1     
CLEAN ENERGY AMENDMENTS

2     
2024 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Carl R. Albrecht

5     
Senate Sponsor: Derrin R. Owens

6     

7     LONG TITLE
8     General Description:
9          This bill modifies provisions relating to clean energy.
10     Highlighted Provisions:
11          This bill:
12          ▸     changes the term renewable to clean where appropriate in statute.
13     Money Appropriated in this Bill:
14          None
15     Other Special Clauses:
16          None
17     Utah Code Sections Affected:
18     AMENDS:
19          10-9a-401, as last amended by Laws of Utah 2023, Chapter 88
20          10-19-102, as last amended by Laws of Utah 2010, Chapters 119, 125 and 268
21          10-19-201, as enacted by Laws of Utah 2008, Chapter 374
22          10-19-202, as enacted by Laws of Utah 2008, Chapter 374
23          10-19-301, as enacted by Laws of Utah 2008, Chapter 374
24          11-13-218, as last amended by Laws of Utah 2016, Chapter 371
25          11-17-2, as last amended by Laws of Utah 2020, Chapter 354
26          11-42a-102, as last amended by Laws of Utah 2023, Chapter 16
27          11-42a-103, as enacted by Laws of Utah 2017, Chapter 470

28          11-58-102, as last amended by Laws of Utah 2023, Chapters 16, 259
29          11-58-203, as last amended by Laws of Utah 2022, Chapter 82
30          11-59-102, as last amended by Laws of Utah 2023, Chapters 16, 263
31          11-59-202, as last amended by Laws of Utah 2023, Chapter 139
32          11-65-101, as last amended by Laws of Utah 2023, Chapter 16
33          11-65-203, as enacted by Laws of Utah 2022, Chapter 59
34          11-68-201, as renumbered and amended by Laws of Utah 2023, Chapter 502
35          17-27a-401, as last amended by Laws of Utah 2023, Chapters 34, 88
36          17-50-335, as last amended by Laws of Utah 2020, Chapter 354
37          17B-1-202, as last amended by Laws of Utah 2023, Chapter 15
38          17D-1-201, as last amended by Laws of Utah 2021, Chapter 339
39          54-17-502, as enacted by Laws of Utah 2008, Chapter 374
40          54-17-601, as last amended by Laws of Utah 2010, Chapters 119, 125 and 268
41          54-17-602, as enacted by Laws of Utah 2008, Chapter 374
42          54-17-604, as enacted by Laws of Utah 2008, Chapter 374
43          54-17-605, as enacted by Laws of Utah 2008, Chapter 374
44          54-17-801, as last amended by Laws of Utah 2017, Chapter 409
45          54-17-802, as enacted by Laws of Utah 2012, Chapter 182
46          54-17-803, as enacted by Laws of Utah 2012, Chapter 182
47          54-17-804, as enacted by Laws of Utah 2012, Chapter 182
48          54-17-805, as enacted by Laws of Utah 2012, Chapter 182
49          54-17-806, as last amended by Laws of Utah 2020, Chapter 126
50          54-17-807, as last amended by Laws of Utah 2019, Chapter 136
51          54-17-901, as enacted by Laws of Utah 2019, Chapter 471
52          54-17-902, as enacted by Laws of Utah 2019, Chapter 471
53          54-17-903, as enacted by Laws of Utah 2019, Chapter 471
54          54-17-904, as enacted by Laws of Utah 2019, Chapter 471
55          54-17-905, as enacted by Laws of Utah 2019, Chapter 471
56          54-17-906, as enacted by Laws of Utah 2019, Chapter 471
57          54-17-908, as enacted by Laws of Utah 2019, Chapter 471
58          59-2-102, as last amended by Laws of Utah 2023, Chapter 16

59          59-7-614, as last amended by Laws of Utah 2023, Chapter 482
60          59-10-1014, as last amended by Laws of Utah 2021, Chapter 280
61          63A-5b-702, as last amended by Laws of Utah 2021, Chapter 382
62          63H-1-201, as last amended by Laws of Utah 2022, Chapter 274
63          63L-11-304, as renumbered and amended by Laws of Utah 2021, Chapter 382
64          79-3-202, as last amended by Laws of Utah 2022, Chapter 216
65     

66     Be it enacted by the Legislature of the state of Utah:
67          Section 1. Section 10-9a-401 is amended to read:
68          10-9a-401. General plan required -- Content.
69          (1) To accomplish the purposes of this chapter, a municipality shall prepare and adopt
70     a comprehensive, long-range general plan for:
71          (a) present and future needs of the municipality; and
72          (b) growth and development of all or any part of the land within the municipality.
73          (2) The general plan may provide for:
74          (a) health, general welfare, safety, energy conservation, transportation, prosperity, civic
75     activities, aesthetics, and recreational, educational, and cultural opportunities;
76          (b) the reduction of the waste of physical, financial, or human resources that result
77     from either excessive congestion or excessive scattering of population;
78          (c) the efficient and economical use, conservation, and production of the supply of:
79          (i) food and water; and
80          (ii) drainage, sanitary, and other facilities and resources;
81          (d) the use of energy conservation and solar and [renewable] clean energy resources;
82          (e) the protection of urban development;
83          (f) if the municipality is a town, the protection or promotion of moderate income
84     housing;
85          (g) the protection and promotion of air quality;
86          (h) historic preservation;
87          (i) identifying future uses of land that are likely to require an expansion or significant
88     modification of services or facilities provided by an affected entity; and
89          (j) an official map.

90          (3) (a) The general plan of a specified municipality, as defined in Section 10-9a-408,
91     shall include a moderate income housing element that meets the requirements of Subsection
92     10-9a-403(2)(a)(iii).
93          (b) (i) This Subsection (3)(b) applies to a municipality that is not a specified
94     municipality as of January 1, 2023.
95          (ii) As of January 1, if a municipality described in Subsection (3)(b)(i) changes from
96     one class to another or grows in population to qualify as a specified municipality as defined in
97     Section 10-9a-408, the municipality shall amend the municipality's general plan to comply with
98     Subsection (3)(a) on or before August 1 of the first calendar year beginning on January 1 in
99     which the municipality qualifies as a specified municipality.
100          (4) Subject to Subsection 10-9a-403(2), the municipality may determine the
101     comprehensiveness, extent, and format of the general plan.
102          (5) Except for a city of the fifth class or a town, on or before December 31, 2025, a
103     municipality that has a general plan that does not include a water use and preservation element
104     that complies with Section 10-9a-403 shall amend the municipality's general plan to comply
105     with Section 10-9a-403.
106          Section 2. Section 10-19-102 is amended to read:
107          10-19-102. Definitions.
108          As used in this chapter:
109          (1) "Adjusted retail electric sales" means the total kilowatt-hours of retail electric sales
110     of a municipal electric utility to customers in this state in a calendar year, reduced by:
111          (a) the amount of those kilowatt-hours attributable to electricity generated or purchased
112     in that calendar year from qualifying zero carbon emissions generation and qualifying carbon
113     sequestration generation;
114          (b) the amount of those kilowatt-hours attributable to electricity generated or purchased
115     in that calendar year from generation located within the geographic boundary of the Western
116     Electricity Coordinating Council that derives its energy from one or more of the following but
117     that does not satisfy the definition of a [renewable] clean energy source or that otherwise has
118     not been used to satisfy Subsection 10-19-201(1):
119          (i) wind energy;
120          (ii) solar photovoltaic and solar thermal energy;

121          (iii) wave, tidal, and ocean thermal energy;
122          (iv) except for combustion of wood that has been treated with chemical preservatives
123     such as creosote, pentachlorophenol or chromated copper arsenate, biomass and biomass
124     byproducts, including:
125          (A) organic waste;
126          (B) forest or rangeland woody debris from harvesting or thinning conducted to improve
127     forest or rangeland ecological health and to reduce wildfire risk;
128          (C) agricultural residues;
129          (D) dedicated energy crops; and
130          (E) landfill gas or biogas produced from organic matter, wastewater, anaerobic
131     digesters, or municipal solid waste;
132          (v) geothermal energy;
133          (vi) hydro-electric energy; or
134          (vii) waste gas and waste heat capture or recovery; and
135          (c) the number of kilowatt-hours attributable to reductions in retail sales in that
136     calendar year from activities or programs promoting electric energy efficiency or conservation
137     or more efficient management of electric energy load.
138          (2) "Amount of kilowatt-hours attributable to electricity generated or purchased in that
139     calendar year from qualifying carbon sequestration generation," for qualifying carbon
140     sequestration generation, means the kilowatt-hours supplied by a facility during the calendar
141     year multiplied by the ratio of the amount of carbon dioxide captured from the facility and
142     sequestered to the sum of the amount of carbon dioxide captured from the facility and
143     sequestered plus the amount of carbon dioxide emitted from the facility during the same
144     calendar year.
145          (3) "Banked renewable energy certificate" means a bundled or unbundled renewable
146     energy certificate that is:
147          (a) not used in a calendar year to comply with this part or with a renewable energy
148     program in another state; and
149          (b) carried forward into a subsequent year.
150          (4) "Bundled renewable energy certificate" means a renewable energy certificate for
151     qualifying electricity that is acquired:

152          (a) by a municipal electric utility by a trade, purchase, or other transfer of electricity
153     that includes the renewable energy attributes of, or certificate that is issued for, the electricity;
154     or
155          (b) by a municipal electric utility by generating the electricity for which the renewable
156     energy certificate is issued.
157          (5) "Clean energy source" means:
158          (a) an electric generation facility or generation capability or upgrade that becomes
159     operational on or after January 1, 1995, that derives energy from one or more of the following:
160          (i) wind energy;
161          (ii) solar photovoltaic and solar thermal energy;
162          (iii) wave, tidal, and ocean thermal energy;
163          (iv) except for combustion of wood that has been treated with chemical preservatives
164     such as creosote, pentachlorophenol or chromated copper arsenate, biomass and biomass
165     byproducts, including:
166          (A) organic waste;
167          (B) forest or rangeland woody debris from harvesting or thinning conducted to improve
168     forest or rangeland ecological health and to reduce wildfire risk;
169          (C) agricultural residues;
170          (D) dedicated energy crops; and
171          (E) landfill gas or biogas produced from organic matter, wastewater, anaerobic
172     digesters, or municipal solid waste;
173          (v) geothermal energy located outside the state;
174          (vi) waste gas and waste heat capture or recovery, including methane gas from:
175          (A) an abandoned coal mine; or
176          (B) a coal degassing operation associated with a state-approved mine permit;
177          (vii) efficiency upgrades to a hydroelectric facility, without regard to the date upon
178     which the facility became operational, if the upgrades become operational on or after January
179     1, 1995;
180          (viii) a compressed air energy storage process, if:
181          (A) the process used to compress the air is a renewable energy source and the
182     associated renewable energy certificates are retired for the purpose of the compressed air

183     energy storage process; or
184          (B) equivalent renewable energy certificates are obtained and retired for the purpose of
185     the compressed air energy storage process;
186          (ix) municipal solid waste;
187          (x) nuclear fuel; or
188          (xi) carbon capture utilization and sequestration;
189          (b) any of the following:
190          (i) up to 50 average megawatts of electricity per year per municipal electric utility from
191     a certified low-impact hydroelectric facility, without regard to the date upon which the facility
192     becomes operational, if the facility is certified as a low-impact hydroelectric facility on or after
193     January 1, 1995, by a national certification organization;
194          (ii) geothermal energy if located within the state, without regard to the date upon which
195     the facility becomes operational; and
196          (iii) hydroelectric energy if located within the state, without regard to the date upon
197     which the facility becomes operational;
198          (c) hydrogen gas derived from any source of energy described in Subsection (5)(a) or
199     (b);
200          (d) if an electric generation facility employs multiple energy sources, that portion of the
201     electricity generated that is attributable to energy sources described in Subsections (5)(a)
202     through (c); and
203          (e) any of the following located in the state and owned by a user of energy:
204          (i) a demand side management measure, as defined by Subsection 54-7-12.8(1) with
205     the quantity of renewable energy certificates to which the user is entitled determined by the
206     equivalent energy saved by the measure;
207          (ii) a solar thermal system that reduces the consumption of fossil fuels, with the
208     quantity of renewable energy certificates to which the user is entitled determined by the
209     equivalent kilowatt-hours saved, except to the extent the commission determines otherwise
210     with respect to net-metered energy;
211          (iii) a solar photovoltaic system that reduces the consumption of fossil fuels with the
212     quantity of renewable energy certificates to which the user is entitled determined by the total
213     production of the system, except to the extent the commission determines otherwise with

214     respect to net-metered energy;
215          (iv) a hydroelectric or geothermal facility, with the quantity of renewable energy
216     certificates to which the user is entitled determined by the total production of the facility,
217     except to the extent the commission determines otherwise with respect to net-metered energy;
218          (v) a waste gas or waste heat capture or recovery system other than from a combined
219     cycle combustion turbine that does not use waste gas or waste heat, with the quantity of
220     renewable energy certificates to which the user is entitled determined by the total production of
221     the system, except to the extent the commission determines otherwise with respect to
222     net-metered energy; and
223          (vi) the station use of solar thermal energy, solar photovoltaic energy, hydroelectric
224     energy, geothermal energy, waste gas, or waste heat capture and recovery.
225          [(5)] (6) "Commission" means the Public Service Commission.
226          [(6)] (7) "Municipal electric utility" means any municipality that owns, operates,
227     controls, or manages a facility that provides electric power for a retail customer, whether
228     domestic, commercial, industrial, or otherwise.
229          [(7)] (8) "Qualifying carbon sequestration generation" means a fossil-fueled generating
230     facility located within the geographic boundary of the Western Electricity Coordinating
231     Council that:
232          (a) becomes operational or is retrofitted on or after January 1, 2008; and
233          (b) reduces carbon dioxide emissions into the atmosphere through permanent
234     geological sequestration or through other verifiably permanent reductions in carbon dioxide
235     emissions through the use of technology.
236          [(8)] (9) "Qualifying electricity" means electricity generated on or after January 1, 1995
237     from a renewable energy source if:
238          (a) (i) the [renewable] clean energy source is located within the geographic boundary of
239     the Western Electricity Coordinating Council; or
240          (ii) the qualifying electricity is delivered to the transmission system of a municipal
241     electric utility or a delivery point designated by the municipal electric utility for the purpose of
242     subsequent delivery to the municipal electric utility; and
243          (b) the [renewable] clean energy attributes of the electricity are not traded, sold,
244     transferred, or otherwise used to satisfy another state's renewable energy program.

245          [(9)] (10) "Qualifying zero carbon emissions generation":
246          (a) means a generation facility located within the geographic boundary of the Western
247     Electricity Coordinating Council that:
248          (i) becomes operational on or after January 1, 2008; and
249          (ii) does not produce carbon as a byproduct of the generation process;
250          (b) includes generation powered by nuclear fuel; and
251          (c) does not include [renewable] clean energy sources used to satisfy a target
252     established under Section 10-19-201.
253          [(10)] (11) "Renewable energy certificate" means a certificate issued in accordance
254     with the requirements of Sections 10-19-202 and 54-17-603.
255          [(11) "Renewable energy source" means:]
256          [(a) an electric generation facility or generation capability or upgrade that becomes
257     operational on or after January 1, 1995 that derives its energy from one or more of the
258     following:]
259          [(i) wind energy;]
260          [(ii) solar photovoltaic and solar thermal energy;]
261          [(iii) wave, tidal, and ocean thermal energy;]
262          [(iv) except for combustion of wood that has been treated with chemical preservatives
263     such as creosote, pentachlorophenol or chromated copper arsenate, biomass and biomass
264     byproducts, including:]
265          [(A) organic waste;]
266          [(B) forest or rangeland woody debris from harvesting or thinning conducted to
267     improve forest or rangeland ecological health and to reduce wildfire risk;]
268          [(C) agricultural residues;]
269          [(D) dedicated energy crops; and]
270          [(E) landfill gas or biogas produced from organic matter, wastewater, anaerobic
271     digesters, or municipal solid waste;]
272          [(v) geothermal energy located outside the state;]
273          [(vi) waste gas and waste heat capture or recovery whether or not it is renewable,
274     including methane gas from:]
275          [(A) an abandoned coal mine; or]

276          [(B) a coal degassing operation associated with a state-approved mine permit;]
277          [(vii) efficiency upgrades to a hydroelectric facility, without regard to the date upon
278     which the facility became operational, if the upgrades become operational on or after January
279     1, 1995;]
280          [(viii) a compressed air energy storage process, if:]
281          [(A) the process used to compress the air is a renewable energy source and the
282     associated renewable energy certificates are retired for the purpose of the compressed air
283     energy storage process; or]
284          [(B) equivalent renewable energy certificates are obtained and retired for the purpose
285     of the compressed air energy storage process; or]
286          [(ix) municipal solid waste;]
287          [(b) any of the following:]
288          [(i) up to 50 average megawatts of electricity per year per municipal electric utility
289     from a certified low-impact hydroelectric facility, without regard to the date upon which the
290     facility becomes operational, if the facility is certified as a low-impact hydroelectric facility on
291     or after January 1, 1995, by a national certification organization;]
292          [(ii) geothermal energy if located within the state, without regard to the date upon
293     which the facility becomes operational; and]
294          [(iii) hydroelectric energy if located within the state, without regard to the date upon
295     which the facility becomes operational;]
296          [(c) hydrogen gas derived from any source of energy described in Subsection (11)(a) or
297     (b);]
298          [(d) if an electric generation facility employs multiple energy sources, that portion of
299     the electricity generated that is attributable to energy sources described in Subsections (11)(a)
300     through (c); and]
301          [(e) any of the following located in the state and owned by a user of energy:]
302          [(i) a demand side management measure, as defined by Subsection 54-7-12.8(1) with
303     the quantity of renewable energy certificates to which the user is entitled determined by the
304     equivalent energy saved by the measure;]
305          [(ii) a solar thermal system that reduces the consumption of fossil fuels, with the
306     quantity of renewable energy certificates to which the user is entitled determined by the

307     equivalent kilowatt-hours saved, except to the extent the commission determines otherwise
308     with respect to net-metered energy;]
309          [(iii) a solar photovoltaic system that reduces the consumption of fossil fuels with the
310     quantity of renewable energy certificates to which the user is entitled determined by the total
311     production of the system, except to the extent the commission determines otherwise with
312     respect to net-metered energy;]
313          [(iv) a hydroelectric or geothermal facility, with the quantity of renewable energy
314     certificates to which the user is entitled determined by the total production of the facility,
315     except to the extent the commission determines otherwise with respect to net-metered energy;]
316          [(v) a waste gas or waste heat capture or recovery system other than from a combined
317     cycle combustion turbine that does not use waste gas or waste heat, with the quantity of
318     renewable energy certificates to which the user is entitled determined by the total production of
319     the system, except to the extent the commission determines otherwise with respect to
320     net-metered energy; and]
321          [(vi) the station use of solar thermal energy, solar photovoltaic energy, hydroelectric
322     energy, geothermal energy, waste gas, or waste heat capture and recovery.]
323          (12) "Unbundled renewable energy certificate" means a renewable energy certificate
324     associated with:
325          (a) qualifying electricity that is acquired by a municipal electric utility or other person
326     by trade, purchase, or other transfer without acquiring the electricity for which the certificate
327     was issued; or
328          (b) activities listed in Subsection [(11)(e).] (5)(e).
329          Section 3. Section 10-19-201 is amended to read:
330          10-19-201. Target amount of qualifying electricity -- Renewable energy certificate
331     -- Cost-effectiveness.
332          (1) (a) To the extent that it is cost-effective to do so, beginning in 2025 the annual
333     retail electric sales in this state of each municipal electric utility shall consist of qualifying
334     electricity or renewable energy certificates in an amount equal to at least 20% of adjusted retail
335     electric sales.
336          (b) The amount under Subsection (1)(a) is computed based upon adjusted retail sales
337     for the calendar year commencing 36 months before the first day of the year for which the

338     target calculated under Subsection (1)(a) applies.
339          (c) Notwithstanding Subsections (1)(a) and (b) an increase in the annual target from
340     one year to the next is limited to the greater of:
341          (i) 17,500 megawatt-hours; or
342          (ii) 20% of the prior year's amount under Subsections (1)(a) and (b).
343          (2) Cost-effectiveness under Subsection (1) is determined using any criteria applicable
344     to the municipal electric utility's acquisition of a significant energy resource established by the
345     municipality's legislative body.
346          (3) This section does not require a municipal electric utility to:
347          (a) substitute qualifying electricity for electricity from a generation source owned or
348     contractually committed, or from a contractual commitment for a power purchase;
349          (b) enter into any additional electric sales commitment or any other arrangement for the
350     sale or other disposition of electricity that is not already, or would not be, entered into by the
351     municipal electric utility; or
352          (c) acquire qualifying electricity in excess of its adjusted retail electric sales.
353          (4) A municipal electrical corporation may combine the following to meet Subsection
354     (1):
355          (a) qualifying electricity from a [renewable] clean energy source owned by the
356     municipal electric utility;
357          (b) qualifying electricity acquired by the municipal electric utility through trade, power
358     purchase, or other transfer; and
359          (c) a bundled or unbundled renewable energy certificate, including a banked renewable
360     energy certificate.
361          (5) To meet Subsection (1), a municipal electric utility may also count:
362          (a) qualifying electricity generated or acquired or renewable energy certificates
363     acquired for a program permitting the municipal electric utility's customers to voluntarily
364     contribute to a renewable energy source; and
365          (b) electricity allocated to this state that is produced by a hydroelectric facility
366     becoming operational after December 31, 2007, if the hydroelectric facility is located in any
367     state in which the municipal electric utility, or the interlocal entity with which the municipal
368     electric utility has a contract, provides electric service.

