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SECOND REGULAR SESSION
HOUSE BILL NO. 3364
103RD GENERAL ASSEMBL Y
INTRODUCED BY REPRESENT A TIVE COSTLOW .
7308H.01I JOSEPH ENGLER, Chief Clerk
AN ACT
T o repeal section 394.080, RSMo, and to enact in lieu thereof seven new sections relating to
use of resources by industrial users.
Be it enacted by the General Assembly of the state of Missouri, as follows:
Section A. Section 394.080, RSMo, is repealed and seven new sections enacted in
2 lieu thereof, to be known as sections 91.015, 91.016, 247.222, 393.403, 393.1780, 394.080,
3 and 640.640, to read as follows:
91.015. A municipally owned utility shall develop a service tariff schedule
2 applicable to customers reas onably pr ojected to have an annual peak demand of fifty
3 megawatts or mor e. The tariff schedule shall ensure that customers' rates reas onably
4 r eflect the r epresent ative share of the costs incurr ed to serve the customers and pr event
5 other customer classes' rates fr om re flecting unjust or unrea sonable costs arising fr om
6 service to customers with an annual peak demand of fifty megawatts or mor e.
91.016. A municipally owned utility shall develop a service tariff schedule
2 applicable to customers rea sonably projected to exceed two million gallons per day or
3 eighty per cent of the available capacity for that system per day . The tariff schedule
4 shall ensure that customers' rates r easonably refl ect the repr esentative share of the costs
5 incurr ed to serve the customers and prev ent other customer classes' rates fr om
6 r eflecting unjust or unr easonable costs arising fr om service to customers reas onably
7 pr ojected to exceed either two million gallons per day or eighty per cent of the available
8 capacity for that system per day .
247.222. A public water supply district shall develop a service tariff schedule
2 applicable to customers r easonably pr ojected to exceed either two million gallons per
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.
3 day or eighty perc ent of the available capacity for that system per day . The tariff
4 schedule shall ensure that customers' rates r easonably ref lect the repr esentative shar e of
5 the costs incurr ed to serve the customers and pr event other customer classes' rates fr om
6 r eflecting unjust or unrea sonable costs arising fr om service to customers with either two
7 million gallons per day or eighty per cent of the available capacity for that system per
8 day .
393.403. A water corporation shall enter into a commission-appr oved contract
2 with customers whose water usage is rea sonably pr ojected to exceed either two million
3 gallons per day or eighty of the available capacity for that system per day . The contract
4 shall re asonably ref lect the customer ’ s rep res entative share of costs incurr ed to serve
5 the customer and pr event other customer classes' rates from ref lecting any unjust or
6 unr easonable costs arising fr om service to such customer . The water corporation shall
7 submit such contracts for appr oval by the commission.
393.1780. 1. As used in this section, the term "large-load customer" shall mean:
2 (1) For an electrical prov ider with mor e than two hundred fifty thousand
3 customers, any electrical customer with an annual peak demand of one hundr ed
4 megawatts or mor e; and
5 (2) For an electrical pr ovider with two hundred fifty thousand customers or
6 fewer , any electrical customer with an annual peak demand of mor e than fifty
7 megawatts but less than one hundr ed megawatts.
8 2. All electric pr oviders shall establish a load-shedding plan with each large-load
9 customer for the protect ion or res toration of system operations. Load-shedding plans
10 shall prioritize continuation of service for critical facilities and res idential services.
