1 | 1 | | |
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2 | 2 | | FIRST REGULAR SESSION |
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3 | 3 | | SENATE BILL NO. 139 |
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4 | 4 | | 103RD GENERAL ASSEMBLY |
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5 | 5 | | INTRODUCED BY SENATOR BLACK. |
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6 | 6 | | 0653S.01I KRISTINA MARTIN, Secretary |
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7 | 7 | | AN ACT |
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8 | 8 | | To repeal sections 393.170 and 523.010, RSMo, and to enact in lieu thereof three new sections |
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9 | 9 | | relating to electric utilities. |
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10 | 10 | | |
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11 | 11 | | Be it enacted by the General Assembly of the State of Missouri, as follows: |
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12 | 12 | | Section A. Sections 393.170 and 523.010, RSMo, are 1 |
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13 | 13 | | repealed and three new sections enacted in lieu thereof, to be 2 |
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14 | 14 | | known as sections 393.170, 393.172, and 523.010, to read as 3 |
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15 | 15 | | follows:4 |
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16 | 16 | | 393.170. 1. No gas corporation, electrical 1 |
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17 | 17 | | corporation, water corporation or sewer corporation shall 2 |
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18 | 18 | | begin construction of a gas plant, electric plant, water 3 |
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19 | 19 | | system or sewer system, other than an energy generation unit 4 |
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20 | 20 | | that has a capacity of one megawatt or less, without first 5 |
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21 | 21 | | having obtained the permission and approval of the 6 |
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22 | 22 | | commission. 7 |
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23 | 23 | | 2. No such corporation shall exercise any right or 8 |
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24 | 24 | | privilege under any franchise hereafter granted, or under 9 |
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25 | 25 | | any franchise heretofore granted but not heretofore actually 10 |
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26 | 26 | | exercised, or the exercise of which shall have been 11 |
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27 | 27 | | suspended for more than one year, witho ut first having 12 |
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28 | 28 | | obtained the permission and approval of the commission. 13 |
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29 | 29 | | Before such certificate shall be issued a certified copy of 14 |
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30 | 30 | | the charter of such corporation shall be filed in the office 15 |
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31 | 31 | | of the commission, together with a verified statement of t he 16 |
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32 | 32 | | president and secretary of the corporation, showing that it 17 SB 139 2 |
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33 | 33 | | has received the required consent of the proper municipal 18 |
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34 | 34 | | authorities. 19 |
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35 | 35 | | 3. The commission shall have the power to grant the 20 |
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36 | 36 | | permission and approval herein specified whenever it shall 21 |
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37 | 37 | | after due hearing determine that such construction or such 22 |
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38 | 38 | | exercise of the right, privilege or franchise is necessary 23 |
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39 | 39 | | or convenient for the public service. The commission may by 24 |
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40 | 40 | | its order impose such condition or conditions as it may deem 25 |
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41 | 41 | | reasonable and necessary. Unless exercised within a period 26 |
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42 | 42 | | of two years from the grant thereof, authority conferred by 27 |
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43 | 43 | | such certificate of convenience and necessity issued by the 28 |
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44 | 44 | | commission shall be null and void. 29 |
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45 | 45 | | 4. (1) The provisions of this subsection sh all apply 30 |
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46 | 46 | | when the permission and approval sought from the commission 31 |
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47 | 47 | | under subsection 1 of this section is for the construction 32 |
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48 | 48 | | of electric transmission facilities approved by a regional 33 |
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49 | 49 | | transmission operator. To the greatest extent practical, 34 |
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50 | 50 | | such electric transmission facilities shall be designed, 35 |
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51 | 51 | | consistent with electric industry standards, to utilize a 36 |
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52 | 52 | | multi-circuit configuration, be sited with or along existing 37 |
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53 | 53 | | above-ground infrastructure, or replace or upgrade existing 38 |
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54 | 54 | | above-ground infrastructure, whether or not the existing 39 |
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55 | 55 | | electric transmission facility infrastructure utilized is 40 |
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56 | 56 | | owned by an electrical corporation that owns in -service 41 |
