Establishes programs for funding energy infrastructure projects.

SECOND REGULAR SESSION
HOUSE BILL NO. 2661
103RD GENERAL ASSEMBL Y
INTRODUCED BY REPRESENT A TIVE COSTLOW .
5548H.01I JOSEPH ENGLER, Chief Clerk
AN ACT
T o amend chapter 260, RSMo, by adding thereto fourteen new sections relating to ener gy
infrastructure projects.
Be it enacted by the General Assembly of the state of Missouri, as follows:
Section A. Chapter 260, RSMo, is amended by adding thereto fourteen new sections,
2 to be known as sections 260.130, 260.133, 260.136, 260.139, 260.142, 260.145, 260.148,
3 260.151, 260.154, 260.157, 260.160, 260.163, 260.166, and 260.169, to read as follows:
260.130. For the purposes of sections 260.130 to 260.169, the following terms
2 shall mean:
3 (1) "Authority", the envir onmental impro vement and energy res ources
4 authority (EIERA) cr eated under section 260.010;
5 (2) "Bonds", bonds, notes, or other evidence of indebtedness except as otherwise
6 pr ovided in sections 260.130 to 260.169;
7 (3) "Electric pr ovider", includes "electrical corporation" as defined in section
8 386.020, municipally owned utilities operating under chapter 91, and rural electric
9 cooperatives operating under chapter 394;
10 (4) "Eligible project", energy infrastructur e pr ojects that:
11 (a) Pr ovide or enhance infrastructur e necessary for development of a site
12 appr oved by the EIERA for grants under sections 260.130 to 260.169; or
13 (b) Support the construction, enhancement, expansion, or upgrade of energy
14 infrastructur e pro jects in ar eas wher e the energy infrastructur e is anticipated to
15 facilitate futur e economic development as determined by the authority , with an
16 emphasis on such development in rural areas.
EXPLANA TION — Matter enclosed in bold-faced brackets [thus] in the above bill is not enacted and is
intended to be omitted from the law . Matter in bold-face type in the above bill is proposed language.
17
18 "Eligible pr oject" shall not include funding for activities associated with the general
19 maintenance, repa ir , or upkeep of energy infrastructure ;
20 (5) "Energy bank", the Missouri energy infrastructur e bank creat ed under
21 section 260.133;
22 (6) "Energy fund", the Missouri energy infrastructur e fund creat ed under
23 section 260.133;
24 (7) "Energy infrastructur e pr ojects", generation infrastructur e, transmission
25 infrastructur e, and pr ojects addr essing long-lead items;
26 (8) "Financial assistance", includes, but is not limited to, contractual guarantees
27 supporting eligible pr ojects, cr edit enhancement, capital or debt r eserves for bonds or
28 debt instrument financing, intere st rate subsidies, provi sion of letters of cred it and
29 cr edit instruments, prov ision of bond or other debt financing instrument security ,
30 r eimbursable or other contractual arrangements, and other lawful forms of financing
31 and methods of leveraging funds that are appr oved by the authority and, in the case of
32 federal funds, as allowed by federal law;
33 (9) "Financing agr eement", any agr eement enter ed into between the authority
34 and an electric pr ovider pertaining to a loan or other financial assistance and other
35 pr ovisions as the authority may determine. The term includes a loan agr eement, trust
36 indentur e, security agreement, rei mbursement agr eements, guarantee agreement, bond
37 or note, ordinance or r esolution, or similar instrument;
38 (10) "Loan", an obligation subject to r epayment that is pro vided by the
39 authority to an electric pro vider for all or a part of the costs of an eligible pr oject. A
40 loan may be disbursed in anticipation of reim bursement for or dir ect payment of costs
41 of an eligible project or to ref inance temporary financing used to pay costs of an eligible
42 pr oject;
43 (1 1) "Loan obligation", a bond, note, or other evidence of an obligation issued by
44 an electric pr ovider;
45 (12) "Long-lead items", equipment, components, or materials necessary for
46 infrastructur e project s that requi re extended manufacturing, procu rem ent, or delivery
47 times of at least twenty-four months and with a total cost that exceeds two hundred fifty
48 thousand dollars, as may be appr oved by the authority;
49 (13) "Permitted investments", include any of the following:
50 (a) Certificates of deposit, savings accounts, deposit accounts, or money market
51 deposits that are any of the following:
52 a. Secur ed by an intere st in tangible pr operty;
53 b. Fully insured by the FDIC; and
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54 c. Made with a bank whose unsecur ed, long-term obligations are rated by at
55 least one nationally re cognized securities rating agency in one of the thr ee highest rating