369          Section 4. Section 10-19-202 is amended to read:
370          10-19-202. Renewable energy certificate -- Use to satisfy other requirements.
371          (1) A municipal electric utility may buy, sell, trade, or otherwise transfer a renewable
372     energy certificate issued or recognized under Section 54-17-603.
373          (2) For the purpose of satisfying Subsection 10-19-201(1) and the issuance of a
374     renewable energy certificate under Section 54-17-603:
375          (a) a [renewable] clean energy source located in this state that derives its energy from
376     solar photovoltaic and solar thermal energy shall be credited for 2.4 kilowatt-hours of
377     qualifying electricity for each 1.0 kilowatt-hour generated; and
378          (b) if two or more municipal electric utilities jointly own a renewable energy resource,
379     each municipal electric utility shall be credited with 1.0 kilowatt-hour of qualifying electricity
380     for 1.0 kilowatt-hour of the renewable energy resource allocated to the municipal electric utility
381     by contract, unless the contract otherwise provides.
382          (3) A renewable energy certificate:
383          (a) may be used only once to satisfy Subsection 10-19-201(1);
384          (b) may be used to satisfy Subsection 10-19-201(1) and the qualifying electricity on
385     which the renewable energy certificate is based may be used to satisfy any federal renewable
386     energy requirement; and
387          (c) may not be used if it has been used to satisfy any other state's renewable energy
388     requirement.
389          Section 5. Section 10-19-301 is amended to read:
390          10-19-301. Plans and reports.
391          (1) A municipal electric utility shall develop and maintain a plan for implementing
392     Subsection 10-19-201(1).
393          (2) A progress report concerning a plan under Subsection (1) shall be filed with the
394     municipality's legislative body by January 1 of each of the years 2010, 2015, 2020, and 2024.
395          (3) The progress report under Subsection (2) shall contain:
396          (a) the actual and projected amount of qualifying electricity through 2025;
397          (b) the source of qualifying electricity;
398          (c) an estimate of the cost of achieving the target;
399          (d) a discussion of conditions impacting the [renewable] clean energy source and

400     qualifying electricity markets; and
401          (e) any recommendation for a suggested legislative or program change.
402          (4) The plan and progress report required by Subsections (1) and (2) may include
403     procedures that will be used by the municipal electric utility to identify and select any
404     cost-effective [renewable] clean energy resource and qualifying electricity.
405          (5) By July 1, 2026, the municipal electric utility shall file a final progress report
406     demonstrating:
407          (a) how Subsection 10-19-201(1) is satisfied for the year 2025; or
408          (b) the reason why Subsection 10-19-201(1) is not satisfied for the year 2025, if it is
409     not satisfied.
410          (6) The plan and any progress report filed under this section shall be publicly available
411     at the municipal legislative body's office.
412          Section 6. Section 11-13-218 is amended to read:
413          11-13-218. Authority of public agencies or interlocal entities to issue bonds --
414     Applicable provisions.
415          (1) A public agency may, in the same manner as it may issue bonds for its individual
416     acquisition of a facility or improvement or for constructing, improving, or extending a facility
417     or improvement, issue bonds to:
418          (a) acquire an interest in a jointly owned facility or improvement, a combination of a
419     jointly owned facility or improvement, or any other facility or improvement; or
420          (b) pay all or part of the cost of constructing, improving, or extending a jointly owned
421     facility or improvement, a combination of a jointly owned facility or improvement, or any other
422     facility or improvement.
423          (2) (a) An interlocal entity may issue bonds or notes under a resolution, trust indenture,
424     or other security instrument for the purpose of:
425          (i) financing its facilities or improvements; or
426          (ii) providing for or financing an energy efficiency upgrade, a [renewable] clean energy
427     system, or electric vehicle charging infrastructure in accordance with Title 11, Chapter 42,
428     Assessment Area Act.
429          (b) The bonds or notes may be sold at public or private sale, mature at such times and
430     bear interest at such rates, and have such other terms and security as the entity determines.

431          (c) The bonds or notes described in this Subsection (2) are not a debt of any public
432     agency that is a party to the agreement.
433          (3) The governing board may, by resolution, delegate to one or more officers of the
434     interlocal entity or to a committee of designated members of the governing board the authority
435     to:
436          (a) in accordance with and within the parameters set forth in the resolution, approve the
437     final interest rate, price, principal amount, maturity, redemption features, or other terms of a
438     bond or note; and
439          (b) approve and execute all documents relating to the issuance of the bond or note.
440          (4) Bonds and notes issued under this chapter are declared to be negotiable instruments
441     and their form and substance need not comply with the Uniform Commercial Code.
442          (5) (a) An interlocal entity shall issue bonds in accordance with, as applicable:
443          (i) Chapter 14, Local Government Bonding Act;
444          (ii) Chapter 27, Utah Refunding Bond Act;
445          (iii) this chapter; or
446          (iv) any other provision of state law that authorizes issuance of bonds by a public body.
447          (b) An interlocal entity is a public body as defined in Section 11-30-2.
448          Section 7. Section 11-17-2 is amended to read:
449          11-17-2. Definitions.
450          As used in this chapter:
451          (1) "Bonds" means bonds, notes, or other evidences of indebtedness.
452          (2) "Clean energy system" means a product, system, device, or interacting group of
453     devices that is permanently affixed to real property and that produces energy from clean
454     resources, including:
455          (a) a photovoltaic system;
456          (b) a solar thermal system;
457          (c) a wind system;
458          (d) a geothermal system, including:
459          (i) a direct-use system; or
460          (ii) a ground source heat pump system;
461          (e) a micro-hydro system;

462          (f) nuclear fuel;
463          (g) carbon capture utilization and sequestration; or
464          (h) another clean energy system approved by the governing body.
465          [(2)] (3) "Energy efficiency upgrade" means an improvement that is permanently
466     affixed to real property and that is designed to reduce energy consumption, including:
467          (a) insulation in:
468          (i) a wall, ceiling, roof, floor, or foundation; or
469          (ii) a heating or cooling distribution system;
470          (b) an insulated window or door, including:
471          (i) a storm window or door;
472          (ii) a multiglazed window or door;
473          (iii) a heat-absorbing window or door;
474          (iv) a heat-reflective glazed and coated window or door;
475          (v) additional window or door glazing;
476          (vi) a window or door with reduced glass area; or
477          (vii) other window or door modifications that reduce energy loss;
478          (c) an automatic energy control system;
479          (d) in a building or a central plant, a heating, ventilation, or air conditioning and
480     distribution system;
481          (e) caulking or weatherstripping;
482          (f) a light fixture that does not increase the overall illumination of a building unless an
483     increase is necessary to conform with the applicable building code;
484          (g) an energy recovery system;
485          (h) a daylighting system;
486          (i) measures to reduce the consumption of water, through conservation or more
487     efficient use of water, including:
488          (i) installation of a low-flow toilet or showerhead;
489          (ii) installation of a timer or timing system for a hot water heater; or
490          (iii) installation of a rain catchment system; or
491          (j) any other modified, installed, or remodeled fixture that is approved as a utility
492     cost-savings measure by the governing body.

493          [(3)] (4) "Finance" or "financing" includes the issuing of bonds by a municipality,
494     county, or state university for the purpose of using a portion, or all or substantially all of the
495     proceeds to pay for or to reimburse the user, lender, or the user or lender's designee for the
496     costs of the acquisition of facilities of a project, or to create funds for the project itself where
497     appropriate, whether these costs are incurred by the municipality, the county, the state
498     university, the user, or a designee of the user. If title to or in these facilities at all times remains
499     in the user, the bonds of the municipality or county shall be secured by a pledge of one or more
500     notes, debentures, bonds, other secured or unsecured debt obligations of the user or lender, or
501     the sinking fund or other arrangement as in the judgment of the governing body is appropriate
502     for the purpose of assuring repayment of the bond obligations to investors in accordance with
503     their terms.
504          [(4)] (5) "Governing body" means:
505          (a) for a county, city, town, or metro township, the legislative body of the county, city,
506     town, or metro township;
507          (b) for the military installation development authority created in Section 63H-1-201,
508     the board, as defined in Section 63H-1-102;
509          (c) for a state university except as provided in Subsection [(4)(d),] (5)(d), the board or
510     body having the control and supervision of the state university; and
511          (d) for a nonprofit corporation or foundation created by and operating under the
512     auspices of a state university, the board of directors or board of trustees of that corporation or
513     foundation.
514          [(5)] (6) (a) "Industrial park" means land, including all necessary rights, appurtenances,
515     easements, and franchises relating to it, acquired and developed by a municipality, county, or
516     state university for the establishment and location of a series of sites for plants and other
517     buildings for industrial, distribution, and wholesale use.
518          (b) "Industrial park" includes the development of the land for an industrial park under
519     this chapter or the acquisition and provision of water, sewerage, drainage, street, road,
520     sidewalk, curb, gutter, street lighting, electrical distribution, railroad, or docking facilities, or
521     any combination of them, but only to the extent that these facilities are incidental to the use of
522     the land as an industrial park.
523          [(6)] (7) "Lender" means a trust company, savings bank, savings and loan association,

524     bank, credit union, or any other lending institution that lends, loans, or leases proceeds of a
525     financing to the user or a user's designee.
526          [(7)] (8) "Mortgage" means a mortgage, trust deed, or other security device.
527          [(8)] (9) "Municipality" means any incorporated city, town, or metro township in the
528     state, including cities or towns operating under home rule charters.
529          [(9)] (10) "Pollution" means any form of environmental pollution including water
530     pollution, air pollution, pollution caused by solid waste disposal, thermal pollution, radiation
531     contamination, or noise pollution.
532          [(10)] (11) (a) "Project" means:
533          (i) an industrial park, land, interest in land, building, structure, facility, system, fixture,
534     improvement, appurtenance, machinery, equipment, or any combination of them, whether or
535     not in existence or under construction:
536          (A) that is suitable for industrial, manufacturing, warehousing, research, business, and
537     professional office building facilities, commercial, shopping services, food, lodging, low
538     income rental housing, recreational, or any other business purposes;
539          (B) that is suitable to provide services to the general public;
540          (C) that is suitable for use by any corporation, person, or entity engaged in health care
541     services, including hospitals, nursing homes, extended care facilities, facilities for the care of
542     persons with a physical or mental disability, and administrative and support facilities; or
543          (D) that is suitable for use by a state university for the purpose of aiding in the
544     accomplishment of its authorized academic, scientific, engineering, technical, and economic
545     development functions;
546          (ii) any land, interest in land, building, structure, facility, system, fixture, improvement,
547     appurtenance, machinery, equipment, or any combination of them, used by any individual,
548     partnership, firm, company, corporation, public utility, association, trust, estate, political
549     subdivision, state agency, or any other legal entity, or its legal representative, agent, or assigns,
550     for the reduction, abatement, or prevention of pollution, including the removal or treatment of
551     any substance in process material, if that material would cause pollution if used without the
552     removal or treatment;
553          (iii) an energy efficiency upgrade;
554          (iv) a [renewable] clean energy system;

555          (v) facilities, machinery, or equipment, the manufacturing and financing of which will
556     maintain or enlarge domestic or foreign markets for Utah industrial products; or
557          (vi) any economic development or new venture investment fund to be raised other than
558     from:
559          (A) municipal or county general fund money;
560          (B) money raised under the taxing power of any county or municipality; or
561          (C) money raised against the general credit of any county or municipality.
562          (b) "Project" does not include any property, real, personal, or mixed, for the purpose of
563     the construction, reconstruction, improvement, or maintenance of a public utility as defined in
564     Section 54-2-1.
565          [(11) "Renewable energy system" means a product, system, device, or interacting group
566     of devices that is permanently affixed to real property and that produces energy from renewable
567     resources, including:]
568          [(a) a photovoltaic system;]
569          [(b) a solar thermal system;]
570          [(c) a wind system;]
571          [(d) a geothermal system, including:]
572          [(i) a direct-use system; or]
573          [(ii) a ground source heat pump system;]
574          [(e) a micro-hydro system; or]
575          [(f) another renewable energy system approved by the governing body.]
576          (12) "State university" means an institution of higher education as described in Section
577     53B-2-101 and includes any nonprofit corporation or foundation created by and operating
578     under their authority.
579          (13) "User" means the person, whether natural or corporate, who will occupy, operate,
580     maintain, and employ the facilities of, or manage and administer a project after the financing,
581     acquisition, or construction of it, whether as owner, manager, purchaser, lessee, or otherwise.
582          Section 8. Section 11-42a-102 is amended to read:
583          11-42a-102. Definitions.
584          (1) "Air quality standards" means that a vehicle's emissions are equal to or cleaner than
585     the standards established in bin 4 Table S04-1, of 40 C.F.R. 86.1811-04(c)(6).

586          (2) (a) "Assessment" means the assessment that a local entity or the C-PACE district
587     levies on private property under this chapter to cover the costs of an energy efficiency upgrade,
588     a [renewable] clean energy system, or an electric vehicle charging infrastructure.
589          (b) "Assessment" does not constitute a property tax but shares the same priority lien as
590     a property tax.
591          (3) "Assessment fund" means a special fund that a local entity establishes under
592     Section 11-42a-206.
593          (4) "Benefitted property" means private property within an energy assessment area that
594     directly benefits from improvements.
595          (5) "Bond" means an assessment bond and a refunding assessment bond.
596          (6) (a) "Clean energy system" means a product, system, device, or interacting group of
597     devices that is permanently affixed to commercial or industrial real property not located in the
598     certified service area of a distribution electrical cooperative, as that term is defined in Section
599     54-2-1, and:
600          (i) produces energy from renewable resources, including:
601          (A) a photovoltaic system;
602          (B) a solar thermal system;
603          (C) a wind system;
604          (D) a geothermal system, including a generation system, a direct-use system, or a
605     ground source heat pump system;
606          (E) a micro-hydro system;
607          (F) a biofuel system;
608          (G) energy derived from nuclear fuel; or
609          (H) any other clean source system that the governing body of the local entity approves;
610          (ii) stores energy, including:
611          (A) a battery storage system; or
612          (B) any other energy storing system that the governing body or chief executive officer
613     of a local entity approves; or
614          (iii) any improvement that relates physically or functionally to any of the products,
615     systems, or devices listed in Subsection (6)(a)(i) or (ii).
616          (b) "Clean energy system" does not include a system described in Subsection (6)(a)(i)

617     if the system provides energy to property outside the energy assessment area, unless the system:
618          (i) (A) existed before the creation of the energy assessment area; and
619          (B) beginning before January 1, 2017, provides energy to property outside of the area
620     that became the energy assessment area; or
621          (ii) provides energy to property outside the energy assessment area under an agreement
622     with a public electrical utility that is substantially similar to agreements for other renewable
623     energy systems that are not funded under this chapter.
624          [(6)] (7) (a) "Commercial or industrial real property" means private real property used
625     directly or indirectly or held for one of the following purposes or activities, regardless of
626     whether the purpose or activity is for profit:
627          (i) commercial;
628          (ii) mining;
629          (iii) agricultural;
630          (iv) industrial;
631          (v) manufacturing;
632          (vi) trade;
633          (vii) professional;
634          (viii) a private or public club;
635          (ix) a lodge;
636          (x) a business; or
637          (xi) a similar purpose.
638          (b) "Commercial or industrial real property" includes:
639          (i) private real property that is used as or held for dwelling purposes and contains:
640          (A) more than four rental units; or
641          (B) one or more owner-occupied or rental condominium units affiliated with a hotel;
642     and
643          (ii) real property owned by:
644          (A) the military installation development authority, created in Section 63H-1-201; or
645          (B) the Utah Inland Port Authority, created in Section 11-58-201.
646          [(7)] (8) "Contract price" means:
647          (a) up to 100% of the cost of installing, acquiring, refinancing, or reimbursing for an

648     improvement, as determined by the owner of the property benefitting from the improvement; or
649          (b) the amount payable to one or more contractors for the assessment, design,
650     engineering, inspection, and construction of an improvement.
651          [(8)] (9) "C-PACE" means commercial property assessed clean energy.
652          [(9)] (10) "C-PACE district" means the statewide authority established in Section
653     11-42a-106 to implement the C-PACE Act in collaboration with governing bodies, under the
654     direction of OED.
655          [(10)] (11) "Electric vehicle charging infrastructure" means equipment that is:
656          (a) permanently affixed to commercial or industrial real property; and
657          (b) designed to deliver electric energy to a qualifying electric vehicle or a qualifying
658     plug-in hybrid vehicle.
659          [(11)] (12) "Energy assessment area" means an area:
660          (a) within the jurisdictional boundaries of a local entity that approves an energy
661     assessment area or, if the C-PACE district or a state interlocal entity levies the assessment, the
662     C-PACE district or the state interlocal entity;
663          (b) containing only the commercial or industrial real property of owners who have
664     voluntarily consented to an assessment under this chapter for the purpose of financing the costs
665     of improvements that benefit property within the energy assessment area; and
666          (c) in which the proposed benefitted properties in the area are:
667          (i) contiguous; or
668          (ii) located on one or more contiguous or adjacent tracts of land that would be
669     contiguous or adjacent property but for an intervening right-of-way, including a sidewalk,
670     street, road, fixed guideway, or waterway.
671          [(12)] (13) "Energy assessment bond" means a bond:
672          (a) issued under Section 11-42a-401; and
673          (b) payable in part or in whole from assessments levied in an energy assessment area.
674          [(13)] (14) "Energy assessment lien" means a lien on property within an energy
675     assessment area that arises from the levy of an assessment in accordance with Section
676     11-42a-301.
677          [(14)] (15) "Energy assessment ordinance" means an ordinance that a local entity
678     adopts under Section 11-42a-201 that:

679          (a) designates an energy assessment area;
680          (b) levies an assessment on benefitted property within the energy assessment area; and
681          (c) if applicable, authorizes the issuance of energy assessment bonds.
682          [(15)] (16) "Energy assessment resolution" means one or more resolutions adopted by a
683     local entity under Section 11-42a-201 that:
684          (a) designates an energy assessment area;
685          (b) levies an assessment on benefitted property within the energy assessment area; and
686          (c) if applicable, authorizes the issuance of energy assessment bonds.
687          [(16)] (17) "Energy efficiency upgrade" means an improvement that is:
688          (a) permanently affixed to commercial or industrial real property; and
689          (b) designed to reduce energy or water consumption, including:
690          (i) insulation in:
691          (A) a wall, roof, floor, or foundation; or
692          (B) a heating and cooling distribution system;
693          (ii) a window or door, including:
694          (A) a storm window or door;
695          (B) a multiglazed window or door;
696          (C) a heat-absorbing window or door;
697          (D) a heat-reflective glazed and coated window or door;
698          (E) additional window or door glazing;
699          (F) a window or door with reduced glass area; or
700          (G) other window or door modifications;
701          (iii) an automatic energy control system;
702          (iv) in a building or a central plant, a heating, ventilation, or air conditioning and
703     distribution system;
704          (v) caulk or weatherstripping;
705          (vi) a light fixture that does not increase the overall illumination of a building, unless
706     an increase is necessary to conform with the applicable building code;
707          (vii) an energy recovery system;
708          (viii) a daylighting system;
709          (ix) measures to reduce the consumption of water, through conservation or more

710     efficient use of water, including installation of:
711          (A) low-flow toilets and showerheads;
712          (B) timer or timing systems for a hot water heater; or
713          (C) rain catchment systems;
714          (x) a modified, installed, or remodeled fixture that is approved as a utility cost-saving
715     measure by the governing body or executive of a local entity;
716          (xi) measures or other improvements to effect seismic upgrades;
717          (xii) structures, measures, or other improvements to provide automated parking or
718     parking that reduces land use;
719          (xiii) the extension of an existing natural gas distribution company line;
720          (xiv) an energy efficient elevator, escalator, or other vertical transport device;
721          (xv) any other improvement that the governing body or executive of a local entity
722     approves as an energy efficiency upgrade; or
723          (xvi) any improvement that relates physically or functionally to any of the
724     improvements listed in Subsections [(16)(b)(i)] (17)(b)(i) through (xv).
725          [(17)] (18) "Governing body" means:
726          (a) for a county, city, town, or metro township, the legislative body of the county, city,
727     town, or metro township;
728          (b) for a special district, the board of trustees of the special district;
729          (c) for a special service district:
730          (i) if no administrative control board has been appointed under Section 17D-1-301, the
731     legislative body of the county, city, town, or metro township that established the special service
732     district; or
733          (ii) if an administrative control board has been appointed under Section 17D-1-301, the
734     administrative control board of the special service district;
735          (d) for the military installation development authority created in Section 63H-1-201,
736     the board, as that term is defined in Section 63H-1-102; and
737          (e) for the Utah Inland Port Authority, created in Section 11-58-201, the board, as
738     defined in Section 11-58-102.
739          [(18)] (19) "Improvement" means a publicly or privately owned energy efficiency
740     upgrade, [renewable] clean energy system, or electric vehicle charging infrastructure that:

741          (a) a property owner has requested; or
742          (b) has been or is being installed on a property for the benefit of the property owner.
743          [(19)] (20) "Incidental refunding costs" means any costs of issuing a refunding
744     assessment bond and calling, retiring, or paying prior bonds, including:
745          (a) legal and accounting fees;
746          (b) charges of financial advisors, escrow agents, certified public accountant verification
747     entities, and trustees;
748          (c) underwriting discount costs, printing costs, and the costs of giving notice;
749          (d) any premium necessary in the calling or retiring of prior bonds;
750          (e) fees to be paid to the local entity to issue the refunding assessment bond and to
751     refund the outstanding prior bonds;
752          (f) any other costs that the governing body determines are necessary and proper to incur
753     in connection with the issuance of a refunding assessment bond; and
754          (g) any interest on the prior bonds that is required to be paid in connection with the
755     issuance of the refunding assessment bond.
756          [(20)] (21) "Installment payment date" means the date on which an installment
757     payment of an assessment is payable.
758          [(21)] (22) "Jurisdictional boundaries" means:
759          (a) for the C-PACE district or any state interlocal entity, the boundaries of the state;
760     and
761          (b) for each local entity, the boundaries of the local entity.
762          [(22)] (23) (a) "Local entity" means:
763          (i) a county, city, town, or metro township;
764          (ii) a special service district, a special district, or an interlocal entity as that term is
765     defined in Section 11-13-103;
766          (iii) a state interlocal entity;
767          (iv) the military installation development authority, created in Section 63H-1-201;
768          (v) the Utah Inland Port Authority, created in Section 11-58-201; or
769          (vi) any political subdivision of the state.
770          (b) "Local entity" includes the C-PACE district solely in connection with:
771          (i) the designation of an energy assessment area;

772          (ii) the levying of an assessment; and
773          (iii) the assignment of an energy assessment lien to a third-party lender under Section
774     11-42a-302.
775          [(23)] (24) "Local entity obligations" means energy assessment bonds and refunding
776     assessment bonds that a local entity issues.
777          [(24)] (25) "OED" means the Office of Energy Development created in Section
778     79-6-401.
779          [(25)] (26) "OEM vehicle" means the same as that term is defined in Section 19-1-402.
780          [(26)] (27) "Overhead costs" means the actual costs incurred or the estimated costs to
781     be incurred in connection with an energy assessment area, including:
782          (a) appraisals, legal fees, filing fees, facilitation fees, and financial advisory charges;
783          (b) underwriting fees, placement fees, escrow fees, trustee fees, and paying agent fees;
784          (c) publishing and mailing costs;
785          (d) costs of levying an assessment;
786          (e) recording costs; and
787          (f) all other incidental costs.
788          [(27)] (28) "Parameters resolution" means a resolution or ordinance that a local entity
789     adopts in accordance with Section 11-42a-201.
790          [(28)] (29) "Prior bonds" means the energy assessment bonds refunded in part or in
791     whole by a refunding assessment bond.
792          [(29)] (30) "Prior energy assessment ordinance" means the ordinance levying the
793     assessments from which the prior bonds are payable.
794          [(30)] (31) "Prior energy assessment resolution" means the resolution levying the
795     assessments from which the prior bonds are payable.
796          [(31)] (32) "Property" includes real property and any interest in real property, including
797     water rights and leasehold rights.
798          [(32)] (33) "Public electrical utility" means a large-scale electric utility as that term is
799     defined in Section 54-2-1.
800          [(33)] (34) "Qualifying electric vehicle" means a vehicle that:
801          (a) meets air quality standards;
802          (b) is not fueled by natural gas;

