Summary of HB 2998 (2026) – Missouri
Jurisdiction: Missouri | Session: 2026 | Title: Modifies provisions relating to rural economic development
intent and scope:
- This bill bundles provisions affecting transportation planning, river/navigation infrastructure, electric energy policy, solar energy regulation, and the creation of a new rural-focused government office. Its overall aim is to advance “rural economic development” by directing STIP priorities, studying Mississippi River improvements, regulating coal-fired generation and solar projects, and establishing a dedicated Rural Development Office within the Department of Economic Development (DED). The measure includes a significant associated one-time study cost and ongoing staffing costs.
Key provisions and changes
1) Statewide Transportation Improvement Program (STIP) prioritization
- Section 226.035: Requires MoDOT, when preparing the STIP, to:
- Prioritize projects involving rural roads and highways with high fatality rates.
- Apportion funding to rural projects at a level corresponding to the rural share of Missouri’s population.
- Practical effect: Adds a population-based funding allocation and a safety-focused prioritization criterion for rural infrastructure projects.
2) Upper Mississippi River Basin study
- Section 226.1205:
- MoDOT must conduct a feasibility study of potential improvements to the upper Mississippi River basin, evaluating:
- 12-month navigation season
- Upgrading existing locks to 1,200-foot locks
- Adding hydropower on existing locks and dams
- Report findings to the General Assembly no later than December 1, 2026.
- Fiscal note indicates up to $3 million cost and a multi-year timeline (minimum three years).
3) Electric sector restrictions (coal-fired plants)
- Section 393.407:
- Prohibits an electrical corporation, independently owned utility, municipally owned utility, or electric cooperative from closing or ceasing operation of any coal-fired power plant for five years after the effective date of the section.
4) Solar energy requirements and county land-use cap
- Sections 393.1120 and 393.1122:
- Solar energy projects must meet:
- At least 90% of real and tangible personal property used to generate electricity from solar must be sourced from the United States.
- At least 90% of labor for solar installation must be performed by entities located in Missouri.
- County cropland cap: The total real property associated with all solar projects in any single county may not exceed 2% of the county’s cropland, based on the latest USDA Census.
- Local adjustment: County commissions may increase the cap by order, ordinance, regulation, or resident vote.
- Standing to sue: Any county resident may sue to enforce the cropland cap if they believe the cap has been exceeded.
- Fiscal note: Agencies indicate no direct fiscal impact, but potential regulatory and enforcement implications exist.
5) Rural Development Office
- Section 620.070:
- Establishes the “Rural Development Office” within the Department of Economic Development (DED).
- Purposes and duties include:
- Build partnerships to coordinate federal, state, and other programs affecting rural areas.
- Serve as liaison to ensure programs benefiting rural Missourians are utilized.
- Advocate for rural communities.
- Promote community-based problem-solving strategies.
- Advise the governor, agencies, and organizations on rural issues.
- Serve as a resource for private/nonprofit entities on rural issues and available assistance.
- Conduct surveys of rural needs in housing, child care and early childhood education, broadband infrastructure, health care, workforce development, and community development.
- DED to provide administrative support and staff as needed.
- Fiscal note: Requires 1 FTE in DED; no funding mechanism is specified in the bill.
Financial and fiscal notes (highlights)
- General Revenue impact:
- Net effect across FY 2027–FY 2029: negative General Revenue (approximately -$3.17 million in FY 2027, then -$189k in FY 2028, -$192.5k in FY 2029).
- Major components: $3 million one-time MoDOT Missouri Basin feasibility study; ongoing costs for 1 FTE in DED and related expenses.
- FTE:
- 1 additional FTE in General Revenue beginning FY 2027 and continuing.
- Other state funds / federal funds: No net impact anticipated per fiscal note.
- Local government / Small business: No direct local or small-business fiscal impacts identified.
Potential impacts and considerations
- Transportation and rural infrastructure:
- Shifts in STIP prioritization may affect project selection, potentially favoring rural safety improvements and population-based funding shares.
- Upper Mississippi River Basin study could influence future navigation policy, river operations, and energy considerations if hydropower and lock upgrades are pursued.
- Energy policy and development:
- Coal plant operation restrictions (five-year prohibition) could affect grid planning, reliability, and long-term utility costs.
- Solar industry labor and domestic component requirements, combined with cropland caps, may affect project siting, development timelines, and litigation risk due to standing provisions.
- The interplay between caps and agrivoltaics (farming with solar) is uncertain and could become a policy debate point.
- Rural Development Office:
- Establishes a coordination and advocacy body, but without explicit funding or grant authority, its impact depends on subsequent appropriations and programmatic support.
Timeline and procedural notes
- Introduced: January 15, 2026
- Referred: Agriculture (H) – March 9, 2026
- Public hearing: April 14, 2026
- Reported/Action: As of the provided material, evidence of a completed public hearing; no final floor action noted.
Bottom line
HB 2998 seeks to advance rural Missouri by shaping transportation priorities, commissioning a major Mississippi River basin study, imposing energy-sector constraints and domestic-content rules for solar, and creating a new Rural Development Office within DED. It carries notable fiscal implications, including a significant one-time study cost and ongoing staffing costs, and introduces new regulatory and litigation dynamics around solar development and coal-fired generation.
