Nebraska proposal would set approval, safety, and tax rules for energy storage

Standalone energy storage resources would need board approval; owners of associated storage would have to notify the board before construction. Standalone storage is publicly or privately owned storage that is not associated with a renewable energy facility. Associated storage must meet the bill’s tests for connection, location, ownership, purpose, and combined capacity. Associated storage is treated as part of its renewable facility and exempt from specified approval rules while that facility complies with the bill. The exemption ends when the renewable facility is decommissioned. For associated storage built after its renewable facility, the owner must notify the board at least 30 days before construction starts. The board must acknowledge the filing within 10 days.

Energy storage owners would have to follow fire safety standards, keep an emergency plan onsite, and offer free yearly training to local first responders. The requirements apply to energy storage resources in Nebraska and their owners. The onsite plan requirement excludes storage installed in one-family or two-family homes. The plan must cover site hazards, emergency response, drills, communication, and safety for nearby people and the environment. Owners must give the plan to the local fire protection agency before the resource starts operating and offer training every year.

Owners of qualifying energy storage resources would pay an annual nameplate capacity tax, with tax revenue distributed to counties and community college areas. The tax covers commissioned energy storage resources in Nebraska. A resource is commissioned after at least 24 hours of commercial operation while connected and transmitting energy. The tax is $2,952 per megawatt of alternating-current nameplate capacity and does not apply to resources owned or operated by listed public power entities, municipalities, electric membership associations, or cooperatives, or to customer-generators. Owners could credit property taxes paid on the resource before 2027 against the tax, carrying unused credit forward. For taxes levied from 2027, 95% would go to counties and 5% to community college areas, divided by resource location and capacity. The act would become operative January 1, 2027, and the storage tax and stated revenue distribution apply from that date.