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First Substitute S.B. 275

Representative Jack R. Draxler proposes the following substitute bill:


             1     
ENERGY AMENDMENTS

             2     
2013 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: J. Stuart Adams

             5     
House Sponsor: Jack R. Draxler

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill enacts provisions relating to facilitating the conversion to alternative fuel
             10      vehicles and the provision of facilities for alternative fuel vehicles.
             11      Highlighted Provisions:
             12          This bill:
             13          .    establishes the composition of a governing body of an interlocal entity created to
             14      facilitate conversion to alternative fuel vehicles or to facilitate the construction,
             15      operation, and maintenance of facilities for alternative fuel vehicles;
             16          .    directs the Public Service Commission to initiate and conduct proceedings to
             17      explore options and opportunities for advancing and promoting measures designed
             18      to result in cleaner air in the state;
             19          .    provides for a cost recovery mechanism for a gas corporation that pays for natural
             20      gas fueling stations and related facilities; and
             21          .    provides for the repeal of certain language.
             22      Money Appropriated in this Bill:
             23          None
             24      Other Special Clauses:
             25          This bill provides an immediate effective date.


             26      Utah Code Sections Affected:
             27      AMENDS:
             28          63I-1-254, as renumbered and amended by Laws of Utah 2008, Chapter 382
             29      ENACTS:
             30          11-13-224, Utah Code Annotated 1953
             31          54-1-13, Utah Code Annotated 1953
             32          54-4-13.4, Utah Code Annotated 1953
             33     
             34      Be it enacted by the Legislature of the state of Utah:
             35          Section 1. Section 11-13-224 is enacted to read:
             36          11-13-224. Governing body requirements for Utah interlocal entity for alternative
             37      fuel vehicles and facilities -- Contributing toward funding for facilities.
             38          (1) As used in this section, "commission" means the Public Service Commission of
             39      Utah, established in Section 54-1-1 .
             40          (2) The governing body of a Utah interlocal entity created to facilitate the conversion to
             41      alternative fuel vehicles or to facilitate the construction, operation, and maintenance of
             42      facilities for alternative fuel vehicles, or both, shall consist of:
             43          (a) an individual from the executive branch of state government, appointed by the
             44      governor;
             45          (b) a member of the Senate, appointed by the president of the Senate;
             46          (c) a member of the House of Representatives, appointed by the speaker of the House
             47      of Representatives;
             48          (d) an individual from the Utah Association of Counties, appointed by the president of
             49      the Senate;
             50          (e) an individual from the Utah League of Cities and Towns, appointed by the speaker
             51      of the House of Representatives;
             52          (f) an individual employed by a school district in the state, appointed by the governor;
             53          (g) an individual appointed by the public transit district under Title 17B, Chapter 2a,
             54      Part 8, Public Transit District Act, with the largest budget of all public transit districts in the
             55      state;
             56          (h) an individual employed by a gas corporation in the state, appointed by the


             57      governor; and
             58          (i) a representative of the Utah Petroleum Marketers and Retailers Association,
             59      appointed by the governor.
             60          (3) A Utah interlocal entity described in Subsection (2):
             61          (a) may contribute toward the funding required for the construction, operation, and
             62      maintenance of facilities for alternative fuel vehicles that are used by or benefit the interlocal
             63      entity; and
             64          (b) shall participate with the commission in proceedings the commission conducts
             65      under Section 54-1-13 .
             66          Section 2. Section 54-1-13 is enacted to read:
             67          54-1-13. Commission exploration of cleaner air options.
             68          (1) The commission shall immediately initiate and conduct proceedings to explore and
             69      develop options and opportunities for advancing and promoting measures designed to result in
             70      cleaner air in the state through the enhanced use of alternative fuel vehicles, including:
             71          (a) consideration of the role that gas corporations should play in the enhancement and
             72      expansion of the infrastructure and maintenance and other facilities for alternative fuel
             73      vehicles;
             74          (b) the potential funding options available to pay for the enhancement and expansion of
             75      infrastructure and facilities for alternative fuel vehicles;
             76          (c) the role local government, including any local government entity established for the
             77      purpose of facilitating conversion to alternative fuel vehicles and of promoting the
             78      enhancement and expansion of the infrastructure and facilities for those vehicles, can or should
             79      play; and
             80          (d) the most effective ways to overcome any obstacles to converting to alternative fuel
             81      vehicles and to enhancing and expanding the infrastructure and facilities for alternative fuel
             82      vehicles.
             83          (2) As soon as an interlocal entity described in Subsection 11-13-224 (2) is created, the
             84      commission shall seek, encourage, and accept the interlocal entity's participation in the
             85      commission's proceedings under this section.
             86          (3) By September 30, 2013, the commission and the interlocal entity described in
             87      Subsection 11-13-224 (2) shall report to the governor, the Legislative Management Committee,


