EXPLANATION-Matter enclosed in bold-faced brackets [thus] in this bill is not enacted
and is intended to be omitted in the law.
FIRST REGULAR SESSION
SENATE BILL NO. 369
103RD GENERAL ASSEMBLY
INTRODUCED BY SENATOR BRATTIN.
1428S.01I KRISTINA MARTIN, Secretary
AN ACT
To repeal sections 386.890 and 442.404, RSMo, and to enact in lieu thereof two new sections
relating to solar energy systems.
Be it enacted by the General Assembly of the State of Missouri, as follows:
Section A. Sections 386.890 and 442.404, RSMo, are 1
repealed and two new sections enacted in lieu thereof, to be 2
known as sections 386.890 and 442.404, to read as fol lows:3
386.890. 1. This section shall be known and may be 1
cited as the "Net Metering and Easy Connection Act". 2
2. As used in this section, the following terms shall 3
mean: 4
(1) ["Avoided fuel cost", the current average cost of 5
fuel for the entity generating electricity, as defined by 6
the governing body with jurisdiction over any municipal 7
electric utility, rural electric cooperative as provided in 8
chapter 394, or electrical corporation as provided in this 9
chapter; 10
(2)] "Commission", the public service commission of 11
the state of Missouri; 12
[(3)] (2) "Customer-generator", the owner or operator 13
of a qualified electric energy generation unit which: 14
(a) Is powered by a renewable energy resource; 15
(b) Has an electrical generating system with a 16
capacity of not more than one [hundred] thousand kilowatts; 17 SB 369 2
(c) Is located on a premises owned, operated, leased, 18
or otherwise controlled by the customer -generator or utility 19
service territory through virtual net meteri ng; 20
(d) Is interconnected and operates in parallel phase 21
and synchronization with a retail electric supplier and has 22
been approved by said retail electric supplier or public 23
service commission regulation ; 24
(e) Is intended primarily to offset part or all of the 25
customer-generator's [own] current or future electrical 26
energy requirements; 27
(f) Meets [all applicable safety, performance, 28
interconnection, and reliability standards established by 29
the National Electrical Code, the National El ectrical Safety 30
Code, the Institute of Electrical and Electronics Engineers, 31
Underwriters Laboratories, the Federal Energy Regulatory 32
Commission, and any local governing authorities ] the 33
requirements of the uniformed solar permit and inspection 34
form promulgated by the commission ; and 35
(g) Contains a mechanism that automatically disables 36
the unit and interrupts the flow of electricity back onto 37
the supplier's electricity lines in the event that service 38
to the customer-generator is interrupted; 39
[(4)] (3) "Department", the department of natural 40
resources; 41
[(5)] (4) "Net metering", using metering equipment 42
sufficient to measure the difference between the electrical 43
energy supplied to a customer -generator by a retail electric 44
supplier and the electrical energy supplied by the customer - 45
generator to the retail electric supplier over the 46
applicable billing period; 47
[(6)] (5) "Renewable energy resources", electrical 48
energy produced from wind, solar thermal sources, 49 SB 369 3
hydroelectric sources, photovoltaic cells and panels, fuel 50
cells using hydrogen produced by one of the above -named 51
electrical energy sources, and other sources of energy that 52
become available after August 28, 2007, and are certified as 53
renewable by the department; 54
(6) "Retail electric rate", the tariff that the 55
customer would be assigned if the customer were not an 56
eligible customer-generator; 57
(7) "Retail electric supplier" or "supplier", any 58
municipally owned electric utility operating under chapter 59
91, electrical corporation regulated by the commission under 60
this chapter, or rural electric cooperative operating under 61
chapter 394 that provides retail electric service in this 62
state. An electrical corporation that operates under a 63
cooperative business plan as described in subsection 2 of 64
section 393.110 shall be deemed to be a rural electric 65
cooperative for purposes of this section. 66
3. A retail electric supplier shall: 67
(1) Make net metering available to customer -generators 68
on a first-come, first-served basis until the total rated 69
generating capacity of net metering systems equals [five] 70
fifteen percent of the retail electric supplier's single - 71
hour peak load during the previous year, after which the 72
commission for an electrical corp oration or the respective 73
governing body of other retail electric suppliers may 74
increase the total rated generating capacity of net metering 75
systems to an amount above [five] fifteen percent. However, 76
in a given calendar year, no retail electric suppl ier shall 77
be required to approve any application for interconnection 78
if the total rated generating capacity of all applications 79
