HOUSE BILL NO. 3364 103RD GENERAL ASSEMBLY
INTRODUCED BY REPRESENTATIVE COSTLOW.
7308H.01I JOSEPH ENGLER, Chief Clerk
AN ACT To repeal section 394.080, RSMo, and to enact in lieu thereof seven new sections relating to use of resources by industrial users.
Be it enacted by the General Assembly of the state of Missouri, as follows:
Section A. Section 394.080, RSMo, is repealed and seven new sections enacted in 2 lieu thereof, to be known as sections 91.015, 91.016, 247.222, 393.403, 393.1780, 394.080, 3 and 640.640, to read as follows: 91.015. A municipally owned utility shall develop a service tariff schedule 2 applicable to customers reasonably projected to have an annual peak demand of fifty 3 megawatts or more. The tariff schedule shall ensure that customers' rates reasonably 4 reflect the representative share of the costs incurred to serve the customers and prevent 5 other customer classes' rates from reflecting unjust or unreasonable costs arising from 6 service to customers with an annual peak demand of fifty megawatts or more. 91.016. A municipally owned utility shall develop a service tariff schedule 2 applicable to customers reasonably projected to exceed two million gallons per day or 3 eighty percent of the available capacity for that system per day. The tariff schedule 4 shall ensure that customers' rates reasonably reflect the representative share of the costs 5 incurred to serve the customers and prevent other customer classes' rates from 6 reflecting unjust or unreasonable costs arising from service to customers reasonably 7 projected to exceed either two million gallons per day or eighty percent of the available 8 capacity for that system per day. 247.222. A public water supply district shall develop a service tariff schedule 2 applicable to customers reasonably projected to exceed either two million gallons per
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 3364 2
3 day or eighty percent of the available capacity for that system per day. The tariff 4 schedule shall ensure that customers' rates reasonably reflect the representative share of 5 the costs incurred to serve the customers and prevent other customer classes' rates from 6 reflecting unjust or unreasonable costs arising from service to customers with either two 7 million gallons per day or eighty percent of the available capacity for that system per 8 day. 393.403. A water corporation shall enter into a commission-approved contract 2 with customers whose water usage is reasonably projected to exceed either two million 3 gallons per day or eighty of the available capacity for that system per day. The contract 4 shall reasonably reflect the customer’s representative share of costs incurred to serve 5 the customer and prevent other customer classes' rates from reflecting any unjust or 6 unreasonable costs arising from service to such customer. The water corporation shall 7 submit such contracts for approval by the commission. 393.1780. 1. As used in this section, the term "large-load customer" shall mean: 2 (1) For an electrical provider with more than two hundred fifty thousand 3 customers, any electrical customer with an annual peak demand of one hundred 4 megawatts or more; and 5 (2) For an electrical provider with two hundred fifty thousand customers or 6 fewer, any electrical customer with an annual peak demand of more than fifty 7 megawatts but less than one hundred megawatts. 8 2. All electric providers shall establish a load-shedding plan with each large-load 9 customer for the protection or restoration of system operations. Load-shedding plans 10 shall prioritize continuation of service for critical facilities and residential services. 394.080. 1. A cooperative shall have power: 2 (1) To sue and be sued, in its corporate name; 3 (2) To have succession by its corporate name for the period stated in its articles of 4 incorporation or, if no period is stated in its articles of incorporation, to have such succession 5 perpetually; 6 (3) To adopt a corporate seal and alter the same at pleasure; 7 (4) Except as provided in section 386.800, to generate, manufacture, purchase, 8 acquire, accumulate and transmit electric energy, and to distribute, sell, supply, and dispose of 9 electric energy in rural areas to its members, to governmental agencies and political 10 subdivisions, and to other persons not in excess of ten percent of the number of its members; 11 provided, however, that where a cooperative has been transmitting, distributing, selling, 12 supplying or disposing of electric energy in a rural area which, by reason of increase in its 13 population, its inclusion in a city, town or village, or by reason of any other circumstance 14 ceases to be a rural area, such cooperative shall have the power to continue to transmit, HB 3364 3
15 distribute, sell, supply or dispose of electric energy therein until such time as the municipality, 16 or the holder of a franchise to furnish electric energy in such municipality, may purchase the 17 physical property of such cooperative located within the boundaries of the municipality, 18 pursuant to law, or until such time as the municipality may grant a franchise in the manner 19 provided by law to a privately owned public utility to distribute electric power within the 20 municipality and such privately owned public utility shall purchase the physical property of 21 such cooperative located within the boundaries of the municipality. In case any of the parties 22 to such purchase, as herein provided, cannot agree upon the fair and reasonable price to be 23 paid for the physical property of such cooperative within the municipality, or if either party 24 refuses to negotiate for the sale of such property upon the request of the other, the fair and 25 reasonable value of such property for such purchase shall be fixed by the public service 26 commission upon application of any one or more of the interested parties; 27 (5) To make loans to persons to whom electric energy is or will be supplied by the 28 cooperative for the purpose of, and otherwise to assist such persons in, wiring