56 categories assigned by that rating agency;
57 (b) Direct obligations of, or obligations the full and timely payment of which is
58 guaranteed by , the United States of America, including unit investment trusts and
59 mutual funds that invest solely in such obligations;
60 (c) Bonds, debentur es, notes, pass-throu gh securities, or other obligations issued
61 or guaranteed by any federal agency or corporation that has been or is herea fter creat ed
62 by or under an act of the Congr ess of the United States of America as an agency or
63 instrumentality ther eof if such obligations ar e either of the following:
64 a. Backed by the full faith and cred it of the United States of America; or
65 b. Rated by at least one nationally recogn ized securities rating agency in one of
66 the thr ee highest rating categories assigned by the rating agency;
67 (d) Commer cial paper that is rated not less than "P-1" by Moody's Investor
68 Service or "A-1+" by Standard and Poor's at the time of purch ase;
69 (e) Money market funds rated by at least one nationally r ecognized securities
70 rating agency in one of the thr ee highest rating categories assigned by that rating
71 agency;
72 (f) Bonds, warrants, notes, or other obligations issued by any state, county , or
73 municipality that ar e rated by at least one nationally recogn ized securities rating agency
74 in one of the thr ee highest rating categories assigned by that rating agency;
75 (g) Investment agr eements including, but not limited to, guaranteed investment
76 contracts, r epurc hase agr eements, and forward pur chase agr eements, provi ded that all
77 of the following r equir ements ar e satisfied:
78 a. Any securities pur chased or held under such agr eement ar e otherwise
79 permitted investments;
80 b. The counterparty's long-term debt obligations ar e rated by at least one
81 nationally reco gnized securities rating agency in one of the thr ee highest rating
82 categories assigned by that rating agency; and
83 c. The securities, if pur chased, are owned by the bank or a trustee for any of the
84 bank's obligations and are held by the bank, the trustee, or a third-party custodian
85 acceptable to the bank or , if held as collateral, ar e held by the bank, the trustee, or a
86 third-party custodian acceptable to the bank with a perfected first security interes t in
87 such collateral;
88 (h) Investment or cash management agree ments with a commer cial bank whose
89 senior long-term debt obligations are, at the time of the acquisition of any such
90 investment or cash management agreement for the account of the bank, rated by at least
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91 one nationally rec ognized securities rating agency in one of the thr ee highest rating
92 categories assigned by that rating agency , or with a commer cial bank that is owned or
93 contr olled by a bank holding company whose senior long-term debt obligations, at the
94 time of the acquisition of any such investment or cash management agr eement for the
95 account of the bank, are rated by at least one nationally recogn ized securities rating
96 agency in one of the thr ee highest rating categories assigned by that rating agency;
97 (14) "Revenues", when used with res pect to the authority , any rec eipts, fees,
98 income, or other payments recei ved or to be re ceived by the authority as a res ult of the
99 authority's activities under sections 260.130 to 260.169 including, but not limited to,
100 r eceipts and other payments deposited with the authority and investment earnings on its
101 funds and accounts;
102 (15) "Rural ar ea", any county within the state with fewer than one hundr ed fifty
103 thousand resi dents, as re corded at the most recent federal decennial census;
104 (16) "Strategic development fund", the strategic energy infrastructur e
1 0 5 development fund established under section 260.169;
106 (17) "T ransmission infrastructur e", facilities and systems r esponsible for
107 transporting electricity from generation sources and for also proc essing, converting, and
108 delivering such electricity into voltages req uired for the eligible pro ject including, but
109 not limited to, high-voltage transmission lines, transformers, br eakers, r elays,
1 1 0 substations, inter connection facilities, and associated equipment.
260.133. 1. Ther e is her eby creat ed within the authority a division to be known
2 as the "Missouri Energy Infrastructur e Bank".
3 2. Thr ough the bank, the authority may act as a state energy financing
4 institution, as defined in 42 U.S.C. Section 1651 1(7)(A), as amended, for purposes of
5 obtaining federal support for energy infrastructur e projects.
