FIRSTREGULARSESSION
HOUSEBILLNO.846
103RDGENERALASSEMBLY
INTRODUCEDBYREPRESENTATIVESTINNETT.
2033H.02I JOSEPHENGLER,ChiefClerk
ANACT
Torepealsections386.890and442.404,RSMo,andtoenactinlieuthereoftwonewsections
relatingtosolarenergysystems.
BeitenactedbytheGeneralAssemblyofthestateofMissouri,asfollows:
SectionA.Sections386.890and442.404,RSMo,arerepealedandtwonewsections
2enactedinlieuthereof,tobeknownassections386.890and442.404,toreadasfollows:
386.890.1.Thissectionshallbeknownandmaybecitedasthe"NetMeteringand
2EasyConnectionAct".
3 2.Asusedinthissection,thefollowingtermsshallmean:
4 (1)["Avoidedfuelcost",thecurrentaveragecostoffuelfortheentitygenerating
5electricity,asdefinedbythegoverningbodywithjurisdictionoveranymunicipalelectric
6utility,ruralelectriccooperativeasprovidedinchapter394,orelectricalcorporationas
7providedinthischapter;
8 (2)]"Commission",thepublicservicecommissionofthestateofMissouri;
9 [(3)](2)"Customer-generator",theowneroroperatorofaqualifiedelectricenergy
10generationunitwhich:
11 (a)Ispoweredbyarenewableenergyresource;
12 (b)Hasanelectricalgeneratingsystemwithacapacityofnotmorethanone
13[hundred] thousandkilowatts;
14 (c)Islocatedonapremisesowned,operated,leased,orotherwisecontrolledbythe
15customer-generatororutilityserviceterritorythroughvirtualnetmetering;
EXPLANATION—Matterenclosedinbold-facedbrackets[thus] intheabovebillisnotenactedandis
intendedtobeomittedfromthelaw.Matterinbold-facetypeintheabovebillisproposedlanguage. 16 (d)Isinterconnectedandoperatesinparallelphaseandsynchronizationwitharetail
17electricsupplierandhasbeenapprovedbysaidretailelectricsupplierorpublicservice
18commissionregulation;
19 (e)Isintendedprimarilytooffsetpartorallofthecustomer-generator's[own]
20currentorfutureelectricalenergyrequirements;
21 (f)[Meetsallapplicablesafety,performance,interconnection,andreliability
22standardsestablishedbytheNationalElectricalCode,theNationalElectricalSafetyCode,
23theInstituteofElectricalandElectronicsEngineers,UnderwritersLaboratories,theFederal
24EnergyRegulatoryCommission,andanylocalgoverningauthorities] Meetsthe
25requirementsoftheuniformedsolarpermitandinspectionformpromulgatedbythe
26commission; and
27 (g)Containsamechanismthatautomaticallydisablestheunitandinterruptstheflow
28ofelectricitybackontothesupplier'selectricitylinesintheeventthatservicetothecustomer-
29generatorisinterrupted;
30 [(4)](3)"Department",thedepartmentofnaturalresources;
31 [(5)](4)"Netmetering",usingmeteringequipmentsufficienttomeasurethe
32differencebetweentheelectricalenergysuppliedtoacustomer-generatorbyaretailelectric
33supplierandtheelectricalenergysuppliedbythecustomer-generatortotheretailelectric
34supplierovertheapplicablebillingperiod;
35 [(6)](5)"Renewableenergyresources",electricalenergyproducedfromwind,solar
36thermalsources,hydroelectricsources,photovoltaiccellsandpanels,fuelcellsusing
37hydrogenproducedbyoneoftheabove-namedelectricalenergysources,andothersourcesof
38energythatbecomeavailableafterAugust28,2007,andarecertifiedasrenewablebythe
39department;
40 [(7)](6)"Retailelectricrate",thetariffthatthecustomerwouldbeassignedif
41thecustomerwerenotaneligiblecustomer-generator;
42 (7)"Retailelectricsupplier"or"supplier",anymunicipallyownedelectricutility
43operatingunderchapter91,electricalcorporationregulatedbythecommissionunderthis
44chapter,orruralelectriccooperativeoperatingunderchapter394thatprovidesretailelectric
45serviceinthisstate.Anelectricalcorporationthatoperatesunderacooperativebusinessplan
46asdescribedinsubsection2ofsection393.110shallbedeemedtobearuralelectric
47cooperativeforpurposesofthissection.
