Missouri Senate

Senate Committee Substitute

OIL AND GAS, HAZARDOUS WASTE, MINING, SAFE DRINKING WATER, AIR CONSERVATION, AND CLEAN WATER FEE STRUCTURES (Sections 259.080, 260.380, 260.475, 444.768, 640.100, 643.079, and 644.057) - Currently, the Hazardous Waste Management Commission, the Air Conservation Commission, and the Clean Water Commission may promulgate regulations for the implementation of a fee structure after certain actions have been taken. This act instead requires that such commissions authorize the Department of Natural Resources to file the order of rulemaking. Currently, the authority of such commissions to revise the fee structure in the current manner shall expire in 2023. This act extends this date to 2024.

Currently, the Land Reclamation Commission collects certain fees relating to mining operations. Under this act, the Land Reclamation Commission may take certain actions in order to implement a new fee structure by authorizing the Department of Natural Resources to file an order of rulemaking. The authority of the Commission to revise the fee structure in this manner shall expire in 2024.

Currently, the Safe Drinking Water Commission collects an annual fee per customer service connection. Such fee is set to expire on September 1, 2017. Under this act, the Safe Drinking Water Commission may take certain actions in order to implement a new fee structure by authorizing the Department of Natural Resources to file an order of rulemaking. The authority of the Safe Drinking Water Commission to revise the fee structure in this manner shall expire in 2024.

Currently, the State Oil and Gas Council does not charge a fee for obtaining a permit for drilling operations. Under this act, a fee shall be remitted to the Department of Natural Resources for obtaining a permit. The State Oil and Gas Council may further authorize the Department of Natural Resources to file an order of rulemaking amending the fee structure as set forth in this act. Such authority to revise the fee structure shall expire in 2024. If any applicant fails to pay the appropriate fee, a penalty may be assessed and relief may be sought by the Department of Natural Resources in the appropriate circuit court.

OIL AND GAS COUNCIL (Sections 259.010-259.190) - This act modifies the composition of the State Oil and Gas Council by removing one member from the Division of Geology and Land Survey and replacing the member with the State Geologist. Currently, the chairman and vice chairman are elected by the Council. Under this act, the chairperson of the Council shall be the member from the Missouri University of Science and Technology petroleum engineering program and the vice chairperson of the Council shall be the State Geologist.

Currently, members of the Council receive reimbursement for their expenses for serving on the Council by their respective entities. Under this act, expenses of public members of the Council shall be paid from the Oil and Gas Resources Fund rather than from the Oil and Gas Remedial Fund. Under this act, the Oil and Gas Remedial Fund may be used for remedial measures on wells.

This act defines "department" and modifies the definitions of "oil" and "product". This act creates the Oil and Gas Resources Fund. Such fund shall be used to administer the oil and gas provisions of law, and to collect, process, manage, interpret, and distribute information pertaining to oil and gas potential.

Currently, the Oil and Gas Council has the power to form an advisory committee made up of representatives from the Division of Geology and Land Survey, the oil and gas industry, and other interested parties. Under this act, the committee representatives from the Division of Geology and Land Survey are replaced with representatives from the Department of Natural Resources. Similarly, the Oil and Gas Council is required to act through the Department of Natural Resources in their authority to perform certain actions rather than through the Office of the State Geologist.

Currently, the Oil and Gas Council may require a surety bond, or a personal bond in lieu of a surety bond, from certain entities. This act removes the provision that allows the Oil and Gas Council to require a personal bond in lieu of a surety bond. Further, a permit applicant for a noncommercial gas well is required to file a bond under this act.

Any department order establishing spacing units may be modified by the Department of Natural Resources. Under this act, orders of the Department shall be appealed to the Oil and Gas Council within 30 days of notification that spacing units have been changed. Currently, an owner of a noncommercial gas well may apply to the Oil and Gas Council for a variance to establish a drilling unit of a certain area. Under this act, the area requirement is repealed.

SCRAP TIRES (Sections 260.273-260.279) - The fee imposed for each new tire sold at retail will expire in 2015. This act extends this expiration to 2020. Further, this act replaces all references to "waste" tires to "scrap" tires.

RADIOACTIVE WASTE (Section 260.392) - Currently, the Environmental Radiation Monitoring Fund and the program monitoring shipment of hazardous waste will expire in 2015. This act extends this expiration to 2024.

STRIP MINE LAW, LAND RECLAMATION ACT, & SURFACE COAL MINING LAW (Sections 260.355, 444.510-444.805, 640.015, and 640.016) - This act changes the name of the Land Reclamation Commission to the Missouri Mining Commission. This act expands the number of members on the Commission from 7 to 8, with the additional member having training and experience in subsurface mining. Currently, 4 members of the Commission are appointed by the Governor. Under this act, 5 members of the Commission are appointed by the Governor with no more than 3 being from the same political party.

This act removes references to surface mining in the policy statement of the Land Reclamation Act. Further, this act modifies the definition of "mineral" under the Land Reclamation Act.

WOOD BURNING HEATERS (Section 643.055) - This act bans the Department of Natural Resources from regulating the manufacturing, performance, or use of residential wood burning heaters through a state implementation plan unless authorized by the General Assembly and approved by the Joint Committee on Administrative Rules. Under this act, any new regulations on such wood burning heaters shall not apply to existing heaters.

CLEAN WATER COMMISSION (Section 644.026) - This act gives the Clean Water Commission the sole designated authority to enforce the federal Clean Water Act.

WATER POLLUTION (Section 644.051) - This act removes a provision that allowed the Department of Natural Resources to take action to assure protection of the environment and human health in issuing construction permits, and removes the ability of the Department of Natural Resources to assess when a construction permit is necessary. Instead, this act specifies when a construction permit may be required, including to address noncompliance.

WATER QUALITY STANDARDS (Section 644.058) - This act modifies the authority of the Clean Water Commission so that it may only revise water quality standards upon completion of an assessment by the Department of Natural Resources finding that there is an environmental need for such revision. In implementing revised water quality standards modifications of 25% or more, the Department of Natural Resources shall also conduct an evaluation as set forth in this act. The Department shall use these evaluations in making site-specific permit decisions.

The provisions of this section are identical to SCS/SB 664 (2014) and similar to HCS/HB 1074 (2014).

PUBLICLY OWNED TREATMENT WORKS (Section 644.145 & 644.146) - When issuing permits that incorporate a new requirement for discharges from a publicly owned treatment works facility, the Department of Natural Resources shall make a finding of affordability on the costs to be incurred and the impact of any rate changes on ratepayers. This act defines "finding of affordability" and modifies the definition of "affordability". The finding of affordability shall be based upon certain criteria as set forth in this act. Further, this act requires that the Department of Natural Resources file an annual report with the Governor and certain members of the General Assembly on findings of affordability completed in the previous calendar year. The report shall contain certain criteria as set forth in this act.

Further, this act allows the provisions of the Property Assessment Clean Energy Act to be utilized for the purpose of sewer and drinking water installations, repairs, and modifications

The provisions of this act are substantially similar to SCS/SB 968 (2014).

KAYLA CRIDER