HCS SCS SB 1261 -- ENVIRONMENTAL PROTECTION

SPONSOR:  Bray (Bivins)

COMMITTEE ACTION:  Voted "do pass" by the Special Committee on
Energy and Environment by a vote of 11 to 0.

This substitute changes the laws regarding environmental
regulations and energy efficiency and conservation practices.  In
its main provisions, the substitute:

(1)  Requires 10% of the funds appropriated to the Facilities
Maintenance Reserve Fund to be used for energy projects with a
10-year or less payback period;

(2)  Requires the Department of Natural Resources to establish
minimum energy efficiency standards for state buildings based on
the 2006 International Energy Conservation Code.  State buildings
must meet the new standards on or after July 1, 2009.  The Office
of Administration will determine whether the energy efficiency
standard is met and may exempt buildings based on safety or cost
considerations;

(3)  Requires state government to use 10% renewable energy on or
after July 1, 2016, and 20% renewable energy on or after July 1,
2026, unless the use of renewable energy over normal energy
results in a 10% or greater price increase;

(4)  Allows low-interest loans through the Linked Deposit Loan
Program for eligible alternative energy operations producing and
selling fuel or power from alternative energy sources including
solar, hydroelectric, wind, and qualified biomass;

(5)  Authorizes an income tax deduction administered by the
department for the cost of home energy audits and implementing
audit recommendations.  The deduction is limited to $1,000 per
taxpayer per year or $2,000 for taxpayers filing combined
returns;

(6)  Establishes the Show Me Green Sales Tax Holiday beginning in
2009 and every year thereafter.  Energy Star certified appliances
will be exempt from state sales taxes from April 19 through
April 26.  Political subdivisions may opt in at their discretion;

(7)  Requires representatives from the departments of Labor and
Industrial Relations, Elementary and Secondary Education,
Agriculture, Economic Development, and Natural Resources to meet
at least twice a year to collaborate to secure grants established
under the federal Energy Independence and Security Act of 2007.
The Department of Natural Resources will coordinate the
inter-agency group, and the group will annually report on the
grants secured to the Governor and General Assembly;

(8)  Requires the Missouri Energy Task Force to reconvene at
least annually to review progress made toward meeting the
recommendations of its final report and issue an annual status
report to the Governor and General Assembly;

(9)  Designates the Energy Center of the Department of Natural
Resources as a coordinator for energy sustainability activities
in the state;

(10)  Establishes minimum energy standards for certain appliances
and goods sold in the state.  The Department of Natural Resources
and the Office of the Attorney General may prevent the sale of
certain products that do not meet Energy Star Certification
requirements or that do not meet federal minimum energy
standards.  The composition and powers of an advisory group used
to enforce these minimum energy standards are specified in the
substitute, and the department may audit appliances and products
to determine compliance;

(11)  Establishes the Renewable Energy Information and Reporting
Act which requires the Missouri Public Service Commission to
provide an annual report on renewable energy trends and new
developments to the Governor, General Assembly, any public
interest group interested in energy and the environment, and all
entities in the energy industry.  The report's requirements are
specified in the substitute;

(12)  Requires a seller as part of a newly constructed
residential home sales transaction occurring on or after
August 28, 2008, to disclose its energy efficiency rating under
the energy star rating system to the purchasers at least one week
before completion of the sale.  If a seller fails to disclose the
rating on time, the purchaser may withhold $500 from the purchase
price; or if full payment has already been made, he or she may
pursue legal action for the $500 refund and other costs and
attorney fees;

(13)  Establishes the Missouri Alternative Energy Loan Authority,
within the Department of Natural Resources, to provide
low-interest loans to public and private entities for the purpose
of financing various energy-saving projects and services.  The
authority will consist of nine members appointed by the Governor
with the advice and consent of the Senate.  The members' terms
and reappointment eligibility are specified in the substitute.
Action may be taken upon the affirmative vote of at least five
members.  The authority must file an annual financial statement
with the department director.  An initial appropriation of $15
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;

(14)  Establishes, subject to appropriations, a professorship of
energy efficiency and conservation at Missouri State University
and allows the Department of Natural Resources to establish other
similar professorships at public universities; and

(15)  Establishes the Green Building Tax Credit which will be
available to those constructing or remodeling certain residential
and industrial use buildings.  The amount of the credit will be
limited to $50,000 per applicant per tax year.  Requirements for
receiving tax credits are specified, and the Department of
Natural Resources will implement the tax credit and certify the
construction of green buildings.

The provisions of the substitute regarding the Green Building Tax
Credit Program will expire three years from the effective date
and the provisions regarding the income tax deduction for home
energy audits will expire December 31, 2013.

FISCAL NOTE:  Estimated Cost on General Revenue Fund of Unknown -
Greater than $15,974,240 in FY 2009, Unknown Greater than
$1,056,131 in FY 2010, and Unknown - Greater than $1,087,289 in
FY 2011.  Estimated Effect on Other State Funds of an income of
Unknown to a cost of Unknown in FY 2009, FY 2010, and FY 2011.

PROPONENTS:  Supporters say that the bill will increase the
possibility of receiving federal grants.  Missouri is not
competing for grants made available by recent federal
legislation.

Testifying for the bill were Senator Bray; Representative
Holsman; Missouri Sierra Club; and Midwest Alliance for Renewable
Energy.

OPPONENTS:  There was no opposition voiced to the committee.

Missouri House of Representatives
94th General Assembly, 2nd Regular Session
Last Updated October 15, 2008 at 3:13 pm