SB 838 — Modifies certain provisions relating to the means of energy production

Such fees and charges shall be limited to the amounts required to pay the costs of the authority, including operating and administrative expenses, and reasonable allowance for losses which may be incurred;

(19) To enter into agreements or other transactions with any federal or state agency, any person and any SS SCS SB 838 6 domestic or foreign partnership, corporation, association, or organization to carry out the provisions of sections 260.005 to 260.125;

(20) To sell, at public or private sale, any mortgage and any real or personal property subject to that mortgage, negotiable instrument, or obligation securing any loan;

(21) To procure insurance against any loss in connection with its property in such amounts, and from such insurers, as may be necessary or desirable;

(22) To consent to the modification of the rate of interest, time of payment for any installment of principal or interest, or any other terms, of any loan, loan commitment, temporary loan, contract, or agreement made directly by the authority;

(23) To make and publish rules and regulations concerning its lending, insurance of loans, and temporary lending to defray development costs, along with such other rules and regulations as are necessary to effectuate its purposes.

No rule or portion of a rule promulgated under the authority of sections 260.005 to 260.125 shall become effective unless it has been promulgated pursuant to the provisions of section 536.024;

(24) To borrow money to carry out and effectuate its purpose in the area of energy resource development and to issue its negotiable bonds or notes as evidence of any such borrowing in such principal amounts and upon such terms as shall be determined by the authority, and to secure such bonds or notes by the pledge of revenues, mortgages, or notes of others as authorized by sections 260.005 to 260.125.

2.

The authority shall develop a hazardous waste facility if the study required in section 260.037 demonstrates that a facility is economically feasible.

The SS SCS SB 838 7 facility, which shall not include a hazardous waste landfill, may be operated by any eligible party as specified in this section.

The authority shall begin development of the facility by July 1, 1985.

3.

All employees of the authority shall be eligible for membership in the Missouri state employees' retirement system, subject to all provisions in chapters 104 and 105 applicable to the system.

393.1025.

As used in sections 393.1020 to 393.1030, the following terms mean:

(1) "Commission", the public service commission;

(2) "Department", the department of [economic development] natural resources;

(3) "Electric utility", any electrical corporation as defined by section 386.020;

(4) "Eligible battery energy storage system", a battery system that captures renewable energy, stores it, and dispatches the energy back into the bulk power system or the electric utility's distribution system and accredited by the electric utility's relevant regional transmission organization or independent system operator in resource adequacy determinations;

(5) "Renewable energy credit" or "REC", a tradeable certificate of proof that one megawatt-hour of electricity has been generated from renewable energy [sources] resources;

[and (5)] (6) "Renewable energy resources", electric energy produced from wind, solar thermal sources, photovoltaic cells and panels, dedicated crops grown for energy production, cellulosic agricultural residues, plant residues, methane from landfills, from agricultural operations, or from wastewater treatment, thermal SS SCS SB 838 8 depolymerization or pyrolysis for converting waste material to energy, clean and untreated wood such as pallets, hydropower (not including pumped storage) that does not require a new diversion or impoundment of water and that has a nameplate rating of ten megawatts or less, fuel cells using hydrogen produced by one of the above-named renewable energy sources, and other sources of energy not including nuclear that become available after 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 rule a portfolio requirement for all electric utilities to generate or purchase electricity generated from renewable energy resources.

Such portfolio requirement shall provide that electricity from renewable energy resources shall constitute the following portions of each electric utility's sales:

(1) No less than two percent for calendar years 2011 through 2013;

(2) No less than five percent for calendar years 2014 through 2017;

(3) No less than ten percent for calendar years 2018 through 2020;

and (4) No less than fifteen percent in each calendar year beginning in 2021.

At least two percent of each portfolio requirement shall be derived from solar energy.

The portfolio requirements shall apply to all power sold to Missouri consumers whether such power is self-generated or purchased from another source in or outside of this state.

A utility may comply with the standard in whole or in part by purchasing RECs.

