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SB 193

clarify the definition of backup electric generation.

2026 Regular Session Introduced by Casey Crabtree

SB 193 clarifies South Dakota's definition of backup electric generation to remove regulatory and tax code ambiguities for generators and power systems.

Commerce and Energy Do Pass , Passed, YEAS 5, NAYS 3
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Bill Summary · SB 193

Legislative bill overview

SB 193 clarifies the legal definition of what constitutes "backup electric generation" in South Dakota's energy code. The bill aims to eliminate ambiguity around which types of generators and power systems qualify as backup versus primary power sources, affecting how they are regulated and taxed.

Why is this important

Clear definitions directly impact how businesses, utilities, and homeowners are taxed on backup power systems and what regulatory requirements apply to them. Ambiguous definitions can lead to inconsistent enforcement, disputes with tax authorities, and uncertainty for those investing in backup power infrastructure like generators and battery systems.

Potential points of contention

  • Scope of "backup" classification – Disagreement over whether certain hybrid systems (like solar with battery backup) should count as backup or primary generation, affecting tax treatment and incentives
  • Commercial vs. residential standards – Different stakeholders may push for definitions that favor their sector, potentially creating unequal regulatory burdens
  • Interaction with renewable energy policy – Clarifying backup definitions could inadvertently affect existing solar/wind incentive programs or grid interconnection standards if not carefully coordinated

Compiled from official sources — confirm details with the bill’s official record.

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