Integrated gasification combined cycle electric generation.

WORKING DRAFT
2007
STATE OF WYOMING
07LSO-0282.E1

HOUSE BILL
NO.
HB0143

Integrated gasification combined cycle electric generation.

Sponsored by:
Joint Minerals, Business and Economic Development Interim Committee

A BILL

for

AN ACT relating to taxation and revenue; exempting coal used for integrated gasification combined cycle electricity generation from specified severance taxes; specifying requirements for exemption to apply; providing for administration; providing for reports; and providing for an effective date.

Be It Enacted by the Legislature of the State of Wyoming:

Section 1.

W.S. 39
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14
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105 by creating new subsections (e) and (f) is amended to read:

39
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14
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105.

Exemptions.

(e)

As provided in this subsection, coal purchased for consumption at a qualifying integrated gasification combined cycle facility is exempt from the taxes imposed by W.S. 39
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14
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104(a)(ii) through (vi) and (b)(ii) and (iii). The exemption shall apply only to coal sold and delivered to a qualifying integrated gasification combined cycle facility for consumption in any of the calendar years 2008 through 2030. In order to qualify for the exemption, the producer shall establish to the department that it has entered into a contract to sell the coal which is subject to the exemption to a qualifying integrated gasification combined cycle facility and that the contract provides a reduction in the price, at which the coal would otherwise be sold, equal to or exceeding the value of the exemption and that all other requirements of this subsection have been met. For purposes of this subsection, a "qualifying integrated gasification combined cycle facility" means:

(i)

Any facility in Wyoming that produces electricity by converting coal to synthesis gas which is used in all or in part to fuel a combined-cycle power plant consisting of a combustion turbine and a steam turbine;

(ii)

Which has a nameplate electrical capacity rating of at least two hundred fifty (250) megawatts; and

(iii)

Which, at the time of purchasing the coal, holds a current certificate issued pursuant to subsection (f) of this section.

(f)

The department shall:

(i)

Issue a certification valid for two (2) years to an integrated gasification combined cycle facility making application to the department and which meets the provisions of paragraphs (e)(i) and (ii) of this section;

(ii)

Audit, not less than biennially, each integrated gasification combined cycle facility issued a certification. If the department determines the integrated gasification combined cycle facility no longer meets the requirements of paragraphs (e)(i) and (ii) of this section, the department shall revoke the certification. If the department determines the facility meets the requirements, it shall reissue the certification;

(iii)

Adopt rules and regulations as necessary to implement the provisions of this subsection and subsection (e) of this section including methods to verify the value of the exemption provided in this subsection is reflected in prices paid by qualifying integrated gasification combined cycle facilities;

(iv)

Review the exemption provided under subsection (e) of this section, analyze the costs and benefits to the state and report to the joint revenue and the joint minerals, business and economic development interim committees annually on or before September 1.

Section 2.

This act is effective July 1, 2007.

(END)

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HB0143