48 3.Aretailelectricsuppliershall:
49 (1)Makenetmeteringavailabletocustomer-generatorsonafirst-come,first-served
50basisuntilthetotalratedgeneratingcapacityofnetmeteringsystemsequals[five] fifteen
51percentoftheretailelectricsupplier'ssingle-hourpeakloadduringthepreviousyear,after
52whichthecommissionforanelectricalcorporationortherespectivegoverningbodyofother
HB846 2 53retailelectricsuppliersmayincreasethetotalratedgeneratingcapacityofnetmetering
54systemstoanamountabove[five] fifteenpercent.However,inagivencalendaryear,no
55retailelectricsuppliershallberequiredtoapproveanyapplicationforinterconnectionifthe
56totalratedgeneratingcapacityofallapplicationsforinterconnectionalreadyapprovedtodate
57bysaidsupplierinsaidcalendaryearequalsorexceeds[one]twopercentofsaidsupplier's
58single-hourpeakloadforthepreviouscalendaryear;
59 (2)Offertothecustomer-generatortheretailelectricratethatisatarifforcontract
60thatisidenticalinelectricalenergyrates,ratestructure,andmonthlychargestothecontract
61ortariffthatthecustomerwouldbeassignedifthecustomerwerenotaneligiblecustomer-
62generatorbutshallnotchargethecustomer-generatoranyadditionalstandby,capacity,
63interconnection,orotherfeeorchargethatwouldnototherwisebechargedifthecustomer
64werenotaneligiblecustomer-generator;and
65 (3)Discloseannuallytheavailabilityofthenetmeteringprogramtoeachofits
66customerswiththemethodandmannerofdisclosurebeingatthediscretionofthe[supplier]
67commission.
68 4.Acustomer-generator'sfacilityshallbeequippedwithsufficientmetering
69equipmentthatcanmeasurethenetamountofelectricalenergyproducedorconsumedbythe
70customer-generator.Ifthecustomer-generator'sexistingmeterequipmentdoesnotmeet
71theserequirementsorifitisnecessaryfortheretailelectricsuppliertoinstalladditional
72distributionequipmenttoaccommodatethecustomer-generator'sfacility,thecustomer-
73generatorshallreimbursetheretailelectricsupplierforthecoststopurchaseandinstallthe
74necessaryadditionalequipmentapprovedbythecommission. Attherequestofthe
75customer-generator,suchcostsmaybeinitiallypaidforbytheretailelectricsupplier,andany
76amountuptothetotalcostsandareasonableinterestchargemayberecoveredfromthe
77customer-generatoroverthecourseofuptotwelvebillingcycles.Anysubsequentmeter
78testing,maintenanceormeterequipmentchangenecessitatedbythecustomer-generatorshall
79bepaidforbythecustomer-generator.