for interconnection already approved to date by said 80
supplier in said calendar year equals or exceeds [one] two 81 SB 369 4
percent of said supplier's single -hour peak load for the 82
previous calendar year; 83
(2) Offer to the customer -generator the retail 84
electric rate that is a tariff or contract that is identical 85
in electrical energy rates, rate structure, and monthly 86
charges to the contract or tariff that the customer would be 87
assigned if the customer were not an eligible customer - 88
generator but shall not charge the customer -generator any 89
additional standby, capacity, interconnection, or other fee 90
or charge that would not other wise be charged if the 91
customer were not an eligible customer -generator; and 92
(3) Disclose annually the availability of the net 93
metering program to each of its customers with the method 94
and manner of disclosure being at the discretion of the 95
[supplier] commission. 96
4. A customer-generator's facility shall be equipped 97
with sufficient metering equipment that can measure the net 98
amount of electrical energy produced or consumed by the 99
customer-generator. If the customer-generator's existing 100
meter equipment does not meet these requirements or if it is 101
necessary for the retail electric supplier to install 102
additional distribution equipment to accommodate the 103
customer-generator's facility, the customer -generator shall 104
reimburse the retail elec tric supplier for the costs to 105
purchase and install the necessary additional equipment 106
approved by the commission . At the request of the customer - 107
generator, such costs may be initially paid for by the 108
retail electric supplier, and any amount up to the total 109
costs and a reasonable interest charge may be recovered from 110
the customer-generator over the course of up to twelve 111
billing cycles. Any subsequent meter testing, maintenance 112 SB 369 5
or meter equipment change necessitated by the customer - 113
generator shall be paid for by the customer -generator. 114
5. Consistent with the provisions in this section, the 115
net electrical energy measurement shall be calculated in the 116
following manner: 117
(1) For a customer-generator, a retail electric 118
supplier shall measure the net electrical energy produced or 119
consumed during the billing period in accordance with normal 120
metering practices for customers in the same rate class, 121
either by employing a single, bidirectional meter that 122
measures the amount of electrical en ergy produced and 123
consumed[, or by employing multiple meters that separately 124
measure the customer -generator's consumption and production 125
of electricity]; 126
(2) If the electricity supplied by the supplier 127
exceeds the electricity generated by the cus tomer-generator 128
during a billing period, the customer -generator shall be 129
billed for the net electricity supplied by the supplier in 130
accordance with normal practices for customers in the same 131
rate class; 132
(3) If the electricity generated by the cus tomer- 133
generator exceeds the electricity supplied by the supplier 134
during a billing period, the customer -generator shall be 135
billed for the appropriate customer charges for that billing 136
period in accordance with subsection 3 of this section and 137
shall be credited an amount at least equal to the [avoided 138
fuel] retail electric cost of the excess kilowatt -hours 139
generated during the billing period, with this credit 140
applied [to the following billing period ] anytime during the 141
following twelve-month period; 142
(4) Any credits granted by this subsection shall 143
expire without any compensation at the earlier of either 144 SB 369 6
twelve months after their issuance or when the customer - 145
generator disconnects service or terminates the net metering 146
relationship with the s upplier[; 147
(5) For any rural electric cooperative under chapter 148
394, or any municipally owned utility, upon agreement of the 149
wholesale generator supplying electric energy to the retail 150
electric supplier, at the option of the retail electric 151
supplier, the credit to the customer -generator may be 152
provided by the wholesale generator ]. 153
6. (1) Each qualified electric energy generation unit 154
[used by a customer-generator shall meet all applicable 155
safety, performance, interconnection, and reliabil ity 156
standards established by any local code authorities, the 157
National Electrical Code, the National Electrical Safety 158
Code, the Institute of Electrical and Electronics Engineers, 159
and Underwriters Laboratories for distributed generation. 160
No supplier shall impose any fee, charge, or other 161
requirement not specifically authorized by this section or 162
the rules promulgated under subsection 9 of this section 163
unless the fee, charge, or other requirement would apply to 164
similarly situated customers who are n ot customer- 165
