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S.B. 94 Enrolled

             1     

ELECTRIC POWER FACILITIES AMENDMENTS

             2     
2012 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Curtis S. Bramble

             5     
House Sponsor: Bill Wright

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill enacts language related to an interlocal entity that provides replacement project
             10      capacity and the Electric Power Facilities Act.
             11      Highlighted Provisions:
             12          This bill:
             13          .    defines terms;
             14          .    amends provisions in the Interlocal Cooperation Act that govern a project entity;
             15          .    excludes certain facilities that provide replacement project capacity from the
             16      certificate of public convenience and necessity requirement;
             17          .    describes the scope of the Electric Power Facilities Act;
             18          .    describes a person's ownership or use of works or facilities; and
             19          .    makes technical corrections.
             20      Money Appropriated in this Bill:
             21          None
             22      Other Special Clauses:
             23          None
             24      Utah Code Sections Affected:
             25      AMENDS:
             26          11-13-103, as last amended by Laws of Utah 2008, Chapter 250
             27          11-13-301, as last amended by Laws of Utah 2003, Chapter 21
             28          11-13-304, as renumbered and amended by Laws of Utah 2002, Chapter 286
             29          54-9-102, as renumbered and amended by Laws of Utah 2002, Chapter 286


             30      ENACTS:
             31          54-9-108, Utah Code Annotated 1953
             32     
             33      Be it enacted by the Legislature of the state of Utah:
             34          Section 1. Section 11-13-103 is amended to read:
             35           11-13-103. Definitions.
             36          As used in this chapter:
             37          (1) (a) "Additional project capacity" means electric generating capacity provided by a
             38      generating unit that first produces electricity on or after May 6, 2002, and that is constructed or
             39      installed at or adjacent to the site of a project that first produced electricity before May 6, 2002,
             40      regardless of whether:
             41          [(a)] (i) the owners of the new generating unit are the same as or different from the
             42      owner of the project; and
             43          [(b)] (ii) the purchasers of electricity from the new generating unit are the same as or
             44      different from the purchasers of electricity from the project.
             45          (b) "Additional project capacity" does not mean or include replacement project
             46      capacity.
             47          (2) "Board" means the Permanent Community Impact Fund Board created by Section
             48      9-4-304 , and its successors.
             49          (3) "Candidate" means one or more of:
             50          (a) the state;
             51          (b) a county, municipality, school district, local district, special service district, or other
             52      political subdivision of the state; and
             53          (c) a prosecution district.
             54          (4) "Commercial project entity" means a project entity, defined in Subsection (12),
             55      that:
             56          (a) has no taxing authority; and
             57          (b) is not supported in whole or in part by and does not expend or disburse tax


             58      revenues.
             59          (5) "Direct impacts" means an increase in the need for public facilities or services that
             60      is attributable to the project or facilities providing additional project capacity, except impacts
             61      resulting from the construction or operation of a facility that is:
             62          (a) owned by an owner other than the owner of the project or of the facilities providing
             63      additional project capacity; and
             64          (b) used to furnish fuel, construction, or operation materials for use in the project.
             65          (6) "Electric interlocal entity" means an interlocal entity described in Subsection
             66      11-13-203 (3).
             67          (7) "Energy services interlocal entity" means an interlocal entity that is described in
             68      Subsection 11-13-203 (4).
             69          (8) (a) "Estimated electric requirements," when used with respect to a qualified energy
             70      services interlocal entity, includes any of the following that meets the requirements of
             71      Subsection (8)(b):
             72          (i) generation capacity;
             73          (ii) generation output; or
             74          (iii) an electric energy production facility.
             75          (b) An item listed in Subsection (8)(a) is included in "estimated electric requirements"
             76      if it is needed by the qualified energy services interlocal entity to perform the qualified energy
             77      services interlocal entity's contractual or legal obligations to any of its members.
             78          (9) "Interlocal entity" means:
             79          (a) a Utah interlocal entity, an electric interlocal entity, or an energy services interlocal
             80      entity; or
             81          (b) a separate legal or administrative entity created under Section 11-13-205 .
             82          (10) "Out-of-state public agency" means a public agency as defined in Subsection
             83      (13)(c), (d), or (e).
             84          (11) (a) "Project":
             85          (i) means an electric generation and transmission facility owned by a Utah interlocal


             86      entity or an electric interlocal entity; and
             87          (ii) includes fuel or fuel transportation facilities and water facilities owned by that Utah
             88      interlocal entity or electric interlocal entity and required for the generation and transmission
             89      facility.
             90          (b) "Project" includes a project entity's ownership interest in:
             91          (i) facilities that provide additional project capacity; [and]
             92          (ii) facilities that provide replacement project capacity; and
             93          [(ii)] (iii) additional generating, transmission, fuel, fuel transportation, water, or other
             94      facilities added to a project.
             95          (12) "Project entity" means a Utah interlocal entity or an electric interlocal entity that
             96      owns a project.
             97          (13) "Public agency" means:
             98          (a) a city, town, county, school district, local district, special service district, or other
             99      political subdivision of the state;
             100          (b) the state or any department, division, or agency of the state;
             101          (c) any agency of the United States;
             102          (d) any political subdivision or agency of another state or the District of Columbia
             103      including any interlocal cooperation or joint powers agency formed under the authority of the
             104      law of the other state or the District of Columbia; and
             105          (e) any Indian tribe, band, nation, or other organized group or community which is
             106      recognized as eligible for the special programs and services provided by the United States to
             107      Indians because of their status as Indians.
             108          (14) "Qualified energy services interlocal entity" means an energy services interlocal
             109      entity that at the time that the energy services interlocal entity acquires its interest in facilities
             110      providing additional project capacity has at least five members that are Utah public agencies.
             111          (15) "Replacement project capacity" means electric generating capacity or transmission
             112      capacity that:
             113          (a) replaces all or a portion of the existing electric generating or transmission capacity