Each kilowatt-hour of eligible energy generated in Missouri shall SS SCS SB 838 9 count as 1.25 kilowatt-hours for purposes of compliance.

Each kilowatt-hour of renewable energy generated and stored using an eligible battery energy storage system located in the state that becomes operational after December 31, 2026, shall count as an additional twenty-five hundredth kilowatt- hours, for a total of one and fifty hundredths kilowatt- hours for purposes of compliance.

2.

(1) [This subsection applies to electric utilities with more than two hundred fifty thousand but less than one million retail customers in Missouri as of the end of the calendar year 2024.

(2)] Energy meeting the criteria of the renewable energy portfolio requirements set forth in subsection 1 of this section that is generated from renewable energy resources and contracted for by an accelerated renewable buyer shall:

(a) Have all associated renewable energy certificates retired by the accelerated renewable buyer, or on their behalf, and the certificates shall not be used to meet the electric utility's portfolio requirements pursuant to subsection 1 of this section;

(b) Be excluded from the total electric utility's sales used to determine the portfolio requirements pursuant to subsection 1 of this section;

and (c) Be used to offset all or a portion of its electric load for purposes of determining compliance with the portfolio requirements pursuant to subsection 1 of this section.

[(3)] (2) The accelerated renewable buyer shall be exempt from any renewable energy standard compliance costs as may be established by the utility and approved by the commission, based on the amount of renewable energy SS SCS SB 838 10 certificates retired pursuant to this subsection in proportion to the accelerated renewable buyer's total electric energy consumption, on an annual basis.

[(4)] (3) An "accelerated renewable buyer" means a customer of an electric utility, with an aggregate load over [eighty] seventy-five average megawatts[,] or that is served under a tariff approved by the commission under subsection 7 of section 393.130 that enters into a contract or contracts to obtain:

(a) Renewable energy certificates from renewable energy resources as defined in section 393.1025;

or (b) Energy and renewable energy certificates from solar or wind generation resources located within the [Southwest Power Pool] electric utility's relevant regional transmission organization or independent system operator region and initially placed in commercial operation after January 1, 2020, including any contract with the electric utility for such generation resources that does not allocate to or recover from any other customer of the utility the cost of such resources.

[(5)] (4) Each electric utility shall certify, and verify as necessary, to the commission that the accelerated renewable buyer has satisfied the exemption requirements of this subsection for each year, or an accelerated renewable buyer may choose to certify satisfaction of this exemption by reporting to the commission individually.

[(6)] (5) The commission may promulgate such rules and regulations as may be necessary to implement the provisions of this subsection.

Any rule or portion of a rule, as that term is defined in section 536.010, that is created under the authority delegated in this section shall become effective only if it complies with and is subject to all of SS SCS SB 838 11 the provisions of chapter 536 and, if applicable, section 536.028.

This section and chapter 536 are nonseverable and if any of the powers vested with the general assembly pursuant to chapter 536 to review, to delay the effective date, or to disapprove and annul a rule are subsequently held unconstitutional, then the grant of rulemaking authority and any rule proposed or adopted after August 28, 2025, shall be invalid and void.

[(7)] (6) Nothing in this section shall be construed as imposing or authorizing the imposition of any reporting, regulatory, or financial burden on an accelerated renewable buyer.

3.

The commission, in consultation with the department and within one year of November 4, 2008, shall select a program for tracking and verifying the trading of renewable energy credits.

An unused credit may exist for up to three years from the date of its creation.

A renewable energy credit may be used only once to comply with sections 393.1020 to 393.1030 and may not also be used to satisfy any similar nonfederal requirement.

An electric utility may not use a credit derived from a green pricing program.

Certificates from net-metered sources shall initially be owned by the customer-generator.

The commission, except where the department is specified, shall make whatever rules are necessary to enforce the renewable energy standard.