generators, except that a retail electric supplier may 166
require that a customer -generator's system contain a switch, 167
circuit breaker, fuse, or other easily accessible device or 168
feature located in immediate proximity to the customer - 169
generator's metering equipment that would allow a utility 170
worker the ability to manually and instantly disconnect the 171
unit from the utility's electric distribution system ] shall 172
meet the requirements of the uniformed solar permit and 173
inspection form promulgate d by the commission. 174
(2) For systems of [ten] one hundred kilowatts or 175
less, a customer-generator whose system meets the standards 176 SB 369 7
and rules under subdivision (1) of this subsection shall not 177
be required to install additional controls, perform or pay 178
for additional tests or distribution equipment, or purchase 179
additional liability insurance beyond what is required under 180
subdivision (1) of this subsection and subsection 4 of this 181
section. 182
(3) For customer-generator systems of greater than 183
[ten] one hundred kilowatts, the commission for electrical 184
corporations and the respective governing body for other 185
retail electric suppliers shall, by rule or equivalent 186
formal action by each respective governing body: 187
(a) Set forth safety, perfo rmance, and reliability 188
standards and requirements; and 189
(b) Establish the qualifications for exemption from a 190
requirement to install additional controls, perform or pay 191
for additional tests or distribution equipment, or purchase 192
additional liability insurance. 193
7. (1) Applications by a customer -generator for 194
interconnection of a qualified electric energy generation 195
unit [meeting the requirements of subdivision (3) of 196
subsection 2 of this section to the distribution system 197
shall be accompanied by the plan for the customer - 198
generator's electrical generating system, including but not 199
limited to a wiring diagram and specifications for the 200
generating unit, and shall be reviewed and responded to by 201
the retail electric supplier within thirty days of receipt 202
for systems ten kilowatts or less and within ninety days of 203
receipt for all other systems ] shall meet commission 204
standards and shall be reviewed and responded to by the 205
electric supplier within thirty days or the application 206
shall be considered approved. Prior to the interconnection 207
of the qualified generation unit to the supplier's system, 208 SB 369 8
the customer-generator will furnish the retail electric 209
supplier a certification from a qualified professional 210
electrician or engineer that the installation meets the 211
requirements of subdivision (1) of subsection 6 of this 212
section. If the application for interconnection is approved 213
by the retail electric supplier and the customer -generator 214
does not complete the interconnection within one yea r after 215
receipt of notice of the approval, the approval shall expire 216
and the customer-generator shall be responsible for filing a 217
new application. 218
(2) Upon the change in ownership of a qualified 219
electric energy generation unit, the new customer -generator 220
shall be responsible for filing a new application under 221
subdivision (1) of this subsection. 222
8. Each electrical corporation shall submit an annual 223
net metering report to the commission, and all other retail 224
electric suppliers shall submit the same report to their 225
respective governing body and make said report available to 226
a consumer of the supplier upon request, including the 227
following information for the previous calendar year: 228
(1) The total number of customer -generator facilities; 229
(2) The total estimated generating capacity of its net - 230
metered customer-generators; and 231
(3) The total estimated net kilowatt -hours received 232
from customer-generators. 233
9. The commission shall, within [nine] six months of 234
January 1, [2008] 2026, promulgate initial rules necessary 235
for the administration of this section for electrical 236
corporations, which shall include regulations ensuring that 237
simple contracts will be used for interconnection and net 238
metering. For systems of [ten] one hundred kilowatts or 239
less, the application process shall use an all -in-one 240 SB 369 9
document that includes a simple interconnection request, 241
simple procedures, and a brief set of terms and conditions. 242
Any rule or portion of a rule, as that term is defined in 243
section 536.010, that is created under the authority 244
delegated in this section shall become effective only if it 245
complies with and is subject to all of the provisions of 246
chapter 536 and, if applicable, section 536.028. This 247
section and chapter 536 a re nonseverable and if any of the 248
powers vested with the general assembly under chapter 536 to 249
