Modifies and creates new provisions relating to electric utilities

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Official Summary Text

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Senate Substitute

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SS/SB 879 - The act creates and modifies provisions relating to electric utilities.

POLITICAL SUBDIVISIONS (Section 67.5360)
The act provides that the governing body of any political subdivision shall not approve a plan relating to the development of the political subdivision with a developer whose more than half of the solar panels or the solar panel components are manufactured or sourced by an individual or government identified as a foreign adversary.

TAXATION OF SOLAR ENERGY PROJECTS (Sections 137.100, 137.124, 153.030, & 153.034)
The act repeals a provision exempting solar energy systems not held for resale from taxation. (Section 137.100)

Beginning January 1, 2027, for purposes of assessing all real property, excluding land, or tangible personal property associated with a project that uses solar energy directly to generate electricity and that was built or constructed to sell power, the tax liability actually owed shall be equal to specific amounts, as described in the act, as annually adjusted for inflation.

These provisions shall not be construed to affect any existing enhanced enterprise zone agreements or similar tax abatement agreements with state or local officials entered into prior to August 28, 2026. After August 28, 2026, solar energy projects shall not be permissible under enterprise zones or similar tax abatements.

Beginning January 1, 2027, for purposes of assessing land that is associated with a solar energy project, the land shall be assessed as commercial property. (Section 137.124)

Beginning January 1, 2027, for any public utility that has a solar energy project, such solar energy project shall be assessed using certain methodology for real and personal property as described in the act. (Section 153.030)

The real and tangible personal property associated with a project which uses solar energy shall include certain solar equipment as described in the act. (Section 153.034)

These provisions are similar to SB 892 (2024), HB 2651 (2024), SB 549 (2023), SB 1014 (2022) and HB 1997 (2022), and provisions in SB 213 (2025), a provision in HCS#2/HBs 440 & 1160 (2025).

THE CONSTRUCTION OF SOLAR FARMS REGULATED BY THE PUBLIC SERVICE COMMISSION (Section 393.2040)
The act provides that these provisions shall apply only to a solar farm that is owned or operated by an electrical corporation under the jurisdiction of the Public Service Commission. These provisions shall not apply to solar farms owned or operated by not-for-profit electrical corporations.

Prior to the construction of a solar farm in the state, the Commission shall require that each electrical corporation shall submit a certificate of convenience and necessity ("CCN") application to the Commission with a construction plan for the solar farm. The construction plan requirements are described in the act, including boundary requirements between the solar farm and private or public properties, landscaping requirements, noise requirements, sign requirements, and fencing requirements.

An applicant shall maintain a solar farm until decommissioning, as described in the act. An owner or operator shall decommission and remove the solar farm when the solar farm is at the end of its useful life, as described in the act.

The Commission shall require that, prior to the construction of a solar farm, an owner or operator of the solar farm shall submit to the Commission a preliminary decommissioning plan. Requirements of the plan are described in the act. At least one year prior to the cessation of operation of a solar farm or in the case of a solar farm ceasing operation due to an unexpected event, as described in the act, the owner or operator shall submit a final decommissioning plan, as described in the act.

Requirements for the disposition of solar panels are described in the act.

An electrical corporation intending to make a material amendment after it has obtained a CCN for the construction of a solar farm shall submit a new application to amend the CCN.

The Commission shall require any applicant who is issued a CCN for the construction of a solar farm to obtain liability insurance in an amount sufficient to cover reasonable expected damages which may arise from the construction of the solar farm.

An applicant applying for a CCN under the act shall be required to pay a fee as described in the act.

For purposes of enforcing compliance with the construction requirements under the act, all owners or operators of solar farms in the state shall be subject to the procedures before the Commission. For any violation, complaints may be submitted to the Commission pursuant to the provisions of current law.

On or before January 1, 2027, the Commission shall provide a report about the specifics of solar farms in the state, as described in the act.

Beginning August 28, 2026, a solar farm for which certain economic incentive agreements are not in place shall not be eligible for any economic incentives or any tax exemptions.

These provisions have an emergency clause.

CONDEMNATION OF PROPERTY (Section 523.010)
Under the act, the authority of any electrical corporation to condemn property shall not extend to the construction of any structure or facility that uses wind or solar energy to generate or manufacture electricity.