394.080. 1. A cooperative shall have power:
2 (1) T o sue and be sued, in its corporate name;
3 (2) T o have succession by its corporate name for the period stated in its articles of
4 incorporation or , if no period is stated in its articles of incorporation, to have such succession
5 perpetually;
6 (3) T o adopt a corporate seal and alter the same at pleasure;
7 (4) Except as provided in section 386.800, to generate, manufacture, purchase,
8 acquire, accumulate and transmit electric ener gy , and to distribute, sell, supply , and dispose of
9 electric ener gy in rural areas to its members, to governmental agencies and political
10 subdivisions, and to other persons not in excess of ten percent of the number of its members;
11 provided, however , that where a cooperative has been transmitting, distributing, selling,
12 supplying or disposing of electric ener gy in a rural area which, by reason of increase in its
13 population, its inclusion in a city , town or village, or by reason of any other circumstance
14 ceases to be a rural area, such cooperative shall have the power to continue to transmit,
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15 distribute, sell, supply or dispose of electric ener gy therein until such time as the municipality ,
16 or the holder of a franchise to furnish electric ener gy in such municipality , may purchase the
17 physical property of such cooperative located within the boundaries of the municipality ,
18 pursuant to law , or until such time as the municipality may grant a franchise in the manner
19 provided by law to a privately owned public utility to distribute electric power within the
20 municipality and such privately owned public utility shall purchase the physical property of
21 such cooperative located within the boundaries of the municipality . In case any of the parties
22 to such purchase, as herein provided, cannot agree upon the fair and reasonable price to be
23 paid for the physical property of such cooperative within the municipality , or if either party
24 refuses to negotiate for the sale of such property upon the request of the other , the fair and
25 reasonable value of such property for such purchase shall be fixed by the public service
26 commission upon application of any one or more of the interested parties;
27 (5) T o make loans to persons to whom electric ener gy is or will be supplied by the
28 cooperative for the purpose of, and otherwise to assist such persons in, wiring their premises
29 and installing therein electric and plumbing fixtures, appliances, apparatus and equipment of
30 any and all kinds and character , and in connection therewith, to purchase, acquire, lease, sell,
31 distribute, install and repair such electric and plumbing fixtures, appliances, apparatus and
32 equipment, and to accept or otherwise acquire, and to sell, assign, transfer , endorse, pledge,
33 hypothecate and otherwise dispose of notes, bonds and other evidences of indebtedness and
34 any and all types of security therefor;
35 (6) T o make loans to persons to whom electric ener gy is or will be supplied by the
36 cooperative for the purpose of, and otherwise to assist such persons in, constructing,
37 maintaining and operating electric refrigeration plants;
38 (7) T o construct, purchase, take, receive, lease as lessee, or otherwise acquire, and to
39 own, hold, use, equip, maintain, and operate, and to sell, assign, transfer , convey , exchange,
40 lease as lessor , mortgage, pledge, or otherwise dispose of or encumber , electric transmission
41 and distribution lines or systems, electric generating plants, electric refrigeration plants, lands,
42 buildings, structures, dams, plants and equipment, and any and all kinds and classes of real or
43 personal property whatsoever , which shall be deemed necessary , convenient or appropriate to
44 accomplish the purpose for which the cooperative is or ganized. For the purposes of this
45 section, "electric transmission and distribution lines or systems" includes, but is not limited
46 to, cooperative-owned or cooperative subsidiary-owned copper and fiber optic cable, facilities
47 and technology , or any combination thereof, that carries, or has the capacity to carry , light
48 signals and data beyond or in addition to the light signals and data necessary for the
49 transmission and distribution of electricity;
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50 (8) T o purchase or otherwise acquire, and to own, hold, use and exercise and to sell,
51 assign, transfer , convey , mortgage, pledge, hypothecate, or otherwise dispose of or encumber ,
52 franchises, rights, privileges, licenses, rights-of-way and easements;
53 (9) T o borrow money and otherwise contract indebtedness, and to issue notes, bonds,
54 and other evidences of indebtedness therefor , and to secure the payment thereof by mortgage,
55 pledge, deed of trust, or any other encumbrance upon any or all of its then-owned or after -
56 acquired real or personal property , assets, franchises, revenues or income;
57 (10) T o construct, maintain and operate electric transmission and distribution lines
58 along, upon, under and across all public thoroughfares, including without limitation, all roads,
59 highways, streets, alleys, bridges and causeways, and upon, under and across all publicly
60 owned lands, subject, however , to the requirements in respect of the use of such thoroughfares
61 and lands that are imposed by the respective authorities having jurisdiction thereof upon
62 corporations constructing or operating electric transmission and distribution lines or systems;
63 (1 1) T o exercise the power of eminent domain in the manner provided by the laws of
64 this state for the exercise of that power by corporations constructing or operating electric
65 transmission and distribution lines or systems. If a property owner prevails against a rural
66 electric cooperative or a cooperative subsidiary in a suit in trespass or in inverse
67 condemnation filed after August 28, 2018, the trespass shall be deemed permanent and the
68 actual damages awarded shall be the fair market value, which, notwithstanding any other
69 provision of law , shall always be greater than zero, as defined and calculated in subdivision
70 (1) of section 523.001 and determined in accordance with section 523.039. In no case filed
71 after August 28, 2018, may evidence of revenues or profits derived, nor the rental value of an
72 assembled communications corridor , be admissible in determining fair market value. Such
73 actual damages shall be fixed at the time of the initial trespass, shall not be deemed to
74 continue, accumulate, or accrue, and upon payment of damages the defendant shall be granted
75 a permanent easement for the trespass litigated. If a property owner prevails in such suits,
76 punitive damages may be assessed and the property owner may be awarded additional
77 compensation for any physical damages to the property directly resulting from the trespass, if
78 any , and reasonable attorneys' fees, costs, and expenses consistent with subsection 4 of
79 section 523.283;
80 (12) T o conduct its business and exercise any or all of its powers within or without
81 this state;
82 (13) T o adopt, amend and repeal bylaws; and
83 (14) T o do and perform any and all other acts and things, and to have and exercise any
84 and all other powers which may be necessary , convenient or appropriate to accomplish the
85 purpose for which the cooperative is or ganized.
