Creates new provisions for utilities

SECOND REGULAR SESSION
HOUSE BILL NO. 3530
103RD GENERAL ASSEMBL Y
INTRODUCED BY REPRESENT A TIVE DA VIDSON.
7483H.01I JOSEPH ENGLER, Chief Clerk
AN ACT
T o amend chapter 386, RSMo, by adding thereto three new sections relating to utilities, with
penalty provisions.
Be it enacted by the General Assembly of the state of Missouri, as follows:
Section A. Chapter 386, RSMo, is amended by adding thereto three new sections, to
2 be known as sections 386.990, 386.993, and 386.996, to read as follows:
386.990. 1. This section shall be known and may be cited as the "Missouri Home
2 Battery and Grid Resilience Act".
3 2. As used in this section and section 386.993, the following terms mean:
4 (1) "Aggre gator", an entity that control s or coordinates multiple distributed
5 energy storage systems for grid services participation;
6 (2) "Battery energy storage system", an electr ochemical device with a minimum
7 usable capacity of ten kilowatts, capable of discharging electrical energy on demand,
8 and compliant with applicable standards of Underwriters Laboratories, the Institute of
9 Electrical and Electr onics Engineers, the National Electrical Code, and the National
10 Electrical Safety Code;
11 (3) "Commission", the Missouri public service commission;
12 (4) "Grid services", capacity , demand res ponse, or ancillary services pr ovided
13 by distributed energy r esources to a utility or transmission operator;
14 (5) "Utility", any electrical corporation as defined in section 386.020.
15 3. Each electrical corporation shall, within ninety days after the effective date of
16 this section, file with the commission a "Residential Battery and Grid Resilience
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 Pr ogram". The commission shall appr ove the application, subject to compliance with
18 the pro visions of this section. Each pr ogram shall:
19 (1) Pr ovide customer incentives for installation of eligible battery energy storage
20 systems located behind the customer meter;
21 (2) Require enrol lment of each such system in a utility-appr oved grid services
22 tariff for a minimum term of five years; and
23 (3) Allow ownership of the battery energy storage system by the customer , a
24 third-party lessor , or an appr oved aggreg ator .
25 4. Each participating utility shall offer:
26 (1) An up-fr ont installation rebate of five hundr ed dollars per kilowatt-hour of
27 usable battery capacity installed, not to exceed thirty kilowatt-hours per r esidence; and
28 (2) Performance payments consisting of:
29 (a) A capacity payment between two hundred twenty-five dollars and thr ee
30 hundr ed dollars per kilowatt of committed discharge power per summer season; and
31 (b) An energy payment between twenty-five cents and sixty cents per kilowatt-
32 hour of energy deliver ed during called events.
33 5. Up-fr ont and performance incentives under this section may be paid to the
34 customer , the appr oved installer , the third-party owner or lessor , or the aggr egator ,
35 depending on the ownership structur e of the battery energy storage system. A
36 minimum twenty percen t state-of-charge r eserve shall be maintained for customer
37 backup during dispatch events. Incentive payments shall be made upon verification of
38 installation and enrol lment in the grid services tariff.
39 6. All prudently incurr ed progr am costs including, but not limited to, reb ates,
40 performance payments, pro gram administration costs and measur ement and
4 1 verification costs, shall be r ecorded to a reg ulatory asset on the utility’ s books and
42 shall be r ecoverable thr ough an amortization of the regul atory asset balance in each of
43 the utility’ s general rate proceed ings over a reas onable period of time as determined by
44 the commission. The commission shall ensur e that:
45 (1) Pr ogram costs ar e offset by verified avoided-capacity , energy , and
46 transmission savings;
47 (2) Utilities may earn a performance incentive for net savings associated with
48 obtaining accr edited capacity; and
49 (3) Low-income customers are not unduly burdened by cost recovery .
50 7. Utilities may utilize federal funds, grants, or private contributions to cover
51 incentives, progra m administration, or measur ement and verification costs. General
52 r evenue or taxpayer funds shall not be r equir ed to implement this section.
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53 8. Utilities shall verify available capacity and dispatched energy thr ough interval
54 metering or certified telemetry . Each utility shall file an annual repo rt with the
55 commission summarizing systems installed, total capacity enr olled, program
5 6 expenditur es, cost-effectiveness, and aggr egate peak load red uctions achieved.
57 9. The commission may promul gate rules necessary to implement this section,
58 including eligibility standards, aggre gator re gistration, and consumer -pr otection
59 pr ovisions. Any rule or portion of a rule, as that term is defined in section 536.010,
60 that is cre ated under the authority delegated in this section shall become effective only if
61 it complies with and is subject to all of the pro visions of chapter 536 and, if applicable,
62 section 536.028. This section and chapter 536 are nonseverable and if any of the powers
63 vested with the general assembly pursuant to chapter 536 to revi ew , to delay the
64 effective date, or to disappr ove and annul a rule are subsequently held unconstitutional,
65 then the grant of rulemaking authority and any rule pro posed or adopted after August
66 28, 2026, shall be invalid and void.