803          (c) draws propulsion energy from a battery with at least 10 kilowatt hours of capacity;
804     and
805          (d) is an OEM vehicle except that the vehicle is fueled by a fuel described in
806     Subsection [(33)(c).] (34)(c).
807          [(34)] (35) "Qualifying plug-in hybrid vehicle" means a vehicle that:
808          (a) meets air quality standards;
809          (b) is not fueled by natural gas or propane;
810          (c) has a battery capacity that meets or exceeds the battery capacity described in
811     Subsection 30D(b)(3), Internal Revenue Code; and
812          (d) is fueled by a combination of electricity and:
813          (i) diesel fuel;
814          (ii) gasoline; or
815          (iii) a mixture of gasoline and ethanol.
816          [(35)] (36) "Reduced payment obligation" means the full obligation of an owner of
817     property within an energy assessment area to pay an assessment levied on the property after the
818     local entity has reduced the assessment because of the issuance of a refunding assessment
819     bond, in accordance with Section 11-42a-403.
820          [(36)] (37) "Refunding assessment bond" means an assessment bond that a local entity
821     issues under Section 11-42a-403 to refund, in part or in whole, energy assessment bonds.
822          [(37) (a) "Renewable energy system" means a product, system, device, or interacting
823     group of devices that is permanently affixed to commercial or industrial real property not
824     located in the certified service area of a distribution electrical cooperative, as that term is
825     defined in Section 54-2-1, and:]
826          [(i) produces energy from renewable resources, including:]
827          [(A) a photovoltaic system;]
828          [(B) a solar thermal system;]
829          [(C) a wind system;]
830          [(D) a geothermal system, including a generation system, a direct-use system, or a
831     ground source heat pump system;]
832          [(E) a microhydro system;]
833          [(F) a biofuel system; or]

834          [(G) any other renewable source system that the governing body of the local entity
835     approves;]
836          [(ii) stores energy, including:]
837          [(A) a battery storage system; or]
838          [(B) any other energy storing system that the governing body or chief executive officer
839     of a local entity approves; or]
840          [(iii) any improvement that relates physically or functionally to any of the products,
841     systems, or devices listed in Subsection (37)(a)(i) or (ii).]
842          [(b) "Renewable energy system" does not include a system described in Subsection
843     (37)(a)(i) if the system provides energy to property outside the energy assessment area, unless
844     the system:]
845          [(i) (A) existed before the creation of the energy assessment area; and]
846          [(B) beginning before January 1, 2017, provides energy to property outside of the area
847     that became the energy assessment area; or]
848          [(ii) provides energy to property outside the energy assessment area under an
849     agreement with a public electrical utility that is substantially similar to agreements for other
850     renewable energy systems that are not funded under this chapter.]
851          (38) "Special district" means a special district under Title 17B, Limited Purpose Local
852     Government Entities - Special Districts.
853          (39) "Special service district" means the same as that term is defined in Section
854     17D-1-102.
855          (40) "State interlocal entity" means:
856          (a) an interlocal entity created under Chapter 13, Interlocal Cooperation Act, by two or
857     more counties, cities, towns, or metro townships that collectively represent at least a majority
858     of the state's population; or
859          (b) an entity that another state authorized, before January 1, 2017, to issue bonds,
860     notes, or other obligations or refunding obligations to finance or refinance projects in the state.
861          (41) "Third-party lender" means a trust company, savings bank, savings and loan
862     association, bank, credit union, or any other entity that provides loans directly to property
863     owners for improvements authorized under this chapter.
864          Section 9. Section 11-42a-103 is amended to read:

865          11-42a-103. No limitation on other local entity powers -- Conflict with other
866     statutory provisions.
867          (1) This chapter does not limit a power that a local entity has under other applicable
868     law to:
869          (a) make an improvement or provide a service;
870          (b) create a district;
871          (c) levy an assessment or tax; or
872          (d) issue a bond or a refunding bond.
873          (2) If there is a conflict between a provision of this chapter and any other statutory
874     provision, the provision of this chapter governs.
875          (3) After January 1, 2017, a local entity or the C-PACE district may create an energy
876     assessment area within the certificated service territory of a public electrical utility for the
877     installation of a [renewable] clean energy system with a nameplate rating of:
878          (a) no more than 2.0 megawatts; or
879          (b) more than 2.0 megawatts to serve load that the public electrical utility does not
880     already serve.
881          Section 10. Section 11-58-102 is amended to read:
882          11-58-102. Definitions.
883          As used in this chapter:
884          (1) "Authority" means the Utah Inland Port Authority, created in Section 11-58-201.
885          (2) "Authority jurisdictional land" means land within the authority boundary
886     delineated:
887          (a) in the electronic shapefile that is the electronic component of H.B. 2001, Utah
888     Inland Port Authority Amendments, 2018 Second Special Session; and
889          (b) beginning April 1, 2020, as provided in Subsection 11-58-202(3).
890          (3) "Base taxable value" means:
891          (a) (i) except as provided in Subsection (3)(a)(ii), for a project area that consists of the
892     authority jurisdictional land, the taxable value of authority jurisdictional land in calendar year
893     2018; and
894          (ii) for an area described in Section 11-58-600.7, the taxable value of that area in
895     calendar year 2017; or

896          (b) for a project area that consists of land outside the authority jurisdictional land, the
897     taxable value of property within any portion of a project area, as designated by board
898     resolution, from which the property tax differential will be collected, as shown upon the
899     assessment roll last equalized before the year in which the authority adopts a project area plan
900     for that area.
901          (4) "Board" means the authority's governing body, created in Section 11-58-301.
902          (5) "Business plan" means a plan designed to facilitate, encourage, and bring about
903     development of the authority jurisdictional land to achieve the goals and objectives described
904     in Subsection 11-58-203(1), including the development and establishment of an inland port.
905          (6) "Contaminated land" means land:
906          (a) within a project area; and
907          (b) that contains hazardous materials, as defined in Section 19-6-302, hazardous
908     substances, as defined in Section 19-6-302, or landfill material on, in, or under the land.
909          (7) "Development" means:
910          (a) the demolition, construction, reconstruction, modification, expansion, or
911     improvement of a building, utility, infrastructure, landscape, parking lot, park, trail,
912     recreational amenity, or other facility, including public infrastructure and improvements; and
913          (b) the planning of, arranging for, or participation in any of the activities listed in
914     Subsection (7)(a).
915          (8) "Development project" means a project for the development of land within a
916     project area.
917          (9) "Inland port" means one or more sites that:
918          (a) contain multimodal facilities, intermodal facilities, or other facilities that:
919          (i) are related but may be separately owned and managed; and
920          (ii) together are intended to:
921          (A) allow global trade to be processed and altered by value-added services as goods
922     move through the supply chain;
923          (B) provide a regional merging point for transportation modes for the distribution of
924     goods to and from ports and other locations in other regions;
925          (C) provide cargo-handling services to allow freight consolidation and distribution,
926     temporary storage, customs clearance, and connection between transport modes; and

927          (D) provide international logistics and distribution services, including freight
928     forwarding, customs brokerage, integrated logistics, and information systems; and
929          (b) may include a satellite customs clearance terminal, an intermodal facility, a
930     customs pre-clearance for international trade, or other facilities that facilitate, encourage, and
931     enhance regional, national, and international trade.
932          (10) "Inland port use" means a use of land:
933          (a) for an inland port;
934          (b) that directly implements or furthers the purposes of an inland port, as stated in
935     Subsection (9);
936          (c) that complements or supports the purposes of an inland port, as stated in Subsection
937     (9); or
938          (d) that depends upon the presence of the inland port for the viability of the use.
939          (11) "Intermodal facility" means a facility for transferring containerized cargo between
940     rail, truck, air, or other transportation modes.
941          (12) "Landfill material" means garbage, waste, debris, or other materials disposed of or
942     placed in a landfill.
943          (13) "Multimodal facility" means a hub or other facility for trade combining any
944     combination of rail, trucking, air cargo, and other transportation services.
945          (14) "Nonvoting member" means an individual appointed as a member of the board
946     under Subsection 11-58-302(3) who does not have the power to vote on matters of authority
947     business.
948          (15) "Project area" means:
949          (a) the authority jurisdictional land, subject to Section 11-58-605; or
950          (b) land outside the authority jurisdictional land, whether consisting of a single
951     contiguous area or multiple noncontiguous areas, described in a project area plan or draft
952     project area plan, where the development project set forth in the project area plan or draft
953     project area plan takes place or is proposed to take place.
954          (16) "Project area budget" means a multiyear projection of annual or cumulative
955     revenues and expenses and other fiscal matters pertaining to the project area.
956          (17) "Project area plan" means a written plan that, after its effective date, guides and
957     controls the development within a project area.

958          (18) "Property tax" includes a privilege tax and each levy on an ad valorem basis on
959     tangible or intangible personal or real property.
960          (19) "Property tax differential":
961          (a) means the difference between:
962          (i) the amount of property tax revenues generated each tax year by all taxing entities
963     from a project area, using the current assessed value of the property; and
964          (ii) the amount of property tax revenues that would be generated from that same area
965     using the base taxable value of the property; and
966          (b) does not include property tax revenue from:
967          (i) a county additional property tax or multicounty assessing and collecting levy
968     imposed in accordance with Section 59-2-1602;
969          (ii) a judgment levy imposed by a taxing entity under Section 59-2-1328 or 59-2-1330;
970     or
971          (iii) a levy imposed by a taxing entity under Section 11-14-310 to pay for a general
972     obligation bond.
973          (20) "Public entity" means:
974          (a) the state, including each department, division, or other agency of the state; or
975          (b) a county, city, town, metro township, school district, special district, special service
976     district, interlocal cooperation entity, community reinvestment agency, or other political
977     subdivision of the state, including the authority.
978          (21) (a) "Public infrastructure and improvements" means infrastructure, improvements,
979     facilities, or buildings that:
980          (i) (A) benefit the public and are owned by a public entity or a utility; or
981          (B) benefit the public and are publicly maintained or operated by a public entity; or
982          (ii) (A) are privately owned;
983          (B) benefit the public;
984          (C) as determined by the board, provide a substantial benefit to the development and
985     operation of a project area; and
986          (D) are built according to applicable county or municipal design and safety standards.
987          (b) "Public infrastructure and improvements" includes:
988          (i) facilities, lines, or systems that provide:

989          (A) water, chilled water, or steam; or
990          (B) sewer, storm drainage, natural gas, electricity, energy storage, [renewable] clean
991     energy, microgrids, or telecommunications service;
992          (ii) streets, roads, curb, gutter, sidewalk, walkways, solid waste facilities, parking
993     facilities, rail lines, intermodal facilities, multimodal facilities, and public transportation
994     facilities;
995          (iii) an inland port; and
996          (iv) infrastructure, improvements, facilities, or buildings that are developed as part of a
997     remediation project.
998          (22) "Remediation" includes:
999          (a) activities for the cleanup, rehabilitation, and development of contaminated land;
1000     and
1001          (b) acquiring an interest in land within a remediation project area.
1002          (23) "Remediation differential" means property tax differential generated from a
1003     remediation project area.
1004          (24) "Remediation project" means a project for the remediation of contaminated land
1005     that:
1006          (a) is owned by:
1007          (i) the state or a department, division, or other instrumentality of the state;
1008          (ii) an independent entity, as defined in Section 63E-1-102; or
1009          (iii) a political subdivision of the state; and
1010          (b) became contaminated land before the owner described in Subsection (24)(a)
1011     obtained ownership of the land.
1012          (25) "Remediation project area" means a project area consisting of contaminated land
1013     that is or is expected to become the subject of a remediation project.
1014          (26) "Shapefile" means the digital vector storage format for storing geometric location
1015     and associated attribute information.
1016          (27) "Taxable value" means the value of property as shown on the last equalized
1017     assessment roll.
1018          (28) "Taxing entity":
1019          (a) means a public entity that levies a tax on property within a project area; and

1020          (b) does not include a public infrastructure district that the authority creates under Title
1021     17D, Chapter 4, Public Infrastructure District Act.
1022          (29) "Voting member" means an individual appointed or designated as a member of the
1023     board under Subsection 11-58-302(2).
1024          Section 11. Section 11-58-203 is amended to read:
1025          11-58-203. Policies and objectives of the authority -- Additional duties of the
1026     authority.
1027          (1) The policies and objectives of the authority are to:
1028          (a) maximize long-term economic benefits to the area, the region, and the state;
1029          (b) maximize the creation of high-quality jobs;
1030          (c) respect and maintain sensitivity to the unique natural environment of areas in
1031     proximity to the authority jurisdictional land and land in other authority project areas;
1032          (d) improve air quality and minimize resource use;
1033          (e) respect existing land use and other agreements and arrangements between property
1034     owners within the authority jurisdictional land and within other authority project areas and
1035     applicable governmental authorities;
1036          (f) promote and encourage development and uses that are compatible with or
1037     complement uses in areas in proximity to the authority jurisdictional land or land in other
1038     authority project areas;
1039          (g) take advantage of the authority jurisdictional land's strategic location and other
1040     features, including the proximity to transportation and other infrastructure and facilities, that
1041     make the authority jurisdictional land attractive to:
1042          (i) businesses that engage in regional, national, or international trade; and
1043          (ii) businesses that complement businesses engaged in regional, national, or
1044     international trade;
1045          (h) facilitate the transportation of goods;
1046          (i) coordinate trade-related opportunities to export Utah products nationally and
1047     internationally;
1048          (j) support and promote land uses on the authority jurisdictional land and land in other
1049     authority project areas that generate economic development, including rural economic
1050     development;

1051          (k) establish a project of regional significance;
1052          (l) facilitate an intermodal facility;
1053          (m) support uses of the authority jurisdictional land for inland port uses, including
1054     warehousing, light manufacturing, and distribution facilities;
1055          (n) facilitate an increase in trade in the region and in global commerce;
1056          (o) promote the development of facilities that help connect local businesses to potential
1057     foreign markets for exporting or that increase foreign direct investment;
1058          (p) encourage all class 5 though 8 designated truck traffic entering the authority
1059     jurisdictional land to meet the heavy-duty highway compression-ignition diesel engine and
1060     urban bus exhaust emission standards for year 2007 and later;
1061          (q) encourage the development and use of cost-efficient [renewable] clean energy in
1062     project areas;
1063          (r) aggressively pursue world-class businesses that employ cutting-edge technologies to
1064     locate within a project area; and
1065          (s) pursue land remediation and development opportunities for publicly owned land to
1066     add value to a project area.
1067          (2) In fulfilling its duties and responsibilities relating to the development of the
1068     authority jurisdictional land and land in other authority project areas and to achieve and
1069     implement the development policies and objectives under Subsection (1), the authority shall:
1070          (a) work to identify funding sources, including federal, state, and local government
1071     funding and private funding, for capital improvement projects in and around the authority
1072     jurisdictional land and land in other authority project areas and for an inland port;
1073          (b) review and identify land use and zoning policies and practices to recommend to
1074     municipal land use policymakers and administrators that are consistent with and will help to
1075     achieve:
1076          (i) the policies and objectives stated in Subsection (1); and
1077          (ii) the mutual goals of the state and local governments that have authority
1078     jurisdictional land with their boundaries with respect to the authority jurisdictional land;
1079          (c) consult and coordinate with other applicable governmental entities to improve and
1080     enhance transportation and other infrastructure and facilities in order to maximize the potential
1081     of the authority jurisdictional land to attract, retain, and service users who will help maximize

1082     the long-term economic benefit to the state; and
1083          (d) pursue policies that the board determines are designed to avoid or minimize
1084     negative environmental impacts of development.
1085          (3) The board may consider the emissions profile of road, yard, or rail vehicles:
1086          (a) in determining access by those vehicles to facilities that the authority owns or
1087     finances; or
1088          (b) in setting fees applicable to those vehicles for the use of facilities that the authority
1089     owns or finances.
1090          Section 12. Section 11-59-102 is amended to read:
1091          11-59-102. Definitions.
1092          As used in this chapter:
1093          (1) "Authority" means the Point of the Mountain State Land Authority, created in
1094     Section 11-59-201.
1095          (2) "Board" means the authority's board, created in Section 11-59-301.
1096          (3) "Development":
1097          (a) means the construction, reconstruction, modification, expansion, or improvement of
1098     a building, utility, infrastructure, landscape, parking lot, park, trail, recreational amenity, or
1099     other facility, including:
1100          (i) the demolition or preservation or repurposing of a building, infrastructure, or other
1101     facility;
1102          (ii) surveying, testing, locating existing utilities and other infrastructure, and other
1103     preliminary site work; and
1104          (iii) any associated planning, design, engineering, and related activities; and
1105          (b) includes all activities associated with:
1106          (i) marketing and business recruiting activities and efforts;
1107          (ii) leasing, or selling or otherwise disposing of, all or any part of the point of the
1108     mountain state land; and
1109          (iii) planning and funding for mass transit infrastructure to service the point of the
1110     mountain state land.
1111          (4) "Facilities division" means the Division of Facilities Construction and
1112     Management, created in Section 63A-5b-301.

1113          (5) "New correctional facility" means the state correctional facility being developed in
1114     Salt Lake City to replace the state correctional facility in Draper.
1115          (6) "Point of the mountain state land" means the approximately 700 acres of
1116     state-owned land in Draper, including land used for the operation of a state correctional facility
1117     until completion of the new correctional facility and state-owned land in the vicinity of the
1118     current state correctional facility.
1119          (7) "Public entity" means:
1120          (a) the state, including each department, division, or other agency of the state; or
1121          (b) a county, city, town, metro township, school district, special district, special service
1122     district, interlocal cooperation entity, community reinvestment agency, or other political
1123     subdivision of the state, including the authority.
1124          (8) "Publicly owned infrastructure and improvements":
1125          (a) means infrastructure, improvements, facilities, or buildings that:
1126          (i) benefit the public; and
1127          (ii) (A) are owned by a public entity or a utility; or
1128          (B) are publicly maintained or operated by a public entity; and
1129          (b) includes:
1130          (i) facilities, lines, or systems that provide:
1131          (A) water, chilled water, or steam; or
1132          (B) sewer, storm drainage, natural gas, electricity, energy storage, [renewable] clean
1133     energy, microgrids, or telecommunications service;
1134          (ii) streets, roads, curb, gutter, sidewalk, walkways, solid waste facilities, parking
1135     facilities, and public transportation facilities; and
1136          (iii) greenspace, parks, trails, recreational amenities, or other similar facilities.
1137          (9) "Taxing entity" means the same as that term is defined in Section 59-2-102.
1138          Section 13. Section 11-59-202 is amended to read:
1139          11-59-202. Authority powers.
1140          (1) The authority may:
1141          (a) as provided in this chapter, plan, manage, and implement the development of the
1142     point of the mountain state land, including the ongoing operation of facilities on the point of
1143     the mountain state land;

1144          (b) undertake, or engage a consultant to undertake, any study, effort, or activity the
1145     board considers appropriate to assist or inform the board about any aspect of the proposed
1146     development of the point of the mountain state land, including the best development model and
1147     financial projections relevant to the authority's efforts to fulfill its duties and responsibilities
1148     under this section and Section 11-59-203;
1149          (c) sue and be sued;
1150          (d) enter into contracts generally, including a contract for the sharing of records under
1151     Section 63G-2-206;
1152          (e) buy, obtain an option upon, or otherwise acquire any interest in real or personal
1153     property, as necessary to accomplish the duties and responsibilities of the authority, including
1154     an interest in real property, apart from point of the mountain state land, or personal property,
1155     outside point of the mountain state land, for publicly owned infrastructure and improvements,
1156     if the board considers the purchase, option, or other interest acquisition to be necessary for
1157     fulfilling the authority's development objectives;
1158          (f) sell, convey, grant, dispose of by gift, or otherwise dispose of any interest in real or
1159     personal property;
1160          (g) enter into a lease agreement on real or personal property, either as lessee or lessor;
1161          (h) provide for the development of the point of the mountain state land under one or
1162     more contracts, including the development of publicly owned infrastructure and improvements
1163     and other infrastructure and improvements on or related to the point of the mountain state land;
1164          (i) exercise powers and perform functions under a contract, as authorized in the
1165     contract;
1166          (j) accept financial or other assistance from any public or private source for the
1167     authority's activities, powers, and duties, and expend any funds so received for any of the
1168     purposes of this chapter;
1169          (k) borrow money, contract with, or accept financial or other assistance from the
1170     federal government, a public entity, or any other source for any of the purposes of this chapter
1171     and comply with any conditions of the loan, contract, or assistance;
1172          (l) subject to Subsection (2), issue bonds to finance the undertaking of any
1173     development objectives of the authority, including bonds under Title 11, Chapter 17, Utah
1174     Industrial Facilities and Development Act, and bonds under Title 11, Chapter 42, Assessment

1175     Area Act;
1176          (m) hire employees, including contract employees, in addition to or in place of staff
1177     provided under Section 11-59-304;
1178          (n) transact other business and exercise all other powers provided for in this chapter;
1179          (o) enter into a development agreement with a developer of some or all of the point of
1180     the mountain state land;
1181          (p) provide for or finance an energy efficiency upgrade, a [renewable] clean energy
1182     system, or electric vehicle charging infrastructure as defined in Section 11-42a-102, in
1183     accordance with Title 11, Chapter 42a, Commercial Property Assessed Clean Energy Act;
1184          (q) exercise powers and perform functions that the authority is authorized by statute to
1185     exercise or perform;
1186          (r) enter into one or more interlocal agreements under Title 11, Chapter 13, Interlocal
1187     Cooperation Act, with one or more local government entities for the delivery of services to the
1188     point of the mountain state land;
1189          (s) enter into an agreement with the federal government or an agency of the federal
1190     government, as the board considers necessary or advisable, to enable or assist the authority to
1191     exercise its powers or fulfill its duties and responsibilities under this chapter;
1192          (t) provide funding for the development of publicly owned infrastructure and
1193     improvements or other infrastructure and improvements on or related to the point of the
1194     mountain state land; and
1195          (u) impose impact fees under Title 11, Chapter 36a, Impact Fees Act, and other fees
1196     related to development activities.
1197          (2) The authority may not issue bonds under this part unless the board first:
1198          (a) adopts a parameters resolution for the bonds that sets forth:
1199          (i) the maximum:
1200          (A) amount of bonds;
1201          (B) term; and
1202          (C) interest rate; and
1203          (ii) the expected security for the bonds; and
1204          (b) submits the parameters resolution for review and recommendation to the State
1205     Finance Review Commission created in Section 63C-25-201.

