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SECOND REGULAR SESSION
HOUSE COMMITTEE SUBSTITUTE FOR
HOUSE BILL NO. 2807
103RD GENERAL ASSEMBL Y
6531H.03C JOSEPH ENGLER, Chief Clerk
AN ACT
T o repeal sections 260.035, 393.1025, 393.1030, and 393.1050, RSMo, and to enact in lieu
thereof four new sections relating to nuclear ener gy .
Be it enacted by the General Assembly of the state of Missouri, as follows:
Section A. Sections 260.035, 393.1025, 393.1030, and 393.1050, RSMo, are repealed
2 and four new sections enacted in lieu thereof, to be known as sections 260.035, 393.1025,
3 393.1030, and 393.1050, to read as follows:
260.035. 1. The authority is hereby granted and may exercise all powers necessary or
2 appropriate to carry out and ef fectuate its purposes pursuant to the provisions of sections
3 260.005 to 260.125, including, but not limited to, the following:
4 (1) T o adopt bylaws and rules after having held public hearings thereon for the
5 regulation of its af fairs and the conduct of its business;
6 (2) T o adopt an of ficial seal;
7 (3) T o maintain a principal of fice and such other of fices within the state as it may
8 designate;
9 (4) T o sue and be sued;
10 (5) T o make and execute leases, contracts, releases, compromises, and other
11 instruments necessary or convenient for the exercise of its powers or to carry out its purposes;
12 (6) T o acquire, construct, reconstruct, enlar ge, improve, furnish, equip, maintain,
13 repair , operate, lease, finance, and sell equipment, structures, systems, and projects and to
14 lease the same to any private person, firm, or corporation, or to any public body , political
15 subdivision, or municipal corporation. Any such lease may provide for the construction of
16 the project by the lessee;
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 (7) T o issue bonds and notes as hereinafter provided and to make, purchase, or
18 participate in the purchase of loans or municipal obligations and to guarantee loans to finance
19 the acquisition, construction, reconstruction, enlar gement, improvement, furnishing,
2 0 equipping, maintaining, repairing, operating, or leasing of a project;
21 (8) T o invest any funds not required for immediate disbursement in obligations of the
22 state of Missouri or of the United States or any agency or instrumentality thereof, or in bank
23 certificates of deposit; provided, however , the foregoing limitations on investments shall not
24 apply to proceeds acquired from the sale of bonds or notes which are held by a corporate
25 trustee pursuant to section 260.060;
26 (9) T o acquire by gift or purchase, hold and dispose of real and personal property in
27 the exercise of its powers and the performance of its duties hereunder;
28 (10) T o employ managers and other employees and retain or contract with architects,
29 engineers, accountants, financial consultants, attorneys, and such other persons, firms, or
30 corporations who are necessary in its judgment to carry out its duties, and to fix the
31 compensation thereof;
32 (1 1) T o receive and accept appropriations, bequests, gifts, and grants and to utilize or
33 dispose of the same to carry out its purposes pursuant to the provisions of sections 260.005 to
34 260.125;
35 (12) T o engage in research and development with respect to pollution control
36 facilities and solid waste or sewage disposal facilities, water facilities, resource recovery
37 facilities, and the development of ener gy resources;
38 (13) T o collect rentals, fees, and other char ges in connection with its services or for
39 the use of any project hereunder;
40 (14) T o sell at private sale any of its property or projects to any private person, firm,
41 or corporation, or to any public body , political subdivision, or municipal corporation, on such
42 terms as it deems advisable, including the right to receive for such sale the note or notes of
43 any such person to whom the sale is made. Any such sale shall provide for payments
44 adequate to pay the principal of and interest and premiums, if any , on the bonds or notes
45 issued to finance such project or portion thereof. Any such sale may provide for the
46 construction of the project by the purchaser of the project;
47 (15) T o make, purchase, or participate in the purchase of loans to finance the
48 development and marketing of:
49 (a) Means of ener gy production utilizing ener gy sources other than fossil [ or nuclear ]
50 fuel, including, but not limited to, wind, water , solar , biomass, solid waste, and other
51 renewable ener gy resource technologies;
52 (b) Fossil fuels and recycled fossil fuels which are indigenous ener gy resources
53 produced in the state of Missouri, including coal, heavy oil, and tar sands; and
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54 (c) Synthetic fuels produced in the state of Missouri;
55 (16) T o insure any loan, the funds of which are to be used for the development and
56 marketing of ener gy resources as authorized by sections 260.005 to 260.125;
57 (17) T o make temporary loans, with or without interest, but with such security for
58 repayment as the authority deems reasonably necessary and practicable, to defray
59 development costs of ener gy resource development projects;
60 (18) T o collect reasonable fees and char ges in connection with making and servicing
61 its loans, notes, bonds and obligations, commitments, and other evidences of indebtedness
62 made, issued or entered into to develop ener gy resources, and in connection with providing
63 technical, consultative, and project assistance services in the area of ener gy development.
