MO HB2311

Establishes state policy to facilitate combined heat and power (CHP) systems across commercial, institutional, industrial, utility, and residential sectors due to efficiency, pollution reduction, and grid reliability benefits.

Requires the Missouri Public Service Commission to review and modify rules for cogeneration and distributed generation to ensure CHP systems comply with provisions establishing nondiscriminatory interconnection agreements, procedures, and fees with uniform timelines.

Mandates electrical corporations file tariffs within 90 days paying CHP systems at least the wholesale rate for electricity delivered to the grid, using time-of-delivery rates that encourage peak demand generation and allow congestion pricing.

Limits CHP system eligibility to facilities with nameplate capacity of 50 megawatts or less that generate at least 20 percent electricity and 20 percent useful thermal energy unless fueled entirely by waste heat.

Requires rural electric cooperatives and municipally owned utilities to provide a market for purchasing electricity from CHP systems at just and reasonable rates within one year of August 28, 2010, and applies emission standards in pounds per megawatt hour for both electrical and thermal energy under air permit regulations.