It is enacted by the General Assembly as follows:

SECTION 1. The town of Tiverton and Tiverton Power Associates, L.L.C. are hereby authorized to enter into and execute a tax treaty agreement with respect to all real and personal property taxes or payments in lieu of such taxes which relate to the construction of a two hundred fifty (250) megawatt power plant. The tax treaty agreement shall provide for the payment from Tiverton Power Associates, L.L.C. to the town of Tiverton the sum of five hundred thousand dollars ($500,000) per year for twenty (20) years and shall require that beginni ng in 1997, said annual payments shall be adjusted each year in accordance with the consumer price index of the United States Department of Commerce.

The tax treaty agreement described herein is subject to approval of the town council of the town of Tiverton.

SECTION 2. This act shall take effect upon passage.