MILD
SB 387
ALGAE AND GEOTHERMAL ENERGY EQUIPMENT VALUATION
- Legislative URL:
- SB 387 on nmlegis.gov
- Emergency Clause:
- No
- Germane:
- N/A
- Location:
- - OTHER -
- Action:
- [4] SCORC/SCONC/SFC-SCORC [34] DP/a-SCONC [32] DP/a-SFC [40] DNP-CS/DP [44] PASSED/S (36-0) [50] HTRC API.
- Issue(s):
- Energy
Related Legislators
- Bill Sponsor:
- Carroll Leavell
Related Documents
- Downloads:
-
Introduced
SCORC Committee Report
SCONC Committee Report
SFC Committee Report
SFC Committee Substitute
Final Senate Vote
Fiscal Impact Report
Summary
This measure creates a new section of law that sets forth the methodology for valuing property that is “algae or geothermal generation equipment used for generation, transmission or distribution of electric power or energy” and that is subject to valuation for property tax purposes. The bill also defines:
- “algae generation equipment” as “cultivation, harvesting and conversion equipment and systems and related equipment used to generate electricity out of algae biomass;” and,
- “geothermal generation equipment” as “heat exchangers, turbines and associated electrical generating equipment and related equipment used to generate electricity from geothermal energy, cooling towers, wells, pumps, gathering systems and related tangible and intangible drilling costs incurred to produce, distribute or use energy derived from a geothermal deposit.”
The bill may provide some clarity for taxpayers who use this type of equipment and may encourage involvement in this field. On the other hand, to the extent that using algae biomass to create fuel uses water resources, the bill might be of concern if this methodology is favorable for tax purposes and if it would thus encourage using algae biomass to an extent that is detrimental to the State’s water resources.
The SFC substitute adopted on March 10, 2013 switches removes “algae” and inserts “biomass” so that the bill now applies to biomass generation equipment as well as geothermal generating equipment.
Date of Summary: 2/4/2013, Updated 3/11/2013