This document includes House Floor Amendments incorporated into the bill on Thu, Feb 21, 2019 at 3:10 PM by pflowers.
Representative Patrice M. Arent proposes the following substitute bill:


1     
SUSTAINABLE TRANSPORTATION AND ENERGY PLAN

2     
ACT AMENDMENTS

3     
2019 GENERAL SESSION

4     
STATE OF UTAH

5     
Chief Sponsor: Stephen G. Handy

6     
Senate Sponsor: Curtis S. Bramble

7     

8     LONG TITLE
9     General Description:
10          This bill expands the Sustainable Transportation Plan Act to include a large-scale
11     natural gas utility.
12     Highlighted Provisions:
13          This bill:
14          ▸     amends the Sustainable Transportation Plan Act to expand the program to include a
15     large-scale natural gas utility;
16          ▸     defines the pilot program period for a large-scale natural gas utility;
17          ▸     defines parameters for the program; and
18          ▸     makes technical changes.
19     Money Appropriated in this Bill:
20          None
21     Other Special Clauses:
22          None
23     Utah Code Sections Affected:
24     AMENDS:
25          54-2-1, as last amended by Laws of Utah 2016, Chapters 267, 315, and 393

26          54-3-8, as last amended by Laws of Utah 2014, Chapter 381
27          54-4-2, as last amended by Laws of Utah 2014, Chapter 381
28          54-4-13.1, as enacted by Laws of Utah 2009, Chapter 303
29          54-4-13.4, as enacted by Laws of Utah 2013, Chapter 311
30          54-20-102, as enacted by Laws of Utah 2016, Chapter 393
31          54-20-105, as enacted by Laws of Utah 2016, Chapter 393
32          54-20-107, as enacted by Laws of Utah 2016, Chapter 393
33     

34     Be it enacted by the Legislature of the state of Utah:
35          Section 1. Section 54-2-1 is amended to read:
36          54-2-1. Definitions.
37          As used in this title:
38          (1) "Avoided costs" means the incremental costs to an electrical corporation of electric
39     energy or capacity or both that, due to the purchase of electric energy or capacity or both from
40     small power production or cogeneration facilities, the electrical corporation would not have to
41     generate itself or purchase from another electrical corporation.
42          (2) "Clean coal technology" means a technology that may be researched, developed, or
43     used for reducing emissions or the rate of emissions from a thermal electric generation plant
44     that uses coal as a fuel source.
45          (3) "Cogeneration facility":
46          (a) means a facility that produces:
47          (i) electric energy; and
48          (ii) steam or forms of useful energy, including heat, that are used for industrial,
49     commercial, heating, or cooling purposes; and
50          (b) is a qualifying cogeneration facility under federal law.
51          (4) "Commission" means the Public Service Commission.
52          (5) "Commissioner" means a member of the commission.
53          (6) (a) "Corporation" includes an association and a joint stock company having any
54     powers or privileges not possessed by individuals or partnerships.
55          (b) "Corporation" does not include towns, cities, counties, conservancy districts,
56     improvement districts, or other governmental units created or organized under any general or

