Section 1. Section 11-13-301.5 is enacted to read:11-13-301.5. Governance.(1)As used in this section, "board" means the governing board of a project entity created in Subsection (2).(2)The governing board of a project entity shall be composed of the following members:(a)the executive director of the Office of Energy Development or the executive director's designee;(b)two members appointed by the governor;(c)one member appointed by the president of the Senate; and(d)one member appointed by the speaker of the House of Representatives.(3)The duties of the board include:(a)creating and implementing a long-term strategic plan for the project entity, taking into consideration:(i)the state energy policy, as provided in Section 79-6-301;(ii)the interests of the relevant municipalities; and(iii)the economic viability of the project entity;(b)approving budgets, expenditures, bonds, and other financial matters of the project entity;(c)establishing policies, rules, and regulations for the governance of the project entity;(d)overseeing the management and operations of the project entity;(e)entering into contracts on behalf of the project entity;(f)acquiring, holding, and disposing of property on behalf of the project entity;(g)facilitating the transfer of a project entity asset to the state; and(h)taking any other action necessary for the proper functioning and governance of the project entity.(4)The board has all powers necessary to:(a)govern the affairs of the project entity;(b)carry out the project entity's purposes and duties as described in Subsection (3);(c)negotiate and execute agreements for the transfer of a project entity asset to the state; and(d)facilitate the transfer of a project entity asset to the state.(5)Notwithstanding Subsection (4), the board:(a)may not take any action that would:(i)interfere with the project entity's ownership or operation of electrical generation facilities that remain in active service; and(ii)affect the terms, conditions, or implementation of any existing contract, bond, or other financial obligation; and(b)shall respect and maintain all existing legal and financial obligations of the project entity.(6)A project entity may not establish a governing board by contract or interlocal agreement, and any governing board of a project entity existing before May 6, 2026, is dissolved.(7)(a)Except for the member described in Subsection (2)(a), each member of the board shall be appointed to a four-year term.(b)The person with appointment authority for a member described in Subsection (2) shall, at the initial time of appointment, adjust the length of terms to ensure that the terms of board members are staggered so that approximately half of the board is appointed every two years.(c)An appointed member is eligible for reappointment for one additional term.(d)When a vacancy occurs in the membership for any reason, the person with appointment authority for the vacated board member position shall appoint a replacement member for the remainder of the unexpired term.(8)The board shall report annually before November 30 to the Public Utilities, Energy, and Technology Interim Committee regarding:(a)the activities of the board;(b)the status and operations of the project entity; and(c)progress toward any planned transfer of project entity assets to the state.