6 3. (1) Ther e is hereby creat ed in the state tr easury the "Missouri Energy
7 Infrastructur e Fund", which shall consist of moneys collected under sections 260.130 to
8 260.169. The state trea sur er shall be custodian of the fund. In accordance with sections
9 30.170 and 30.180, the state trea sur er may appr ove disbursements. The fund shall be a
10 dedicated fund and, upon appr opriation, moneys in this fund shall be used solely as
11 pr ovided in sections 260.130 to 260.169.
12 (2) Notwithstanding the pro visions of section 33.080 to the contrary , any moneys
13 r emaining in the fund at the end of the biennium shall not r evert to the credit of the
14 general reven ue fund.
15 (3) The state tre asurer shall invest moneys in the fund in the same manner as
16 other funds ar e invested. Any interes t and moneys earned on such investments shall be
17 cr edited to the fund.
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260.136. 1. In addition to the powers granted under this chapter , the authority
2 shall have additional powers to:
3 (1) Make loans or pr ovide other financial assistance to electric pro viders to
4 finance or r educe the costs of eligible projects, to collect fees and charges relat ed to such
5 loans or other financial assistance, and to acquire, hold, pledge, and sell loan obligations
6 at prices and in a manner the authority deems advisable;
7 (2) Enter into contracts, arrangements, and agr eements with electric pro viders
8 and other persons and execute and deliver all financing agreements and other
9 instruments necessary or convenient to the exer cise of the powers granted in sections
10 260.130 to 260.169;
11 (3) Enter into agr eements with a department, agency , or instrumentality of the
12 United States of America or of this state or another state for the purpose of planning,
13 securing, and pro viding for the financing of eligible pr ojects;
14 (4) Enter into contracts, arrangements, or agreements with external experts for
15 the purpose of prov iding advice r egarding the operations of the bank and viability of the
16 fund, as well as the necessity of project applications fr om the bank and strategic
17 development fund;
18 (5) Pr ocur e insurance, guarantees, letters of cred it, and other forms of collateral
19 or security or cred it support fr om any public entity , including any department, agency ,
20 or instrumentality of the United States of America or this state, for the payment of any
21 bonds issued by it, including the power to pay premiums or fees on any issuance,
22 guarantees, letters of cred it, or other forms of collateral or security or cred it support;
23 (6) Collect or authorize the trustee under any trust indentur e securing any
24 bonds to collect amounts due under any loan obligations owned by it, including taking
25 the action requ ired to obtain payment of any sums in default;
26 (7) Unless re stricted under any agr eement with holders of bonds, consent to any
27 modification with r espect to the rate of interes t, time, and payment of any installment of
28 principal or inter est, or premiu m, if any , or any other term of any loan obligations
29 owned by it or held by the applicable indentur e trustee;
30 (8) Borrow money thr ough the issuance of bonds and other forms of
31 indebtedness and to secure the repa yment of the same as pr ovided in section 260.130
32 to 260.169, including by pledging or granting of a security inter est in the loan obligation;
33 (9) Expend funds cred ited to the authority res ulting fro m its operations of the
34 energy bank as the authority may determine as being necessary or desirable for the
35 costs of administering the operations of the energy bank;
36 (10) Pr ocure insurance against losses in connection with its pr operty , assets, or
37 activities including insurance against liability for its act or the acts of its employees or
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38 agents or to establish cash res erves to enable it to act as a self-insurer against any and all
39 such losses;
40 (1 1) Apply for , r eceive, and accept fr om any sour ce aid, grants, and
41 contributions of money , pr operty , labor , or other things of value to be used to carry
42 out the purposes of sections 260.130 to 260.169, subject to the conditions upon which the
43 aid, grants, or contributions are made; and
44 (12) Do all other things necessary or convenient to carry out the purposes and
45 powers conferr ed in sections 260.130 to 260.169.
260.139. 1. In considering applications for eligible pr ojects, the authority may
2 r equest additional input fr om external experts as to the urgency of the energy
3 infrastructur e pr oject, the ability of the applicant to execute the pr oject within the
4 stated time frame, and other assistance as determined by the authority .
5 2. The total aggr egate amount of loans or other financial assistance prov ided by
6 the bank in any year shall be limited to an amount that would not jeopardize the validity
7 of the fund, as determined by the authority with the advice of external experts.
