Section 1. Section 54-17-601 is amended to read:54-17-601. Definitions.As used in this part:(1)"Adjusted retail electric sales" means the total kilowatt-hours of retail electric sales of an electrical corporation to customers in this state in a calendar year, reduced by:(a)the amount of those kilowatt-hours attributable to electricity generated or purchased in that calendar year from qualifying zero carbon emissions generation and qualifying carbon sequestration generation;(b)the amount of those kilowatt-hours attributable to electricity generated or purchased in that calendar year from generation located within the geographic boundary of the Western Electricity Coordinating Council that derives its energy from one or more of the following but that does not satisfy the definition of a clean energy source or that otherwise has not been used to satisfy Subsection 54-17-602(1):(i)wind energy;(ii)solar photovoltaic and solar thermal energy;(iii)wave, tidal, and ocean thermal energy;(iv)except for combustion of wood that has been treated with chemical preservatives such as creosote, pentachlorophenol or chromated copper arsenate, biomass and biomass byproducts, including:(A)organic waste;(B)forest or rangeland woody debris from harvesting or thinning conducted to improve forest or rangeland ecological health and to reduce wildfire risk;(C)agricultural residues;(D)dedicated energy crops; and(E)landfill gas or biogas produced from organic matter, wastewater, anaerobic digesters, or municipal solid waste;(v)geothermal energy;(vi)hydroelectric energy; or(vii)waste gas and waste heat capture or recovery; and(c)the number of kilowatt-hours attributable to reductions in retail sales in that calendar year from demand side management as defined in Section 54-7-12.8, with the kilowatt-hours for an electrical corporation whose rates are regulated by the commission and adjusted by the commission to exclude kilowatt-hours for which a renewable energy certificate is issued under Subsection 54-17-603(4)(b).(2)"Amount of kilowatt-hours attributable to electricity generated or purchased in that calendar year from qualifying carbon sequestration generation," for qualifying carbon sequestration generation, means the kilowatt-hours supplied by a facility during the calendar year multiplied by the ratio of the amount of carbon dioxide captured from the facility and sequestered to the sum of the amount of carbon dioxide captured from the facility and sequestered plus the amount of carbon dioxide emitted from the facility during the same calendar year.(3)"Banked renewable energy certificate" means a bundled or unbundled renewable energy certificate that is:(a)not used in a calendar year to comply with this part or with a renewable energy program in another state; and(b)carried forward into a subsequent year.(4)"Bundled renewable energy certificate" means a renewable energy certificate for qualifying electricity that is acquired:(a)by an electrical corporation by a trade, purchase, or other transfer of electricity that includes the renewable energy attributes of, or certificate that is issued for, the electricity; or(b)by an electrical corporation by generating the electricity for which the renewable energy certificate is issued.(5)"Clean energy source" means:(a)an electric generation facility or generation capability or upgrade that becomes operational on or after January 1, 1995, that derives its energy from one or more of the following:(i)wind energy;(ii)solar photovoltaic and solar thermal energy;(iii)wave, tidal, and ocean thermal energy;(iv)except for combustion of wood that has been treated with chemical preservatives such as creosote, pentachlorophenol or chromated copper arsenate, biomass and biomass byproducts, including:(A)organic waste;(B)forest or rangeland woody debris from harvesting or thinning conducted to improve forest or rangeland ecological health and to reduce wildfire risk;(C)agricultural residues;(D)dedicated energy crops; and(E)landfill gas or biogas produced from organic matter, wastewater, anaerobic digesters, or municipal solid waste;(v)geothermal energy located outside the state;(vi)waste gas and waste heat capture or recovery, including methane gas from:(A)an abandoned coal mine; or(B)a coal degassing operation associated with a state-approved mine permit;(vii)efficiency upgrades to a hydroelectric facility, without regard to the date upon which the facility became operational, if the upgrades become operational on or after January 1, 1995;(viii)compressed air, if:(A)the compressed air is taken from compressed air energy storage; and(B)the energy used to compress the air is a clean energy source;(ix)municipal solid waste; or(x)energy derived from nuclear fuel;(b)any of the following:(i)up to 50 average megawatts of electricity per year per electrical corporation from a certified low-impact hydroelectric facility, without regard to the date upon which the facility becomes operational, if the facility is certified as a low-impact hydroelectric facility on or after January 1, 1995, by a national certification organization;(ii)geothermal energy if located within