FIRST REGULAR SESSION SENATE BILL NO. 386 103RD GENERAL ASSEMBLY INTRODUCED BY SENATOR TRENT. 1344S.01I KRISTINA MARTIN, Secretary AN ACT To amend chapter 386, RSMo, by adding thereto one new section relating to a community solar pilot program. Be it enacted by the General Assembly of the State of Missouri, as follows: Section A. Chapter 386, RSMo, is amended by adding thereto 1 one new section, to be known as section 386.875, to read as 2 follows:3 386.875. 1. As used in this section, the following 1 terms shall mean: 2 (1) "Bill credit", the commission -approved monetary 3 value of each kilowatt hour of electricity generate d by a 4 community solar facility and allocated to a subscriber's 5 monthly bill to offset the subscriber's retail electric bill; 6 (2) "Community solar facility", a facility that: 7 (a) Generates electricity by means of a solar 8 photovoltaic device whereby subscribers receive a bill 9 credit for the electricity generated based on the size of 10 the subscriptions; 11 (b) Is located within the state of Missouri; 12 (c) Is connected to and delivers electricity to a 13 distribution system operated by a retail electric supplier 14 operating in the state of Missouri and in compliance with 15 requirements under this section; 16 (d) Has a nameplate capacity greater than one hundred 17 AC kilowatts and no greater than five thousand AC kilowatts; 18 SB 386 2 (e) Has at least ten subscribers; 19 (f) Credits some or all of the electricity generated 20 from a community solar facility to the bills of subscribers; 21 (g) May be located remotely from a subscriber's 22 premises and shall not be required to provide energy to an 23 on-site load; 24 (3) "Community solar organization", an entity that 25 owns or operates one or more community solar facilities; 26 (4) "Customer-generator", the same meaning as set 27 forth in section 386.890; 28 (5) "Low-income customer", a retai l residential 29 customer of a retail electric supplier whose household 30 income adjusted for family size does not exceed either two 31 hundred percent of the federal poverty level or eighty 32 percent of the median income of the county in which the 33 customer is located, whichever is higher. Owners or 34 managers of apartment buildings or rental units that serve 35 low-income customers may be considered low -income customers 36 if fifty percent or more of the tenants qualify under this 37 definition. Further, certain ent ities, organizations, and 38 institutions that are focused on social welfare and that 39 serve the low-income customer community may also qualify, 40 including but not limited to: homeless shelters, halfway 41 houses, soup kitchens, foster homes, orphanages, and other 42 similar organizations; 43 (6) "Retail electric supplier", an electrical 44 corporation regulated under chapter 386 that provides retail 45 electric service in this state; 46 (7) "Subscriber", a retail customer of a retail 47 electric supplier who ow ns one or more subscriptions to a 48 community solar facility interconnected with the customer's 49 retail electric supplier. The term includes a retail 50 SB 386 3 customer who owns a portion of a community solar facility. 51 A subscriber's subscription size shall be on e hundred 52 percent or less of their twelve -month rolling average 53 kilowatt hour usage for any one subscriber meter; 54 (8) "Subscriber administrator", an entity that 55 recruits and enrolls subscribers, administers subscriber 56 participation in community s olar facilities, and manages the 57 subscription relationship between subscribers and a retail 58 electric supplier; 59 (9) "Subscription", a contract between a subscriber 60 and subscriber administrator of a community solar facility 61 that entitles the subscr iber to a bill credit against the 62 subscriber's retail electric bill; 63 (10) "Unsubscribed energy", the output of a community 64 solar facility, measured in kilowatt hours, that is not 65 allocated to subscribers. 66 2. Each retail electric supplier sha ll implement a 67 three-year community solar pilot program to run during 68 calendar years 2026 through 2028. Retail electric suppliers 69 shall allow subscriber administrators and owners or 70 operators of community solar facilities to recruit customers 71 as subscribers, and shall process subscribers' bill credits 72 as required by subdivision (8) of subsection 3 of this 73 section. Each retail electric supplier shall continue 74 operating its community solar pilot program until the total 75 solar electricity demand from subscribers equals five 76 percent of the retail electric supplier's electricity sales 77 for the previous year. 78 3. Community solar facilities shall be operated as 79 follows: 80 (1) A community solar facility may be built, owned, or 81 operated by a third party entity under contract with an 82 SB 386 4 owner or operator of a community solar facility or a 83 subscriber administrator. A subscriber administrator may 84 contract to administer bill credits to the subscriber's 85 electricity bill generated by the subscriber's share of the 86 community solar facility, subject to the requirements of 87 this section. A subscriber administrator that provides bill 88 credits to a subscriber pursuant to this section shall not 89 be considered an electrical corporation or public utility 90 under section 386.020 for purposes of determining 91 jurisdiction of the commission; 92 (2) The owner or operator of a community solar 93 facility may serve as a subscriber administrator or may 94 contract with a third party to serve as a subscriber 95 administrator on behalf of the owner or operator. Nothing 96 in this section shall prevent a retail electric supplier 97 from owning or operating a community solar facility or from 98 acting as a subscriber administrator as part of its own 99 community solar pilot program; 100 (3) Except as provided under subdivision (4) of this 101 subsection, the price paid for a subscription in a community 102 solar facility shall not be subject to regulation by the 103 commission; 104 (4) Not later than nine months after the effective 105 date of this section, the commission shall establish the 106 value of the bill credit for each retail electric supplier 107 to offset each subscriber's retail electric bill for each 108 kilowatt hour subscribed from a community solar facility. 