SECONDREGULARSESSION HOUSEBILLNO.2193 102NDGENERALASSEMBLY INTRODUCEDBYREPRESENTATIVEO'DONNELL. 3441H.01I DANARADEMANMILLER,ChiefClerk ANACT Torepealsection386.895,RSMo,andtoenactinlieuthereofonenewsectionrelatingtoa renewablenaturalgasprogram. BeitenactedbytheGeneralAssemblyofthestateofMissouri,asfollows: SectionA.Section386.895,RSMo,isrepealedandonenewsectionenactedinlieu 2thereof,tobeknownassection386.895,toreadasfollows: 386.895.1.Asusedinthissection,thefollowingtermsshallmean: 2 (1)"Biogas",amixtureofcarbondioxideandhydrocarbons,primarilymethanegas, 3releasedfromthebiologicaldecompositionoforganicmaterials; 4 (2)"Biomass",hasthemeaninggiventheterm"qualifiedbiomass"insection 5142.028; 6 (3)"Gascorporation",thesameasdefinedinsection386.020; 7 (4)"Qualifiedinvestment",anycapitalinvestmentinrenewablenaturalgas 8infrastructureincurredbyagascorporationforthepurposeofprovidingnaturalgasservice 9underarenewablenaturalgasprogram; 10 (5)"Renewableenergysources",hydroelectric,geothermal,solarphotovoltaic,wind, 11tidal,wave,biomass,orbiogasenergysources; 12 (6)"Renewablenaturalgas",anyofthefollowingproductsprocessedtomeet 13pipelinequalitystandardsortransportationfuelgraderequirements: 14 (a)Biogasthatisupgradedtomeetnaturalgaspipelinequalitystandardssuchthatit 15mayblendwith,orsubstitutefor,geologicnaturalgas; 16 (b)Hydrogengas;or 17 (c)Methanegasderivedfromanycombinationof: EXPLANATION—Matterenclosedinbold-facedbrackets[thus] intheabovebillisnotenactedandis intendedtobeomittedfromthelaw.Matterinbold-facetypeintheabovebillisproposedlanguage. 18 a.Biogas; 19 b.Hydrogengasorcarbonoxidesderivedfromrenewableenergysources;or 20 c.Wastecarbondioxide; 21 (7)"Renewablenaturalgasinfrastructure",allequipmentandfacilitiesforthe 22production,processing,pipelineinterconnection,anddistributionofrenewablenaturalgasto 23befurnishedtoMissouricustomers. 24 2.NolaterthanJanuary1,2025,thecommissionshalladoptrules[for]permitting 25gascorporationstovoluntarilyinstitutea[toofferavoluntary] renewablenaturalgas 26program.Rulesadoptedbythecommissionunderthissectionshallbelimitedto[include]: 27 (1)Rulesforreportingrequirements;[and] 28 (2)Rulesforestablishingaprocessforgascorporationstosubmitfilings 29pursuanttotherenewablenaturalgasprogram; 30 (3)Rulesforestablishingaprocessforgascorporationstofullyrecoverincurred 31coststhatareprudent,just,andreasonableassociatedwitharenewablenaturalgasprogram. 32Suchrecoveryshallnotbepermitteduntiltheprojectisoperationalandproducesrenewable 33naturalgasforcustomeruse;and 34 (4)Thepublicservicecommissionmaypromulgateruleslimitedtoits 35rulemakingauthorityunderthissubsection.Anyruleorportionofarule,asthat 36termisdefinedinsection536.010,thatiscreatedundertheauthoritydelegatedinthis 37sectionshallbecomeeffectiveonlyifitcomplieswithandissubjecttoallofthe 38provisionsofchapter536and,ifapplicable,section536.028.Thissectionandchapter 39536arenonseverableandifanyofthepowersvestedwiththegeneralassembly 40pursuanttochapter536toreview,todelaytheeffectivedate,ortodisapproveandannul 41arulearesubsequentlyheldunconstitutional,thenthegrantofrulemakingauthority 42andanyruleproposedoradoptedafterAugust28,2024,shallbeinvalidandvoid. 43 3.Afilingbyagascorporationpursuanttotherenewablenaturalgasprogramcreated 44insubsection2ofthissectionshallinclude,butisnotlimitedto: 45 (1)Aproposaltoprocureatotalvolumeofrenewablenaturalgasoveraspecific 46period;[and] 47 (2)Identificationofthequalifiedinvestmentsthatthegascorporationmaymakein 48renewablenaturalgasinfrastructure; and 49 (3)Atimelinefortheinvestmentandcompletionoftheproposedrenewable 50naturalgasinfrastructure. 