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57 | 57 | | electric transmission facilities in this state that are 42 |
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58 | 58 | | under the functional control of a regional tra nsmission 43 |
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59 | 59 | | operator. Electric transmission facilities need not be 44 |
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60 | 60 | | designed as provided in the immediately preceding sentence 45 |
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61 | 61 | | if the commission determines in a proceeding pursuant to 46 |
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62 | 62 | | which permission and approval is sought under subsection 1 47 |
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63 | 63 | | of this section that such a design is inconsistent with 48 |
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64 | 64 | | electric industry standards, is inconsistent with the 49 SB 139 3 |
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65 | 65 | | reliability basis given for the electric transmission 50 |
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66 | 66 | | facilities project, or is not in the best interest of the 51 |
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67 | 67 | | electrical corporation's customers or, t o the extent the 52 |
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68 | 68 | | electrical corporation does not directly serve retail 53 |
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69 | 69 | | customers, the interests of the electric customers whose 54 |
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70 | 70 | | retail rates will reflect the majority of the costs of the 55 |
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71 | 71 | | electric transmission facilities to -be-constructed. In 56 |
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72 | 72 | | addition, to the extent such electric transmission 57 |
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73 | 73 | | facilities will be sited with or along or will replace or 58 |
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74 | 74 | | upgrade existing above -ground electrical infrastructure that 59 |
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75 | 75 | | is not owned by an entity seeking permission and approval 60 |
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76 | 76 | | pursuant to an application filed under subsection 1 of this 61 |
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77 | 77 | | section or by its affiliate, the entity or entities that 62 |
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78 | 78 | | will own the new electric transmission facilities subject to 63 |
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79 | 79 | | the application shall obtain from the underlying fee owners 64 |
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80 | 80 | | independent real estate rights necessary to ac commodate the 65 |
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81 | 81 | | installation and operation thereof. Nothing in this 66 |
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82 | 82 | | subdivision shall relieve such entity or entities of the 67 |
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83 | 83 | | obligations contained in sections 523.039 or 523.256, to the 68 |
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84 | 84 | | extent those obligations would otherwise apply. 69 |
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85 | 85 | | (2) In addition to the design requirements in 70 |
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86 | 86 | | subdivision (1) of this subsection, each electrical 71 |
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87 | 87 | | corporation seeking permission and approval under subsection 72 |
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88 | 88 | | 1 of this section shall competitively bid the major 73 |
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89 | 89 | | construction components of each project for which perm ission 74 |
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90 | 90 | | and approval is sought and shall utilize competitive 75 |
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91 | 91 | | sourcing strategies for all related major materials. 76 |
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92 | 92 | | (3) Only electrical corporations that own in -service 77 |
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93 | 93 | | electric transmission facilities in this state that are 78 |
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94 | 94 | | under the functional con trol of a regional transmission 79 |
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95 | 95 | | operator and to which the electric transmission facilities 80 |
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96 | 96 | | subject to the application will connect, either initially or 81 SB 139 4 |
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97 | 97 | | once construction of all electric transmission facilities 82 |
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98 | 98 | | approved by the regional transmission oper ator as of the 83 |
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99 | 99 | | time of the commission's approval of the application are 84 |
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100 | 100 | | completed, may file applications with the commission for 85 |
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101 | 101 | | permission and approval to construct the electric 86 |
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102 | 102 | | transmission facilities described in this subsection. 87 |
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103 | 103 | | Within ninety days following approval of the construction of 88 |
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104 | 104 | | electric transmission facilities by the applicable regional 89 |
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105 | 105 | | transmission operator, an electric corporation seeking 90 |
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106 | 106 | | permission and approval for electric transmission facilities 91 |
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107 | 107 | | under the provisions of this su bsection may notify the 92 |
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108 | 108 | | commission that it will not construct any or some portion of 93 |