their premises 29 and installing therein electric and plumbing fixtures, appliances, apparatus and equipment of 30 any and all kinds and character, and in connection therewith, to purchase, acquire, lease, sell, 31 distribute, install and repair such electric and plumbing fixtures, appliances, apparatus and 32 equipment, and to accept or otherwise acquire, and to sell, assign, transfer, endorse, pledge, 33 hypothecate and otherwise dispose of notes, bonds and other evidences of indebtedness and 34 any and all types of security therefor; 35 (6) To make loans to persons to whom electric energy is or will be supplied by the 36 cooperative for the purpose of, and otherwise to assist such persons in, constructing, 37 maintaining and operating electric refrigeration plants; 38 (7) To construct, purchase, take, receive, lease as lessee, or otherwise acquire, and to 39 own, hold, use, equip, maintain, and operate, and to sell, assign, transfer, convey, exchange, 40 lease as lessor, mortgage, pledge, or otherwise dispose of or encumber, electric transmission 41 and distribution lines or systems, electric generating plants, electric refrigeration plants, lands, 42 buildings, structures, dams, plants and equipment, and any and all kinds and classes of real or 43 personal property whatsoever, which shall be deemed necessary, convenient or appropriate to 44 accomplish the purpose for which the cooperative is organized. For the purposes of this 45 section, "electric transmission and distribution lines or systems" includes, but is not limited 46 to, cooperative-owned or cooperative subsidiary-owned copper and fiber optic cable, facilities 47 and technology, or any combination thereof, that carries, or has the capacity to carry, light 48 signals and data beyond or in addition to the light signals and data necessary for the 49 transmission and distribution of electricity; HB 3364 4
50 (8) To purchase or otherwise acquire, and to own, hold, use and exercise and to sell, 51 assign, transfer, convey, mortgage, pledge, hypothecate, or otherwise dispose of or encumber, 52 franchises, rights, privileges, licenses, rights-of-way and easements; 53 (9) To borrow money and otherwise contract indebtedness, and to issue notes, bonds, 54 and other evidences of indebtedness therefor, and to secure the payment thereof by mortgage, 55 pledge, deed of trust, or any other encumbrance upon any or all of its then-owned or after- 56 acquired real or personal property, assets, franchises, revenues or income; 57 (10) To construct, maintain and operate electric transmission and distribution lines 58 along, upon, under and across all public thoroughfares, including without limitation, all roads, 59 highways, streets, alleys, bridges and causeways, and upon, under and across all publicly 60 owned lands, subject, however, to the requirements in respect of the use of such thoroughfares 61 and lands that are imposed by the respective authorities having jurisdiction thereof upon 62 corporations constructing or operating electric transmission and distribution lines or systems; 63 (11) To exercise the power of eminent domain in the manner provided by the laws of 64 this state for the exercise of that power by corporations constructing or operating electric 65 transmission and distribution lines or systems. If a property owner prevails against a rural 66 electric cooperative or a cooperative subsidiary in a suit in trespass or in inverse 67 condemnation filed after August 28, 2018, the trespass shall be deemed permanent and the 68 actual damages awarded shall be the fair market value, which, notwithstanding any other 69 provision of law, shall always be greater than zero, as defined and calculated in subdivision 70 (1) of section 523.001 and determined in accordance with section 523.039. In no case filed 71 after August 28, 2018, may evidence of revenues or profits derived, nor the rental value of an 72 assembled communications corridor, be admissible in determining fair market value. Such 73 actual damages shall be fixed at the time of the initial trespass, shall not be deemed to 74 continue, accumulate, or accrue, and upon payment of damages the defendant shall be granted 75 a permanent easement for the trespass litigated. If a property owner prevails in such suits, 76 punitive damages may be assessed and the property owner may be awarded additional 77 compensation for any physical damages to the property directly resulting from the trespass, if 78 any, and reasonable attorneys' fees, costs, and expenses consistent with subsection 4 of 79 section 523.283; 80 (12) To conduct its business and exercise any or all of its powers within or without 81 this state; 82 (13) To adopt, amend and repeal bylaws; and 83 (14) To do and perform any and all other acts and things, and to have and exercise any 84 and all other powers which may be necessary, convenient or appropriate to accomplish the 85 purpose for which the cooperative is organized. HB 3364 5
86 2. In addition to all other powers granted in this section, rural electric cooperatives 87 shall have the power to supply electric energy at retail after August 28, 1989, in cities, towns 88 and villages having a population in excess of fifteen hundred inhabitants under the following 89 conditions: 90 (1) The cooperative was the predominant supplier of retail electric energy within the 91 city, town or village at the time any official United States Census Bureau Decennial Census 92 Report declares the population of such city, town or village to be in excess of fifteen hundred 93 inhabitants; 94 (2) The city, town or village has granted to the cooperative a franchise to supply 95 electric energy within the city, town or village. 96 3. In addition, the cooperative shall provide, concurrent with its application to the 97 city, town or village for its initial franchise, written notice of its franchise application to all 98 other providers of electric energy at retail operating within such city, town or village. 