Pollution Control Exemptions for Pipelines
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1 Pollution Control Exemptions for Pipelines Greg Wood Ryan, LLC Atlanta, Georgia (919) Keith Fuqua Colonial Pipeline Company Alpharetta, Georgia (678)
2 . Map of Pipelines. We go everywhere 2
3 Why are we here? Pollution Control About 22 months ago Keith s company (Colonial Pipeline) started a project with Greg s company (Ryan) to take a look at existing assets to see what we had that may qualify for pollution control exemptions. What we found was our records were not kept in a manner conducive to identifying PC equipment and components to be certified. We are now focusing on a go forward process to routinely capture these exemptions. We are here to share a little about what we have learned so far. 3
4 Today s Questions What states do not offer pollution control exemptions at all? What states offer them but not to pipelines? Which states potentially do allow pipelines to claim pollution control exemptions and what are the steps for approval? 4
5 States that have no Pollution Control Exemptions Arkansas Arizona California Delaware Illinois Louisiana Missouri Mississippi Montana Nebraska Oklahoma Pennsylvania Rhode Island Utah So 14 of 50 or 28% of our states do not offer PC to anyone! 5
6 States with Pollution Control Exemptions But not for Pipelines Colorado Florida Hawaii Iowa Indiana Kansas Maryland New Mexico Nevada Ohio Oregon South Dakota Vermont Washington Wisconsin West Virginia Wyoming So 17 of 50 or 34% of our states do not offer PC to pipelines! 6
7 States with Pollution Control Exemptions for Pipelines Alaska Alabama Connecticut Georgia Idaho Kentucky Massachusetts Maine Michigan Minnesota New Hampshire New Jersey New York North Carolina North Dakota South Carolina Tennessee Texas Virginia So 19 of 50 or 38% of our states do offer PC to pipelines! 7
8 Our Approach Today Show you the law granting the exemption Describe the general language Talk about state DOR requirements Discuss state environmental requirements List local requirements Outline other rules or expectations 8
9 State Alabama Pollution Control Has Pollution Control Exemption Yes Authority: Alabama Code (20) Brief Description: Devices used primarily to control, reduce, or eliminate air or water pollution, including all of their identifiable components, are exempt from Property Tax. 9
10 Alabama Exemption Process Revenue: ADV-40 - Business Personal Property Return, Line 14 Environmental: Must File with Them for Certification Counties: List filed with local returns Other Comments: None 10
11 State Alaska Has Pollution Control Exemption Yes Authority: Alaska Statute (k) Brief Description: A municipality can exempt a PC facility for up to 5 years. To qualify, the facility must meet either EPA or ADOE requirements. 11
12 Alaska Exemption Process Revenue: Must file certification from environmental Environmental: Must File with Them for Certification Counties: Must approve all exemptions Other Comments: Exemptions generally last up to 5 years 12
13 State Connecticut Pollution Control Has Pollution Control Exemption Yes Authority: Connecticut Statute 12-81(51)a & (52)a Brief Description: Structures and equipment for the primary purpose of reducing or eliminating pollution certified by the EPA. 13
14 Connecticut Exemption Process Revenue: NA Pollution Control Environmental: Items not on pre-approved list must be approved by state EPA Counties: File CERT 117 for approved list items Other Comments: Counties administer these exemptions 14
15 State Georgia Has Pollution Control Exemption Yes Authority: GA Code Ann (a)(11) Brief Description: Air or Water pollution devices certified by the Dept. of Natural Resources are exempt from property taxes. 15
16 Georgia Exemption Process Revenue: Form ST-M8 (certificate of approval) Environmental: Must issue Form ST-M8 Counties: NA Other Comments: State applies the exemption 16
17 Exemptions State Idaho for Pipelines Has Pollution Control Exemption Yes Authority: Idaho Code P Brief Description: The value of the items used exclusively for PC against the total value of a facility creates a partial exempt percentage to be applied to the property. 17
18 Idaho Exemption Process Revenue: Must include approved PCED Environmental: Declaration Must File Pollution Control Equipment Counties: NA Other Comments: None 18
19 Exemptions State Kentucky for Pipelines Has Pollution Control Exemption Yes Authority: KY Rev. Stat. Ann (8) Brief Description: Tangible personal property certified as a pollution control facility is only subject to state tax rate and exempt locally. 19
20 Kentucky Exemption Process Revenue: Must file Form 51A216 Environmental: handled by revenue Counties: same form as state Other Comments: none 20
21 State Maine Has Pollution Control Exemption Yes Authority: Me. Revised Stat. Ann (1)(N) & 656(1)(E) Brief Description: An exemption on real & personal property applies to water pollution control facilities and air pollution control facilities. 21
22 Maine Exemption Process Revenue: Must file copy with return Environmental: Must File Application for Tax Exemption Counties: Must file copy with returns Other Comments: Must publish notice in newspaper first. 22
23 State Massachusetts Has Pollution Control Exemption Yes Authority: Mass. Gen. L. Chapter 59-5(Forty-Fourth) Brief Description: All real or personal property that operates to eliminate industrial waste or air pollution. 23
24 Massachusetts Exemption Process Revenue: Must file approved copy with return Environmental: Counties: BWP AQ TAX (MA Department of Environmental Protection) N/A Other Comments: Allow at least 90 days for approval 24