1206          (3) No later than 60 days after the closing day of any bonds, the authority shall report
1207     the bonds issuance, including the amount of the bonds, terms, interest rate, and security, to:
1208          (a) the Executive Appropriations Committee; and
1209          (b) the State Finance Review Commission created in Section 63C-25-201.
1210          Section 14. Section 11-65-101 is amended to read:
1211          11-65-101. Definitions.
1212          As used in this chapter:
1213          (1) "Adjacent political subdivision" means a political subdivision of the state with a
1214     boundary that abuts the lake authority boundary or includes lake authority land.
1215          (2) "Board" means the lake authority's governing body, created in Section 11-65-301.
1216          (3) "Lake authority" means the Utah Lake Authority, created in Section 11-65-201.
1217          (4) "Lake authority boundary" means the boundary:
1218          (a) defined by recorded boundary settlement agreements between private landowners
1219     and the Division of Forestry, Fire, and State Lands; and
1220          (b) that separates privately owned land from Utah Lake sovereign land.
1221          (5) "Lake authority land" means land on the lake side of the lake authority boundary.
1222          (6) "Management" means work to coordinate and facilitate the improvement of Utah
1223     Lake, including work to enhance the long-term viability and health of Utah Lake and to
1224     produce economic, aesthetic, recreational, environmental, and other benefits for the state,
1225     consistent with the strategies, policies, and objectives described in this chapter.
1226          (7) "Management plan" means a plan to conceptualize, design, facilitate, coordinate,
1227     encourage, and bring about the management of the lake authority land to achieve the policies
1228     and objectives described in Section 11-65-203.
1229          (8) "Nonvoting member" means an individual appointed as a member of the board
1230     under Subsection 11-65-302(6) who does not have the power to vote on matters of lake
1231     authority business.
1232          (9) "Project area" means an area that is identified in a project area plan as the area
1233     where the management described in the project area plan will occur.
1234          (10) "Project area budget" means a multiyear projection of annual or cumulative
1235     revenues and expenses and other fiscal matters pertaining to a project area.
1236          (11) "Project area plan" means a written plan that, after the plan's effective date,

1237     manages activity within a project area within the scope of a management plan.
1238          (12) "Public entity" means:
1239          (a) the state, including each department, division, or other agency of the state; or
1240          (b) a county, city, town, metro township, school district, special district, special service
1241     district, interlocal cooperation entity, community reinvestment agency, or other political
1242     subdivision of the state.
1243          (13) "Publicly owned infrastructure and improvements":
1244          (a) means infrastructure, improvements, facilities, or buildings that:
1245          (i) benefit the public; and
1246          (ii) (A) are owned by a public entity or a utility; or
1247          (B) are publicly maintained or operated by a public entity; and
1248          (b) includes:
1249          (i) facilities, lines, or systems that provide:
1250          (A) water, chilled water, or steam; or
1251          (B) sewer, storm drainage, natural gas, electricity, energy storage, [renewable] clean
1252     energy, microgrids, or telecommunications service; and
1253          (ii) streets, roads, curbs, gutters, sidewalks, walkways, solid waste facilities, parking
1254     facilities, and public transportation facilities.
1255          (14) "Sovereign land" means land:
1256          (a) lying below the ordinary high water mark of a navigable body of water at the date
1257     of statehood; and
1258          (b) owned by the state by virtue of the state's sovereignty.
1259          (15) "Utah Lake" includes all waters of Utah Lake and all land, whether or not
1260     submerged under water, within the lake authority boundary.
1261          (16) "Voting member" means an individual appointed as a member of the board under
1262     Subsection 11-65-302(2).
1263          Section 15. Section 11-65-203 is amended to read:
1264          11-65-203. Policies and objectives of the lake authority -- Additional duties of the
1265     lake authority.
1266          (1) The policies and objectives of the lake authority are to:
1267          (a) protect and improve:

1268          (i) the quality of Utah Lake's water, consistent with the Clean Water Act, 33 U.S.C.
1269     Sec. 1251 et seq., and Title 19, Chapter 5, Water Quality Act;
1270          (ii) the beneficial and public trust uses of Utah Lake;
1271          (iii) Utah Lake's environmental quality; and
1272          (iv) the quality of Utah Lake's lakebed and sediments;
1273          (b) enhance the recreational opportunities afforded by Utah Lake;
1274          (c) enhance long-term economic benefits to the area, the region, and the state;
1275          (d) respect and maintain sensitivity to the unique natural environment of areas in and
1276     around the lake authority boundary;
1277          (e) improve air quality and minimize resource use;
1278          (f) comply with existing land use and other agreements and arrangements between
1279     property owners and applicable governmental authorities;
1280          (g) promote and encourage management and uses that are compatible with or
1281     complement the public trust and uses in areas in proximity to Utah Lake;
1282          (h) take advantage of Utah Lake's strategic location and other features that make Utah
1283     Lake attractive:
1284          (i) to residents for recreational purposes;
1285          (ii) for tourism and leisure; and
1286          (iii) for business opportunities;
1287          (i) encourage the development and use of cost-efficient [renewable] clean energy in
1288     project areas;
1289          (j) as consistent with applicable public trust, support and promote land uses on land
1290     within the lake authority boundary and land in adjacent political subdivisions that generate
1291     economic development, including rural economic development;
1292          (k) respect and not interfere with water rights or the operation of water facilities or
1293     water projects associated with Utah Lake;
1294          (l) respect and maintain sensitivity to the unique Native American history, historical
1295     sites, and artifacts within and around the lake authority boundary; and
1296          (m) protect the ability of the Provo airport to operate and grow, consistent with
1297     applicable environmental regulations, recognizing the significant state investment in the airport
1298     and the benefits that a thriving airport provides to the quality of life and the economy.

1299          (2) In fulfilling the lake authority's duties and responsibilities relating to the
1300     management of Utah Lake and to achieve and implement the management policies and
1301     objectives under Subsection (1), the lake authority shall:
1302          (a) work to identify funding sources, including federal, state, and local government
1303     funding and private funding, for capital improvement projects in and around Utah Lake;
1304          (b) review and identify land use and zoning policies and practices to recommend to
1305     land use policymakers and administrators of adjoining municipalities that are consistent with
1306     and will help to achieve the policies and objectives stated in Subsection (1);
1307          (c) consult and coordinate with other applicable governmental entities to improve and
1308     enhance transportation and other infrastructure and facilities in order to maximize the potential
1309     of Utah Lake to attract, retain, and service users who will help enhance the long-term economic
1310     benefit to the state; and
1311          (d) pursue policies that the board determines are designed to avoid or minimize
1312     negative environmental impacts of management.
1313          (3) The lake authority shall respect:
1314          (a) a permit issued by a governmental entity applicable to Utah Lake;
1315          (b) a governmental entity's easement or other interest affecting Utah Lake;
1316          (c) an agreement between governmental entities, including between a state agency and
1317     the federal government, relating to Utah Lake; and
1318          (d) the public trust doctrine as applicable to land within the lake authority boundary.
1319          (4) (a) The lake authority may use lake authority money to encourage, incentivize,
1320     fund, or require development that:
1321          (i) mitigates noise, air pollution, light pollution, surface and groundwater pollution,
1322     and other negative environmental impacts;
1323          (ii) includes building or project designs that minimize negative impacts to the June
1324     Sucker, avian species, and other wildlife;
1325          (iii) mitigates traffic congestion; or
1326          (iv) uses high efficiency building construction and operation.
1327          (b) In consultation with the municipality in which management is expected to occur
1328     and applicable state agencies, the lake authority shall establish minimum mitigation and
1329     environmental standards for management occurring on land within the lake authority boundary.

1330          Section 16. Section 11-68-201 is amended to read:
1331          11-68-201. State Fair Park Authority -- Legal status -- Powers.
1332          (1) There is created the State Fair Park Authority.
1333          (2) The authority is:
1334          (a) an independent, nonprofit, separate body corporate and politic, with perpetual
1335     succession;
1336          (b) a political subdivision of the state; and
1337          (c) a public corporation, as defined in Section 63E-1-102.
1338          (3) (a) The fair corporation is dissolved and ceases to exist, subject to any winding
1339     down and other actions necessary for a transition to the authority.
1340          (b) The authority:
1341          (i) replaces and is the successor to the fair corporation;
1342          (ii) succeeds to all rights, obligations, privileges, immunities, and assets of the fair
1343     corporation; and
1344          (iii) shall fulfill and perform all contractual and other obligations of the fair
1345     corporation.
1346          (c) The board shall take all actions necessary and appropriate to wind down the affairs
1347     of the fair corporation as quickly as practicable and to make a transition from the fair
1348     corporation to the authority.
1349          (4) The authority shall:
1350          (a) manage, supervise, and control:
1351          (i) all activities relating to the annual exhibition described in Subsection (4)(j); and
1352          (ii) except as otherwise provided by statute, all state expositions, including setting the
1353     time, place, and purpose of any state exposition;
1354          (b) for public entertainment, displays, and exhibits or similar events held at the state
1355     fair park:
1356          (i) provide, sponsor, or arrange the events;
1357          (ii) publicize and promote the events; and
1358          (iii) secure funds to cover the cost of the exhibits from:
1359          (A) private contributions;
1360          (B) public appropriations;

1361          (C) admission charges; and
1362          (D) other lawful means;
1363          (c) acquire and designate exposition sites;
1364          (d) use generally accepted accounting principles in accounting for the authority's assets,
1365     liabilities, and operations;
1366          (e) seek corporate sponsorships for the state fair park or for individual buildings or
1367     facilities on fair park land;
1368          (f) work with county and municipal governments, the Salt Lake Convention and
1369     Visitor's Bureau, the Utah Office of Tourism, and other entities to develop and promote
1370     expositions and the use of fair park land;
1371          (g) develop and maintain a marketing program to promote expositions and the use of
1372     fair park land;
1373          (h) in accordance with provisions of this chapter, operate and maintain state-owned
1374     buildings and facilities on fair park land, including the physical appearance and structural
1375     integrity of those buildings and facilities;
1376          (i) prepare an economic development plan for the fair park land;
1377          (j) hold an annual exhibition on fair park land that:
1378          (i) is called the state fair or a similar name;
1379          (ii) promotes and highlights agriculture throughout the state;
1380          (iii) includes expositions of livestock, poultry, agricultural, domestic science,
1381     horticultural, floricultural, mineral and industrial products, manufactured articles, and domestic
1382     animals that, in the board's opinion, will best stimulate agricultural, industrial, artistic, and
1383     educational pursuits and the sharing of talents among the people of the state;
1384          (iv) includes the award of premiums for the best specimens of the exhibited articles
1385     and animals;
1386          (v) permits competition by livestock exhibited by citizens of other states and territories
1387     of the United States; and
1388          (vi) is arranged according to plans approved by the board;
1389          (k) fix the conditions of entry to the annual exhibition described in Subsection (4)(j);
1390     and
1391          (l) publish a list of premiums that will be awarded at the annual exhibition described in

1392     Subsection (4)(j) for the best specimens of exhibited articles and animals.
1393          (5) In addition to the annual exhibition described in Subsection (4)(j), the authority
1394     may hold other exhibitions of livestock, poultry, agricultural, domestic science, horticultural,
1395     floricultural, mineral and industrial products, manufactured articles, and domestic animals that,
1396     in the corporation's opinion, will best stimulate agricultural, industrial, artistic, and educational
1397     pursuits and the sharing of talents among the people of the state.
1398          (6) The authority may:
1399          (a) employ advisers, consultants, and agents, including financial experts and
1400     independent legal counsel, and fix their compensation;
1401          (b) (i) participate in the state's Risk Management Fund created under Section
1402     63A-4-201 or any captive insurance company created by the risk manager; or
1403          (ii) procure insurance against any loss in connection with the authority's property and
1404     other assets;
1405          (c) receive and accept aid or contributions of money, property, labor, or other things of
1406     value from any source, including any grants or appropriations from any department, agency, or
1407     instrumentality of the United States or the state;
1408          (d) hold, use, loan, grant, and apply that aid and those contributions to carry out the
1409     purposes of the authority, subject to the conditions, if any, upon which the aid and
1410     contributions are made;
1411          (e) enter into management agreements with any person or entity for the performance of
1412     the authority's functions or powers;
1413          (f) establish accounts and procedures that are necessary to budget, receive, disburse,
1414     account for, and audit all funds received, appropriated, or generated;
1415          (g) subject to Subsection (8), lease any of the state-owned buildings or facilities located
1416     on fair park land;
1417          (h) sponsor events as approved by the board;
1418          (i) subject to Subsection (11), acquire any interest in real property that the board
1419     considers necessary or advisable to further a purpose of the authority or facilitate the authority's
1420     fulfillment of a duty under this chapter;
1421          (j) in accordance with Title 11, Chapter 42a, Commercial Property Assessed Clean
1422     Energy Act, provide for or finance an energy efficiency upgrade, a [renewable] clean energy

1423     system, or electric vehicle charging infrastructure, as those terms are defined in Section
1424     11-42a-102; and
1425          (k) enter into one or more agreements to develop the fair park land.
1426          (7) The authority shall comply with:
1427          (a) Title 51, Chapter 5, Funds Consolidation Act;
1428          (b) Title 51, Chapter 7, State Money Management Act;
1429          (c) Title 52, Chapter 4, Open and Public Meetings Act;
1430          (d) Title 63G, Chapter 2, Government Records Access and Management Act;
1431          (e) the provisions of Section 67-3-12;
1432          (f) Title 63G, Chapter 6a, Utah Procurement Code, except for a procurement for:
1433          (i) entertainment provided at the state fair park;
1434          (ii) judges for competitive exhibits; or
1435          (iii) sponsorship of an event on fair park land; and
1436          (g) the legislative approval requirements for capital development projects established
1437     in Section 63A-5b-404.
1438          (8) (a) Before the authority executes a lease described in Subsection (6)(g) with a term
1439     of 10 or more years, the authority shall:
1440          (i) submit the proposed lease to the division for the division's approval or rejection; and
1441          (ii) if the division approves the proposed lease, submit the proposed lease to the
1442     Executive Appropriations Committee for the Executive Appropriation Committee's review and
1443     recommendation in accordance with Subsection (8)(b).
1444          (b) The Executive Appropriations Committee shall review a proposed lease submitted
1445     in accordance with Subsection (8)(a) and recommend to the authority that the authority:
1446          (i) execute the proposed lease, either as proposed or with changes recommended by the
1447     Executive Appropriations Committee; or
1448          (ii) reject the proposed lease.
1449          (9) (a) Subject to Subsection (9)(b), a department, division, or other instrumentality of
1450     the state and a political subdivision of the state shall cooperate with the authority to the fullest
1451     extent possible to provide whatever support, information, or other assistance the authority
1452     requests that is reasonably necessary to help the authority fulfill the authority's duties and
1453     responsibilities under this chapter.

1454          (b) The division shall provide assistance and resources to the authority as the division
1455     director determines is appropriate.
1456          (10) The authority may share authority revenue with a municipality in which the fair
1457     park land is located, as provided in an agreement between the authority and the municipality, to
1458     pay for municipal services provided by the municipality.
1459          (11) (a) As used in this Subsection (11), "new land" means land that, if acquired by the
1460     authority, would result in the authority having acquired over three acres of land more than the
1461     land described in Subsection 11-68-101(9)(a).
1462          (b) In conjunction with the authority's acquisition of new land, the authority shall enter
1463     an agreement with the municipality in which the new land is located.
1464          (c) To provide funds for the cost of increased municipal services that the municipality
1465     will provide to the new land, an agreement under Subsection (11)(b) shall:
1466          (i) provide for:
1467          (A) the payment of impact fees to the municipality for development activity on the new
1468     land; and
1469          (B) the authority's sharing with the municipality tax revenue generated from the new
1470     land; and
1471          (ii) be structured in a way that recognizes the needs of the authority and furthers mutual
1472     goals of the authority and the municipality.
1473          Section 17. Section 17-27a-401 is amended to read:
1474          17-27a-401. General plan required -- Content -- Resource management plan --
1475     Provisions related to radioactive waste facility.
1476          (1) To accomplish the purposes of this chapter, a county shall prepare and adopt a
1477     comprehensive, long-range general plan:
1478          (a) for present and future needs of the county;
1479          (b) (i) for growth and development of all or any part of the land within the
1480     unincorporated portions of the county; or
1481          (ii) if a county has designated a mountainous planning district, for growth and
1482     development of all or any part of the land within the mountainous planning district; and
1483          (c) as a basis for communicating and coordinating with the federal government on land
1484     and resource management issues.

1485          (2) To promote health, safety, and welfare, the general plan may provide for:
1486          (a) health, general welfare, safety, energy conservation, transportation, prosperity, civic
1487     activities, aesthetics, and recreational, educational, and cultural opportunities;
1488          (b) the reduction of the waste of physical, financial, or human resources that result
1489     from either excessive congestion or excessive scattering of population;
1490          (c) the efficient and economical use, conservation, and production of the supply of:
1491          (i) food and water; and
1492          (ii) drainage, sanitary, and other facilities and resources;
1493          (d) the use of energy conservation and solar and [renewable] clean energy resources;
1494          (e) the protection of urban development;
1495          (f) the protection and promotion of air quality;
1496          (g) historic preservation;
1497          (h) identifying future uses of land that are likely to require an expansion or significant
1498     modification of services or facilities provided by an affected entity; and
1499          (i) an official map.
1500          (3) (a) (i) The general plan of a specified county, as defined in Section 17-27a-408,
1501     shall include a moderate income housing element that meets the requirements of Subsection
1502     17-27a-403(2)(a)(iii).
1503          (ii) (A) This Subsection (3)(a)(ii) applies to a county that does not qualify as a
1504     specified county as of January 1, 2023.
1505          (B) As of January 1, if a county described in Subsection (3)(a)(ii)(A) changes from one
1506     class to another or grows in population to qualify as a specified county as defined in Section
1507     17-27a-408, the county shall amend the county's general plan to comply with Subsection
1508     (3)(a)(i) on or before August 1 of the first calendar year beginning on January 1 in which the
1509     county qualifies as a specified county.
1510          (iii) A county described in Subsection (3)(a)(ii)(B) shall send a copy of the county's
1511     amended general plan to the association of governments, established pursuant to an interlocal
1512     agreement under Title 11, Chapter 13, Interlocal Cooperation Act, of which the county is a
1513     member.
1514          (b) The general plan shall contain a resource management plan for the public lands, as
1515     defined in Section 63L-6-102, within the county.

1516          (c) The resource management plan described in Subsection (3)(b) shall address:
1517          (i) mining;
1518          (ii) land use;
1519          (iii) livestock and grazing;
1520          (iv) irrigation;
1521          (v) agriculture;
1522          (vi) fire management;
1523          (vii) noxious weeds;
1524          (viii) forest management;
1525          (ix) water rights;
1526          (x) ditches and canals;
1527          (xi) water quality and hydrology;
1528          (xii) flood plains and river terraces;
1529          (xiii) wetlands;
1530          (xiv) riparian areas;
1531          (xv) predator control;
1532          (xvi) wildlife;
1533          (xvii) fisheries;
1534          (xviii) recreation and tourism;
1535          (xix) energy resources;
1536          (xx) mineral resources;
1537          (xxi) cultural, historical, geological, and paleontological resources;
1538          (xxii) wilderness;
1539          (xxiii) wild and scenic rivers;
1540          (xxiv) threatened, endangered, and sensitive species;
1541          (xxv) land access;
1542          (xxvi) law enforcement;
1543          (xxvii) economic considerations; and
1544          (xxviii) air.
1545          (d) For each item listed under Subsection (3)(c), a county's resource management plan
1546     shall:

1547          (i) establish findings pertaining to the item;
1548          (ii) establish defined objectives; and
1549          (iii) outline general policies and guidelines on how the objectives described in
1550     Subsection (3)(d)(ii) are to be accomplished.
1551          (4) (a) (i) The general plan shall include specific provisions related to an area within, or
1552     partially within, the exterior boundaries of the county, or contiguous to the boundaries of a
1553     county, which are proposed for the siting of a storage facility or transfer facility for the
1554     placement of high-level nuclear waste or greater than class C radioactive nuclear waste, as
1555     these wastes are defined in Section 19-3-303.
1556          (ii) The provisions described in Subsection (4)(a)(i) shall address the effects of the
1557     proposed site upon the health and general welfare of citizens of the state, and shall provide:
1558          (A) the information identified in Section 19-3-305;
1559          (B) information supported by credible studies that demonstrates that Subsection
1560     19-3-307(2) has been satisfied; and
1561          (C) specific measures to mitigate the effects of high-level nuclear waste and greater
1562     than class C radioactive waste and guarantee the health and safety of the citizens of the state.
1563          (b) A county may, in lieu of complying with Subsection (4)(a), adopt an ordinance
1564     indicating that all proposals for the siting of a storage facility or transfer facility for the
1565     placement of high-level nuclear waste or greater than class C radioactive waste wholly or
1566     partially within the county are rejected.
1567          (c) A county may adopt the ordinance listed in Subsection (4)(b) at any time.
1568          (d) The county shall send a certified copy of the ordinance described in Subsection
1569     (4)(b) to the executive director of the Department of Environmental Quality by certified mail
1570     within 30 days of enactment.
1571          (e) If a county repeals an ordinance adopted under Subsection (4)(b) the county shall:
1572          (i) comply with Subsection (4)(a) as soon as reasonably possible; and
1573          (ii) send a certified copy of the repeal to the executive director of the Department of
1574     Environmental Quality by certified mail within 30 days after the repeal.
1575          (5) The general plan may define the county's local customs, local culture, and the
1576     components necessary for the county's economic stability.
1577          (6) Subject to Subsection 17-27a-403(2), the county may determine the

1578     comprehensiveness, extent, and format of the general plan.
1579          (7) If a county has designated a mountainous planning district, the general plan for the
1580     mountainous planning district is the controlling plan.
1581          (8) Nothing in this part may be construed to limit the authority of the state to manage
1582     and protect wildlife under Title 23A, Wildlife Resources Act.
1583          (9) On or before December 31, 2025, a county that has a general plan that does not
1584     include a water use and preservation element that complies with Section 17-27a-403 shall
1585     amend the county's general plan to comply with Section 17-27a-403.
1586          Section 18. Section 17-50-335 is amended to read:
1587          17-50-335. Energy efficiency upgrade, clean energy system, or electric vehicle
1588     charging infrastructure.
1589          A county may provide or finance an energy efficiency upgrade, a [renewable] clean
1590     energy system, or electric vehicle charging infrastructure as defined in Section 11-42a-102, in a
1591     designated voluntary assessment area in accordance with Title 11, Chapter 42a, Commercial
1592     Property Assessed Clean Energy Act.
1593          Section 19. Section 17B-1-202 is amended to read:
1594          17B-1-202. Special district may be created -- Services that may be provided --
1595     Limitations.
1596          (1) (a) A special district may be created as provided in this part to provide within its
1597     boundaries service consisting of:
1598          (i) the operation of an airport;
1599          (ii) the operation of a cemetery;
1600          (iii) fire protection, paramedic, and emergency services, including consolidated 911
1601     and emergency dispatch services;
1602          (iv) garbage collection and disposal;
1603          (v) health care, including health department or hospital service;
1604          (vi) the operation of a library;
1605          (vii) abatement or control of mosquitos and other insects;
1606          (viii) the operation of parks or recreation facilities or services;
1607          (ix) the operation of a sewage system;
1608          (x) the construction and maintenance of a right-of-way, including:

1609          (A) a curb;
1610          (B) a gutter;
1611          (C) a sidewalk;
1612          (D) a street;
1613          (E) a road;
1614          (F) a water line;
1615          (G) a sewage line;
1616          (H) a storm drain;
1617          (I) an electricity line;
1618          (J) a communications line;
1619          (K) a natural gas line; or
1620          (L) street lighting;
1621          (xi) transportation, including public transit and providing streets and roads;
1622          (xii) the operation of a system, or one or more components of a system, for the
1623     collection, storage, retention, control, conservation, treatment, supplying, distribution, or
1624     reclamation of water, including storm, flood, sewage, irrigation, and culinary water, whether
1625     the system is operated on a wholesale or retail level or both;
1626          (xiii) in accordance with Subsection (1)(c), the acquisition or assessment of a
1627     groundwater right for the development and execution of a groundwater management plan in
1628     cooperation with and approved by the state engineer in accordance with Section 73-5-15;
1629          (xiv) law enforcement service;
1630          (xv) subject to Subsection (1)(b), the underground installation of an electric utility line
1631     or the conversion to underground of an existing electric utility line;
1632          (xvi) the control or abatement of earth movement or a landslide;
1633          (xvii) the operation of animal control services and facilities; or
1634          (xviii) an energy efficiency upgrade, a [renewable] clean energy system, or electric
1635     vehicle charging infrastructure as defined in Section 11-42a-102, in accordance with Title 11,
1636     Chapter 42a, Commercial Property Assessed Clean Energy Act.
1637          (b) Each special district that provides the service of the underground installation of an
1638     electric utility line or the conversion to underground of an existing electric utility line shall, in
1639     installing or converting the line, provide advance notice to and coordinate with the utility that

