SB 54 Modifies provisions relating to renewable energy, alternative fuel, and environmental regulation
Sponsor: Koster
LR Number: 0467L.03T Fiscal Note: 0467-03
Committee: Commerce, Energy and the Environment
Last Action: 6/26/2007 - Signed by Governor Journal Page:
Title: HCS SCS SB 54 Calendar Position:
Effective Date: January 1, 2008

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Current Bill Summary

HCS/SCS/SB 54 - This act modifies laws pertaining to environmental regulation and renewable energy.

Sections 256.700-256.710

Any person who applies for a surface mining permit from the Land Reclamation Commission shall additionally submit an annual geologic resources fee. Certain small gravel mining operations are exempt. Beginning August 28, 2007, the fee shall be set at $50 per permit, $50 per site, and $6 per acre. The fees may be raised by rule by the Department of Natural Resources, not to exceed $100 per permit, $100 per site, and $10 per acre. The fees expire December 31, 2020.

Funds collected from the geologic resources fee shall be deposited in the Geologic Resources Fund, which is created in the act, for use by the Division of Geology and Land Survey in the Department of Natural Resources for purposes described.

The Industrial Minerals Advisory Council is created, composed of 9 members who shall represent limestone quarry operators, the clay mining industry, the sandstone industry, the sand and gravel mining industry, the barite mining industry, the granite mining industry, and the Director of the Department of Transportation. The Council shall advise the State Geologist and the Department of Natural Resources as described. Duties and terms of the members are listed.

Sections 260.200 and 260.250

This act allows yard waste to be disposed of in a municipal solid waste disposal area when the Department of Natural Resources approves the operation of the disposal area as a bioreactor and when the landfill gas produced will be used for electricity generation.

These sections are similar to HCS/HB 886 (2007) and SCS/SB 328 (2007).

Sections 260.211 - 260.240

Under current law, the crime of illegally disposing demolition waste in the first degree is a Class A misdemeanor, illegally disposing demolition waste in the second degree is a Class C misdemeanor, and a second or subsequent offense is a Class D felony. This act removes the first and second degrees of the crime and instead makes any instance of illegal disposition of demolition waste a Class D felony as well as subject to the same penalty as what was for a crime in the first degree, which is up to $20,000.

Any person who knowingly disposes more than 2,000 pounds or 400 cubic feet of his own personal construction or demolition waste on his own property shall be guilty of a Class C misdemeanor. Any person who receives remuneration from another person to dispose of such waste on his own property shall be guilty of a Class D felony.

The act makes similar modifications to the crime of illegal disposition of solid waste where it removes the first and second degrees of the crime, and makes a single instance of illegally disposing solid waste a Class D felony subject to a fine of not more than $20,000.

The act expands the authority of the Department of Natural Resources to seek injunctive relief and civil penalties against operators of solid waste sanitary landfills and operators of transfer stations who violate certain fee collection provisions.

The maximum civil penalty a court may assess is increased from $1,000 to $5,000 per day for violations concerning a solid waste disposal area or for violations of the landfill or transfer station fee collection provisions by a solid waste processing facility.

The act increases from $100 to $500 the per-day penalty a county may assess for violations of any county law developed under provisions of the state solid waste laws.

These sections are similar to HCS/HB 886 (2007).

Section 260.247

Current law prescribes requirements for cities that expand solid waste collection services into areas where such service is currently provided by a private entity. This act makes the same requirements applicable to political subdivisions.

This section is similar to HCS/HB 886.

Sections 260.330 to 260.335

These sections extend the period of time from October 1, 2009, to October 1, 2014, during which no annual adjustment shall be made to the per-ton fee required to be remitted to the Department of Natural Resources by operators of solid waste sanitary landfills and transfer stations except when needed to fund the operating costs of the Department. The act also extends for the same time period the provision that any adjustment made shall not exceed the percentage increase as measured by the Consumer Price Index for All Urban Consumers.

These sections are similar to HCS/HB 886 (2007).

Section 260.360

This section adds a definition for "plasma arc technology" and includes plasma arc technology as a treatment method for waste.

This section is similar to HCS/HB 886 (2007) and HB 185 (2007).

Sections 260.470 and 260.1000-260.1039

This act creates the Missouri Environmental Covenants Law, which allows environmental covenants to be created for real property that is or has been the subject of environmental remediation. The covenants are standardized voluntary agreements in which parties with an interest in the real property ensure that restrictions on site usage required by the remediation are maintained.

The act describes the information required in an environmental covenant, the powers and restrictions of an environmental covenant, and the process by which environmental covenants may be amended or terminated.

Environmental covenants must be recorded in the county in which the real property in located. The Department of Natural Resources is required to maintain a database of all environmental covenants in the state.

Certain aboveground and underground storage tanks are exempt from the provisions in the act.

These sections are similar to SB 388 (2007).

