Missouri Bill Proposes Immediate Moratorium on Solar Projects

Missouri lawmakers are advancing Senate Bill 849 (SB 849)—sponsored by the highest-ranking Senate leader, Senate President Pro Tem Sen. Cindy O’Laughlin—which would impose an immediate, statewide moratorium on both new and ongoing commercial‑scale solar projects. The bill cleared committee on February 10, 2026, with a “Do Pass” vote and contains an emergency clause that could make it effective immediately upon the Governor’s signature. This development presents significant implications for utility companies, financial institutions financing construction, and entities investing in solar development across Missouri.

Below is a summary of the bill, timing considerations, and the top risks we recommend utilities, lenders, and investors discuss promptly with developers regarding solar projects in the state.

Legislative Status and Timing

• Committee Approval: SB 849 passed the Senate Commerce, Consumer Protection, Energy & the Environment Committee on Feb. 10, 2026.
• Emergency Clause: The bill contains an emergency provision enabling immediate effectiveness upon gubernatorial signature, allowing the moratorium to take effect the moment it becomes law.
• Potential Governor Support: Governor Mike Kehoe, who is a large landowner and cattle rancher in the state, publicly stated his support on Jan. 13, 2026, endorsing Sen. O’Laughlin’s efforts to “put basic guardrails” on industrial solar projects.
• Sen. O’Laughlin’s Influence: As the bill’s sponsor, Sen. O’Laughlin is backed by a strong agricultural bloc, an important factor given agriculture‑driven skepticism toward large‑scale solar development.

Given this level of political alignment, the bill is expected to remain a high‑momentum item. The situation may shift rapidly—potentially several times per day—as negotiations, amendments, and competing interests emerge.

Summary of the Bill

SB 849 would:

• Impose an immediate moratorium on the construction of all new and existing solar projects statewide beginning on the act’s effective date.
• Suspend construction of any project not fully completed at the time the act becomes law.
• Direct the Missouri Department of Natural Resources (DNR) to develop environmental and operational rules governing future solar projects; the moratorium would extend beyond December 31, 2027, if these rules are not completed.
• Restrict state agencies from issuing permits for solar projects during the moratorium.

Top 5 Risks for Utilities, Lenders, and Solar Investors

1. Immediate Suspension of Projects Under Construction. The emergency clause would halt any project still under construction, even if substantially complete. This creates completion risk for lenders and investors and jeopardizes Commercial Operation Date timelines for utilities relying on contracted capacity.
2. Potential Inability to Bring Near‑Complete Projects Online. Even projects close to completion face risk that future amendments could explicitly restrict grid interconnection or commissioning. Ongoing changes to bill language could tighten restrictions as the legislative process continues.
3. Prolonged Moratorium if Rulemaking Is Delayed. If the Missouri DNR fails to finalize new rules by December 31, 2027, the moratorium remains indefinitely. This uncertainty creates multi‑year exposure for investors, tax equity participants, and utilities planning long‑term resource procurement.
4. High Likelihood of Litigation and Potential TROs. As seen nationally in disputes over high‑impact infrastructure and renewable projects, litigants frequently seek temporary restraining orders to halt project activity. The broad language of the bill and its retrospective effect could trigger immediate legal challenges, opening the door to injunction‑driven delays.
5. Increased Political Volatility and Potential for Rapid Amendments. Given active engagement from agriculture‑aligned legislators and the Governor’s public endorsement, the bill is anticipated to evolve quickly. Supporters and opponents are already vocal, meaning amendments could appear suddenly—affecting siting, permitting, interconnection, or grandfathering provisions.

Recommendations for Clients

We strongly recommend:

• Engaging developers immediately to confirm their awareness of SB 849 and understand their participation in stakeholder discussions.
• Evaluating exposure under financing documents, PPAs, and tax equity structures to determine the effect of an immediate construction halt.
• Assessing litigation contingency plans, including strategies for navigating or responding to potential TROs.
• Monitoring the bill daily, given the speed of activity and the potential for last‑minute amendments.

We will continue to follow the bill closely and provide updates as new developments occur.