15-6-157. Class fourteen property -- description -- taxable percentage. (1) Class fourteen property includes:
     (a) wind generation facilities of a centrally assessed electric power company;
     (b) wind generation facilities owned or operated by an exempt wholesale generator or an entity certified as an exempt wholesale generator pursuant to section 32 of the Public Utility Holding Company Act of 1935, 15 U.S.C. 79z-5a;
     (c) noncentrally assessed wind generation facilities owned or operated by any electrical energy producer;
     (d) wind generation facilities owned or operated by cooperative rural electric associations described under 15-6-137;
     (e) all property of a biodiesel production facility, as defined in 15-24-3102, that has commenced construction after June 1, 2007;
     (f) all property of a biogas production facility, as defined in 15-24-3102, that has commenced construction after June 1, 2007;
     (g) all property of a biomass gasification facility, as defined in 15-24-3102;
     (h) all property of a coal gasification facility, as defined in 15-24-3102, except for property in subsection (1)(k) of this section, that sequesters carbon dioxide;
     (i) all property of an ethanol production facility, as defined in 15-24-3102, that has commenced construction after June 1, 2007;
     (j) all property of a geothermal facility, as defined in 15-24-3102;
     (k) all property of an integrated gasification combined cycle facility, as defined in 15-24-3102, that sequesters carbon dioxide, as required by 15-24-3111(4)(c);
     (l) all property or a portion of the property of a renewable energy manufacturing facility, as defined in 15-24-3102, that has commenced construction after June 1, 2007;
     (m) all property of a natural gas combined cycle facility;
     (n) equipment that is used to capture and to prepare for transport carbon dioxide that will be sequestered or injected for the purpose of enhancing the recovery of oil and gas, other than that equipment at coal combustion plants of the types that are generally in commercial use as of December 31, 2007, that commence construction after December 31, 2007;
     (o) high-voltage direct-current transmission lines and associated equipment and structures, including converter stations and interconnections, other than property classified under 15-6-159, that:
     (i) originate in Montana with a converter station located in Montana east of the continental divide and that are constructed after July 1, 2007;
     (ii) are certified under the Montana Major Facility Siting Act; and
     (iii) provide access to energy markets for Montana electrical generation facilities listed in this section that commenced construction after June 1, 2007;
     (p) all property of electric transmission lines, including substations, that originate at facilities specified in this subsection (1), with at least 90% of electricity carried by the line originating at facilities specified in this subsection (1) and terminating at an existing transmission line or substation that has commenced construction after June 1, 2007;
     (q) the qualified portion of an alternating current transmission line and its associated equipment and structures, including interconnections, that has commenced construction after June 1, 2007.
     (2) (a) The qualified portion of an alternating current transmission line in subsection (1)(q) is that percentage, as determined by the department of environmental quality, of rated transmission capacity of the line contracted for on a firm basis by buyers or sellers of electricity generated by facilities specified in subsection (1) that are located in Montana.
     (b) The department of revenue shall classify the total value of an alternating current transmission line in accordance with the determination made by the department of environmental quality pursuant to subsection (2)(a).
     (c) The owner of property described under this subsection (2) shall disclose the location of the generation facilities specified in subsection (1) and information sufficient to demonstrate that there is a firm contract for transmission capacity available throughout the year. For purposes of the initial qualification, the owner is not required to disclose financial terms and conditions of contracts beyond that needed for classification.
     (3) Class fourteen property does not include facilities:
     (a) at which the standard prevailing rate of wages for heavy construction, as provided in 18-2-401(13)(a), was not paid during the construction phase; or
     (b) that are exempt under 15-6-225.
     (4) For the purposes of this section, "wind generation facilities" means any combination of a physically connected wind turbine or turbines, associated prime movers, and other associated property, including appurtenant land and improvements and personal property, that are normally operated together to produce electric power from wind.
     (5) (a) The department of environmental quality shall determine whether to certify that a transmission line meets the criteria of subsection (1)(o), (1)(p), or (1)(q), as applicable, based on an application provided for in 15-24-3112. The department of environmental quality shall review the certification 10 years after the line is operational, and if the property no longer meets the requirements of subsection (1)(o), (1)(p), or (1)(q), the certification must be revoked.
     (b) If the department of revenue finds that a certification previously granted was based on an application that the applicant knew was false or fraudulent, the property must be placed in class nine under 15-6-141. If the application was fraudulent, the applicant may be liable for additional taxes, penalty, and interest from the time that the certification was in effect.
     (6) Class fourteen property is taxed at 3% of its market value.

     History: En. Sec. 1, Ch. 563, L. 2005; amd. Sec. 11, Ch. 2, Sp. L. May 2007.