February 13, 2025 - Associated Industries of Missouri (AIM) legislation that would provide funding for a critical air pollution control program within the Missouri Department of Natural Resources (MDNR) was approved by the Senate Agriculture, Food Production and Outdoor Resources Committee this week.
Associated Industries of Missouri originally proposed the same legislation in the 2024 Legislative Session. The bill allocates a portion of currently collected sales and use taxes from utility companies to a special dedicated fund that may be used solely to provide funding for the Air Pollution Control Program. The bill also prevents the "sweeping" of such funds into general revenue - a practice that defeats the purpose of having a dedicated fund. Due to the near total blockage of legislation in the Missouri Senate in 2024, the bill last year only received a legislative hearing and did not advance. AIM asked Sen. Jason Bean (R-25) to refile the legislation in the current 2025 Legislative Session. The bill is SB 120.
"The Air Pollution Control Program's current funding is doomed to always be insufficient to support the program," said McCarty. "As companies improve the quality of their air emissions, the amount they pay in fees is reduced. Because the cost for services provided by the MDNR increases, and revenues supporting the program are reduced, the program will always project a shortfall. Fee increases may help temporarily, but will constantly need to be increased to keep pace with inflation. This financially punishes companies that are successful in reducing pollution. The opposite should be true. Our plan would allocate a portion of taxes already paid by utility company customers, including facilities with permits, to support air pollution enforcement and regulation compliance assistance. Because the amount would be based on sales and use taxes, the amount would naturally increase with inflation without costing Missouri citizens and businesses any additional money."
The AIM plan would provide around $3.2 million in additional revenue for the air pollution control program in the first full year following implementation. If the legislation were approved, permit fee increases approved by the Air Conservation Commission would no longer be necessary.
The legislation is supported by AIM, the Missouri Forest Products Association, Infra, the American Council of Engineering Companies (ACEC-MO), the Missouri Agribusiness Association (MO-AG), the Mining Industry Council, the Missouri Concrete Association and the Missouri Department of Natural Resources. There was no opposition expressed in the hearing on the bill.
"If we are successful in passing the legislation and Governor Kehoe signs it into law, the MDNR will withdraw the pending fee increases previously approved by the Commission," said McCarty.
McCarty said the sales and use tax funding proposal is a top priority for AIM in the 2025 Legislative Session.
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