the state, without regard to the date upon which the facility becomes operational; or(iii)hydroelectric energy if located within the state, without regard to the date upon which the facility becomes operational;(c)hydrogen gas derived from any source of energy described in Subsection (5)(a) or (b);(d)if an electric generation facility employs multiple energy sources, that portion of the electricity generated that is attributable to energy sources described in Subsections (5)(a) through (c); and(e)any of the following located in the state and owned by a user of energy:(i)a demand side management measure, as defined by Subsection 54-7-12.8(1), with the quantity of renewable energy certificates to which the user is entitled determined by the equivalent energy saved by the measure;(ii)a solar thermal system that reduces the consumption of fossil fuels, with the quantity of renewable energy certificates to which the user is entitled determined by the equivalent kilowatt-hours saved, except to the extent the commission determines otherwise with respect to net-metered energy;(iii)a solar photovoltaic system that reduces the consumption of fossil fuels with the quantity of renewable energy certificates to which the user is entitled determined by the total production of the system, except to the extent the commission determines otherwise with respect to net-metered energy;(iv)a hydroelectric or geothermal facility with the quantity of renewable energy certificates to which the user is entitled determined by the total production of the facility, except to the extent the commission determines otherwise with respect to net-metered energy;(v)a waste gas or waste heat capture or recovery system, other than from a combined cycle combustion turbine that does not use waste gas or waste heat, with the quantity of renewable energy certificates to which the user is entitled determined by the total production of the system, except to the extent the commission determines otherwise with respect to net-metered energy; and(vi)the station use of solar thermal energy, solar photovoltaic energy, hydroelectric energy, geothermal energy, waste gas, or waste heat capture and recovery.; or(f)a high-resolution demand-side resource.(6)"Electrical corporation":(a)is as defined in Section 54-2-1; and(b)does not include a person generating electricity that is not for sale to the public.(7)"High-resolution demand-side resource" means a system that:(a)provides real-time, circuit-level sub-metering to measure and verify demand reduction;(b)utilizes automated load control capable of responding to grid conditions;(c)provides granular measurement data;(d)may be comprised of a single site or an aggregation of multiple distributed sites managed by a unified control system; and(e)uses hardware, software, and firmware that comply with grid interconnection and communication standards adopted or recognized by the commission.(7)(8)"Qualifying carbon sequestration generation" means a fossil-fueled generating facility located within the geographic boundary of the Western Electricity Coordinating Council that:(a)becomes operational or is retrofitted on or after January 1, 2008; and(b)reduces carbon dioxide emissions into the atmosphere through permanent geological sequestration or through another verifiably permanent reduction in carbon dioxide emissions through the use of technology.(8)(9)"Qualifying electricity" means: (a)electricity generated on or after January 1, 1995, from a clean energy source if:(a)(i)(i)(A)the renewable energy source is located within the geographic boundary of the Western Electricity Coordinating Council; or(ii)(B)the qualifying electricity is delivered to the transmission system of an electrical corporation or a delivery point designated by the electrical corporation for the purpose of subsequent delivery to the electrical corporation; and(b)(ii)the renewable energy attributes of the electricity are not traded, sold, transferred, or otherwise used to satisfy another state's renewable energy program.; and(b)for purposes of commission-approved voluntary renewable or clean energy tariffs, verified net reductions in electricity consumption delivered through a high-resolution demand-side resource.(9)(10)"Qualifying zero carbon emissions generation":(a)means a generation facility located within the geographic boundary of the Western Electricity Coordinating Council that:(i)becomes operational on or after January 1, 2008; and(ii)does not produce carbon as a byproduct of the generation process;(b)includes generation powered by nuclear fuel; and(c)does not include renewable energy sources used to satisfy the requirement established under Subsection 54-17-602(1).(10)(11)"Renewable energy certificate" means a certificate issued under Section 54-17-603.(11)(12)"Unbundled renewable energy certificate" means a renewable energy certificate associated with:(a)qualifying electricity that is acquired by an electrical corporation or other person by trade, purchase, or other transfer without acquiring the electricity for which the certificate was issued; or(b)activities listed in Subsection (5)(e).