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109 | 109 | | the facilities approved. If such notice is given and 94 |
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110 | 110 | | indicates the notifying electrical corporation will not 95 |
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111 | 111 | | construct any of the facilities approved, the commission m ay 96 |
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112 | 112 | | grant permission and approval for such facilities' 97 |
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113 | 113 | | construction to any other electrical corporation. If such 98 |
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114 | 114 | | notice indicates that it will assign all or a portion of the 99 |
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115 | 115 | | facilities approved to another electrical corporation, the 100 |
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116 | 116 | | commission may grant permission and approval for the 101 |
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117 | 117 | | facilities that were assigned to the assignee electrical 102 |
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118 | 118 | | corporation and such electrical corporation's construction 103 |
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119 | 119 | | of the facilities will be subject to this subsection. 104 |
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120 | 120 | | (4) This subsection shall not limit the ri ght of any 105 |
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121 | 121 | | electrical corporation to seek permission and approval from 106 |
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122 | 122 | | the commission to construct, operate, and maintain electric 107 |
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123 | 123 | | transmission facilities in this state that will not 108 |
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124 | 124 | | initially connect to electric transmission facilities in 109 |
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125 | 125 | | this state that are not under the functional control of a 110 |
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126 | 126 | | regional transmission operator. This subsection shall also 111 |
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127 | 127 | | not limit the right of any electrical corporation, any 112 |
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128 | 128 | | municipal utility operating under chapter 91, any joint 113 SB 139 5 |
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129 | 129 | | electric utility commission operat ing under chapter 393, any 114 |
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130 | 130 | | rural electric cooperative organized or operating under 115 |
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131 | 131 | | chapter 394, any corporation organized on a nonprofit or a 116 |
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132 | 132 | | cooperative basis as described in subsection 1 of section 117 |
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133 | 133 | | 394.200, or any electrical corporation operating und er the 118 |
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134 | 134 | | not-for-profit cooperative business plan as described in 119 |
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135 | 135 | | subsection 2 of section 393.110 to construct, operate, and 120 |
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136 | 136 | | maintain electric transmission facilities in this state that 121 |
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137 | 137 | | are not under the functional control of a regional 122 |
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138 | 138 | | transmission operator. 123 |
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139 | 139 | | (5) In considering applications under this subsection, 124 |
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140 | 140 | | the commission shall take into account the importance of 125 |
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141 | 141 | | construction of electric transmission facilities in the 126 |
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142 | 142 | | state needed to support Missouri's economy, the benefits of 127 |
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143 | 143 | | electric transmission facility construction to Missouri 128 |
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144 | 144 | | customers, and the importance of transmission facility 129 |
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145 | 145 | | construction in ensuring reliable electric service in the 130 |
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146 | 146 | | state in the twenty-first century and beyond. 131 |
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147 | 147 | | (6) For the purposes of this subsection, th e following 132 |
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148 | 148 | | terms shall mean: 133 |
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149 | 149 | | (a) "Electric transmission facilities", a transmission 134 |
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150 | 150 | | line that is designed and constructed with the capability of 135 |
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151 | 151 | | being safely and reliably energized at one hundred kilovolts 136 |
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152 | 152 | | or more and associated transmission fac ilities, including 137 |
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153 | 153 | | substations; 138 |
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154 | 154 | | (b) "Regional transmission operator", a regional 139 |
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155 | 155 | | transmission organization, independent system operator, or 140 |
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156 | 156 | | equivalent entity approved by the Federal Energy Regulatory 141 |
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157 | 157 | | Commission or its successor agency that exerci ses functional 142 |
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158 | 158 | | control over electric transmission facilities located within 143 |
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159 | 159 | | this state. 144 SB 139 6 |
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160 | 160 | | 393.172. By March 31, 2026, the commission shall adopt 1 |