386.993. 1. Residential customers participating in a pro gram authorized under
2 section 386.990 shall be entitled to the following rights and pr otections:
3 (1) The installer , lessor , or aggr egator shall pr ovide the customer with a written
4 disclosur e of all terms befor e installation containing:
5 (a) The total installed capacity and expected energy performance of the system;
6 (b) All payments or incentives to be made by the utility or other entities;
7 (c) The ownership structure of the equipment;
8 (d) The duration of participation and any early-termination conditions; and
9 (e) Contact information for the utility and the progra m administrator for
10 inquiries or complaints;
11 (2) No installer , lessor , or aggr egator shall make false, deceptive, or misleading
12 r epresent ations r egarding energy savings, incentive values, or ownership;
13 (3) A re sidential customer may res cind any participation, lease, or pur chase
14 agr eement within thr ee business days of execution without penalty or obligation;
15 (4) A third-party owner or aggr egator shall maintain the system in safe
16 operating condition consistent with manufactur er specifications and the National
17 Electrical Safety Code;
18 (5) All contracts shall clearly state whether the agreement is transferable upon
19 sale of the home and describe any conditions for transfer; and
20 (6) Each third-party owner or aggr egator shall maintain general liability
21 insurance of not less than five hundred thousand dollars per occurr ence covering
22 installation and operation activities.
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386.996. 1. The commission, in consultation with the energy division of the
2 department of natural res ources, shall establish and administer a statewide licensing
3 pr ogram for solar and energy storage contractors operating within the state of Missouri.
4 2. Any person applying for a license under the prov isions of this section shall
5 complete an application cr eated by the commission and the department. The
6 application shall r equir e, at a minimum:
7 (1) Pr oof of regi stration as a Missouri business entity in good standing with the
8 secr etary of state;
9 (2) Pr oof of general liability insurance of not less than five hundred thousand
10 dollars per occurr ence and curren t workers’ compensation coverage;
11 (3) Designated qualifying individual holding one of the following cred entials:
12 (a) North American Board of Certified Energy Practitioners (NABCEP)
13 Photovoltaic Installation Pr ofessional or Energy Storage Pr ofessional certification;
14 (b) Missouri electrical contractor license or state-r ecognized engineer ’ s license in
15 electrical or ren ewable energy; or
16 (c) Has been actively engaged in the solar contracting or installation business in
17 the state of Missouri for at least five consecutive years;
18 (4) Completed background check confirming no felony fraud or consumer
19 pr otection convictions within the past ten years;
20 (5) Pr oof of completion of a PSC-appr oved solar contractor compliance course
21 covering consumer disclosures and cancellation rights, net metering and interconn ection
22 standards, building and electrical code compliance, and APP+ permitting; and
23 (6) Payment of a licensing fee of five hundr ed dollars for initial licensing and two
24 hundr ed fifty dollars for biennial r enewal.
25 3. The commission, in coordination with the energy division of the department of
26 natural res ources, shall maintain a public online r egistry of all licensed solar and energy
27 storage contractors including, but not limited to, license type, business addr ess, and
28 curr ent standing.
29 4. License holders under this section shall comply with the following
30 r equir ements:
31 (1) Advertising and marketing materials shall disclose company name, license
32 number , and ownership structur e. False or misleading claims regard ing incentives,
33 savings, or ownership are proh ibited;
34 (2) Salespersons shall be dir ectly employed by , or contractually affiliated with, a
35 licensed solar or energy storage contractor;
36 (3) Contractors may collect a reas onable deposit at the time of contract
37 execution, pro vided that the contract clearly states the deposit amount and r efund
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38 conditions; and if the customer exer cises the thr ee-day right to cancel under section
39 386.993, the contractor shall r efund the full deposit within ten business days of receivi ng
40 notice of cancellation. All contracts shall honor the thr ee-day cancellation right and
41 fully disclose payment milestones, financing terms, and completion timelines;
42 (4) All electrical work shall be performed or supervised by a licensed electrician.
43 Installations shall meet the National Electrical Code, Underwriters Labortories
44 Standards & Engagement, and local building and fir e code standards;
45 (5) Contractors shall comply with the ten-day re sidential and thirty-day
46 commer cial interc onnection appr oval timelines and utilize the APP+ or equivalent
47 platform once adopted;
48 (6) Contractors shall pro vide a minimum ten-year workmanship warranty and
49 ensur e customer access to monitoring and warranty services;
50 (7) Contractors shall maintain all pr oject r ecords, including permits,
5 1 inter connection appr ovals, and inspection rep orts, for seven years and make such
52 r ecords available to the commission upon request .
53
54 The commission may suspend, fine, or revo ke licenses for fraudulent or deceptive
55 practices, unsafe installations, or failur e to comply with this section. Fines may not
56 exceed five thousand dollars per violation, plus r estitution to affected customers.
57 5. Contractors holding active NABCEP certification and operating in Missouri
58 prior to enactment of this section may r eceive pro visional licensing within one hundr ed
59 eighty days. Out-of-state firms may apply for r ecipr ocal licensing if holding equivalent
60 cr edentials and experience.
61 6. The commission shall promul gate rules to implement this section within one
62 hundr ed eighty days of enactment. Any rule or portion of a rule, as that term is defined
63 in section 536.010, that is creat ed under the authority delegated in this section shall
64 become effective only if it complies with and is subject to all of the provi sions of chapter
65 536 and, if applicable, section 536.028. This section and chapter 536 are nonseverable
66 and if any of the powers vested with the general assembly pursuant to chapter 536 to
67 r eview , to delay the effective date, or to disappr ove and annul a rule are subsequently
68 held unconstitutional, then the grant of rulemaking authority and any rule pr oposed or
69 adopted after August 28, 2026, shall be invalid and void.
✔
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