review, to delay the effective date, or to disapprove and 250
annul a rule are subsequently held unconstitutional, then 251
the grant of rulemaking authority and any rule proposed or 252
adopted after August 28, 2007, shall be invalid and void. 253
10. [The governing body of a rural electric 254
cooperative or municipal utility shall, within nine months 255
of January 1, 2008, adopt policies establishing a simple 256
contract to be used for interconnection and net metering. 257
For systems of ten kilowatts or less, the application 258
process shall use an all -in-one document that includes a 259
simple interconnection request, simple procedures, and a 260
brief set of terms and conditions. ] Before January 1, 2026, 261
the public service commission shall create and implement a 262
uniformed solar permit and inspection form and automated 263
permitting and inspection software for solar energy 264
devices. Municipalities, cities, homeowner's associations, 265
regulated utilities, unregulated utilities, rural electric 266
cooperatives, or other permitting and inspection authorities 267
shall utilize such software and collect fees from applicants 268
for solar energy device permits. The fees shall be 269
forwarded to the public service commission. 270
11. For any cause of action relating to any damages to 271
property or person caused by the qualified electric energy 272 SB 369 10
generation unit of a customer -generator or the 273
interconnection thereof, the retail electric supplier shall 274
have no liability absent clear and convincing evidence of 275
fault on the part of the supplier. 276
12. The estimated generating capacity of all net 277
metering systems operating under the provisions of this 278
section shall count towards the respective reta il electric 279
supplier's accomplishment of any renewable energy portfolio 280
target or mandate adopted by the Missouri general assembly. 281
13. The sale of qualified electric energy generation 282
units to any customer -generator shall be subject to the 283
provisions of sections 407.010 to 407.145 and sections 284
407.700 to 407.720. The attorney general shall have the 285
authority to promulgate in accordance with the provisions of 286
chapter 536 rules regarding mandatory disclosures of 287
information by sellers of quali fied electric energy 288
generation units. Any interested person who believes that 289
the seller of any qualified electric energy generation unit 290
is misrepresenting the safety or performance standards of 291
any such systems, or who believes that any electric en ergy 292
generation unit poses a danger to any property or person, 293
may report the same to the attorney general, who shall be 294
authorized to investigate such claims and take any necessary 295
and appropriate actions. 296
14. Any costs incurred under this act b y a retail 297
electric supplier shall be recoverable in that utility's 298
rate structure. 299
15. No consumer shall connect or operate a qualified 300
electric energy generation unit in parallel phase and 301
synchronization with any retail electric supplier witho ut 302
written approval by said supplier that all of the 303
requirements under subdivision (1) of subsection 7 of this 304 SB 369 11
section have been met. For a consumer who violates this 305
provision, a supplier may immediately and without notice 306
disconnect the electric f acilities of said consumer and 307
terminate said consumer's electric service. 308
16. The manufacturer of any qualified electric energy 309
generation unit used by a customer -generator may be held 310
liable for any damages to property or person caused by a 311
defect in the qualified electric energy generation unit of a 312
customer-generator. 313
17. The seller, installer, or manufacturer of any 314
qualified electric energy generation unit who knowingly 315
misrepresents the safety aspects of a qualified electric 316
generation unit may be held liable for any damages to 317
property or person caused by the qualified electric energy 318
generation unit of a customer -generator. 319
442.404. 1. As used in this section, the following 1
terms shall mean: 2
(1) "Homeowners' association", a nonprofit corporation 3
or unincorporated association of homeowners created under a 4
declaration to own and operate portions of a planned 5
community or other residential subdivision that has the 6
power under the declaration to asses s association members to 7
pay the costs and expenses incurred in the performance of 8
the association's obligations under the declaration or 9
tenants-in-common with respect to the ownership of common 10
ground or amenities of a planned community or other 11
residential subdivision. This term shall not include a 12
condominium unit owners' association as defined and provided 13
for in subdivision (3) of section 448.1 -103 or a residential 14
cooperative; 15
(2) "Political signs", any fixed, ground -mounted 16
