Second Substitute H.B. 44
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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 certificate
15 of in-state need 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
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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) "Certificate of in-state need" means a certificate issued by the office in accordance
39 with this Subsection (3) certifying that a proposed merchant electric transmission line can
40 fulfill present and future in-state electric power needs as demonstrated by an expression of
41 need.
42 (ii) "In-state merchant generator" or "in-state merchant generation" means an electric
43 power provider that generates power in Utah and does not provide service to retail customers
44 within the boundaries of Utah.
45 (iii) "Merchant electric transmission line" means a transmission line that does not
46 provide electricity to retail customers within the boundaries of Utah.
47 (iv) "Expression of need" means a document prepared and submitted by an in-state
48 merchant generator that describes or otherwise documents:
49 (A) present and future transmission needs from a proposed merchant electric
50 transmission line;
51 (B) the state and local economic impacts resulting from the use of the transmission in
52 the in-state merchant generator project; and
53 (C) that the in-state merchant generator has received one or more required permits or
54 other approval condition required by a state or local authority for an in-state merchant
55 generation project.
56 (v) "Office" means the Office of Energy Development established in Section
57 63M-4-401 .
58 (b) A county may not consider a land use application for a conditional use for a
59 proposed merchant electric transmission line unless the person filing the application includes a
60 certificate of in-state need for that merchant electric transmission line.
61 (c) To receive a certificate of in-state need, the person described in Subsection (3)(b)
62 shall request a certificate of in-state need from the office by filing a written request that
63 describes the proposed merchant electric transmission line and includes the name and contact
64 information of the person.
65 (d) (i) If the office receives a request described in Subsection (3)(c), the office shall:
66 (A) publish notice on the Utah Public Notice Website created under Section 63F-1-701
67 that the office has received a request for a certificate of in-state need;
68 (B) identify the requesting person and briefly describe the proposed merchant electric
69 transmission line; and
70 (C) include contact information and provide the deadline date for submission as
71 described in Subsection (3)(e) for an in-state merchant generator to submit an expression of
72 need for the merchant electric transmission line.
73 (ii) An in-state merchant generator that submits an expression of need under
74 Subsection (3)(d)(i)(C) shall:
75 (A) submit the expression of need no later than 30 days after the public notice is
76 published in accordance with Subsection (3)(d)(i)(A); and
77 (B) include a description of the in-state merchant generator's project or proposed
78 project.
79 (e) No later than 30 days after the expiration of the 30-day period described in
80 Subsection (3)(d)(ii)(A) the office shall:
81 (i) review all expressions of need submitted under Subsection (3)(d)(i)(C); and
82 (ii) calculate the present and future needs of each in-state merchant generator based on
83 each submitted expression of need.
84 (f) A person described in Subsection (3)(c) shall no later than 180 days after notice is
85 published in accordance with Subsection (3)(d)(i)(A) submit a copy of each signed
86 transmission agreement for in-state merchant generation entered into with the person.
87 (g) No later than 15 days after the expiration of the 180-day period described in
88 Subsection (3)(f), the office shall determine whether the person described in Subsection (3)(c)
89 has demonstrated in the submitted agreements for in-state merchant generation that the person
90 can fulfill the present and future needs, whether in a proposed build or by future upgrades as
91 described in the agreements, calculated in accordance with Subsection (3)(e)(ii).
92 (h) If a person has demonstrated that the proposed merchant electric transmission line
93 can fulfill present and future needs as calculated in Subsection (3)(e)(ii), the office:
94 (i) shall issue to the person described in Subsection (3)(c) a certificate of in-state need;
95 and
96 (ii) may charge the person a fee, in accordance with Section 63J-1-504 , for the cost of
97 reviewing an agreement described in Subsection (3)(f) or an expression of need described in
98 Subsection (3)(e)(i).
99 (i) A certificate of in-state need issued in accordance with this Subsection (3) is valid
100 only to the extent that a transmission agreement for in-state merchant generation submitted
101 under Subsection (3)(f) continues to reflect the agreements of the parties.
102 (4) Subsection (3) does not apply to a land use application for a conditional use for a
103 transmission line that is, or is proposed to be, owned or operated by a project entity as defined
104 in Section 11-13-103 .
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