Section 2. Section 54-17-801 is amended to read:54-17-801. Definitions.As used in this part:(1)"Clean energy contract" means a contract under this part for the delivery of electricity or the provision of verified load reduction from one or more clean energy facilities to a contract customer requiring the use of a qualified utility's transmission or distribution system to deliver the electricity from a clean energy facility to the contract customer.(2)(a)"Clean energy facility" means:(i) a clean energy source as defined in Section 54-17-601 that:(i)(A)is located in the state; or(ii)(B)(A)is located outside the state; and(B)provides energy from baseload clean resources.; or(ii)a high-resolution demand-side resource, whether located on the contract customer's premises or aggregated from third-party locations.(b)"Clean energy facility" does not include an electric generating facility for which the electric generating facility's costs are included in a qualified utility's rates as a facility that provides electric service to the qualified utility's system.(3)"Clean energy tariff" means a tariff offered by a qualified utility that allows the qualified utility to procure clean generation on behalf of and to serve its customers.(4)"Contract customer" means a person who executes or will execute a clean energy contract with a qualified utility.(5)"High-resolution demand-side resource" means the same as that term is defined in Section 54-17-601.(5)(6)"Qualified utility" means an electric corporation that serves more than 200,000 retail customers in the state.

Section 3. Section 54-17-802 is amended to read:54-17-802. Contracts for the purchase of electricity from a clean energy facility.(1)Within a reasonable time after receiving a request from a contract customer and subject to reasonable credit requirements, a qualified utility shall enter into a clean energy contract with the requesting contract customer to supply some or all of the contract customer's electric service from one or more clean energy facilities selected by the contract customer.(2)Subject to a contract customer agreeing to pay the qualified utility for all incremental costs associated with metering facilities, communication facilities, and administration, a clean energy contract may provide for electricity to be delivered to a contract customer:(a)from one clean energy facility to a contract customer's single metered delivery location;(b)from multiple clean energy facilities to a contract customer's single metered delivery location; or(c)from one or more clean energy facilities to a single contract customer's multiple metered delivery locations.(3)(a)A single contract customer may aggregate multiple metered delivery locations to satisfy the minimum megawatt limit under Subsection (4).(b)Multiple contract customers may not aggregate their separate metered delivery locations to satisfy the minimum megawatt limit under Subsection (4).(4)The amount of electricity provided to a contract customer under a clean energy contract may not be less than 2.0 megawatts.(5)The amount of electricity provided in any hour to a contract customer under a clean energy contract may not exceed the contract customer's metered kilowatt-hour load in that hour at the metered delivery locations under the contract.(6)A clean energy contract that meets the requirements of Subsection (4) may provide for one or more increases in the amount of electricity to be provided under the contract even though the amount of electricity to be provided by the increase is less than the minimum amount required under Subsection (4).(7)The total amount of electricity to be generated by clean energy facilities and delivered to contract customers at any one time under all clean energy contracts may not exceed 300 megawatts, unless the commission approves in advance a higher amount.(8)Electricity generated by a clean energy facility and delivered to a contract customer under a clean energy contract may not be included in a net metering program under Chapter 15, Net Metering of Electricity.(9)For purposes of this part, the requirement for delivery of electricity to a contract customer is satisfied if a high-resolution demand-side resource provides a metered reduction in load.

