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H.B. 137

             1     

ENERGY CHANGES

             2     
2012 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Roger E. Barrus

             5     
Senate Sponsor: Ralph Okerlund

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill modifies provisions relating to energy development and infrastructure.
             10      Highlighted Provisions:
             11          This bill:
             12          .    modifies the Loan Program for Energy Efficiency Projects, including substituting
             13      the Office of Energy Development for the Utah Geological Survey in provisions
             14      relating to authority for administering the loan program;
             15          .    substitutes the Office of Energy Development for the Utah Geological Survey in
             16      provisions relating to certain energy-related tax credits;
             17          .    modifies and renames the Utah Generated Renewable Energy Electricity Network
             18      Authority Act, including expanding the act to apply to energy infrastructure instead
             19      of transmission facilities for delivery of energy generated from a renewable source
             20      and modifying the makeup of the authority board; and
             21          .    modifies the Utah Energy Act, including provisions relating to the governor's energy
             22      advisor and the Office of Energy Development.
             23      Money Appropriated in this Bill:
             24          None
             25      Other Special Clauses:
             26          None
             27      Utah Code Sections Affected:


             28      AMENDS:
             29          11-45-102, as last amended by Laws of Utah 2011, Chapter 14
             30          11-45-202, as enacted by Laws of Utah 2010, Chapter 72
             31          11-45-203, as enacted by Laws of Utah 2010, Chapter 72
             32          11-45-204, as enacted by Laws of Utah 2010, Chapter 72
             33          11-45-205, as enacted by Laws of Utah 2010, Chapter 72
             34          59-7-614, as last amended by Laws of Utah 2011, Chapter 384
             35          59-10-1014, as last amended by Laws of Utah 2011, Chapter 384
             36          59-10-1106, as last amended by Laws of Utah 2011, Chapter 384
             37          63H-2-101, as enacted by Laws of Utah 2009, Chapter 378
             38          63H-2-102, as last amended by Laws of Utah 2010, Chapter 218
             39          63H-2-201, as enacted by Laws of Utah 2009, Chapter 378
             40          63H-2-202, as last amended by Laws of Utah 2010, Chapters 112 and 286
             41          63H-2-204, as last amended by Laws of Utah 2010, Chapter 90
             42          63H-2-301, as enacted by Laws of Utah 2009, Chapter 378
             43          63H-2-302, as enacted by Laws of Utah 2009, Chapter 378
             44          63H-2-401, as enacted by Laws of Utah 2009, Chapter 378
             45          63H-2-402, as enacted by Laws of Utah 2009, Chapter 378
             46          63H-2-404, as enacted by Laws of Utah 2009, Chapter 378
             47          63M-4-102, as renumbered and amended by Laws of Utah 2008, Chapter 382
             48          63M-4-203, as renumbered and amended by Laws of Utah 2008, Chapter 382
             49          63M-4-401, as enacted by Laws of Utah 2011, Chapter 375
             50     
             51      Be it enacted by the Legislature of the state of Utah:
             52          Section 1. Section 11-45-102 is amended to read:
             53           11-45-102. Definitions.
             54          As used in this section:
             55          [(1) "Board" means the Board of the Utah Geological Survey.]
             56          [(2)] (1) "Energy code" means the energy efficiency code adopted under Section
             57      15A-1-204 .
             58          [(3)] (2) (a) "Energy efficiency project" means:


             59          (i) for an existing building, a retrofit to improve energy efficiency; or
             60          (ii) for a new building, an enhancement to improve energy efficiency beyond the
             61      minimum required by the energy code.
             62          (b) "Energy efficiency projects" include the following expenses:
             63          (i) construction;
             64          (ii) engineering;
             65          (iii) energy audit; or
             66          (iv) inspection.
             67          [(4)] (3) "Fund" means the Energy Efficiency Fund created in Part 2, Energy Efficiency
             68      Fund.
             69          (4) "Office" means the Office of Energy Development created in Section 63M-4-401 .
             70          (5) "Political subdivision" means a county, city, town, or school district.
             71          Section 2. Section 11-45-202 is amended to read:
             72           11-45-202. Criteria for loans.
             73          (1) The [board] office shall make a loan from the fund to a political subdivision only to
             74      finance an energy efficiency project.
             75          (2) The [board] office may not make a loan from the fund:
             76          (a) to finance a political subdivision's compliance with the energy code in the
             77      construction of a new building; or
             78          (b) with a term of less than two years or more than 12 years.
             79          Section 3. Section 11-45-203 is amended to read:
             80           11-45-203. Applications.
             81          (1) A political subdivision shall submit an application to the [board] office in the form
             82      and containing the information that the [board] office requires, which shall include the plans
             83      and specifications for the proposed energy efficiency project.
             84          (2) (a) In the application, a political subdivision may request a loan to cover all or part
             85      of the cost of an energy efficiency project.
             86          (b) If an application is rejected, the [board] office shall notify the applicant stating the
             87      reasons for the rejection.
             88          Section 4. Section 11-45-204 is amended to read:
             89           11-45-204. Energy advisor to make rules establishing criteria.


             90          (1) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             91      [board] office shall make rules to determine:
             92          (a) eligibility for a loan; and
             93          (b) priorities among energy efficiency projects.
             94          (2) When making a rule to determine priorities among energy efficiency projects, the
             95      [board] office may consider the following:
             96          (a) possible additional sources of revenue;
             97          (b) feasibility and practicality of an energy efficiency project;
             98          (c) energy savings;
             99          (d) annual energy cost savings;
             100          (e) projected energy cost payback;
             101          (f) financial need of the public facility owner;
             102          (g) environmental and other benefits to the state and local community; and
             103          (h) availability of federal funds.
             104          Section 5. Section 11-45-205 is amended to read:
             105           11-45-205. Approval of loan by energy advisor.
             106          (1) In approving a loan, the [board] office shall:
             107          (a) review the loan application, plans, and specifications for the project;
             108          (b) determine whether or not to grant the loan by applying [its] the office's eligibility
             109      criteria; and
             110          (c) if the loan is granted, prioritize the energy efficiency project by applying [its] the
             111      office's priority criteria.
             112          (2) The [board] office may provide conditions on a loan to ensure that:
             113          (a) the proceeds of the loan will be used to pay the cost of the project; and
             114          (b) the project will be completed.
             115          Section 6. Section 59-7-614 is amended to read:
             116           59-7-614. Renewable energy systems tax credit -- Definitions -- Limitations --
             117      Certification -- Rulemaking authority.
             118          (1) As used in this section:
             119          (a) "Active solar system":
             120          (i) means a system of equipment capable of collecting and converting incident solar