80 5.Consistentwiththeprovisionsinthissection,thenetelectricalenergy
81measurementshallbecalculatedinthefollowingmanner:
82 (1)Foracustomer-generator,aretailelectricsuppliershallmeasurethenetelectrical
83energyproducedorconsumedduringthebillingperiodinaccordancewithnormalmetering
84practicesforcustomersinthesamerateclass,eitherbyemployingasingle,bidirectional
85meterthatmeasurestheamountofelectricalenergyproducedandconsumed[, orby
86employingmultiplemetersthatseparatelymeasurethecustomer-generator'sconsumptionand
87productionofelectricity];
88 (2)Iftheelectricitysuppliedbythesupplierexceedstheelectricitygeneratedbythe
89customer-generatorduringabillingperiod,thecustomer-generatorshallbebilledforthenet
HB846 3 90electricitysuppliedbythesupplierinaccordancewithnormalpracticesforcustomersinthe
91samerateclass;
92 (3)Iftheelectricitygeneratedbythecustomer-generatorexceedstheelectricity
93suppliedbythesupplierduringabillingperiod,thecustomer-generatorshallbebilledforthe
94appropriatecustomerchargesforthatbillingperiodinaccordancewithsubsection3ofthis
95sectionandshallbecreditedanamountatleastequaltothe[avoidedfuel]retailelectriccost
96oftheexcesskilowatt-hoursgeneratedduringthebillingperiod,withthiscreditapplied[to
97thefollowingbillingperiod] anytimeduringthefollowingtwelve-monthperiod;
98 (4)Anycreditsgrantedbythissubsectionshallexpirewithoutanycompensationat
99theearlierofeithertwelvemonthsaftertheirissuanceorwhenthecustomer-generator
100disconnectsserviceorterminatesthenetmeteringrelationshipwiththesupplier[;
101 (5)Foranyruralelectriccooperativeunderchapter394,oranymunicipallyowned
102utility,uponagreementofthewholesalegeneratorsupplyingelectricenergytotheretail
103electricsupplier,attheoptionoftheretailelectricsupplier,thecredittothecustomer-
104generatormaybeprovidedbythewholesalegenerator].
105 6.(1)Eachqualifiedelectricenergygenerationunit[usedbyacustomer-generator
106shallmeetallapplicablesafety,performance,interconnection,andreliabilitystandards
107establishedbyanylocalcodeauthorities,theNationalElectricalCode,theNationalElectrical
108SafetyCode,theInstituteofElectricalandElectronicsEngineers,andUnderwriters
109Laboratoriesfordistributedgeneration.Nosuppliershallimposeanyfee,charge,orother
110requirementnotspecificallyauthorizedbythissectionortherulespromulgatedunder
111subsection9ofthissectionunlessthefee,charge,orotherrequirementwouldapplyto
112similarlysituatedcustomerswhoarenotcustomer-generators,exceptthataretailelectric
113suppliermayrequirethatacustomer-generator'ssystemcontainaswitch,circuitbreaker,
114fuse,orothereasilyaccessibledeviceorfeaturelocatedinimmediateproximitytothe
115customer-generator'smeteringequipmentthatwouldallowautilityworkertheabilityto
116manuallyandinstantlydisconnecttheunitfromtheutility'selectricdistributionsystem] shall
117meettherequirementsoftheuniformedsolarpermitandinspectionformpromulgated
118bythecommission.
119 (2)Forsystemsof[ten]onehundredkilowattsorless,acustomer-generatorwhose
120systemmeetsthestandardsandrulesundersubdivision(1)ofthissubsectionshallnotbe
121requiredtoinstalladditionalcontrols,performorpayforadditionaltestsordistribution
122equipment,orpurchaseadditionalliabilityinsurancebeyondwhatisrequiredunder
123subdivision(1)ofthissubsectionandsubsection4ofthissection.
124 (3)Forcustomer-generatorsystemsofgreaterthan[ten]onehundredkilowatts,the
125commissionforelectricalcorporationsandtherespectivegoverningbodyforotherretail
HB846 4 126electricsuppliersshall,byruleorequivalentformalactionbyeachrespectivegoverning
127body:
128 (a)Setforthsafety,performance,andreliabilitystandardsandrequirements;and
129 (b)Establishthequalificationsforexemptionfromarequirementtoinstalladditional
130controls,performorpayforadditionaltestsordistributionequipment,orpurchaseadditional
131liabilityinsurance.
132 7.(1)Applicationsbyacustomer-generatorforinterconnectionofaqualifiedelectric
133energygenerationunit[meetingtherequirementsofsubdivision(3)ofsubsection2ofthis
134sectiontothedistributionsystemshallbeaccompaniedbytheplanforthecustomer-
135generator'selectricalgeneratingsystem,includingbutnotlimitedtoawiringdiagramand
136specificationsforthegeneratingunit,andshallbereviewedandrespondedtobytheretail
137electricsupplierwithinthirtydaysofreceiptforsystemstenkilowattsorlessandwithin
138ninetydaysofreceiptforallothersystems] shallmeetcommissionstandardsandshallbe
139reviewedandrespondedtobytheelectricsupplierwithinthirtydaysortheapplication
140shallbeconsideredapproved. Priortotheinterconnectionofthequalifiedgenerationunit
141tothesupplier'ssystem,thecustomer-generatorwillfurnishtheretailelectricsuppliera
142certificationfromaqualifiedprofessionalelectricianorengineerthattheinstallationmeets
143therequirementsofsubdivision(1)ofsubsection6ofthissection.Iftheapplicationfor
144interconnectionisapprovedbytheretailelectricsupplierandthecustomer-generatordoesnot
145completetheinterconnectionwithinoneyearafterreceiptofnoticeoftheapproval,the
146approvalshallexpireandthecustomer-generatorshallberesponsibleforfilinganew
147application.