display in support of or in opposition to a person seeking 17 SB 369 12
elected office or a ballot measure excluding any materials 18
that may be attached; 19
(3) "Reasonable rules", rules that do not include the 20
aesthetics for the solar panel or solar collector or 21
placement. No "reasonable rule" shall specifically prohibit 22
street-facing solar panels or solar collectors; 23
(4) "Solar panel or solar collector", a device used to 24
collect and convert solar energy into electricity or thermal 25
energy, including but not limi ted to photovoltaic cells or 26
panels, or solar thermal systems. 27
2. (1) No deed restrictions, covenants, or similar 28
binding agreements running with the land shall prohibit or 29
have the effect of prohibiting the display of political 30
signs. 31
(2) A homeowners' association has the authority to 32
adopt reasonable rules, subject to any applicable statutes 33
or ordinances, regarding the time, size, place, number, and 34
manner of display of political signs. 35
(3) A homeowners' association may remove a political 36
sign without liability if such sign is placed within the 37
common ground, threatens the public health or safety, 38
violates an applicable statute or ordinance, is accompanied 39
by sound or music, or if any other materials are attached to 40
the political sign. Subject to the foregoing, a homeowners' 41
association shall not remove a political sign from the 42
property of a homeowner or impose any fine or penalty upon 43
the homeowner unless it has given such homeowner three days 44
after providing written n otice to the homeowner, which 45
notice shall specifically identify the rule and the nature 46
of the violation. 47
(4) A homeowner's association shall deny or request 48
resubmission of any applications for solar panels or solar 49 SB 369 13
collectors within thirty day s of receipt or the application 50
shall be considered approved. 51
(5) A homeowner's association shall not require an 52
application for solar panels or solar collectors to pass 53
review or be approved by any committee or board designed to 54
address architectural or aesthetic qualities or conditions. 55
3. (1) No deed restrictions, covenants, or similar 56
binding agreements running with the land shall limit or 57
prohibit, or have the effect of limiting or prohibiting, the 58
installation of solar panels or so lar collectors on the 59
rooftop of any property or structure. 60
(2) A homeowners' association may adopt reasonable 61
rules, subject to any applicable statutes or ordinances, 62
regarding the placement of solar panels or solar collectors 63
to the extent that those rules do not prevent the 64
installation of the device, impair the functioning of the 65
device, restrict the use of the device, or adversely affect 66
the cost or efficiency of the device. 67
(3) The provisions of this subsection shall apply only 68
with regard to rooftops that are owned, controlled, and 69
maintained by the owner of the individual property or 70
structure. 71
4. (1) No deed restrictions, covenants, or similar 72
binding agreements running with the land shall prohibit or 73
have the effect of prohibiting the display of sale signs on 74
the property of a homeowner or property owner including, but 75
not limited to, any yard on the property, or nearby street 76
corners. 77
(2) A homeowners' association has the authority to 78
adopt reasonable rules, subject to any applicable statutes 79
or ordinances, regarding the time, size, place, number, and 80
manner of display of sale signs. 81 SB 369 14
(3) A homeowners' association may remove a sale sign 82
without liability if such sign is placed within the common 83
ground, threatens the public health or safety, violates an 84
applicable statute or ordinance, is accompanied by sound or 85
music, or if any other materials are attached to the sale 86
sign. Subject to the foregoing, a homeowners' association 87
shall not remove a sa le sign from the property of a 88
homeowner or property owner or impose any fine or penalty 89
upon the homeowner or property owner unless it has given 90
such homeowner or property owner three business days after 91
the homeowner or property owner receives writte n notice from 92
the homeowners' association, which notice shall specifically 93
identify the rule and the nature of the alleged violation. 94
5. (1) No deed restrictions, covenants, or similar 95
binding agreements running with the land shall prohibit or 96
have the effect of prohibiting ownership or pasturing of up 97
to six chickens on a lot that is two -tenths of an acre or 98
larger, including prohibitions against a single chicken coop 99
designed to accommodate up to six chickens. 100
(2) A homeowners' associa tion may adopt reasonable 101
rules, subject to applicable statutes or ordinances, 102
regarding ownership or pasturing of chickens, including a 103
prohibition or restriction on ownership or pasturing of 104
roosters. 105