64 Such fees and char ges shall be limited to the amounts required to pay the costs of the
65 authority , including operating and administrative expenses, and reasonable allowance for
66 losses which may be incurred;
67 (19) T o enter into agreements or other transactions with any federal or state agency ,
68 any person and any domestic or foreign partnership, corporation, association, or or ganization
69 to carry out the provisions of sections 260.005 to 260.125;
70 (20) T o sell, at public or private sale, any mortgage and any real or personal property
71 subject to that mortgage, negotiable instrument, or obligation securing any loan;
72 (21) T o procure insurance against any loss in connection with its property in such
73 amounts, and from such insurers, as may be necessary or desirable;
74 (22) T o consent to the modification of the rate of interest, time of payment for any
75 installment of principal or interest, or any other terms, of any loan, loan commitment,
76 temporary loan, contract, or agreement made directly by the authority;
77 (23) T o make and publish rules and regulations concerning its lending, insurance of
78 loans, and temporary lending to defray development costs, along with such other rules and
79 regulations as are necessary to ef fectuate its purposes. No rule or portion of a rule
80 promulgated under the authority of sections 260.005 to 260.125 shall become ef fective unless
81 it has been promulgated pursuant to the provisions of section 536.024;
82 (24) T o borrow money to carry out and ef fectuate its purpose in the area of ener gy
83 resource development and to issue its negotiable bonds or notes as evidence of any such
84 borrowing in such principal amounts and upon such terms as shall be determined by the
85 authority , and to secure such bonds or notes by the pledge of revenues, mortgages, or notes of
86 others as authorized by sections 260.005 to 260.125.
87 2. The authority shall develop a hazardous waste facility if the study required in
88 section 260.037 demonstrates that a facility is economically feasible. The facility , which shall
89 not include a hazardous waste landfill, may be operated by any eligible party as specified in
90 this section. The authority shall begin development of the facility by July 1, 1985.
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91 3. All employees of the authority shall be eligible for membership in the Missouri
92 state employees' retirement system, subject to all provisions in chapters 104 and 105
93 applicable to the system.
393.1025. As used in sections 393.1020 to 393.1030, the following terms mean:
2 (1) "Battery energy storage systems", battery energy electr ochemical devices
3 that charge, or collect, energy fr om the grid or a generation facility , store that energy ,
4 and then discharge that energy at a later time to prov ide electricity or other grid
5 services;
6 (2) "Commission", the public service commission;
7 [ (2) ] (3) "Department", the department of [ economic development ] natural
8 r esources ;
9 [ (3) ] (4) "Electric utility", any electrical corporation as defined by section 386.020;
10 (5) "Nuclear energy cr edit" or "NEC", a tradeable certificate of pro of that one
11 megawatt-hour of electricity has been generated fr om nuclear power generated fr om a
12 nuclear generating facility that begins operation after August 28, 2026;
13 [ (4) ] (6) "Renewable ener gy credit" or "REC", a tradeable certificate of proof that one
14 megawatt-hour of electricity has been generated from renewable ener gy sources; [and
15 (5) ] (7) "Renewable ener gy resources", electric ener gy produced from wind, solar
16 thermal sources, photovoltaic cells and panels, dedicated crops grown for ener gy production,
17 cellulosic agricultural residues, plant residues, methane from landfills, from agricultural
18 operations, or from wastewater treatment, thermal depolymerization or pyrolysis for
19 converting waste material to ener gy , clean and untreated wood such as pallets, hydropower
20 (not including pumped storage) that does not require a new diversion or impoundment of
21 water and that has a nameplate rating of ten megawatts or less, fuel cells using hydrogen
22 produced by one of the above-named renewable ener gy sources, battery energy storage
23 systems, and other sources of ener gy not including nuclear that become available after