8 3. In selecting eligible projects, the authority shall consider , with assistance fr om
9 external experts, pr oject feasibility and the degr ee of financial risk to be assumed by the
10 authority .
11 4. The authority shall ensur e that no electric pr ovider rece ives mor e than forty
12 per cent of the loan or financial assistance funds pr ovided by the bank in each calendar
13 year unless a joint application is made; however , in no event shall mor e than fifty
14 per cent of the loan or financial assistance funds pr ovided by the bank in each calendar
15 year be rec eived by any single electric pr ovider .
16 5. The authority shall res erve at least forty percen t of the aggr egate amount
17 available in each calendar year for loans and other financial assistance fr om the energy
18 bank for energy infrastructur e pr ojects in rural areas. In the event that applications ar e
19 not re ceived for energy infrastructur e pro jects in rural areas by the close of the second
20 quarter of the applicable calendar year , such res ervation shall no longer apply and
21 r eserved funds may be used for other energy infrastructur e pr ojects, pro vided that, in
22 failing to apply for an energy infrastructur e pr oject by the end of the second quarter of
23 a calendar year , an electric prov ider is not pr ohibited fr om subsequently applying and
24 r eceiving an allocation of funds for energy infrastructur e project s in rural areas later in
25 the calendar year .
26 6. Any nonpublic or pr oprietary information included in an application by an
27 economic development prospec t or electric pr ovider shall be confidential.
260.142. 1. (1) An electric provi der , or mor e than one electric pr ovider in a joint
2 application, may apply to the authority for the purpose of obtaining financial assistance
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3 to support an eligible pr oject. An application under this subsection shall include the
4 following:
5 (a) A detailed summary of the pr oposed energy infrastructure pro ject, including
6 location, scope, timeline, and total estimated cost;
7 (b) Identification of the energy infrastructur e pr oject to be funded;
8 (c) Anticipated job cr eation, business attraction, or commer cial or industrial
9 expansion to be facilitated by the energy infrastructur e pr oject as applicable; and
10 (d) Pr ojected load demand and anticipated capacity increa ses;
11 (2) An application under this subsection for mor e than one electric provi der
12 shall also include:
13 (a) Identification of all participating electric pro viders and designation of a lead
14 applicant res ponsible for administration of funds; and
15 (b) Explanation of how participating electric prov iders will collaborate on
16 energy infrastructur e pr oject implementation.
17 (3) During the term that the financial assistance is pro vided under this
18 subsection, the electric pr ovider shall submit an annual repo rt to the authority detailing
19 the pr ogr ess of the appr oved eligible pr oject and the use of the financial assistance
20 pr ovided to the electric prov ider .
21 2. (1) An electric pr ovider and an economic development pr ospect may submit a
22 joint application for a long-lead item or energy infrastructur e pr oject if the pro vision of
23 financial assistance fr om the energy bank will facilitate an eligible pr oject for a new or
24 expanding industrial or commer cial facility within the state.
25 (2) A joint application under this subsection shall include:
26 (a) A statement fro m the electric pr ovider detailing the infrastructur e
27 impr ovements necessary to meet the eligible pr ospect's energy re quir ements; and
28 (b) An assessment of economic impact, including pro jected job crea tion, capital
29 investment, and state and local sales and prop erty tax reven ues generated fr om the
30 eligible pr oject, determined after taking into account any abatements granted.
31 (3) During the term that the financial assistance is pro vided under this
32 subsection, the economic development pr ospect and the electric provi der shall submit an
33 annual rep ort to the authority detailing the pro gres s of the appr oved eligible pr oject and
34 the use of the financial assistance pro vided.
35 (4) The authority may condition the granting of the application upon the
36 pr ovision of performance assurance or security by the economic development prospect.
37 (5) If the economic development pr ospect withdraws, fails to commence
38 operations, or materially alters its energy needs, the authority may enforce a
39 contractual obligation against the economic development pro spect for the authority's
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40 pr ovision of financial assistance, including draws on any performance assurance or
41 security pro vided.