             121      radiation into thermal, mechanical, or electrical energy, and transferring these forms of energy
             122      by a separate apparatus to storage or to the point of use; and
             123          (ii) includes water heating, space heating or cooling, and electrical or mechanical
             124      energy generation.
             125          (b) "Biomass system" means any system of apparatus and equipment for use in
             126      converting material into biomass energy, as defined in Section 59-12-102 , and transporting that
             127      energy by separate apparatus to the point of use or storage.
             128          (c) "Business entity" means any sole proprietorship, estate, trust, partnership,
             129      association, corporation, cooperative, or other entity under which business is conducted or
             130      transacted.
             131          (d) "Commercial energy system" means any active solar, passive solar, geothermal
             132      electricity, direct-use geothermal, geothermal heat-pump system, wind, hydroenergy, or
             133      biomass system used to supply energy to a commercial unit or as a commercial enterprise.
             134          (e) "Commercial enterprise" means a business entity whose purpose is to produce
             135      electrical, mechanical, or thermal energy for sale from a commercial energy system.
             136          (f) (i) "Commercial unit" means any building or structure that a business entity uses to
             137      transact its business.
             138          (ii) Notwithstanding Subsection (1)(f)(i):
             139          (A) in the case of an active solar system used for agricultural water pumping or a wind
             140      system, each individual energy generating device shall be a commercial unit; and
             141          (B) if an energy system is the building or structure that a business entity uses to
             142      transact its business, a commercial unit is the complete energy system itself.
             143          (g) "Direct-use geothermal system" means a system of apparatus and equipment
             144      enabling the direct use of thermal energy, generally between 100 and 300 degrees Fahrenheit,
             145      that is contained in the earth to meet energy needs, including heating a building, an industrial
             146      process, and aquaculture.
             147          (h) "Geothermal electricity" means energy contained in heat that continuously flows
             148      outward from the earth that is used as a sole source of energy to produce electricity.
             149          (i) "Geothermal heat-pump system" means a system of apparatus and equipment
             150      enabling the use of thermal properties contained in the earth at temperatures well below 100
             151      degrees Fahrenheit to help meet heating and cooling needs of a structure.


             152          (j) "Hydroenergy system" means a system of apparatus and equipment capable of
             153      intercepting and converting kinetic water energy into electrical or mechanical energy and
             154      transferring this form of energy by separate apparatus to the point of use or storage.
             155          (k) "Individual taxpayer" means any person who is a taxpayer as defined in Section
             156      59-10-103 and an individual as defined in Section 59-10-103 .
             157          (l) "Office" means the Office of Energy Development created in Section 63M-4-401 .
             158          [(l)] (m) "Passive solar system":
             159          (i) means a direct thermal system that utilizes the structure of a building and its
             160      operable components to provide for collection, storage, and distribution of heating or cooling
             161      during the appropriate times of the year by utilizing the climate resources available at the site;
             162      and
             163          (ii) includes those portions and components of a building that are expressly designed
             164      and required for the collection, storage, and distribution of solar energy.
             165          [(m)] (n) "Residential energy system" means any active solar, passive solar, biomass,
             166      direct-use geothermal, geothermal heat-pump system, wind, or hydroenergy system used to
             167      supply energy to or for any residential unit.
             168          [(n)] (o) "Residential unit" means any house, condominium, apartment, or similar
             169      dwelling unit that serves as a dwelling for a person, group of persons, or a family but does not
             170      include property subject to a fee under:
             171          (i) Section 59-2-404 ;
             172          (ii) Section 59-2-405 ;
             173          (iii) Section 59-2-405.1 ;
             174          (iv) Section 59-2-405.2 ; or
             175          (v) Section 59-2-405.3 .
             176          [(o) "Utah Geological Survey" means the Utah Geological Survey established in
             177      Section 79-3-201 .]
             178          (p) "Wind system" means a system of apparatus and equipment capable of intercepting
             179      and converting wind energy into mechanical or electrical energy and transferring these forms of
             180      energy by a separate apparatus to the point of use, sale, or storage.
             181          (2) (a) (i) For taxable years beginning on or after January 1, 2007, a business entity that
             182      purchases and completes or participates in the financing of a residential energy system to


             183      supply all or part of the energy required for a residential unit owned or used by the business
             184      entity and situated in Utah is entitled to a nonrefundable tax credit as provided in this
             185      Subsection (2)(a).
             186          (ii) (A) A business entity is entitled to a tax credit equal to 25% of the reasonable costs
             187      of each residential energy system installed with respect to each residential unit it owns or uses,
             188      including installation costs, against any tax due under this chapter for the taxable year in which
             189      the energy system is completed and placed in service.
             190          (B) The total amount of each credit under this Subsection (2)(a) may not exceed $2,000
             191      per residential unit.
             192          (C) The credit under this Subsection (2)(a) is allowed for any residential energy system
             193      completed and placed in service on or after January 1, 2007.
             194          (iii) If a business entity sells a residential unit to an individual taxpayer before making
             195      a claim for the tax credit under this Subsection (2)(a), the business entity may:
             196          (A) assign its right to this tax credit to the individual taxpayer; and
             197          (B) if the business entity assigns its right to the tax credit to an individual taxpayer
             198      under Subsection (2)(a)(iii)(A), the individual taxpayer may claim the tax credit as if the
             199      individual taxpayer had completed or participated in the costs of the residential energy system
             200      under Section 59-10-1014 .
             201          (b) (i) For taxable years beginning on or after January 1, 2007, a business entity that
             202      purchases or participates in the financing of a commercial energy system situated in Utah is
             203      entitled to a refundable tax credit as provided in this Subsection (2)(b) if the commercial
             204      energy system does not use wind, geothermal electricity, or biomass equipment capable of
             205      producing a total of 660 or more kilowatts of electricity, and:
             206          (A) the commercial energy system supplies all or part of the energy required by
             207      commercial units owned or used by the business entity; or
             208          (B) the business entity sells all or part of the energy produced by the commercial
             209      energy system as a commercial enterprise.
             210          (ii) (A) A business entity is entitled to a tax credit of up to 10% of the reasonable costs
             211      of any commercial energy system installed, including installation costs, against any tax due
             212      under this chapter for the taxable year in which the commercial energy system is completed and
             213      placed in service.


             214          (B) Notwithstanding Subsection (2)(b)(ii)(A), the total amount of the credit under this
             215      Subsection (2)(b) may not exceed $50,000 per commercial unit.
             216          (C) The credit under this Subsection (2)(b) is allowed for any commercial energy
             217      system completed and placed in service on or after January 1, 2007.
             218          (iii) A business entity that leases a commercial energy system installed on a
             219      commercial unit is eligible for the tax credit under this Subsection (2)(b) if the lessee can
             220      confirm that the lessor irrevocably elects not to claim the credit.
             221          (iv) Only the principal recovery portion of the lease payments, which is the cost
             222      incurred by a business entity in acquiring a commercial energy system, excluding interest
             223      charges and maintenance expenses, is eligible for the tax credit under this Subsection (2)(b).
             224          (v) A business entity that leases a commercial energy system is eligible to use the tax
             225      credit under this Subsection (2)(b) for a period no greater than seven years from the initiation
             226      of the lease.
             227          (vi) A tax credit allowed by this Subsection (2)(b) may not be carried forward or
             228      carried back.
             229          (c) (i) For taxable years beginning on or after January 1, 2007, a business entity that
             230      owns a commercial energy system situated in Utah using wind, geothermal electricity, or
             231      biomass equipment capable of producing a total of 660 or more kilowatts of electricity is
             232      entitled to a refundable tax credit as provided in this Subsection (2)(c) if:
             233          (A) the commercial energy system supplies all or part of the energy required by
             234      commercial units owned or used by the business entity; or
             235          (B) the business entity sells all or part of the energy produced by the commercial
             236      energy system as a commercial enterprise.
             237          (ii) (A) A business entity is entitled to a tax credit under this section equal to the
             238      product of:
             239          (I) 0.35 cents; and
             240          (II) the kilowatt hours of electricity produced and either used or sold during the taxable
             241      year.
             242          (B) (I) The credit calculated under Subsection (2)(c)(ii)(A) may be claimed for
             243      production occurring during a period of 48 months beginning with the month in which the
             244      commercial energy system is placed in commercial service.