57     special law of this state.
58          (7) "Distribution electrical cooperative" includes an electrical corporation that:
59          (a) is a cooperative;
60          (b) conducts a business that includes the retail distribution of electricity the cooperative
61     purchases or generates for the cooperative's members; and
62          (c) is required to allocate or distribute savings in excess of additions to reserves and
63     surplus on the basis of patronage to the cooperative's:
64          (i) members; or
65          (ii) patrons.
66          (8) (a) "Electrical corporation" includes every corporation, cooperative association, and
67     person, their lessees, trustees, and receivers, owning, controlling, operating, or managing any
68     electric plant, or in any way furnishing electric power for public service or to its consumers or
69     members for domestic, commercial, or industrial use, within this state.
70          (b) "Electrical corporation" does not include:
71          (i) an independent energy producer;
72          (ii) where electricity is generated on or distributed by the producer solely for the
73     producer's own use, or the use of the producer's tenants, or the use of members of an
74     association of unit owners formed under Title 57, Chapter 8, Condominium Ownership Act,
75     and not for sale to the public generally;
76          (iii) an eligible customer who provides electricity for the eligible customer's own use or
77     the use of the eligible customer's tenant or affiliate; or
78          (iv) a nonutility energy supplier who sells or provides electricity to:
79          (A) an eligible customer who has transferred the eligible customer's service to the
80     nonutility energy supplier in accordance with Section 54-3-32; or
81          (B) the eligible customer's tenant or affiliate.
82          (c) "Electrical corporation" does not include an entity that sells electric vehicle battery
83     charging services, unless the entity conducts another activity in the state that subjects the entity
84     to the jurisdiction and regulation of the commission as an electrical corporation.
85          (9) "Electric plant" includes all real estate, fixtures, and personal property owned,
86     controlled, operated, or managed in connection with or to facilitate the production, generation,
87     transmission, delivery, or furnishing of electricity for light, heat, or power, and all conduits,

88     ducts, or other devices, materials, apparatus, or property for containing, holding, or carrying
89     conductors used or to be used for the transmission of electricity for light, heat, or power.
90          (10) "Eligible customer" means a person who:
91          (a) on December 31, 2013:
92          (i) was a customer of a public utility that, on December 31, 2013, had more than
93     200,000 retail customers in this state; and
94          (ii) owned an electric plant that is an electric generation plant that, on December 31,
95     2013, had a generation name plate capacity of greater than 150 megawatts; and
96          (b) produces electricity:
97          (i) from a qualifying power production facility for sale to a public utility in this state;
98          (ii) primarily for the eligible customer's own use; or
99          (iii) for the use of the eligible customer's tenant or affiliate.
100          (11) "Eligible customer's tenant or affiliate" means one or more tenants or affiliates:
101          (a) of an eligible customer; and
102          (b) who are primarily engaged in an activity:
103          (i) related to the eligible customer's core mining or industrial businesses; and
104          (ii) performed on real property that is:
105          (A) within a 25-mile radius of the electric plant described in Subsection (10)(a)(ii); and
106          (B) owned by, controlled by, or under common control with, the eligible customer.
107          (12) "Gas corporation" includes every corporation and person, their lessees, trustees,
108     and receivers, owning, controlling, operating, or managing any gas plant for public service
109     within this state or for the selling or furnishing of natural gas to any consumer or consumers
110     within the state for domestic, commercial, or industrial use, except in the situation that:
111          (a) gas is made or produced on, and distributed by the maker or producer through,
112     private property:
113          (i) solely for the maker's or producer's own use or the use of the maker's or producer's
114     tenants; and
115          (ii) not for sale to others;
116          (b) gas is compressed on private property solely for the owner's own use or the use of
117     the owner's employees as a motor vehicle fuel; or
118          (c) gas is compressed by a retailer of motor vehicle fuel on the retailer's property solely

119     for sale as a motor vehicle fuel.
120          (13) "Gas plant" includes all real estate, fixtures, and personal property owned,
121     controlled, operated, or managed in connection with or to facilitate the production, generation,
122     transmission, delivery, or furnishing of gas, natural or manufactured, for light, heat, or power.
123          (14) "Heat corporation" includes every corporation and person, their lessees, trustees,
124     and receivers, owning, controlling, operating, or managing any heating plant for public service
125     within this state.
126          (15) (a) "Heating plant" includes all real estate, fixtures, machinery, appliances, and
127     personal property controlled, operated, or managed in connection with or to facilitate the
128     production, generation, transmission, delivery, or furnishing of artificial heat.
129          (b) "Heating plant" does not include either small power production facilities or
130     cogeneration facilities.
131          (16) "Independent energy producer" means every electrical corporation, person,
132     corporation, or government entity, their lessees, trustees, or receivers, that own, operate,
133     control, or manage an independent power production or cogeneration facility.
134          (17) "Independent power production facility" means a facility that:
135          (a) produces electric energy solely by the use, as a primary energy source, of biomass,
136     waste, a renewable resource, a geothermal resource, or any combination of the preceding
137     sources; or
138          (b) is a qualifying power production facility.
139          (18) "Large-scale electric utility" means a public utility that provides retail electric
140     service to more than 200,000 retail customers in the state.
141          (19) "Large-scale natural gas utility" means a public utility that provides retail natural
142     gas service to more than 200,000 retail customers in the state.
143          [(19)] (20) "Nonutility energy supplier" means a person that:
144          (a) has received market-based rate authority from the Federal Energy Regulatory
145     Commission in accordance with 16 U.S.C. Sec. 824d, 18 C.F.R. Part 35, Filing of Rate
146     Schedules and Tariffs, or applicable Federal Energy Regulatory Commission orders; or
147          (b) owns, leases, operates, or manages an electric plant that is an electric generation
148     plant that:
149          (i) has a capacity of greater than 100 megawatts; and

