The Wiscasset Selectboard encourages residents to contact their local legislators to express support for LD 2027, "An Act to Clarify the Property Tax Exemption for Air Pollution Control Facilities." The Maine State Legislature's Joint Committee on Taxation will hold a Public Hearing on Tuesday, Feb. 6 at 1 p.m. at the State House in Room 127. Town Manager Dennis Simmons prepared some written background information, see below, on this legislation for you to review.  If you have any questions, please don’t hesitate to contact him at (207) 882-8200 Ext. 6 or manager@wiscasset.org

Since the decommissioning and dismantlement of the Maine Yankee Nuclear Generating Facility in 1997, the plant’s owner, Maine Yankee Atomic Power Company, has stored its “spent nuclear fuel and greater than class C nuclear waste” in a specially constructed “Independent Spent Fuel Storage Facility” at the former plant site in Wiscasset until the federal government is ready to move this fuel into final storage. This ISFSI consists of 64 massive stainless steel transport canisters that contain the nuclear waste. These are encased in a like number of 17’ high concrete casks, all standing in rows on earthquake-proof concrete pads. The ISFSI is surrounded by a fenced protection zone of more than 100 acres and is guarded around the clock by armed security guards.

The purpose of this facility is the secure storage of this highly dangerous material in a ready-to-transport state pending ultimate removal by the U.S. government, whenever that may take place. During this period of “temporary” storage the U.S. Department of Energy is legally required to reimburse Maine Yankee for all reasonable costs incurred including real estate taxes.

There is no industrial process going on at the ISFSI. The facility is pure storage.

The current cost to build this facility is almost $100 million. The components in question have recently been appraised at a value of $93,820,000 for real estate tax purposes.

Last year Maine Yankee applied to Maine Department of Environmental Protection for a certification that the main components of the ISFSI, the 64 stainless steel canisters, the 64 concrete casks, and the concrete pads be exempted from local real estate taxation as a “pollution control facility.” Maine Yankee’s argument was that the storage canisters also prevented any escape of “radionuclide” particles, and hence should be considered “primarily for air pollution control.” Somewhat remarkably the DEP accepted Maine Yankee’s argument and classified the canisters, casks, and pads as an “air pollution control facility” exempt from real estate taxation, thus removing value of some $93 million from the tax rolls of Wiscasset.

It seems clear that the air pollution control equipment exemption, that was designed to encourage installation of pollution control equipment in paper mills and similar emitters of pollutants was never intended to cover a facility such as the Maine Yankee ISFSI. The language of the current statute was enacted in 1971, shortly after enactment of the Clean Air Act. It was never intended to include nuclear safety issues. We ask for the clarification that this tax exemption not be stretched to include facilities that store high level nuclear waste.

Here are some points to consider:

1) Maine Yankee’s installation is a serious burden on the Town – it requires continuous fire and police protection as well as road plowing and maintenance. Its presence blights the development of surrounding lands – who wants to be near a nuclear waste storage site? Why should Maine Yankee get a free ride at the expense of the other taxpayers in the town?

2) Maine Yankee gets reimbursed by the federal government for the reasonable costs of owning and operating the ISFSI including real estate taxes.

3) The ISFSIs being maintained by other Yankees in Massachusetts and Connecticut are being taxed at full assessable value and these taxes are being reimbursed by the Federal Government.

4) No other state exempts ISFSI facilities from real estate taxation as pollution control facilities. When Connecticut Yankee sought such an exemption for its ISFSI at Haddam, the exemption was summarily denied.

5) The pollution control exemption was intended to encourage industrial companies to install pollution control equipment to minimize pollution from their industrial processes. There is no industrial process going on at the ISFSI. The ISFSI was not constructed to minimize air pollution, but to store dangerous nuclear fuel pending transport.

6) To allow Maine Yankee to enjoy the pollution control exemption is to give a gift to the federal government at the expense of the Wiscasset taxpayers, who have to live with this highly unwelcome facility.

7) Clarifying that Maine Yankee is not entitled to this tax exemption will not have any adverse impact on air quality nor cause any increase in air pollution.

Wiscasset's local legislators are:

Sen. Cameron Reny

cameron.reny@legislature.maine.gov

Rep. Ed Polewarczyk

Edward.Polewarczyk@legislature.maine.gov