Agency: Community and Culture

Line Item: Community Development Capital Budget

Function

The programs in the Community Development Capital budget mitigate the impacts of non-metallic mineral extraction and help fund special service districts. Funding sources for the program are mineral lease royalties returned to the State by the federal government.

Utah is energy rich in coal, hydroelectric, geothermal, natural gas, uranium and crude oil. The energy industry not only includes production of energy fuels, but the conversion of these resources into other forms of energy such as petroleum and electricity. This energy is used in Utah, shipped to other surrounding states, or exported to overseas markets.

In order to help mitigate local impacts of major energy and mineral development on federal lands, the federal government returns half of the royalty revenues collected back to the State of origin. The royalties collected are called mineral lease funds. Because of the prevalence of federal lands in Utah, these impacts are extensive.

Utah puts the revenue into two General Fund - Restricted Accounts. The Mineral Lease Account is general royalty revenue returned to the State. The Mineral Lease Bonus Account originally came from the Department of Interior oil shale prototype leases known as U-a and U-b, located in eastern Utah. Currently, Bonus Revenue includes revenue from lease renewal fees and leases obtained from new mineral development.

Statutory Authority

Statutory authority for the Permanent Community Impact Board is provided in UCA 9-4-301. Statute requires that funds be used for the alleviation of social, economic, and public finance impacts resulting from the development of natural resources in Utah.

Funding Detail

The CD Capital program is funded through federal mineral lease revenues. As an additional source of revenue, repayments are generated as loans are paid back. These funds are then reflected in the program.