Missouri 2025 Regular Session

Missouri Senate Bill SB386 Latest Draft

Bill / Introduced Version Filed 12/06/2024

                             
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 
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