24 November 4, 2008, and are certified as renewable by rule by the department.
393.1030. 1. The commission shall, in consultation with the department, prescribe by
2 rule a portfolio requirement for all electric utilities to generate or purchase electricity
3 generated from renewable ener gy resources and nuclear energy sour ces generated fr om
4 nuclear generating facilities that begin operation after August 28, 2026 . Such portfolio
5 requirement shall provide that electricity from renewable ener gy resources and nuclear
6 energy source s under this subsection shall constitute the following portions of each electric
7 utility's sales:
8 (1) No less than two percent for calendar years 201 1 through 2013;
9 (2) No less than five percent for calendar years 2014 through 2017;
10 (3) No less than ten percent for calendar years 2018 through 2020; and
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11 (4) No less than fifteen percent [ in each ] for calendar [ year beginning in ] years 2021
12 thr ough 2026; and
13 (5) No less than seven and one-half percen t in each calendar year beginning in
14 2027 .
15
16 At least two percent of each portfolio requirement shall be derived from solar ener gy . The
17 portfolio requirements shall apply to all power sold to Missouri consumers whether such
18 power is self-generated or purchased from another source in or outside of this state. A utility
19 may comply with the standard in whole or in part by purchasing RECs or NECs . Each
20 kilowatt-hour of eligible ener gy generated in Missouri shall count as 1.25 kilowatt-hours for
21 purposes of compliance.
22 2. (1) This subsection applies to electric utilities with more than two hundred fifty
23 thousand but less than one million retail customers in Missouri as of the end of the calendar
24 year 2024.
25 (2) Energy meeting the criteria of the renewable energ y portfolio requirements set
26 forth in subsection 1 of this section that is generated from renewable ener gy resources and
27 nuclear energy sources pursuant to subsection 1 of this section and contracted for by an
28 accelerated renewable buyer shall:
29 (a) Have all associated renewable ener gy certificates and nuclear energy certificates
30 retired by the accelerated renewable buyer , or on their behalf, and the certificates shall not be
31 used to meet the electric utility's portfolio requirements pursuant to subsection 1 of this
32 section;
33 (b) Be excluded from the total electric utility's sales used to determine the portfolio
34 requirements pursuant to subsection 1 of this section; and
35 (c) Be used to of fset all or a portion of its electric load for purposes of determining
36 compliance with the portfolio requirements pursuant to subsection 1 of this section.
37 (3) The accelerated renewable buyer shall be exempt from any renewable ener gy
38 standard compliance costs as may be established by the utility and approved by the
39 commission, based on the amount of renewable ener gy certificates and nuclear energy
40 certificates retired pursuant to this subsection in proportion to the accelerated renewable
41 buyer's total electric ener gy consumption, on an annual basis.
42 (4) An "accelerated renewable buyer" means a customer of an electric utility , with an
43 aggregate load over eighty average megawatts, that enters into a contract or contracts to
44 obtain:
45 (a) Renewable ener gy certificates or nuclear energy certificates from renewable
46 ener gy resources as defined in section 393.1025 , and nuclear energy sour ces under
47 subsection 1 of this section ; or
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48 (b) Energy and renewable ener gy certificates from solar or wind generation resources
49 located within the Southwest Power Pool region and initially placed in commercial operation
50 after January 1, 2020, including any contract with the electric utility for such generation
51 resources that does not allocate to or recover from any other customer of the utility the cost of
52 such resources.
53 (5) Each electric utility shall certify , and verify as necessary , to the commission that
54 the accelerated renewable buyer has satisfied the exemption requirements of this subsection
55 for each year , or an accelerated renewable buyer may choose to certify satisfaction of this
56 exemption by reporting to the commission individually .
57 (6) The commission may promulgate such rules and regulations as may be necessary
58 to implement the provisions of this subsection. Any rule or portion of a rule, as that term is
59 defined in section 536.010, that is created under the authority delegated in this section shall
60 become ef fective only if it complies with and is subject to all of the provisions of chapter 536
61 and, if applicable, section 536.028. This section and chapter 536 are nonseverable and if any
62 of the powers vested with the general assembly pursuant to chapter 536 to review , to delay the
63 ef fective date, or to disapprove and annul a rule are subsequently held unconstitutional, then
64 the grant of rulemaking authority and any rule proposed or adopted after August 28, 2025,
65 shall be invalid and void.
66 (7) Nothing in this section shall be construed as imposing or authorizing the
67 imposition of any reporting, regulatory , or financial burden on an accelerated renewable
68 buyer .