Section 4. Section 54-17-805 is amended to read:54-17-805. Costs associated with delivering electricity from a clean energy facility to a contract customer.(1)To the extent that a clean energy contract provides for the delivery of electricity from a clean energy facility owned by the contract customer, the clean energy contract shall require the contract customer to pay for the use of the qualified utility's transmission or distribution facilities at the qualified utility's applicable rates, which may include transmission costs at the qualified utility's applicable rate approved by the Federal Energy Regulatory Commission.(2)To the extent that a clean energy contract provides for the delivery of electricity from a clean energy facility owned by a person other than the qualified utility or the contract customer, the clean energy contract shall require the contract customer to bear all reasonably identifiable costs that the qualified utility incurs in delivering the electricity from the clean energy facility to the contract customer, including all costs to procure and deliver electricity and for billing, administrative, and related activities, as determined by the commission.(3)A qualified utility that enters a clean energy contract shall charge a contract customer for all metered electric service delivered to the contract customer, including generation, transmission, and distribution service, at the qualified utility's applicable tariff rates, excluding:(a)any kilowatt hours of electricity delivered from the clean energy facility, based on the time of delivery, adjusted for transmission losses;(b)any kilowatts of electricity delivered from the clean energy facility that coincide with the contract customer's monthly metered kilowatt demand measurement, adjusted for transmission losses;(c)any transmission and distribution service that the contract customer pays for under Subsection (1) or (2); and(d)any transmission service that the contract customer provides under Subsection (2) to deliver generation from the clean energy facility.(4)For a clean energy contract involving a high-resolution demand-side resource, verified reductions in electricity consumption shall be treated as electricity delivered from the clean energy facility for purposes of Subsection (3).

Section 5. Section 54-17-806 is amended to read:54-17-806. Qualified utility clean energy tariff.(1)The commission may authorize a qualified utility to implement a clean energy tariff in accordance with this section if the commission determines the tariff that the qualified utility proposes is reasonable and in the public interest.(2)The commission may authorize a tariff under Subsection (1) to apply to:(a)a qualified utility customer with an aggregated electrical load of at least five megawatts; or(b)a combination of qualified utility customers who are separately metered if:(i)the aggregated electrical load of the qualified utility customers is at least five megawatts; and(ii)each of the qualified utility customers is located within a project area, as defined in Section 11-58-102.(3)A customer who agrees to take service that is subject to the clean energy tariff under this section shall pay:(a)the customer's normal tariff rate;(b)an incremental charge in an amount equal to the difference between the cost to the qualified utility to supply clean generation to the clean energy tariff customer and the qualified utility's avoided costs as defined in Subsection 54-2-1(1), or a different methodology recommended by the qualified utility; and(c)an administrative fee in an amount approved by the commission.(4)The commission shall allow a qualified utility to recover the qualified utility's prudently incurred cost of clean generation procured pursuant to the tariff established in this section that is not otherwise recovered from the proceeds of the tariff paid by customers agreeing to service that is subject to the clean energy tariff.(5)For a clean energy tariff implemented under this section:(a)notwithstanding any utility regulation or tariff to the contrary, a qualified utility shall accept sub-metering data from a high-resolution demand-side resource for billing and verification purposes;(b)a qualified utility may not:(i)exclude high-resolution demand-side resources from participation;(ii)require a physical generation facility as a condition for a contract customer to receive credits for clean energy usage; or(iii)fail to account for avoided capacity costs and avoided transmission losses in calculating charges for high-resolution demand-side resources;(c)a contract customer may delegate the management, control, and verification of a high-resolution demand-side resource to a third-party service provider or aggregator, and the qualified utility shall recognize the third-party provider as the authorized agent for providing metering data, verifying load reductions, and coordinating with the utility; and(d)eligibility for a demand-side management program does not disqualify a resource from participating in a clean energy contract under this part.

