SB 275
Modifies provisions relating to utilities
Sponsor:
LR Number:
1161H.05C
Last Action:
5/12/2023 - S Bills with H Amendments
Journal Page:
Title:
HCS SB 275
Effective Date:
August 28, 2023
House Handler:

Current Bill Summary

HCS/SB 275 - This act modifies provisions relating to utilities.

ELECTRIC VEHICLE CHARGING STATIONS

This act provides that any political subdivision that adopts an ordinance or other regulation that requires installation of electric vehicle charging stations shall pay all costs associated with the installation, maintenance, and operation of such stations. No political subdivision shall adopt any ordinance or other regulation that requires more than five such stations per parking lot, or infrastructure for future installation of more than five such stations per parking lot. Such ordinances and regulations shall only apply to parking lots with more than thirty parking spaces.

No political subdivision shall adopt any ordinance, resolution, regulation, code or policy to require schools or religious organizations to install an electric vehicle charging station.

This act does not prohibit private entities from paying for the installation, maintenance, and operation of electric vehicle charging stations. (Section 67.288)

This provision is substantially similar to SB 233 (2023) and HB 1584 (2022), and to a provision in SS/SCS/HCS/HB 184 (2023).

VIDEO SERVICE PROVIDERS

This act modifies the definition of "video service" to include the provision of video programming by a video service provider provided through wireline facilities located in a public right-of-way without regard to the delivery technology. Video services does not include any video programming accessed via a service that enables users to access content over the internet, including streaming content. (Section 67.2677)

This provision is identical to SB 299 (2023) and HCS/HBs 651, 479 & 647 (2023), and to a provision in HCS/HB 536 (2023), and is substantially similar to SB 152 (2023) and to a provision in SS/SCS/HCS/HB 184 (2023).

ASSESSMENT OF SOLAR PROPERTY

Beginning January 1, 2024, for purposes of assessing all real and tangible personal property associated with a project that uses solar energy directly to generate electricity, and that was built prior to December 31, 2023, shall be considered to be de minimis in value. The assessor shall request any documentation necessary to determine the true value in money of such property.

The tax liability actually owed for solar energy property that was built prior to December 31, 2023, shall not exceed $500 per megawatt. For projects for which the land associated with such project is reclassified due to the project, the property tax liability incurred from such land shall be included in such limit. (Section 137.077)

This provision shall expire on December 31, 2050.

This provision is substantially similar to SCS/SB 607 (2023) and HB 1246 (2023).

ASSESSMENT OF STATIONARY PROPERTY

Beginning January 1, 2024, the provisions of current law relating to depreciable tangible personal property shall apply to all stationary property used for transportation or storage of liquid and gaseous products, including, but not limited to, natural gas that is not LP gas, water, and sewage that was or will be placed in service at any time.

To estimate the value of such stationary property, this act requires that the assessor shall value such property by applying the twenty-year depreciation schedule provided in current law to the original cost of the property. The presumption as to the proper method of determining the assessed value of such property shall apply regardless of when such property was placed in service.

The act requires each taxpayer to provide to the assessor, upon written request from the assessor received no later than January 31 of the applicable tax year, the original cost and year placed in service of such property summarized in a format that is substantially similar to the real property reporting and valuation forms contained in section 7.4 of the State Tax Commission assessor manual (revision date March 23, 2016). Such information shall be provided for each taxing district within the assessor's jurisdiction if the assessor's written request includes a description of each taxing district that is sufficient to enable the taxpayer to provide such information and such information is maintained by and readily available to the taxpayer. The taxpayer shall certify that the information provided to the assessor is accurate to the best of its knowledge. All information provided to an assessor pursuant to this act shall be considered proprietary information and shall be accessible only to the assessor and the assessor's staff for internal use only. (Section 137.122)

This provision is substantially similar to SB 533 (2023), HB 349 (2023), SB 196 (2021), SCS/SB 785 (2020), and HCS/HB 1907 (2020), and to provisions in SCS/SB 944 (2022) and HCS/HB 2208 (2022).

SALES TAX EXEMPTION FOR UTILITIES

This act creates a state and local sales tax exemption for utilities, equipment, and materials used to generate or transmit electricity. A public utility realizing savings as a result of this exemption shall provide the Public Service Commission information on the amount of savings realized and shall include a statement that such savings will be passed through to the public utility's rate determined in the public utility's next general rate proceeding. (Section 144.058)

This provision is identical to a provision in HCS/SB 247 (2023) and SCS/HCS/HB 154 (2023), is substantially similar to SB 300 (2023), SB 246 (2021), SB 757 (2020), SB 467 (2019), HB 64 (2017), SB 784 (2016), SB 480 (2015), and HB 693 (2015), and is similar to HB 1511 (2018), HB 2255 (2014), and to a provision in CCS/HCS/SB 584 (2014).

COMMON SEWER DISTRICTS

Current law authorizes trustees for certain common sewer districts to receive reasonable compensation for their services. This act provides that trustees may receive an attendance fee not to exceed $100 for attending each regular or special meeting, but not more than two meetings per month, or four meetings per month for trustees in a county of the first classification. (Sections 204.300 and 204.610)

These provisions are identical to HB 697 (2023) and to provisions in HCS/SB 155 (2023).

