Record ID: 3791
Authority: Division of Energy
Rule Number: 10 CSR 140-08.010
Rule Name: Certification of Renewable Energy and Renewable Energy Standard
Rule Action Type: Amendment
Status: In Final Development
Regulatory Impact Report: N/A

Rulemaking Calendar

Initiate the Rulemaking Process:
Actual: 4/18/2011 
Regulatory Impact Report 60 Day Comment Period Begins:
Expected:  
Actual:  
Proposed Rulemaking Filing with the Secretary of State:
Expected: 12/28/2011 
Actual: 2/29/2012 
Published:  
Citation:  
Public Hearings:
1st Expected:  
1st Actual:  
2nd Expected:  
2nd Actual:  
End of Public Comment Period:
Expected: 3/2/2012 
Actual: 5/2/2012 
Adoption by Agency:
Expected: 6/15/2012 
Actual:  
Rejected:  
Withdrawn:  
Legislative Action:
Expected:  
Let Pass:  
Suspended:  
Voided:  
Order of Rulemaking Filing with the Secretary of State:
Expected: 7/31/2012 
Actual: 6/15/2012 
Published: 7/31/2012 
Citation:  
Rulemaking in Effect:
Expected: 10/30/2012 
Actual:  
Emergency Rule Expires On:
Ends:   

Summary

Abstract Short: Incorporates the expanded definition of "eligible renewable energy resources" contained in SB 795 (2010), to include "from agricultural operations, thermal depolymerization or pyrolysis for converting waste material to energy."

Contact

Brenda Wilbers
Missouri Department of Natural Resources
Division of Energy
573-751-8509

Rulemaking Report

Missouri Department of Natural Resources

Rulemaking Report

Updated: August 9, 2011

Affected Rule: This is an amendment to 10 CSR 140-8.010(2), resulting from passage of SB 795, signed by the Governor July 9, 2010.

1. What is the purpose of this rulemaking?

This amendment is administrative in nature. It updates the department’s current rule to reflect the passage of SB 795, passed in 2010.

SB 795 modifies the definition of Renewable energy resources in Section 393.1025(5), RSMo to include “…methane from landfills, from agricultural operations, or from wastewater treatment, thermal depolymerization or pyrolysis for converting waste material to energy…” This rule amendment modifies the department’s rulemaking to incorporate the changes to the definition of Eligible Renewable Energy Resources in 10 CSR 140-8.010(2)(A). [Bold text indicates modifications pursuant to SB 795.]

2. Why is the rulemaking being proposed now?

The original rule emanating from the passage of Proposition C did not become final until January 30, 2011. That rule was filed with the Secretary of State (SOS) July 15, 2010. SOS rule making guidelines do not allow for the inclusion of new statutory language until that law actually becomes effective. In this case, SB 795 did not become effective until August 28, 2010. Therefore, the Division of Energy could not start the rule amendment process to implement SB 795 until January 31, 2011.

3. Will the rulemaking incorporate any document by reference, rather than state the language within the rulemaking?

No.

4. Does this rulemaking prescribe environmental standards, limits or conditions and is a Regulatory Impact Report required for this rulemaking?

No, a Regulatory Impact Report is not required as no environmental standard, limit or condition is being adopted.

5. What authority does DNR have to carry out this rulemaking?

Section 393.1025(5), RSMo.

6. What does the rulemaking require and how does it produce benefits?

This rule amendment incorporates the expanded types of renewable energy resources that can be used to meet the renewable energy standard requirements. Benefits are produced as the expanded eligible renewable resources are likely to be developed in Missouri and they provide additional flexibility for regulated utilities in meeting the requirements of the law.

7. Who is most likely affected by the rulemaking?

Any individual or entity that can produce electrical energy from the designated renewable resources listed in Section 393.1025(5), RSMo, and secure contracts to sell the electricity and/or the renewable energy credits (RECs) to Missouri’s regulated electric utilities.

8. What impact will the rulemaking have on small businesses? (A small business is defined by statute as a for-profit enterprise with fewer than 100 full or part-time employees.)

Potentially, family farms, confined animal feeding operations, and others, will be able to convert previously unused waste by-products of their operations into a renewable energy source that will generate clean energy. It can reduce environmental impacts by providing a market for agricultural waste that did not previously exist until the passage of SB 795. At this point in time DE is unable to determine the potential benefits for small farms.

9. What are the probable costs for the department or any other public agency in the implementation and enforcement of the rulemaking?

There could be additional applications to DNR for certification of eligible renewable resources pursuant to the modifications from SB 795 that allow additional renewable resources to qualify for RES compliance. No additional FTE were received to implement the RES after it passed and any more costs from this rule amendment will be absorbed by existing FTE as well.

10. What is the anticipated effect of the rulemaking on state revenue?

No anticipated effect on state revenue.

11. Who was/will be involved in developing the rulemaking?

Due to its non-controversial nature, no outside input was sought. DE will respond to any comments that might be filed when the rule amendment is filed. DE did not hold public meetings, etc., when the original RES rule was published. DE received 5 comments on the original RES rule. It is anticipated that even fewer comments will be received for this proposed amendment.

12. How has/will the development of the rulemaking been/be shared with interested parties and the public at large?

The rulemaking will be posted in the Rules in Development section of the department’s website.

There are no plans to share the amendment with interested parties.

13. Who may I contact to either ask questions or provide input on this rulemaking?

Contact information: Brenda Wilbers or Charles Pappas

MO Department of Natural Resources – Division of Energy

P.O. Box 176

Jefferson City, MO 65102

Charles.pappas@dnr.mo.gov

14. What is the expected calendar for this rulemaking, particularly the dates for the comment period and public hearing?

The first orange folder was initiated for this rule amendment in early 2011. While input from DEQ and DNR DO staff, as well as from Dept. of Agriculture and MDC, was gathered on how to define various provisions of SB 795 new language, the process was delayed. Now that input has been received and a draft rule amendment has been developed, we are initiating the orange folder internal review process again. We anticipate that the proposed amendment may be filed with SOS and JCAR on or around October 1, 2011. The Division of Energy does not plan to hold a public hearing on this rule amendment.