Such rules shall include:

(1) A maximum average retail rate increase of one percent determined by estimating and comparing the electric utility's cost of compliance with least-cost renewable generation and the cost of continuing to generate or purchase electricity from entirely nonrenewable sources, taking into proper account future environmental regulatory SS SCS SB 838 12 risk including the risk of greenhouse gas regulation.

Notwithstanding the foregoing, until June 30, 2020, if the maximum average retail rate increase would be less than or equal to one percent if an electric utility's investment in solar-related projects initiated, owned or operated by the electric utility is ignored for purposes of calculating the increase, then additional solar rebates shall be paid and included in rates in an amount up to the amount that would produce a retail rate increase equal to the difference between a one percent retail rate increase and the retail rate increase calculated when ignoring an electric utility's investment in solar-related projects initiated, owned, or operated by the electric utility.

Notwithstanding any provision to the contrary in this section, even if the payment of additional solar rebates will produce a maximum average retail rate increase of greater than one percent when an electric utility's investment in solar-related projects initiated, owned or operated by the electric utility are included in the calculation, the additional solar rebate costs shall be included in the prudently incurred costs to be recovered as contemplated by subdivision (4) of this subsection;

(2) Penalties of at least twice the average market value of renewable energy credits for the compliance period for failure to meet the targets of subsection 1 of this section.

An electric utility will be excused if it proves to the commission that failure was due to events beyond its reasonable control that could not have been reasonably mitigated, or that the maximum average retail rate increase has been reached.

Penalties shall not be recovered from customers.

Amounts forfeited under this section shall be remitted to the department to purchase renewable energy SS SCS SB 838 13 credits needed for compliance.

Any excess forfeited revenues shall be used by the division of energy solely for renewable energy and energy efficiency projects;

(3) Provisions for an annual report to be filed by each electric utility in a format sufficient to document its progress in meeting the targets;

(4) Provision for recovery outside the context of a regular rate case of prudently incurred costs and the pass- through of benefits to customers of any savings achieved by an electrical corporation in meeting the requirements of this section.

4.

As provided for in this section, except for those electrical corporations that qualify for an exemption under section 393.1050, each electric utility shall make available to its retail customers a solar rebate for new or expanded solar electric systems sited on customers' premises, up to a maximum of twenty-five kilowatts per system, measured in direct current that were confirmed by the electric utility to have become operational in compliance with the provisions of section 386.890.

The solar rebates shall be two dollars per watt for systems becoming operational on or before June 30, 2014;

one dollar and fifty cents per watt for systems becoming operational between July 1, 2014, and June 30, 2015;

one dollar per watt for systems becoming operational between July 1, 2015, and June 30, 2016;

fifty cents per watt for systems becoming operational between July 1, 2016, and June 30, 2017;

fifty cents per watt for systems becoming operational between July 1, 2017, and June 30, 2019;

twenty- five cents per watt for systems becoming operational between July 1, 2019, and June 30, 2020;

and zero cents per watt for systems becoming operational after June 30, 2020.

An electric utility may, through its tariffs, require SS SCS SB 838 14 applications for rebates to be submitted up to one hundred eighty-two days prior to the June thirtieth operational date.

Nothing in this section shall prevent an electrical corporation from offering rebates after July 1, 2020, through an approved tariff.

If the electric utility determines the maximum average retail rate increase provided for in subdivision (1) of subsection 3 of this section will be reached in any calendar year, the electric utility shall be entitled to cease paying rebates to the extent necessary to avoid exceeding the maximum average retail rate increase if the electrical corporation files with the commission to suspend its rebate tariff for the remainder of that calendar year at least sixty days prior to the change taking effect.

The filing with the commission to suspend the electrical corporation's rebate tariff shall include the calculation reflecting that the maximum average retail rate increase will be reached and supporting documentation reflecting that the maximum average retail rate increase will be reached.

The commission shall rule on the suspension filing within sixty days of the date it is filed.

If the commission determines that the maximum average retail rate increase will be reached, the commission shall approve the tariff suspension.

