Assessing The Potential For Renewable Energy On Public Lands

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Assessing the Potential for Renewable Energy on Public Lands from the standard electricity product. The law also extends the state's universal system benefits program funding through 2005. Net Metering Montana's net metering law, enacted July 1, 1999, allows net metering for customers with solar, wind, and hydropower systems of 50 kW or less that are intended primarily to offset part or all of the customer's requirements for electricity. All customer classes are eligible, and no limit on enrollment or statewide installed capacity is specified. Property Tax Exemption This statute exempts from property taxation the value added by a qualified renewable energy source. Qualified equipment includes active and passive solar, wind, hydropower, solid waste, and the decomposition of organic wastes. Such equipment is exempt from taxation for a period of 10 years following installation. The value-added exemption applies to systems with up to $20,000 in value in the case of a single-family residential dwelling and $100,000 in the case of a multifamily residential dwelling or a nonresidential structure. System Benefits Fund As part of its 1997 restructuring legislation, Montana established its Universal System Benefits Program (USBP). Beginning January 1, 1999, all electricity suppliers began contributing 2.4% of their 1995 revenues annually to the USBP. This is an amount equivalent to $14.9 million annually, collected at a rate of 1.1 mills/kWh. The funds support energy efficiency, renewable energy resources, low-income energy assistance, and renewable energy R&D. Montana’s USBP is effective until December 31, 2005. Nevada (Highly Favorable) Property Tax Exemptions This statute states that any value added by a qualified renewable energy source shall be subtracted from the assessed value of any residential, commercial, or industrial building for property tax purposes. Qualified equipment includes solar, wind, geothermal, solid waste converters, and hydropower systems. This exemption applies for all years following installation. Enacted in 1993, and most recently revised by S.B. 227 on June 1, 2001, this statute allows a property tax exemption for any business that (1) uses a process where at least 50% of the material or product is recycled, or (2) includes a facility for the generation of electricity from recycled material, whose primary purpose is the conservation of energy or the substitution of other sources of energy for fossil sources of energy. The exemption applies to 50% of the business property—personal and real—for up to 10 years. Property tax exemptions are managed by the Nevada Commission on Economic Development and include capital investment requirements and wage stipulations. Green Pricing In October 1997, Nevada Power Company applied to the Public Utilities Commission of Nevada for approval of its green pricing program. Today, Nevada Power Company, a subsidiary of Sierra Pacific Resources, and the Desert Research Institute’s Research Foundation, a fund-raising and public outreach arm of the Desert Research Institute, are partners in the GreenPower program. Soon, the GreenPower program will be transferred to the Desert Research Institute’s Research Foundation, enabling participants to take a tax F6

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