148 (2)Uponthechangeinownershipofaqualifiedelectricenergygenerationunit,the
149newcustomer-generatorshallberesponsibleforfilinganewapplicationundersubdivision
150(1)ofthissubsection.
151 8.Eachelectricalcorporationshallsubmitanannualnetmeteringreporttothe
152commission,andallotherretailelectricsuppliersshallsubmitthesamereporttotheir
153respectivegoverningbodyandmakesaidreportavailabletoaconsumerofthesupplierupon
154request,includingthefollowinginformationforthepreviouscalendaryear:
155 (1)Thetotalnumberofcustomer-generatorfacilities;
156 (2)Thetotalestimatedgeneratingcapacityofitsnet-meteredcustomer-generators;
157and
158 (3)Thetotalestimatednetkilowatt-hoursreceivedfromcustomer-generators.
159 9.Thecommissionshall,within[nine] sixmonthsofJanuary1,[2008] 2026,
160promulgateinitialrulesnecessaryfortheadministrationofthissectionforelectrical
161corporations,whichshallincluderegulationsensuringthatsimplecontractswillbeusedfor
162interconnectionandnetmetering.Forsystemsof[ten]onehundredkilowattsorless,the
HB846 5 163applicationprocessshalluseanall-in-onedocumentthatincludesasimpleinterconnection
164request,simpleprocedures,andabriefsetoftermsandconditions.Anyruleorportionofa
165rule,asthattermisdefinedinsection536.010,thatiscreatedundertheauthoritydelegatedin
166thissectionshallbecomeeffectiveonlyifitcomplieswithandissubjecttoallofthe
167provisionsofchapter536and,ifapplicable,section536.028.Thissectionandchapter536
168arenonseverableandifanyofthepowersvestedwiththegeneralassemblyunderchapter536
169toreview,todelaytheeffectivedate,ortodisapproveandannularulearesubsequentlyheld
170unconstitutional,thenthegrantofrulemakingauthorityandanyruleproposedoradopted
171afterAugust28,2007,shallbeinvalidandvoid.
172 10.[Thegoverningbodyofaruralelectriccooperativeormunicipalutilityshall,
173withinninemonthsofJanuary1,2008,adoptpoliciesestablishingasimplecontracttobe
174usedforinterconnectionandnetmetering.Forsystemsoftenkilowattsorless,the
175applicationprocessshalluseanall-in-onedocumentthatincludesasimpleinterconnection
176request,simpleprocedures,andabriefsetoftermsandconditions.] BeforeJanuary1,2026,
177thepublicservicecommissionshallcreateandimplementaunifiedsolarpermitand
178inspectionformandautomatedpermittingandinspectionsoftwareforsolarenergy
179devices.Municipalities,cities,homeowner'sassociations,regulatedutilities,
180unregulatedutilities,ruralelectriccooperatives,orotherpermittingandinspection
181authoritiesshallutilizesuchsoftwareandcollectfeesfromapplicantsforsolarenergy
182devicepermits.Thefeesshallbeforwardedtothepublicservicecommission.
183 11.Foranycauseofactionrelatingtoanydamagestopropertyorpersoncausedby
184thequalifiedelectricenergygenerationunitofacustomer-generatorortheinterconnection
185thereof,theretailelectricsuppliershallhavenoliabilityabsentclearandconvincingevidence
186offaultonthepartofthesupplier.
