HB 3073

                                SECOND REGULAR SESSION
                   HOUSE BILL NO. 3073
                          103RD GENERAL ASSEMBLY
                            INTRODUCED BY REPRESENTATIVE VEIT.
5590H.01I  JOSEPH ENGLER, Chief Clerk
                                           AN ACT
To amend chapter 640, RSMo, by adding thereto one new section relating to utility-scale solar
      projects, with penalty provisions.
Be it enacted by the General Assembly of the state of Missouri, as follows:
        Section A. Chapter 640, RSMo, is amended by adding thereto one new section, to be
2 known as section 640.1800, to read as follows:
        640.1800. 1. For purposes of this section, the following terms mean:
2(1) "Cessation of operations", occurs when a utility‑scale solar project has not
3 produced power for a period of twelve months. This twelve‑month period shall not
4 include a period in which:
5(a) The project fails to produce power due to an event of force majeure; or
6(b) The owner has retained legal control of the project's footprint and has
7 commenced rebuilding the facility;
8(2) "Department", the department of natural resources;
9(3) "Expansion" or "expanded", adding two megawatts alternating current or
10 more of directly connected solar energy generating capacity to the local or regional
11 electrical grid with the ability to deliver power to the electrical grid, or increasing the
12 ability of the project to deliver power to the electrical grid by thirty‑five percent,
13 whichever is larger;
14(4) "Owner", the person or corporation who has assumed legal ownership of the
15 solar energy system through the provisions of a contract or other legally binding
16 transfer of ownership;
EXPLANATION — Matter enclosed in bold-faced brackets [thus] in the above bill is not enacted and is
intended to be omitted from the law. Matter in bold-face type in the above bill is proposed language.
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17(5) "Photovoltaic module" or "PV module", the smallest nondivisible,
18 environmentally protected assembly of photovoltaic cells or other photovoltaic
19 collector technology and ancillary parts intended to generate electrical power under
20 sunlight, which is part of a utility‑scale solar project;
21(6) "Rebuild" or "rebuilt", a utility‑scale solar project for which more than fifty
22 percent of the original photovoltaic modules have been replaced with a different type of
23 photovoltaic module or other fuel source and the project is deemed to be new for income
24 tax purposes;
25(7) "Recycle", the processing, including disassembling, dismantling, and
26 shredding of photovoltaic modules or other equipment from utility‑scale solar
27 projects, or their components, to recover a usable product. "Recycle" does not
28 include any process that results in the incineration of such equipment. Photovoltaic
29 modules determined to be hazardous shall comply with applicable hazardous waste
30 requirements even when recycled;
31(8) "Utility‑scale solar project", a ground‑mounted photovoltaic, concentrating
32 photovoltaic, or concentrating solar power project capable of generating two megawatts
33 alternating current or more directly connected to the local or regional electrical grid
34 with the ability to deliver power to the electrical grid. A "utility‑scale solar project":
35(a) Includes the solar arrays, accessory buildings, battery storage facilities,
36 transmission facilities, and any other infrastructure necessary for the operation of the
37 project;
38(b) Does not include renewable energy facilities owned or leased by a retail
39 electric customer intended primarily for the customer's own use or to offset the
40 customer's own retail electrical energy consumption at the premises or for net metering.
412. The owner of a utility‑scale solar project shall be responsible for proper
42 decommissioning of the project upon cessation of operations and restoration of the
43 property in compliance with subdivision 4 of subsection 4 of this section, including all
44 associated costs, no later than one year following cessation of operations.
453. The owner shall notify the department within thirty days of cessation of
46 operations. Such notice shall include a detailed description of the steps to be taken to
47 properly decommission the project and for restoration of the site.
484. At a minimum, an owner shall take all of the following steps in
49 decommissioning a project:
50(1) Disconnect the solar project from the power grid;
51(2) Remove all equipment from the solar project, collect and ship equipment for
52 reuse, or recycle all of the components thereof practicably capable of being recycled,
53 including the PV modules, the entire solar module racking system; aboveground
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54 electrical interconnection and distribution cables that are no longer deemed necessary;
55 subsurface cable no longer deemed necessary; any metal fencing; electrical and
56 electronic devices, including transformers and inverters; and energy storage system
57 batteries;
58(3) Properly dispose of components that will not be shipped for reuse, are
59 incapable of being recycled, and do not meet the definition of hazardous waste in:
60(a) An industrial landfill; or
61(b) A municipal solid waste landfill;
62
63 PV modules that meet the definition of hazardous waste shall comply with hazardous
64 waste requirements for recycling and disposal as applicable; and
65(4) Restore the property:
66(a) As nearly as practicable to its condition before the utility‑scale solar project
67 was sited; or
68(b) To an alternative condition agreed upon in a written contract or lease
69 agreement between the landowner and the project owner;
70
71 A copy of the agreement signed by both parties shall be provided to the department
72 prior to decommissioning. The condition of the property shall otherwise comply with
73 any applicable statutory requirements, rules adopted thereunder, and requirements in
74 local ordinance. Land that was cleared of trees for the solar project may be revegetated
75 or reforested with seedlings.