150          (ii) is hosted on the site of an eligible customer that consumes the output of the electric
151     plant, in whole or in part, for the eligible customer's own use or the use of the eligible
152     customer's tenant or affiliate.
153          [(20)] (21) "Private telecommunications system" includes all facilities for the
154     transmission of signs, signals, writing, images, sounds, messages, data, or other information of
155     any nature by wire, radio, lightwaves, or other electromagnetic means, excluding mobile radio
156     facilities, that are owned, controlled, operated, or managed by a corporation or person,
157     including their lessees, trustees, receivers, or trustees appointed by any court, for the use of that
158     corporation or person and not for the shared use with or resale to any other corporation or
159     person on a regular basis.
160          [(21)] (22) (a) "Public utility" includes every railroad corporation, gas corporation,
161     electrical corporation, distribution electrical cooperative, wholesale electrical cooperative,
162     telephone corporation, telegraph corporation, water corporation, sewerage corporation, heat
163     corporation, and independent energy producer not described in Section 54-2-201 where the
164     service is performed for, or the commodity delivered to, the public generally, or in the case of a
165     gas corporation or electrical corporation where the gas or electricity is sold or furnished to any
166     member or consumers within the state for domestic, commercial, or industrial use.
167          (b) (i) If any railroad corporation, gas corporation, electrical corporation, telephone
168     corporation, telegraph corporation, water corporation, sewerage corporation, heat corporation,
169     or independent energy producer not described in Section 54-2-201, performs a service for or
170     delivers a commodity to the public, it is considered to be a public utility, subject to the
171     jurisdiction and regulation of the commission and this title.
172          (ii) If a gas corporation, independent energy producer not described in Section
173     54-2-201, or electrical corporation sells or furnishes gas or electricity to any member or
174     consumers within the state, for domestic, commercial, or industrial use, for which any
175     compensation or payment is received, it is considered to be a public utility, subject to the
176     jurisdiction and regulation of the commission and this title.
177          (c) Any corporation or person not engaged in business exclusively as a public utility as
178     defined in this section is governed by this title in respect only to the public utility owned,
179     controlled, operated, or managed by the corporation or person, and not in respect to any other
180     business or pursuit.