Section 260.800

This section allows any facility designated as a waste to energy facility that generates electricity fueled from solid waste to use plasma arc technology.

This section is similar to HCS/HB 886 (2007) and HB 185 (2007).

Section 386.890

This act requires retail electric suppliers to make net metering available to customers who have their own electric generation units that meet certain criteria, one of which is that the unit is powered by renewable energy resources. Net metering is where the customer gets credit for the electricity he or she generates in lieu of electricity supplied by the electric utility. Net metering shall be made available to customers on a first-come, first-served basis until the total rated generating capacity of the net metering systems equals 5% of the utility’s single-hour peak load during the previous year.

Customers involved in net metering shall not be assessed any additional fees or charges and shall receive the same electric rates as an equivalent non-net metering customer.

The act describes how the net energy measurement shall be calculated and applied to the electric service billing. Customer-owned electric generation units must meet certain safety, performance, interconnection and reliability standards.

The Public Service Commission shall promulgate rules for the administration of this act. The rules shall require electric suppliers to use contract documents and an application process that is simple and easy to understand and shall require electric suppliers to annually report to the Commission with regard to the act.

Retail electric suppliers shall not be liable for damages caused by a customer-generator's generating unit when no evidence exists of fault by the supplier. Suppliers may discontinue electric service to any person who is determined to be conducting net metering without the approval of the supplier.

A retail electric supplier may use the energy generated by its customer-generators to meet any required renewable energy targets and may recover any costs associated with net metering in its rate structure.

The Attorney General is given authority to regulate merchandising practices associated with the sale of electric generating units.

The act repeals the Consumer Clean Energy Act.

This section is similar to SS/SCS/SB 674 (2007).

Sections 393.1020 - 393.1040

The act creates the Green Power Initiative. Electric companies shall make good-faith efforts toward meeting the following renewable energy targets:

• 4% of total retail electric sales come from certain renewable energy technologies by 2012;

• 8% of total retail electric sales come from certain renewable energy technologies by 2015; and

• 11% of total retail electric sales come from certain renewable energy technologies by 2020.

Electricity generation from renewable sources prior to August 28, 2007 may be counted toward the targets, provided they continue to be used.

The act directs the Public Service Commission (PSC) to develop standards for measuring electric companies' progress in meeting the targets. The standards must protect against adverse economic impacts on the companies and reliability of service, as well as consider environmental compliance costs and technical feasibility. The PSC shall also develop a weighted scale that gives more credit to renewable energy technologies the PSC determines to be in the public's best interest.

The act establishes reporting requirements until 2022. Electric companies are required to report every two years on their progress toward meeting the targets. The PSC is required to report every two years on the progress made by electric companies and give recommendations for legislative action. The director of the Department of Economic Development shall report every two years on the impact of this progress on the state economy and the director of the Department of Natural Resources shall report every two years on the environmental impact of this progress.

Section 414.420

The act renames the Missouri Ethanol and Other Renewable Fuel Sources Commission to the Missouri Alternative Fuels Commission and expands its membership from seven to nine members. The two additional members shall be appointed by the Governor, which brings the total number of Governor-appointed members to five. The Governor-appointed members shall be engaged in the production or sale of alternative fuels.

The act directs the Commission to: 1) make recommendations on legislation to facilitate the sale and distribution of alternative fuels and alternative fuel vehicles; 2) promote the production and use of alternative fuels; 3)promote the development and use of alternative fuel vehicles and other related technology; 4)educate consumers about alternative fuels;

5) develop a long-range plan to reduce petroleum fuel use; and 6) report annually to the Governor and General Assembly.

This section is similar to SCS/SB 156 (2007).

Section 444.772

This section raises the maximum allowable fees that may be set by the Land Reclamation Commission, where permit fees may not exceed $1,000, site fees may not exceed $400 per site, bonded acre fees may not exceed $20 per acre, and the cumulative total of permit fees or renewal permit fees may not exceed $3,000.

Under current law, the per-acre fee is reduced by half for any acres assessed over one hundred. This act raises the acre threshold to two hundred to qualify for the reduced fee.

As of August 28, 2007, the fees shall be set at $800 for a permit, $400 per site, and $10 per bonded acre. The Land Reclamation Commission may raise the fees by rule, provided a change in regulation necessitates the increased fees.

The expiration date for the fees is extended until December 31, 2013.

This section is similar to HB 880 (2007) and SB 329 (2007).

Section 643.079

Under current law, the Air Conservation Commission must establish the air pollution emission fees each year that are required to be paid by permitted air pollution sources. This act requires the Commission to set such fees every three years rather than annually but allows for annual adjustments to be made if needed.

This section is similar to HB 782 (2007) and SB 223 (2007).

Section 1

The Commissioner of the Office of Administration shall ensure that at least 70% of new state fleet vehicles are flexible fuel vehicles.

The provisions of the act become effective January 1, 2008.