The Division of Energy assists in finding funding mechanisms for energy improvements, educates Missourians and promotes efficient use of energy resources for economic growth, a healthy environment, and a better Missouri for future generations.
The division supports efforts to bring innovative energy solutions to market; coordinates with private and public interests on energy initiatives; provides technical and financial assistance for energy efficiency and renewable energy improvements; acts as a state resource by housing energy data and research; works with energy suppliers and state decision-makers to ensure adequate energy supplies; supports market development and demonstration projects promoting clean energy sources and technologies; and reviews and promotes policies that support energy efficiency.
The division also gathers input from stakeholders and the public to develop and update the State Energy Plan.
The division connects Missouri businesses to energy efficiency by exploring opportunities to match business growth, retention and expansion with energy efficiency, which enhances business profitability and competitiveness. The division bridges the gap to bring public-private partnerships and financing options together and leverage existing program and funding streams to incent economic activity. The division provides financial assistance for energy efficiency projects and administers the Weatherization Assistance Program, which serves Missouri citizens through 18 local agencies. The weatherization program has provided cost effective, energy-efficient home improvements to 193,473 homes since the inception of the program in 1977. Separately, the department’s energy loan fund helps schools, colleges and universities, local governments, hospitals and public airports, as well as water and wastewater treatment facilities finance energy-efficiency projects so money saved can be used for other needs related to the mission of the entity.
Staff consults with the Office of Administration and other state agencies to integrate energy efficiency into state buildings and alternative fuel vehicles in compliance with state laws. The division also partners with communities and businesses to plan for resiliency and economic growth through improved access to the energy infrastructure of the future. Staff assists the Missouri Department of Transportation with the Mid-Missouri Rideshare Program and connects Missouri commuters to the carpooling program nearest them.
The department works with federal and local governments to address a number of energy-related areas based on state and federal laws and regulations. At the state level, section 620.035 RSMo describes the department’s general duties, including assessing the impacts of national energy policies, working with stakeholders on energy research and development, management, conservation and distribution, monitoring energy-related data, analyzing the potential and making recommendations for increased use of diverse energy resources, entering into cooperative agreements, and developing and promoting state energy conservation programs. Under this statute, the department also participates in energy emergency supply planning and response.
Under section 640.160 RSMo, the department may also carry out certain duties using money appropriated by the General Assembly or received from gifts, bequests, donations, or from the federal government.
Through the U.S. Department of Energy’s State Energy Program and Low-Income Weatherization Assistance Program, the department receives funding for energy related activities which are subject to the programs’ federal requirements at 10 CFR Part 420 and 10 CFR Part 440, respectively.
The department’s Energy Loan Program, which is governed by the provisions of sections 640.651—640.686 RSMo, provides low-interest loan financing to eligible recipients for energy-saving investments through a competitive application process. Eligible recipients may include public schools (K-12), public and private higher education institutions, public and private not-for-profit hospitals, local governments (including hospital districts, sewer districts, water supply districts, sub-districts of a zoological park, and museum districts), and publicly-owned airport facilities (municipal, county, regional, and international). Loan cycles and the time for submission of applications are announced periodically in the Missouri Register. The loans must be paid back from energy cost savings with terms of loan repayment of 10 years or less.
Sections 8.800—8.851 RSMo relate to energy efficiency standards and energy analysis requirements for state-owned and operated buildings. These sections, which include provisions carried out by the department, require a minimum efficiency standard, establish a voluntary interagency work group to implement the efficiency standard, and require dissemination of energy efficiency practices information.
Sections 414.400–414.417 RSMo establish the requirements for alternative fuel vehicle procurement and the use of alternative fuels in the state fleet. These sections also establish the requirements of the annual state fleet report, which the department publishes.
The Renewable Energy Standard (sections 393.1020—393.1030 RSMo) requires investor-owned electric utilities to obtain renewable energy credits (RECs) equivalent to 15 percent of their retail sales by 2021, with two percent of this requirement to be met by solar-RECs. The department certifies resources that are eligible for use in compliance with the statute based on technologies that are specified in the act or subsequently authorized by rule (10 CSR 140-8), in addition to assuring that no undue adverse environmental impacts to air, land, and water occur because of such resources. The department is also responsible for the use of any non-compliance penalties assessed under the Renewable Energy Standard.
For customer generators with distributed generation systems of less than 100 kW that are powered by renewables, the Net Metering and Easy Connection Act (section 386.890 RSMo) provides that an electric utility will interconnect such distributed generation with its systems and offset the each customers’ consumption on a one-for-one basis with the customers’ generated energy. Energy generated in excess of usage in a particular month may be credited back to the customer at a rate at least equal to the utility’s avoided fuel cost. Eligible resource types are defined in the statute, and the department may certify certain other resources as eligible.
Under section 640.153 RSMo, the department certifies qualified home energy auditors, may establish requirements to maintain certification, and provides successful applicants with written notices. These certified entities may then conduct qualified home energy audits in order to provide energy efficiency recommendations that will reduce the energy use or the utility costs, or both, of a residential or commercial building.