181          (d) Any person or corporation defined as an electrical corporation or public utility
182     under this section may continue to serve its existing customers subject to any order or future
183     determination of the commission in reference to the right to serve those customers.
184          (e) (i) "Public utility" does not include any person that is otherwise considered a public
185     utility under this Subsection [(21)] (22) solely because of that person's ownership of an interest
186     in an electric plant, cogeneration facility, or small power production facility in this state if all of
187     the following conditions are met:
188          (A) the ownership interest in the electric plant, cogeneration facility, or small power
189     production facility is leased to:
190          (I) a public utility, and that lease has been approved by the commission;
191          (II) a person or government entity that is exempt from commission regulation as a
192     public utility; or
193          (III) a combination of Subsections [(21)] (22)(e)(i)(A)(I) and (II);
194          (B) the lessor of the ownership interest identified in Subsection [(21)] (22)(e)(i)(A) is:
195          (I) primarily engaged in a business other than the business of a public utility; or
196          (II) a person whose total equity or beneficial ownership is held directly or indirectly by
197     another person engaged in a business other than the business of a public utility; and
198          (C) the rent reserved under the lease does not include any amount based on or
199     determined by revenues or income of the lessee.
200          (ii) Any person that is exempt from classification as a public utility under Subsection
201     [(21)] (22)(e)(i) shall continue to be so exempt from classification following termination of the
202     lessee's right to possession or use of the electric plant for so long as the former lessor does not
203     operate the electric plant or sell electricity from the electric plant. If the former lessor operates
204     the electric plant or sells electricity, the former lessor shall continue to be so exempt for a
205     period of 90 days following termination, or for a longer period that is ordered by the
206     commission. This period may not exceed one year. A change in rates that would otherwise
207     require commission approval may not be effective during the 90-day or extended period
208     without commission approval.
209          (f) "Public utility" does not include any person that provides financing for, but has no
210     ownership interest in an electric plant, small power production facility, or cogeneration facility.
211     In the event of a foreclosure in which an ownership interest in an electric plant, small power

212     production facility, or cogeneration facility is transferred to a third-party financer of an electric
213     plant, small power production facility, or cogeneration facility, then that third-party financer is
214     exempt from classification as a public utility for 90 days following the foreclosure, or for a
215     longer period that is ordered by the commission. This period may not exceed one year.
216          (g) (i) The distribution or transportation of natural gas for use as a motor vehicle fuel
217     does not cause the distributor or transporter to be a "public utility," unless the commission,
218     after notice and a public hearing, determines by rule that it is in the public interest to regulate
219     the distributers or transporters, but the retail sale alone of compressed natural gas as a motor
220     vehicle fuel may not cause the seller to be a "public utility."
221          (ii) In determining whether it is in the public interest to regulate the distributors or
222     transporters, the commission shall consider, among other things, the impact of the regulation
223     on the availability and price of natural gas for use as a motor fuel.
224          (h) "Public utility" does not include:
225          (i) an eligible customer who provides electricity for the eligible customer's own use or
226     the use of the eligible customer's tenant or affiliate; or
227          (ii) a nonutility energy supplier that sells or provides electricity to:
228          (A) an eligible customer who has transferred the eligible customer's service to the
229     nonutility energy supplier in accordance with Section 54-3-32; or
230          (B) the eligible customer's tenant or affiliate.
231          (i) "Public utility" does not include an entity that sells electric vehicle battery charging
232     services, unless the entity conducts another activity in the state that subjects the entity to the
233     jurisdiction and regulation of the commission as a public utility.
234          (j) "Public utility" does not include an independent energy producer that is not subject
235     to regulation by the commission as a public utility under Section 54-2-201.
236          [(22)] (23) "Purchasing utility" means any electrical corporation that is required to
237     purchase electricity from small power production or cogeneration facilities pursuant to the
238     Public Utility Regulatory Policies Act, 16 U.S.C. Sec. 824a-3.
239          [(23)] (24) "Qualifying power producer" means a corporation, cooperative association,
240     or person, or the lessee, trustee, and receiver of the corporation, cooperative association, or
241     person, who owns, controls, operates, or manages any qualifying power production facility or
242     cogeneration facility.

