HB 978 Modifies provisions relating to the environment

     Handler: Lembke

Current Bill Summary

- Prepared by Senate Research -


HCS/HBs 978 & 1028 - This act modifies provisions relating to the environment.

SECTIONS 30.750 TO 30.765 - LINKED DEPOSIT LOAN PROGRAM

The act adds two additional eligible participants in the State Treasurer's linked deposit loan program: individuals who want to produce their own energy from renewable resources; and political subdivisions or public higher education institutions seeking to finance capital improvements or other significant programs.

The act modifies criteria of several other eligible participants in the linked deposit loan program. It removes the requirement that alternative energy operations must sell fuel or power generated by their operations. It removes the requirement that farming operations must not possess more than 60% equity in the operation. The act makes an exception to the maximum loan per job requirement for job enhancement businesses that incur significant costs for equipment or capital improvements. The maximum number of employees of an eligible small business is increased from 25 to 100.

These sections are similar to SCS/SB 542 (2009) and HCS/HB 883 (2009).

SECTIONS 135.403 TO 135.663 - TAX CREDITS

The act increases the total amount of tax credits available for qualified investments in Missouri small businesses from $13 million to $30 million, and requires at least $20 million of such amount to be for investments in small businesses that manufacture alternative power generation equipment.

Beginning in calendar year 2009, volunteer firefighters who have completed at least 12 hours of approved firefighter training are eligible for a $180 tax credit each year in which the training is completed. Beginning in calendar year 2011, the amount of tax credit increases to $360 per year for completion of certain fire fighting training programs. The State Fire Marshall shall approve the training programs eligible for the tax credit. The tax credit sunsets after 6 years unless reauthorized.

The act creates a tax credit for the construction or remodeling of single-family detached or multi-family attached homes under green building standards determined by either the National Association of Home Builders or the U.S. Green Building Council. The tax credit ranges from $.45 per square foot to $1.15 per square foot of home built or remodeled, depending upon the certification level of the green building standard used. The tax credit is non-refundable, but may be carried forward or back, and may be transferred. No more than $2 million of tax credits for this program may be issued in any single fiscal year. This tax credit sunsets after 5 years unless reauthorized.

The act creates a tax credit for the construction of a residential storm shelter on or after January 1, 2003. The amount of the tax credit is the lesser of $1,500 or 50% of the costs to build the shelter. The tax credit is non-refundable, non-transferrable, and may only be claimed once per taxpayer. The total amount of tax credits issued for this program may not exceed $2 million per fiscal year. This tax credit sunsets after 6 years unless reauthorized.

Provisions in the tax credit sections are similar to provisions in HB 204 (2009), the perfected HCS/HB 958 (2009), SB 543 (2009), and HB 39 (2009).

SECTION 256.620 - EXEMPTION FROM WELL REQUIREMENTS

The act exempts wells used by charitable or benevolent organizations from state well laws and regulations except when: the volume pumped from the well exceeds 15,000 gallons per month, the well is a threat to groundwater, or the water from the well does not meet safe drinking water standards. This exemption does not apply to laws requiring the reporting of quantity of water drawn from a well. Such exempt wells must be evaluated for deficiencies under the regulations of the Safe Drinking Water Commission, and any deficiencies found must be corrected.

This provision is similar to HB 172 (2009).

SECTION 360.106 - GREEN SCHOOL BUILDINGS

Public school districts constructing or renovating a public school building must certify a cost-analysis of constructing or renovating to certain green building standards versus the long-term cost of the building if not built or renovated to such standards. The school district must provide an explanation regarding its recommendation to build or not build to the green building standard. The green building standard shall be any certification offered by the U.S. Green Building Council under its Leadership in Energy and Environmental Design (LEED) program, or an equivalent program to LEED. No school district shall be eligible for bond financing through the Health and Educational Facilities Authority without the green building cost-analysis.

This provision is similar to HB 1132 (2009).

SECTION 386.756 - COMPLIANCE WITH LOCAL CODES

Utilities must comply with all local permit and code requirements.

