SB 879: Electric Utility, Solar Permitting & Taxation Package
Sponsor: Travis Fitzwater
OPPOSE
Locks in tax breaks for utility-scale solar.
SB 879 is an "electric utilities" package that does two things simultaneously: it tightens local control around large solar projects (via county permits, setbacks, and decommissioning bonds) but also locks in a very favorable, special tax regime for utility-scale solar. It establishes a fixed tax formula of $6,000 per MW and preserves access to tax abatements. Act for Missouri opposes the bill because it structurally codifies tax breaks and concessions for green energy projects.
What Does This Bill Do?
- Solar Farm Permitting & Local Control: Creates a comprehensive county permitting framework. Before a solar farm can get PSC approval, it must secure a county permit, which requires setbacks (1,000 ft from homes/churches), noise limits (45 dB), and a decommissioning plan backed by a bond worth 125% of estimated costs.
- Special Solar Tax Regime: Establishes a new statewide tax formula for solar projects, setting liability at a fixed $6,000 per megawatt of capacity (inflation-adjusted). Crucially, it allows projects to stack Enhanced Enterprise Zone (EEZ) abatements on top of this fixed rate.
- Eminent Domain & Cropland Limits: Prohibits the use of eminent domain for the solar generation plants themselves (though not the lines). Sets a county-wide cap on solar development at 2% of cropland, though this cap can be raised by a simple county commission order.
Constitutional or Critical Context
This bill presents a "sweetener" trap. It offers necessary property protections—like setbacks and decommissioning bonds—but couples them with a permanent, state-mandated tax shelter for the solar industry. By creating a specific tax formula ($6,000/MW) and formally integrating wind/solar into the utility tax code, it treats these intermittent energy sources as a protected class of infrastructure, effectively subsidizing their expansion across Missouri farmland.
Red Flags & Recommended Amendments
Statutory Tax Shelters
The bill sets a statutory tax cap of $6,000/MW for solar equipment, removing it from normal market assessment. It effectively picks winners and losers by creating a unique tax lane for solar developers while allowing them to "double dip" with other abatements.
Eminent Domain Loophole
While the bill stops developers from condemning land for the solar panels themselves, it explicitly retains eminent domain authority for the "collection lines," "transmission lines," and "substations" needed to connect those panels to the grid.
Act for Missouri Recommendation:
Act for Missouri OPPOSES SB 879. While we support the local control and property rights pieces in isolation, we cannot support a bill that hard-codes a favorable tax formula and supporting structure for solar projects. The structural subsidies outweigh the benefits of the zoning restrictions.