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86 2. In addition to all other powers granted in this section, rural electric cooperatives
87 shall have the power to supply electric ener gy at retail after August 28, 1989, in cities, towns
88 and villages having a population in excess of fifteen hundred inhabitants under the following
89 conditions:
90 (1) The cooperative was the predominant supplier of retail electric ener gy within the
91 city , town or village at the time any of ficial United States Census Bureau Decennial Census
92 Report declares the population of such city , town or village to be in excess of fifteen hundred
93 inhabitants;
94 (2) The city , town or village has granted to the cooperative a franchise to supply
95 electric ener gy within the city , town or village.
96 3. In addition, the cooperative shall provide, concurrent with its application to the
97 city , town or village for its initial franchise, written notice of its franchise application to all
98 other providers of electric ener gy at retail operating within such city , town or village.
99 4. The provisions of subsections 2 and 3 of this section shall in no way af fect or
100 diminish the rights and duties of any city , town or village to grant franchises to electric
101 suppliers in the manner provided by law or of any electrical corporation authorized by law to
102 provide electric service at retail within such city , town or village.
103 5. Notwithstanding the provisions of subsection 2 of this section, after a public
104 hearing upon a complaint, the public service commission may order that service be provided
105 by another supplier if it finds that service from another supplier of electricity is in the public
106 interest for a reason other than rate dif ferential. Nothing in this section shall be construed as
107 conferring upon the public service commission jurisdiction over the rates, financing,
108 accounting or management of any electric cooperative.
109 6. The powers conferred upon rural electric cooperatives under this section and
110 section 394.085 shall be subject to the provisions of section 416.031.
111 7. A cooperative shall develop a service tariff schedule applicable to customers
112 r easonably pro jected to have an annual peak demand of fifty megawatts or mor e. The
113 tariff schedule shall ensure that customers' rates reas onably ref lect the repr esentative
114 shar e of the costs incurr ed to serve the customers and prev ent other customer classes'
115 rates fr om ref lecting unjust or unr easonable costs arising from service to customers
116 with an annual peak demand of fifty megawatts or mor e.
640.640. 1. For the purposes of this section, the following terms mean:
2 (1) "Applicant", any person applying for a major industrial water -user permit;
3 (2) "Beneficial uses", water uses that include, but ar e not limited to, domestic,
4 agricultural, industrial, recr eational, and other legitimate beneficial uses;
5 (3) "Department", the Missouri department of natural res ources;
6 (4) "Dir ector", the dir ector of the department of natural res our ces;
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7 (5) "Major industrial water user permit", a permit issued by the department
8 granting the withdrawal of water fr om a water re source in the amount of two million
9 gallons or mor e per day;
10 (6) "Person", any individual, partnership, copartnership, firm, company , public
11 or private corporation, association, joint stock company , trust, estate, political
12 subdivision, water district, or any agency , board, department, or bur eau of the
13 federal or any state government, or any other legal entity that is recog nized by law as
14 the subject of rights and duties;
15 (7) "W ater res ources" , any Missouri water source occurring on the surface, in
16 natural or artificial channels, lakes, re servoirs, or impoundments, or in subsurface
17 aquifers that are available or that may be made available.
18 2. In order to pr otect the access, use, and enjoyment of Missouri's water
19 r esources , it shall be unlawful for any person to withdraw and use mor e than two
20 million gallons of water per day on average in a single month unless such person holds a
21 major industrial water user permit issued by the department, is a public water system
22 as defined in section 640.102, or such water is used for agricultural purposes.