The authority of any electrical corporation to condemn property shall extend to acquisition of rights needed to construct, operate, and maintain certain electrical infrastructure, described in the act, needed to collect and deliver solar or wind energy to the distribution or transmission grid.

This provision is identical to SB 199 (2025), a provision in SB 214 (2025), SB 1262 (2024), to a provision in SB 805 (2024), a provision in HB 1449 (2024), a provision in SCS/HCS/HB 1746 (2024), provisions in HB 1052 (2023) and substantially similar to a provision in HB 221 (2025), a provision in HCS#2/HBs 440 & 1160 (2025), HB 475 (2025), a provision in SB 139 (2025), HB 1750 (2024), and SB 577 (2023).

THE CONSTRUCTION OF SOLAR FARMS REGULATED BY THE DEPARTMENT OF NATURAL RESOURCES (Section 640.1050)
The act provides that these provisions shall apply only to a solar farm that is not owned or operated by an electrical corporation under the jurisdiction of the Public Service Commission and on which the construction has not commenced as of December 31, 2026. The Department of Natural Resources shall require an application with a construction plan for a permit for the construction of a solar farm to be obtained from the Department prior to the construction of the solar farm. The construction plan requirements are described in the act, including boundary requirements between the solar farm and private or public properties, landscaping requirements, noise requirements, sign requirements, and fencing requirements.

An applicant shall maintain a solar farm until decommissioning, as described in the act. An owner or operator shall decommission and remove the solar farm when the solar farm is at the end of its useful life, as described in the act.

Prior to the construction of a solar farm, an owner or operator of the solar farm shall submit a preliminary decommissioning plan to the Department. Requirements of the decommissioning plan are described in the act. At least one year prior to the cessation of operation of a solar farm or in the case of a solar farm ceasing operation due to an unexpected event, as described in the act, the owner or operator shall submit a final decommissioning plan, as described in the act.

Requirements for the disposition of solar panels are described in the act.

Within 90 days of receiving an application for the construction of a solar farm, the Department shall hold a public hearing before issuing a permit. The Department shall provide notice at least 14 days prior to the public hearing. At the public hearing, an applicant and the Department shall provide certain information in writing, as described in the act.

No later than 90 days after the public hearing, the Department shall issue a permit, issue a permit limiting the boundaries of the proposed solar farm, or deny the permit.

An applicant that intends to make a material amendment after the permit is issued by the Department shall submit a new application for the permit to the Department.

The Department shall require any applicant who is issued a permit for the construction of a solar farm to obtain liability insurance in an amount sufficient to cover reasonable expected damages which may arise from the construction of the solar farm.

If an owner or operator of a solar farm that is not an electrical corporation under the jurisdiction of the Public Service Commission sells or transfers the solar farm to an entity that is an electrical corporation, the transferee shall certify in writing to the Department that the transferee shall comply with the construction requirements of a solar farm regulated by the Commission.

An applicant applying for a permit shall be required to pay a fee as described in the act.

On or before January 1, 2027, the Commission shall provide a report about the specifics of solar farms in the state, as described in the act.

Beginning August 28, 2026, a solar farm for which certain economic incentive agreements are not in place, shall not be eligible for any economic incentives or any tax exemptions.

These provisions have an emergency clause.
JULIA SHEVELEVA

Introduced

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SB 879 - The act creates and modifies provisions relating to electric utilities.

PERMIT FOR THE CONSTRUCTION OF SOLAR FARMS (Section 67.5350)
Under the act, prior to obtaining a certificate of public convenience or necessity from the Public Service Commission, any person constructing a solar farm shall first submit an application to the county commission in each county where the solar farm is to be located.

The county commission of any county shall adopt an order or an ordinance requiring a permit to construct a solar farm within specified boundaries in an unincorporated area within the county. The permit shall be constructed within specific distances from certain properties described in the act. The permit shall require noise levels not to exceed 45 decibels from any property line.

Within 90 days of receiving an application for a permit, the county commission shall hold a public meeting before the issuance of a permit. Notice shall be provided at least 14 days prior to the public meeting. The applicant shall provide certain information at the public meeting as described in the act.

No later than 90 days after the public meeting, the county commission shall do the following:
- Issue a permit;
- Issue a permit limiting the boundaries of the proposed solar farm; or
- Deny the permit.