Sections 414.500—414.590 RSMo establish the Missouri Propane Education and Research Council and provides guidelines for its function. The Director of the Division of Energy is given authority to conduct investigations to determine whether a person has engaged or is engaging in any acts or practices that constitute a violation of any provision of these sections. The Council markets and educates the public regarding propane products.
All confidential energy information provided to the department is treated as such, as required by section 640.155 RSMo.
The “Show Me Green Sales Tax Holiday” (section 144.526 RSMo), which occurs from April 19-25 every year. Retail sales of new Energy Star ®-certified appliances (clothes washers and dryers, water heaters, trash compactors, dishwashers, conventional ovens, ranges, stoves, air conditioners, furnaces, refrigerators, and freezers) are exempted from up to $1,500 of sales tax per appliance. A political subdivision may allow a sales tax holiday under this section by ordinance and must provide notification of doing so to the Department of Revenue.
Provisions that provide for a solar property tax exemption (section 137.100 RSMo) and establish a property right for solar energy (section 442.012 RSMo).
The Missouri Energy Efficiency Investment Act (section 393.1075 RSMo), creates a framework for investor-owned electric utilities to offer demand-side programs (e.g., energy efficiency, demand response, interruptible or curtailable load) while addressing the “throughput disincentive” associated with lost sales and an “earnings opportunity.”
Section 393.1040 RSMo, establishes a state policy, “… to encourage electrical corporations to develop and administer energy efficiency initiatives that reduce the annual growth in energy consumption and the need to build additional electric generation capacity.”
Property Assessed Clean Energy (PACE) financing laws (sections 67.2800—67.2840 RSMo), enable clean energy development boards to establish PACE programs for property owners to finance energy efficiency or renewable energy improvements through annual special assessments.
- Chapter 2 – Energy Set-Aside Fund – through the fund established under sections 640.651 through 640.686, RSMo, the Energy Loan Program provides low-interest loans for cost-saving, energy-related improvements in public schools (K-12), public and private higher education institutions, public and private not-for-profit hospitals, and local governments (including hospital districts, sewer districts, water supply districts, sub-districts of a zoological park and museum districts, and publicly owned municipal, county, regional and international airport facilities). Loans are repaid through cost savings from the energy-related improvements. Recipients of loan financing are determined on a competitive basis through applications received during open loan cycles. An energy-saving loan for schools and local governments is not defined as debt and therefore does not count against debt limits or require a public vote or bond issuance. Visit the department’s Energy Loans page for information on open cycles and examples of eligible measures.
- Chapter 3 – Definitions and General Rules – this rule was rescinded Feb. 28, 1999.
- Chapter 4 – Wood Energy Credit – subject to appropriations, the Wood Energy Tax Credit created by sections 135.300 through 135.313, RSMo allows individuals or businesses processing Missouri forestry industry residues into fuels a state income tax credit of $5 per ton of processed material (e.g., wood pellets). A multiplier of four applies to charcoal, based on the amount of Missouri forest industry residue required to produce one ton of charcoal. Any amount of credit exceeding the tax due by a company in the year of production may be carried over to a subsequent taxable year, not to exceed four years. A credit earned under this program may also be transferred to third parties for use within this five-year period. To be considered an eligible fuel, forestry industry residues must have undergone some thermal, chemical or mechanical processing sufficient to alter the residues into a fuel product.
- Chapter 5 – Industrial Loan Program – this rule was rescinded Nov. 30, 2013.
- Chapter 6 – Missouri Propane Education and Research Program – sections 414.500 through 414.590, RSMo created the Missouri Propane Education and Research Council, which develops programs of research, development, education, and marketing in coordination with industry trade associations. The department’s Division of Energy reviews the council’s annual budget.
- Chapter 7 – State Building Minimum Energy Efficiency Standards – under section 8.812, RSMo, the Department of Natural Resources is charged with establishing a minimum energy efficiency standard for construction of a state building over five thousand square feet, substantial renovation of a state building over five thousand square feet when major energy systems are involved or a building over five thousand square feet which the state or state agency considers for acquisition or lease. The standard must be at least as stringent as the latest version of the International Energy Conservation Code. Unless exempted by the Office of Administration, the construction, renovation, acquisition or lease of any building over 5,000 square feet by the state must meet applicable standards of this provision. This provision of statute is carried out by the department’s Division of Energy.
- Chapter 8 – Certification of Renewable Energy and Renewable Energy Standard Compliance Account – the Missouri Renewable Energy Standard (RES) at sections 393.1020 through 393.1030, RSMo requires investor-owned utilities to generate or purchase electricity generated from qualified renewable energy resources. Compliance may be demonstrated by purchasing Renewable Energy Credits (RECs). The department’s Division of Energy certifies renewable energy facilities as eligible for use in compliance with the RES, evaluates the environmental impacts of these facilities, and can also certify other sources of energy not provided for in the RES (excluding nuclear) that become available after Nov. 4, 2008. Other aspects of compliance with the RES are addressed by the Missouri Public Service Commission and its contracted REC tracking entity.
For more information about water or other federal and state environmental laws and regulations, visit Laws, Rules and Regulations.