on a level with Wyoming and North Dakota.

“I hope this bill contains enough incentives (for companies) to make a decision to build on our side of the state line,” Essmann said.

The Senate voted 33-17 in favor of the measure early Tuesday morning, and the House concurred later, sending it to Democratic Gov. Brian Schweitzer for his signature.

House Bill 3, sponsored by Rep. Llew Jones, R-Conrad, is a version of energy-related tax breaks first proposed by Schweitzer during the regular session.

Schweitzer’s proposal stalled in the regular session for various reasons, and he included it on the agenda of the special session that began last Thursday.

HB3 slashes property tax rates for new pipelines, power lines, power plants and some power plant equipment involved in the production or transportation of “clean” energy.

Clean energy, as defined in the bill, includes wind power, solar power, ethanol, biodiesel, fuel produced by coal gasification and power generated by coal-fired plants thatcapture their emissions.

Plants, research facilities, power lines and pipelines would get a further property tax reduction, or abatement, during their construction phase and for up to 15 years after they begin operating.

Tax rates on eligible power lines would be cut from 12 percent to 3 percent under HB3, and then to 1.5 percent under the abatement period.

Copyright Billings Gazette May 16, 2007

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