HCS HB 647 -- ENERGY AND THE ENVIRONMENT

SPONSOR:  Bivins (Schaaf)

COMMITTEE ACTION:  Voted "do pass" by the Committee on Energy and
Environment by a vote of 9 to 2.

This substitute changes the laws regarding energy and the
environment.

SALES AND INSTALLATION OF HOME GENERATORS

The substitute prohibits a utility or affiliate from selling and
installing home generators for electrical production unless there
are no existing heating, ventilation, or air conditioning
providers in the service area.  Every utility must comply with
all local permit and code requirements.

MISSOURI ALTERNATIVE ENERGY LOAN AUTHORITY

The Missouri Alternative Energy Loan Authority is established
within the Department of Natural Resources to provide
low-interest loans on a need-based program to public and private
entities for the purpose of financing various energy-saving
projects and services.  The authority will consist of seven
members appointed by the Governor with the advice and consent of
the Senate.  The members' terms, eligibility, and qualifications
are specified in the substitute.  Action may be taken upon the
affirmative vote of at least three members.  The authority must
file an annual financial statement with the department director.

An initial appropriation of $14 million to the newly created
Missouri Alternative Energy Loan Authority Fund will be made; and
the fund may receive annual appropriations from the General
Assembly as well as from any gifts, contributions, grants, or
bequests.

MISSOURI PROPANE EDUCATION AND RESEARCH COUNCIL

The substitute changes the laws regarding the Missouri Propane
Education and Research Council.  In its main provisions, the
substitute:

(1)  Removes the provision allowing the director of the council
to initiate a referendum on the abolishment of the council;

(2)  Removes the director's authority to:

(a)  Fill council vacancies;

(b)  Approve or modify council budgets.  The council will approve
or modify the budget after a 30-day public comment period;

(c)  Require additional reports from the council; and

(d)  Establish alternative means to collect the odorized propane
fee and establish late payment charges; and

(3)  Removes the provision allowing the National Propane
Education and Research Council to establish a program in
coordination with the Missouri council regarding rebates on
propane fees collected by the national council.

WATER WELL REGULATIONS

The substitute specifies that any water system that serves a
benevolent or charitable organization and draws less than 15,000
gallons per month will be exempt from all rules relating to well
construction except those applying to domestic wells which are
determined to present a threat to groundwater.

GREEN SCHOOL GRANTS FOR SCHOOL BUILDINGS

Any public school district seeking state reimbursement for bond
offering costs related to new construction or renovation must
certify a cost analysis of building to certification issued by
the United States Green Building Council under the Leadership in
Energy and Environmental Design Green Building Rating System
(LEED) or an equivalent certification versus the cost of owning
and operating a new or renovated building without LEED standards.

ENVIRONMENTAL AUDITS

The substitute allows companies to conduct voluntary
environmental audits in order to discover and correct
noncompliance with environmental regulations.  If a company
complies with the voluntary audit requirements, it will be exempt
from certain types of criminal and administrative penalties and
may keep its voluntary audit reports confidential.  Companies
will not be exempt from any tort actions by private parties.  In
order to comply with the voluntary audit requirements, a company
must:

(1)  Discover noncompliance during a voluntary environmental
audit or through a compliance management system;

(2)  Disclose its noncompliance to the Department of Natural
Resources within 21 days;

(3)  Make the disclosure prior to any legal actions or regulatory
investigations concerning the audit;

(4)  Correct any noncompliance within 60 days or as determined by
the department;

(5)  Agree to take steps to prevent future noncompliance with
environmental regulations;

(6)  Document that the reported noncompliance was not part of a
pattern and that a similar noncompliance did not occur in the
previous three years or within the past five years at another
facility owned by the company;

(7)  Prove that the noncompliance did not cause actual harm or
violate an administrative order or agreement; and

(8)  Provide certain specified information to the department.

The department cannot disclose any audit report information
relating to scientific and technological innovations in which the
owner has a proprietary interest that is protected from
disclosure by law.

FISCAL NOTE:   Estimated Cost on General Revenue Fund of
$14,047,000 in FY 2010, $47,933 in FY 2011, and $49,372 in FY
2012.  Estimated Effect on Other State Funds of an Income of
Unknown to a Cost of Unknown in FY 2010, FY 2011, and FY 2012.

PROPONENTS:  Supporters say that the bill will require utility
companies to satisfy the same requirements as non-utility
installers of generators.  The costs of permits and licenses are
significant and place non-utility company installers at a
disadvantage if utility company installers are not required to
obtain them.

Testifying for the bill were Representative Schaaf; and Missouri
Coalition for Fair Competition.

OPPONENTS:  Those who oppose the bill say that they are currently
required to have the same permits and licenses and that utility
employees are required to have a great deal of training and hours
of experience in the field.  The number of cases where these
licenses and permits are an issue is limited, and the cost of the
fines related to operating without the licenses and permits makes
it unreasonable to install these generators without them.

Testifying against the bill were Laclede Gas Company; and
Gasworkers Local 11-6.

Missouri House of Representatives
95th General Assembly, 1st Regular Session
Last Updated November 17, 2009 at 9:25 am