FIRSTREGULARSESSION
HOUSEBILLNO.1079
102NDGENERALASSEMBLY
INTRODUCEDBYREPRESENTATIVEPLANK.
0805H.01I DANARADEMANMILLER,ChiefClerk
ANACT
Torepealsection393.1030,RSMo,andtoenactinlieuthereoftwonewsectionsrelatingto
renewableenergy.
BeitenactedbytheGeneralAssemblyofthestateofMissouri,asfollows:
SectionA.Section393.1030,RSMo,isrepealedandtwonewsectionsenactedinlieu
2thereof,tobeknownassections135.1015and393.1030,toreadasfollows:
135.1015.1.Asusedinthissection,thefollowingtermsmean:
2 (1)"Qualifiedresidentialsolarproperty",includesallpropertythatqualifiesfor
3thefederalresidentialenergypropertycreditauthorizedunderSection25Dofthe
4InternalRevenueCode;
5 (2)"Qualifiedresidentialsolarpropertyexpenditures",foranyqualified
6taxpayerinagiventaxyear,theamountspentonqualifiedresidentialsolarproperty
7thatalsoqualifiesforthefederalresidentialenergypropertycreditauthorizedunder
8Section25DoftheInternalRevenueCode;
9 (3)"Qualifiedtaxpayer",anyindividualsubjecttothestateincometaximposed
10underchapter143,excludingthewithholdingtaximposedundersections143.191to
11143.265,whohasqualifiedresidentialpropertyexpendituresthatqualifyforthe
12residentialenergyefficientpropertytaxcreditunderSection25DoftheInternal
13RevenueCode;
14 (4)"Taxcredit",acreditagainstthetaxotherwisedueunderchapter143,
15excludingwithholdingtaximposedundersections143.191to143.265.
16 2.Aqualifiedtaxpayershallbeallowedtoclaimataxcreditunderthissection
17againstthetaxpayer'sstatetaxliabilityinthefollowingamounts:
EXPLANATION—Matterenclosedinbold-facedbrackets[thus] intheabovebillisnotenactedandis
intendedtobeomittedfromthelaw.Matterinbold-facetypeintheabovebillisproposedlanguage. 18 (1)ForalltaxyearsbeginningonorafterJanuary1,2024,andendingonor
19beforeDecember31,2032,thirtypercentofthequalifiedresidentialsolarproperty
20expendituresmadebythequalifiedtaxpayerduringsuchyear;
21 (2)ForalltaxyearsbeginningonorafterJanuary1,2033,andendingonor
22beforeDecember31,2033,thirty-fivepercentofthequalifiedresidentialsolarproperty
23expendituresmadebythequalifiedtaxpayerduringsuchyear;and
24 (3)ForalltaxyearsbeginningonorafterJanuary1,2034,fortypercentofthe
25qualifiedresidentialsolarpropertyexpendituresmadebythequalifiedtaxpayerduring
26suchyear.
27 3.Notaxcreditclaimedunderthissectionshallbecarriedforwardtoany
28subsequenttaxyear.
29 4.Notaxcreditclaimedunderthissectionshallbeassigned,transferred,sold,or
30otherwiseconveyed.
31 5.Thedepartmentofrevenueshallpromulgateallnecessaryrulesand
32regulationsfortheadministrationofthissectionincluding,butnotlimitedto,rules
33relatingtotheverificationofataxpayer'squalifiedamount.Anyruleorportionofa
34rule,asthattermisdefinedinsection536.010,thatiscreatedundertheauthority
35delegatedinthissectionshallbecomeeffectiveonlyifitcomplieswithandissubjectto
36alloftheprovisionsofchapter536and,ifapplicable,section536.028.Thissectionand
37chapter536arenonseverableandifanyofthepowersvestedwiththegeneralassembly
38pursuanttochapter536toreview,todelaytheeffectivedate,ortodisapproveandannul
39arulearesubsequentlyheldunconstitutional,thenthegrantofrulemakingauthority
40andanyruleproposedoradoptedafterAugust28,2023,shallbeinvalidandvoid.