69 3. Notwithstanding any other prov ision of this section to the contrary , an electric
70 utility may comply with this section using energy savings capture d due to energy
71 efficiency or demand-side measur es. As part of the commission's rulemaking authority
72 pursuant to subsection 8 of this section, the commission shall prescrib e a rule allowing
73 an electric utility to comply with the portfolio requ irem ents of subsection 1 of this
74 section using verified megawatt-hour savings captur ed due to commission-appr oved
75 demand-side pr ograms under section 393.1075 during each compliance year , whether
76 such annual energy savings is due to measur es installed in that compliance year or in
77 pr evious compliance years beginning with 2022.
78 4. The commission, in consultation with the department and within one year of
79 November 4, 2008, shall select a program for tracking and verifying the trading of renewable
80 ener gy credits and nuclear energy credits . An unused credit may exist for up to three years
81 from the date of its creation. A credit may be used only once to comply with sections
82 393.1020 to 393.1030 and may not also be used to satisfy any similar nonfederal requirement.
83 An electric utility may not use a credit derived from a green pricing program. Certificates
84 from net-metered sources shall initially be owned by the customer -generator . The
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85 commission, except where the department is specified, shall make whatever rules are
86 necessary to enforce the renewable ener gy standard. Such rules shall include:
87 (1) A maximum average retail rate increase of one percent determined by estimating
88 and comparing the electric utility's cost of compliance with least-cost renewable generation
89 and the cost of continuing to generate or purchase electricity from entirely nonrenewable
90 sources, taking into proper account future environmental regulatory risk including the risk of
91 greenhouse gas regulation. Notwithstanding the foregoing, until June 30, 2020, if the
92 maximum average retail rate increase would be less than or equal to one percent if an electric
93 utility's investment in solar -related projects initiated, owned or operated by the electric utility
94 is ignored for purposes of calculating the increase, then additional solar rebates shall be paid
95 and included in rates in an amount up to the amount that would produce a retail rate increase
96 equal to the dif ference between a one percent retail rate increase and the retail rate increase
97 calculated when ignoring an electric utility's investment in solar -related projects initiated,
98 owned, or operated by the electric utility . Notwithstanding any provision to the contrary in
99 this section, even if the payment of additional solar rebates will produce a maximum average
100 retail rate increase of greater than one percent when an electric utility's investment in solar-
101 related projects initiated, owned or operated by the electric utility are included in the
102 calculation, the additional solar rebate costs shall be included in the prudently incurred costs
103 to be recovered as contemplated by subdivision (4) of this subsection;
104 (2) Penalties of at least twice the average market value of renewable ener gy credits
105 for the compliance period for failure to meet the tar gets of subsection 1 of this section. An
106 electric utility will be excused if it proves to the commission that failure was due to events
107 beyond its reasonable control that could not have been reasonably mitigated, or that the
108 maximum average retail rate increase has been reached. Penalties shall not be recovered from
109 customers. Amounts forfeited under this section shall be remitted to the department to
110 purchase renewable ener gy credits needed for compliance. Any excess forfeited revenues
111 shall be used by the division of ener gy solely for renewable ener gy and ener gy ef ficiency
112 projects;
113 (3) Provisions for an annual report to be filed by each electric utility in a format
114 suf ficient to document its progress in meeting the tar gets;
115 (4) Provision for recovery outside the context of a regular rate case of prudently
116 incurred costs and the pass-through of benefits to customers of any savings achieved by an
117 electrical corporation in meeting the requirements of this section.
118 [ 4. ] 5. As provided for in this section, except for those electrical corporations that
119 qualify for an exemption under section 393.1050, each electric utility shall make available to
120 its retail customers a solar rebate for new or expanded solar electric systems sited on
121 customers' premises, up to a maximum of twenty-five kilowatts per system, measured in
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122 direct current that were confirmed by the electric utility to have become operational in
123 compliance with the provisions of section 386.890. The solar rebates shall be two dollars per
124 watt for systems becoming operational on or before June 30, 2014; one dollar and fifty cents
125 per watt for systems becoming operational between July 1, 2014, and June 30, 2015; one
126 dollar per watt for systems becoming operational between July 1, 2015, and June 30, 2016;
127 fifty cents per watt for systems becoming operational between July 1, 2016, and June 30,
128 2017; fifty cents per watt for systems becoming operational between July 1, 2017, and June
129 30, 2019; twenty-five cents per watt for systems becoming operational between July 1, 2019,
130 and June 30, 2020; and zero cents per watt for systems becoming operational after June 30,
131 2020. An electric utility may , through its tariff s, require applications for rebates to be
132 submitted up to one hundred eighty-two days prior to the June thirtieth operational date.