99 4. The provisions of subsections 2 and 3 of this section shall in no way affect or 100 diminish the rights and duties of any city, town or village to grant franchises to electric 101 suppliers in the manner provided by law or of any electrical corporation authorized by law to 102 provide electric service at retail within such city, town or village. 103 5. Notwithstanding the provisions of subsection 2 of this section, after a public 104 hearing upon a complaint, the public service commission may order that service be provided 105 by another supplier if it finds that service from another supplier of electricity is in the public 106 interest for a reason other than rate differential. Nothing in this section shall be construed as 107 conferring upon the public service commission jurisdiction over the rates, financing, 108 accounting or management of any electric cooperative. 109 6. The powers conferred upon rural electric cooperatives under this section and 110 section 394.085 shall be subject to the provisions of section 416.031. 111 7. A cooperative shall develop a service tariff schedule applicable to customers 112 reasonably projected to have an annual peak demand of fifty megawatts or more. The 113 tariff schedule shall ensure that customers' rates reasonably reflect the representative 114 share of the costs incurred to serve the customers and prevent other customer classes' 115 rates from reflecting unjust or unreasonable costs arising from service to customers 116 with an annual peak demand of fifty megawatts or more. 640.640. 1. For the purposes of this section, the following terms mean: 2 (1) "Applicant", any person applying for a major industrial water-user permit; 3 (2) "Beneficial uses", water uses that include, but are not limited to, domestic, 4 agricultural, industrial, recreational, and other legitimate beneficial uses; 5 (3) "Department", the Missouri department of natural resources; 6 (4) "Director", the director of the department of natural resources; HB 3364 6
7 (5) "Major industrial water user permit", a permit issued by the department 8 granting the withdrawal of water from a water resource in the amount of two million 9 gallons or more per day; 10 (6) "Person", any individual, partnership, copartnership, firm, company, public 11 or private corporation, association, joint stock company, trust, estate, political 12 subdivision, water district, or any agency, board, department, or bureau of the 13 federal or any state government, or any other legal entity that is recognized by law as 14 the subject of rights and duties; 15 (7) "Water resources", any Missouri water source occurring on the surface, in 16 natural or artificial channels, lakes, reservoirs, or impoundments, or in subsurface 17 aquifers that are available or that may be made available. 18 2. In order to protect the access, use, and enjoyment of Missouri's water 19 resources, it shall be unlawful for any person to withdraw and use more than two 20 million gallons of water per day on average in a single month unless such person holds a 21 major industrial water user permit issued by the department, is a public water system 22 as defined in section 640.102, or such water is used for agricultural purposes. 23 3. The director shall review each major industrial water user permit application 24 and all supporting materials to ensure all the following conditions have been met prior 25 to approving a major industrial water user permit application: 26 (1) There are water resources available in the volumes and withdrawal rates 27 requested by the applicant; 28 (2) The volume and withdrawal rates requested by the applicant shall not exceed 29 eighty percent of the capacity of the water resource; 30 (3) The volume and withdrawal rates requested by the applicant shall not 31 interfere with existing and projected in-state beneficial uses; and 32 (4) The applicant has demonstrated that water in the amounts and rates 33 requested can feasibly be withdrawn. 34 4. Whenever a person applies for a major industrial water user permit or major 35 industrial water user permit renewal, the department shall send a written notice to the 36 county commission of the county where the water resource is located within thirty 37 business days after receiving the permit application. 38 5. (1) Within one hundred twenty days after the receipt of a complete 39 application, the director shall determine whether the applicant complied with the 40 provisions of subsection 3 of this section. The director shall, after making such 41 determination, hold a thirty-day public comment period regarding the director's 42 determination. Within sixty days after the comment period, the director shall approve 43 or deny the permit. HB 3364 7
44 (2) To renew a valid major industrial water user permit, an applicant shall file a 45 renewal application for a major industrial water user permit with the department no 46 later than two hundred seventy-one days prior to the expiration of the existing permit. 47 The applicant and director shall follow the same procedures and timelines as required 48 for the issuance of a new major industrial water user permit under this section. The 49 director may impose additional conditions to address any substantial or material change 50 in factors under subsection 3 of this section or may deny a renewal application as 51 necessary to comply with this section based on any such substantial or material changes 52 in factors under subsection 3 of this section. If the director is in the process of reviewing 53 the renewal application before the final decision is made and the existing applicant's 54 major industrial water user permit expires, such applicant shall be able to operate 55 under the terms of the expired permit until a final decision is made by the director on 56 the renewal of such permit. 57 (3) In the absence of an appeal as provided under chapter 536, the decision of the 58 director shall be final. 59 6. A major industrial water user permit shall be in effect for five years from the 60 date of issuance. The permit holder shall annually report the water use volumes and 61 withdrawal rates to the department in a manner and on timelin