1640     owns the line.
1641          (c) A groundwater management plan described in Subsection (1)(a)(xiii) may include
1642     the banking of groundwater rights by a special district in a critical management area as defined
1643     in Section 73-5-15 following the adoption of a groundwater management plan by the state
1644     engineer under Section 73-5-15.
1645          (i) A special district may manage the groundwater rights it acquires under Subsection
1646     17B-1-103(2)(a) or (b) consistent with the provisions of a groundwater management plan
1647     described in this Subsection (1)(c).
1648          (ii) A groundwater right held by a special district to satisfy the provisions of a
1649     groundwater management plan is not subject to the forfeiture provisions of Section 73-1-4.
1650          (iii) (A) A special district may divest itself of a groundwater right subject to a
1651     determination that the groundwater right is not required to facilitate the groundwater
1652     management plan described in this Subsection (1)(c).
1653          (B) The groundwater right described in Subsection (1)(c)(iii)(A) is subject to Section
1654     73-1-4 beginning on the date of divestiture.
1655          (iv) Upon a determination by the state engineer that an area is no longer a critical
1656     management area as defined in Section 73-5-15, a groundwater right held by the special district
1657     is subject to Section 73-1-4.
1658          (v) A special district created in accordance with Subsection (1)(a)(xiii) to develop and
1659     execute a groundwater management plan may hold or acquire a right to surface waters that are
1660     naturally tributary to the groundwater basin subject to the groundwater management plan if the
1661     surface waters are appropriated in accordance with Title 73, Water and Irrigation, and used in
1662     accordance with Title 73, Chapter 3b, Groundwater Recharge and Recovery Act.
1663          (2) As used in this section:
1664          (a) "Operation" means all activities involved in providing the indicated service
1665     including acquisition and ownership of property reasonably necessary to provide the indicated
1666     service and acquisition, construction, and maintenance of facilities and equipment reasonably
1667     necessary to provide the indicated service.
1668          (b) "System" means the aggregate of interrelated components that combine together to
1669     provide the indicated service including, for a sewage system, collection and treatment.
1670          (3) (a) A special district may not be created to provide and may not after its creation

1671     provide more than four of the services listed in Subsection (1).
1672          (b) Subsection (3)(a) may not be construed to prohibit a special district from providing
1673     more than four services if, before April 30, 2007, the special district was authorized to provide
1674     those services.
1675          (4) (a) Except as provided in Subsection (4)(b), a special district may not be created to
1676     provide and may not after its creation provide to an area the same service that may already be
1677     provided to that area by another political subdivision, unless the other political subdivision
1678     gives its written consent.
1679          (b) For purposes of Subsection (4)(a), a special district does not provide the same
1680     service as another political subdivision if it operates a component of a system that is different
1681     from a component operated by another political subdivision but within the same:
1682          (i) sewage system; or
1683          (ii) water system.
1684          (5) (a) Except for a special district in the creation of which an election is not required
1685     under Subsection 17B-1-214(3)(d), the area of a special district may include all or part of the
1686     unincorporated area of one or more counties and all or part of one or more municipalities.
1687          (b) The area of a special district need not be contiguous.
1688          (6) For a special district created before May 5, 2008, the authority to provide fire
1689     protection service also includes the authority to provide:
1690          (a) paramedic service; and
1691          (b) emergency service, including hazardous materials response service.
1692          (7) A special district created before May 11, 2010, authorized to provide the
1693     construction and maintenance of curb, gutter, or sidewalk may provide a service described in
1694     Subsection (1)(a)(x) on or after May 11, 2010.
1695          (8) A special district created before May 10, 2011, authorized to provide culinary,
1696     irrigation, sewage, or storm water services may provide a service described in Subsection
1697     (1)(a)(xii) on or after May 10, 2011.
1698          (9) A special district may not be created under this chapter for two years after the date
1699     on which a special district is dissolved as provided in Section 17B-1-217 if the special district
1700     proposed for creation:
1701          (a) provides the same or a substantially similar service as the dissolved special district;

1702     and
1703          (b) is located in substantially the same area as the dissolved special district.
1704          Section 20. Section 17D-1-201 is amended to read:
1705          17D-1-201. Services that a special service district may be created to provide.
1706          As provided in this part, a county or municipality may create a special service district to
1707     provide any combination of the following services:
1708          (1) water;
1709          (2) sewerage;
1710          (3) drainage;
1711          (4) flood control;
1712          (5) garbage collection and disposal;
1713          (6) health care;
1714          (7) transportation, including the receipt of federal secure rural school funds under
1715     Section 51-9-603 for the purposes of constructing, improving, repairing, or maintaining public
1716     roads;
1717          (8) recreation;
1718          (9) fire protection, including:
1719          (a) emergency medical services, ambulance services, and search and rescue services, if
1720     fire protection service is also provided;
1721          (b) Firewise Communities programs and the development of community wildfire
1722     protection plans; and
1723          (c) the receipt of federal secure rural school funds as provided under Section 51-9-603
1724     for the purposes of carrying out Firewise Communities programs, developing community
1725     wildfire protection plans, and performing emergency services, including firefighting on federal
1726     land and other services authorized under this Subsection (9);
1727          (10) providing, operating, and maintaining correctional and rehabilitative facilities and
1728     programs for municipal, state, and other detainees and prisoners;
1729          (11) street lighting;
1730          (12) consolidated 911 and emergency dispatch;
1731          (13) animal shelter and control;
1732          (14) receiving federal mineral lease funds under Title 59, Chapter 21, Mineral Lease

1733     Funds, and expending those funds to be used in accordance with state and federal law;
1734          (15) in a county of the first class, extended police protection;
1735          (16) control or abatement of earth movement or a landslide;
1736          (17) an energy efficiency upgrade, a [renewable] clean energy system, or electric
1737     vehicle charging infrastructure as defined in Section 11-42a-102, in accordance with Title 11,
1738     Chapter 42a, Commercial Property Assessed Clean Energy Act; or
1739          (18) cemetery.
1740          Section 21. Section 54-17-502 is amended to read:
1741          54-17-502. Clean energy source -- Solicitation -- Consultant.
1742          (1) Sections 54-17-102 through 54-17-404 do not apply to a significant energy resource
1743     that is a [renewable] clean energy source as defined in Section 54-17-601 if the nameplate
1744     capacity of the [renewable] clean energy source does not exceed 300 megawatts or, if
1745     applicable, the quantity of capacity that is the subject of a contract for the purchase of
1746     electricity from a [renewable] clean energy source does not exceed 300 megawatts.
1747          (2) (a) (i) An affected electrical utility shall issue a public solicitation of bids for a
1748     [renewable] clean energy source up to 300 megawatts in size by January 31 of each year in
1749     which it reasonably anticipates that it will need to acquire or commence construction of a
1750     [renewable] clean energy resource.
1751          (ii) A solicitation for a [renewable] clean energy source issued by January 31, 2008 for
1752     up to 99 megawatts satisfies the requirement of this Subsection (2) for the year 2008 if:
1753          (A) not later than 30 days after the day on which this section takes effect, the affected
1754     electrical utility amends the solicitation or initiates a new solicitation to seek bids for
1755     [renewable] clean energy source projects up to 300 megawatts in size; and
1756          (B) within 60 days after the day on which this section takes effect and as soon as
1757     practicable, the commission retains a consultant in accordance with Subsection (3).
1758          (b) A consultant hired under Subsection (2)(a)(ii)(B) shall perform the consultant's
1759     duties under Subsection (3) in relation to the status of the solicitation process at the time the
1760     consultant is retained and may not unreasonably delay the solicitation process.
1761          (c) For a solicitation issued after January 31, 2008:
1762          (i) the affected electrical utility shall develop a reasonable process for pre-approval of
1763     bidders; and

1764          (ii) in addition to publicly issuing the solicitation in Subsection (2)(a)(i), the affected
1765     electrical utility shall send copies of the solicitation to each potential bidder who is
1766     pre-approved.
1767          (d) The affected electrical utility shall evaluate in good faith each bid that is received
1768     and negotiate in good faith with each bidder whose bid appears to be cost effective, as defined
1769     in Section 54-17-602.
1770          (e) Beginning on August 1, 2008, and on each August 1 thereafter, the affected
1771     electrical utility shall file a notice with the commission indicating whether it reasonably
1772     anticipates that it will need to acquire or commence construction of a [renewable] clean energy
1773     resource during the following year.
1774          (3) (a) If the commission receives a notice under Subsection (2)(e) that the affected
1775     electrical utility reasonably anticipates that it will need to acquire or commence construction of
1776     a [renewable] clean energy source during the following year, the commission shall promptly
1777     retain a consultant to:
1778          (i) validate that the affected electrical utility is following the bidder pre-approval
1779     process developed pursuant to Subsection (2)(c) and make recommendations for changes to the
1780     pre-approval process for future solicitations;
1781          (ii) monitor and document all material aspects of the bids, bid evaluations, and bid
1782     negotiations between the affected electrical utility and any bidders in the solicitation process;
1783          (iii) maintain adequate documentation of each bid, including the solicitation,
1784     evaluation, and negotiation processes and the reason for the conclusion of negotiations, which
1785     documentation shall be transmitted to the commission at the conclusion of all negotiations in
1786     the solicitation; and
1787          (iv) be available to testify under oath before the commission in any relevant proceeding
1788     concerning all aspects of the public solicitation process.
1789          (b) The commission and the consultant shall use all reasonable efforts to not delay the
1790     solicitation process.
1791          (4) Documentation provided to the commission by the consultant shall be available to
1792     the affected electrical utility, any bidder, or other interested person under terms and conditions
1793     and at times determined appropriate by the commission.
1794          (5) (a) The commission and the consultant shall execute a contract approved by the

1795     commission with terms and conditions approved by the commission.
1796          (b) Unless otherwise provided by contract, an invoice for the consultant's services shall
1797     be sent to the Division of Public Utilities for review and approval.
1798          (c) After approval under Subsection (5)(b), the invoice shall be forwarded to the
1799     affected electrical utility for payment to the consultant.
1800          (d) The affected electrical utility may, in a general rate case or other appropriate
1801     commission proceeding, include, and the commission shall allow, recovery by the affected
1802     electrical utility of any amount paid by the affected electrical utility for the consultant.
1803          (6) (a) Nothing in this section precludes an affected electrical utility from constructing
1804     or acquiring any [renewable] clean energy source project outside the solicitation process
1805     provided for in this section, including purchasing electricity from any [renewable] clean energy
1806     source project that chooses to self-certify as a qualifying facility under the federal Public Utility
1807     Regulatory Policies Act of 1978.
1808          (b) An affected electrical utility that constructs a [renewable] clean energy source
1809     outside the solicitation process of this section or Section 54-17-201 shall file a notice with the
1810     commission at least 60 days before the date of commencement of construction, indicating the
1811     size and location of the [renewable] clean energy source.
1812          (c) The date of commencement of construction under Subsection (6)(b) is the date of
1813     any directive from an affected electrical utility to the person responsible for the construction of
1814     the [renewable] clean energy source authorizing or directing the person to proceed with
1815     construction.
1816          (d) For an affected electrical utility whose rates are regulated by the commission, the
1817     utility has the burden of proving in a rate case or other appropriate commission proceeding the
1818     prudence, reasonableness, and cost-effectiveness of construction under this Subsection (6),
1819     including the method used to evaluate the risks and value of any bid submitted in the
1820     solicitation under this section.
1821          (7) Nothing in this section requires an affected electrical utility to enter into any
1822     transaction that it reasonably believes is not cost effective or otherwise is not in the public
1823     interest.
1824          Section 22. Section 54-17-601 is amended to read:
1825          54-17-601. Definitions.

1826          As used in this part:
1827          (1) "Adjusted retail electric sales" means the total kilowatt-hours of retail electric sales
1828     of an electrical corporation to customers in this state in a calendar year, reduced by:
1829          (a) the amount of those kilowatt-hours attributable to electricity generated or purchased
1830     in that calendar year from qualifying zero carbon emissions generation and qualifying carbon
1831     sequestration generation;
1832          (b) the amount of those kilowatt-hours attributable to electricity generated or purchased
1833     in that calendar year from generation located within the geographic boundary of the Western
1834     Electricity Coordinating Council that derives its energy from one or more of the following but
1835     that does not satisfy the definition of a [renewable] clean energy source or that otherwise has
1836     not been used to satisfy Subsection 54-17-602(1):
1837          (i) wind energy;
1838          (ii) solar photovoltaic and solar thermal energy;
1839          (iii) wave, tidal, and ocean thermal energy;
1840          (iv) except for combustion of wood that has been treated with chemical preservatives
1841     such as creosote, pentachlorophenol or chromated copper arsenate, biomass and biomass
1842     byproducts, including:
1843          (A) organic waste;
1844          (B) forest or rangeland woody debris from harvesting or thinning conducted to improve
1845     forest or rangeland ecological health and to reduce wildfire risk;
1846          (C) agricultural residues;
1847          (D) dedicated energy crops; and
1848          (E) landfill gas or biogas produced from organic matter, wastewater, anaerobic
1849     digesters, or municipal solid waste;
1850          (v) geothermal energy;
1851          (vi) hydroelectric energy; or
1852          (vii) waste gas and waste heat capture or recovery; and
1853          (c) the number of kilowatt-hours attributable to reductions in retail sales in that
1854     calendar year from demand side management as defined in Section 54-7-12.8, with the
1855     kilowatt-hours for an electrical corporation whose rates are regulated by the commission and
1856     adjusted by the commission to exclude kilowatt-hours for which a renewable energy certificate

1857     is issued under Subsection 54-17-603(4)(b).
1858          (2) "Amount of kilowatt-hours attributable to electricity generated or purchased in that
1859     calendar year from qualifying carbon sequestration generation," for qualifying carbon
1860     sequestration generation, means the kilowatt-hours supplied by a facility during the calendar
1861     year multiplied by the ratio of the amount of carbon dioxide captured from the facility and
1862     sequestered to the sum of the amount of carbon dioxide captured from the facility and
1863     sequestered plus the amount of carbon dioxide emitted from the facility during the same
1864     calendar year.
1865          (3) "Banked renewable energy certificate" means a bundled or unbundled renewable
1866     energy certificate that is:
1867          (a) not used in a calendar year to comply with this part or with a renewable energy
1868     program in another state; and
1869          (b) carried forward into a subsequent year.
1870          (4) "Bundled renewable energy certificate" means a renewable energy certificate for
1871     qualifying electricity that is acquired:
1872          (a) by an electrical corporation by a trade, purchase, or other transfer of electricity that
1873     includes the renewable energy attributes of, or certificate that is issued for, the electricity; or
1874          (b) by an electrical corporation by generating the electricity for which the renewable
1875     energy certificate is issued.
1876          (5) "Clean energy source" means:
1877          (a) an electric generation facility or generation capability or upgrade that becomes
1878     operational on or after January 1, 1995, that derives its energy from one or more of the
1879     following:
1880          (i) wind energy;
1881          (ii) solar photovoltaic and solar thermal energy;
1882          (iii) wave, tidal, and ocean thermal energy;
1883          (iv) except for combustion of wood that has been treated with chemical preservatives
1884     such as creosote, pentachlorophenol or chromated copper arsenate, biomass and biomass
1885     byproducts, including:
1886          (A) organic waste;
1887          (B) forest or rangeland woody debris from harvesting or thinning conducted to improve

1888     forest or rangeland ecological health and to reduce wildfire risk;
1889          (C) agricultural residues;
1890          (D) dedicated energy crops; and
1891          (E) landfill gas or biogas produced from organic matter, wastewater, anaerobic
1892     digesters, or municipal solid waste;
1893          (v) geothermal energy located outside the state;
1894          (vi) waste gas and waste heat capture or recovery, including methane gas from:
1895          (A) an abandoned coal mine; or
1896          (B) a coal degassing operation associated with a state-approved mine permit;
1897          (vii) efficiency upgrades to a hydroelectric facility, without regard to the date upon
1898     which the facility became operational, if the upgrades become operational on or after January
1899     1, 1995;
1900          (viii) compressed air, if:
1901          (A) the compressed air is taken from compressed air energy storage; and
1902          (B) the energy used to compress the air is a clean energy source;
1903          (ix) municipal solid waste; or
1904          (x) energy derived from nuclear fuel;
1905          (b) any of the following:
1906          (i) up to 50 average megawatts of electricity per year per electrical corporation from a
1907     certified low-impact hydroelectric facility, without regard to the date upon which the facility
1908     becomes operational, if the facility is certified as a low-impact hydroelectric facility on or after
1909     January 1, 1995, by a national certification organization;
1910          (ii) geothermal energy if located within the state, without regard to the date upon which
1911     the facility becomes operational; or
1912          (iii) hydroelectric energy if located within the state, without regard to the date upon
1913     which the facility becomes operational;
1914          (c) hydrogen gas derived from any source of energy described in Subsection (5)(a) or
1915     (b);
1916          (d) if an electric generation facility employs multiple energy sources, that portion of the
1917     electricity generated that is attributable to energy sources described in Subsections (5)(a)
1918     through (c); and

1919          (e) any of the following located in the state and owned by a user of energy:
1920          (i) a demand side management measure, as defined by Subsection 54-7-12.8(1), with
1921     the quantity of renewable energy certificates to which the user is entitled determined by the
1922     equivalent energy saved by the measure;
1923          (ii) a solar thermal system that reduces the consumption of fossil fuels, with the
1924     quantity of renewable energy certificates to which the user is entitled determined by the
1925     equivalent kilowatt-hours saved, except to the extent the commission determines otherwise
1926     with respect to net-metered energy;
1927          (iii) a solar photovoltaic system that reduces the consumption of fossil fuels with the
1928     quantity of renewable energy certificates to which the user is entitled determined by the total
1929     production of the system, except to the extent the commission determines otherwise with
1930     respect to net-metered energy;
1931          (iv) a hydroelectric or geothermal facility with the quantity of renewable energy
1932     certificates to which the user is entitled determined by the total production of the facility,
1933     except to the extent the commission determines otherwise with respect to net-metered energy;
1934          (v) a waste gas or waste heat capture or recovery system, other than from a combined
1935     cycle combustion turbine that does not use waste gas or waste heat, with the quantity of
1936     renewable energy certificates to which the user is entitled determined by the total production of
1937     the system, except to the extent the commission determines otherwise with respect to
1938     net-metered energy; and
1939          (vi) the station use of solar thermal energy, solar photovoltaic energy, hydroelectric
1940     energy, geothermal energy, waste gas, or waste heat capture and recovery.
1941          [(5)] (6) "Electrical corporation":
1942          (a) is as defined in Section 54-2-1; and
1943          (b) does not include a person generating electricity that is not for sale to the public.
1944          [(6)] (7) "Qualifying carbon sequestration generation" means a fossil-fueled generating
1945     facility located within the geographic boundary of the Western Electricity Coordinating
1946     Council that:
1947          (a) becomes operational or is retrofitted on or after January 1, 2008; and
1948          (b) reduces carbon dioxide emissions into the atmosphere through permanent
1949     geological sequestration or through another verifiably permanent reduction in carbon dioxide

1950     emissions through the use of technology.
1951          [(7)] (8) "Qualifying electricity" means electricity generated on or after January 1,
1952     1995, from a [renewable] clean energy source if:
1953          (a) (i) the renewable energy source is located within the geographic boundary of the
1954     Western Electricity Coordinating Council; or
1955          (ii) the qualifying electricity is delivered to the transmission system of an electrical
1956     corporation or a delivery point designated by the electrical corporation for the purpose of
1957     subsequent delivery to the electrical corporation; and
1958          (b) the renewable energy attributes of the electricity are not traded, sold, transferred, or
1959     otherwise used to satisfy another state's renewable energy program.
1960          [(8)] (9) "Qualifying zero carbon emissions generation":
1961          (a) means a generation facility located within the geographic boundary of the Western
1962     Electricity Coordinating Council that:
1963          (i) becomes operational on or after January 1, 2008; and
1964          (ii) does not produce carbon as a byproduct of the generation process;
1965          (b) includes generation powered by nuclear fuel; and
1966          (c) does not include renewable energy sources used to satisfy the requirement
1967     established under Subsection 54-17-602(1).
1968          [(9)] (10) "Renewable energy certificate" means a certificate issued under Section
1969     54-17-603.
1970          [(10) "Renewable energy source" means:]
1971          [(a) an electric generation facility or generation capability or upgrade that becomes
1972     operational on or after January 1, 1995 that derives its energy from one or more of the
1973     following:]
1974          [(i) wind energy;]
1975          [(ii) solar photovoltaic and solar thermal energy;]
1976          [(iii) wave, tidal, and ocean thermal energy;]
1977          [(iv) except for combustion of wood that has been treated with chemical preservatives
1978     such as creosote, pentachlorophenol or chromated copper arsenate, biomass and biomass
1979     byproducts, including:]
1980          [(A) organic waste;]

1981          [(B) forest or rangeland woody debris from harvesting or thinning conducted to
1982     improve forest or rangeland ecological health and to reduce wildfire risk;]
1983          [(C) agricultural residues;]
1984          [(D) dedicated energy crops; and]
1985          [(E) landfill gas or biogas produced from organic matter, wastewater, anaerobic
1986     digesters, or municipal solid waste;]
1987          [(v) geothermal energy located outside the state;]
1988          [(vi) waste gas and waste heat capture or recovery whether or not it is renewable,
1989     including methane gas from:]
1990          [(A) an abandoned coal mine; or]
1991          [(B) a coal degassing operation associated with a state-approved mine permit;]
1992          [(vii) efficiency upgrades to a hydroelectric facility, without regard to the date upon
1993     which the facility became operational, if the upgrades become operational on or after January
1994     1, 1995;]
1995          [(viii) compressed air, if:]
1996          [(A) the compressed air is taken from compressed air energy storage; and]
1997          [(B) the energy used to compress the air is a renewable energy source; or]
1998          [(ix) municipal solid waste;]
1999          [(b) any of the following:]
2000          [(i) up to 50 average megawatts of electricity per year per electrical corporation from a
2001     certified low-impact hydroelectric facility, without regard to the date upon which the facility
2002     becomes operational, if the facility is certified as a low-impact hydroelectric facility on or after
2003     January 1, 1995, by a national certification organization;]
2004          [(ii) geothermal energy if located within the state, without regard to the date upon
2005     which the facility becomes operational; or]
2006          [(iii) hydroelectric energy if located within the state, without regard to the date upon
2007     which the facility becomes operational;]
2008          [(c) hydrogen gas derived from any source of energy described in Subsection (10)(a) or
2009     (b);]
2010          [(d) if an electric generation facility employs multiple energy sources, that portion of
2011     the electricity generated that is attributable to energy sources described in Subsections (10)(a)

