HCS HB 978 & 1028 -- ENERGY AND THE ENVIRONMENT (Bivins)

COMMITTEE OF ORIGIN:  Committee on Energy and Environment

This substitute changes the laws regarding energy and the
environment.

INCOME TAX CREDIT FOR HOMES BUILT UNDER GREEN BUILD STANDARDS

Beginning January 1, 2010, the substitute authorizes an income
tax credit for homes built using green build standards.  The
credit ranges from 45 cents to $1.15 per square foot of the home
and will be based on the percentage of the level of green build
standards met as verified by a program-certified, third-party
verifier.  The credit is not refundable, but can be transferred
or carried back or carried forward to any taxable year.  The
credit will be on a first-come, first-served filing basis and
cannot exceed $2 million per fiscal year.

LINKED DEPOSIT LOAN PROGRAM

The substitute:

(1)  Expands the Linked Deposit Loan Program to include eligible
alternative energy consumers and eligible governmental entities;

(2)  Revises the definition of "eligible job enhancement
business" to limit the amount of the linked deposit to not exceed
$50,000 per job created or retained plus the initial cost of the
physical expansion, renovation, or capital outlay when an
applicant can demonstrate the significant costs associated with
the physical expansion, renovation, or modernization of a
facility or equipment;

(3)  Increases from less than 25 to less than 100 the number of
employees a company can employ in order to be considered an
eligible small business; and

(4)  Specifies that the total amount of tax credits available for
qualified investments in Missouri small businesses cannot exceed
$30 million and at least $20 million of that amount must be for
the manufacture of alternative power generation equipment.
Currently, the total amount of tax credits cannot exceed $13
million.

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
assessment fee and establish a late payment charge and the rate
of interest not to exceed the legal rate for judgments; and

(3)  Requires the Missouri council to keep funds resulting from
the federal assessment rebate on propane fees and not to
coordinate its operation with the National Propane Education and
Research Council in conjunction with the United States Secretary
of Energy.

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.

The provisions of the substitute regarding the tax credit for
homes built using green building standards expire December 31
five years from the effective date.

INCOME TAX CREDIT FOR STORM SHELTER

Beginning January 1, 2009, the substitute authorizes a one-time
income tax credit to a taxpayer for 50% of the cost of the
construction or $1,500, whichever is less, of a storm shelter
built in America and installed on or after January 1, 2003.  The
credit is not refundable or transferable.  The total amount of
credits, which will be issued on a first-come, first-served
filing basis, cannot exceed $2 million in any fiscal year.

SOLAR WATER HEATING SYSTEM INCENTIVE PROGRAM

The substitute establishes the Solar Water Heating System
Incentive Program to provide financial incentives for the
purchase and installation of solar water heating systems in
private residences.  Subject to appropriations, the Department of
Natural Resources must provide and administer the incentives.
The substitute specifies the requirements that must be met to
receive an incentive and caps the incentive at $500 for each
qualifying solar water heating system.  Homeowners are eligible
for up to $500 per year, and homebuilders are eligible for up to
$1,500 per year.  The total amount of incentives cannot exceed
$100,000 in any year and requires that no more than 40 incentives
can be dispersed in January, March, May, July, and September of
each year.

TAX CREDIT FOR VOLUNTEER FIREFIGHTERS

Beginning January 1, 2009, the substitute authorizes an annual
$180 income tax credit for volunteer firefighters who complete
during the year at least 12 hours of any firefighter training
program approved by the Office of the State Fire Marshal within
the Department of Public Safety.  Beginning January 1, 2011, the
tax credit will increase to $360 per year if the firefighter
completes the Basic Fire Fighter Program or has been certified
after completing the Fire Fighter I or Fire Fighter II Program by
the Division of Fire Safety for at least 36 hours.  The tax
credit is not refundable but can be carried forward for four
years.

The provisions regarding the income tax credit for storm shelters
and the tax credit for volunteer firefighters will expire
December 31 six years from the effective date.  The provisions
regarding the Solar Water Heating System Incentive Program will
expire six years from the effective date.

FISCAL NOTE:  Estimated Cost on General Revenue Fund of
$14,279,112 to $22,285,779 in FY 2010, $333,722 to $12,680,389 in
FY 2011, and $353,590 to $12,700,257 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.

Missouri House of Representatives
95th General Assembly, 1st Regular Session
Last Updated November 17, 2009 at 9:26 am