             245          (II) The credit allowed by this Subsection (2)(c) for each year may not be carried
             246      forward or carried back.
             247          (C) The credit under this Subsection (2)(c) is allowed for any commercial energy
             248      system completed and placed in service on or after January 1, 2007.
             249          (iii) A business entity that leases a commercial energy system installed on a
             250      commercial unit is eligible for the tax credit under this Subsection (2)(c) if the lessee can
             251      confirm that the lessor irrevocably elects not to claim the credit.
             252          (d) (i) A tax credit under Subsection (2)(a) or (b) may be claimed for the taxable year
             253      in which the energy system is completed and placed in service.
             254          (ii) Additional energy systems or parts of energy systems may be claimed for
             255      subsequent years.
             256          (iii) If the amount of a tax credit under Subsection (2)(a) exceeds a business entity's tax
             257      liability under this chapter for a taxable year, the amount of the credit exceeding the liability
             258      may be carried forward for a period which does not exceed the next four taxable years.
             259          (3) (a) Except as provided in Subsection (3)(b), the tax credits provided for under
             260      Subsection (2) are in addition to any tax credits provided under the laws or rules and
             261      regulations of the United States.
             262          (b) A purchaser of one or more solar units that claims a tax credit under Section
             263      59-7-614.3 for the purchase of the one or more solar units may not claim a tax credit under this
             264      section for that purchase.
             265          (c) (i) The [Utah Geological Survey] office may set standards for residential and
             266      commercial energy systems claiming a credit under Subsections (2)(a) and (b) that cover the
             267      safety, reliability, efficiency, leasing, and technical feasibility of the systems to ensure that the
             268      systems eligible for the tax credit use the state's renewable and nonrenewable energy resources
             269      in an appropriate and economic manner.
             270          (ii) The [Utah Geological Survey] office may set standards for residential and
             271      commercial energy systems that establish the reasonable costs of an energy system, as used in
             272      Subsections (2)(a)(ii)(A) and (2)(b)(ii)(A), as an amount per unit of energy production.
             273          (iii) A tax credit may not be taken under Subsection (2) until the [Utah Geological
             274      Survey] office has certified that the energy system has been completely installed and is a viable
             275      system for saving or production of energy from renewable resources.


             276          (d) The [Utah Geological Survey] office and the commission may make rules in
             277      accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, that are necessary
             278      to implement this section.
             279          (4) (a) On or before October 1, 2012, and every five years thereafter, the Revenue and
             280      Taxation Interim Committee shall review each tax credit provided by this section and report its
             281      recommendations to the Legislative Management Committee concerning whether the credit
             282      should be continued, modified, or repealed.
             283          (b) The Revenue and Taxation Interim Committee's report under Subsection (4)(a)
             284      shall include information concerning the cost of the credit, the purpose and effectiveness of the
             285      credit, and the state's benefit from the credit.
             286          Section 7. Section 59-10-1014 is amended to read:
             287           59-10-1014. Renewable energy systems tax credit -- Definitions -- Limitations --
             288      Certification -- Rulemaking authority.
             289          (1) As used in this part:
             290          (a) "Active solar system":
             291          (i) means a system of equipment capable of collecting and converting incident solar
             292      radiation into thermal, mechanical, or electrical energy, and transferring these forms of energy
             293      by a separate apparatus to storage or to the point of use; and
             294          (ii) includes water heating, space heating or cooling, and electrical or mechanical
             295      energy generation.
             296          (b) "Biomass system" means any system of apparatus and equipment for use in
             297      converting material into biomass energy, as defined in Section 59-12-102 , and transporting that
             298      energy by separate apparatus to the point of use or storage.
             299          (c) "Business entity" means any entity under which business is conducted or transacted.
             300          (d) "Direct-use geothermal system" means a system of apparatus and equipment
             301      enabling the direct use of thermal energy, generally between 100 and 300 degrees Fahrenheit,
             302      that is contained in the earth to meet energy needs, including heating a building, an industrial
             303      process, and aquaculture.
             304          (e) "Geothermal electricity" means energy contained in heat that continuously flows
             305      outward from the earth that is used as a sole source of energy to produce electricity.
             306          (f) "Geothermal heat-pump system" means a system of apparatus and equipment


             307      enabling the use of thermal properties contained in the earth at temperatures well below 100
             308      degrees Fahrenheit to help meet heating and cooling needs of a structure.
             309          (g) "Hydroenergy system" means a system of apparatus and equipment capable of
             310      intercepting and converting kinetic water energy into electrical or mechanical energy and
             311      transferring this form of energy by separate apparatus to the point of use or storage.
             312          (h) "Office" means the Office of Energy Development created in Section 63M-4-401 .
             313          [(h)] (i) "Passive solar system":
             314          (i) means a direct thermal system that utilizes the structure of a building and its
             315      operable components to provide for collection, storage, and distribution of heating or cooling
             316      during the appropriate times of the year by utilizing the climate resources available at the site;
             317      and
             318          (ii) includes those portions and components of a building that are expressly designed
             319      and required for the collection, storage, and distribution of solar energy.
             320          [(i)] (j) "Residential energy system" means any active solar, passive solar, biomass,
             321      direct-use geothermal, geothermal heat-pump system, wind, or hydroenergy system used to
             322      supply energy to or for any residential unit.
             323          [(j)] (k) "Residential unit" means any house, condominium, apartment, or similar
             324      dwelling unit that serves as a dwelling for a person, group of persons, or a family but does not
             325      include property subject to a fee under:
             326          (i) Section 59-2-404 ;
             327          (ii) Section 59-2-405 ;
             328          (iii) Section 59-2-405.1 ;
             329          (iv) Section 59-2-405.2 ; or
             330          (v) Section 59-2-405.3 .
             331          [(k) "Utah Geological Survey" means the Utah Geological Survey established in
             332      Section 79-3-201 .]
             333          (l) "Wind system" means a system of apparatus and equipment capable of intercepting
             334      and converting wind energy into mechanical or electrical energy and transferring these forms of
             335      energy by a separate apparatus to the point of use or storage.
             336          (2) For taxable years beginning on or after January 1, 2007, a claimant, estate, or trust
             337      may claim a nonrefundable tax credit as provided in this section if:


             338          (a) a claimant, estate, or trust that is not a business entity purchases and completes or
             339      participates in the financing of a residential energy system to supply all or part of the energy for
             340      the claimant's, estate's, or trust's residential unit in the state; or
             341          (b) (i) a claimant, estate, or trust that is a business entity sells a residential unit to
             342      another claimant, estate, or trust that is not a business entity before making a claim for a tax
             343      credit under Subsection (6) or Section 59-7-614 ; and
             344          (ii) the claimant, estate, or trust that is a business entity assigns its right to the tax credit
             345      to the claimant, estate, or trust that is not a business entity as provided in Subsection (6)(c) or
             346      Subsection 59-7-614 (2)(a)(iii).
             347          (3) (a) The tax credit described in Subsection (2) is equal to 25% of the reasonable
             348      costs of each residential energy system, including installation costs, against any income tax
             349      liability of the claimant, estate, or trust under this chapter for the taxable year in which the
             350      residential energy system is completed and placed in service.
             351          (b) The total amount of each tax credit under this section may not exceed $2,000 per
             352      residential unit.
             353          (c) The tax credit under this section is allowed for any residential energy system
             354      completed and placed in service on or after January 1, 2007.
             355          (4) (a) The tax credit provided for in this section shall be claimed in the return for the
             356      taxable year in which the residential energy system is completed and placed in service.
             357          (b) Additional residential energy systems or parts of residential energy systems may be
             358      similarly claimed in returns for subsequent taxable years as long as the total amount claimed
             359      does not exceed $2,000 per residential unit.
             360          (c) If the amount of the tax credit under this section exceeds the income tax liability of
             361      the claimant, estate, or trust claiming the tax credit under this section for that taxable year, then
             362      the amount not used may be carried over for a period that does not exceed the next four taxable
             363      years.
             364          (5) (a) A claimant, estate, or trust that is not a business entity that leases a residential
             365      energy system installed on a residential unit is eligible for the residential energy tax credit if
             366      that claimant, estate, or trust confirms that the lessor irrevocably elects not to claim the tax
             367      credit.
             368          (b) Only the principal recovery portion of the lease payments, which is the cost


             369      incurred by the claimant, estate, or trust in acquiring the residential energy system excluding
             370      interest charges and maintenance expenses, is eligible for the tax credits.
             371          (c) A claimant, estate, or trust described in this Subsection (5) may use the tax credits
             372      for a period that does not exceed seven years from the initiation of the lease.
             373          (6) (a) A claimant, estate, or trust that is a business entity that purchases and completes
             374      or participates in the financing of a residential energy system to supply all or part of the energy
             375      required for a residential unit owned or used by the claimant, estate, or trust that is a business
             376      entity and situated in Utah is entitled to a nonrefundable tax credit as provided in this
             377      Subsection (6).
             378          (b) (i) For taxable years beginning on or after January 1, 2007, a claimant, estate, or
             379      trust that is a business entity is entitled to a nonrefundable tax credit equal to 25% of the
             380      reasonable costs of a residential energy system installed with respect to each residential unit it
             381      owns or uses, including installation costs, against any tax due under this chapter for the taxable
             382      year in which the energy system is completed and placed in service.
             383          (ii) The total amount of the tax credit under this Subsection (6) may not exceed $2,000
             384      per residential unit.
             385          (iii) The tax credit under this Subsection (6) is allowed for any residential energy
             386      system completed and placed in service on or after January 1, 2007.
             387          (c) If a claimant, estate, or trust that is a business entity sells a residential unit to a
             388      claimant, estate, or trust that is not a business entity before making a claim for the tax credit
             389      under this Subsection (6), the claimant, estate, or trust that is a business entity may:
             390          (i) assign its right to this tax credit to the claimant, estate, or trust that is not a business
             391      entity; and
             392          (ii) if the claimant, estate, or trust that is a business entity assigns its right to the tax
             393      credit to a claimant, estate, or trust that is not a business entity under Subsection (6)(c)(i), the
             394      claimant, estate, or trust that is not a business entity may claim the tax credit as if that claimant,
             395      estate, or trust that is not a business entity had completed or participated in the costs of the
             396      residential energy system under this section.
             397          (7) (a) A tax credit under this section may be claimed for the taxable year in which the
             398      residential energy system is completed and placed in service.
             399          (b) Additional residential energy systems or parts of residential energy systems may be


             400      claimed for subsequent years.
             401          (c) If the amount of a tax credit under this section exceeds the tax liability of the
             402      claimant, estate, or trust claiming the tax credit under this section for a taxable year, the amount
             403      of the tax credit exceeding the tax liability may be carried over for a period which does not
             404      exceed the next four taxable years.
             405          (8) (a) Except as provided in Subsection (8)(b), tax credits provided for under this
             406      section are in addition to any tax credits provided under the laws or rules and regulations of the
             407      United States.
             408          (b) A purchaser of one or more solar units that claims a tax credit under Section
             409      59-10-1024 for the purchase of the one or more solar units may not claim a tax credit under this
             410      section for that purchase.
             411          (9) (a) The [Utah Geological Survey] office may set standards for residential energy
             412      systems that cover the safety, reliability, efficiency, leasing, and technical feasibility of the
             413      systems to ensure that the systems eligible for the tax credit use the state's renewable and
             414      nonrenewable energy resources in an appropriate and economic manner.
             415          (b) The [Utah Geological Survey] office may set standards for residential and
             416      commercial energy systems that establish the reasonable costs of an energy system, as used in
             417      Subsections (3)(a) and (6)(b)(i), as an amount per unit of energy production.
             418          (c) A tax credit may not be taken under this section until the [Utah Geological Survey]
             419      office has certified that the energy system has been completely installed and is a viable system
             420      for saving or production of energy from renewable resources.
             421          (10) The [Utah Geological Survey] office and the commission may make rules in
             422      accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, that are necessary
             423      to implement this section.
             424          (11) (a) On or before October 1, 2012, and every five years thereafter, the Revenue and
             425      Taxation Interim Committee shall review each tax credit provided by this section and report its
             426      recommendations to the Legislative Management Committee concerning whether the credit
             427      should be continued, modified, or repealed.
             428          (b) The Revenue and Taxation Interim Committee's report under Subsection (11)(a)
             429      shall include information concerning the cost of the credit, the purpose and effectiveness of the
             430      credit, and the state's benefit from the credit.