187 12.Theestimatedgeneratingcapacityofallnetmeteringsystemsoperatingunderthe
188provisionsofthissectionshallcounttowardstherespectiveretailelectricsupplier's
189accomplishmentofanyrenewableenergyportfoliotargetormandateadoptedbytheMissouri
190generalassembly.
191 13.Thesaleofqualifiedelectricenergygenerationunitstoanycustomer-generator
192shallbesubjecttotheprovisionsofsections407.010to407.145andsections407.700to
193407.720.Theattorneygeneralshallhavetheauthoritytopromulgateinaccordancewiththe
194provisionsofchapter536rulesregardingmandatorydisclosuresofinformationbysellersof
195qualifiedelectricenergygenerationunits.Anyinterestedpersonwhobelievesthattheseller
196ofanyqualifiedelectricenergygenerationunitismisrepresentingthesafetyorperformance
197standardsofanysuchsystems,orwhobelievesthatanyelectricenergygenerationunitposes
198adangertoanypropertyorperson,mayreportthesametotheattorneygeneral,whoshallbe
199authorizedtoinvestigatesuchclaimsandtakeanynecessaryandappropriateactions.
HB846 6 200 14.Anycostsincurredunderthisactbyaretailelectricsuppliershallberecoverable
201inthatutility'sratestructure.
202 15.Noconsumershallconnectoroperateaqualifiedelectricenergygenerationunit
203inparallelphaseandsynchronizationwithanyretailelectricsupplierwithoutwritten
204approvalbysaidsupplierthatalloftherequirementsundersubdivision(1)ofsubsection7of
205thissectionhavebeenmet.Foraconsumerwhoviolatesthisprovision,asuppliermay
206immediatelyandwithoutnoticedisconnecttheelectricfacilitiesofsaidconsumerand
207terminatesaidconsumer'selectricservice.
208 16.Themanufacturerofanyqualifiedelectricenergygenerationunitusedbya
209customer-generatormaybeheldliableforanydamagestopropertyorpersoncausedbya
210defectinthequalifiedelectricenergygenerationunitofacustomer-generator.
211 17.Theseller,installer,ormanufacturerofanyqualifiedelectricenergygeneration
212unitwhoknowinglymisrepresentsthesafetyaspectsofaqualifiedelectricgenerationunit
213maybeheldliableforanydamagestopropertyorpersoncausedbythequalifiedelectric
214energygenerationunitofacustomer-generator.
442.404.1.Asusedinthissection,thefollowingtermsshallmean:
2 (1)"Homeowners'association",anonprofitcorporationorunincorporatedassociation
3ofhomeownerscreatedunderadeclarationtoownandoperateportionsofaplanned
4communityorotherresidentialsubdivisionthathasthepowerunderthedeclarationtoassess
5associationmemberstopaythecostsandexpensesincurredintheperformanceofthe
6association'sobligationsunderthedeclarationortenants-in-commonwithrespecttothe
7ownershipofcommongroundoramenitiesofaplannedcommunityorotherresidential
8subdivision.Thistermshallnotincludeacondominiumunitowners'associationasdefined
9andprovidedforinsubdivision(3)ofsection448.1-103oraresidentialcooperative;
10 (2)"Politicalsigns",anyfixed,ground-mounteddisplayinsupportoforinopposition
11toapersonseekingelectedofficeoraballotmeasureexcludinganymaterialsthatmaybe
12attached;
13 (3)"Reasonablerules",rulesthatdonotincludetheaestheticsforthesolar
14panelorsolarcollectorofplacement.No"reasonablerule"shallspecificallyprohibit
15street-facingsolarpanelsorsolarcollectors;
16 (4)"Solarpanelorsolarcollector",adeviceusedtocollectandconvertsolarenergy
17intoelectricityorthermalenergy,includingbutnotlimitedtophotovoltaiccellsorpanels,or
18solarthermalsystems.
19 2.(1)Nodeedrestrictions,covenants,orsimilarbindingagreementsrunningwith
20thelandshallprohibitorhavetheeffectofprohibitingthedisplayofpoliticalsigns.
HB846 7 21 (2)Ahomeowners'associationhastheauthoritytoadoptreasonablerules,subjectto
22anyapplicablestatutesorordinances,regardingthetime,size,place,number,andmannerof
23displayofpoliticalsigns.