243          [(24)] (25) "Qualifying power production facility" means a facility that:
244          (a) produces electrical energy solely by the use, as a primary energy source, of biomass,
245     waste, a renewable resource, a geothermal resource, or any combination of the preceding
246     sources;
247          (b) has a power production capacity that, together with any other facilities located at
248     the same site, is no greater than 80 megawatts; and
249          (c) is a qualifying small power production facility under federal law.
250          [(25)] (26) "Railroad" includes every commercial, interurban, and other railway, other
251     than a street railway, and each branch or extension of a railway, by any power operated,
252     together with all tracks, bridges, trestles, rights-of-way, subways, tunnels, stations, depots,
253     union depots, yards, grounds, terminals, terminal facilities, structures, and equipment, and all
254     other real estate, fixtures, and personal property of every kind used in connection with a
255     railway owned, controlled, operated, or managed for public service in the transportation of
256     persons or property.
257          [(26)] (27) "Railroad corporation" includes every corporation and person, their lessees,
258     trustees, and receivers, owning, controlling, operating, or managing any railroad for public
259     service within this state.
260          [(27)] (28) (a) "Sewerage corporation" includes every corporation and person, their
261     lessees, trustees, and receivers, owning, controlling, operating, or managing any sewerage
262     system for public service within this state.
263          (b) "Sewerage corporation" does not include private sewerage companies engaged in
264     disposing of sewage only for their stockholders, or towns, cities, counties, conservancy
265     districts, improvement districts, or other governmental units created or organized under any
266     general or special law of this state.
267          [(28)] (29) "Telegraph corporation" includes every corporation and person, their
268     lessees, trustees, and receivers, owning, controlling, operating, or managing any telegraph line
269     for public service within this state.
270          [(29)] (30) "Telegraph line" includes all conduits, ducts, poles, wires, cables,
271     instruments, and appliances, and all other real estate, fixtures, and personal property owned,
272     controlled, operated, or managed in connection with or to facilitate communication by
273     telegraph, whether that communication be had with or without the use of transmission wires.

274          [(30)] (31) "Telephone cooperative" means a telephone corporation that:
275          (a) is a cooperative; and
276          (b) is organized for the purpose of providing telecommunications service to the
277     telephone corporation's members and the public at cost plus a reasonable rate of return.
278          [(31)] (32) (a) "Telephone corporation" means any corporation or person, and their
279     lessees, trustee, receivers, or trustees appointed by any court, who owns, controls, operates,
280     manages, or resells a public telecommunications service as defined in Section 54-8b-2.
281          (b) "Telephone corporation" does not mean a corporation, partnership, or firm
282     providing:
283          (i) intrastate telephone service offered by a provider of cellular, personal
284     communication systems (PCS), or other commercial mobile radio service as defined in 47
285     U.S.C. Sec. 332 that has been issued a covering license by the Federal Communications
286     Commission;
287          (ii) Internet service; or
288          (iii) resold intrastate toll service.
289          [(32)] (33) "Telephone line" includes all conduits, ducts, poles, wires, cables,
290     instruments, and appliances, and all other real estate, fixtures, and personal property owned,
291     controlled, operated, or managed in connection with or to facilitate communication by
292     telephone whether that communication is had with or without the use of transmission wires.
293          [(33)] (34) "Transportation of persons" includes every service in connection with or
294     incidental to the safety, comfort, or convenience of the person transported, and the receipt,
295     carriage, and delivery of that person and that person's baggage.
296          [(34)] (35) "Transportation of property" includes every service in connection with or
297     incidental to the transportation of property, including in particular its receipt, delivery,
298     elevation, transfer, switching, carriage, ventilation, refrigeration, icing, dunnage, storage, and
299     hauling, and the transmission of credit by express companies.
300          [(35)] (36) "Water corporation" includes every corporation and person, their lessees,
301     trustees, and receivers, owning, controlling, operating, or managing any water system for
302     public service within this state. It does not include private irrigation companies engaged in
303     distributing water only to their stockholders, or towns, cities, counties, water conservancy
304     districts, improvement districts, or other governmental units created or organized under any