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161 | 161 | | rules applicable to electrical corporations that require the 2 |
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162 | 162 | | entity constructing an elect ric transmission line under 3 |
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163 | 163 | | subsection 1 of section 393.170 for which permission is 4 |
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164 | 164 | | sought from the commission on or after the effective date of 5 |
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165 | 165 | | this section to adhere to standards to be adopted by such 6 |
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166 | 166 | | rules relating to construction activities occurri ng 7 |
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167 | 167 | | partially or wholly on privately owned agricultural land. 8 |
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168 | 168 | | Such standards shall address, at a minimum, landowner 9 |
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169 | 169 | | communication expectations, expectations with respect to 10 |
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170 | 170 | | transmission structure design and placement, wet weather 11 |
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171 | 171 | | construction and reme diation practices, agricultural 12 |
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172 | 172 | | mitigation and restoration practices, construction -related 13 |
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173 | 173 | | tree and brush clearing, expectations concerning the use and 14 |
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174 | 174 | | restoration of field entrances and temporary roads, and best 15 |
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175 | 175 | | practices with respect to erosion preve ntion. 16 |
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176 | 176 | | 523.010. 1. In case land, or other property, is 1 |
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177 | 177 | | sought to be appropriated by any road, railroad, street 2 |
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178 | 178 | | railway, telephone, telegraph or any electrical corporation 3 |
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179 | 179 | | organized for the manufacture or transmission of electric 4 |
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180 | 180 | | current for light, heat or power, including the 5 |
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181 | 181 | | construction, when that is the case, of necessary dams and 6 |
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182 | 182 | | appurtenant canals, flumes, tunnels and tailraces and 7 |
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183 | 183 | | including the erection, when that is the case, of necessary 8 |
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184 | 184 | | electric steam powerhouses, hydro electric powerhouses and 9 |
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185 | 185 | | electric substations or any oil, pipeline or gas corporation 10 |
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186 | 186 | | engaged in the business of transporting or carrying oil, 11 |
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187 | 187 | | liquid fertilizer solutions, or gas by means of pipes or 12 |
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188 | 188 | | pipelines laid underneath the surface of the ground, or 13 |
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189 | 189 | | other corporation created under the laws of this state for 14 |
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190 | 190 | | public use, and such corporation and the owners cannot agree 15 |
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191 | 191 | | upon the proper compensation to be paid, or in the case the 16 SB 139 7 |
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192 | 192 | | owner is incapable of contracting, be unknown, or be a 17 |
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193 | 193 | | nonresident of the state, such corporation may apply to the 18 |
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194 | 194 | | circuit court of the county of this state where such land or 19 |
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195 | 195 | | any part thereof lies by petition setting forth the general 20 |
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196 | 196 | | directions in which it is desired to construct its road, 21 |
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197 | 197 | | railroad, street railway, telephone, or telegraph line or 22 |
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198 | 198 | | electric line, including, when that is the case, the 23 |
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199 | 199 | | construction and maintenance of necessary dams and 24 |
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200 | 200 | | appurtenant canals, tunnels, flumes and tailraces and, when 25 |
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201 | 201 | | that is the case, the appropriation of land submerged by the 26 |
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202 | 202 | | construction of such dam, and including the erection and 27 |
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203 | 203 | | maintenance, when that is the case, of necessary electric 28 |
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204 | 204 | | steam powerhouses, hydroelectric powerhouses and electric 29 |
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205 | 205 | | substations, or oil, pipeline, liquid fertilizer solution 30 |
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206 | 206 | | pipeline, or gas line over or underneath the surface of such 31 |
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207 | 207 | | lands, a description of the real estate, or other property, 32 |
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208 | 208 | | which the company seeks to acquire; the names of the owners 33 |
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209 | 209 | | thereof, if known; or if unknown, a pertinent description of 34 |
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210 | 210 | | the property whose owners are unknown and praying the 35 |
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211 | 211 | | appointment of three disinterested residents of the county, 36 |
