HOUSE BILL NO. 2657 103RD GENERAL ASSEMBLY
INTRODUCED BY REPRESENTATIVE COSTLOW.
6219H.01I JOSEPH ENGLER, Chief Clerk
AN ACT To repeal sections 8.800, 30.750, 67.2800, 135.950, 260.035, 386.890, 386.895, 393.1025, 393.1030, 393.1050, and 620.1878, RSMo, and to enact in lieu thereof eleven new sections relating to renewable energy.
Be it enacted by the General Assembly of the state of Missouri, as follows:
Section A. Sections 8.800, 30.750, 67.2800, 135.950, 260.035, 386.890, 386.895, 2 393.1025, 393.1030, 393.1050, and 620.1878, RSMo, are repealed and eleven new sections 3 enacted in lieu thereof, to be known as sections 8.800, 30.750, 67.2800, 135.950, 260.035, 4 386.890, 386.895, 393.1025, 393.1030, 393.1050, and 620.1878, to read as follows: 8.800. As used in sections 8.800 to 8.825, the following terms mean: 2 (1) "Builder", the prime contractor that hires and coordinates building subcontractors 3 or if there is no prime contractor, the contractor that completes more than fifty percent of the 4 total construction work performed on the building. Construction work includes, but is not 5 limited to, foundation, framing, wiring, plumbing and finishing work; 6 (2) "Department", the department of economic development; 7 (3) "Designer", the architect, engineer, landscape architect, builder, interior designer 8 or other person who performs the actual design work or is under the direct supervision and 9 responsibility of the person who performs the actual design work; 10 (4) "District heating and cooling systems", heat pump systems which use waste heat 11 from factories, sewage treatment plants, municipal solid waste incineration, lighting and other 12 heat sources in office buildings or which use ambient thermal energy from sources including 13 temperature differences in rivers to provide regional heating or cooling; 14 (5) "Division", the division of facilities management, design and construction;
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. HB 2657 2
15 (6) "Energy efficiency", the increased productivity or effectiveness of energy 16 resources use, the reduction of energy consumption, or the use of renewable energy sources; 17 (7) "Gray water", all domestic wastewater from a state building except wastewater 18 from urinals, toilets, laboratory sinks, and garbage disposals; 19 (8) "Life cycle costs", the costs associated with the initial construction or renovation 20 and the proposed energy consumption, operation and maintenance costs over the useful life of 21 a state building or over the first twenty-five years after the construction or renovation is 22 completed; 23 (9) "Public building", a building owned or operated by a governmental subdivision of 24 the state, including, but not limited to, a city, county or school district; 25 (10) "Renewable energy source", a source of thermal, mechanical or electrical energy 26 produced from nuclear, solar, wind, low-head hydropower, biomass, hydrogen or geothermal 27 sources, but not from the incineration of hazardous waste, municipal solid waste or sludge 28 from sewage treatment facilities; 29 (11) "State agency", a department, commission, authority, office, college or university 30 of this state; 31 (12) "State building", a building owned by this state or an agency of this state; 32 (13) "Substantial renovation" or "substantially renovated", modifications that will 33 affect at least fifty percent of the square footage of the building or modifications that will cost 34 at least fifty percent of the building's fair market value. 30.750. As used in sections 30.750 to 30.765, the following terms mean: 2 (1) "Eligible agribusiness", a person engaged in the processing or adding of value to 3 agricultural products produced in Missouri; 4 (2) "Eligible alternative energy consumer", an individual who wishes to borrow 5 moneys for the purchase, installation, or construction of facilities or equipment related to the 6 production of fuel or power primarily for the individual's own use from energy sources other 7 than fossil fuels, including but not limited to nuclear, solar, hydroelectric, wind, and qualified 8 biomass; 9 (3) "Eligible alternative energy operation", a business enterprise engaged in the 10 production of fuel or power from energy sources other than fossil fuels, including but not 11 limited to nuclear, solar, hydroelectric, wind, and qualified biomass. Such business 12 enterprise shall conform to the characteristics of paragraphs (a), (b), and (d) of subdivision (6) 13 of this section; 14 (4) "Eligible beginning farmer": 15 (a) For any beginning farmer who seeks to participate in the linked deposit program 16 alone, a farmer who: 17 a. Is a Missouri resident; HB 2657 3
18 b. Wishes to borrow for a farm operation located in Missouri; 19 c. Is at least eighteen years old; and 20 d. In the preceding five years has not owned, either directly or indirectly, farm land 21 greater than fifty percent of the average size farm in the county where the proposed farm 22 operation is located or farm land with an appraised value greater than four hundred fifty 23 thousand dollars. A farmer who qualifies as an eligible farmer under this provision may 24 utilize the proceeds of a linked deposit loan to purchase agricultural land, farm buildings, new 25 and used farm equipment, livestock and working capital; 26 (b) For any beginning farmer who is participating in both the linked deposit program 27 and the beginning farmer loan program administered by the Missouri agriculture and small 28 business development authority, a farmer who: 29 a. Qualifies under the definition of a beginning farmer utilized for eligibility for 30 federal tax-exempt financing, including the limitations on the use of loan proceeds; and 31 b. Meets all other requirements established by the Missouri agriculture and small 32 business development authority; 33 (5) "Eligible facility borrower", a borrower qualified under section 30.860 to apply 34 for a reduced-rate loan under sections 