305     general or special law of this state.
306          [(36)] (37) (a) "Water system" includes all reservoirs, tunnels, shafts, dams, dikes,
307     headgates, pipes, flumes, canals, structures, and appliances, and all other real estate, fixtures,
308     and personal property owned, controlled, operated, or managed in connection with or to
309     facilitate the diversion, development, storage, supply, distribution, sale, furnishing, carriage,
310     appointment, apportionment, or measurement of water for power, fire protection, irrigation,
311     reclamation, or manufacturing, or for municipal, domestic, or other beneficial use.
312          (b) "Water system" does not include private irrigation companies engaged in
313     distributing water only to their stockholders.
314          [(37)] (38) "Wholesale electrical cooperative" includes every electrical corporation that
315     is:
316          (a) in the business of the wholesale distribution of electricity it has purchased or
317     generated to its members and the public; and
318          (b) required to distribute or allocate savings in excess of additions to reserves and
319     surplus to members or patrons on the basis of patronage.
320          Section 2. Section 54-3-8 is amended to read:
321          54-3-8. Preferences forbidden -- Power of commission to determine facts --
322     Applicability of section.
323          (1) Except as provided in Chapter 8b, Public Telecommunications Law, a public utility
324     may not:
325          (a) as to rates, charges, service, facilities or in any other respect, make or grant any
326     preference or advantage to any person, or subject any person to any prejudice or disadvantage;
327     and
328          (b) establish or maintain any unreasonable difference as to rates, charges, service or
329     facilities, or in any other respect, either as between localities or as between classes of service.
330          (2) The commission shall have power to determine any question of fact arising under
331     this section.
332          (3) This section does not apply to, and the commission may not enforce this chapter
333     concerning, a schedule, classification, rate, price, charge, fare, toll, rental, rule, service, facility,
334     or contract of an entity described in Subsection 54-2-1(8)(b)(iii) or (iv), [(19)] (20), or [(21)]
335     (22)(i), or if the electricity is consumed by an eligible customer for the eligible customer's own

336     use or the use of the eligible customer's tenant or affiliate.
337          Section 3. Section 54-4-2 is amended to read:
338          54-4-2. Investigations -- Hearings and notice -- Findings -- Applicability of
339     chapter.
340          (1) (a) The commission may conduct an investigation if the commission determines an
341     investigation:
342          (i) is necessary to secure compliance with this title or with an order of the commission;
343          (ii) is in the public interest; or
344          (iii) should be made of any act or omission to act, or of anything accomplished or
345     proposed, or of any schedule, classification, rate, price, charge, fare, toll, rental, rule,
346     regulation, service, or facility of any public utility.
347          (b) If the commission conducts an investigation under Subsection (1)(a), the
348     commission may:
349          (i) establish a time and place for a hearing;
350          (ii) provide notice to the public utility concerning the investigation; and
351          (iii) make findings and orders that are just and reasonable with respect to the
352     investigation.
353          (2) This chapter does not apply to a schedule, classification, rate, price, charge, fare,
354     toll, rental, rule, service, facility, or contract of an entity described in Subsection
355     54-2-1(8)(b)(iii) or (iv), [(19)] (20), or [(21)] (22)(i), or if the electricity is consumed by an
356     eligible customer for the eligible customer's own use or the use of the eligible customer's tenant
357     or affiliate.
358          Section 4. Section 54-4-13.1 is amended to read:
359          54-4-13.1. Natural gas vehicle rate -- Natural gas clean air programs.
360          (1) The commission may find that a gas corporation's request for a natural gas vehicle
361     rate that is less than full cost of service is:
362          (a) in the public interest; and
363          (b) just and reasonable.
364          (2) If the commission approves a gas corporation's request under Subsection (1), the
365     remaining costs may be spread to other customers of the gas corporation.
366          (3) The commission may authorize a gas corporation to establish natural gas clean air