PUBLIC WATER UTILITIES

This act provides that the Public Service Commission shall issue a decision on approval of an acquisition by a large water public utility of a small water utility within six months of the application submission. If the Commission does not issue a decision within six months, such application shall be automatically approved. This act further modifies the definition of "large water public utility". (Section 393.320 and 393.1506)

This provision is substantially similar to SB 567 (2023) and to provisions in SCS/HCS/HB 1152 (2023).

RENEWABLE ENERGY STANDARD

This act modifies provisions relating to the current renewable energy standard.

Under this act, energy that meets the criteria of the renewable energy portfolio requirements under this act and contracted for by an accelerated renewable buyer must do the following:

(1) Have all associated renewable energy certificates retired by the accelerated renewable buyer and the certificates shall not be used to meet the electric utility's portfolio requirements under in the act;

(2) Be excluded from the total electric utility's sales used to determine the portfolio requirements under the act;

(3) Be used to offset all or a portion of its electric load to determine compliance with the portfolio requirements under the act.

This act defines an "accelerated renewable buyer" as a customer of an electric utility, with an aggregate load of over 100 average megawatts, who enters into a contract to obtain renewable energy certificates from renewable energy sources or energy sources described in the act.

Under this act, the accelerated renewable buyer shall be exempt from any renewable energy standard compliance costs as established by the utility and approved by the Public Service Commission under the act.

Under this act, each electric utility shall certify, and verify as necessary, to the Commission that the accelerated renewable buyer has satisfied the exemption requirements under the act. The accelerated renewable buyer may also certify the exemption requirements to the Commission individually.

Provisions under the act apply to electric utilities with more than 250,000 but less than one million retail customers as of 2022. (Section 393.1030)

This provision is identical to SCS/SB 374 (2023) and HCS/HB 1293 (2023).

DISCOUNTED GAS RATES

This act creates provisions for gas corporation customers to be considered for a discounted gas rate.

Under the act, a new or an existing gas corporation account meeting the criteria under the act shall qualify for the following discounts:

(1) When the customer is a new customer and the new load is reasonably projected to be at least 270,000 CCF annually, the discount shall equal 25% and shall apply for four years; or

(2) When the customer is an existing customer and the new load is reasonably projected to be at least 135,000 CCF annually, the discount shall equal 25% and shall apply for four years.

To obtain one of the discounts under the act, the customer's load shall be incremental, net of any offsetting load reductions due to the termination of other accounts of the customer or an affiliate of the customer within twelve months prior to the commencement of service to the new load. The customer shall receive an economic development incentive from a governmental entity, as described in the act, in conjunction with the incremental load. The customer shall meet the criteria set forth in the electrical corporation's economic development rider tariff sheet, as approved by the Public Service Commission, that are not inconsistent with the act. The gas corporation, as defined in the act, shall verify the customer's consumption annually to determine continued qualification for the applicable discount.

In each general rate proceeding concluded after August 28, 2023, the difference in revenues with the discounts under the act and the revenues without such discounts shall not be imputed into the gas corporation's revenue requirement. Instead, such revenue requirement shall be set as described in the act. A gas corporation's authority to offer discounted rates shall terminate on the date that such natural gas corporation’s authority to make deferrals expires. (Section 393.1645)

This provision is substantially similar to SB 638 (2023) and HCS/HB 1143 (2023).

WATER VALVE INSPECTIONS

Current law requires all community water systems to create a hydrant inspection program that includes annual testing of every hydrant in the community water system. This changes such annual testing to scheduled testing. (Section 640.144)

This provision is identical to SB 629 (2023) and HB 891 (2023).

CONNECTIONS TO PUBLIC WATER SERVICES

This act provides that no political subdivision shall adopt or enforce an ordinance or other regulation that requires or has the effect of requiring the connection of a private single-family residence to public water or sewer services if such residence is already served by an existing private well or septic system. (Section 1)

JOSH NORBERG

HA #1, AS AMENDED - THIS AMENDMENT STRIKES SECTION 67.288 RELATING TO ELECTRIC VEHICLE CHARGING STATIONS, SECTION 67.2677 RELATING TO VIDEO SERVICE PROVIDERS, AND SECTION 1 RELATING TO CONNECTIONS TO PUBLIC WATER SERVICES; MODIFIES SECTION 137.077 RELATING TO THE ASSESSMENT OF SOLAR PROPERTY; MODIFIES SECTION 137.122 RELATING TO THE ASSESSMENT OF STATIONARY PROPERTY; MODIFIES SECTION 393.320 RELATING TO ACQUISITIONS OF SMALL WATER UTILITIES; MAKES TECHNICAL CHANGES IN MULTIPLE SECTIONS; AND ADDS SECTION 393.1700 RELATING TO THE CONTRACTING OF COUNSEL, FINANCIAL ADVISORS, OR OTHER CONSULTANTS BY THE PSC