765. The owner of a utility‑scale solar project shall submit a decommissioning plan
77 to the department for approval, prior to starting energy production. The
78 decommissioning plan shall be prepared, signed, and certified by an independent
79 licensed professional engineer, certified or licensed in this state, and shall contain all of
80 the following:
81(1) The name, address, and contact information for the owner of the project, and
82 name, address, and contact information for the landowner of the property on which the
83 project is sited, if different than the owner;
84(2) A narrative description of how the decommissioning will be conducted,
85 including the decommissioning sequencing; the disposition of materials to be used upon
86 decommissioning, such as landfilling, reuse, or recycling of project equipment, which
87 shall specifically delineate methods to be used for solid and hazardous waste; and a
88 schedule for completion of the decommissioning activities;
89(3) Information on equipment proposed to be salvaged, including estimated
90 salvage value of the equipment for the purpose of determining financial assurance;
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91(4) Information on steps to be taken to restore the property in compliance with
92 subdivision (4) of subsection 4 of this section;
93(5) A cost estimate for decommissioning the project and restoration of the
94 property in compliance with subdivision (4) of subsection 4 of this section; and
95(6) The proposed mechanism to satisfy the financial assurance requirements
96 established under subsection 6 of this section, including information on which legal
97 entity will establish the mechanism, when it will be established in accordance with the
98 requirements of this section, and how the department will access the funds from the
99 mechanism if needed.
1006. (1) The owner of a utility‑scale solar project shall establish financial
101 assurance in an amount acceptable to the department to ensure that sufficient funds are
102 available for decommissioning of the project and restoration of the property in
103 compliance with subdivision (4) of subsection 4 of this section, even if the owner
104 becomes insolvent or ceases to reside, be incorporated, do business, or maintain assets in
105 this state. To establish sufficient availability of funds under this section, the owner of a
106 utility‑scale solar project may use insurance; financial tests; third‑party guarantees by
107 persons who can pass the financial test; guarantees by corporate parents who can pass
108 the financial test; irrevocable letters of credit, trusts, surety bonds, or any other
109 financial device; or any combination of the foregoing, shown to provide protection
110 equivalent to the financial protection that would be provided by insurance if insurance
111 were the only mechanism used.
112(2) Financial assurance shall be established by an owner of a utility‑scale solar
113 project and maintained until such time as the project is decommissioned and restoration
114 of the property has been completed in compliance with this section. Documentation of
115 financial assurance established shall be submitted to the department at the time of
116 registration and at the time of required update every five years, as required by
117 subsection 7 of this section.
1187. Each owner of a utility‑scale solar project shall register with the department
119 and update such registration every five years from the registration submission date, or
120 with a transfer of ownership, until the site is completely decommissioned. At the time of
121 registration or periodic required update required by the department, the owner shall
122 provide all of the following information:
123(1) Identification of the owner and any other legal entity that will be responsible
124 for decommissioning the project and establishment of financial assurance, if applicable;
125(2) A summary of project equipment that will be subject to decommissioning
126 requirements under this section, including the location, size, number, and type of PV
127 modules, as well as identification of any per‑ and poly‑fluoroalkyl substances associated
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128 with the project, and a determination as to whether the PV modules are likely to be
129 characterized as hazardous waste upon decommissioning. The hazardous waste
130 determination shall be made in compliance with rules adopted by the department or the
131 division of environmental quality;
132(3) A summary of project timeline, including actual or anticipated initiation and
133 completion of construction, initiation of operations, and expected service life of the
134 project;
135(4) Estimates of costs to decommission the project and restore the property;
136(5) A proposed financial assurance mechanism to be used to meet the
137 requirements of this section, if applicable;
138(6) Copies of any decommissioning plan executed, or documentation of financial
139 assurance established, pursuant to local government ordinance or agreement with a
140 landowner, prior to registration under this subsection;
141(7) Any other information the department may require.
1428. Existing utility‑scale solar projects operating before August 28, 2026, shall
143 have until December 31, 2027, to comply with the provisions of this section.
