SB 556

This bill provides utility aid payments to counties and municipalities where energy storage facilities are located. Under the bill, the Department of Administration distributes to each city and village in which an energy storage facility is located two-thirds of the amount calculated by multiplying the facility’s megawatt capacity by $2,000, and DOA distributes to the county in which such a facility is located one-third of the amount calculated by multiplying the facility’s megawatt capacity by $2,000. DOA distributes to each town in which an energy storage facility is located one-third of the amount calculated by multiplying the facility’s megawatt capacity by $2,000, and DOA distributes to the county in which such a facility is located two-thirds of the amount calculated by multiplying the facility’s megawatt capacity by $2,000.

The bill defines an “energy storage facility” as property owned by a light, heat, and power company, electric cooperative, or municipal electric company that receives electrical energy, stores the energy in a different form, and converts that other form of energy back to electrical energy for sale or to use to provide reliability or economic benefits to the electric grid. Under the bill, “energy storage facility” includes hydroelectric pumped storage, compressed air energy storage, regenerative fuel cells, batteries, and similar technologies.

The bill also provides utility aid payments to counties and municipalities where liquefied natural gas storage facilities (LNG storage facilities) are located. The payment received by a city or village where an LNG storage facility is located is determined by multiplying the net book value of the LNG storage facility by six mills and by three mills in the case of a town. The payment received by a county where an LNG storage facility is located is determined by multiplying the net book value of the LNG storage facility by three mills if the facility is located in a city or village and by six mills if the facility is located in a town.