Wind turbines-royalty fee.

WORKING DRAFT
2009
STATE OF
WYOMING
09LSO-0284

HOUSE BILL
NO.
HB0275

Wind turbines-r
oyalty
fee.

Sponsored by:
Representative(s) Miller, Byrd, Cohee, Davison, Harshman and Jaggi

A BILL

for

AN ACT relating to
public utilities;
imposing a royalty upon the production of electricity as specified; providing a rate; providing rulemaking authority; providing a penalty;
providing for applicability of the act;
and providing for an effective date.

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

Section 1.
W.S.
37
‑
16
‑
3
01 through 3
7
‑
16
‑
3
03
are created to read:

ARTICLE 3
ROYALTY

ON
PRODUCTION OF ELECTRICITY

37
‑
16
‑
3
01.

Imposition; administration.

(a)

There is
imposed in this state a royalty fee on each kilowatt hour produced from any wind turbine. The royalty fee shall be equal to three
per
cent (3
%
)
of the sales price received by the producer
per kilowatt hour, or portion thereof, produced in this state.
The
royalty
shall be imposed upon the production of any electricity generated for sale or trade.

(b)

The
public service commission
shall enforce the provisions of this
article
. The
commission
shall promulgate rules and regulations necessary for the implementation and enforcement of this
article
.

(c)

No
royalty
shall be imposed upon electricity which is produced for the personal consumption of the producer.

37
‑
16
‑
3
02.

Compliance; collection procedures.

(a)

Returns and reports. Any person producing electricity in this state shall report the amount of kilowatt hours produced
and sold and the sales price received therefore
on or before February 1 of the year immediately following the year in which the electricity was produced.

(b)

Payment. Any person owing a
royalty
under this article shall pay the
royalty
once each year on or before February 1 of the year immediately following the year in which the electricity was produced. The
royalty
shall be collected by the
public service commission
.

(
c
)

Interest. Interest at an annual rate equal to the average prime interest rate as determined by the state treasurer during the preceding fiscal year plus four percent (4%) shall be added to all delinquent
royalties
under this article. To determine the average prime interest rate, the state treasurer shall average the prime interest rate for at least seventy-five percent (75%) of the thirty (30) largest banks in the
United States
. The interest rate on delinquent
royalties
shall be adjusted on January 1 of each year following the year in which
the royalties
first became delinquent. In no instance shall the delinquent
royalty
rate be less than twelve percent (12%) nor greater than eighteen percent (18%).

(
d
)

Penalties. The following shall apply:

(i)

If any person fails to make or file a return and remit the
royalty
as required by
this section
the
commission
shall impose a penalty of five percent (5%) of the
royalties
due for each thirty (30) day period, or fraction thereof, elapsing between the due date of the return and the date filed, unless the person for good cause obtains from the
commission
an extension of time for filing prior to the due date for filing. In no event shall the total penalty imposed by this subsection exceed twenty-five percent (25%) of the
royalty
due. The
commission
, for good cause, may waive a penalty imposed for failure to file a return for any one (1) calendar year, provided that:

(A)

The return was filed within five (5) business days following the due date, including an approved extension period; and

(B)

The
person owing the royalty
requests the waiver in writing within fifteen (15) days after the return was filed, setting forth the reasons for the late filing.

(ii)

If any part of a
royalty
deficiency is due to negligence or intentional disregard of rules and regulations there shall be added a penalty of five percent (5%) of the amount of the deficiency plus interest as provided by subsection (
c
) of this section. The
royalties
, penalty and interest shall be paid within ten (10) days after receipt of notice and demand by the
commission
;

(iii)

Royalties
due together with interest, penalties and costs shall be collectible by the
commission
by appropriate judicial proceedings;

(iv)

The
commission
may credit or waive penalties imposed by this section as part of a settlement or for any other good cause.

(
e
)

Liens. Any delinquent
royalty
is a lien upon the property of any owner from and after the time the
royalty
is due until the
royalty
is paid. The lien shall have preference over all liens except any valid mortgage or other liens of record filed or recorded prior to the date the
royalty
became due.

3
7
‑
16
‑
3
03
.

Distribution.

The proceeds from the
royalty
imposed by this article shall be deposited in the general fund.

Section 2.
The royalty imposed by this act shall not be effective unless and until the federal Bureau of Land Management imposes a
user fee
on the placement of any wind turbine on federal land
and the user f
ee is greater than five hundred dollars
($500.00) per wind turbine
. If the federal government imposes a
user fee as provided by this section
and the governor certifies that fact to the department of revenue, then January 1 of the year immediately following such imposition and notification, the royalty imposed by this act shall become effective.

Section
3
.
This act is effective January 1, 20
10
.

(END)

1
HB0275