To meet a developer's request for speed, the Jefferson County Industrial Development Agency will begin laying out a property tax relief program for the proposed Galloo Island Wind Farm. While the payment-in-lieu-of-taxes agreement will follow the formula developed for a uniform tax-exempt policy, JCIDA will not seek approval of the uniform policy now. That would require all affected taxing jurisdictions from the four proposed wind projects to sign on, which officials believe would take too long.

While hopeful that the Maple Ridge Wind Farm will retain Empire Zone benefits, local leaders are preparing for the worst-case scenario: a $6.3 million drop in combined wind-farm revenue for area governments. While Lewis County projected $2.16 million from the wind farm in this year's budget, the proposed 2010 budget likely will include only about $600,000, the amount the county would receive if Empire Zone benefits are revoked, County Manager David H. Pendergast said. That's nearly a $1.6 million reduction.

Representatives of town governments want more of the financial pie from new industrial wind power developments, but many Cattaraugus County residents say they are financed by federal debt and long-range costs to the community will outweigh benefits. These sentiments dominated three public hearings on a tax-incentive proposal for wind developers by the Cattaraugus County Industrial Development Agency.

The Cattaraugus County Industrial Development Agency will seek public comments at 6:30 p. m. tonight, Wednesday and Thursday in hearings on proposed revisions to the agency's uniform tax exemption policy to accommodate wind farm developments. The revisions, if adopted, will set a schedule for payments-in-lieu-of-taxes.

Not only is Lewis County dealing with a decrease in sales tax revenue and a lack of information about how much state aid it will receive, it's also dealing with the loss of a major money maker. The Maple Ridge Wind Farm ...recently lost its certification as part of the state's Empire Development Zone, which means it lost critical tax breaks and other business incentives.

State utility regulators today authorized an auction to distribute $95 million to new power plants fueled by the wind, the sun, biomass or other renewable sources. The auction will be the fourth conducted under a standing state mandate to derive 25 percent of New York's electricity from renewable energy sources by 2013. Members of the state Public Service Commission ...noted that the time is right for new renewable energy projects.

Low electrical transmission capacity is not only making it difficult for wind power developers to figure out how to connect to the grid; it's created another hurdle for development of a uniform tax-exempt policy. The Jefferson County Industrial Development Agency was charged with creating the policy to guide all payment-in-lieu-of-taxes agreements for wind farms by the county Board of Legislators last year.

The board of directors of the Cattaraugus County Industrial Development Agency is expected to review a proposed agency policy Tuesday that will establish how much industrial-scale wind farms must pay to local taxing authorities during their incentive periods. The IDA provides tax exemptions for 10 to 15 years, along with other incentives, to developers seeking assistance and conduit loans.

A Friday ruling by the State Supreme Court Appellate Division, Fourth Judicial Department, invalidated the 12-year payment-in-lieu-of-taxes deal given to the power generator by the Niagara County Industrial Development Agency in October 2006. ...The IDA had granted the power company a 12-year, $192 million PILOT in exchange for the company's promise to pursue a shot at building a state-subsidized clean coal plant under former Gov. George Pataki's Advanced Clean Coal Initiative.

Many of the north country's 165 businesses that receive Empire Zone tax breaks could lose the benefit under the state's new budget agreement. State officials say the Empire Zone program is being abused by companies that are getting tax breaks without generating new jobs. ...In the new regulations, a measure is included to kick out businesses that have not matched dollar-for-dollar wages and capital investments with the tax breaks they received.

The Cattaraugus County Legislature will be represented on a panel that will work with town and school delegates to set up a tax-exemption policy for the Cattaraugus County Industrial Development Agency’s wind farm projects. A blanket state tax exemption for wind farms and other alternative energy systems was lifted in the county by the Legislature in 2008 following a lengthy debate.

The Naples School Board voted last week to accept an agreement with First Wind that would give the district higher payments on any windmills the company may build within the district boundaries. ...At this point, Macaluso said First Wind has put the project on hold because of finance troubles.