Section 6. Section 79-6-410 is enacted to read:79-6-410. Energy rebate program study.(1)As used in this section:(a)"Commission" means the Public Service Commission established in Section 54-1-1.(b)"Demand side management" means the same as that term is defined in Section 54-7-12.8.(c)"Energy rebate program" means a program operated by a public utility that provides financial rebates or incentives to customers for demand side management.(d)"Large-scale public utility" means a public utility that:(i)provides retail electric service to more than 200,000 retail customers in the state; or(ii)provides retail natural gas service to more than 200,000 retail customers in the state.(2)On or before November 30, 2026, the office shall conduct a comprehensive study of energy rebate programs and submit a report to the Public Utilities, Energy, and Technology Interim Committee.(3)In conducting the study described in Subsection (2), the office shall:(a)consult with:(i)large-scale public utilities that operate energy rebate programs;(ii)the commission;(iii)the Office of Consumer Services;(iv)the Division of Public Utilities; and(v)other stakeholders as determined by the office;(b)evaluate energy rebate programs operated by large-scale public utilities in the state, including:(i)the types of rebates offered;(ii)customer participation rates;(iii)energy savings achieved;(iv)cost-effectiveness of programs;(v)administrative costs;(vi)program design and delivery methods; and(vii)barriers to customer participation;(c)research and analyze energy rebate programs in other states, including:(i)program structures and designs;(ii)measurable outcomes and performance metrics;(iii)innovative approaches to customer engagement; and(iv)lessons learned from program implementation;(d)evaluate the alignment of existing energy rebate programs with the state energy policy described in Section 79-6-301;(e)assess opportunities to improve energy rebate programs to better serve customers;(f)evaluate the impact of energy rebate programs on:(i)energy affordability;(ii)energy reliability;(iii)grid stability and dispatchability;(iv)energy sustainability; and(v)economic development in the state; and(g)identify potential improvements to energy rebate programs offered by large-scale public utilities in the state.(4)The report required by Subsection (2) shall include:(a)a summary of findings from the study;(b)an analysis of how existing energy rebate programs align with the state energy policy;(c)recommendations for best practices in energy rebate program design and implementation;(d)recommendations for improving alignment of energy rebate programs with the state energy policy;(e)recommendations for performance metrics and evaluation criteria for energy rebate programs;(f)recommendations for addressing barriers to customer participation in energy rebate programs;(g)recommendations for program modifications to better serve different customer classes;(h)an assessment of the appropriate role of energy rebate programs in achieving the state's energy goals; and(i)proposed legislative or regulatory changes, if any, to improve energy rebate programs in the state.

Section 7. Section 79-6-411 is enacted to read:79-6-411. Energy rebate program reporting.(1)As used in this section:(a)"Commission" means the Public Service Commission established in Section 54-1-1.(b)"Demand side management" means the same as that term is defined in Section 54-7-12.8.(c)"Energy rebate program" means a program operated by a public utility that provides financial rebates or incentives to customers for demand side management.(d)"Large-scale public utility" means a public utility that:(i)provides retail electric service to more than 200,000 retail customers in the state; or(ii)provides retail natural gas service to more than 200,000 retail customers in the state.(2) On or before November 30, 2026, and annually thereafter on or before November 30, each large-scale public utility that operates an energy rebate program shall submit a report to the commission and to the Public Utilities, Energy, and Technology Interim Committee.(3)The report required by Subsection (2) shall describe:(a)each energy rebate program operated by the large-scale public utility during the previous calendar year;(b)for each energy rebate program:(i)the number of customers who participated in the program by customer class;(ii)the total amount of rebates issued;(iii)energy savings achieved;(iv)cost-effectiveness metrics; and(v)administrative costs incurred; and(c)how each energy rebate program aligns with the state energy policy described in Section 79-6-301.

Section 8. Effective Date.This bill takes effect on May 6, 2026.