             88      and the Public Utilities and Technology Interim Committee:
             89          (a) the results of the commission proceedings under Subsection (1); and
             90          (b) recommendations for specific actions to implement mechanisms to provide funding
             91      for the enhancement and expansion of the infrastructure and facilities for alternative fuel
             92      vehicles.
             93          Section 3. Section 54-4-13.4 is enacted to read:
             94          54-4-13.4. Natural gas fueling stations and facilities -- Recovery of expenditures
             95      for stations and facilities.
             96          (1) The commission shall find that a gas corporation's expenditures for the
             97      construction, operation, and maintenance of natural gas fueling stations and appurtenant natural
             98      gas facilities for use by the state, political subdivisions of the state, and the public are in the
             99      public interest and are just and reasonable, if:
             100          (a) the gas corporation's expenditures for the fueling stations and appurtenant facilities:
             101          (i) are prudently incurred; and
             102          (ii) do not exceed $5,000,000 in any calendar year, unless the commission determines
             103      after the first year, through the general rate making process, that a higher amount is appropriate
             104      and in the best interest of the public;
             105          (b) the gas corporation shows that the estimated annual incremental increase in revenue
             106      related to the stations and facilities exceeds 50% of the annual revenue requirement of the
             107      stations and facilities; and
             108          (c) the stations and facilities are in service and are being used and are useful.
             109          (2) (a) A gas corporation may seek the recovery of expenditures under Subsection (1)
             110      through a mechanism designed to track and collect the expenditures between general rate cases.
             111          (b) (i) The commission shall allow a gas corporation to recover, through an incremental
             112      surcharge to all of its rate classes, expenditures that the gas corporation incurs that are directly
             113      related to the construction, operation, and maintenance of the stations and facilities described
             114      in Subsection (1), reduced by revenues the gas corporation receives during the same time
             115      period directly attributable to the stations and facilities.
             116          (ii) The commission shall assign a surcharge under Subsection (2)(b)(i) to each rate
             117      class based upon the pro rata share, approved by the commission, of the tariff revenue ordered
             118      in the gas corporation's most recent general rate case.


             119          (iii) A gas corporation may file an application to adjust a surcharge under Subsection
             120      (2)(b)(i) as frequently as semiannually.
             121          (iv) At the gas corporation's next general rate case, the commission shall include in
             122      base rates all expenditures that the gas corporation prudently incurs associated with a surcharge
             123      under Subsection (2)(b)(i).
             124          Section 4. Section 63I-1-254 is amended to read:
             125           63I-1-254. Repeal dates, Title 54.
             126          The language of Subsection 54-4-13.4(1)(a)(ii) after "do not exceed $5,000,000 in any
             127      calendar year" is repealed July 1, 2018.
             128          Section 5. Effective date.
             129          If approved by two-thirds of all the members elected to each house, this bill takes effect
             130      upon approval by the governor, or the day following the constitutional time limit of Utah
             131      Constitution Article VII, Section 8, without the governor's signature, or in the case of a veto,
             132      the date of veto override.


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