Any applicant intending to make a material amendment to the permit once it is issued shall submit a new application for the permit to the county commission. The county commission shall require any applicant who is issued a permit to obtain liability insurance in an amount sufficient to cover any damages which may arise from the construction of the solar farm.

The Public Service Commission shall not issue a certificate of public convenience or necessity to any applicant who did not receive a permit from a county commission in each county where the solar farm is to be located.

The county commission of any county where a solar farm is proposed to be constructed shall require a decommissioning plan of the solar farm, as described in the act.

This provision has an emergency clause.

These provisions are similar to provisions in SB 213 (2025) and SB 892 (2024).

TAXATION OF SOLAR ENERGY PROJECTS (Section 137.100, 137.124, 153.030, & 153.034)
Current law exempts solar energy systems not held for resale from property taxes. This act repeals such provision and provides that solar energy systems constructed for exclusive use of a single property may be exempted from property tax at the discretion of the county assessor.

Beginning January 1, 2027, for purposes of assessing all real property, excluding land, or tangible personal property associated with a project that uses solar energy directly to generate electricity and that was built or constructed to sell power, the tax liability actually owed shall be equal to $6,000 per megawatt of nameplate capacity and shall be adjusted for inflation annually.

Nothing in this provision shall be construed to prohibit a project from engaging in enhanced enterprise zone agreements or similar tax abatement agreements or to affect any existing enhanced enterprise zone agreements.

Beginning January 1, 2027, for purposes of assessing land that is associated with a solar energy project, the land shall be assessed as commercial property.

Beginning January 1, 2027, for any public utility that has a solar energy project, such solar energy project shall be assessed using certain methodology for real and personal property as described in the act.

The real and tangible personal property associated with a project which uses solar energy shall include certain solar equipment as described in the act.

These provisions are identical to SB 892 (2024), HB 2651 (2024), SB 549 (2023), SB 1014 (2022) and HB 1997 (2022), and similar to provisions in SB 213 (2025), a provision in HCS#2/HBs 440 & 1160 (2025).

COMMISSION'S RULEMAKING AUTHORITY RELATING TO THE CONSTRUCTION OF ELECTRIC TRANSMISSION LINES ON AGRICULTURAL LAND (Section 393.172)
By March 31, 2027, the Public Service Commission shall promulgate rules applicable to electrical corporations requiring construction of electric transmission lines for which permission is sought from the Commission to adhere to specific standards relating to construction activities occurring on privately owned agricultural land. Such standards are described in the act.

This provision is identical to a provision in SB 213 (2025), SB 892 (2024), and similar to a provision in HB 221 (2025), a provision in SB 139 (2025), a provision in SB 805 (2024).

SOLAR PROJECTS NOT TO EXCEED MORE THAN 2% OF ALL CROPLAND (Section 393.1120)
The total amount of real property associated with all solar energy projects in any county shall not be more than 2% of all cropland in the county.

The county commission or other authorized governing body may increase the percentage of cropland by order, ordinance, regulation, or vote of the residents of the county.

Any resident of the county shall have standing to bring suit to enforce these provisions against a solar energy project developer.

For all solar energy projects built on or after January 1, 2027, such project shall be subject to setback distances, as described in the act. This provision shall not apply to solar projects built and operating at capacity on or before December 31, 2026.

A solar energy company shall secure all property rights or easements necessary for transmission and interconnection for the solar energy project to connect to the electrical grid prior to beginning construction of the solar energy project.

This provision is similar to a provision in HB 440 (2025).

CONDEMNATION OF PROPERTY (Section 523.010)
Under the act, the authority of any electrical corporation to condemn property shall not extend to the construction of any structure or facility that uses wind or solar energy to generate or manufacture electricity.

The authority of any electrical corporation to condemn property shall extend to acquisition of rights needed to construct, operate, and maintain certain electrical infrastructure, described in the act, needed to collect and deliver solar or wind energy to the distribution or transmission grid.

This provision is identical to SB 199 (2025), a provision in SB 214 (2025), SB 1262 (2024), to a provision in SB 805 (2024), a provision in HB 1449 (2024), a provision in SCS/HCS/HB 1746 (2024), provisions in HB 1052 (2023) and substantially similar to a provision in HB 221 (2025), a provision in HCS#2/HBs 440 & 1160 (2025), HB 475 (2025), a provision in SB 139 (2025), HB 1750 (2024), and SB 577 (2023).
JULIA SHEVELEVA