The Wisconsin Counties Utility Tax Association (WCUTA) today applauded Governor Evers for signing Senate Bill 556 into law as Act 163, establishing utility aid payments for certain energy storage facilities, and reinforcing financial stability for local governments across Wisconsin.
Authored by Senator Jesse James (R-Thorp) and Representative Jessie Rodriguez (R-Oak Creek), the bipartisan legislation ensures that counties and municipalities are reimbursed through the state’s long standing utility aid formula. This approach recognizes the evolving nature of energy infrastructure while maintaining predictable revenue streams for local communities.
“As Wisconsin’s energy landscape continues to evolve, it is critical that our local governments are not left behind,” said William Goehring, President of WCUTA and a member of the Sheboygan County Board. “Act 163 provides fairness and certainty by ensuring that energy storage facilities contribute to the communities in which they operate, just like traditional utility infrastructure.”
The legislation defines “energy storage facility” as property owned by a light, heat or power company, electric cooperative, or municipal electric company, storing electrical energy in another form (battery, pumped hydro, etc.) and capable of converting back to electricity. Battery storage will be calculated through a calculation of the megawatt capacity of the storage facility while LNG is calculated as netbook value of the facility.
WCUTA emphasized that the measure reflects a thoughtful balance between encouraging innovation in energy development and preserving the fiscal health of local governments that rely on utility aid payments to fund essential services such as public safety, transportation, and infrastructure.
“This important legislation demonstrates that bipartisan collaboration can deliver meaningful results,” Goehring added. “By modernizing the utility aid framework, Wisconsin is better positioned to meet growing energy demands while supporting the counties and municipalities that make these projects possible.”
WCUTA also extended its gratitude to the many organizations, local officials, and industry stakeholders who supported the proposal throughout the legislative process. Their collective efforts helped ensure the bill’s passage and ultimate enactment into law.
The association looks forward to continued collaboration with state leaders and stakeholders to address emerging energy issues and maintain a strong partnership between utility providers and local communities.
WCUTA is a 29-member organization of counties interested in issues surrounding Wisconsin’s utility tax and how the state calculates and distributes utility aid payments. WCUTA advocates for protecting and enhancing the portion of shared revenue that is utility aid. The association works to preserve the system in which the state collects taxes from utilities and returns a portion to counties to help offset the costs of providing services to these tax-exempt properties.