             431          Section 8. Section 59-10-1106 is amended to read:
             432           59-10-1106. Refundable renewable energy tax credit.
             433          (1) As used in this section:
             434          (a) "Active solar system" is as defined in Section 59-10-1014 .
             435          (b) "Biomass system" is as defined in Section 59-10-1014 .
             436          (c) "Business entity" is as defined in Section 59-10-1014 .
             437          (d) "Commercial energy system" means any active solar, passive solar, geothermal
             438      electricity, direct-use geothermal, geothermal heat-pump system, wind, hydroenergy, or
             439      biomass system used to supply energy to a commercial unit or as a commercial enterprise.
             440          (e) "Commercial enterprise" means a business entity that:
             441          (i) is a claimant, estate, or trust; and
             442          (ii) has the purpose of producing electrical, mechanical, or thermal energy for sale from
             443      a commercial energy system.
             444          (f) (i) "Commercial unit" means any building or structure that a business entity that is a
             445      claimant, estate, or trust uses to transact its business.
             446          (ii) Notwithstanding Subsection (1)(f)(i):
             447          (A) in the case of an active solar system used for agricultural water pumping or a wind
             448      system, each individual energy generating device shall be a commercial unit; and
             449          (B) if an energy system is the building or structure that a business entity that is a
             450      claimant, estate, or trust uses to transact its business, a commercial unit is the complete energy
             451      system itself.
             452          (g) "Direct-use geothermal system" is as defined in Section 59-10-1014 .
             453          (h) "Geothermal electricity" is as defined in Section 59-10-1014 .
             454          (i) "Geothermal heat-pump system" is as defined in Section 59-10-1014 .
             455          (j) "Hydroenergy system" is as defined in Section 59-10-1014 .
             456          (k) "Office" means the Office of Energy Development created in Section 63M-4-401 .
             457          [(k)] (l) "Passive solar system" is as defined in Section 59-10-1014 .
             458          [(l) "Utah Geological Survey" means the Utah Geological Survey established in
             459      Section 79-3-201 .]
             460          (m) "Wind system" is as defined in Section 59-10-1014 .
             461          (2) (a) (i) A business entity that is a claimant, estate, or trust that purchases or


             462      participates in the financing of a commercial energy system situated in Utah is entitled to a
             463      refundable tax credit as provided in this Subsection (2)(a) if the commercial energy system
             464      does not use wind, geothermal electricity, or biomass equipment capable of producing a total of
             465      660 or more kilowatts of electricity and:
             466          (A) the commercial energy system supplies all or part of the energy required by
             467      commercial units owned or used by the business entity that is a claimant, estate, or trust; or
             468          (B) the business entity that is a claimant, estate, or trust sells all or part of the energy
             469      produced by the commercial energy system as a commercial enterprise.
             470          (ii) (A) A business entity that is a claimant, estate, or trust is entitled to a tax credit of
             471      up to 10% of the reasonable costs of any commercial energy system installed, including
             472      installation costs, against any tax due under this chapter for the taxable year in which the
             473      commercial energy system is completed and placed in service.
             474          (B) Notwithstanding Subsection (2)(a)(ii)(A), the total amount of the credit under this
             475      Subsection (2)(a) may not exceed $50,000 per commercial unit.
             476          (C) The credit under this Subsection (2)(a) is allowed for any commercial energy
             477      system completed and placed in service on or after January 1, 2007.
             478          (iii) A business entity that is a claimant, estate, or trust that leases a commercial energy
             479      system installed on a commercial unit is eligible for the tax credit under this Subsection (2)(a)
             480      if the lessee can confirm that the lessor irrevocably elects not to claim the credit.
             481          (iv) Only the principal recovery portion of the lease payments, which is the cost
             482      incurred by a business entity that is a claimant, estate, or trust in acquiring a commercial energy
             483      system, excluding interest charges and maintenance expenses, is eligible for the tax credit
             484      under this Subsection (2)(a).
             485          (v) A business entity that is a claimant, estate, or trust that leases a commercial energy
             486      system is eligible to use the tax credit under this Subsection (2)(a) for a period no greater than
             487      seven years from the initiation of the lease.
             488          (b) (i) A business entity that is a claimant, estate, or trust that owns a commercial
             489      energy system situated in Utah using wind, geothermal electricity, or biomass equipment
             490      capable of producing a total of 660 or more kilowatts of electricity is entitled to a refundable
             491      tax credit as provided in this section if:
             492          (A) the commercial energy system supplies all or part of the energy required by


             493      commercial units owned or used by the business entity that is a claimant, estate, or trust; or
             494          (B) the business entity that is a claimant, estate, or trust sells all or part of the energy
             495      produced by the commercial energy system as a commercial enterprise.
             496          (ii) A business entity that is a claimant, estate, or trust is entitled to a tax credit under
             497      this Subsection (2)(b) equal to the product of:
             498          (A) 0.35 cents; and
             499          (B) the kilowatt hours of electricity produced and either used or sold during the taxable
             500      year.
             501          (iii) The credit allowed by this Subsection (2)(b):
             502          (A) may be claimed for production occurring during a period of 48 months beginning
             503      with the month in which the commercial energy system is placed in service; and
             504          (B) may not be carried forward or back.
             505          (iv) A business entity that is a claimant, estate, or trust that leases a commercial energy
             506      system installed on a commercial unit is eligible for the tax credit under this section if the
             507      lessee can confirm that the lessor irrevocably elects not to claim the credit.
             508          (3) The tax credits provided for under this section are in addition to any tax credits
             509      provided under the laws or rules and regulations of the United States.
             510          (4) (a) The [Utah Geological Survey] office may set standards for commercial energy
             511      systems claiming a tax credit under Subsection (2)(a) that cover the safety, reliability,
             512      efficiency, leasing, and technical feasibility of the systems to ensure that the systems eligible
             513      for the tax credit use the state's renewable and nonrenewable energy resources in an appropriate
             514      and economic manner.
             515          (b) A tax credit may not be taken under this section until the [Utah Geological Survey]
             516      office has certified that the commercial energy system has been completely installed and is a
             517      viable system for saving or production of energy from renewable resources.
             518          (5) The [Utah Geological Survey] office and the commission may make rules in
             519      accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, that are necessary
             520      to implement this section.
             521          (6) (a) On or before October 1, 2012, and every five years thereafter, the Revenue and
             522      Taxation Interim Committee shall review each tax credit provided by this section and report its
             523      recommendations to the Legislative Management Committee concerning whether the credit


             524      should be continued, modified, or repealed.
             525          (b) The Revenue and Taxation Interim Committee's report under Subsection (6)(a)
             526      shall include information concerning the cost of the credit, the purpose and effectiveness of the
             527      credit, and the state's benefit from the credit.
             528          Section 9. Section 63H-2-101 is amended to read:
             529     
CHAPTER 2. UTAH ENERGY INFRASTRUCTURE AUTHORITY ACT

             530           63H-2-101. Title.
             531          This chapter is known as the "Utah [Generated Renewable Energy Electricity Network]
             532      Energy Infrastructure Authority Act."
             533          Section 10. Section 63H-2-102 is amended to read:
             534           63H-2-102. Definitions.
             535          As used in this chapter:
             536          (1) "Authority" means the Utah [Generated Renewable Energy Electricity Network]
             537      Energy Infrastructure Authority created in Section 63H-2-201 .
             538          (2) "Authority bond" means a bond issued by the authority in accordance with Part 4,
             539      Bonding.
             540          (3) "Board" means the board created under Section 63H-2-202 .
             541          (4) "Community" means the county, city, or town in which is located a qualifying
             542      [transmission] energy delivery project financed by an authority bond.
             543          (5) "Electric interlocal entity" [means an interlocal entity] has the same meaning as
             544      defined in Section 11-13-103 .
             545          (6) "Energy advisor" means the governor's energy advisor appointed under Section
             546      63M-4-201 .
             547          (7) "Energy delivery project" means a project that is designed to:
             548          (a) increase the capacity for the delivery of energy to a user of energy inside or outside
             549      the state; or
             550          (b) increase the capability of an existing energy delivery system or related facility to
             551      deliver energy to a user of energy inside or outside the state.
             552          [(6)] (8) "Independent state agency" is as defined in Section 63E-1-102 .
             553          [(7)] (9) "Public entity" means:
             554          (a) the United States or an agency of the United States;


