Second Substitute H.B. 44

This document includes Senate 2nd Reading Floor Amendments incorporated into the bill on Tue, Mar 11, 2014 at 6:51 PM by lpoole. -->

Representative Stephen G. Handy proposes the following substitute bill:


             1     
INTERSTATE ELECTRIC TRANSMISSION LINES

             2     
2014 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Stephen G. Handy

             5     
Senate Sponsor: Curtis S. Bramble

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill enacts language related to a conditional use application for a merchant electric
             10      transmission line.
             11      Highlighted Provisions:
             12          This bill:
             13          .    defines terms; and
             14          .    requires an applicant for a merchant electric transmission line to include a certificate
             15      of in-state need from the Office of Energy Development with the land use
             16      application.
             17      Money Appropriated in this Bill:
             18          None
             19      Other Special Clauses:
             20          None
             21      Utah Code Sections Affected:
             22      AMENDS:
             23           17-27a-506 , as last amended by Laws of Utah 2005, Chapter 245 and renumbered and
             24      amended by Laws of Utah 2005, Chapter 254
             25     


             26      Be it enacted by the Legislature of the state of Utah:
             27          Section 1. Section 17-27a-506 is amended to read:
             28           17-27a-506. Conditional uses -- Merchant electric transmission line.
             29          (1) A land use ordinance may include conditional uses and provisions for conditional
             30      uses that require compliance with standards set forth in an applicable ordinance.
             31          (2) (a) A conditional use shall be approved if reasonable conditions are proposed, or can
             32      be imposed, to mitigate the reasonably anticipated detrimental effects of the proposed use in
             33      accordance with applicable standards.
             34          (b) If the reasonably anticipated detrimental effects of a proposed conditional use
             35      cannot be substantially mitigated by the proposal or the imposition of reasonable conditions to
             36      achieve compliance with applicable standards, the conditional use may be denied.
             37          (3) (a) As used in this Subsection (3):
             38          (i) "Certificate of in-state need" means a certificate issued by the office in accordance
             39      with this Subsection (3) certifying that a proposed merchant electric transmission line can
             40      fulfill present and future in-state electric power needs as demonstrated by an expression of
             41      need.
             42          (ii) "In-state merchant generator" or "in-state merchant generation" means an electric
             43      power provider that generates power in Utah and does not provide service to retail customers
             44      within the boundaries of Utah.
             45          (iii) "Merchant electric transmission line" means a transmission line that does not
             46      provide electricity to retail customers within the boundaries of Utah.
             47          (iv) "Expression of need" means a document prepared and submitted by an in-state
             48      merchant generator that describes or otherwise documents:
             49          (A) present and future transmission needs from a proposed merchant electric
             50      transmission line;
             51          (B) the state and local economic impacts resulting from the use of the transmission in
             52      the in-state merchant generator project; and
             53          (C) that the in-state merchant generator has received one or more required permits or
             54      other approval condition required by a state or local authority for an in-state merchant
             55      generation project.
             56          (v) "Office" means the Office of Energy Development established in Section


             57      63M-4-401 .
             58          (b) A county may not consider a land use application for a conditional use for a
             59      proposed merchant electric transmission line unless the person filing the application includes a
             60      certificate of in-state need for that merchant electric transmission line.
             61          (c) To receive a certificate of in-state need, the person described in Subsection (3)(b)
             62      shall request a certificate of in-state need from the office by filing a written request that
             63      describes the proposed merchant electric transmission line and includes the name and contact
             64      information of the person.
             65          (d) (i) If the office receives a request described in Subsection (3)(c), the office shall:
             66          (A) publish notice on the Utah Public Notice Website created under Section 63F-1-701
             67      that the office has received a request for a certificate of in-state need;
             68          (B) identify the requesting person and briefly describe the proposed merchant electric
             69      transmission line; and
             70          (C) include contact information and provide the deadline date for submission as
             71      described in Subsection (3)(e) for an in-state merchant generator to submit an expression of
             72      need for the merchant electric transmission line.
             73          (ii) An in-state merchant generator that submits an expression of need under
             74      Subsection (3)(d)(i)(C) shall:
             75          (A) submit the expression of need no later than 30 days after the public notice is
             76      published in accordance with Subsection (3)(d)(i)(A); and
             77          (B) include a description of the in-state merchant generator's project or proposed
             78      project.
             79          (e) No later than 30 days after the expiration of the 30-day period described in
             80      Subsection (3)(d)(ii)(A) the office shall:
             81          (i) review all expressions of need submitted under Subsection (3)(d)(i)(C); and
             82          (ii) calculate the present and future needs of each in-state merchant generator based on
             83      each submitted expression of need.
             84          (f) A person described in Subsection (3)(c) shall no later than 180 days after notice is
             85      published in accordance with Subsection (3)(d)(i)(A) submit a copy of each signed
             86      transmission agreement for in-state merchant generation entered into with the person.
             87          (g) No later than 15 days after the expiration of the 180-day period described in


             88      Subsection (3)(f), the office shall determine whether the person described in Subsection (3)(c)
             89      has demonstrated in the submitted agreements for in-state merchant generation that the person
             90      can fulfill the present and future needs, whether in a proposed build or by future upgrades as
             91      described in the agreements, calculated in accordance with Subsection (3)(e)(ii).
             92          (h) If a person has demonstrated that the proposed merchant electric transmission line
             93      can fulfill present and future needs as calculated in Subsection (3)(e)(ii), the office:
             94          (i) shall issue to the person described in Subsection (3)(c) a certificate of in-state need;
             95      and
             96          (ii) may charge the person a fee, in accordance with Section 63J-1-504 , for the cost of
             97      reviewing an agreement described in Subsection (3)(f) or an expression of need described in
             98      Subsection (3)(e)(i).
             99          (i) A certificate of in-state need issued in accordance with this Subsection (3) is valid
             100      only to the extent that a transmission agreement for in-state merchant generation submitted
             101      under Subsection (3)(f) continues to reflect the agreements of the parties.
             102          (4) Subsection (3) does not apply to a land use application for a conditional use for a
             103      transmission line that is, or is proposed to be, owned or operated by a project entity as defined
             104      in Section 11-13-103 .
             104a      S. (5) "Subsection (3) may not be interpreted to:
             104b          (a) create an obligation of a merchant electric transmission line to pay for, or construct
             104c      any portion of, the transmission line on behalf of an in-state merchant generator; or
             104d          (b) preempt, supersede, or otherwise conflict with Federal Energy Regulatory
             104e      Commission rules and regulations applicable to a commercial transmission agreement,
             104f      including agreements or terms of agreements as to cost, terms, transmission capacity, or key
             104g      rates. .S


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