SECONDREGULARSESSION HOUSEBILLNO.2574 102NDGENERALASSEMBLY INTRODUCEDBYREPRESENTATIVEMCMULLEN. 5358H.01I DANARADEMANMILLER,ChiefClerk ANACT Toamendchapter386,RSMo,byaddingtheretoonenewsectionrelatingtoacommunity solarpilotprogram. BeitenactedbytheGeneralAssemblyofthestateofMissouri,asfollows: SectionA.Chapter386,RSMo,isamendedbyaddingtheretoonenewsection,tobe 2knownassection386.875,toreadasfollows: 386.875.1.Asusedinthissection,thefollowingtermsshallmean: 2 (1)"Billcredit",thecommission-approvedmonetaryvalueofeachkilowatt 3hourofelectricitygeneratedbyacommunitysolarfacilityandallocatedtoa 4subscriber'smonthlybilltooffsetthesubscriber'sretailelectricbill; 5 (2)"Communitysolarfacility",afacilitythat: 6 (a)Generateselectricitybymeansofasolarphotovoltaicdevicewhereby 7subscribersreceiveabillcreditfortheelectricitygeneratedbasedonthesizeofthe 8subscriptions; 9 (b)IslocatedwithinthestateofMissouri; 10 (c)Isconnectedtoanddeliverselectricitytoadistributionsystemoperatedbya 11retailelectricsupplieroperatinginthestateofMissouriandincompliancewith 12requirementsunderthissection; 13 (d)HasanameplatecapacitygreaterthanonehundredACkilowattsandno 14greaterthanfivethousandACkilowatts; 15 (e)Hasatleasttensubscribers; 16 (f)Creditssomeoralloftheelectricitygeneratedfromacommunitysolar 17facilitytothebillsofsubscribers;and EXPLANATION—Matterenclosedinbold-facedbrackets[thus] intheabovebillisnotenactedandis intendedtobeomittedfromthelaw.Matterinbold-facetypeintheabovebillisproposedlanguage. 18 (g)Maybelocatedremotelyfromasubscriber'spremisesandshallnotbe 19requiredtoprovideenergytoanon-siteload; 20 (3)"Communitysolarorganization",anentitythatownsoroperatesoneor 21morecommunitysolarfacilities; 22 (4)"Customer-generator",thesamemeaningassetforthinsection386.890; 23 (5)"Low-incomecustomer",aretailresidentialcustomerofaretailelectric 24supplierwhosehouseholdincomeadjustedforfamilysizedoesnotexceedeithertwo 25hundredpercentofthefederalpovertyleveloreightypercentofthemedianincomeof 26thecountyinwhichthecustomerislocated,whicheverishigher.Ownersormanagers 27ofapartmentbuildingsorrentalunitsthatservelow-incomecustomersmaybe 28consideredlow-incomecustomersiffiftypercentormoreofthetenantsqualifyunder 29thisdefinition.Further,certainentities,organizations,andinstitutionsthatarefocused 30onsocialwelfareandthatservethelow-incomecustomercommunitymayalsoqualify, 31includingbutnotlimitedto:homelessshelters,halfwayhouses,soupkitchens,foster 32homes,orphanages,andothersimilarorganizations; 33 (6)"Retailelectricsupplier",anymunicipalutility,electricalcorporation 34regulatedunderchapter386,orruralelectriccooperativeunderchapter394that 35providesretailelectricserviceinthisstate; 36 (7)"Subscriber",aretailcustomerofaretailelectricsupplierwhoownsoneor 37moresubscriptionstoacommunitysolarfacilityinterconnectedwiththecustomer's 38retailelectricsupplier.Thetermincludesaretailcustomerwhoownsaportionofa 39communitysolarfacility.Asubscriber'ssubscriptionsizeshallbeonehundredpercent 40orlessoftheirtwelve-monthrollingaveragekilowatthourusageforanyonesubscriber 41meter; 42 (8)"Subscriberadministrator",anentitythatrecruitsandenrollssubscribers, 43administerssubscriberparticipationincommunitysolarfacilities,andmanagesthe 44subscriptionrelationshipbetweensubscribersandaretailelectricsupplier; 45 (9)"Subscription",acontractbetweenasubscriberandsubscriber 46administratorofacommunitysolarfacilitythatentitlesthesubscribertoabillcredit 47againstthesubscriber'sretailelectricbill; 48 (10)"Unsubscribedenergy",theoutputofacommunitysolarfacility,measured 49inkilowatthours,thatisnotallocatedtosubscribers. 