Taxing jurisdictions benefiting from the Maple Ridge Wind Farm have retained an Albany firm to lobby against proposed Empire Zone program changes that could impact future revenues. "We've got a lot of money at stake," Lewis County Attorney Richard J. Graham said at Tuesday evening's legislators meeting. County legislators approved an agreement with Capitol Public Strategies to provide consulting services for up to $7,500 per month for the next four months.

A new tax incentive is in place for the stalled First Wind wind farm project in Prattsburgh, pending what officials hope is the final approval by the Naples Central School District next week. The Steuben County Industrial Development Agency signed on to a new payment-inlieu of-taxes (PILOT) agreement that will provide more money to the Prattsburgh and Naples school districts while also increasing the town of Prattsburgh's share.

The passage of a resolution by the Legislature last Wednesday established Herkimer County's negotiating position regarding payment in lieu of taxes agreements for wind projects: Closing an interconnected effort amongst affected municipalities and school districts over four years in the making. Ongoing proposals by Iberdrola Renewable Energies to build wind turbines include: The Hardscrabble Project in the towns of Norway and Fairfield, with Owen D. Young Central School District; and the Jordanville Project in the towns of Stark and Warren, with West Canada Valley Central School District. The resolution sets a PILOT payment of $8,000 per megawatt.

Cattaraugus County has retained its ability to tax alternative energy systems - including wind farms, solar energy systems and on-farm methane digesters - with a 16-2 vote for passage of a local law Tuesday. The law applies to facilities within the county, including as many as four potential wind farm projects under consideration, and effectively disarms a state tax code provision exempting these energy sources from taxes. ...The vote came after residents and elected officials from the towns of Freedom, Machias and Farmersville stated their opposition in a 45-minute public hearing. Most said they were told the IDA's payment-in-lieu-of- taxes (PILOT) agreements will unfairly take a share of the wind farms' monetary payments.

Money doesn't grow on trees, but it may grow on windmills. The developers of the four proposed wind farms in Jefferson County could capitalize on tax breaks and incentives at the federal, state and local levels through their projects. Opponents say the subsidies take taxpayer money and give it to those who already are rich. "It's the taxpayers and electric customers that are taken to the cleaners," said Glenn R. Schleede, a widely known wind power opponent who has worked for electric utilities and the federal Office of Management and Budget.

At Tuesday's Board of Education meeting at Jefferson Middle School, school officials decided to opt out of Section 487 of the Real Property Tax Law after hearing from Bill Daly and Rich Dixon of the Chautauqua County Industrial Development Agency. The law makes the installation of energy improvement systems - solar power, windmills - exempt from taxes. By opting out, the district is placing the IDA in charge of negotiations regarding alternative energy should a company wants to develop wind energy in the county, Daly said. The IDA will be responsible for negotiating tax agreements for the county, city, towns and school districts.

For the first five years, starting with last year, the 195-turbine wind farm's payments are primarily based on the actual amount that would be paid in taxes on the 140 Phase I turbines. Since the assessed value of the turbines is essentially fixed, a drop in combined tax rates would ultimately result in a smaller payment. Assuming the other major wind farm beneficiaries - the county and towns of Martinsburg and Harrisburg - choose to keep their levies stable, as well, the payment amount will certainly decrease, Mr. McAuliffe said. However, the extent won't be known until county and town tax rates are set in late fall, he said.

The Westfield and Ripley school districts, as well as some municipalities such as the town of Portland, have chosen to opt out of the tax exempt status wind energy developers are eligible to receive. "Wind farms fall under some tax exemption which taxing jurisdictions can reject (opt out of)," Peter Gross of Babcock and Brown explained. "This requires that we get a PILOT (payment in lieu of taxes) agreement with the county, otherwise our assets would be assessed at their full value, resulting in a tax payment that would kill the project economics.