             555          (b) the state or an agency of the state;
             556          (c) a political subdivision of the state or an agency of a political subdivision of the
             557      state;
             558          (d) another state or an agency of that state; or
             559          (e) a political subdivision of another state or an agency of that political subdivision.
             560          [(8)] (10) "Qualifying [transmission] energy delivery project" means a [transmission]
             561      project approved by the board in accordance with Part 3, Qualifying [Transmission] Energy
             562      Delivery Projects.
             563          [(9)] (11) "Record" means information that is:
             564          (a) inscribed on a tangible medium; or
             565          (b) (i) stored in an electronic or other medium; and
             566          (ii) retrievable in perceivable form.
             567          [(10) "Related facility" means a facility related to the effective operation of a
             568      transmission line although the facility is not directly a part of a transmission line, including:]
             569          [(a) a substation; or]
             570          [(b) an access road.]
             571          [(11) "Renewable energy source" is as defined in Section 10-19-102 .]
             572          [(12) "Transmission project" means a project that is designed to:]
             573          [(a) increase capacity for transmission of electric power or energy to an electric load:]
             574          [(i) within this state; or]
             575          [(ii) outside of the state; or]
             576          [(b) otherwise increase the capability of an existing electric transmission line or related
             577      facility to transmit electric power and energy from a renewable energy source to an electric
             578      load:]
             579          [(i) within this state; or]
             580          [(ii) outside of the state.]
             581          [(13) "Wholesale electrical cooperative" is as defined in Section 54-2-1 .]
             582          Section 11. Section 63H-2-201 is amended to read:
             583           63H-2-201. Creation of Utah Energy Infrastructure Authority.
             584          (1) There is created an independent state agency known as the "Utah [Generated
             585      Renewable Energy Electricity Network] Energy Infrastructure Authority."


             586          (2) Subject to Section 63H-2-203 , the authority may:
             587          (a) sue and be sued;
             588          (b) enter into contracts generally;
             589          (c) (i) accept financial or other assistance from a public or private source for the
             590      authority's activities, powers, and duties; and
             591          (ii) expend money received under Subsection (2)(c)(i) for [a qualifying transmission
             592      project] the purpose of building or enhancing the state's energy delivery infrastructure;
             593          (d) (i) for the purpose of studying a qualifying transmission project, borrow money or
             594      accept financial or other assistance from:
             595          (A) a public entity; or
             596          (B) any other source; and
             597          (ii) comply with a condition of a loan or assistance described in Subsection (2)(d)(i);
             598          (e) in accordance with Part 4, Bonding, issue one or more bonds to finance a qualifying
             599      [transmission] energy delivery project;
             600          (f) hire one or more employees, including:
             601          (i) a contract employee; and
             602          (ii) legal counsel;
             603          (g) enter into a partnership agreement with a business entity related to a qualifying
             604      [transmission] energy delivery project;
             605          (h) enter into an agreement with a public entity related to a qualifying [transmission]
             606      energy delivery project;
             607          (i) if none of the authority's net earnings inure to the benefit of a private entity, use
             608      money available to the authority:
             609          (i) for administrative, overhead, legal, or other operating expenses of the authority; and
             610          (ii) to pay the principal and interest on an authority bond;
             611          (j) create one or more subsidiaries to engage in an activity that the authority may
             612      engage in under this chapter;
             613          (k) transact other business related to a qualifying [transmission] energy delivery
             614      project;
             615          (l) acquire, own, lease, or sell real property or personal property related to a qualifying
             616      [transmission] energy delivery project; or


             617          (m) exercise a power provided for in this chapter.
             618          (3) Unless expressly provided in this chapter, the state is not liable for an obligation,
             619      expense, debt, or liability of the authority.
             620          Section 12. Section 63H-2-202 is amended to read:
             621           63H-2-202. Authority board.
             622          (1) There is created the Utah [Generated Renewable Energy Electricity Network]
             623      Energy Infrastructure Authority Board that consists of [seven] nine members, appointed by the
             624      governor as follows:
             625          (a) the energy advisor, who shall serve as chair of the board;
             626          [(a)] (b) one member from the Governor's Office of Economic Development;
             627          [(b)] (c) three members from a public utility or electric interlocal entity that operates
             628      electric transmission facilities within the state as follows:
             629          (i) one member selected by the governor from recommendations from an
             630      investor-owned electric corporation that operates in this state;
             631          (ii) one member selected by the governor from recommendations from a wholesale
             632      electrical cooperative, as defined in Section 54-2-1 , in the state; and
             633          (iii) one member selected by the governor from recommendations from an electric
             634      interlocal entity;
             635          [(c)] (d) the director of the School and Institutional Trust Lands Administration created
             636      in Section 53C-1-201 ;
             637          [(d) one representative of a business entity that produces a renewable energy source;
             638      and]
             639          (e) two representatives of business entities that produce energy; and
             640          [(e)] (f) one member of the general public who has experience with public finance and
             641      bonding.
             642          (2) (a) The term of a board member is four years.
             643          (b) Notwithstanding Subsection (2)(a), the governor shall, at the time of appointment
             644      or reappointment, adjust the length of terms to ensure that the terms of board members are
             645      staggered so that approximately half of the board is appointed every two years.
             646          (c) The governor may remove a member of the board for cause.
             647          (d) The governor shall fill a vacancy in the board in the same manner under this section


             648      as the appointment of the member whose vacancy is being filled.
             649          (e) An individual appointed to fill a vacancy shall serve the remaining unexpired term
             650      of the member whose vacancy the individual is filling.
             651          (f) A board member shall serve until a successor is appointed and qualified.
             652          [(3) The board member appointed under Subsection (1)(a) shall serve as chair of the
             653      board.]
             654          [(4)] (3) (a) [Four] Five members of the board [is] constitute a quorum for conducting
             655      board business.
             656          (b) A majority vote of the quorum present is required for an action to be taken by the
             657      board.
             658          [(5)] (4) (a) The board shall meet at least quarterly on a date the board sets.
             659          (b) The chair of the board or any two members of the board may call additional
             660      meetings.
             661          [(6)] (5) A member may not receive compensation or benefits for the member's service,
             662      but may receive per diem and travel expenses in accordance with:
             663          (a) Section 63A-3-106 ;
             664          (b) Section 63A-3-107 ; and
             665          (c) rules made by the Division of Finance pursuant to Sections 63A-3-106 and
             666      63A-3-107 .
             667          Section 13. Section 63H-2-204 is amended to read:
             668           63H-2-204. Dissolution of authority.
             669          (1) Subject to the other provisions of this section, the board may dissolve the authority:
             670          (a) if the board determines that the authority can no longer comply with the
             671      requirements of this chapter; and
             672          (b) by a vote of at least five members of the board.
             673          (2) The authority may not be dissolved if the authority has any of the following:
             674          (a) an outstanding bonded indebtedness;
             675          (b) an unpaid loan, indebtedness, or advance; or
             676          (c) a legally binding contractual obligation with a person other than the state.
             677          (3) Upon the dissolution of the authority:
             678          (a) the Governor's Office of Economic Development shall publish a notice of