51 4.Agascorporationmayfromtimetotimerevisethefilingsubmittedtothe 52commissionunderthissectionnomorethanonetimeperyear. 53 5.Anycostsincurredbyagascorporationforaqualifiedinvestmentthatareprudent, 54just,andreasonablemayberecoveredbymeansofanautomaticrateadjustmentclause. HB2193 2 55 6.Thecommissionshallissueadecisiononanyfilingmadebyagascorporation 56underthissectionwithinninetydaysofsubmission. 57 [6.]7.Whenagascorporationmakesaqualifiedinvestmentintheproductionof 58renewablenaturalgas,thecostsassociatedwithsuchqualifiedinvestmentshallincludethe 59costofcapitalestablishedbythecommissioninthegascorporation'smostrecentgeneralrate 60case. 61 [7.]8.OnorbeforeJanuary1,[2023] 2026, thedivisionofenergywithinthe 62departmentofnaturalresourcesshallprovidetothechairofthepublicservicecommission, 63thespeakerofthehouseofrepresentatives,thepresidentprotemporeofthesenate,thechair 64ofthesenatecommitteeoncommerce,consumerprotection,energy,andtheenvironment,and 65thechairofthehouseofrepresentativesutilitycommittee,areportontherenewablenatural 66gasprogramestablishedunderthissection.Suchreportshallinclude,butnotbelimitedto, 67thefollowing: 68 (1)Thenumberofprojectssubmittedfortherenewablenaturalgasprogramandthe 69numberofprojectsapprovedfortherenewablenaturalgasprogram; 70 (2)Thenumberofprojectsthatareoperational,andthecosts,projectedandactual,of 71suchprojectsandotherkeymetricsthedivisionofenergydeemsimportant; 72 (3)Thevolumeofrenewablenaturalgasproducedinthestatethroughprojectsthat 73wereapprovedbytherenewablenaturalgasprogramaswellasthepercentageofrenewable 74naturalgasproducedinrelationtothetotalvolumeofnaturalgassoldinthestate; 75 (4)Theenvironmentalbenefitsofrenewablenaturalgas,includingbutnotlimitedto 76greenhousegasreductionasaresultoftheproductionofrenewablenaturalgas; 77 (5)Theeconomicbenefitsoftherenewablenaturalgasprogram,includingbutnot 78limitedtolocalemployment,value-addedproductionfortheagriculturalsector,andother 79economicdevelopment;and 80 (6)Anyeconomicbenefitsorothercoststoratepayers. 81 [8.]9.Rulesadoptedbythecommissionunderthissectionshallnotprohibitan 82affiliateofagascorporationfrommakingacapitalinvestmentinabiogasproductionproject 83iftheaffiliateisnotapublicutilityasdefinedinsection386.020. 84 [9.Thepublicservicecommissionmaypromulgaterulestoimplementtheprovisions 85ofthissection.Anyruleorportionofarule,asthattermisdefinedinsection536.010,thatis 86createdundertheauthoritydelegatedinthissectionshallbecomeeffectiveonlyifitcomplies 87withandissubjecttoalloftheprovisionsofchapter536and,ifapplicable,section536.028. 88Thissectionandchapter536arenonseverableandifanyofthepowersvestedwiththe 89generalassemblypursuanttochapter536toreview,todelaytheeffectivedate,orto 90disapproveandannularulearesubsequentlyheldunconstitutional,thenthegrantof HB2193 3 91rulemakingauthorityandanyruleproposedoradoptedafterAugust28,2021,shallbeinvalid 92andvoid.] 93 10.Pursuanttosection23.253oftheMissourisunsetact,thissectionandanyrules 94enactedunderthissectionshallexpirenineyearsfromthedatethecommissionpromulgates 95rulestoimplementtherenewablenaturalgasprogram[isestablished], unlessreauthorized 96bythegeneralassembly;providedthatanyrateadjustmentauthorizedbythissectionshall 97continuesolongastherenewablenaturalgasprogramremainsinoperationandproduces 98renewablenaturalgasforcustomeruse. ✔ HB2193 4