25 State Michigan Pollution Control Has Pollution Control Exemption Yes Authority: Mich. Comp. Laws Ann (1), (1), and 211.9(1) Brief Description: Qualified air pollution control and water pollution control facilities are exempt. 25
26 Michigan Exemption Process Revenue: Form 3828 for air pollution controls Form 891 for water pollution controls Environmental: Reviews & Approves Applications Counties: Receives copies of applications during process Other Comments: Applications file in triplicate by June 15 th each year 26
27 State Minnesota Pollution Control Has Pollution Control Exemption Yes Authority: Minn. Stat , Subd. 10& Subd. 62 and 471A.05 Property Brief Description: Personal Property used primarily for the abatement and control of air, water or land pollution is exempt to the extent so used. 27
28 Minnesota Exemption Process Revenue: PT 63 - Pollution Control Exemption Application PT 64 - Annual Statement of Exemption Environmental: Revenue manages the approval process Counties: N/A Other Comments: None 28
29 State New Hampshire Has Pollution Control Exemption Yes Authority: N.H. Rev. Stat. Ann.- 72:12-a Brief Description: Commission certifies percentage of installation exempt to local taxing body, applies to all water and air pollution control. 29
30 New Hampshire Exemption Process Revenue: File approved application with return Environmental: File for Exemption via website Counties: File approved applications with returns Other Comments: Approval takes 6-12 months 30
31 State New Jersey Pollution Control Has Pollution Control Exemption Yes Authority: NJ Rev. Statutes 54: Brief Description: Devices used primarily to control the atmosphere or water that is certified by the Commissioner of Health is exempt. 31
32 New Jersey Exemption Process Revenue: N/A Environmental: Must File Claim for Tax Exemption of Air Pollution Abatement Facility Counties: File approved Exemption with Counties Other Comments: None 32
33 State New York Has Pollution Control Exemption Yes Authority: NY Real Prop. Law 477-a(7) and 477(7). Brief Description: Pollution control facilities certified by the Commissioner of Environmental Conservation are exempt. 33
34 New York Exemption Process Revenue: Must file certification from environmental Environmental: Must File with Them for Certification Cities: File approved Certifications Other Comments: Not Certain how NY will treat a pipeline 34
35 State North Carolina Pollution Control Has Pollution Control Exemption Yes Authority: NC General Stat (a) Brief Description: Equipment used to reduce water or air pollution is exempt if certified by the Dept. of Environment & Natural Resources. 35
36 North Carolina Exemption Process Revenue: Must file AV-10 with return Environmental: Must File AV-10 Property Tax Exemption or Exclusion Counties: Must file AV-10 with return Other Comments: State and Counties may grant exemptions while applications are pending approval. 36
37 State North Dakota Pollution Control Has Pollution Control Exemption Yes Authority: N.D. Cent. Code (37(b) Brief Description: Exempts Abatement improvements. Applies to all air & water pollution control. 37
38 North Dakota Exemption Process Revenue: not applicable Environmental: not applicable Cities/Counties: Must approve all exemptions Other Comments: Exemptions are handled at local level 38
39 State South Carolina Has Pollution Control Exemption Yes Authority: SC Code Ann (A)(B) Brief Description: Facilities or Equipment used for pollution control required by the state or federal government used in business is exempt. 39
40 South Carolina Exemption Process Revenue: PT-300 Schedule X - SC Dept. of Revenue Environmental: Managed by Revenue Counties: N/A Other Comments: Equipment must be required by state or federal Environmental Protection Agency 40
41 State Tennessee Has Pollution Control Exemption Yes Authority: TN Code Ann (b)(1) Brief Description: Pollution control facilities are taxed at salvage value. They must be certified in whole or in part by Dept. of Environment. 41
42 Tennessee Exemption Process Revenue: Must file certification from environmental Environmental: Must File with Them for Certification Counties: Must file certification from environmental Other Comments: Davidson, Hamilton, Knox, Shelby counties all have additional requirements. 42
43 State Texas Has Pollution Control Exemption Yes Authority: TX tax Code Ann Brief Description: Real or personal property used to control pollution can be wholly or partially exempt as approved by the TCEQ. 43
44 Texas Exemption Process Revenue: N/A Environmental: Must apply to TCEQ for approval/certification Counties: Must file with counties Other Comments: Some counties require annual filing 44
45 State Virginia Pollution Control Has Pollution Control Exemption Yes Authority: VA Code Ann (A) Brief Description: Certified pollution control equipment used to abate or prevent air or water pollution can be fully or partially exempted by any locality. 45
46 Virginia Exemption Process Revenue: Must file certification from environmental Environmental: Must submit letter of application Counties: local returns also require certification Other Comments: none 46
47 FOOD FOR THOUGHT!!!!! Even though these states allow for pollution control exemptions there is always a question of what qualifies either in whole or in part. I would suggest working with a service provider that specializes in PC work is the best way to maximize your benefit and help navigate your way through the approval process. Remember that a long lead time is needed in most cases so start the process before construction begins. 47
48 Questions and Group Discussion 48
49 . Now we can move on to our next pipeline!!! 49
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