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212 | 212 | | as commissioners, or a jury, to assess the damages which 37 |
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213 | 213 | | such owners may severally sustain in consequence of the 38 |
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214 | 214 | | establishment, erection and maintenance of such ro ad, 39 |
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215 | 215 | | railroad, street railway, telephone, telegraph line, or 40 |
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216 | 216 | | electrical line including damages from the construction and 41 |
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217 | 217 | | maintenance of necessary dams and the condemnation of land 42 |
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218 | 218 | | submerged thereby, and the construction and maintenance of 43 |
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219 | 219 | | appurtenant canals, flumes, tunnels and tailraces and the 44 |
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220 | 220 | | erection and maintenance of necessary electric steam 45 |
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221 | 221 | | powerhouses, hydroelectric powerhouses and electric 46 |
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222 | 222 | | substations, or oil, pipeline, or gas line over or 47 |
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223 | 223 | | underneath the surface of such lands; to which peti tion the 48 SB 139 8 |
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224 | 224 | | owners of any or all as the plaintiff may elect of such 49 |
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225 | 225 | | parcels as lie within the county or circuit may be made 50 |
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226 | 226 | | parties defendant by names if the names are known, and by 51 |
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227 | 227 | | the description of the unknown owners of the land therein 52 |
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228 | 228 | | described if their names are unknown. 53 |
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229 | 229 | | 2. If the proceedings seek to affect the lands of 54 |
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230 | 230 | | persons under conservatorship, the conservators must be made 55 |
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231 | 231 | | parties defendant. If the present owner of any land to be 56 |
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232 | 232 | | affected has less estate than a fee, the person havin g the 57 |
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233 | 233 | | next vested estate in remainder may at the option of the 58 |
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234 | 234 | | petitioners be made party defendant; but if such 59 |
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235 | 235 | | remaindermen are not made parties, their interest shall not 60 |
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236 | 236 | | be bound by the proceedings. 61 |
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237 | 237 | | 3. It shall not be necessary to make any pers ons party 62 |
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238 | 238 | | defendants in respect to their ownership unless they are 63 |
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239 | 239 | | either in actual possession of the premises to be affected 64 |
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240 | 240 | | claiming title or having a title of the premises appearing 65 |
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241 | 241 | | of record upon the proper records of the county. 66 |
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242 | 242 | | 4. Except as provided in subsection 5 of this section, 67 |
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243 | 243 | | nothing in this chapter shall be construed to give a public 68 |
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244 | 244 | | utility, as defined in section 386.020, or a rural electric 69 |
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245 | 245 | | cooperative, as provided in chapter 394, the power to 70 |
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246 | 246 | | condemn property which is currently used by another provider 71 |
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247 | 247 | | of public utility service, including a municipality or a 72 |
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248 | 248 | | special purpose district, when such property is used or 73 |
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249 | 249 | | useful in providing utility services, if the public utility 74 |
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250 | 250 | | or cooperative seeking to condemn such property, dire ctly or 75 |
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251 | 251 | | indirectly, will use or proposes to use the property for the 76 |
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252 | 252 | | same purpose, or a purpose substantially similar to the 77 |
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253 | 253 | | purpose for which the property is being used by the provider 78 |
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254 | 254 | | of the public utility service. 79 SB 139 9 |
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255 | 255 | | 5. A public utility or a rura l electric cooperative 80 |
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256 | 256 | | may only condemn the property of another provider of public 81 |
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257 | 257 | | utility service, even if the property is used or useful in 82 |
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258 | 258 | | providing utility services by such provider, if the 83 |
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259 | 259 | | condemnation is necessary for the public purpose of 84 |
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260 | 260 | | acquiring a nonexclusive easement or right -of-way across the 85 |
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261 | 261 | | property of such provider and only if the acquisition will 86 |
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262 | 262 | | not materially impair or interfere with the current use of 87 |
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263 | 263 | | such property by the utility or cooperative and will not 88 |
