LRB-1621/P1
JK:amn
2023 - 2024 LEGISLATURE
DOA:......Martin, BB0429 - Utility aid for battery storage facilities
For 2023-2025 Budget -- Not Ready For Introduction
An Act ...; relating to: the budget.
Analysis by the Legislative Reference Bureau
Shared revenue
Energy storage facility
Under current law, counties and municipalities where power production plants are located receive public utility aid payments on the basis of the value or megawatt capacity of the plant. Generally, the amount of the payment to a county or municipality is determined by applying a mill rate to a specified amount of the license fees paid by the power production plant located in the county and municipality.
This bill provides utility aid payments to counties and municipalities where energy storage facilities are located. The bill defines an “energy storage facility” as property 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 electrical grid. The bill also defines an “energy storage facility” as property that is owned by a light, heat, and power company, electric cooperative, or municipal electric company and includes hydroelectric pumped storage, compressed air energy storage, regenerative fuel cells, batteries, and similar technologies.
Under the bill, DOA annually distributes to each county and municipality in which an energy storage facility is located an amount calculated by multiplying the facility's megawatt capacity by $2,000 and then multiplying the product of that calculation by three mills for a county and by six mills for a municipality. However, if the energy storage facility is located in a town, the town receives a payment equal to multiplying the product of that calculation by three mills and the county where the town is located receives a payment equal to multiplying the product of that calculation by six mills.
For further information see the state and local fiscal estimate, which will be printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:
Section
1. 79.005 (1j) of the statutes is created to read:
79.005 (1j) (a) “Energy storage facility” means property to which all of the following applies:
1. The property is interconnected to the electrical grid.
2. The property is designed to receive electrical energy, to store the electrical energy as another form of energy, and to convert that other form back into electrical energy.
3. The property delivers the electrical energy converted from some other form, as described in subd. 2., for sale or to use for providing reliability or economic benefits to the electrical grid.
****Note: You may want to elaborate on what it means to provide reliability or economic benefits to the grid.
4. The property is owned by a light, heat, and power company assessed under s. 76.28 (2) or 76.29 (2), not including property described in s. 66.0813 unless the property is owned or operated by a local governmental unit located outside of the municipality, or by an electric cooperative assessed under ss. 76.07 and 76.48, respectively, or by a municipal electric company under s. 66.0825.
(b) “Energy storage facility” includes hydroelectric pumped storage, compressed air energy storage, regenerative fuel cells, batteries, superconducting magnetic energy storage, flywheels, thermal energy storage systems, and hydrogen storage, or combination thereof, or any other similar technologies as determined by the federal energy regulatory commission.
Section 2
. 79.04 (8) of the statutes is created to read:
79.04 (8) Annually, the department of administration, upon certification by the department of revenue, shall distribute a payment from the public utility account to each municipality and county in which an energy storage facility with a name-plate capacity of at least one megawatt is located. If the energy storage facility is located in a city or village, the city or village receives a payment equal to 6 mills multiplied by the product of the facility's name-plate capacity multiplied by $2,000 and the county in which the energy storage facility is located receives a payment equal to 3 mills multiplied by the product of the facility's name-plate capacity multiplied by $2,000. If the energy storage facility is located in a town, the town receives a payment equal to 3 mills multiplied by the product of the facility's name-plate capacity multiplied by $2,000 and the county in which the energy storage facility is located receives a payment equal to 6 mills multiplied by the product of the facility's name-plate capacity multiplied by $2,000.
Section 9337.
Initial applicability; Revenue.
(1) Energy storage facility. The treatment of ss. 79.005 (1j) and 79.04 (8) first applies to distributions made after January 1, 2025.
(End)
