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First Substitute H.J.R. 9

Representative Roger E. Barrus proposes the following substitute bill:


             1     
JOINT RESOLUTION ON COST-EFFECTIVE

             2     
ENERGY EFFICIENCY AND UTILITY

             3     
DEMAND-SIDE MANAGEMENT

             4     
2009 GENERAL SESSION

             5     
STATE OF UTAH

             6     
Chief Sponsor: Roger E. Barrus

             7     
Senate Sponsor: Patricia W. Jones

             8     
             9      LONG TITLE
             10      General Description:
             11          This joint resolution of the Legislature urges state and local governments and electrical
             12      and natural gas corporations and utilities to encourage all available cost-effective
             13      energy efficiency and conservation and participate in existing cost-effective energy
             14      efficiency programs.
             15      Highlighted Provisions:
             16          This resolution:
             17          .    urges state and local governments, electrical corporations, natural gas utility
             18      corporations, rural electric cooperatives, and municipal utilities to work together to
             19      recognize energy efficiency as a priority resource, to promote and encourage all
             20      available cost-effective energy efficiency and conservation, and to participate in
             21      existing cost-effective energy efficiency programs;
             22          .    expresses support for cost-effective energy efficiency and load management
             23      programs for customers of rural electric cooperatives and municipal electric and gas
             24      utilities designed to reduce projected natural gas and electric usage.
             25          .    expresses support for cost-effective energy efficiency and load management


             26      programs for customers of Rocky Mountain Power, and the setting of an electricity savings
             27      goal through a regulatory process;
             28          .    expresses support for cost-effective energy efficiency and load management
             29      programs by customers of Questar Gas, and the setting of a natural gas savings goal
             30      through a regulatory process;
             31          .    expresses support for regulator mechanisms intended to help remove utility
             32      disincentives and create incentives to efficiency and conservation so long as these
             33      mechanisms are found to be in the public interest.
             34      Special Clauses:
             35          None
             36     
             37      Be it resolved by the Legislature of the state of Utah:
             38          WHEREAS, according to Section 63M-4-301 , Utah Code Annotated, it is the policy of
             39      the state that Utah will pursue energy conservation and energy efficiency;
             40          WHEREAS, Governor Huntsman has set a goal of increasing energy efficiency in the
             41      state by 20% by 2015;
             42          WHEREAS, the Federal Energy Independence and Security Act of 2007 requires
             43      electrical and natural gas utilities to adopt policies establishing energy efficiency as a priority
             44      resource;
             45          WHEREAS, increasing cost-effective efficiency of energy use will save consumers and
             46      businesses money, save resources for future generations, and reduce energy costs for all
             47      Utahns;
             48          WHEREAS, electrical corporations, natural gas utility corporations, certain municipal
             49      utilities, and rural electric cooperatives have adopted initiatives to emphasize energy efficiency
             50      and conservation as an integral part of their decision-making process for energy resources;
             51          WHEREAS, electrical corporations, natural gas utility corporations, distribution
             52      electric cooperatives, and municipal utilities can play an essential role in helping consumers
             53      and businesses identify and implement cost-effective energy efficiency measures;
             54          WHEREAS, if electrical corporations and natural gas utility corporations lose revenues
             55      when they help their customers save energy, it could create a disincentive for the utility to
             56      achieve all cost-effective energy efficiency; and


             57          WHEREAS, the Public Service Commission may approve regulatory mechanisms
             58      which remove utility disincentives to efficiency and conservation provided that they result in
             59      just and reasonable rates:
             60          NOW, THEREFORE, BE IT RESOLVED that the Legislature of the state of Utah
             61      urges state and local governments, electrical corporations, natural gas utility corporations, rural
             62      electric cooperatives, and municipal utilities to work together to recognize energy efficiency as
             63      a priority resource and to promote and encourage all available cost-effective energy efficiency
             64      and conservation.
             65          BE IT FURTHER RESOLVED that the Legislature urges state and local governments
             66      to participate in existing cost-effective energy efficiency programs.
             67          BE IT FURTHER RESOLVED that the Legislature expresses support for cost-effective
             68      energy efficiency and load management programs for customers of rural electric cooperatives
             69      and municipal electric and gas utilities designed to reduce projected natural gas and electric
             70      usage.
             71          BE IT FURTHER RESOLVED that the Legislature expresses support for cost-effective
             72      energy efficiency and load management programs for customers of Rocky Mountain Power and
             73      the setting of an electricity savings goal through a regulatory process that includes Rocky
             74      Mountain Power, utility regulators, utility customers, and other interested parties, designed to
             75      reduce projected electrical sales by an amount equal to not less than 1% of its annual retail
             76      sales and that do not penalize the utility if it fails to meet the savings goals so long as it makes
             77      a good faith effort to meet the goals.
             78          BE IT FURTHER RESOLVED that the Legislature expresses support for cost-effective
             79      energy efficiency and load management programs by customers of Questar Gas and the setting
             80      of a natural gas savings goal through a regulatory process that includes Questar Gas, utility
             81      regulators, utility customers, and other interested parties designed to reduce projected natural
             82      gas sales by an amount equal to not less than 0.5% of its annual retail sales and that do not
             83      penalize the utility if it fails to meet the savings goals so long as it makes a good faith effort to
             84      meet the goals.
             85          BE IT FURTHER RESOLVED that the Legislature expresses support for regulator
             86      mechanisms, which might include performance-based incentives, decoupling fixed cost
             87      recovery from sales volume, and other innovative rate designs intended to help remove utility


             88      disincentives and create incentives to efficiency and conservation so long as these mechanisms
             89      are found to be in the public interest.
             90          BE IT FURTHER RESOLVED that a copy of this resolution be sent to the Public
             91      Service Commission, the Utah League of Cities and Towns, the Utah Association of Counties,
             92      the Utah Rural Electric Association, Rocky Mountain Power, Questar Gas, Utah Associated
             93      Municipal Power Systems, and the Utah Municipal Power Agency.


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