260.145. 1. The authority may use the following sources to capitalize the energy
2 fund and to carry out the r equir ements of sections 260.130 to 260.169:
3 (1) Federal funds made available to the state for the energy bank or for eligible
4 pr ojects;
5 (2) Contributions and donations fr om public and private entities and any other
6 sour ce as may become available to the authority including, but not limited to,
7 appr opriations;
8 (3) All monies paid or credi ted to the authority , by contract or otherwise,
9 payments of principal and interes t on loans or other financial assistance made fr om the
10 authority , and interes t earnings that may accrue fr om the investment or reinv estment of
11 the authority's moneys;
12 (4) Pr oceeds fr om the issuance of bonds as pr ovided in sections 260.130 to
13 260.169; and
14 (5) Other lawful sour ces as determined appr opriate by the authority .
15 2. Any pledge of the revenu es and amounts described in subsection 1 of this
16 section to pr ovide funds for payment of debt services on bonds issued by the authority
17 or to pay obligations of the authority with res pect to other financial assistance shall
18 continue until the bonds have been fully repai d or the authority's obligations with
19 r espect to the other financial assistance have terminated, unless the trust indentur e,
20 financing agr eement, or other rel ated instrument pr oviding for the pledge express ly
21 pr ovides that the pledge may be terminated earlier or otherwise limited by the
22 authority .
260.148. 1. If the authority determines that it is necessary that monies be raised
2 for eligible pr ojects, including monies to be used to ref und any bonds then outstanding,
3 the authority may issue bonds as prov ided in this section.
4 2. The authority may pledge any of its re venue or funds to the payment of its
5 bonds, subject to any prior pledges for other outstanding bonds or other financial
6 assistance fr om the energy bank. Bonds may be secur ed by a pledge of any loan
7 obligation owned by the authority or held by an indentur e trustee, any grant,
8 contribution, or guaranty fr om the United States of America, the state, or any
9 corporation, association, institution, or person, or any other financial assistance
10 pr ovided by the authority , any bond insurance, guarantees, letters of cred it, or other
11 forms of credi t enhancement pur chased or otherwise obtained by the authority fr om
12 any public or private entity , any other pro perty or assets of the authority , or a pledge of
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13 or grant of security interes t in any money , income, or revenu e of the authority fr om any
14 sour ce.
15 3. Notwithstanding any pr ovision of law to the contrary , the total aggr egate
16 principal amount of bonds issued by the authority under this section shall not exceed
17 one billion dollars. This debt limitation shall apply solely to bonds issued for eligible
18 pr oject financing purposes under sections 260.130 to 260.169 and shall not be construed
19 to limit any other bonding authority granted to the authority under separate pr ovisions
20 of law .
260.151. 1. Bonds or other financial assistance issued by the authority shall not
2 constitute an obligation or debt of this state, or any of its political subdivisions, but shall
3 be limited obligations of the authority payable solely fro m the revenu e, money , or
4 pr operty of the authority pledged for such purpose as pr ovided in sections 260.130 to
5 260.169. Any bonds issued or other financial assistance fr om the authority do not
6 constitute an indebtedness of the state or any of its political subdivisions within the
7 meaning of any constitutional or statutory limitation, and neither the full faith and
8 cr edit nor the taxing power of the state or any of its political subdivisions ar e pledged to
9 the payment ther eof. No member of the authority or any person executing bonds, other
10 financial assistance, or other obligations of the authority is liable personally ther eon by
11 r eason of their issuance or execution.
12 2. Each bond, other financial assistance, and other obligation shall contain on its
13 face the following:
14 (1) The instrument is not a general obligation of the authority but is a limited
15 obligation of the authority payable solely fr om the reven ue, money , or other pr operty of
16 the authority pledged;
17 (2) The instrument is not an obligation or debt of the state, or any of its political
18 subdivisions, and neither the full faith and cred it nor the taxing power of the state or
19 any of its political subdivisions ar e pledged to the payment of the instrument; and
20 (3) The authority does not have taxing power .
260.154. 1. (1) The bonds of the authority shall be authorized by a res olution of
2 the authority .
3 (2) The bonds shall bear the date and matur e at the time that the r esolution
4 pr ovides, except that no bond may matur e mor e than forty years fro m its date of issue.
5 (3) The bonds may be in the denominations, be executed in the manner , be
6 payable in the medium of payment, be payable at the place and at the time, and be
7 subject to r edemption or rep urch ase and contain other provi sions determined by the
8 authority prior to their issuance.
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9 (4) The bonds may bear interes t payable at a time and rate as determined by the
10 authority .
11 (5) Bonds may be sold by the authority at public or private sale at the price it
12 determines and appr oves.