             114      of a project; and
             115          (b) is provided by a facility that is constructed, reconstructed, converted, repowered, or
             116      installed in a location adjacent to or in proximity to or interconnected with the site of a project,
             117      regardless of whether the capacity replacing existing capacity is less than or exceeds the
             118      generating or transmission capacity of the project prior to installation of the capacity replacing
             119      existing capacity.
             120          [(15)] (16) "Utah interlocal entity":
             121          (a) means an interlocal entity described in Subsection 11-13-203 (2); and
             122          (b) includes a separate legal or administrative entity created under Laws of Utah 1977,
             123      Chapter 47, Section 3, as amended.
             124          [(16)] (17) "Utah public agency" means a public agency under Subsection (13)(a) or
             125      (b).
             126          Section 2. Section 11-13-301 is amended to read:
             127           11-13-301. Project entity and generation output requirements.
             128          (1) Each project entity:
             129          (a) shall:
             130          [(a)] (i) except for construction of facilities to provide replacement project capacity,
             131      before undertaking the construction of a project [or] and before undertaking the construction of
             132      facilities to provide additional project capacity, offer to sell or make available at least 50% of
             133      the generation output of or electric energy produced by the project or additional project
             134      capacity, respectively;
             135          [(b)] (ii) establish rules and procedures for an offer under Subsection (1)(a)(i) that
             136      provide at least 60 days for a prospective power purchaser to accept the offer before the offer is
             137      considered rejected; and
             138          [(c)] (iii) make each offer under Subsection (1)(a)(i):
             139          [(i)] (A) under a long-term arrangement that may be an undivided ownership interest, a
             140      participation interest, a power sales agreement, or otherwise; and
             141          [(ii)] (B) to one or more power purchasers in the state that supply electric energy at


             142      wholesale or retail[.]; and
             143          (b) may undertake construction of facilities to provide replacement project capacity for
             144      its project.
             145          (2) (a) The generation output or electric energy production available to power
             146      purchasers in the state from a project shall be at least 5% of the total generation output or
             147      electric energy production of the project.
             148          (b) (i) Subject to Subsection (2)(b)(ii)(B), at least a majority of the generation capacity,
             149      generation output, or electric energy production facilities providing additional project capacity
             150      shall be:
             151          (A) made available as needed to meet the estimated electric requirements of entities or
             152      consumers within the state; and
             153          (B) owned, purchased, or consumed by entities or consumers within the state.
             154          (ii) (A) As used in this Subsection (2)(b)(ii), "default provision" means a provision
             155      authorizing a nondefaulting party to succeed to or require the disposition of the rights and
             156      interests of a defaulting party.
             157          (B) The requirements of Subsection (2)(b)(i) do not apply to the extent that those
             158      requirements are not met due to the operation of a default provision in an agreement providing
             159      for ownership or other interests in facilities providing additional project capacity.
             160          Section 3. Section 11-13-304 is amended to read:
             161           11-13-304. Certificate of public convenience and necessity required -- Exceptions.
             162          (1) Before proceeding with the construction of any electrical generating plant or
             163      transmission line, each interlocal entity and each out-of-state public agency shall first obtain
             164      from the public service commission a certificate, after hearing, that public convenience and
             165      necessity requires such construction and in addition that such construction will in no way
             166      impair the public convenience and necessity of electrical consumers of the state of Utah at the
             167      present time or in the future.
             168          (2) The requirement to obtain a certificate of public convenience and necessity applies
             169      to each project initiated after the section's effective date but does not apply to:


             170          (a) a project for which a feasibility study was initiated prior to the effective date;
             171          (b) any facilities providing additional project capacity; [or]
             172          (c) any facilities providing replacement project capacity; or
             173          [(c)] (d) transmission lines required for the delivery of electricity from a project
             174      described in Subsection (2)(a) or facilities providing additional project capacity or replacement
             175      project capacity within the corridor of a transmission line, with reasonable deviation, of a
             176      project producing as of April 21, 1987.
             177          Section 4. Section 54-9-102 is amended to read:
             178           54-9-102. Definitions.
             179          As used in this chapter:
             180          (1) "Common facilities" means all works and facilities:
             181          (a) owned or used by two or more public power entities or power utilities; and
             182          (b) necessary to the generation, transmission, or distribution of electric power and
             183      energy.
             184          (2) "Interlocal entity" has the same meaning as provided in Section 11-13-103 .
             185          (3) "Power utility":
             186          (a) means a public agency, as defined in Section 11-13-103 , or other person engaged in
             187      generating, transmitting, distributing, or marketing electric power and energy; and
             188          (b) does not include a public power entity.
             189          (4) "Public power entity" means:
             190          (a) a city or town that owns a system for the generation, transmission, or distribution of
             191      electric power and energy for public or private use; and
             192          (b) an interlocal entity.
             193          Section 5. Section 54-9-108 is enacted to read:
             194          54-9-108. Scope -- Ownership or use of works or facilities.
             195          (1) Nothing in this chapter may be construed as imposing on an interlocal entity, as
             196      defined in Section 11-13-101 , created on or before January 1, 1981, under Laws of Utah 1977,
             197      Chapter 47, Section 3, as amended, or in an agreement to which an interlocal entity is a party,


             198      any duty, requirement, or restriction other than those imposed by Title 11, Chapter 13,
             199      Interlocal Cooperation Act.
             200          (2) For purposes of this chapter, a person does not own or use works or facilities if the
             201      person is a party to a power sales contract to purchase output generated by, the capacity of, or
             202      an entitlement in the works or facilities.


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