2012     through (c); and]
2013          [(e) any of the following located in the state and owned by a user of energy:]
2014          [(i) a demand side management measure, as defined by Subsection 54-7-12.8(1), with
2015     the quantity of renewable energy certificates to which the user is entitled determined by the
2016     equivalent energy saved by the measure;]
2017          [(ii) a solar thermal system that reduces the consumption of fossil fuels, with the
2018     quantity of renewable energy certificates to which the user is entitled determined by the
2019     equivalent kilowatt-hours saved, except to the extent the commission determines otherwise
2020     with respect to net-metered energy;]
2021          [(iii) a solar photovoltaic system that reduces the consumption of fossil fuels with the
2022     quantity of renewable energy certificates to which the user is entitled determined by the total
2023     production of the system, except to the extent the commission determines otherwise with
2024     respect to net-metered energy;]
2025          [(iv) a hydroelectric or geothermal facility with the quantity of renewable energy
2026     certificates to which the user is entitled determined by the total production of the facility,
2027     except to the extent the commission determines otherwise with respect to net-metered energy;]
2028          [(v) a waste gas or waste heat capture or recovery system, other than from a combined
2029     cycle combustion turbine that does not use waste gas or waste heat, with the quantity of
2030     renewable energy certificates to which the user is entitled determined by the total production of
2031     the system, except to the extent the commission determines otherwise with respect to
2032     net-metered energy; and]
2033          [(vi) the station use of solar thermal energy, solar photovoltaic energy, hydroelectric
2034     energy, geothermal energy, waste gas, or waste heat capture and recovery.]
2035          (11) "Unbundled renewable energy certificate" means a renewable energy certificate
2036     associated with:
2037          (a) qualifying electricity that is acquired by an electrical corporation or other person by
2038     trade, purchase, or other transfer without acquiring the electricity for which the certificate was
2039     issued; or
2040          (b) activities listed in Subsection [(10)(e)] (5)(e).
2041          Section 23. Section 54-17-602 is amended to read:
2042          54-17-602. Target amount of qualifying electricity -- Renewable energy certificate

2043     -- Cost-effectiveness -- Cooperatives.
2044          (1) (a) To the extent that it is cost effective to do so, beginning in 2025 the annual retail
2045     electric sales in this state of each electrical corporation shall consist of qualifying electricity or
2046     renewable energy certificates in an amount equal to at least 20% of adjusted retail electric
2047     sales.
2048          (b) The amount under Subsection (1)(a) is computed based upon adjusted retail electric
2049     sales for the calendar year commencing 36 months before the first day of the year for which the
2050     target calculated under Subsection (1)(a) applies.
2051          (c) Notwithstanding Subsections (1)(a) and (b), an increase in the annual target from
2052     one year to the next may not exceed the greater of:
2053          (i) 17,500 megawatt-hours; or
2054          (ii) 20% of the prior year's amount under Subsections (1)(a) and (b).
2055          (2) (a) Cost-effectiveness under Subsection (1) for other than a cooperative association
2056     is determined in comparison to other viable resource options using the criteria provided by
2057     Subsection 54-17-201(2)(c)(ii).
2058          (b) For an electrical corporation that is a cooperative association, cost-effectiveness is
2059     determined using criteria applicable to the cooperative association's acquisition of a significant
2060     energy resource established by the cooperative association's board of directors.
2061          (3) This section does not require an electrical corporation to:
2062          (a) substitute qualifying electricity for electricity from a generation source owned or
2063     contractually committed, or from a contractual commitment for a power purchase;
2064          (b) enter into any additional electric sales commitment or any other arrangement for the
2065     sale or other disposition of electricity that is not already, or would not be, entered into by the
2066     electrical corporation; or
2067          (c) acquire qualifying electricity in excess of its adjusted retail electric sales.
2068          (4) For the purpose of Subsection (1), an electrical corporation may combine the
2069     following:
2070          (a) qualifying electricity from a renewable energy source owned by the electrical
2071     corporation;
2072          (b) qualifying electricity acquired by the electrical corporation through trade, power
2073     purchase, or other transfer; and

2074          (c) a bundled or unbundled renewable energy certificate, including a banked renewable
2075     energy certificate.
2076          (5) For an electrical corporation whose rates the commission regulates, the following
2077     rules concerning renewable energy certificates apply:
2078          (a) a banked renewable energy certificate with an older issuance date shall be used
2079     before any other banked renewable energy certificate issued at a later date is used; and
2080          (b) the total of all unbundled renewable energy certificates, including unbundled
2081     banked renewable energy certificates, may not exceed 20% of the amount of the annual target
2082     provided for in Subsection (1).
2083          (6) An electrical corporation that is a cooperative association may count towards
2084     Subsection (1) any of the following:
2085          (a) electric production allocated to this state from hydroelectric facilities becoming
2086     operational after December 31, 2007, if the facilities are located in any state in which the
2087     cooperative association, or a generation and transmission cooperative with which the
2088     cooperative association has a contract, provides electric service;
2089          (b) qualifying electricity generated or acquired or renewable energy certificates
2090     acquired for a program that permits a retail customer to voluntarily contribute to a [renewable]
2091     clean energy source; and
2092          (c) notwithstanding Subsection 54-17-601(7), an unbundled renewable energy
2093     certificate purchased from a renewable energy source located outside the geographic boundary
2094     of the Western Electricity Coordinating Council if the electricity on which the unbundled
2095     renewable energy certificate is based would be considered qualifying electricity if the
2096     renewable energy source was located within the geographic boundary of the Western
2097     Electricity Coordinating Council.
2098          (7) The use of the renewable attributes associated with qualifying electricity to satisfy
2099     any federal renewable energy requirement does not preclude the electricity from being
2100     qualifying electricity for the purpose of this chapter.
2101          Section 24. Section 54-17-604 is amended to read:
2102          54-17-604. Plans and reports.
2103          (1) An electrical corporation shall develop and maintain a plan for implementing
2104     Subsection 54-17-602(1), consistent with the cost-effectiveness criteria of Subsection

2105     54-17-201(2)(c)(ii).
2106          (2) (a) A progress report concerning a plan under Subsection (1) for other than a
2107     cooperative association shall be filed with the commission by January 1 of each of the years
2108     2010, 2015, 2020, and 2024.
2109          (b) For an electrical corporation that is a cooperative association, a progress report
2110     shall be filed with the cooperative association's board of directors by January 1 of each of the
2111     years 2010, 2015, 2020, and 2024.
2112          (3) The progress report under Subsection (2) shall contain:
2113          (a) the actual and projected amount of qualifying electricity through 2025;
2114          (b) the source of qualifying electricity;
2115          (c) (i) an analysis of the cost-effectiveness of [renewable] clean energy sources for
2116     other than a cooperative association; or
2117          (ii) an estimate of the cost of achieving the target for an electrical corporation that is a
2118     cooperative association;
2119          (d) a discussion of conditions impacting the [renewable] clean energy source and
2120     qualifying electricity markets;
2121          (e) any recommendation for a suggested legislative or program change; and
2122          (f) for other than a cooperative association, any other information requested by the
2123     commission or considered relevant by the electrical corporation.
2124          (4) The plan and progress report required by Subsections (1) and (2) may include
2125     procedures that will be used by the electrical corporation to identify and select any [renewable]
2126     clean energy resource and qualifying electricity that satisfy the criteria of Subsection
2127     54-17-201(2)(c)(ii).
2128          (5) By July 1, 2026, each electrical corporation shall file a final progress report
2129     demonstrating:
2130          (a) how Subsection 54-17-602(1) is satisfied for the year 2025; or
2131          (b) the reason why Subsection 54-17-602(1) is not satisfied for the year 2025, if it is
2132     not satisfied.
2133          (6) By January 1 of each of the years 2011, 2016, 2021, and 2025, the Division of
2134     Public Utilities shall submit to the Legislature a report containing a summary of any progress
2135     report filed under Subsections (2) through (5).

2136          (7) The summary required by Subsection (6) shall include any recommendation for
2137     legislative changes.
2138          (8) (a) By July 1, 2027, the commission shall submit to the Legislature a report
2139     summarizing the final progress reports and recommending any legislative changes.
2140          (b) The 2027 summary may contain a recommendation to the Legislature concerning
2141     any action to be taken with respect to an electrical corporation that does not satisfy Subsection
2142     54-17-602(1) for 2025.
2143          (c) The commission shall provide an opportunity for public comment and take
2144     evidence before recommending any action to be taken with respect to an electrical corporation
2145     that does not satisfy Subsection 54-17-602(1) for 2025.
2146          (9) If a recommendation containing a penalty for failure to satisfy Subsection
2147     54-17-602(1) is made under Subsection (8), the proposal shall require that any amount paid by
2148     an electrical corporation as a penalty be utilized to fund demand-side management for the retail
2149     customers of the electrical corporation paying the penalty.
2150          (10) A penalty may not be proposed under this section if an electrical corporation's
2151     failure to satisfy Subsection 54-17-602(1) is due to:
2152          (a) a lack of cost-effective means to satisfy the requirement; or
2153          (b) force majeure.
2154          (11) By July 1, 2026, an electrical corporation that is a cooperative association shall
2155     file a final progress report demonstrating:
2156          (a) how Subsection 54-17-602(1) is satisfied for the year 2025; or
2157          (b) the reason why Subsection 54-17-602(1) is not satisfied for the year 2025 if it is not
2158     satisfied.
2159          (12) The plan and any progress report file under this section by an electrical
2160     corporation that is cooperative association shall be publicly available at the cooperative
2161     association's office or posted on the cooperative association's website.
2162          Section 25. Section 54-17-605 is amended to read:
2163          54-17-605. Recovery of costs for clean energy activities.
2164          (1) In accordance with other law, the commission shall include in the retail electric
2165     rates of an electrical corporation whose rates the commission regulates the state's share of any
2166     of the costs listed in Subsection (2) that are relevant to the proceeding in which the commission

2167     is considering the electrical corporation's rates:
2168          (a) if the costs are prudently incurred by the electrical corporation in connection with:
2169          (i) the acquisition of a renewable energy certificate;
2170          (ii) the acquisition of qualifying electricity for which a renewable energy certificate
2171     will be issued after the acquisition; and
2172          (iii) the acquisition, construction, and use of a [renewable] clean energy source; and
2173          (b) to the extent any qualifying electricity or [renewable] clean energy source under
2174     Subsection (1)(a) satisfies the cost-effectiveness criteria of Subsection 54-17-201(2)(c)(ii).
2175          (2) The following are costs that may be recoverable under Subsection (1):
2176          (a) a cost of siting, acquisition of property rights, equipment, design, licensing,
2177     permitting, construction, owning, operating, or otherwise acquiring a [renewable] clean energy
2178     source and any associated asset, including transmission;
2179          (b) a cost to acquire qualifying electricity through trade, power purchase, or other
2180     transfer;
2181          (c) a cost to acquire a bundled or unbundled renewable energy certificate, if any net
2182     revenue from the sale of a renewable energy certificate allocable to this state is also included in
2183     rates;
2184          (d) a cost to interconnect a [renewable] clean energy source to the electrical
2185     corporation's transmission and distribution system;
2186          (e) a cost associated with using a physical or financial asset to integrate, firm, or shape
2187     a [renewable] clean energy source on a firm annual basis to meet a retail electricity need; and
2188          (f) any cost associated with transmission and delivery of qualifying electricity to a
2189     retail electricity consumer.
2190          (3) (a) The commission may allow an electrical corporation to use an adjustment
2191     mechanism or reasonable method other than a rate case under Sections 54-4-4 and 54-7-12 to
2192     allow recovery of costs identified in Subsection (2).
2193          (b) If the commission allows the use of an adjustment mechanism, both the costs and
2194     any associated benefit shall be reflected in the mechanism, to the extent practicable.
2195          (c) This Subsection (3) creates no presumption for or against the use of an adjustment
2196     mechanism.
2197          (4) (a) The commission may permit an electrical corporation to include in its retail

2198     electric rates the state's share of costs prudently incurred by the electrical corporation in
2199     connection with a [renewable] clean energy source, whether or not the [renewable] clean
2200     energy source ultimately becomes operational, including costs of:
2201          (i) siting;
2202          (ii) property acquisition;
2203          (iii) equipment;
2204          (iv) design;
2205          (v) licensing;
2206          (vi) permitting; and
2207          (vii) other reasonable items related to the [renewable] clean energy source.
2208          (b) Subsection (4)(a) creates no presumption concerning the prudence or recoverability
2209     of the costs identified.
2210          (c) To the extent deferral is consistent with other applicable law, the commission may
2211     allow an electrical corporation to defer costs recoverable under Subsection (4)(a) until the
2212     recovery of the deferred costs can be considered in a rate proceeding or an adjustment
2213     mechanism created under Subsection (3).
2214          (d) An application to defer costs shall be filed within 60 days after the day on which
2215     the electrical corporation determines that the [renewable] clean energy source project is
2216     impaired under generally accepted accounting principles and will not become operational.
2217          (e) Notwithstanding the opportunity to defer costs under Subsection (4)(c), a cost
2218     incurred by an electrical corporation for siting, property acquisition, equipment, design,
2219     licensing, and permitting of a [renewable] clean energy source that the electrical corporation
2220     proposes to construct shall be included in the electrical corporation's project costs for the
2221     purpose of evaluating the project's cost-effectiveness.
2222          (f) A deferred cost under Subsection (4)(a) may not be added to, or otherwise
2223     considered in the evaluation of, the cost of a project proposed by any person other than the
2224     electrical corporation for the purpose of evaluating that person's proposal.
2225          Section 26. Section 54-17-801 is amended to read:
2226          54-17-801. Definitions.
2227          As used in this part:
2228          (1) "Clean energy contract" means a contract under this part for the delivery of

2229     electricity from one or more clean energy facilities to a contract customer requiring the use of a
2230     qualified utility's transmission or distribution system to deliver the electricity from a clean
2231     energy facility to the contract customer.
2232          (2) (a) "Clean energy facility" means a clean energy source as defined in Section
2233     54-17-601 that:
2234          (i) is located in the state; or
2235          (ii) (A) is located outside the state; and
2236          (B) provides energy from baseload clean resources.
2237          (b) "Clean energy facility" does not include an electric generating facility for which the
2238     electric generating facility's costs are included in a qualified utility's rates as a facility that
2239     provides electric service to the qualified utility's system.
2240          (3) "Clean energy tariff" means a tariff offered by a qualified utility that allows the
2241     qualified utility to procure clean generation on behalf of and to serve its customers.
2242          (4) "Contract customer" means a person who executes or will execute a [renewable]
2243     clean energy contract with a qualified utility.
2244          [(2)] (5) "Qualified utility" means an electric corporation that serves more than 200,000
2245     retail customers in the state.
2246          [(3) "Renewable energy contract" means a contract under this part for the delivery of
2247     electricity from one or more renewable energy facilities to a contract customer requiring the use
2248     of a qualified utility's transmission or distribution system to deliver the electricity from a
2249     renewable energy facility to the contract customer.]
2250          [(4) (a) "Renewable energy facility" means a renewable energy source as defined in
2251     Section 54-17-601 that:]
2252          [(i) is located in the state; or]
2253          [(ii) (A) is located outside the state; and]
2254          [(B) provides energy from baseload renewable resources.]
2255          [(b) "Renewable energy facility" does not include an electric generating facility for
2256     which the electric generating facility's costs are included in a qualified utility's rates as a facility
2257     that provides electric service to the qualified utility's system.]
2258          [(5) "Renewable energy tariff" means a tariff offered by a qualified utility that allows
2259     the qualified utility to procure renewable generation on behalf of and to serve its customers.]

2260          Section 27. Section 54-17-802 is amended to read:
2261          54-17-802. Contracts for the purchase of electricity from a clean energy facility.
2262          (1) Within a reasonable time after receiving a request from a contract customer and
2263     subject to reasonable credit requirements, a qualified utility shall enter into a [renewable] clean
2264     energy contract with the requesting contract customer to supply some or all of the contract
2265     customer's electric service from one or more [renewable] clean energy facilities selected by the
2266     contract customer.
2267          (2) Subject to a contract customer agreeing to pay the qualified utility for all
2268     incremental costs associated with metering facilities, communication facilities, and
2269     administration, a [renewable] clean energy contract may provide for electricity to be delivered
2270     to a contract customer:
2271          (a) from one [renewable] clean energy facility to a contract customer's single metered
2272     delivery location;
2273          (b) from multiple [renewable] clean energy facilities to a contract customer's single
2274     metered delivery location; or
2275          (c) from one or more [renewable] clean energy facilities to a single contract customer's
2276     multiple metered delivery locations.
2277          (3) (a) A single contract customer may aggregate multiple metered delivery locations to
2278     satisfy the minimum megawatt limit under Subsection (4).
2279          (b) Multiple contract customers may not aggregate their separate metered delivery
2280     locations to satisfy the minimum megawatt limit under Subsection (4).
2281          (4) The amount of electricity provided to a contract customer under a [renewable] clean
2282     energy contract may not be less than 2.0 megawatts.
2283          (5) The amount of electricity provided in any hour to a contract customer under a
2284     [renewable] clean energy contract may not exceed the contract customer's metered
2285     kilowatt-hour load in that hour at the metered delivery locations under the contract.
2286          (6) A [renewable] clean energy contract that meets the requirements of Subsection (4)
2287     may provide for one or more increases in the amount of electricity to be provided under the
2288     contract even though the amount of electricity to be provided by the increase is less than the
2289     minimum amount required under Subsection (4).
2290          (7) The total amount of electricity to be generated by [renewable] clean energy

2291     facilities and delivered to contract customers at any one time under all [renewable] clean
2292     energy contracts may not exceed 300 megawatts, unless the commission approves in advance a
2293     higher amount.
2294          (8) Electricity generated by a [renewable] clean energy facility and delivered to a
2295     contract customer under a [renewable] clean energy contract may not be included in a net
2296     metering program under Chapter 15, Net Metering of Electricity.
2297          Section 28. Section 54-17-803 is amended to read:
2298          54-17-803. Ownership of a clean energy facility -- Joint ownership -- Ownership
2299     of environmental attributes.
2300          (1) A [renewable] clean energy facility may be owned:
2301          (a) by a person who will be a contract customer receiving electricity from the
2302     [renewable] clean energy facility;
2303          (b) by a qualified utility;
2304          (c) by a person other than a contract customer or qualified utility; or
2305          (d) jointly by any combination of Subsections (1)(a), (b), and (c), whether in equal
2306     shares or otherwise.
2307          (2) A qualified utility may be a joint owner of a [renewable] clean energy facility only
2308     if:
2309          (a) the qualified utility consents to being a joint owner; and
2310          (b) the joint ownership agreement requires the qualified utility to recover from contract
2311     customers receiving electricity from the [renewable] clean energy facility all of the qualified
2312     utility's costs associated with its ownership of the [renewable] clean energy facility, including
2313     administrative, acquisition, operation, and maintenance costs, unless the commission, in an
2314     order issued in a separate regulatory proceeding:
2315          (i) authorizes the qualified utility to recover some of those costs from customers other
2316     than contract customers;
2317          (ii) determines that the rate to be paid for electricity from the [renewable] clean energy
2318     facility by customers other than contract customers is cost effective; and
2319          (iii) approves the inclusion of the rate determined under Subsection (2)(b)(ii) in general
2320     rates or through a commission approved cost recovery mechanism.
2321          (3) To the extent that any electricity from a [renewable] clean energy facility to be

2322     delivered to a contract customer is owned by a person other than the contract customer:
2323          (a) the qualified utility shall, by contract with the owner of the electricity to be sold
2324     from the [renewable] clean energy facility, purchase electricity for resale to one or more
2325     contract customers;
2326          (b) the qualified utility shall sell that electricity to the contract customer or customers
2327     under [renewable] clean energy contracts with the same duration and pricing as the contract
2328     between the qualified utility and the owner of the electricity to be sold from the [renewable]
2329     clean energy facility; and
2330          (c) the qualified utility's contract with the owner of the electricity to be sold from the
2331     [renewable] clean energy facility shall provide that the qualified utility's obligation to purchase
2332     electricity under that contract ceases if the contract customer defaults in its obligation to
2333     purchase and pay for the electricity under the contract with the qualified utility.
2334          (4) The right to any environmental attribute associated with a [renewable] clean energy
2335     facility shall remain the property of the [renewable] clean energy facility's owner, except to the
2336     extent that a contract to which the owner is a party provides otherwise.
2337          Section 29. Section 54-17-804 is amended to read:
2338          54-17-804. Exemption from certificate of convenience and necessity
2339     requirements.
2340          (1) A qualified utility is not required to comply with Section 54-4-25 with respect to a
2341     [renewable] clean energy facility that is the subject of a [renewable] clean energy contract if:
2342          (a) each contract necessary for the commission to determine compliance with this part
2343     is filed with the commission; and
2344          (b) the commission determines that each contract relating to the [renewable] clean
2345     energy facility complies with this part.
2346          (2) In making its determination under Subsection (1)(b), the commission may process
2347     and consider together multiple [renewable] clean energy contracts between the same contract
2348     customer and the qualified utility providing for the delivery of electricity from a [renewable]
2349     clean energy facility to the contract customer's multiple metered delivery locations.
2350          Section 30. Section 54-17-805 is amended to read:
2351          54-17-805. Costs associated with delivering electricity from a clean energy facility
2352     to a contract customer.

2353          (1) To the extent that a [renewable] clean energy contract provides for the delivery of
2354     electricity from a [renewable] clean energy facility owned by the contract customer, the
2355     [renewable] clean energy contract shall require the contract customer to pay for the use of the
2356     qualified utility's transmission or distribution facilities at the qualified utility's applicable rates,
2357     which may include transmission costs at the qualified utility's applicable rate approved by the
2358     Federal Energy Regulatory Commission.
2359          (2) To the extent that a [renewable] clean energy contract provides for the delivery of
2360     electricity from a [renewable] clean energy facility owned by a person other than the qualified
2361     utility or the contract customer, the [renewable] clean energy contract shall require the contract
2362     customer to bear all reasonably identifiable costs that the qualified utility incurs in delivering
2363     the electricity from the [renewable] clean energy facility to the contract customer, including all
2364     costs to procure and deliver electricity and for billing, administrative, and related activities, as
2365     determined by the commission.
2366          (3) A qualified utility that enters a [renewable] clean energy contract shall charge a
2367     contract customer for all metered electric service delivered to the contract customer, including
2368     generation, transmission, and distribution service, at the qualified utility's applicable tariff
2369     rates, excluding:
2370          (a) any kilowatt hours of electricity delivered from the [renewable] clean energy
2371     facility, based on the time of delivery, adjusted for transmission losses;
2372          (b) any kilowatts of electricity delivered from the [renewable] clean energy facility that
2373     coincide with the contract customer's monthly metered kilowatt demand measurement, adjusted
2374     for transmission losses;
2375          (c) any transmission and distribution service that the contract customer pays for under
2376     Subsection (1) or (2); and
2377          (d) any transmission service that the contract customer provides under Subsection (2)
2378     to deliver generation from the [renewable] clean energy facility.
2379          Section 31. Section 54-17-806 is amended to read:
2380          54-17-806. Qualified utility clean energy tariff.
2381          (1) The commission may authorize a qualified utility to implement a [renewable] clean
2382     energy tariff in accordance with this section if the commission determines the tariff that the
2383     qualified utility proposes is reasonable and in the public interest.

