United States Environmental Protection Agency vvEPA State Incentives for Achieving Clean and Renewable Energy Development on Contaminated Lands South Dakota The development of clean and renewable energy on formerly used land offers many economic and environmental benefits. Combining clean and renewable energy and contaminated land cleanup incentives can allow investors and communities to create economically viable clean and renewable energy redevelopment projects. This document provides information about incentives in your state that can be leveraged for clean and renewable energy and development of contaminated land. Incentives for Clean and Renewable Energy Tax Incentives (abatements, deductions, credits, etc.) Renewable Energy Systems Exemption http://puc.sd.gov/energyefficiency/default.aspx Provides local property tax exemption for renewable energy systems on residential and commercial property. Exemption applies to 50% of the installed cost of the commercial system and cannot be transferred when property is sold. Exemption may be claimed for three years after installation. Small Power Production Facilities Business Tax Refund Program www.state.sd.us/drr2/businesstax/bustax.htm Provides a tax refund or credit from South Dakota Contractors' Excise Taxes to power production facilities, including wind power facilities, producing 10 MW or less of electricity. The refund is allowed for the contractors' excise taxes paid on new construction or expansion construction of a commercial power production facility. Large Wind Farms www.state.sd.us/drr2/businesstax/bustax.htm Provides a reduction in the South Dakota Contractors' Excise Tax from 2% to 1 %to certain power production facilities, including wind power facilities producing greater than 10 MW of electricity. The owner will be permitted to pay the tax in four equal payments with each payment due no later than December 31 of the year after the tax return is filed. New and Expanded Business and Power Generation Facilities Business Tax Refund Program www.state.sd.us/drr2/businesstax/bustax.htm Provides a refund or credit of South Dakota Contractors' Excise Taxes and South Dakota State Sales and Use Taxes paid on the construction project to new and expanded businesses and/or power generation facilities, except for retail, lodging, health care, or facilities exempt from property tax. Refund amounts are set up on a stair-step scale providing for various percentages of refund based on the costs of the project. Quick Facts Public Benefit Fund (PBF) Renewable Portfolio Objective 10% by 2015 (voluntary) Net Metering Interconnection Standards Yes D No 0 Yes 0 No D YesD No0 YesD No0 Electric Power Industry Generation by Primary Energy Source (EIA, 2006) Petroleum-Fired 0.1% Nuclear Natural Gas-Fired 3.7% Hydroelectric 47.6% Coal-Fired 46.5% Other Renewables 2.1% Points of Contact All South Dakota Energy Incentives and Programs Department of Revenue and Regulation www.state.sd.us/drr2/revenue.html Alison.Jares@state.sd.us, (605) 773-3311 Information current as of November 2008; please refer to www.dsireusa.org and the state Web sites provided, or contact the points of contact identified above for more up to date information. South Dakota Incentives for Clean and Renewable Energy - Page ' ------- \ ~ Incentives for Development of Contaminated Land Technical Assistance and Other Incentives Abandoned Tank Removal Program www.state.sd.us/denr/DES/Ground/TankYank/TankRemovalProcess.htm Authorizes the state's Department of Environment and Natural Resources (DENR) to remove tanks that qualify and the Petroleum Release Compensation Fund to pay for the removal and any necessary environmental cleanup. Provides technical support to property owners for removal of an abandoned tank. Written requests are accepted through the Web site listed. Site Specific Assessments www.state.sd.us/denr/DES/Ground/Brownfields/Targeted_Brownfields_ Assessment.htm Provides brownfields assessment funds to be used by the DENR to conduct site characterization and assessment activities on eligible properties. Property owners may submit applications for consideration. Limitations on Liability www.state.sd.us/denr/DES/Ground/Brownfields/ BROWNFIELDSREVITALIZATION.pdf Provides lenders with some liability protections on a case-by-case basis with approval from South Dakota program officers. Offers Covenants Not to Sue to property owners once cleanup actions are completed as requested. Quick Facts Limitations on Liability Yes 0 No D Number of State-Tracked Contaminated Properties: 598 Includes specific reported spills or incidents at tracked sites within the following programs: Ground Water Quality Program, LUST Trust, Brownfields, and Superfund Number of EPA CERCLIS Sites: 38 Sites identified for potential investigation under the federal Superfund Program Number of EPA Brownfields Properties: 9 Properties being funded or addressed under the EPA Brownfields Program There may be some overlap among the categories listed and sites listed may not represent all potentially contaminated sites in South Dakota. Points of Contact All South Dakota Cleanup Incentives and Programs South Dakota Department of Environment and Natural Resources Brownfields Program www.state.sd.us/denr/DES/Ground/Brownfields/Brownfields.htm Kim Mclntosh, Kim.Mcintosh@state.sd.us, (605) 773-3296 Information current as of November 2008; please refer to www.epa.gov/brownfields/pubs/st_res_prog_report.htm and the state Web sites provided, or contact the points of contact identified above for more up to date information. South Dakota Incentives for Development of Contaminated Land - Page 2 ------- |