Cities and counties could form districts to fund street lights

Cities or counties may create a neighborhood district to pay for residential street lights. A city, town, village, or county may form the district under the bill. The district may pay to install, maintain, repair, or replace street lights, or cover their electric service. The lights must be approved pole-mounted lights for residential streets. They must use electricity or solar power and be LEDs or documented lower-power alternatives. A district may last up to 20 years and may be extended for up to 20 more years through a petition.

A district may ask electric suppliers to collect equal charges from customer accounts instead of special assessments. The request applies to each account receiving retail electric service within the district. The charges must cover the district's ongoing electric service costs for street lights. An investor-owned utility may bill the accounts without Public Service Commission approval.

The Department of Economic Development may provide matching grants to cities and counties. Grants would support cities and counties installing lights in districts formed under this section. Grant money may be distributed only after lawmakers appropriate money to the fund. The state would pay two-thirds of costs, up to $2,000 per installed light, and the city or county would pay one-third. The department may seek federal grants to add money for the state's share. The department would offer grants annually after money is appropriated, on a first-come, first-served basis.