The electric utility shall continue to process and pay applicable solar rebates until a final commission ruling;

however, if the continued payment causes the electric utility to pay rebates that cause it to exceed the maximum average retail rate increase, the expenditures shall be considered prudently incurred costs as contemplated by subdivision (4) of subsection 3 of this section and shall be recoverable as such by the electric utility.

As a condition of receiving a rebate, customers shall transfer to the electric utility all right, title, and interest in and to SS SCS SB 838 15 the renewable energy credits associated with the new or expanded solar electric system that qualified the customer for the solar rebate for a period of ten years from the date the electric utility confirmed that the solar electric system was installed and operational.

5.

The department shall, in consultation with the commission, establish by rule a certification process for electricity generated from renewable resources and used to fulfill the requirements of subsection 1 of this section.

Certification criteria for renewable energy generation shall be determined by factors that include fuel type, technology, and the environmental impacts of the generating facility.

Renewable energy facilities shall not cause undue adverse air, water, or land use impacts, including impacts associated with the gathering of generation feedstocks.

If any amount of fossil fuel is used with renewable energy resources, only the portion of electrical output attributable to renewable energy resources shall be used to fulfill the portfolio requirements.

6.

In carrying out the provisions of this section, the commission and the department shall include methane generated from the anaerobic digestion of farm animal waste and thermal depolymerization or pyrolysis for converting waste material to energy as renewable energy resources for purposes of this section.

7.

The commission shall have the authority to promulgate rules for the implementation of this section, but only to the extent such rules are consistent with, and do not delay the implementation of, the provisions of this section.

Any rule or portion of a rule, as that term is defined in section 536.010, that is created under the authority delegated in this section shall become effective SS SCS SB 838 16 only if it complies with and is subject to all of the provisions of chapter 536 and, if applicable, section 536.028.

This section and chapter 536 are nonseverable and if any of the powers vested with the general assembly pursuant to chapter 536 to review, to delay the effective date, or to disapprove and annul a rule are subsequently held unconstitutional, then the grant of rulemaking authority and any rule proposed or adopted after August 28, 2013, shall be invalid and void.

8.

An electrical corporation, as defined in section 386.020, shall not demand any charge for service based on the costs of construction work in progress for any nuclear power generating facility.

393.1905.

Notwithstanding any provision of law to the contrary, no nuclear energy related cost may be recovered through any surcharge or any ratemaking mechanism outside a general rate proceeding.

393.1910.

1.

As used in this section, the following terms shall mean:

(1) "Commission", the public service commission;

(2) "Zero emission credit", a tradable certificate or proof that one megawatt-hour of electricity has been generated from a zero emission facility after December 31, 2028;

(3) "Zero emission facility", a facility that is fueled by nuclear power, or any technology that is developed in the future that is determined to be a zero emission facility as determined by the commission, is interconnected with an appropriate regional transmission organization or independent system operator, as defined in section 393.1080, and becomes operational after December 31, 2028.

SS SCS SB 838 17 2.

The commission may authorize an electric utility to offer or participate in a zero emission credit program or tariff.

The commission may prescribe such rules and regulations to carry into effect the provisions of this section as it may deem necessary.

3.

A zero emission credit may exist for up to three years from the date of its creation, may only be used once, and may not also be used to satisfy any similar nonfederal requirement if one exists.

4.

The public service commission shall not increase the allowed return on equity for an electric utility solely because that utility is constructing a zero emission facility, as defined in subsection 1 of this section.

5.

The commission may promulgate such rules and regulations as may be necessary to implement the provisions of this section.

Any rule or portion of a rule, as that term is defined in section 536.010, that is created under the authority delegated in this section shall become effective only if it complies with and is subject to all of the provisions of chapter 536 and, if applicable, section 536.028.

This section and chapter 536 are nonseverable and if any of the powers vested with the general assembly pursuant to chapter 536 to review, to delay the effective date, or to disapprove and annul a rule are subsequently held unconstitutional, then the grant of rulemaking authority and any rule proposed or adopted after August 28, 2026, shall be invalid and void.