             679      dissolution:
             680          (i) in a newspaper of general circulation in each county in which a qualifying
             681      [transmission] energy delivery project is located; and
             682          (ii) electronically, in accordance with Section 45-1-101 ;
             683          (b) the authority shall deposit its records with the state auditor, to be retained for the
             684      time period determined by the state auditor; and
             685          (c) the assets of the authority shall revert to the state.
             686          (4) The authority shall pay the expenses of dissolution and winding up the affairs of the
             687      authority.
             688          (5) If a dissolution under this section is part of a privatization of the authority, the
             689      dissolution is subject to Title 63E, Chapter 1, Part 4, Privatization of Independent Entities.
             690          Section 14. Section 63H-2-301 is amended to read:
             691     
Part 3. Qualifying Energy Delivery Projects

             692           63H-2-301. Prioritization of energy delivery projects.
             693          (1) The board shall review the location and availability of [renewable] energy sources
             694      [serving electric loads] in the state.
             695          (2) The board shall:
             696          (a) determine if there is adequate [transmission] infrastructure and capacity to bring
             697      [renewable] energy sources to market;
             698          (b) prioritize [transmission] projects on the basis of:
             699          (i) location;
             700          (ii) supporting [potential renewable] responsible energy [source] development;
             701          (iii) feasibility of development; and
             702          (iv) economic development factors; and
             703          (c) provide available funding to develop energy resource plans to provide for
             704      [connecting to transmission lines a renewable] energy [source] infrastructure development,
             705      including development of an integrated resource plan.
             706          Section 15. Section 63H-2-302 is amended to read:
             707           63H-2-302. Approval of qualifying energy delivery project.
             708          (1) To approve a qualifying [transmission] energy delivery project, the board shall
             709      determine that the [transmission] project:


             710          (a) contributes to the economy of the state and the one or more communities where the
             711      [transmission] project is located;
             712          (b) is strategically situated to maximize connections to [a renewable] an energy source
             713      project located in the state that is:
             714          (i) existing;
             715          (ii) under construction;
             716          (iii) planned; or
             717          (iv) foreseeable;
             718          (c) is supported by a business case for providing the revenue necessary to:
             719          (i) service an authority bond issued to finance the [transmission] project; and
             720          (ii) finance the construction and operation of a [transmission] project;
             721          (d) is supported by a [transmission] project plan related to:
             722          (i) engineering;
             723          (ii) environmental issues;
             724          (iii) energy production;
             725          (iv) load or other capacity; and
             726          (v) any other issue related to the building and operation of [a transmission line; and]
             727      energy delivery infrastructure;
             728          (e) complies with the regulations of the following regarding the building of [a
             729      transmission line or connection] energy delivery infrastructure:
             730          (i) the Federal Energy Regulatory Commission;
             731          (ii) the North American Electric Reliability Council; and
             732          (iii) the Public Service Commission of Utah[.]; and
             733          (f) promotes responsible energy development.
             734          (2) This chapter may not be used to compel interconnection to or use of a transmission
             735      or interconnection line or facility that belongs to another person.
             736          Section 16. Section 63H-2-401 is amended to read:
             737           63H-2-401. Resolution authorizing issuance of authority bond -- Characteristics
             738      of bond.
             739          (1) (a) The authority may issue a bond subject to the requirements of this part to
             740      finance, in whole or in part, a qualifying [transmission] energy delivery project.


             741          (b) The authority may not issue a bond under this part unless before the issuance of the
             742      bond, the board adopts a resolution authorizing the issuance of the bond.
             743          (2) (a) If provided in a resolution authorizing the issuance of an authority bond or in
             744      the trust indenture under which the authority bond is issued, an authority bond may be:
             745          (i) issued in one or more series; and
             746          (ii) sold:
             747          (A) at a public or private sale; and
             748          (B) in the manner provided in the resolution or indenture.
             749          (b) An authority bond shall:
             750          (i) bear the date provided in the resolution authorizing the issuance of the authority
             751      bond or the trust indenture under which the authority bond is issued;
             752          (ii) be payable at the time provided in the resolution authorizing the issuance of the
             753      authority bond or the trust indenture under which the authority bond is issued;
             754          (iii) bear interest at the rate provided in the resolution authorizing the issuance of the
             755      authority bond or the trust indenture under which the authority bond is issued;
             756          (iv) be in the denomination and in the form provided in the resolution authorizing the
             757      issuance of the authority bond or the trust indenture under which the authority bond is issued;
             758          (v) carry the conversion or registration privileges provided in the resolution authorizing
             759      the issuance of the authority bond or the trust indenture under which the authority bond is
             760      issued;
             761          (vi) have the rank or priority as provided in the resolution authorizing the issuance of
             762      the authority bond or the trust indenture under which the authority bond is issued;
             763          (vii) be executed in the manner as provided in the resolution authorizing the issuance
             764      of the authority bond or the trust indenture under which the authority bond is issued;
             765          (viii) be subject to the terms of redemption or tender, with or without premium, as
             766      provided in the resolution authorizing the issuance of the authority bond or the trust indenture
             767      under which the authority bond is issued;
             768          (ix) be payable in the medium of payment and at the place as provided in the resolution
             769      authorizing the issuance of the authority bond or the trust indenture under which the authority
             770      bond is issued; and
             771          (x) have other characteristics as provided in the resolution authorizing the issuance of


             772      the authority bond or the trust indenture under which the authority bond is issued.
             773          Section 17. Section 63H-2-402 is amended to read:
             774           63H-2-402. Sources from which an authority bond may be made payable --
             775      Authority powers regarding authority bond.
             776          (1) The principal and interest on an authority bond may be made payable from:
             777          (a) the income and revenues related to a qualifying [transmission] energy delivery
             778      project financed with the proceeds of the authority bond;
             779          (b) the income and revenues from a public or private source under Subsection
             780      63H-2-201 (2)(c);
             781          (c) a contribution, loan, grant, or other financial assistance from a public entity or other
             782      source under Subsection 63H-2-201 (2)(d);
             783          (d) authority revenues generally; or
             784          (e) money derived from a combination of the methods listed in Subsections (1)(a)
             785      through (d).
             786          (2) In connection with the issuance of an authority bond, the authority may:
             787          (a) pledge all or any part of the authority's gross or net revenues to which the authority:
             788          (i) has a right that exists at issuance of the authority bond; or
             789          (ii) may have a right that comes into existence after issuance of the authority bond; and
             790          (b) even if a covenant or action is not specifically enumerated in this chapter, make a
             791      covenant or take an action that:
             792          (i) may be necessary, convenient, or desirable to secure the authority bond; or
             793          (ii) except as otherwise provided in this chapter, will tend to make the authority bond
             794      more marketable.
             795          (3) A member of the board or other person executing an authority bond is not liable
             796      personally on the authority bond.
             797          (4) (a) An authority bond:
             798          (i) is not a general obligation or liability of the state or any of the state's political
             799      subdivisions; and
             800          (ii) does not constitute a charge against the general credit or taxing powers of the state
             801      or any of the state's political subdivisions.
             802          (b) An authority bond is not payable out of money or properties other than those of the