This provision is similar to HB 647 (2009).

SECTION 393.1122 - MISSOURI ALTERNATIVE ENERGY LOAN AUTHORITY

The act creates the Missouri Alternative Energy Loan Authority, which shall make low-interest loans for the purpose of financing renewable energy producing facilities or products or energy efficient appliances or products. Priority for loans must be given to larger, more efficient, and new renewable energy or energy efficiency projects. Eligible loan applicants include local governments, cooperatives, utilities, and property owners.

The Authority shall be composed of seven members appointed by the Governor, with the advice and consent of the Senate. The act specifies appointment, terms, and quorum to conduct business requirements for the members. The act also provides duties of the Authority, which includes the adoption of by-laws, the operation of an office, and the collection of reasonable fees. The Authority must annually file a financial report with the Department of Natural Resources.

This provision is similar to HB 660 (2009).

SECTIONS 414.530 TO 414.570 - MISSOURI PROPANE EDUCATION AND RESEARCH COUNCIL

Under current law, there are three ways for the director of the Missouri Energy Center to initiate a referendum on the abolishment of the Missouri Propane Education and Research Council and the fee for odorized propane. This act removes one of these three ways, which is at the discretion of the director.

Current law allows vacancies on the council to be filled by the remaining members of the council, subject to the approval of the director. This act removes the requirement that the director must approve the appointment and instead requires the council to fill vacancies after a public nomination process.

Current law requires the council to submit a budget plan to the director at the beginning of each fiscal period and requires the director to either approve or recommend changes to the budget after a public comment period. The act removes the director's involvement in the budget approval, and instead requires the budget plan be submitted for public comment at least 30 days prior to the beginning of each fiscal period, and authorizes the council to approve or modify the budget after the public comment period.

The act removes the authority of the director to require additional reports from the council at his or her discretion beyond what is already required under current law.

Authority to establish an alternative means to collect the odorized propane fee and set late payment charges is currently given to the director. This act transfers this authority to the council. The interest rate charged for late payments may not exceed the legal rate for judgments.

The act removes provisions that allow the National Propane Education and Research Council to coordinate its operations with Missouri's council and that authorize Missouri's council to keep funds resulting from a federal rebate on propane fees.

These sections are identical to the truly agreed and finally passed HB 751 (2009) and SB 297 (2009).

SECTIONS 640.300 TO 640.345 - ENVIRONMENTAL COMPLIANCE

The act provides certain protection from penalties and criminal charges for violations of environmental laws by regulated entities that implement a voluntary compliance management system or that conduct voluntary environmental audits. The protections are only available if the regulated entity complies with provisions in the act, which include: proactive and voluntary discovery of the violation; timeframes for reporting and correcting the violation; no evidence of a pattern of non-compliance by the entity; and no significant harm or endangerment to human health or the environment is caused by the violation.

The act does not prevent a private party from bringing action against a regulated entity for damages resulting from a violation of environmental laws.

These sections are similar to HB 109 (2009).

SECTION 640.698 - SOLAR WATER HEATING SYSTEM INCENTIVE PROGRAM

The act creates a financial incentive program for the purchase and installation of solar water heating systems in private residences. Homeowners or home builders who install a solar water heating system in a private residence are eligible for the incentive, provided the system meets criteria specified in the act. The incentive shall be $500 per system, homeowners may receive 1 incentive per year, home builders may receive up to 3 incentives per year, and the program has a total cap of $100,000 per fiscal year. The Department of Natural Resources shall administer the program. The program shall sunset in 6 years unless reauthorized.

This provision is similar to HB 1133 (2009).

SECTION 644.570 - BONDS FOR STORMWATER CONTROL

The act removes the provision that restricts grants made from bond proceeds that are awarded for urban stormwater control projects from exceeding 50% of the cost of the project. The act also removes the $20 million cap placed on the amount of bond issuance authorization in fiscal year 2000.

Provisions of this act are similar to provisions combined in HCS/HB 647 (2009).

ERIKA JAQUES


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