41 6.Undersection23.253oftheMissourisunsetact:
42 (1)Theprovisionsofthenewprogramauthorizedunderthissectionshall
43automaticallysunsetDecemberthirty-firstsixyearsaftertheeffectivedateofthis
44sectionunlessreauthorizedbyanactofthegeneralassembly;
45 (2)Ifsuchprogramisreauthorized,theprogramauthorizedunderthissection
46shallautomaticallysunsetDecemberthirty-firsttwelveyearsaftertheeffectivedateof
47thereauthorizationofthissection;and
48 (3)ThissectionshallterminateonSeptemberfirstofthecalendaryear
49immediatelyfollowingthecalendaryearinwhichtheprovisionsauthorizedunderthis
50sectionaresunset.
393.1030.1.Thecommissionshall,inconsultationwiththedepartment,prescribeby
2ruleaportfoliorequirementforallelectricutilitiestogenerateorpurchaseelectricity
3generatedfromrenewableenergyresources.Suchportfoliorequirementshallprovidethat
HB1079 2 4electricityfromrenewableenergyresourcesshallconstitutethefollowingportionsofeach
5electricutility'ssales:
6 (1)Nolessthan[two]fifteenpercent[forcalendaryears2011through2013] before
7December31,2023;
8 (2)Nolessthan[five]twentypercent[forcalendaryears2014through2017] before
9December31,2028;
10 (3)Nolessthan[ten]fortypercent[forcalendaryears2018through2020;and]
11beforeDecember31,2033;
12 (4)Nolessthan[fifteen] sixtypercent[ineachcalendaryearbeginningin2021]
13beforeDecember31,2043;
14 (5)NolessthaneightypercentbeforeDecember31,2053;and
15 (6)NolessthanonehundredpercentbeforeDecember31,2058.
16
17Atleasttwopercentofeachportfoliorequirementshallbederivedfromsolarenergy.The
18portfoliorequirementsshallapplytoallpowersoldtoMissouriconsumerswhethersuch
19powerisself-generatedorpurchasedfromanothersourceinoroutsideofthisstate.Autility
20maycomplywiththestandardinwholeorinpartbypurchasingRECs.Eachkilowatt-hourof
21eligibleenergygeneratedinMissourishallcountas1.25kilowatt-hoursforpurposesof
22compliance.
23 2.Thecommission,inconsultationwiththedepartmentandwithinoneyearof
24November4,2008,shallselectaprogramfortrackingandverifyingthetradingofrenewable
25energycredits.Anunusedcreditmayexistforuptothreeyearsfromthedateofitscreation.
