First Substitute H.B. 44

Representative Stephen G. Handy proposes the following substitute bill:


             1     
INTERSTATE ELECTRIC TRANSMISSION LINES

             2     
2014 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Stephen G. Handy

             5     
Senate Sponsor: ____________

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill enacts language related to a conditional use application for a merchant electric
             10      transmission line.
             11      Highlighted Provisions:
             12          This bill:
             13          .    defines terms; and
             14          .    requires an applicant for a merchant electric transmission line to include a
             15      verification letter from the Office of Energy Development with the land use
             16      application.
             17      Money Appropriated in this Bill:
             18          None
             19      Other Special Clauses:
             20          None
             21      Utah Code Sections Affected:
             22      AMENDS:
             23           17-27a-506 , as last amended by Laws of Utah 2005, Chapter 245 and renumbered and
             24      amended by Laws of Utah 2005, Chapter 254
             25     


             26      Be it enacted by the Legislature of the state of Utah:
             27          Section 1. Section 17-27a-506 is amended to read:
             28           17-27a-506. Conditional uses -- Merchant electric transmission line.
             29          (1) A land use ordinance may include conditional uses and provisions for conditional
             30      uses that require compliance with standards set forth in an applicable ordinance.
             31          (2) (a) A conditional use shall be approved if reasonable conditions are proposed, or can
             32      be imposed, to mitigate the reasonably anticipated detrimental effects of the proposed use in
             33      accordance with applicable standards.
             34          (b) If the reasonably anticipated detrimental effects of a proposed conditional use
             35      cannot be substantially mitigated by the proposal or the imposition of reasonable conditions to
             36      achieve compliance with applicable standards, the conditional use may be denied.
             37          (3) (a) As used in this Subsection (3):
             38          (i) "In-state merchant generator" or "in-state merchant generation" means electric
             39      power that is generated in Utah and not provided to retail customers within the boundaries of
             40      Utah.
             41          (ii) "Merchant electric transmission line" means a transmission line that does not
             42      provide electricity to retail customers within the boundaries of Utah.
             43          (iii) "Significant useful transmission capacity" means an electric transmission capacity
             44      for use by an in-state merchant generator that is no less than 25% capacity of the merchant
             45      electric transmission line.
             46          (b) (i) An applicant filing a land use application for a conditional use for a merchant
             47      electric transmission line shall include a letter of verification from the Office of Energy
             48      Development verifying that the merchant electric transmission line operator has reserved
             49      significant useful transmission capacity in the project described in the land use application.
             50          (ii) To receive a letter of verification described in Subsection (3)(b)(i), an applicant
             51      shall submit to the Office of Energy Development copies of each signed transmission
             52      agreement for in-state merchant generation by the applicant.
             53          (iii) The Office of Energy Development:
             54          (A) shall review the agreements submitted by an applicant and determine whether the
             55      submitted agreements demonstrate that the applicant has significant useful transmission
             56      capacity;


             57          (B) after verifying that the applicant has significant useful transmission capacity, shall
             58      issue a verification letter to the applicant; and
             59          (C) may charge a fee, in accordance with Section 63J-1-504 , for the cost of reviewing
             60      the agreements or issuing a verification letter.
             61          (iv) A county may not consider a land use application for a conditional use described in
             62      Subsection (3)(b)(i) unless the application includes a verification letter from the Office of
             63      Energy Development.


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