Bill
HB 2478
HB 2478 tightens solar siting with county permits, sets 1,000 ft setbacks, imposes decommissioning bonds, revamps solar taxes, and bans eminent domain for wind/solar projects.
Purpose and overall intent
- HB 2478 reorganizes and expands Missouri’s regulatory framework for electric utilities, with a strong emphasis on solar and wind development, local permitting, taxation, decommissioning, and condemnation powers.
- The bill adds local control at the county level for siting solar farms, tightens siting setbacks and noise limits, redefines how solar and other alternative energy projects are taxed, and restricts eminent domain for wind/solar facilities. It also directs the Public Service Commission (PSC) to adopt certain transmission-line standards on agricultural land and updates renewable energy policy definitions and requirements.
Key provisions and changes
1) Permitting and local control for solar farms (Section 67.5350)
- Before PSC certificates of public convenience or necessity (CPCN), solar farm developers must file applications with the county commission in each affected county.
- Counties must adopt an ordinance granting permits for solar farms in unincorporated areas, with specific siting rules:
- Minimum distances: at least 1,000 feet from churches, schools, cities, residences; 300 feet from other property lines; 200–250 feet from public roads (depending on boundary type).
- Noise cap: permits must limit noise to not exceed 45 decibels at any property line.
- Timeline: county commissions must hold a public meeting within 90 days of receipt, provide 14 days’ notice, and the applicant must provide detailed information (capacity, safety measures, area, owner contact, public comment process, etc.). The county must issue, modify (narrow boundaries), or deny a permit within 90 days after the meeting.
- If a permit is issued, the applicant must obtain liability insurance. PSC may not issue CPCN to any project that has not received county permits in all counties involved.
- Decommissioning plan required, including removal within 12 months after cessation, with bond equal to 125% of estimated decommissioning costs; plan updated every 5 years.
2) Taxation and assessment of solar-related property (Sections 137.100, 137.124, 153.030, 153.034)
- Repeals broad solar tax exemption; instead, solar energy systems exclusive to a single property may be tax-exempt at the assessor’s discretion.
- Starting Jan 1, 2027:
- Real property and associated non-land assets used directly for solar generation: tax liability set at $6,000 per megawatt nameplate capacity, adjusted annually for inflation.
- Land associated with solar projects will be classified as commercial property.
- Projects may still pursue enhanced enterprise zones or tax abatements.
- Establishes that solar/wind project property and related equipment used to integrate renewables into existing grids will be taxed by local authorities under standard rules.
3) Transmission line regulation on agricultural land (Section 393.172)
- PSC must adopt rules by March 31, 2027, establishing standards for construction activities on privately owned agricultural land when building transmission lines, including landowner communication, design/place of structures, erosion controls, and restoration.
4) Renewable energy resources definition and portfolio standards (Sections 393.1025, 393.1030)
- Replaces “renewable energy resources” with “alternative energy resources” (explicitly includes nuclear).
- PSC, with department input, must prescribe a portfolio standard increasing targets through 2021 and beyond, with required solar minimums and flexibility to meet targets via RECs or accelerated renewable buyers (and related penalties and reporting).
5) Setbacks and eminent domain (Section 393.1120; Section 523.010)
- Solar projects built after Jan 1, 2027 face setback requirements (1,000 feet from nearest property boundary to nearest dwelling, church, or school); exemptions for projects operating since 2026.
- Prohibits eminent domain by electrical corporations for constructing wind or solar generation facilities. Allows condemnation only for ancillary purposes (lines, substations, right-of-ways) under narrowly defined conditions.
Impact and who is affected
- Solar developers: new local permitting requirements, boundaries, insurance, and decommissioning bonds increase upfront regulatory burdens and costs.
- Counties and local governments: enhanced authority to regulate siting, noise, and setbacks; new decommissioning and insurance expectations.
- Property owners and residents: potential changes in taxation of solar properties; clearer protections via setback and permitting regimes; standing to sue to enforce cropland caps.
- Utilities and PSC: updated rules for transmission siting on agricultural land; revised renewable/alternative energy resource definitions and portfolio compliance mechanisms.
Procedural/timeline notes
- Emergency clause added for the permit provision, effective upon passage for the immediate preservation of public health, welfare, peace, and safety.
- Several sections set future effective dates (notably 2027 for certain tax changes and setbacks, and 2027–2028 for portfolio adjustments).
Compiled from official sources — confirm details with the bill’s official record.
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