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S.B. 275

This document includes Senate Committee Amendments incorporated into the bill on Thu, Mar 7, 2013 at 8:42 AM by cmillar. --> This document includes Senate 2nd and 3rd Reading Floor Amendments incorporated into the bill on Mon, Mar 11, 2013 at 4:51 PM by lpoole. --> This document includes Senate 2nd and 3rd Reading Floor Amendments incorporated into the bill on Mon, Mar 11, 2013 at 5:06 PM by lpoole. --> This document includes House Floor Amendments incorporated into the bill on Wed, Mar 13, 2013 at 9:53 PM by jeyring. -->              1     

ENERGY AMENDMENTS

             2     
2013 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: J. Stuart Adams

             5     
House Sponsor: Jack R. Draxler

             6     

             7      LONG TITLE
             8      General Description:
             9          This bill enacts provisions relating to facilitating the conversion to alternative fuel
             10      vehicles and the provision of facilities for alternative fuel vehicles.
             11      Highlighted Provisions:
             12          This bill:
             13          .    establishes the composition of a governing body of an interlocal entity created to
             14      facilitate conversion to alternative fuel vehicles or to facilitate the construction,
             15      operation, and maintenance of facilities for alternative fuel vehicles;
             16          .    directs the Public Service Commission to initiate and conduct proceedings to
             17      explore options and opportunities for advancing and promoting measures designed
             18      to result in cleaner air in the state; and
             19          .    provides for a cost recovery mechanism for a gas corporation that pays for natural
             20      gas fueling stations and related facilities.
             21      Money Appropriated in this Bill:
             22          None
             23      Other Special Clauses:
             24          This bill provides an immediate effective date.
             25      Utah Code Sections Affected:
             26      ENACTS:
             27          11-13-224, Utah Code Annotated 1953



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House Floor Amendments 3-13-2013 je/rhr
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Senate Committee Amendments 3-7-2013 cm/rhr
             28          54-1-13, Utah Code Annotated 1953
             29          54-4-13.4, Utah Code Annotated 1953
             30     

             31      Be it enacted by the Legislature of the state of Utah:
             32          Section 1. Section 11-13-224 is enacted to read:
             33          11-13-224. Governing body requirements for Utah interlocal entity for alternative
             34      fuel vehicles and facilities -- Contributing toward funding for facilities.
             35          (1) As used in this section, "commission" means the Public Service Commission of
             36      Utah, established in Section 54-1-1 .
             37          (2) The governing body of a Utah interlocal entity created to facilitate the conversion to
             38      alternative fuel vehicles or to facilitate the construction, operation, and maintenance of
             39      facilities for alternative fuel vehicles, or both, shall consist of:
             40          (a) an individual from the executive branch of state government, appointed by the
             41      governor;
             42          (b) a member of the Senate, appointed by the president of the Senate;
             43          (c) a member of the House of Representatives, appointed by the speaker of the House
             44      of Representatives;
             45          (d) an individual from the Utah Association of Counties, appointed by the president of
             46      the Senate;
             47          (e) an individual from the Utah League of Cities and Towns, appointed by the speaker
             48      of the House of Representatives;
             49          (f) an individual employed by a school district in the state, appointed by the governor;
             50          (g) an individual appointed by the public transit district under Title 17B, Chapter 2a,
             51      Part 8, Public Transit District Act, with the largest budget of all public transit districts in the
             52      state; H. [ S. and .S ] .H
             53          (h) an individual employed by a gas corporation in the state, appointed by the
             54      governor S. H. [ [ ] ; and [ ] ] .H . .S
             55           S. [ (i) an individual employed by an electrical corporation, appointed by the governor. ] .S
             55a      H. (i) a representative of the Utah Petroleum Marketers and Retailers Association,
             55b      appointed by the governor. .H
             56          (3) A Utah interlocal entity described in Subsection (2):
             57          (a) may contribute toward the funding required for the construction, operation, and
             58      maintenance of facilities for alternative fuel vehicles that are used by or benefit the interlocal