109 The commission shall est ablish the bill credit value in such 110 a way as to allow for the creation, financing, 111 accessibility, and operation of community solar facilities 112 and to maximize customer participation so as to meet the 113 goal of five percent of electricity sales per year a s 114 SB 386 5 required by subsection 2 of this section. The commission 115 shall establish an additional bill credit value for 116 subscribers who are low -income customers in such a way as to 117 ensure that low-income subscribers save money on their 118 retail electric bills; 119 (5) A retail electric supplier shall allow for the 120 transferability and portability of subscriptions, including 121 allowing a subscriber to retain a subscription to a 122 community solar facility if the subscriber relocates within 123 the same retail electri c supplier's service territory; 124 (6) On a monthly basis, a subscriber administrator 125 shall update the subscriber administrator's list of 126 subscribers and provide all of the following information 127 about each subscriber to the retail electric supplier i n a 128 standardized electronic format approved by the commission 129 for the purpose of bill credit to subscribers: 130 (a) The name, address, account number, and meter 131 number; 132 (b) The kilowatt hours of electricity generation 133 attributable to each subs criber; 134 (c) If a subscriber administrator is using the retail 135 electric supplier's billing methods to collect subscription 136 fees, the subscription fee for the month owed by each 137 subscriber to the subscriber administrator; 138 (7) A subscriber administrator or third party owning 139 or operating a community solar facility shall not be 140 considered a retail electric supplier or an electric 141 generation provider solely as a result of involvement with a 142 community solar facility; 143 (8) Duties of retail electric suppliers shall include 144 the following: 145 SB 386 6 (a) On a monthly basis, a retail electric supplier 146 shall provide to a subscriber administrator a report in a 147 standardized electronic format indicating the total value of 148 the bill credit generated by the community solar facility in 149 the prior month and the amount of the bill credit applied to 150 each subscriber; 151 (b) A retail electric supplier shall provide a bill 152 credit to a subscriber's next monthly electric bill for the 153 proportional output of a community solar facility 154 attributable to the subscriber in the same manner as if the 155 solar facility were located on the customer's property; 156 (c) If requested by a subscriber administrator, a 157 retail electric supplier shall include a subscriber's 158 subscription fee on the monthly bill and forward the 159 collected subscription fees to the subscriber administrator 160 on a monthly basis; 161 (d) Not later than August 28, 2026, a retail electric 162 supplier shall make available and update, in a commercially 163 reasonable manner, a system map showing the loading of the 164 distribution system and indicating where in the service area 165 the distribution system could accommodate new solar 166 generation; 167 (9) Compensation for retail electric suppliers shall 168 be as follows: 169 (a) A subscriber administrator shall compensate a 170 retail electric supplier for the retail electric supplier's 171 reasonable direct costs of interconnection of a community 172 solar facility. Such compensation shall be in the form of a 173 one-time payment upon interconnection; 174 (b) A retail electric supplier shall be entitled to 175 recover its reasonable direct costs of complying with the 176 requirements of this section and enabling a community solar 177 SB 386 7 facility within its service territory, includin g but not 178 limited to: added billing costs and added costs of net 179 metering and interconnection for community solar 180 facilities. Such reasonable direct costs shall be in the 181 form of an annual fee invoiced to the subscriber 182 administrator based on the to tal final system size of the 183 community solar facility; 184 (10) Each community solar facility shall be subscribed 185 with at least ten percent low -income customers and twenty 186 percent residential customers; 187 (11) A retail electric supplier shall purc hase 188 unsubscribed energy from a community solar facility at the 189 retail electric supplier's avoided cost as approved by the 190 commission. No later than nine months after August 28, 191 2025, the commission shall promulgate rules to implement the 192 provisions of this section regarding the purchase of 193 unsubscribed energy; 194 (12) No entity, affiliated entity, or entities under 195 common control may develop, own, or operate more than one 196 community solar facility on the same parcel or contiguous 197 parcels of land. 198 4. Interconnection standards for community solar 199 facilities under one hundred kilowatts shall be the same as 200 the standards for net -metered customers pursuant to section 201 386.890. For systems larger than one hundred kilowatts, the 202 commission shall develop technical and net metering 203 interconnection rules for customer -generators intending to 204 operate community solar facilities or renewable onsite 205 generators in parallel with the electric utility grid, 206 consistent with rules defined in other state s within the 207 service region of the regional transmission organization 208 that manages the transmission system in any part of the 209 SB 386 8 state. In developing its rules, the commission shall 210 convene a stakeholder process to develop statewide technical 211 and net metering rules for customer generators with systems 212 larger than one hundred kilowatts. 213 5. The commission shall promulgate rules and 214 regulations to implement the provisions of this section 215 within nine months of August 28, 2025. Any rule or portion 216 of a rule, as that term is defined in section 536.010, that 217 is created under the authority delegated in this section 218 shall become effective only if it complies with and is 219 subject to all of the provisions of chapter 536 and, if 220 applicable, section 536. 028. This section and chapter 536 221 are nonseverable and if any of the powers vested with the 222 general assembly pursuant to chapter 536 to review, to delay 223 the effective date, or to disapprove and annul a rule are 224 subsequently held unconstitutional, then the grant of 225 rulemaking authority and any rule proposed or adopted after 226 August 28, 2025, shall be invalid and void. 227