1449. The department shall notify the owner of the utility‑scale solar project of any
145 modifications to the plan for decommissioning that are needed. The owner may appeal
146 a modification by the department of a plan for decommissioning within thirty days of
147 receiving notice of the modification to the plan, in the same manner as appeals are filed
148 from the department's decision or as prescribed under the rules.
14910. The public service commission shall develop and maintain a list of all
150 utility‑scale solar projects operating within this state and shall provide the department
151 with an updated list annually on or before July first of each year.
15211. Nothing in this section shall be construed as limiting the authority of any
153 landowner to enter into an agreement with an owner to lease property on which a
154 utility‑scale solar project will be sited that expressly establishes requirements that are
155 more stringent than those set forth in this section for decommissioning and financial
156 assurance for utility‑scale solar projects to be located on the landowner's property.
15712. The department shall collect reasonable fees from the owner of a utility‑scale
158 solar project subject to the requirements of this section, at the time of registration. Any
159 fees that are collected by the department at the time of registration, periodic updates,
160 annual reporting, or for meeting compliance requirements shall be established by rule,
161 and in accordance with this section. Fees collected under this subsection shall be
162 applied to the department's cost of administering the program.
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16313. Information regarding implementation of the requirements of this section
164 shall be included in the appropriate annual report prepared by the department under
165 chapter 640.
16614. (1) If the owner of a utility-scale solar project fails to comply with the
167 decommissioning plan or the financial assurances requirements under the provisions of
168 this section or any rule or regulation promulgated by the department, the surety bond
169 or similar security posted by the owner to secure the owner's obligations under this
170 section shall be deemed forfeited. The attorney general shall institute a civil action in
171 any court of competent jurisdiction for forfeiture of the bond on behalf of the
172 department. The department shall use the security proceeds or moneys obtained from
173 the surety bond to pay for the decommissioning and restoration of the property.
174(2) Whenever it appears to the department that the owner has engaged in, or is
175 about to engage in, any acts or practices that have or will constitute a violation of this
176 section, or any rule or regulation promulgated thereunder, the director may request the
177 county prosecuting attorney or the attorney general to bring an action in the circuit
178 court for injunctive relief to prevent such violation, or in the case of a violation
179 concerning the owner's failure to comply with the decommissioning plan or financial
180 assurances, for the assessment of a penalty not to exceed one thousand two hundred
181 dollars per day, or part thereof, or both, as the court deems proper. In any such action,
182 the court may grant to the department such prohibitory or mandatory injunctive relief
183 as the facts may warrant.
184(3) The prevailing party in any such action brought under subdivision (1) of this
185 subsection, or for injunctive relief instituted under subdivision (2) of this subsection,
186 shall be awarded costs and reasonable attorney's fees.
18715. The department shall promulgate all necessary rules and regulations for the
188 administration of this section and include the specific criteria set out in subsection 6 of
189 this section. Any rule or portion of a rule, as that term is defined in section 536.010, that
190 is created under the authority delegated in this section shall become effective only if it
191 complies with and is subject to all of the provisions of chapter 536 and, if applicable,
192 section 536.028. This section and chapter 536 are nonseverable and if any of the powers
193 vested with the general assembly pursuant to chapter 536 to review, to delay the
194 effective date, or to disapprove and annul a rule are subsequently held unconstitutional,
195 then the grant of rulemaking authority and any rule proposed or adopted after August
196 28, 2026, shall be invalid and void.
19716. (1) The rules promulgated under this section shall establish criteria to set the
198 amount of financial assurance required for utility‑scale solar projects as set forth in
199 subsection 4 of this section.
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200(2) The rules shall include, at a minimum:
201(a) The solar technology to be employed including, but not limited to, PV,
202 concentrated photovoltaics, concentrated solar power, or other technology;
203(b) The approximate number and size of PV modules included in the solar
204 arrays to be constructed;
205(c) Any ancillary facilities to be constructed in association with the project;
206(d) The condition of the property prior to construction of a utility‑scale solar
207 project;
208(e) The amount of acreage that would be impacted by the proposed project; and
209(f) Any other factors designed to enable establishment of adequate financial
210 assurance for decommissioning and restoration on a site‑by‑site basis.
211(3) The department shall consider the salvage value of the project's equipment in
212 establishing requirements for financial assurance for a utility‑scale solar project.
213(4) The rules shall require periodic updates to be provided by owners with
214 respect to financial assurance maintained.
215(5) The rules shall address the following matters:
216(a) Requirements for decommissioning plans, including required information,
217 and processes for submittal and review of plans;
218(b) Fees to be assessed at periodic updates or for annual compliance or reporting
219 requirements; and
220(c) Any other matter the department deems necessary.
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