             803      authority pledged for the payment of the bond.
             804          (c) A community, the state, or a political subdivision of the state may not be liable on
             805      an authority bond.
             806          (d) An authority bond does not constitute indebtedness within the meaning of a
             807      constitutional or statutory debt limitation.
             808          (5) An authority bond is fully negotiable.
             809          (6) An authority bond is:
             810          (a) issued for an essential public and governmental purpose; and
             811          (b) together with interest on the authority bond and income from the authority bond,
             812      exempt from state taxes except the corporate franchise tax.
             813          (7) Nothing in this section may be construed to limit the right of an obligee to pursue a
             814      remedy for the enforcement of a pledge or lien given under this part by the authority on the
             815      authority's rents, fees, grants, properties, or revenues.
             816          Section 18. Section 63H-2-404 is amended to read:
             817           63H-2-404. Obligee rights -- Board may confer other rights.
             818          (1) In addition to a right that is conferred on an obligee of an authority bond under this
             819      chapter and subject to contractual restrictions binding on the obligee, an obligee may:
             820          (a) by mandamus, suit, action, or other proceeding:
             821          (i) compel the authority and its board, officers, agents, or employees to perform every
             822      term, provision, and covenant contained in a contract of the authority with or for the benefit of
             823      the obligee; and
             824          (ii) require the authority to carry out the covenants and agreements of the authority and
             825      to fulfill the duties imposed on the authority by this part; and
             826          (b) by suit, action, or proceeding in equity, enjoin an act or things that may be unlawful
             827      or violate the rights of the obligee.
             828          (2) (a) In a resolution authorizing the issuance of an authority bond or in a trust
             829      indenture, mortgage, lease, or other contract, the board may confer upon an obligee holding or
             830      representing a specified amount in an authority bond, a right described in Subsection (2)(b):
             831          (i) to accrue upon the happening of an event or default prescribed in the resolution,
             832      indenture, mortgage, lease, or other contract; and
             833          (ii) to be exercised by suit, action, or proceeding in a court of competent jurisdiction.


             834          (b) (i) A right that the board may confer under Subsection (2)(a) is a right to:
             835          (A) cause possession of all or part of a qualifying [transmission] energy delivery
             836      project to be surrendered to an obligee;
             837          (B) obtain the appointment of a receiver of all or part of:
             838          (I) a qualifying [transmission] energy delivery project; and
             839          (II) the rents and profits from a qualifying [transmission] energy delivery project; and
             840          (C) require the authority, its board, and its employees to account as if the authority,
             841      board, and employees were the trustees of an express trust.
             842          (ii) If a receiver is appointed through the exercise of a right granted under Subsection
             843      (2)(b)(i)(B), the receiver:
             844          (A) may:
             845          (I) enter and take possession of a qualifying [transmission] energy delivery project or
             846      any part of the qualifying [transmission] energy delivery project;
             847          (II) operate and maintain the qualifying [transmission] energy delivery project; and
             848          (III) collect and receive the fees, rents, revenues, or other charges arising from the
             849      qualifying [transmission] energy delivery project after the receiver's appointment; and
             850          (B) shall:
             851          (I) keep money collected as receiver for the authority in one or more separate accounts;
             852      and
             853          (II) apply the money collected as receiver pursuant to the authority obligations as the
             854      court directs.
             855          Section 19. Section 63M-4-102 is amended to read:
             856           63M-4-102. Definitions.
             857          As used in this chapter[, "state]:
             858          (1) "Energy advisor" means the governor's energy advisor appointed under Section
             859      63M-4-401 .
             860          (2) "Office" means the Office of Energy Development created in Section 63M-4-401 .
             861          (3) "State agency" means an executive branch:
             862          [(1)] (a) department;
             863          [(2)] (b) agency;
             864          [(3)] (c) board;


             865          [(4)] (d) commission;
             866          [(5)] (e) division; or
             867          [(6)] (f) state educational institution.
             868          Section 20. Section 63M-4-203 is amended to read:
             869           63M-4-203. Reports.
             870          (1) The governor's energy advisor shall report annually to:
             871          (a) the governor; and
             872          (b) the Natural Resources, Agriculture, and Environment Interim Committee[; and].
             873          [(c) the Public Utilities and Technology Interim Committee.]
             874          (2) The report required in Subsection (1) shall:
             875          (a) summarize the status and development of the state's energy resources;
             876          (b) address the governor's energy advisor's activities under this part; and
             877          (c) recommend any energy-related executive or legislative action the governor's energy
             878      advisor considers beneficial to the state, including updates to the state energy policy under
             879      Section 63M-4-301 .
             880          Section 21. Section 63M-4-401 is amended to read:
             881           63M-4-401. Creation of Office of Energy Development -- Director -- Purpose --
             882      Rulemaking regarding confidential information.
             883          [(1) As used in this section, "office" means the Office of Energy Development created
             884      in Subsection (2).]
             885          [(2)] (1) There is created an Office of Energy Development.
             886          [(3)] (2) (a) The governor's energy advisor shall appoint a director of the office.
             887          (b) The director shall report to the governor's energy advisor and may appoint staff as
             888      funding within existing budgets allows.
             889          (c) The office may consolidate energy staff and functions existing in the State Energy
             890      Program.
             891          [(4)] (3) The [purpose] purposes of the office [is] are to:
             892          (a) serve as the primary resource for advancing energy development in the state; and
             893          (b) implement:
             894          [(a)] (i) the state energy policy under Section 63M-4-301 ; and
             895          [(b)] (ii) the governor's energy goals and objectives.


             896          [(5)] (4) By following the procedures and requirements of Title 63J, Chapter 5, Federal
             897      Funds Procedures Act, the office may:
             898          (a) seek federal grants or loans;
             899          (b) seek to participate in federal programs; and
             900          (c) in accordance with applicable federal program guidelines, administer federally
             901      funded state energy programs.
             902          [(6)] (5) (a) For purposes of administering this section, the office may make rules, by
             903      following the procedures and requirements of Title 63G, Chapter 3, Utah Administrative
             904      Rulemaking Act, to maintain as confidential, and not as a public record, information that the
             905      office receives from any source.
             906          (b) The office shall maintain information the office receives from any source at the
             907      level of confidentiality assigned by the source.




Legislative Review Note
    as of 2-2-12 12:41 PM


Office of Legislative Research and General Counsel


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