23 3. The dir ector shall revie w each major industrial water user permit application
24 and all supporting materials to ensur e all the following conditions have been met prior
25 to appr oving a major industrial water user permit application:
26 (1) Ther e are water res our ces available in the volumes and withdrawal rates
27 r equested by the applicant;
28 (2) The volume and withdrawal rates r equested by the applicant shall not exceed
29 eighty per cent of the capacity of the water res ource;
30 (3) The volume and withdrawal rates requ ested by the applicant shall not
31 interfer e with existing and pr ojected in-state beneficial uses; and
32 (4) The applicant has demonstrated that water in the amounts and rates
33 r equested can feasibly be withdrawn.
34 4. Whenever a person applies for a major industrial water user permit or major
35 industrial water user permit rene wal, the department shall send a written notice to the
36 county commission of the county wher e the water re source is located within thirty
37 business days after r eceiving the permit application.
38 5. (1) W ithin one hundred twenty days after the recei pt of a complete
39 application, the dir ector shall determine whether the applicant complied with the
40 pr ovisions of subsection 3 of this section. The director shall, after making such
41 determination, hold a thirty-day public comment period reg arding the director's
42 determination. W ithin sixty days after the comment period, the dir ector shall appr ove
43 or deny the permit.
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44 (2) T o renew a valid major industrial water user permit, an applicant shall file a
45 r enewal application for a major industrial water user permit with the department no
46 later than two hundr ed seventy-one days prior to the expiration of the existing permit.
47 The applicant and dir ector shall follow the same pro cedur es and timelines as r equir ed
48 for the issuance of a new major industrial water user permit under this section. The
49 dir ector may impose additional conditions to addr ess any substantial or material change
50 in factors under subsection 3 of this section or may deny a r enewal application as
51 necessary to comply with this section based on any such substantial or material changes
52 in factors under subsection 3 of this section. If the dir ector is in the process of r eviewing
53 the renewa l application before the final decision is made and the existing applicant's
54 major industrial water user permit expir es, such applicant shall be able to operate
55 under the terms of the expir ed permit until a final decision is made by the dir ector on
56 the renew al of such permit.
57 (3) In the absence of an appeal as pr ovided under chapter 536, the decision of the
58 dir ector shall be final.
59 6. A major industrial water user permit shall be in effect for five years fr om the
60 date of issuance. The permit holder shall annually repor t the water use volumes and
61 withdrawal rates to the department in a manner and on timelines determined by the
62 department. Such rep ort shall be made available to the public on the department's
63 website.
64 7. The major industrial water user permit may be appr oved in whole or in part
65 by the direc tor .
66 8. Any other major water user , as defined in section 256.400, may request the
67 department to r eevaluate any existing major industrial water user permit using the
68 criteria under subsection 3 of this section. The department shall crea te a mechanism for
69 a major water user to submit a req uest for reev aluation and shall pr ovide the major
70 water user with the director's findings within one hundred twenty days of the req uest
71 for reev aluation. After ree valuating the permit, the dir ector shall impose additional
72 conditions necessary for the continued withdrawal if the director determines that the
73 existing permit is negatively impacting the req uesting major water user's beneficial use
74 of his or her water r esources . The dir ector's decision to modify or to decline to modify
75 the conditions in an existing permit pursuant to this subsection shall be subject to
76 appr oval by the commission.
77 9. If the attorney general r eceives a complaint that provi sions of this section have
78 been violated, or at the requ est of the department, the attorney general shall bring an
79 injunctive action or other appr opriate action in the name of the people of the state to
80 enfor ce provi sions of this section. Suit may be br ought in Cole County , or in any county
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81 wher e the defendant's principal place of business is located or wher e the withdrawal of
82 water occurr ed in violation of this section. Any member of the commission deemed to
83 have violated any pr ovision of this section shall forfeit their office upon such finding of a
84 violation.
85 10. Whenever a state of emergency is declar ed by the governor under section
86 44.100 for all or any part of the state based on dr ought conditions, the department shall
87 r eevaluate any existing major industrial water user permit. Any r eevaluation
88 completed under this section shall use the criteria under subsection 3 of this section.
89 After ree valuation of the permit is complete, the department shall have the authority to
90 impose additional conditions or r evoke the permit if necessary for the continued
91 withdrawal of water if the dir ector determines that the existing permit negatively
92 impacts beneficial use of water res our ces.
93 1 1. If any pr ovision of subsection 3 of this section or the application ther eof to
94 anyone or to any circ umstance is held invalid, the r emainder of those sections and the
95 application of such pr ovisions to others or other cir cumstances shall not be affected
96 ther eby .
✔
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