26Acreditmaybeusedonlyoncetocomplywithsections393.1020to393.1030andmaynot
27alsobeusedtosatisfyanysimilarnonfederalrequirement.Anelectricutilitymaynotusea
28creditderivedfromagreenpricingprogram.Certificatesfromnet-meteredsourcesshall
29initiallybeownedbythecustomer-generator.Thecommission,exceptwherethedepartment
30isspecified,shallmakewhateverrulesarenecessarytoenforcetherenewableenergy
31standard.Suchrulesshallinclude:
32 (1)Amaximumaverageretailrateincreaseofonepercentdeterminedbyestimating
33andcomparingtheelectricutility'scostofcompliancewithleast-costrenewablegeneration
34andthecostofcontinuingtogenerateorpurchaseelectricityfromentirelynonrenewable
35sources,takingintoproperaccountfutureenvironmentalregulatoryriskincludingtheriskof
36greenhousegasregulation.Notwithstandingtheforegoing,untilJune30,2020,ifthe
37maximumaverageretailrateincreasewouldbelessthanorequaltoonepercentifanelectric
38utility'sinvestmentinsolar-relatedprojectsinitiated,ownedoroperatedbytheelectricutility
39isignoredforpurposesofcalculatingtheincrease,thenadditionalsolarrebatesshallbepaid
40andincludedinratesinanamountuptotheamountthatwouldproducearetailrateincrease
HB1079 3 41equaltothedifferencebetweenaonepercentretailrateincreaseandtheretailrateincrease
42calculatedwhenignoringanelectricutility'sinvestmentinsolar-relatedprojectsinitiated,
43owned,oroperatedbytheelectricutility.Notwithstandinganyprovisiontothecontraryin
44thissection,evenifthepaymentofadditionalsolarrebateswillproduceamaximumaverage
45retailrateincreaseofgreaterthanonepercentwhenanelectricutility'sinvestmentinsolar-
46relatedprojectsinitiated,ownedoroperatedbytheelectricutilityareincludedinthe
47calculation,theadditionalsolarrebatecostsshallbeincludedintheprudentlyincurredcosts
48toberecoveredascontemplatedbysubdivision(4)ofthissubsection;
49 (2)Penaltiesofatleasttwicetheaveragemarketvalueofrenewableenergycredits
50forthecomplianceperiodforfailuretomeetthetargetsofsubsection1ofthissection.An
51electricutilitywillbeexcusedifitprovestothecommissionthatfailurewasduetoevents
52beyonditsreasonablecontrolthatcouldnothavebeenreasonablymitigated,orthatthe
53maximumaverageretailrateincreasehasbeenreached.Penaltiesshallnotberecoveredfrom
54customers.Amountsforfeitedunderthissectionshallberemittedtothedepartmentto
55purchaserenewableenergycreditsneededforcompliance.Anyexcessforfeitedrevenues
56shallbeusedbythedivisionofenergysolelyforrenewableenergyandenergyefficiency
57projects;
58 (3)Provisionsforanannualreporttobefiledbyeachelectricutilityinaformat
59sufficienttodocumentitsprogressinmeetingthetargets;
60 (4)Provisionforrecoveryoutsidethecontextofaregularratecaseofprudently
61incurredcostsandthepass-throughofbenefitstocustomersofanysavingsachievedbyan
62electricalcorporationinmeetingtherequirementsofthissection.
63 3.Asprovidedforinthissection,exceptforthoseelectricalcorporationsthatqualify
64foranexemptionundersection393.1050,eachelectricutilityshallmakeavailabletoitsretail
65customersasolarrebateforneworexpandedsolarelectricsystemssitedoncustomers'
66premises,uptoamaximumoftwenty-fivekilowattspersystem,measuredindirectcurrent
67thatwereconfirmedbytheelectricutilitytohavebecomeoperationalincompliancewiththe
68provisionsofsection386.890.Thesolarrebatesshallbetwodollarsperwattforsystems
69becomingoperationalonorbeforeJune30,2014;onedollarandfiftycentsperwattfor
70systemsbecomingoperationalbetweenJuly1,2014,andJune30,2015;onedollarperwatt
71forsystemsbecomingoperationalbetweenJuly1,2015,andJune30,2016;fiftycentsper
72wattforsystemsbecomingoperationalbetweenJuly1,2016,andJune30,2017;fiftycents
73perwattforsystemsbecomingoperationalbetweenJuly1,2017,andJune30,2019;twenty-
74fivecentsperwattforsystemsbecomingoperationalbetweenJuly1,2019,andJune30,