13 2. (1) Bonds may be secured by a trust indentur e between the authority and a
14 corporate trustee, which may be the state trea sur er or any bank having trust powers or
15 any trust company doing business in this state. A trust indentur e may contain
16 pr ovisions for pr otecting and enforci ng the rights and r emedies of the bondholders that
17 ar e reas onable and pr oper , including covenants setting forth the duties of the authority
18 in re lation to the exer cise of its powers and the custody , safekeeping, and application of
19 its money . The authority may pr ovide by the trust indentur e for the payment of the
20 pr oceeds of the bonds and all or any part of the r evenues of the authority to the trustee
21 under the trust indentur e or to some other depository and for the method of its
22 disbursement with safeguards and res trictions. All expenses incurr ed in fulfilling the
23 obligations of the authority under the trust indentur e may be trea ted as part of the
24 authority's operating expenses.
25 (2) Any res olution or trust indentur e under that bonds ar e issued may contain
26 pr ovisions that ar e part of the contract with the bondholders of the bonds and which
27 shall include the following:
28 (a) Pledging specific reven ues of the authority to secure payment of the bonds;
29 (b) Pledging specific assets of the authority , including loan obligations owned by
30 it to secure the payment of the bonds;
31 (c) The use and disposition of the gr oss income fr om, payment of the principal
32 of, and interes t on loan obligations owned by the authority or held by an indentur e
33 trustee;
34 (d) The establishment of r eserves, sinking funds, and other funds and accounts,
35 and their re gulation and disposition;
36 (e) Limitations on the purposes to which the pr oceeds fr om the sale of the bonds
37 may be applied, and limitations on pledging the pr oceeds to secure the payment of the
38 bonds;
39 (f) Limitations on the issuance of additional bonds, the terms upon which
40 additional bonds may be issued and secured , and the ref unding of outstanding or other
41 bonds;
42 (g) The proced ure, if any , by which the terms of any contract with bondholders
43 may be amended or abr ogated, the amount of bonds, if any , the holders of which shall
44 consent to, and the manner in which any consent may be given;
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45 (h) Limitations on the amount of money to be expended by the authority for its
46 operating expenses;
47 (i) V esting in a trustee prope rty , rights, powers, and duties as the authority may
48 determine, limiting or abr ogating the right of bondholders to appoint a trustee, and
49 limiting the rights, powers, and duties of the trustee;
50 (j) Defining the acts or omissions that constitute a default, the obligations or
51 duties of the authority to the holders of the bonds, and the rights and rem edies of the
52 holders of the bonds in the event of default, including as a matter of right the
53 appointment of a rece iver , and all other rights generally available to cre ditors;
54 (k) Requiring the authority or the trustee under the trust indentur e to take any
55 and all other action to obtain payment of all sums req uire d to eliminate any default as to
56 any principal of any interes t on loan obligations owned by the authority or held by a
57 trustee, which may be authorized by the laws of this state; and
58 (l) Any other matter relat ing to the terms of the bonds or the security or
59 pr otection of the holders of the bonds that may be consider ed appr opriate.
60 3. (1) Any pledge made by the authority to secure its obligations with res pect to
61 bonds or other financial assistance is valid and binding fr om the time the pledge is
62 made. The r evenue, money , or pro perty pledged and rece ived by the authority is
63 immediately subject to the lien of the pledge without any physical delivery or further
64 act. The lien of any pledge is valid and binding as against all parties having claims of
65 any kind in tort, contract, or otherwise against the authority , irres pective of whether the
66 parties have notice of the pledge.
67 (2) No reco rding or filing of the res olution authorizing the issuance of bonds or
68 other financial assistance, the trust indentur e or other financing agreement securing the
69 bonds or other financial assistance, or any other instrument including filings under the
70 Uniform Commer cial Code is necessary to creat e or perfect any pledge or security
71 inter est granted by the authority to secure any bonds or other financial assistance.
72 4. The authority , subject to agr eements with bondholders as may then exist, may
73 pur chase outstanding bonds of the authority with any available funds, at any reas onable
74 price. If the bonds are then red eemable, the price shall not exceed the red emption price
75 then applicable plus accrued interes t to the next interes t payment date.
76 5. Bonds of the authority shall be in a form and shall be executed in a manner
77 pr escribed by the authority .
