Opinion ID: 2346458
Heading Depth: 2
Heading Rank: 3

Heading: Whether the DLN System Qualifies as a Facility

Text: [¶ 11] Section 656(1)(E)(2) exempts air pollution control facilities from property taxation. [1] The Town first argues that the Board committed legal error when it concluded that the DLN System qualifies as a facility because the system is merely a collection of parts in the combustion turbines. Facility is statutorily defined as any appliance, equipment, machinery, installation or structures installed, acquired or placed in operation primarily for the purpose of reducing, controlling, eliminating or disposing of industrial air pollutants. 36 M.R.S.A. § 656(1)(E)(2)(a). We have construed the term facility to include parts of a larger system of components. In International Paper Co. v. Board of Environmental Protection, we found that the parts comprising the low NOx burners constitute only a small part of the fuel delivery system ... comprising the power boilers; nevertheless, we held that the burners qualified as a facility for tax exemption purposes. 1999 ME 135, ¶¶ 32-33, 737 A.2d at 1054-55. [¶ 12] Similar to its conclusion regarding the low NOx burner parts in International Paper, the Board in the present case found that the DLN System was comprised of parts which change the fuel and air input mechanism in [Androscoggin Energy's] turbines in a manner that provides flame temperature consistency at levels which reduce NOx creation. The Board's conclusion that the DLN System is a facility is consistent with the statutory definition and our application of that definition in International Paper. Accordingly, the Board did not commit legal error when it concluded that the DLN System qualifies as a facility potentially exempt from property taxation.