367     programs that promote sustainability through increasing the use of natural gas or renewable
368     natural gas that the commission determines are in the public interest, subject to the funding
369     limits set forth in Subsection 54-20-105(3)(c).
370          (4) For purposes of this section, and as pertaining to the transportation sector, "natural
371     gas clean air program" means:
372          (a) an incentive or program to support the use of natural gas, including renewable
373     natural gas;
374          (b) a program to improve air quality through the use of natural gas or renewable natural
375     gas; and
376          (c) does not include any program under Section 54-4-13.4.
377          (5) A gas corporation proposing a natural gas clean air program for approval by the
378     commission under Subsection (3) shall seek input from:
379          (a) the Division of Public Utilities;
380          (b) the Office of Consumer Services; and
381          (c) any person that files a request for notice with the commission.
382          (6) The commission may review the expenditure made by a gas corporation for a
383     natural gas clean air program to determine if the gas corporation made the expenditure
384     prudently in accordance with the purposes of the program.
385          (7) If the commission approves a gas corporation's request under Subsection (3), the
386     remaining costs may be spread to other customers of the gas corporation.
387          (8) A natural gas clean air program under Section 54-4-13.1 shall be considered
388     distinct and independent of Section 54-4-13.4.
389          Section 5. Section 54-4-13.4 is amended to read:
390          54-4-13.4. Natural gas fueling stations and facilities -- Recovery of expenditures
391     for stations and facilities.
392          (1) The commission shall find that a gas corporation's expenditures for the
393     construction, operation, and maintenance of natural gas fueling stations and appurtenant natural
394     gas facilities [for use by the state, political subdivisions of the state, and the public] are in the
395     public interest and are just and reasonable, if:
396          (a) the gas corporation's expenditures for the fueling stations and appurtenant facilities:
397          (i) are prudently incurred; and

398          (ii) do not exceed $5,000,000 in any calendar year;
399          (b) the gas corporation shows that the estimated annual incremental increase in revenue
400     related to the stations and facilities exceeds 50% of the annual revenue requirement of the
401     stations and facilities; and
402          (c) the stations and facilities are in service and are being used and are useful.
403          (2) (a) A gas corporation may seek the recovery of expenditures under Subsection (1)
404     through a mechanism designed to track and collect the expenditures between general rate cases.
405          (b) (i) The commission shall allow a gas corporation to recover, through an incremental
406     surcharge to all of its rate classes, expenditures that the gas corporation incurs that are directly
407     related to the construction, operation, and maintenance of the stations and facilities described
408     in Subsection (1), reduced by revenues the gas corporation receives during the same time
409     period directly attributable to the stations and facilities.
410          (ii) The commission shall assign a surcharge under Subsection (2)(b)(i) to each rate
411     class based upon the pro rata share, approved by the commission, of the tariff revenue ordered
412     in the gas corporation's most recent general rate case.
413          (iii) A gas corporation may file an application to adjust a surcharge under Subsection
414     (2)(b)(i) as frequently as semiannually.
415          (iv) At the gas corporation's next general rate case, the commission shall include in
416     base rates all expenditures that the gas corporation prudently incurs associated with a surcharge
417     under Subsection (2)(b)(i).
418          Section 6. Section 54-20-102 is amended to read:
419          54-20-102. Definitions.
420          As used in this chapter:
421          (1) "Demand side management" means the same as that term is defined in Section
422     54-7-12.8.
423          (2) "Pilot program period" means a period of [5] five years, [beginning on January 1,
424     2017,] during which the sustainable transportation and energy plan is effective[.]:
425          (a) for a large-scale electric utility, beginning on January 1, 2017; or
426          (b) for a large-scale natural gas utility, beginning on July 1, 2019.
427          (3) "Sustainable transportation and energy plan" means the programs approved by the
428     commission and undertaken by a large-scale electric utility or large-scale natural gas utility