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264 | 264 | | prevent or materially impair such provider of public utility 89 |
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265 | 265 | | service from any future expansion of its facilities on such 90 |
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266 | 266 | | property. 91 |
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267 | 267 | | 6. If a public utility or rural electric cooperative 92 |
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268 | 268 | | seeks to condemn the property of another provider of public 93 |
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269 | 269 | | utility service, and th e conditions in subsection 4 of this 94 |
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270 | 270 | | section do not apply, this section does not limit the 95 |
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271 | 271 | | condemnation powers otherwise possessed by such public 96 |
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272 | 272 | | utility or rural electric cooperative. 97 |
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273 | 273 | | 7. Suits in inverse condemnation or involving 98 |
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274 | 274 | | dangerous conditions of public property against a municipal 99 |
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275 | 275 | | corporation established under Article VI, Section 30(a) of 100 |
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276 | 276 | | the Missouri Constitution shall be brought only in the 101 |
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277 | 277 | | county where such land or any part thereof lies. 102 |
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278 | 278 | | 8. For purposes of this chapter, the au thority for an 103 |
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279 | 279 | | electrical corporation as defined in section 386.020, except 104 |
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280 | 280 | | for an electrical corporation operating under a cooperative 105 |
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281 | 281 | | business plan as described in section 393.110, to condemn 106 |
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282 | 282 | | property for purposes of constructing an electric plant 107 |
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283 | 283 | | subject to a certificate of public convenience and necessity 108 |
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284 | 284 | | under subsection 1 of section 393.170 shall not extend to 109 |
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285 | 285 | | the construction of a merchant transmission line with 110 |
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286 | 286 | | Federal Energy Regulatory Commission negotiated rate 111 SB 139 10 |
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287 | 287 | | authority unless such line has a substation or converter 112 |
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288 | 288 | | station located in Missouri which is capable of delivering 113 |
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289 | 289 | | an amount of its electrical capacity to electrical customers 114 |
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290 | 290 | | in this state that is greater than or equal to the 115 |
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291 | 291 | | proportionate number of miles of the line that pass es 116 |
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292 | 292 | | through the state. The provisions of this subsection shall 117 |
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293 | 293 | | not apply to applications filed pursuant to section 393.170 118 |
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294 | 294 | | prior to August 28, 2022. 119 |
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295 | 295 | | 9. For the purposes of this chapter, the authority of 120 |
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296 | 296 | | any corporation set forth in subsection 1 o f this section to 121 |
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297 | 297 | | condemn property shall not extend to: 122 |
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298 | 298 | | (1) The construction or erection of any plant, tower, 123 |
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299 | 299 | | panel, or facility that utilizes, captures, or converts wind 124 |
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300 | 300 | | or air currents to generate or manufacture electricity; or 125 |
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301 | 301 | | (2) The construction or erection of any plant, tower, 126 |
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302 | 302 | | panel, or facility that utilizes, captures, or converts the 127 |
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303 | 303 | | light or heat generated by the sun to generate or 128 |
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304 | 304 | | manufacture electricity. 129 |
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305 | 305 | | 10. Subject to subsection 8 of this section, but 130 |
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306 | 306 | | notwithstanding subsection 9 of this section, the authority 131 |
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307 | 307 | | of any corporation set forth in subsection 1 of this section 132 |
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308 | 308 | | to condemn property shall extend to acquisition of rights 133 |
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309 | 309 | | needed to construct, operate, and maintain collection lines, 134 |
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310 | 310 | | distribution lines, transmissio n lines, communications 135 |
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311 | 311 | | lines, substations, switchyards, and other facilities needed 136 |
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312 | 312 | | to collect and deliver energy generated or manufactured by 137 |
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313 | 313 | | the facilities described in subsection 9 of this section to 138 |
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314 | 314 | | the distribution or transmission grid. 139 |
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315 | 315 | | |
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