50 2.Eachretailelectricsuppliershallimplementathree-yearcommunitysolar 51pilotprogramtorunduringcalendaryears2025through2027.Retailelectricsuppliers 52shallallowsubscriberadministratorsandownersoroperatorsofcommunitysolar 53facilitiestorecruitcustomersassubscribersandshallprocesssubscribers'billcreditsas 54requiredbysubdivision(8)ofsubsection3ofthissection.Eachretailelectricsupplier HB2574 2 55shallcontinueoperatingitscommunitysolarpilotprogramuntilthetotalsolar 56electricitydemandfromsubscribersequalsfivepercentoftheretailelectricsupplier's 57electricitysalesforthepreviousyear. 58 3.Communitysolarfacilitiesshallbeoperatedasfollows: 59 (1)Acommunitysolarfacilitymaybebuilt,owned,oroperatedbyathirdparty 60entityundercontractwithanowneroroperatorofacommunitysolarfacilityora 61subscriberadministrator.Asubscriberadministratormaycontracttoadministerbill 62creditstothesubscriber'selectricitybillgeneratedbythesubscriber'sshareofthe 63communitysolarfacility,subjecttotherequirementsofthissection.Asubscriber 64administratorthatprovidesbillcreditstoasubscriberpursuanttothissectionshallnot 65beconsideredanelectricalcorporationorpublicutilityundersection386.020for 66purposesofdeterminingjurisdictionofthecommission; 67 (2)Theowneroroperatorofacommunitysolarfacilitymayserveasa 68subscriberadministratorormaycontractwithathirdpartytoserveasasubscriber 69administratoronbehalfoftheowneroroperator.Nothinginthissectionshallpreventa 70retailelectricsupplierfromowningoroperatingacommunitysolarfacilityorfrom 71actingasasubscriberadministratoraspartofitsowncommunitysolarpilotprogram; 72 (3)Exceptasprovidedundersubdivision(4)ofthissubsection,thepricepaidfor 73asubscriptioninacommunitysolarfacilityshallnotbesubjecttoregulationbythe 74commission; 75 (4)Notlaterthanninemonthsaftertheeffectivedateofthissection,the 76commissionshallestablishthevalueofthebillcreditforeachretailelectricsupplierto 77offseteachsubscriber'sretailelectricbillforeachkilowatthoursubscribedfroma 78communitysolarfacility.Thecommissionshallestablishthebillcreditvalueinsucha 79wayastoallowforthecreation,financing,accessibility,andoperationofcommunity 80solarfacilitiesandtomaximizecustomerparticipationsoastomeetthegoaloffive 81percentofelectricitysalesperyearasrequiredbysubsection2ofthissection.The 82commissionshallestablishanadditionalbillcreditvalueforsubscriberswhoarelow- 83incomecustomersinsuchawayastoensurethatlow-incomesubscriberssavemoneyon 84theirretailelectricbills; 85 (5)Aretailelectricsuppliershallallowforthetransferabilityandportabilityof 86subscriptions,includingallowingasubscribertoretainasubscriptiontoacommunity 87solarfacilityifthesubscriberrelocateswithinthesameretailelectricsupplier'sservice 88territory; 89 (6)Onamonthlybasis,asubscriberadministratorshallupdatethesubscriber 90administrator'slistofsubscribersandprovideallofthefollowinginformationabout HB2574 3 91eachsubscribertotheretailelectricsupplierinastandardizedelectronicformat 92approvedbythecommissionforthepurposeofbillcredittosubscribers: 93 (a)Thename,address,accountnumber,andmeternumber; 94 (b)Thekilowatthoursofelectricitygenerationattributabletoeachsubscriber; 95 (c)Ifasubscriberadministratorisusingtheretailelectricsupplier'sbilling 96methodstocollectsubscriptionfees,thesubscriptionfeeforthemonthowedbyeach 97subscribertothesubscriberadministrator; 98 (7)Asubscriberadministratororthirdpartyowningoroperatingacommunity 99solarfacilityshallnotbeconsideredaretailelectricsupplieroranelectricgeneration 100providersolelyasaresultofinvolvementwithacommunitysolarfacility; 101 (8)Dutiesofretailelectricsuppliersshallincludethefollowing: 102 (a)Onamonthlybasis,aretailelectricsuppliershallprovidetoasubscriber 103administratorareportinastandardizedelectronicformatindicatingthetotalvalueof 