24 (3)Ahomeowners'associationmayremoveapoliticalsignwithoutliabilityifsuch
25signisplacedwithinthecommonground,threatensthepublichealthorsafety,violatesan
26applicablestatuteorordinance,isaccompaniedbysoundormusic,orifanyothermaterials
27areattachedtothepoliticalsign.Subjecttotheforegoing,ahomeowners'associationshall
28notremoveapoliticalsignfromthepropertyofahomeownerorimposeanyfineorpenalty
29uponthehomeownerunlessithasgivensuchhomeownerthreedaysafterprovidingwritten
30noticetothehomeowner,whichnoticeshallspecificallyidentifytheruleandthenatureofthe
31violation.
32 3.(1)Nodeedrestrictions,covenants,orsimilarbindingagreementsrunningwith
33thelandshalllimitorprohibit,orhavetheeffectoflimitingorprohibiting,theinstallationof
34solarpanelsorsolarcollectorsontherooftopofanypropertyorstructure.
35 (2)Ahomeowners'associationmayadoptreasonablerules,subjecttoanyapplicable
36statutesorordinances,regardingtheplacementofsolarpanelsorsolarcollectorstotheextent
37thatthoserulesdonotpreventtheinstallationofthedevice,impairthefunctioningofthe
38device,restricttheuseofthedevice,oradverselyaffectthecostorefficiencyofthedevice.
39 (3)Theprovisionsofthissubsectionshallapplyonlywithregardtorooftopsthatare
40owned,controlled,andmaintainedbytheowneroftheindividualpropertyorstructure.
41 (4)Ahomeowner'sassociationshalldenyorrequestresubmissionofany
42applicationsforsolarpanelsorsolarcollectorswithinthirtydaysofreceiptorthe
43applicationshallbeconsideredapproved.
44 (5)Ahomeowner'sassociationshallnotrequireanapplicationforsolarpanels
45orsolarcollectorstopassrevieworbeapprovedbyanycommitteeorboarddesignedto
46addressarchitecturaloraestheticqualitiesorconditions.
47 4.(1)Nodeedrestrictions,covenants,orsimilarbindingagreementsrunningwith
48thelandshallprohibitorhavetheeffectofprohibitingthedisplayofsalesignsonthe
49propertyofahomeownerorpropertyownerincluding,butnotlimitedto,anyyardonthe
50property,ornearbystreetcorners.
51 (2)Ahomeowners'associationhastheauthoritytoadoptreasonablerules,subjectto
52anyapplicablestatutesorordinances,regardingthetime,size,place,number,andmannerof
53displayofsalesigns.
54 (3)Ahomeowners'associationmayremoveasalesignwithoutliabilityifsuchsignis
55placedwithinthecommonground,threatensthepublichealthorsafety,violatesanapplicable
56statuteorordinance,isaccompaniedbysoundormusic,orifanyothermaterialsareattached
57tothesalesign.Subjecttotheforegoing,ahomeowners'associationshallnotremoveasale
HB846 8 58signfromthepropertyofahomeownerorpropertyownerorimposeanyfineorpenaltyupon
59thehomeownerorpropertyownerunlessithasgivensuchhomeownerorpropertyowner
60threebusinessdaysafterthehomeownerorpropertyownerreceiveswrittennoticefromthe
61homeowners'association,whichnoticeshallspecificallyidentifytheruleandthenatureof
62theallegedviolation.
63 5.(1)Nodeedrestrictions,covenants,orsimilarbindingagreementsrunningwith
64thelandshallprohibitorhavetheeffectofprohibitingownershiporpasturingofuptosix
65chickensonalotthatistwo-tenthsofanacreorlarger,includingprohibitionsagainstasingle
66chickencoopdesignedtoaccommodateuptosixchickens.
67 (2)Ahomeowners'associationmayadoptreasonablerules,subjecttoapplicable
68statutesorordinances,regardingownershiporpasturingofchickens,includingaprohibition
69orrestrictiononownershiporpasturingofroosters.
âś”
HB846 9