78 6. If any of the dir ectors or officers of the authority cease to be dir ectors or
79 officers before the delivery of any bonds signed by them, their signatures or authorized
80 facsimile signature s shall be valid and sufficient for all purposes as if they had rem ained
81 in office until the delivery of the bonds.
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82 7. Subsequent amendments to sections 260.130 to 260.169 shall not limit the
83 rights vested in the authority with respect to any agreements made with, or rem edies
84 available to, the holders of the bonds issued under sections 260.130 to 260.169 befor e the
85 enactment of the amendments until all the bonds, with all premiums and intere st on
86 them, and all costs and expenses in connection with any pr oceeding by or on behalf of
87 the holders, are fully satisfied and discharged.
88 8. Notwithstanding any prov ision of law to the contrary , any bonds issued by the
89 authority under sections 260.130 to 260.169, transfer of bonds, and the income fr om
90 them are fr ee fr om taxation and assessment of every kind by the state and by the local
91 governments and political subdivisions of the state.
92 9. (1) The bonds issued by the authority ar e legal investments in which all public
93 officers or public bodies of the state and its political subdivisions; all municipalities and
94 political subdivisions; all insurance companies and associations and other persons
95 carrying insurance on business; all banks, bankers, banking associations, trust
96 companies, savings banks, savings associations, including savings and loan association
97 investment companies, and other persons carrying on a banking business; all
98 administrators, guardians, executors, trustees, and other fiduciaries; and all other
99 persons who are now or may be authorized in the future to invest in bonds or other
100 obligations of the state may invest funds in their control and belonging to them.
101 (2) The bonds of the authority ar e also securities that may be deposited with and
102 r eceived by all public officers and bodies of the state or any agency or political
103 subdivision of the state and all municipalities and public corporations for any purpose
104 for which the deposit of bonds or other obligations of the state is now or may later be
105 r equir ed by law .
106 10. (1) The granting of other financial assistance by the authority shall be
107 authorized only by a res olution of the authority .
108 (2) The authority may execute instruments and enter into financing agr eements
109 including, but not limited to, a trust indentur e between the authority and a corporate
110 trustee, which may be the state trea sur er or any bank having trust powers or any trust
111 company doing business in this state, containing the terms and conditions as the
112 authority shall determine in connection with the provi sion of other financial assistance
113 and securing its obligations with res pect to other financial assistance.
114 (3) The authority may pledge any of its revenu es or funds to the payment of
115 other financial assistance pr ovided by the authority , subject to any prior pledges for
116 outstanding bonds or other financial assistance of the authority . Other financial
117 assistance may be secured by a pledge of any loan obligation owned by the authority or
118 held by an indentur e trustee, any grant, contribution, or guaranty fr om the United
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119 States of America, the state, or any corporation, association, institution, or person, any
120 other prop erty or assets of the authority , or a pledge or grant of a security interes t in or
121 any money , income, or rev enue of the authority fr om any source .
122 1 1. Neither the authority nor any member , officer , employee, or committee of the
123 authority acting on behalf of it, while acting within the scope of authority granted by
124 sections 260.130 to 260.169, is subject to any liability res ulting fr om carrying out any of
125 the powers given in this section, unless the officer or employee acted in an unr easonable
126 or rec kless manner .
260.157. 1. (1) There is her eby cr eated in the state tr easury the "Strategic
2 Energy Infrastructur e Development Fund", which shall consist of moneys collected
3 under sections 260.130 to 260.169. The state tr easurer shall be custodian of the fund. In
4 accordance with sections 30.170 and 30.180, the state tre asure r may appr ove
5 disbursements. The fund shall be a dedicated fund and, upon appr opriation, moneys
6 in this fund shall be used solely as pro vided in this section.
7 (2) Notwithstanding the pro visions of section 33.080 to the contrary , any moneys
8 r emaining in the fund at the end of the biennium shall not r evert to the credit of the
9 general reven ue fund.
10 (3) The state tre asurer shall invest moneys in the fund in the same manner as
11 other funds ar e invested. Any interes t and moneys earned on such investments shall be
12 cr edited to the fund.
13 2. Before September 30, 2030, the moneys in the fund shall be utilized for
14 infrastructur e improv ements and items permitted under sections 260.130 to 260.169 in
15 rural areas. Any funds re maining in the strategic development fund after September
16 30, 2030, shall be divided, with fifty percen t of the funds used for infrastructur e
17 impr ovements and development in rural ar eas and fifty percen t used for other energy
18 infrastructur e pro jects in other ar eas of the state.
