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NewsMay 19, 2017

Missouri Gov. Eric Greitens has called for a special session in an effort to win passage of a bill that could generate hundreds of jobs for the Bootheel. Legislation passed the House but died in the Senate in the waning hours of the 2017 session May 12...

Noranda Aluminum in New Madrid, Missouri.
Noranda Aluminum in New Madrid, Missouri.File photo

Missouri Gov. Eric Greitens has called for a special session in an effort to win passage of a bill that could generate hundreds of jobs for the Bootheel.

Legislation passed the House but died in the Senate in the waning hours of the 2017 session May 12.

The measure, backed by Rep. Don Rone, R-Portageville, would have allowed Ameren Missouri to charge lower electric rates for large industrial customers. Rone said it would be key to reopening the former Noranda aluminum smelter and pave the way for establishment of a steel mill in New Madrid County.

Sens. Doug Libla, R-Poplar Bluff, and Gary Romine, R-Farmington, blocked the bill, arguing it could lead to higher electric rates for residential and business customers.

Greitens announced Thursday he would convene a special session.

In an emailed statement, Greitens explained his action.

"We are fighting to bring more jobs to the people of Missouri. Some career politicians failed to do their jobs and then went home. That's wrong. We're canceling their summer vacations and calling a special session to get this done," he said.

The special session will begin at 4 p.m. Monday, little more than a week after lawmakers adjourned the regular legislative session.

Area lawmakers including Reps. Kathy Swan, R-Cape Girardeau, and Donna Lichtenegger, R-Jackson, and state Sen. Wayne Wallingford, R-Cape Girardeau, voiced support for the measure and expressed disappointment over the Senate's failure to pass it.

Lichtenegger welcomed the governor's action and expressed hope the measure will pass.

She said the demise of the bill in the Senate was "the saddest thing."

She added, "This is all about money and personalities."

In a last-ditch effort last week, Rone called on lawmakers to approve an amendment added to a different bill.

The amendment would have given the Public Service Commission the ability to negotiate a lower electric rate for the Bootheel development.

The measure overwhelmingly passed the House but failed to get through the Senate.

Rone said on the House floor senators were "heartless" and "selfish" to block such a measure.

Lichtenegger said earlier this week it was "irresponsible" for the Senate not to approve a measure that would create jobs in an economically depressed area of the state.

Swan said she hopes lawmakers approve the measure in the special session. She added the measure could provide "500 jobs in an area that desperately needs some help."

"It is imperative to take action to help the Bootheel," she said.

The Noranda smelter closed last year, resulting in the loss of more than 900 jobs.

A Switzerland-based company subsequently purchased the property with a goal to reopen part of the smelter. But Rone and other lawmakers said the plant won't reopen without lower electric rates.

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Swan said lawmakers will have to reintroduce the legislation during the special session and hold hearings.

Wallingford said the governor has asked him to shepherd the Senate version of the bill in the special session.

Wallingford said his office staff will draft the bill with a goal of having the exact same bill considered in the House.

According to the bill-making process, the Legislature won't be in a position to send the measure to Greitens until May 26, assuming the Senate approves it, Wallingford said.

House Speaker Todd Richardson, R-Poplar Bluff, said in a news release the issue had "overwhelming support" in the House, whose members "realized the significant economic boost these jobs can provide for Southeast Missouri and our state as a whole."

He added lawmakers will "work quickly and efficiently" to keep taxpayer costs to a minimum.

When meeting in a special session, lawmakers are allowed to discuss only topics specifically mentioned in the governor's proclamation for the special session.

Each full week lawmakers are in special session costs about $28,000 in the Senate and between $50,000 and $100,000 in the House, depending on how many lawmakers are there each day, according to The Associated Press.

The costs stem primarily from the $113.60 daily allotment for lawmakers and travel reimbursements of 37 cents per mile.

Wallingford said it was "a shame" the legislation failed to pass in the regular session because of the opposition of "a couple of senators."

Wallingford said the opening of the shuttered smelter and a new steel mill would offer "an opportunity to bring life back to the community" with jobs that would pay $55,000 to $125,000.

Libla defended his action in an emailed news release Thursday.

"I am, and always have been in favor of a 'special economic development electric rate' for reopening of the smelter and/or a new steel mill in New Madrid," he wrote.

He said he tried two years ago to secure an electric-rate discount for the Noranda plant. Libla said Ameren and other senators opposed the effort.

Libla said the Rone amendment would have given the Public Service Commission the ability to use "any alternative rate-making mechanism, regardless if it is allowed under current law."

Libla wrote, "This could lead to unnecessary rate increases and absolutely has nothing to do with reopening the smelter or a steel mill in New Madrid. All it would do is benefit the utility company."

Libla said he continues to oppose "unfair" electric utility legislation that would severely diminish the Commission's authority in defending all electric ratepayers.

The senator said he wants to "safeguard" Missourians from being "overcharged by utility companies."

"We cannot now allow monopoly electric companies to control legislation that would put our remaining job providers out of business with unreasonable electric charges," Libla said.

Lawmakers last were called into special session in December 2013 by former Gov. Jay Nixon to consider tax breaks targeted for airplane-maker Boeing Co.

mbliss@semissourian.com

(573) 388-3641

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