ERMUSR Misc Issues 02-08-2005 - Laserfiche WebLink

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Page 2 of 3 t3ills of interest to certain memisers In the meantime, there are still a lot of bills of interest to MMUA members. A number of these are items that didn't get taken care of last session, like I_1F 50 (SF 199) which provides funding for renovation offlood-damaged Roseau municipal facilities, or HF 1.99_(SF 240) which provides flood hazard mitigation grants for a number of MMUA member cities. There is also a bill (HF_8, sponsored by Rukavina, DFL-Virginia) that pertains to the Hibbing- Virginiabiomass project. The two cities have formed a joint venture-the Laurentian Energy Authority-which is asking for $2.5 million to help build a wood waste processing facility. The House Jobs and Economic Opportunity Policy and Finance Committee heard the proposal Jan. 19. Hibbing Public Utilities General Manager Jim Kochevar, Virginia Public Utilities General Manager Terry Leoni and Rep. Rukavina all testified for the measure. Rep. Tony Sertich (DFL- Chisholm) made the motion to forward the bill for inclusion in the bonding resolution. It passed unanimously. Renewable energy incentives debated The utility bill of most interest so far this young session has been HF__ 21.$ (Cornish, Smith, Gunther), which was heard Tuesday in the House Regulated Industries Committee. This bill deals with the Renewable Energy Production Incentive (KEPI). Under this statute, owners of wind energy conversion systems with a capacity of 2 MW or less receive 1.5 cents for each kilowatt-hour (kWh) produced for a period of 10 years. The incentive payment is available to only 200 MW of total capacity statewide. Project owners apply to the Department of Commerce to qualify for the incentive. If they are deemed eligible, the project must be operational within 18 months, or approval to receive the incentive payment is withdrawn. Eligibility for all unbuilt projects will expire in May 2005. That stipulation is the current problem. Some proposed projects on "the list" have not become operational within 18 months. Those waiting further down the queue, including Missouri River Energy Services and the Southern Minnesota Municipal Power Agency, among others, want the process to work as the law decrees. But others want more time. The committee tabled the bill Tuesday. Rep. Bob Gunther (R-Fairmont) proposed a possible compromise, the details of which need to be worked out. Personal property tax exemption complicated? Another bill on the MMUA tracking list if HF 41.3 _(Fritz, DFL- Faribault). This is a personal property tax exemption for the Minnesota Municipal Power Agency gas-fired plant in Faribault. While MMPA and local officials have seen eye to eye on this project, that is not the case everywhere. The Goodhue County Board Jan. 4 denied a request for a tax exemption for agas-fired peaking plant near Cannon Falls proposed by Chicago-based Invenergy. How this will affect the once perfunctory personal property tax exemption at the Legislature remains to be seen. Sewer, water locating rule progresses Have you expressed your concern about the proposed rule that would require 'operators' of water and sewer systems to locate service laterals located in the right-of-way? The hearing before the Administrative Law Judge is Feb. 1. Speak now, or forever hold your peace. If you need more info, contact MMUA. 1/31/05