133 Nothing in this section shall prevent an electrical corporation from of fering rebates after July
134 1, 2020, through an approved tarif f. If the electric utility determines the maximum average
135 retail rate increase provided for in subdivision (1) of subsection 3 of this section will be
136 reached in any calendar year , the electric utility shall be entitled to cease paying rebates to the
137 extent necessary to avoid exceeding the maximum average retail rate increase if the electrical
138 corporation files with the commission to suspend its rebate tariff for the remainder of that
139 calendar year at least sixty days prior to the change taking ef fect. The filing with the
140 commission to suspend the electrical corporation's rebate tarif f shall include the calculation
141 reflecting that the maximum average retail rate increase will be reached and supporting
142 documentation reflecting that the maximum average retail rate increase will be reached. The
143 commission shall rule on the suspension filing within sixty days of the date it is filed. If the
144 commission determines that the maximum average retail rate increase will be reached, the
145 commission shall approve the tarif f suspension. The electric utility shall continue to process
146 and pay applicable solar rebates until a final commission ruling; however , if the continued
147 payment causes the electric utility to pay rebates that cause it to exceed the maximum average
148 retail rate increase, the expenditures shall be considered prudently incurred costs as
149 contemplated by subdivision (4) of subsection 3 of this section and shall be recoverable as
150 such by the electric utility . As a condition of receiving a rebate, customers shall transfer to
151 the electric utility all right, title, and interest in and to the renewable ener gy credits associated
152 with the new or expanded solar electric system that qualified the customer for the solar rebate
153 for a period of ten years from the date the electric utility confirmed that the solar electric
154 system was installed and operational.
155 [ 5. ] 6. The department shall, in consultation with the commission, establish by rule a
156 certification process for electricity generated from renewable resources and used to fulfill the
157 requirements of subsection 1 of this section. Certification criteria for renewable ener gy
158 generation shall be determined by factors that include fuel type, technology , and the
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159 environmental impacts of the generating facility . Renewable ener gy facilities shall not cause
160 undue adverse air , water , or land use impacts, including impacts associated with the gathering
161 of generation feedstocks. If any amount of fossil fuel is used with renewable ener gy
162 resources, only the portion of electrical output attributable to renewable ener gy resources
163 shall be used to fulfill the portfolio requirements.
164 [ 6. ] 7. In carrying out the provisions of this section, the commission and the
165 department shall include methane generated from the anaerobic digestion of farm animal
166 waste and thermal depolymerization or pyrolysis for converting waste material to ener gy as
167 renewable ener gy resources for purposes of this section.
168 [ 7. ] 8. The commission shall have the authority to promulgate rules for the
169 implementation of this section, but only to the extent such rules are consistent with, and do
170 not delay the implementation of, the provisions of this section. Any rule or portion of a rule,
171 as that term is defined in section 536.010, that is created under the authority delegated in this
172 section shall become ef fective only if it complies with and is subject to all of the provisions of
173 chapter 536 and, if applicable, section 536.028. This section and chapter 536 are
174 nonseverable and if any of the powers vested with the general assembly pursuant to chapter
175 536 to review , to delay the effecti ve date, or to disapprove and annul a rule are subsequently
176 held unconstitutional, then the grant of rulemaking authority and any rule proposed or
177 adopted after August 28, 2013, shall be invalid and void.
393.1050. Notwithstanding any other provision of law , any electrical corporation as
2 defined by subdivision (15) of section 386.020 which, by [ January 20, 2009, ] January 1,
3 2027, achieves an amount of eligible renewable ener gy technology nameplate capacity and
4 capacity generated fr om nuclear energy sources pursuant to subsection 1 of section
5 393.1030 equal to or greater than [ fifteen ] seven and one-half percent of such corporation's
6 total owned fossil-fired generating capacity , shall be exempt thereafter from a requirement to
7 pay any installation subsidy , fee, or rebate to its customers that install their own solar electric
8 ener gy system and shall be exempt from meeting any mandated solar renewable ener gy
9 standard requirements. Any disputes or denial of exemptions under this section may be
10 reviewable by the circuit court of Cole County as prescribed by law .
✔
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