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House Floor Amendments 3-13-2013 je/rhr
Senate 2nd & 3rd Reading Amendments 3-11-2013 lp/rhr
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Senate Committee Amendments 3-7-2013 cm/rhr
             59      entity; and
             60          (b) shall participate with the commission in proceedings the commission conducts
             61      under Section 54-1-13 .
             62          Section 2. Section 54-1-13 is enacted to read:
             63          54-1-13. Commission exploration of cleaner air options.
             64          (1) The commission shall immediately initiate and conduct proceedings to explore and
             65      develop options and opportunities for advancing and promoting measures designed to result in
             66      cleaner air in the state H. through the enhanced use of alternative fuel vehicles .H , including:
             67          (a) consideration of the role that S. [ public utilities ] gas corporations .S should play in
             67a      the enhancement and
             68      expansion of the infrastructure and maintenance and other facilities for alternative fuel
             69      vehicles;
             70          (b) the potential funding options available to pay for the enhancement and expansion of
             71      infrastructure and facilities for alternative fuel vehicles;
             72          (c) the role local government, including any local government entity established for the
             73      purpose of facilitating conversion to alternative fuel vehicles and of promoting the
             74      enhancement and expansion of the infrastructure and facilities for those vehicles, can or should
             75      play; and
             76          (d) the most effective ways to overcome any obstacles to converting to alternative fuel
             77      vehicles and to enhancing and expanding the infrastructure and facilities for alternative fuel
             78      vehicles.
             79          (2) As soon as an interlocal entity described in Subsection 11-13-224 (2) is created, the
             80      commission shall seek, encourage, and accept the interlocal entity's participation in the
             81      commission's proceedings under this section.
             82          (3) S. [ The commission shall report the results of its proceedings under Subsection (1),
             83      including any conclusions and recommendations, to the governor, the Legislative Management
             84      Committee, and the Public Utilities and Technology Interim Committee by September 30,
             85      2013.
] By September 30, 2013, the commission and the interlocal entity described in Subsection

             85a      11-13-224(2) shall report to the governor, the Legislative Management Committee, and the
             85b      Public Utilities and Technology Interim Committee:
             85c          (a) the results of the commission proceedings under Subsection (1); and
             85d          (b) recommendations for specific actions to implement mechanisms to provide funding
             85e      for the enhancement and expansion of the infrastructure and facilities for alternative fuel
             85f      vehicles .S .
             86           Section 3. Section 54-4-13.4 is enacted to read:
             87          54-4-13.4. Natural gas fueling stations and facilities -- Recovery of expenditures
             88      for stations and facilities.
             89          (1) The commission shall find that a gas corporation's expenditures for the



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             90
     construction, operation, and maintenance of natural gas fueling stations and appurtenant natural
             91      gas facilities for use by the state, political subdivisions of the state, and the public are in the
             92      public interest and are just and reasonable, if:
             93          (a) the gas corporation's expenditures for the fueling stations and appurtenant facilities:
             94          (i) are prudently incurred; and
             95          (ii) do not exceed $5,000,000 in any calendar year;
             96          (b) the gas corporation shows that the estimated annual incremental increase in revenue
             97      related to the stations and facilities exceeds 50% of the annual revenue requirement of the
             98      stations and facilities; and
             99          (c) the stations and facilities are in service and are being used and are useful.
             100          (2) (a) A gas corporation may seek the recovery of expenditures under Subsection (1)
             101      through a mechanism designed to track and collect the expenditures between general rate cases.
             102          (b) (i) The commission shall allow a gas corporation to recover, through an incremental
             103      surcharge to all of its rate classes, expenditures that the gas corporation incurs that are directly
             104      related to the construction, operation, and maintenance of the stations and facilities described
             105      in Subsection (1), reduced by revenues the gas corporation receives during the same time
             106      period directly attributable to the stations and facilities.
             107          (ii) The commission shall assign a surcharge under Subsection (2)(b)(i) to each rate
             108      class based upon the pro rata share, approved by the commission, of the tariff revenue ordered
             109      in the gas corporation's most recent general rate case.
             110          (iii) A gas corporation may file an application to adjust a surcharge under Subsection
             111      (2)(b)(i) as frequently as semiannually.
             112          (iv) At the gas corporation's next general rate case, the commission shall include in
             113      base rates all expenditures that the gas corporation prudently incurs associated with a surcharge
             114      under Subsection (2)(b)(i).
             115          Section 4. Effective date.
             116          If approved by two-thirds of all the members elected to each house, this bill takes effect
             117      upon approval by the governor, or the day following the constitutional time limit of Utah
             118      Constitution Article VII, Section 8, without the governor's signature, or in the case of a veto,
             119      the date of veto override.



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Legislative Review Note
    as of 3-1-13 2:14 PM


Office of Legislative Research and General Counsel


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