429     during the pilot program period, including:
430          (a) a natural gas vehicle rate or natural gas clean air program described in Section
431     54-4-13.1;
432          [(a)] (b) the electric vehicle incentive program described in Section 54-20-103;
433          [(b)] (c) the clean coal technology program described in Section 54-20-104; and
434          [(c)] (d) the innovative technology programs described in Section 54-20-105.
435          Section 7. Section 54-20-105 is amended to read:
436          54-20-105. Innovative utility programs.
437          (1) The commission may authorize, subject to funding available under Subsection
438     54-7-12.8(6)(b)(ii)(B), a large-scale electric utility to implement programs that the commission
439     determines are in the interest of large-scale electric utility customers to provide for the
440     investigation, analysis, and implementation of:
441          (a) an economic development incentive rate;
442          (b) a solar generation incentive;
443          (c) a battery storage or electric grid related project;
444          (d) a commercial line extension pilot program;
445          (e) a program to curtail emissions from thermal generation plant in the Salt Lake
446     non-attainment area during a non-attainment event as defined by the Division of Air Quality;
447          (f) an additional electric vehicle incentive program incremental to the program
448     described in Section 54-20-103;
449          (g) an additional clean coal program incremental to the program described in Section
450     54-20-104; [and]
451          (h) an acquisition of electric infrastructure behind the large-scale electric utility's
452     meter; and
453          [(h)] (i) any other technology program.
454          (2) The commission may review the expenditures made by a large-scale electric utility
455     for a program described in Subsection (1) in order to determine if the large-scale electric utility
456     made the expenditures prudently in accordance with the purposes of the program.
457          (3) (a) The commission may authorize a large-scale natural gas utility to implement
458     and fund programs that the commission determines are in the public interest of large-scale
459     natural gas utility customers to provide for the investigation, analysis, and implementation of:

460          (i) an economic development incentive rate;
461          (ii) research and development of other efficiency technologies;
462          (iii) an acquisition of nonresidential natural gas infrastructure behind the large-scale
463     natural gas utility's meter;
464          (iv) the development of communities that can reduce greenhouse gases and NOx
465     emissions;
466          (v) a natural gas renewable energy project;
467          (vi) a commercial line extension program; or
468          (vii) any other technology program.
469          (b) A large-scale natural gas utility proposing a program under this Subsection (3)
470     shall, before submitting the program to the commission for approval, seek input from:
471          (i) the Division of Public Utilities;
472          (ii) the Office of Consumer Services; and
473          (iii) a person that files a request for notice with the commission.
474          (c) In determining whether a project is in the public interest, the commission shall
475     consider the following factors:
476          (i) to what extent the use of renewable natural gas is facilitated or expanded by the
477     proposed project;
478          (ii) potential air quality improvements associated with the proposed project;
479          (iii) whether the proposed project could be provided by the private sector or would be
480     viable without the proposed incentives;
481          (iv) whether any proposed incentives were offered to all similarly situated potential
482     partners and recipients; and
483          (v) potential benefits to ratepayers Ĥ→ [
in comparison] ←Ĥ .
484          (d) Upon commission approval, the commission may authorize the large-scale natural
485     gas utility to allocate on an annual basis up to $10,000,000 to a specific sustainable
486     transportation and energy plan as described in Subsections (3)(a)(i) through (vii) or a specific
487     natural gas clean air program as provided in Section 54-4-13.1.
488          (e) A large-scale natural gas utility shall establish a balancing account that includes:
489          (i) funds allocated for projects that have been approved by the commission under
490     Subsection (3)(a); and

491          (ii) a carrying charge in an amount determined by the commission.
492          (4) The commission may review the expenditures made by a large-scale natural gas
493     utility for a program described in Subsection (3) and approved by the commission in order to
494     determine if the large-scale natural gas utility made the expenditures prudently in accordance
495     with the purposes of the program.
496          [(3)] (5) The commission may authorize and establish funding for a conservation,
497     efficiency, or new technology program in addition to the programs described in this chapter if
498     the conservation, efficiency, or new technology program is cost-effective and in the public
499     interest.
500          (6) A large-scale electric utility or a large-scale natural gas utility that establishes and
501     operates a natural gas clean air program described in Section 54-4-13.1, a sustainable
502     transportation and energy plan under Section 54-7-12.8, or any plan or program under this
503     chapter, shall submit a written report annually, on or before June 1, to the Public Utilities,
504     Energy and Technology Interim Committee about each plan or program active during the
505     previous calendar year, including status, operation, funding, disposition of funds, plan or
506     program benefits, and the impact on rates.
507          Section 8. Section 54-20-107 is amended to read:
508          54-20-107. Other programs.
509          The commission may authorize a large-scale electric utility or a large-scale natural gas
510     utility to establish a program in addition to the programs described in this chapter if the
511     commission determines that the program is cost-effective and in the public interest.