19 3. The strategic development fund shall be under the management and control of
20 the authority , and all powers necessary or appr opriate for the management and contr ol
21 of the strategic development fund shall be vested solely in the authority . The authority
22 may make whatever repr esentations and covenants it finds reas onable or necessary for
23 federal grant applications and agree ments, and it may take whatever actions it deems
24 r easonable or necessary to implement such grants.
25 4. The strategic development fund shall be funded with moneys appr opriated by
26 the general assembly and additional funding sour ces, including federal grants, pr oceeds
27 fr om gifts, grants, or contributions, and any other lawful sour ce.
28 5. The strategic development fund shall be administered in accordance with this
29 section. All revenu es receiv ed by the strategic development fund shall be deposited in
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30 the fund upon receip t and may be invested by the authority and withdrawn and
31 expended by the authority in a manner consistent with the powers granted to the
32 authority .
33 6. Funding shall be pr ovided to pr ojects in accordance with the pro visions of
34 sections 260.130 to 260.169, in the form of financial assistance or grants.
260.160. 1. (1) An electric pr ovider and an economic development pr ospect or
2 electric provi ders jointly may submit a joint application for funding fr om the strategic
3 development fund if the pr ovision of funding fr om the strategic development fund will
4 facilitate an economic development pr oject for a new or expanding industrial or
5 commer cial facility within the state subject to the r equir ements for uses in rural areas.
6 (2) A joint application under this section shall include:
7 (a) A statement fro m the electric pr ovider detailing the infrastructur e
8 impr ovements necessary to meet the prospect's energy r equir ements; and
9 (b) An assessment of economic impact, including pr oject job cr eation, capital
10 investment, and state and local sales and prop erty tax reven ues generated fr om the
11 strategic development pr oject.
12 (3) During the term that the funding is being provi ded under this section, the
13 economic development pr ospect and the electric pro vider shall submit an annual report
14 to the authority detailing the pr ogr ess of the appr oved strategic development pr oject
15 and the use of the financial assistance pr ovided.
16 (4) If the economic development pr ospect withdraws, fails to commence
17 operations, or materially alters its energy needs, the authority may enforce a
18 contractual obligation against the economic development pro spect for the authority's
19 pr ovision of funding.
20 2. The strategic development fund shall be used for the following purposes only:
21 (1) For the authority to enter into priority pr oduction placement agr eements
22 with key manufactur ers of long lead-time electrical equipment including, but not limited
23 to, transformers, substations, switchgear , and specialized cir cuit br eakers for an
24 economic development prospec t being recru ited to or expanding in the state; and
25 (2) Notwithstanding the pro visions of subsection 3 of this section, to provi de
26 funding for site-specific infrastructur e development including, but not limited to, the
27 extension of transmission lines and pipelines; enhancements or expansions to substation
28 capacity; the acquisition of rights-of-way for key transmission and commer cial sites, as
29 identified by the authority for development; and transformers, br eakers, and other
30 facilities necessary for pr ocessing, converting, and delivering such electricity into
31 voltages necessary or useful for the economic development pr oject.
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32 3. An electric provi der shall not be eligible to be a dir ect r ecipient of funding
33 fr om the strategic development fund, except as pr ovided in subdivision (2) of subsection
34 2 of this section.
35 4. Any nonpublic or pr oprietary information included in an application by an
36 economic development prospec t or electric pr ovider shall be confidential.
260.163. 1. At the close of each fiscal year , the authority shall submit an annual
2 r eport on the activities of the energy bank and use of the strategic development fund for
3 the preced ing year to the governor and the general assembly . The authority shall also
4 submit an annual repo rt to the appr opriate federal agency in accordance with the
5 r equir ements of any federal pr ogram.
6 2. The authority shall be subject to audits only as r equir ed by existing state law
7 and applicable federal regu lations.
260.166. The authority may enter into such contracts, agr eements, and
2 investments and may otherwise expend monies without compliance with the
3 pr ovisions of chapter 34.
260.169. The pr ovisions of sections 260.130 to 260.169 shall not authorize any
2 electric pr ovider to pro vide ret ail electric service except as permitted in chapters 91,
3 386, and 394.
✔
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