30.750 to 30.765; 35 (6) "Eligible farming operation", any person engaged in farming in an authorized 36 farm corporation, family farm, or family farm corporation as defined in section 350.010 that 37 has all of the following characteristics: 38 (a) Is headquartered in this state; 39 (b) Maintains offices, operating facilities, or farming operations and transacts 40 business in this state; 41 (c) Employs less than ten employees; 42 (d) Is organized for profit; 43 (7) "Eligible governmental entity", any political subdivision of the state seeking to 44 finance capital improvements, capital outlay, or other significant programs through an eligible 45 lending institution; 46 (8) "Eligible higher education institution", any approved public or private institution 47 as defined in section 173.205; 48 (9) "Eligible job enhancement business", a new, existing, or expanding firm operating 49 in Missouri, or as a condition of accepting the linked deposit, will locate a facility or office in 50 Missouri associated with said linked deposit, which employs ten or more employees in 51 Missouri on a yearly average and which, as nearly as possible, is able to establish or retain at 52 least one job in Missouri for each fifty thousand dollars received from a linked deposit loan 53 except when the applicant can demonstrate significant costs for equipment, capital outlay, or 54 capital improvements associated with the physical expansion, renovation, or modernization of HB 2657 4
55 a facility or equipment. In such cases, the maximum amount of the linked deposit shall not 56 exceed fifty thousand dollars per job created or retained plus the initial cost of the physical 57 expansion, renovation or capital outlay; 58 (10) "Eligible lending institution", a financial institution that is eligible to make 59 commercial or agricultural or student loans or discount or purchase such loans, is a public 60 depository of state funds or obtains its funds through the issuance of obligations, either 61 directly or through a related entity, eligible for the placement of state funds under the 62 provisions of Section 15, Article IV, Constitution of Missouri, and agrees to participate in the 63 linked deposit program; 64 (11) "Eligible livestock operation", any person engaged in production of livestock or 65 poultry in an authorized farm corporation, family farm, or family farm corporation as defined 66 in section 350.010; 67 (12) "Eligible locally owned business", any person seeking to establish a new firm, 68 partnership, cooperative company, or corporation that shall retain at least fifty-one percent 69 ownership by residents in a county in which the business is headquartered, that consists of the 70 following characteristics: 71 (a) The county has a median population of twelve thousand five hundred or less; and 72 (b) The median income of residents in the county are equal to or less than the state 73 median income; or 74 (c) The unemployment rate of the county is equal to or greater than the state's 75 unemployment rate; 76 (13) "Eligible marketing enterprise", a business enterprise operating in this state 77 which is in the process of marketing its goods, products or services within or outside of this 78 state or overseas, which marketing is designed to increase manufacturing, transportation, 79 mining, communications, or other enterprises in this state, which has proposed its marketing 80 plan and strategy to the department of economic development and which plan and strategy 81 has been approved by the department for purposes of eligibility pursuant to sections 30.750 to 82 30.765. Such business enterprise shall conform to the characteristics of paragraphs (a), (b) 83 and (d) of subdivision (6) of this section and also employ less than twenty-five employees; 84 (14) "Eligible multitenant development enterprise", a new enterprise that develops 85 multitenant space for targeted industries as determined by the department of economic 86 development and approved by the department for the purposes of eligibility pursuant to 87 sections 30.750 to 30.765; 88 (15) "Eligible residential property developer", an individual who purchases and 89 develops a residential structure of either two or four units, if such residential property 90 developer uses and agrees to continue to use, for at least the five years immediately following 91 the date of issuance of the linked deposit loan, one of the units as his principal residence or if HB 2657 5
92 such person's principal residence is located within one-half mile from the developed structure 93 and such person agrees to maintain the principal residence within one-half mile of the 94 developed structure for at least the five years immediately following the date of issuance of 95 the linked deposit loan; 96 (16) "Eligible residential property owner", a person, firm or corporation who 97 purchases, develops or rehabilitates a multifamily residential structure; 98 (17) "Eligible small business", a person engaged in an activity with the purpose of 99 obtaining, directly or indirectly, a gain, benefit or advantage and which conforms to the 100 characteristics of paragraphs (a), (b) and (d) of subdivision (6) of this section, and also 101 employs less than one hundred employees or an eligible veteran-owned small business as 102 defined in subdivision (19) of this section; 103 (18) "Eligible student borrower", any person attending, or the parent of a dependent 104 undergraduate attending, an eligible higher education institution in Missouri who may or may 105 not qualify for need-based student financial aid calculated by the federal analysis called 106 Congressional Methodology Formula pursuant to 20 U.S.C. 1078, as amended (the Higher 107 Education Amendments of 1986); 108 (19) "Eligible veteran-owned small business", any business owned by an honorably 109 discharged veteran and Missouri resident who has agreed to locate his or her business in 110 Missouri for a minimum of three years and employs less