752020;andzerocentsperwattforsystemsbecomingoperationalafterJune30,2020.An
76electricutilitymay,throughitstariffs,requireapplicationsforrebatestobesubmittedupto
77onehundredeighty-twodayspriortotheJunethirtiethoperationaldate.Nothinginthis
HB1079 4 78sectionshallpreventanelectricalcorporationfromofferingrebatesafterJuly1,2020,
79throughanapprovedtariff.Iftheelectricutilitydeterminesthemaximumaverageretailrate
80increaseprovidedforinsubdivision(1)ofsubsection2ofthissectionwillbereachedinany
81calendaryear,theelectricutilityshallbeentitledtoceasepayingrebatestotheextent
82necessarytoavoidexceedingthemaximumaverageretailrateincreaseiftheelectrical
83corporationfileswiththecommissiontosuspenditsrebatetarifffortheremainderofthat
84calendaryearatleastsixtydayspriortothechangetakingeffect.Thefilingwiththe
85commissiontosuspendtheelectricalcorporation'srebatetariffshallincludethecalculation
86reflectingthatthemaximumaverageretailrateincreasewillbereachedandsupporting
87documentationreflectingthatthemaximumaverageretailrateincreasewillbereached.The
88commissionshallruleonthesuspensionfilingwithinsixtydaysofthedateitisfiled.Ifthe
89commissiondeterminesthatthemaximumaverageretailrateincreasewillbereached,the
90commissionshallapprovethetariffsuspension.Theelectricutilityshallcontinuetoprocess
91andpayapplicablesolarrebatesuntilafinalcommissionruling;however,ifthecontinued
92paymentcausestheelectricutilitytopayrebatesthatcauseittoexceedthemaximumaverage
93retailrateincrease,theexpendituresshallbeconsideredprudentlyincurredcostsas
94contemplatedbysubdivision(4)ofsubsection2ofthissectionandshallberecoverableas
95suchbytheelectricutility.Asaconditionofreceivingarebate,customersshalltransferto
96theelectricutilityallright,title,andinterestinandtotherenewableenergycreditsassociated
97withtheneworexpandedsolarelectricsystemthatqualifiedthecustomerforthesolarrebate
98foraperiodoftenyearsfromthedatetheelectricutilityconfirmedthatthesolarelectric
99systemwasinstalledandoperational.
100 4.Thedepartmentshall,inconsultationwiththecommission,establishbyrulea
101certificationprocessforelectricitygeneratedfromrenewableresourcesandusedtofulfillthe
102requirementsofsubsection1ofthissection.Certificationcriteriaforrenewableenergy
103generationshallbedeterminedbyfactorsthatincludefueltype,technology,andthe
104environmentalimpactsofthegeneratingfacility.Renewableenergyfacilitiesshallnotcause
105undueadverseair,water,orlanduseimpacts,includingimpactsassociatedwiththegathering
106ofgenerationfeedstocks.Ifanyamountoffossilfuelisusedwithrenewableenergy
107resources,onlytheportionofelectricaloutputattributabletorenewableenergyresources
108shallbeusedtofulfilltheportfoliorequirements.
109 5.Incarryingouttheprovisionsofthissection,thecommissionandthedepartment
110shallincludemethanegeneratedfromtheanaerobicdigestionoffarmanimalwasteand
111thermaldepolymerizationorpyrolysisforconvertingwastematerialtoenergyasrenewable
112energyresourcesforpurposesofthissection.
113 6.Thecommissionshallhavetheauthoritytopromulgaterulesforthe
114implementationofthissection,butonlytotheextentsuchrulesareconsistentwith,and
HB1079 5 115donotdelaytheimplementationof,theprovisionsofthissection.Anyruleorportionofa
116rule,asthattermisdefinedinsection536.010,thatiscreatedundertheauthoritydelegatedin
117thissectionshallbecomeeffectiveonlyifitcomplieswithandissubjecttoallofthe
118provisionsofchapter536and,ifapplicable,section536.028.Thissectionandchapter536
119arenonseverableandifanyofthepowersvestedwiththegeneralassemblypursuantto
120chapter536toreview,todelaytheeffectivedate,ortodisapproveandannularuleare
121subsequentlyheldunconstitutional,thenthegrantofrulemakingauthorityandanyrule
122proposedoradoptedafterAugust28,2013,shallbeinvalidandvoid.
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