104thebillcreditgeneratedbythecommunitysolarfacilityinthepriormonthandthe 105amountofthebillcreditappliedtoeachsubscriber; 106 (b)Aretailelectricsuppliershallprovideabillcredittoasubscriber'snext 107monthlyelectricbillfortheproportionaloutputofacommunitysolarfacility 108attributabletothesubscriberinthesamemannerasifthesolarfacilitywerelocated 109onthecustomer'sproperty; 110 (c)Ifrequestedbyasubscriberadministrator,aretailelectricsuppliershall 111includeasubscriber'ssubscriptionfeeonthemonthlybillandforwardthecollected 112subscriptionfeestothesubscriberadministratoronamonthlybasis;and 113 (d)NotlaterthanAugust28,2025,aretailelectricsuppliershallmakeavailable 114andupdate,inacommerciallyreasonablemanner,asystemmapshowingtheloadingof 115thedistributionsystemandindicatingwhereintheserviceterritorythedistribution 116systemcouldaccommodatenewsolargeneration; 117 (9)Compensationforretailelectricsuppliersshallbeasfollows: 118 (a)Asubscriberadministratorshallcompensatearetailelectricsupplierforthe 119retailelectricsupplier'sreasonabledirectcostsofinterconnectionofacommunitysolar 120facility.Suchcompensationshallbeintheformofaone-timepaymentupon 121interconnection; 122 (b)Aretailelectricsuppliershallbeentitledtorecoveritsreasonabledirectcosts 123ofcomplyingwiththerequirementsofthissectionandenablingacommunitysolar 124facilitywithinitsserviceterritoryincluding,butnotlimitedto,addedbillingcostsand 125addedcostsofnetmeteringandinterconnectionforcommunitysolarfacilities.These 126reasonabledirectcostsshallbeintheformofanannualfeeinvoicedtothesubscriber 127administratorbasedonthetotalfinalsystemsizeofthecommunitysolarfacility; HB2574 4 128 (10)Eachcommunitysolarfacilityshallbesubscribedwithatleasttenpercent 129low-incomecustomersandtwentypercentresidentialcustomers; 130 (11)Aretailelectricsuppliershallpurchaseunsubscribedenergyfroma 131communitysolarfacilityattheretailelectricsupplier'savoidedcostasapprovedbythe 132commission.NolaterthanninemonthsafterAugust28,2024,thecommissionshall 133establishregulationsnecessarytoeffectuatethissectionregardingthepurchaseof 134unsubscribedenergy; 135 (12)Noentity,affiliatedentity,orentitiesundercommoncontrolmaydevelop, 136own,oroperatemorethanonecommunitysolarfacilityonthesameparcelor 137contiguousparcelsofland. 138 4.Interconnectionstandardsforcommunitysolarfacilitiesunderonehundred 139kilowattsshallbethesameasthosefornet-meteredcustomerspursuanttosection 140386.890.Forsystemslargerthanonehundredkilowatts,thecommissionshalldevelop 141technicalandnetmeteringinterconnectionrulesforcustomer-generatorsintendingto 142operatecommunitysolarfacilitiesorrenewableonsitegeneratorsinparallelwiththe 143electricutilitygrid,consistentwithrulesdefinedinotherstateswithintheserviceregion 144oftheregionaltransmissionorganizationthatmanagesthetransmissionsysteminany 145partofthestate.Indevelopingitsrules,thecommissionshallconveneastakeholder 146processtodevelopstatewidetechnicalandnetmeteringrulesforcustomergenerators 147withsystemslargerthanonehundredkilowatts. 148 5.Thecommissionshallpromulgaterulesandregulationstoimplementthe 149provisionsofthissectionwithinninemonthsofAugust28,2024.Anyruleorportionof 150arule,asthattermisdefinedinsection536.010,thatiscreatedundertheauthority 151delegatedinthissectionshallbecomeeffectiveonlyifitcomplieswithandissubjectto 152alloftheprovisionsofchapter536and,ifapplicable,section536.028.Thissectionand 153chapter536arenonseverableandifanyofthepowersvestedwiththegeneralassembly 154pursuanttochapter536toreview,todelaytheeffectivedate,ortodisapproveandannul 155arulearesubsequentlyheldunconstitutional,thenthegrantofrulemakingauthority 156andanyruleproposedoradoptedafterAugust28,2024,shallbeinvalidandvoid. ✔ HB2574 5