than one hundred employees, a 111 majority of whom are Missouri residents; 112 (20) "Eligible water supply system", a water system which serves fewer than fifty 113 thousand persons and which is owned and operated by: 114 (a) A public water supply district established pursuant to chapter 247; or 115 (b) A municipality or other political subdivision; or 116 (c) A water corporation; 117 118 and which is certified by the department of natural resources in accordance with its rules and 119 regulations to have suffered a significant decrease in its capacity to meet its service needs as a 120 result of drought; 121 (21) "Farming", using or cultivating land for the production of agricultural crops, 122 livestock or livestock products, forest products, poultry or poultry products, milk or dairy 123 products, or fruit or other horticultural products; 124 (22) "Linked deposit", a certificate of deposit, or in the case of production credit 125 associations, the subscription or purchase outright of obligations described in Section 15, 126 Article IV, Constitution of Missouri, placed by the state treasurer with an eligible lending 127 institution at rates otherwise provided by law in section 30.758, provided the institution 128 agrees to lend the value of such deposit, according to the deposit agreement provided in HB 2657 6
129 sections 30.750 to 30.765, to eligible multitenant development enterprises, eligible small 130 businesses, eligible alternative energy operations, eligible alternative energy consumers, 131 eligible locally owned businesses, farming operations, eligible job enhancement businesses, 132 eligible marketing enterprises, eligible residential property developers, eligible residential 133 property owners, eligible governmental entities, eligible agribusinesses, eligible beginning 134 farmers, eligible livestock operations, eligible student borrowers, eligible facility borrowers, 135 or eligible water supply systems at below the present borrowing rate applicable to each 136 multitenant development enterprise, small business, alternative energy operation, alternative 137 energy consumer, farming operation, eligible job enhancement business, eligible marketing 138 enterprise, eligible residential property developer, eligible residential property owner, eligible 139 governmental entity, eligible agribusiness, eligible beginning farmer, eligible livestock 140 operation, eligible student borrower, or supply system at the time of the deposit of state funds 141 in the institution; 142 (23) "Market rate", the interest rate more specifically described in subsection 6 of 143 section 30.260; 144 (24) "Professional forester", any individual who holds a bachelor of science degree in 145 forestry from a regionally accredited college or university with a minimum of two years of 146 professional forest management experience; 147 (25) "Qualified biomass", any agriculture-derived organic material or any wood- 148 derived organic material harvested in accordance with a site-specific forest management plan 149 focused on long-term forest sustainability developed by a professional forester and qualified, 150 in consultation with the conservation commission, by the agriculture and small business 151 development authority; 152 (26) "Water corporation", as such term is defined in section 386.020; 153 (27) "Water system", as such term is defined in section 386.020. 67.2800. 1. Sections 67.2800 to 67.2840 shall be known and may be cited as the 2 "Property Assessment Clean Energy Act". 3 2. As used in sections 67.2800 to 67.2840, the following words and terms shall mean: 4 (1) "Assessment contract", a contract entered into between a clean energy 5 development board and a property owner under which the property owner agrees to pay an 6 annual assessment for a period of up to twenty years not to exceed the weighted average 7 useful life of the qualified improvements in exchange for financing of an energy efficiency 8 improvement or a renewable energy improvement; 9 (2) "Authority", the state environmental improvement and energy resources authority 10 established under section 260.010; 11 (3) "Bond", any bond, note, or similar instrument issued by or on behalf of a clean 12 energy development board; HB 2657 7
13 (4) "Clean energy conduit financing", the financing of energy efficiency 14 improvements or renewable energy improvements for a single parcel of property or a 15 unified development consisting of multiple adjoining parcels of property under section 16 67.2825; 17 (5) "Clean energy development board", a board formed by one or more municipalities 18 under section 67.2810; 19 (6) "Director", the director of the division of finance within the department of 20 commerce and insurance; 21 (7) "Division", the division of finance within the department of commerce and 22 insurance; 23 (8) "Energy efficiency improvement", any acquisition, installation, or modification on 24 or of publicly or privately owned property designed to reduce the energy consumption of such 25 property, including but not limited to: 26 (a) Insulation in walls, roofs, attics, floors, foundations, and heating and cooling 27 distribution systems; 28 (b) Storm windows and doors, multiglazed windows and doors, heat-absorbing or 29 heat-reflective windows and doors, and other window and door improvements designed to 30 reduce energy consumption; 31 (c) Automatic energy control systems; 32 (d) Heating, ventilating, or air conditioning distribution system modifications and 33 replacements; 34 (e) Caulking and weatherstripping; 35 (f) Replacement or modification of lighting fixtures to increase energy efficiency of 36 the lighting system without increasing the overall illumination of the building unless the 37 increase in illumination is necessary to conform to applicable state or local building codes; 38 (g) Energy recovery systems; and 39 (h) Daylighting systems; 40 (9) "Municipality", any county, city, or incorporated town or village of this state; 41 (10)