2384          (2) The commission may authorize a tariff under Subsection (1) to apply to:
2385          (a) a qualified utility customer with an aggregated electrical load of at least five
2386     megawatts; or
2387          (b) a combination of qualified utility customers who are separately metered if:
2388          (i) the aggregated electrical load of the qualified utility customers is at least five
2389     megawatts; and
2390          (ii) each of the qualified utility customers is located within a project area, as defined in
2391     Section 11-58-102.
2392          (3) A customer who agrees to take service that is subject to the [renewable] clean
2393     energy tariff under this section shall pay:
2394          (a) the customer's normal tariff rate;
2395          (b) an incremental charge in an amount equal to the difference between the cost to the
2396     qualified utility to supply [renewable] clean generation to the [renewable] clean energy tariff
2397     customer and the qualified utility's avoided costs as defined in Subsection 54-2-1(1), or a
2398     different methodology recommended by the qualified utility; and
2399          (c) an administrative fee in an amount approved by the commission.
2400          (4) The commission shall allow a qualified utility to recover the qualified utility's
2401     prudently incurred cost of [renewable] clean generation procured pursuant to the tariff
2402     established in this section that is not otherwise recovered from the proceeds of the tariff paid by
2403     customers agreeing to service that is subject to the [renewable] clean energy tariff.
2404          Section 32. Section 54-17-807 is amended to read:
2405          54-17-807. Solar photovoltaic or thermal solar energy facilities.
2406          (1) As used in this section, "acquire" means to purchase, construct, or purchase the
2407     output from a photovoltaic or thermal solar energy resource.
2408          (2) (a) In accordance with this section, a qualified utility may file an application with
2409     the commission for approval to acquire a photovoltaic or thermal solar energy resource using
2410     rate recovery based on a competitive market price, except as provided in Subsection (2)(b).
2411          (b) A qualified utility may not, under this section, acquire a photovoltaic or thermal
2412     solar energy resource with a generating capacity that is two megawatts or less per meter if that
2413     resource is located on the customer's side of the meter.
2414          (3) The energy resource acquired pursuant to this section may be owned solely or

2415     jointly by a qualified utility or another entity:
2416          (a) to provide [renewable] clean energy to a contract customer as provided in Section
2417     54-17-803;
2418          (b) to serve energy to a qualified utility customer as provided in Section 54-17-806;
2419          (c) to serve energy to any customers of the qualified utility if the proposed energy
2420     resource's nameplate capacity does not exceed 300 megawatts or, if applicable, the quantity of
2421     capacity that is the subject of a contract for the purchase of electricity does not exceed 300
2422     megawatts, so long as the qualified utility proceeds under and complies with Part 4, Voluntary
2423     Request for Resource Decision Review; or
2424          (d) to serve energy to any customers of the qualified utility if the proposed energy
2425     resource's nameplate capacity exceeds 300 megawatts or, if applicable, the quantity of capacity
2426     that is the subject of a contract for the purchase of electricity exceeds 300 megawatts, so long
2427     as the qualified utility complies with this chapter.
2428          (4) Except as provided in Subsections (3)(c) and (d), the following do not apply to an
2429     application submitted under Subsection (2):
2430          (a) Part 1, General Provisions;
2431          (b) Part 2, Solicitation Process;
2432          (c) Part 3, Resource Plans and Significant Energy Resource Approval;
2433          (d) Part 4, Voluntary Request for Resource Decision Review; and
2434          (e) Section 54-17-502.
2435          (5) The application described in Subsection (2) shall include:
2436          (a) a proposed solicitation process for the energy resource;
2437          (b) the criteria proposed to be used to evaluate the responses to the solicitation:
2438          (i) as determined by the customer, if the energy resource is sought to serve a customer
2439     pursuant to Subsection (3)(a) or (b); or
2440          (ii) as proposed by the qualified utility, if the energy resource is sought to serve the
2441     customers of the qualified utility pursuant to Subsection (3)(c) or (d); and
2442          (c) any other information the commission may require.
2443          (6) (a) Before approving a solicitation process under this section for an energy resource
2444     to serve customers of the qualified utility pursuant to Subsection (3)(c) or (d), the commission
2445     shall:

2446          (i) hold a public hearing; and
2447          (ii) provide an opportunity for public comment.
2448          (b) The commission may approve a solicitation process under this section only if the
2449     commission determines that the solicitation and evaluation processes to be used will create a
2450     level playing field in which the qualified utility and other bidders can compete fairly, including
2451     with respect to interconnection and transmission requirements imposed on bidders by the
2452     solicitation within the control of the commission and the qualified utility, excluding its
2453     federally regulated transmission function, and will otherwise serve the public interest.
2454          (7) (a) Upon completion of the solicitation process approved under Subsection (6), the
2455     qualified utility may seek approval from the commission to acquire the energy resource
2456     identified through the solicitation process as the winning bid.
2457          (b) Before approving acquisition of an energy resource acquired pursuant to this
2458     section, the commission shall:
2459          (i) hold a public hearing;
2460          (ii) provide an opportunity for public comment;
2461          (iii) determine whether the solicitation and evaluation processes complied with this
2462     section, commission rules, and the commission's order approving the solicitation process; and
2463          (iv) determine whether the acquisition of the energy resource is just and reasonable,
2464     and in the public interest.
2465          (c) The commission may approve a qualified utility's ownership of an energy resource
2466     or a power purchase agreement containing a purchase option under Subsection (3)(c) or (d)
2467     with rate recovery based on a competitive market price only if the commission determines that
2468     the qualified utility's bid is the lowest cost ownership option for the qualified utility.
2469          (d) If the commission approves a qualified utility's acquisition of an energy resource
2470     under Subsection (3), including entering into a power purchase agreement containing a
2471     purchase option, using rate recovery based on a competitive market price:
2472          (i) the prices approved by the commission shall constitute competitive market prices
2473     for purposes of this section; and
2474          (ii) assets owned by the qualified utility and used to provide service as approved under
2475     this section are not public utility property.
2476          (8) If upon completion of a solicitation process approved under Subsection (6) the

2477     qualified utility proposes not to acquire an energy resource, the qualified utility shall file with
2478     the commission a report explaining its reasons for not acquiring the lowest cost resource bid
2479     into the solicitation, along with any other information the commission requires.
2480          (9) Within six months after a competitive market price for a solar energy resource
2481     acquired under Subsection (3)(c) or (d) has been identified pursuant to this section, or for such
2482     longer period as the commission may determine to be in the public interest, a qualified utility
2483     may file an application with the commission seeking approval to acquire another energy
2484     resource similar to the energy resource for which a competitive market price was established
2485     without going through a new solicitation process. The commission may approve the application
2486     if the qualified utility demonstrates a need to acquire the energy resource, that the competitive
2487     market price remains reasonable, and that the acquisition is in the public interest.
2488          (10) No later than 180 days before the end of the term approved by the commission for
2489     an energy resource acquired under this section and owned by the qualified utility, the qualified
2490     utility shall file with the commission a request for determination of an appropriate disposition
2491     of the energy resource asset, except that the qualified utility is permitted to retain the benefits
2492     or proceeds and shall be required to assume the costs and risks of ownership of the energy
2493     resource.
2494          (11) The commission shall adopt rules, in accordance with Title 63G, Chapter 3, Utah
2495     Administrative Rulemaking Act:
2496          (a) addressing the content and filing of an application under this section;
2497          (b) to establish the solicitation process and criteria to be used to identify the
2498     competitive market price and select an energy resource; and
2499          (c) addressing other factors determined by the commission to be relevant to protect the
2500     public interest and to implement this section.
2501          Section 33. Section 54-17-901 is amended to read:
2502          54-17-901. Community Clean Energy Act.
2503          This part is known as the "Community [Renewable] Clean Energy Act."
2504          Section 34. Section 54-17-902 is amended to read:
2505          54-17-902. Definitions.
2506          As used in this part:
2507          (1) (a) "Auxiliary services" means those services necessary to safely and reliably:

2508          (i) interconnect and transmit electric power from any [renewable] clean energy
2509     resource constructed or acquired for a community [renewable] clean energy program; and
2510          (ii) integrate and supplement electric power from any [renewable] clean energy
2511     resource.
2512          (b) "Auxiliary services" shall include applicable Federal Energy Regulatory
2513     Commission requirements governing transmission and interconnection services.
2514          (2) "Clean electric energy supply" means incremental clean energy resources that are
2515     developed to meet the equivalent of the annual electric energy consumption of participating
2516     customers within a participating community.
2517          (3) "Clean energy resource" means:
2518          (a) electric energy generated by a source that is naturally replenished and includes one
2519     or more of the following:
2520          (i) wind;
2521          (ii) solar photovoltaic or thermal solar technology;
2522          (iii) a geothermal resource; or
2523          (iv) a hydroelectric plant including a pumped storage hydropower facility;
2524          (b) use of an energy efficient and sustainable technology the commission has approved
2525     for implementation that:
2526          (i) increases efficient energy usage;
2527          (ii) is capable of being used for demand response;
2528          (iii) facilitates the use and development of clean generation resources through electrical
2529     grid management or energy storage; or
2530          (iv) uses carbon capture utilization and sequestration; or
2531          (c) energy derived from nuclear fuel.
2532          [(2)] (4) "Commission" means the Public Service Commission created in Section
2533     54-1-1.
2534          [(3)] (5) "Community [renewable] clean energy program" means the program approved
2535     by the commission under Section 54-17-904 that allows a qualified utility to provide electric
2536     service from one or more [renewable] clean energy resources to a participating customer within
2537     a participating community.
2538          [(4)] (6) "County" means the unincorporated area of a county.

2539          [(5)] (7) "Division" means the Division of Public Utilities created in Section 54-4a-1.
2540          [(6)] (8) (a) "Initial opt-out period" means the period of time immediately after the
2541     community [renewable] clean energy program's commencement, as established by the
2542     commission by rule made pursuant to Section 54-17-909, during which a participating
2543     customer may elect to leave the program without penalty.
2544          (b) "Initial opt-out period" may not be shorter than three typical billing cycles of the
2545     qualified utility.
2546          [(7)] (9) "Municipality" means a city or a town as defined in Section 10-1-104.
2547          [(8)] (10) "Office" means the Office of Consumer Services created in Section
2548     54-10a-101.
2549          [(9)] (11) "Ongoing costs" means the costs allocated to the state for transmission and
2550     distribution facilities, retail services, and generation assets that are not replaced assets.
2551          [(10)] (12) "Participating community" means a municipality or a county:
2552          (a) whose residents are served by a qualified utility; and
2553          (b) the municipality or county meets the requirements in Section 54-17-903.
2554          [(11)] (13) "Participating customer" means:
2555          (a) a customer of a qualified utility located within the boundary of a municipality or
2556     county where a community [renewable] clean energy program has been approved by the
2557     commission; and
2558          (b) the customer has not exercised the right to not participate in the community
2559     [renewable] clean energy program as provided in Section 54-17-905.
2560          [(12)] (14) "Qualified utility" means the same as that term is defined in Section
2561     54-17-801.
2562          [(13) "Renewable electric energy supply" means incremental renewable energy
2563     resources that are developed to meet the equivalent of the annual electric energy consumption
2564     of participating customers within a participating community.]
2565          [(14) "Renewable energy resource" means:]
2566          [(a) electric energy generated by a source that is naturally replenished and includes one
2567     or more of the following:]
2568          [(i) wind;]
2569          [(ii) solar photovoltaic or thermal solar technology;]

2570          [(iii) a geothermal resource; or]
2571          [(iv) a hydroelectric plant; or]
2572          [(b) use of an energy efficient and sustainable technology the commission has approved
2573     for implementation that:]
2574          [(i) increases efficient energy usage;]
2575          [(ii) is capable of being used for demand response; or]
2576          [(iii) facilitates the use and development of renewable generation resources through
2577     electrical grid management or energy storage.]
2578          (15) "Replaced asset" means an existing thermal energy resource:
2579          (a) that was built or acquired, in whole or in part, by a qualified utility to serve the
2580     qualified utility's customers, including customers within a participating community;
2581          (b) that was built or acquired prior to commission approval and the effective date of the
2582     community [renewable] clean energy program; and
2583          (c) to the extent the asset is no longer used to serve participating customers.
2584          Section 35. Section 54-17-903 is amended to read:
2585          54-17-903. Program requirement for a municipality or county.
2586          (1) Customers of a qualified utility may be served by the community [renewable] clean
2587     energy program described in this part if the municipality or county satisfies the requirements of
2588     Subsection (2).
2589          (2) The municipality or county in which the customer resides shall:
2590          (a) adopt a resolution no later than December 31, 2019, that states a goal of achieving
2591     an amount equivalent to 100% of the annual electric energy supply for participating customers
2592     from a [renewable] clean energy resource by 2030;
2593          (b) enter into an agreement with a qualified utility:
2594          (i) with the stipulation of payment by the municipality or county to the qualified utility
2595     for the costs of:
2596          (A) third-party expertise contracted for by the division and the office, for assistance
2597     with activities associated with initial approval of the community [renewable] clean energy
2598     program; and
2599          (B) providing notice to the municipality's or county's customers as provided in Section
2600     54-17-905;

2601          (ii) determining the obligation for the payment of any termination charges under
2602     Subsection 54-17-905(3) that are not paid by a participating customer and not included in
2603     participating customer rates under Subsections 54-17-904(2) and (4); and
2604          (iii) identifying any initially proposed replaced asset;
2605          (c) adopt a local ordinance that:
2606          (i) establishes participation in the [renewable] clean energy program; and
2607          (ii) is consistent with the terms of the agreement entered into with the qualified utility
2608     under Subsection (2)(b); and
2609          (d) comply with any other terms or conditions required by the commission.
2610          (3) The local ordinance required in Subsection (2)(c) shall be adopted by the
2611     municipality or county within 90 days after the date of the commission order approving the
2612     community [renewable] clean energy program.
2613          Section 36. Section 54-17-904 is amended to read:
2614          54-17-904. Authority of commission to approve a community clean energy
2615     program.
2616          (1) After the commission has adopted administrative rules as required under Section
2617     54-17-909, a qualified utility may file an application with the commission for approval of a
2618     community [renewable] clean energy program.
2619          (2) The application shall include:
2620          (a) the names of each municipality and county to be served by the community
2621     [renewable] clean energy program;
2622          (b) a map of the geographic boundaries of each municipality and county;
2623          (c) the number of customers served by the qualified utility within those boundaries;
2624          (d) projected rates for participating customers that take into account:
2625          (i) the estimated number of customers expected to participate in the program;
2626          (ii) the quantifiable costs and benefits to the qualified utility and all of the qualified
2627     utility's customers in their capacity as ratepayers of the qualified utility, excluding costs or
2628     benefits that do not directly affect the qualified utility, including as applicable:
2629          (A) replaced assets;
2630          (B) auxiliary services; and
2631          (C) new [renewable] clean energy resources used to serve the community [renewable]

2632     clean energy program; and
2633          (iii) the ongoing costs at the time of the application;
2634          (e) the agreement entered into with the qualified utility under Section 54-17-903;
2635          (f) a proposed plan established by the participating community addressing low-income
2636     programs and assistance;
2637          (g) a proposed solicitation process for the acquisition of [renewable] clean energy
2638     resources as provided in Section 54-17-908; and
2639          (h) any other information the commission may require by rule.
2640          (3) The commission may approve an application for a community [renewable] clean
2641     energy program if the commission finds:
2642          (a) the application meets all of the requirements in this section and administrative rules
2643     adopted by the commission in accordance with Sections 54-17-908 and 54-17-909 to
2644     implement this part; and
2645          (b) the community [renewable] clean energy program is in the public interest.
2646          (4) The rates approved by the commission for participating customers:
2647          (a) shall be based on the factors included in Subsection (2)(d) and any other factor
2648     determined by the commission to be in the public interest;
2649          (b) may not result in any shift of costs or benefits to any nonparticipating customer, or
2650     any other customer of the qualified utility beyond the participating community boundaries; and
2651          (c) shall take into account any quantifiable benefits to the qualified utility, and the
2652     qualified utility's customers, including participating customers in their capacity as ratepayers of
2653     the qualified utility, excluding costs or benefits that do not directly affect the qualified utility's
2654     costs of service.
2655          (5) (a) Each municipality or county included in the application shall be a party to the
2656     regulatory proceeding.
2657          (b) A municipality or county identified in the application shall provide information to
2658     all relevant parties in accordance with the commission's rules for discovery, notwithstanding
2659     Title 63G, Chapter 2, Government Records Access and Management Act.
2660          (6) The community [renewable] clean energy program may not be implemented until
2661     after the municipality or county adopts the ordinance required in Section 54-17-903.
2662          Section 37. Section 54-17-905 is amended to read:

2663          54-17-905. Customer participation -- Election not to participate.
2664          (1) (a) After commission approval of a community [renewable] clean energy program
2665     and adoption of the ordinance by the participating community as required in Section
2666     54-17-903, a qualified utility shall provide notice to each of its customers within the
2667     participating community that includes:
2668          (i) the projected rates and terms of participation in the community [renewable] clean
2669     energy program approved by the commission;
2670          (ii) an estimated comparison to otherwise applicable existing rates;
2671          (iii) an explanation that the customer may elect to not participate in the community
2672     [renewable] clean energy program by notifying the qualified utility; and
2673          (iv) any other information required by the commission.
2674          (b) The qualified utility shall provide the notice required under Subsection (1)(a) to
2675     each customer:
2676          (i) no less than twice within the period of 60 days immediately preceding the date
2677     required to opt out of the community [renewable] clean energy program; and
2678          (ii) separately from the customer's monthly billing.
2679          (c) The qualified utility shall provide the information required under Subsection (1)(a)
2680     in person to each customer with an electric load of one megawatt or greater measured at a
2681     single meter.
2682          (2) (a) An existing customer of the qualified utility may elect to not participate in the
2683     community [renewable] clean energy program and continue to pay applicable existing rates by
2684     giving notice to the qualified utility in the manner and within the time period determined by the
2685     commission.
2686          (b) After implementation of the community [renewable] clean energy program:
2687          (i) a customer that previously elected not to participate in the program may become a
2688     participating customer as allowed by commission rules and by giving notice to the qualified
2689     utility in the manner required by the commission; and
2690          (ii) a customer of the qualified utility that begins taking electric service within a
2691     participating community after the date of implementation of the community [renewable] clean
2692     energy program shall:
2693          (A) be given notice as determined by the commission; and

2694          (B) shall become a participating customer unless the person elects not to participate by
2695     giving notice to the qualified utility in the manner and within the time period determined by the
2696     commission.
2697          (3) (a) A customer that does not opt out of the community [renewable] clean energy
2698     program under Subsection (2) may later discontinue participation in the community
2699     [renewable] clean energy program as allowed by the commission as described in Subsection
2700     (3)(b) or (c).
2701          (b) (i) During the initial opt-out period, a participating customer may elect to leave the
2702     program by giving notice to the qualified utility in the manner determined by the commission.
2703          (ii) A participating customer that opts out as described in Subsection (3)(b)(i) is not
2704     subject to a termination charge.
2705          (c) After the community [renewable] clean energy program's initial opt-out period, a
2706     participating customer may elect to leave the program by:
2707          (i) giving notice to the qualified utility in the manner determined by the commission;
2708     and
2709          (ii) paying a termination charge as determined by the commission that may include the
2710     cost of [renewable] clean energy resources acquired or constructed for the community
2711     [renewable] clean energy program that are not being utilized by participating customers as
2712     necessary to prevent shifting costs to other customers of the qualified utility.
2713          (4) (a) A customer of a qualified utility that is annexed into the boundaries of a
2714     participating community after the effective date of the community [renewable] clean energy
2715     program shall be given notice as provided in Subsection (1) advising the customer of the option
2716     to opt out of the program.
2717          (b) A participating customer located in a portion of a county that is annexed into a
2718     municipality that is not a participating community shall continue to be included in the
2719     [renewable] clean energy program if the customer remains a customer of the qualified utility.
2720          (c) If a participating customer is annexed into a municipality that provides electric
2721     service to the municipality's residents:
2722          (i) the customer may continue to be served by the qualified utility under the community
2723     [renewable] clean energy program if the qualified utility enters into an agreement with the
2724     municipality under Section 54-3-30; or

2725          (ii) the municipality shall pay the termination charge for each participating customer
2726     that is no longer served by the qualified utility.
2727          (5) A residential customer that is participating in the net metering program under Title
2728     54, Chapter 15, Net Metering of Electricity, may not be a participating customer under this
2729     part.
2730          (6) (a) The cost of providing notice under Subsection (1) shall be paid by the
2731     participating communities.
2732          (b) All other notices required under this section shall be paid for as program costs and
2733     recovered through participating customers' rates.
2734          Section 38. Section 54-17-906 is amended to read:
2735          54-17-906. Customer billing.
2736          The qualified utility shall:
2737          (1) include information on its monthly bills to participating customers identifying the
2738     community [renewable] clean energy program cost; and
2739          (2) provide notice to participating customers of any change in rate for participation in
2740     the community [renewable] clean energy program.
2741          Section 39. Section 54-17-908 is amended to read:
2742          54-17-908. Acquisition of clean energy resources.
2743          (1) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
2744     commission shall make rules outlining a competitive solicitation process for the acquisition of
2745     [renewable] clean assets acquired by the qualified utility for purposes of this act.
2746          (2) The solicitation rules shall include the following provisions:
2747          (a) solar photovoltaic or thermal solar energy facilities may be acquired under the
2748     provisions of Section 54-17-807;
2749          (b) [renewable] clean energy resources developed under this part shall be constructed
2750     or acquired subject to an option by the qualified utility to own the [renewable] clean energy
2751     resource so long as including the option in a solicitation is in the interest of participating
2752     customers and other customers of the qualified utility; and
2753          (c) any other requirement determined by the commission to be in the public interest.
2754          (3) Upon completion of a solicitation under this section and the rules adopted by the
2755     commission to implement this section, the commission may approve cost recovery for a

2756     [renewable] clean energy resource for the community [renewable] clean energy program if
2757     approval of the [renewable] clean energy resource:
2758          (a) complies with the provisions of this part;
2759          (b) does not result in shifting of costs or benefits to other customers of the qualified
2760     utility; and
2761          (c) is in the public interest.
2762          Section 40. Section 59-2-102 is amended to read:
2763          59-2-102. Definitions.
2764          As used in this chapter:
2765          (1) (a) "Acquisition cost" means any cost required to put an item of tangible personal
2766     property into service.
2767          (b) "Acquisition cost" includes:
2768          (i) the purchase price of a new or used item;
2769          (ii) the cost of freight, shipping, loading at origin, unloading at destination, crating,
2770     skidding, or any other applicable cost of shipping;
2771          (iii) the cost of installation, engineering, rigging, erection, or assembly, including
2772     foundations, pilings, utility connections, or similar costs; and
2773          (iv) sales and use taxes.
2774          (2) "Aerial applicator" means aircraft or rotorcraft used exclusively for the purpose of
2775     engaging in dispensing activities directly affecting agriculture or horticulture with an
2776     airworthiness certificate from the Federal Aviation Administration certifying the aircraft or
2777     rotorcraft's use for agricultural and pest control purposes.
2778          (3) "Air charter service" means an air carrier operation that requires the customer to
2779     hire an entire aircraft rather than book passage in whatever capacity is available on a scheduled
2780     trip.
2781          (4) "Air contract service" means an air carrier operation available only to customers
2782     that engage the services of the carrier through a contractual agreement and excess capacity on
2783     any trip and is not available to the public at large.
2784          (5) "Aircraft" means the same as that term is defined in Section 72-10-102.
2785          (6) (a) Except as provided in Subsection (6)(b), "airline" means an air carrier that:
2786          (i) operates:

2787          (A) on an interstate route; and
2788          (B) on a scheduled basis; and
2789          (ii) offers to fly one or more passengers or cargo on the basis of available capacity on a
2790     regularly scheduled route.
2791          (b) "Airline" does not include an:
2792          (i) air charter service; or
2793          (ii) air contract service.
2794          (7) "Assessment roll" or "assessment book" means a permanent record of the
2795     assessment of property as assessed by the county assessor and the commission and may be
2796     maintained manually or as a computerized file as a consolidated record or as multiple records
2797     by type, classification, or categories.
2798          (8) "Base parcel" means a parcel of property that was legally:
2799          (a) subdivided into two or more lots, parcels, or other divisions of land; or
2800          (b) (i) combined with one or more other parcels of property; and
2801          (ii) subdivided into two or more lots, parcels, or other divisions of land.
2802          (9) (a) "Certified revenue levy" means a property tax levy that provides an amount of
2803     ad valorem property tax revenue equal to the sum of:
2804          (i) the amount of ad valorem property tax revenue to be generated statewide in the
2805     previous year from imposing a multicounty assessing and collecting levy, as specified in
2806     Section 59-2-1602; and
2807          (ii) the product of:
2808          (A) eligible new growth, as defined in Section 59-2-924; and
2809          (B) the multicounty assessing and collecting levy certified by the commission for the
2810     previous year.
2811          (b) For purposes of this Subsection (9), "ad valorem property tax revenue" does not
2812     include property tax revenue received by a taxing entity from personal property that is:
2813          (i) assessed by a county assessor in accordance with Part 3, County Assessment; and
2814          (ii) semiconductor manufacturing equipment.
2815          (c) For purposes of calculating the certified revenue levy described in this Subsection
2816     (9), the commission shall use:
2817          (i) the taxable value of real property assessed by a county assessor contained on the

2818     assessment roll;
2819          (ii) the taxable value of real and personal property assessed by the commission; and
2820          (iii) the taxable year end value of personal property assessed by a county assessor
2821     contained on the prior year's assessment roll.
2822          (10) "County-assessed commercial vehicle" means:
2823          (a) any commercial vehicle, trailer, or semitrailer that is not apportioned under Section
2824     41-1a-301 and is not operated interstate to transport the vehicle owner's goods or property in
2825     furtherance of the owner's commercial enterprise;
2826          (b) any passenger vehicle owned by a business and used by its employees for
2827     transportation as a company car or vanpool vehicle; and
2828          (c) vehicles that are:
2829          (i) especially constructed for towing or wrecking, and that are not otherwise used to
2830     transport goods, merchandise, or people for compensation;
2831          (ii) used or licensed as taxicabs or limousines;
2832          (iii) used as rental passenger cars, travel trailers, or motor homes;
2833          (iv) used or licensed in this state for use as ambulances or hearses;
2834          (v) especially designed and used for garbage and rubbish collection; or
2835          (vi) used exclusively to transport students or their instructors to or from any private,
2836     public, or religious school or school activities.
2837          (11) "Eligible judgment" means a final and unappealable judgment or order under
2838     Section 59-2-1330:
2839          (a) that became a final and unappealable judgment or order no more than 14 months
2840     before the day on which the notice described in Section 59-2-919.1 is required to be provided;
2841     and
2842          (b) for which a taxing entity's share of the final and unappealable judgment or order is
2843     greater than or equal to the lesser of:
2844          (i) $5,000; or
2845          (ii) 2.5% of the total ad valorem property taxes collected by the taxing entity in the
2846     previous fiscal year.
2847          (12) (a) "Escaped property" means any property, whether personal, land, or any
2848     improvements to the property, that is subject to taxation and is:

2849          (i) inadvertently omitted from the tax rolls, assigned to the incorrect parcel, or assessed
2850     to the wrong taxpayer by the assessing authority;
2851          (ii) undervalued or omitted from the tax rolls because of the failure of the taxpayer to
2852     comply with the reporting requirements of this chapter; or
2853          (iii) undervalued because of errors made by the assessing authority based upon
2854     incomplete or erroneous information furnished by the taxpayer.
2855          (b) "Escaped property" does not include property that is undervalued because of the use
2856     of a different valuation methodology or because of a different application of the same valuation
2857     methodology.
2858          (13) (a) "Fair market value" means the amount at which property would change hands
2859     between a willing buyer and a willing seller, neither being under any compulsion to buy or sell
2860     and both having reasonable knowledge of the relevant facts.
2861          (b) For purposes of taxation, "fair market value" shall be determined using the current
2862     zoning laws applicable to the property in question, except in cases where there is a reasonable
2863     probability of a change in the zoning laws affecting that property in the tax year in question and
2864     the change would have an appreciable influence upon the value.
2865          (14) "Geothermal fluid" means water in any form at temperatures greater than 120
2866     degrees centigrade naturally present in a geothermal system.
2867          (15) "Geothermal resource" means:
2868          (a) the natural heat of the earth at temperatures greater than 120 degrees centigrade;
2869     and
2870          (b) the energy, in whatever form, including pressure, present in, resulting from, created
2871     by, or which may be extracted from that natural heat, directly or through a material medium.
2872          (16) (a) "Goodwill" means:
2873          (i) acquired goodwill that is reported as goodwill on the books and records that a
2874     taxpayer maintains for financial reporting purposes; or
2875          (ii) the ability of a business to:
2876          (A) generate income that exceeds a normal rate of return on assets and that results from
2877     a factor described in Subsection (16)(b); or
2878          (B) obtain an economic or competitive advantage resulting from a factor described in
2879     Subsection (16)(b).

2880          (b) The following factors apply to Subsection (16)(a)(ii):
2881          (i) superior management skills;
2882          (ii) reputation;
2883          (iii) customer relationships;
2884          (iv) patronage; or
2885          (v) a factor similar to Subsections (16)(b)(i) through (iv).
2886          (c) "Goodwill" does not include:
2887          (i) the intangible property described in Subsection (19)(a) or (b);
2888          (ii) locational attributes of real property, including:
2889          (A) zoning;
2890          (B) location;
2891          (C) view;
2892          (D) a geographic feature;
2893          (E) an easement;
2894          (F) a covenant;
2895          (G) proximity to raw materials;
2896          (H) the condition of surrounding property; or
2897          (I) proximity to markets;
2898          (iii) value attributable to the identification of an improvement to real property,
2899     including:
2900          (A) reputation of the designer, builder, or architect of the improvement;
2901          (B) a name given to, or associated with, the improvement; or
2902          (C) the historic significance of an improvement; or
2903          (iv) the enhancement or assemblage value specifically attributable to the interrelation
2904     of the existing tangible property in place working together as a unit.
2905          (17) "Governing body" means:
2906          (a) for a county, city, or town, the legislative body of the county, city, or town;
2907          (b) for a special district under Title 17B, Limited Purpose Local Government Entities -
2908     Special Districts, the special district's board of trustees;
2909          (c) for a school district, the local board of education;
2910          (d) for a special service district under Title 17D, Chapter 1, Special Service District

2911     Act:
2912          (i) the legislative body of the county or municipality that created the special service
2913     district, to the extent that the county or municipal legislative body has not delegated authority
2914     to an administrative control board established under Section 17D-1-301; or
2915          (ii) the administrative control board, to the extent that the county or municipal
2916     legislative body has delegated authority to an administrative control board established under
2917     Section 17D-1-301; or
2918          (e) for a public infrastructure district under Title 17D, Chapter 4, Public Infrastructure
2919     District Act, the public infrastructure district's board of trustees.
2920          (18) (a) Except as provided in Subsection (18)(c), "improvement" means a building,
2921     structure, fixture, fence, or other item that is permanently attached to land, regardless of
2922     whether the title has been acquired to the land, if:
2923          (i) (A) attachment to land is essential to the operation or use of the item; and
2924          (B) the manner of attachment to land suggests that the item will remain attached to the
2925     land in the same place over the useful life of the item; or
2926          (ii) removal of the item would:
2927          (A) cause substantial damage to the item; or
2928          (B) require substantial alteration or repair of a structure to which the item is attached.
2929          (b) "Improvement" includes:
2930          (i) an accessory to an item described in Subsection (18)(a) if the accessory is:
2931          (A) essential to the operation of the item described in Subsection (18)(a); and
2932          (B) installed solely to serve the operation of the item described in Subsection (18)(a);
2933     and
2934          (ii) an item described in Subsection (18)(a) that is temporarily detached from the land
2935     for repairs and remains located on the land.
2936          (c) "Improvement" does not include:
2937          (i) an item considered to be personal property pursuant to rules made in accordance
2938     with Section 59-2-107;
2939          (ii) a moveable item that is attached to land for stability only or for an obvious
2940     temporary purpose;
2941          (iii) (A) manufacturing equipment and machinery; or

2942          (B) essential accessories to manufacturing equipment and machinery;
2943          (iv) an item attached to the land in a manner that facilitates removal without substantial
2944     damage to the land or the item; or
2945          (v) a transportable factory-built housing unit as defined in Section 59-2-1502 if that
2946     transportable factory-built housing unit is considered to be personal property under Section
2947     59-2-1503.
2948          (19) "Intangible property" means:
2949          (a) property that is capable of private ownership separate from tangible property,
2950     including:
2951          (i) money;
2952          (ii) credits;
2953          (iii) bonds;
2954          (iv) stocks;
2955          (v) representative property;
2956          (vi) franchises;
2957          (vii) licenses;
2958          (viii) trade names;
2959          (ix) copyrights; and
2960          (x) patents;
2961          (b) a low-income housing tax credit;
2962          (c) goodwill; or
2963          (d) a clean or renewable energy tax credit or incentive, including:
2964          (i) a federal renewable energy production tax credit under Section 45, Internal Revenue
2965     Code;
2966          (ii) a federal energy credit for qualified renewable electricity production facilities under
2967     Section 48, Internal Revenue Code;
2968          (iii) a federal grant for a renewable energy property under American Recovery and
2969     Reinvestment Act of 2009, Pub. L. No. 111-5, Section 1603; and
2970          (iv) a tax credit under Subsection 59-7-614(5).
2971          (20) "Livestock" means:
2972          (a) a domestic animal;

2973          (b) a fish;
2974          (c) a fur-bearing animal;
2975          (d) a honeybee; or
2976          (e) poultry.
2977          (21) "Low-income housing tax credit" means:
2978          (a) a federal low-income housing tax credit under Section 42, Internal Revenue Code;
2979     or
2980          (b) a low-income housing tax credit under Section 59-7-607 or Section 59-10-1010.
2981          (22) "Metalliferous minerals" includes gold, silver, copper, lead, zinc, and uranium.
2982          (23) "Mine" means a natural deposit of either metalliferous or nonmetalliferous
2983     valuable mineral.
2984          (24) "Mining" means the process of producing, extracting, leaching, evaporating, or
2985     otherwise removing a mineral from a mine.
2986          (25) (a) "Mobile flight equipment" means tangible personal property that is owned or
2987     operated by an air charter service, air contract service, or airline and:
2988          (i) is capable of flight or is attached to an aircraft that is capable of flight; or
2989          (ii) is contained in an aircraft that is capable of flight if the tangible personal property
2990     is intended to be used:
2991          (A) during multiple flights;
2992          (B) during a takeoff, flight, or landing; and
2993          (C) as a service provided by an air charter service, air contract service, or airline.
2994          (b) (i) "Mobile flight equipment" does not include a spare part other than a spare
2995     engine that is rotated at regular intervals with an engine that is attached to the aircraft.
2996          (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
2997     commission may make rules defining the term "regular intervals."
2998          (26) "Nonmetalliferous minerals" includes, but is not limited to, oil, gas, coal, salts,
2999     sand, rock, gravel, and all carboniferous materials.
3000          (27) "Part-year residential property" means property that is not residential property on
3001     January 1 of a calendar year but becomes residential property after January 1 of the calendar
3002     year.
3003          (28) "Personal property" includes:

3004          (a) every class of property as defined in Subsection (29) that is the subject of
3005     ownership and is not real estate or an improvement;
3006          (b) any pipe laid in or affixed to land whether or not the ownership of the pipe is
3007     separate from the ownership of the underlying land, even if the pipe meets the definition of an
3008     improvement;
3009          (c) bridges and ferries;
3010          (d) livestock; and
3011          (e) outdoor advertising structures as defined in Section 72-7-502.
3012          (29) (a) "Property" means property that is subject to assessment and taxation according
3013     to its value.
3014          (b) "Property" does not include intangible property as defined in this section.
3015          (30) (a) "Public utility" means:
3016          (i) the operating property of a railroad, gas corporation, oil or gas transportation or
3017     pipeline company, coal slurry pipeline company, electrical corporation, sewerage corporation,
3018     or heat corporation where the company performs the service for, or delivers the commodity to,
3019     the public generally or companies serving the public generally, or in the case of a gas
3020     corporation or an electrical corporation, where the gas or electricity is sold or furnished to any
3021     member or consumers within the state for domestic, commercial, or industrial use; and
3022          (ii) the operating property of any entity or person defined under Section 54-2-1 except
3023     water corporations.
3024          (b) "Public utility" does not include the operating property of a telecommunications
3025     service provider.
3026          (31) (a) Subject to Subsection (31)(b), "qualifying exempt primary residential rental
3027     personal property" means household furnishings, furniture, and equipment that:
3028          (i) are used exclusively within a dwelling unit that is the primary residence of a tenant;
3029          (ii) are owned by the owner of the dwelling unit that is the primary residence of a
3030     tenant; and
3031          (iii) after applying the residential exemption described in Section 59-2-103, are exempt
3032     from taxation under this chapter in accordance with Subsection 59-2-1115(2).
3033          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
3034     commission may by rule define the term "dwelling unit" for purposes of this Subsection (31)

3035     and Subsection (34).
3036          (32) "Real estate" or "real property" includes:
3037          (a) the possession of, claim to, ownership of, or right to the possession of land;
3038          (b) all mines, minerals, and quarries in and under the land, all timber belonging to
3039     individuals or corporations growing or being on the lands of this state or the United States, and
3040     all rights and privileges appertaining to these; and
3041          (c) improvements.
3042          (33) (a) "Relationship with an owner of the property's land surface rights" means a
3043     relationship described in Subsection 267(b), Internal Revenue Code, except that the term 25%
3044     shall be substituted for the term 50% in Subsection 267(b), Internal Revenue Code.
3045          (b) For purposes of determining if a relationship described in Subsection 267(b),
3046     Internal Revenue Code, exists, the ownership of stock shall be determined using the ownership
3047     rules in Subsection 267(c), Internal Revenue Code.
3048          (34) (a) "Residential property," for purposes of the reductions and adjustments under
3049     this chapter, means any property used for residential purposes as a primary residence.
3050          (b) "Residential property" includes:
3051          (i) except as provided in Subsection (34)(b)(ii), includes household furnishings,
3052     furniture, and equipment if the household furnishings, furniture, and equipment are:
3053          (A) used exclusively within a dwelling unit that is the primary residence of a tenant;
3054     and
3055          (B) owned by the owner of the dwelling unit that is the primary residence of a tenant;
3056     and
3057          (ii) if the county assessor determines that the property will be used for residential
3058     purposes as a primary residence:
3059          (A) property under construction; or
3060          (B) unoccupied property.
3061          (c) "Residential property" does not include property used for transient residential use.
3062          (d) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
3063     commission may by rule define the term "dwelling unit" for purposes of Subsection (31) and
3064     this Subsection (34).
3065          (35) "Split estate mineral rights owner" means a person that:

3066          (a) has a legal right to extract a mineral from property;
3067          (b) does not hold more than a 25% interest in:
3068          (i) the land surface rights of the property where the wellhead is located; or
3069          (ii) an entity with an ownership interest in the land surface rights of the property where
3070     the wellhead is located;
3071          (c) is not an entity in which the owner of the land surface rights of the property where
3072     the wellhead is located holds more than a 25% interest; and
3073          (d) does not have a relationship with an owner of the land surface rights of the property
3074     where the wellhead is located.
3075          (36) (a) "State-assessed commercial vehicle" means:
3076          (i) any commercial vehicle, trailer, or semitrailer that operates interstate or intrastate to
3077     transport passengers, freight, merchandise, or other property for hire; or
3078          (ii) any commercial vehicle, trailer, or semitrailer that operates interstate and transports
3079     the vehicle owner's goods or property in furtherance of the owner's commercial enterprise.
3080          (b) "State-assessed commercial vehicle" does not include vehicles used for hire that are
3081     specified in Subsection (10)(c) as county-assessed commercial vehicles.
3082          (37) "Subdivided lot" means a lot, parcel, or other division of land, that is a division of
3083     a base parcel.
3084          (38) "Tax area" means a geographic area created by the overlapping boundaries of one
3085     or more taxing entities.
3086          (39) "Taxable value" means fair market value less any applicable reduction allowed for
3087     residential property under Section 59-2-103.
3088          (40) "Taxing entity" means any county, city, town, school district, special taxing
3089     district, special district under Title 17B, Limited Purpose Local Government Entities - Special
3090     Districts, or other political subdivision of the state with the authority to levy a tax on property.
3091          (41) (a) "Tax roll" means a permanent record of the taxes charged on property, as
3092     extended on the assessment roll, and may be maintained on the same record or records as the
3093     assessment roll or may be maintained on a separate record properly indexed to the assessment
3094     roll.
3095          (b) "Tax roll" includes tax books, tax lists, and other similar materials.
3096          (42) "Telecommunications service provider" means the same as that term is defined in

3097     Section 59-12-102.
3098          Section 41. Section 59-7-614 is amended to read:
3099          59-7-614. Renewable energy systems tax credits -- Definitions -- Certification --
3100     Rulemaking authority.
3101          (1) As used in this section:
3102          (a) (i) "Active solar system" means a system of equipment that is capable of:
3103          (A) collecting and converting incident solar radiation into thermal, mechanical, or
3104     electrical energy; and
3105          (B) transferring a form of energy described in Subsection (1)(a)(i)(A) by a separate
3106     apparatus to storage or to the point of use.
3107          (ii) "Active solar system" includes water heating, space heating or cooling, and
3108     electrical or mechanical energy generation.
3109          (b) "Biomass system" means a system of apparatus and equipment for use in:
3110          (i) converting material into biomass energy, as defined in Section 59-12-102; and
3111          (ii) transporting the biomass energy by separate apparatus to the point of use or storage.
3112          (c) "Clean energy source" means the same as that term is defined in Section 54-17-601.
3113          [(c)] (d) "Commercial energy system" means a system that is:
3114          (i) (A) an active solar system;
3115          (B) a biomass system;
3116          (C) a direct use geothermal system;
3117          (D) a geothermal electricity system;
3118          (E) a geothermal heat pump system;
3119          (F) a hydroenergy system;
3120          (G) a passive solar system; or
3121          (H) a wind system;
3122          (ii) located in the state; and
3123          (iii) used:
3124          (A) to supply energy to a commercial unit; or
3125          (B) as a commercial enterprise.
3126          [(d)] (e) "Commercial enterprise" means an entity, the purpose of which is to produce:
3127          (i) electrical, mechanical, or thermal energy for sale from a commercial energy system;

3128     or
3129          (ii) hydrogen for sale from a hydrogen production system.
3130          [(e)] (f) (i) "Commercial unit" means a building or structure that an entity uses to
3131     transact business.
3132          (ii) Notwithstanding Subsection [(1)(e)(i)] (1)(f)(i):
3133          (A) with respect to an active solar system used for agricultural water pumping or a
3134     wind system, each individual energy generating device is considered to be a commercial unit;
3135     or
3136          (B) if an energy system is the building or structure that an entity uses to transact
3137     business, a commercial unit is the complete energy system itself.
3138          [(f)] (g) "Direct use geothermal system" means a system of apparatus and equipment
3139     that enables the direct use of geothermal energy to meet energy needs, including heating a
3140     building, an industrial process, and aquaculture.
3141          [(g)] (h) "Geothermal electricity" means energy that is:
3142          (i) contained in heat that continuously flows outward from the earth; and
3143          (ii) used as a sole source of energy to produce electricity.
3144          [(h)] (i) "Geothermal energy" means energy generated by heat that is contained in the
3145     earth.
3146          [(i)] (j) "Geothermal heat pump system" means a system of apparatus and equipment
3147     that:
3148          (i) enables the use of thermal properties contained in the earth at temperatures well
3149     below 100 degrees Fahrenheit; and
3150          (ii) helps meet heating and cooling needs of a structure.
3151          [(j)] (k) "Hydroenergy system" means a system of apparatus and equipment that is
3152     capable of:
3153          (i) intercepting and converting kinetic water energy into electrical or mechanical
3154     energy; and
3155          (ii) transferring this form of energy by separate apparatus to the point of use or storage.
3156          [(k)] (l) "Hydrogen production system" means a system of apparatus and equipment,
3157     located in this state, that uses:
3158          (i) electricity from a renewable energy source to create hydrogen gas from water,

3159     regardless of whether the renewable energy source is at a separate facility or the same facility
3160     as the system of apparatus and equipment; or
3161          (ii) uses renewable natural gas to produce hydrogen gas.
3162          [(l)] (m) "Office" means the Office of Energy Development created in Section
3163     79-6-401.
3164          [(m)] (n) (i) "Passive solar system" means a direct thermal system that utilizes the
3165     structure of a building and the structure's operable components to provide for collection,
3166     storage, and distribution of heating or cooling during the appropriate times of the year by
3167     utilizing the climate resources available at the site.
3168          (ii) "Passive solar system" includes those portions and components of a building that
3169     are expressly designed and required for the collection, storage, and distribution of solar energy.
3170          [(n)] (o) "Photovoltaic system" means an active solar system that generates electricity
3171     from sunlight.
3172          [(o)] (p) (i) "Principal recovery portion" means the portion of a lease payment that
3173     constitutes the cost a person incurs in acquiring a commercial energy system.
3174          (ii) "Principal recovery portion" does not include:
3175          (A) an interest charge; or
3176          (B) a maintenance expense.
3177          [(p) "Renewable energy source" means the same as that term is defined in Section
3178     54-17-601.]
3179          (q) "Residential energy system" means the following used to supply energy to or for a
3180     residential unit:
3181          (i) an active solar system;
3182          (ii) a biomass system;
3183          (iii) a direct use geothermal system;
3184          (iv) a geothermal heat pump system;
3185          (v) a hydroenergy system;
3186          (vi) a passive solar system; or
3187          (vii) a wind system.
3188          (r) (i) "Residential unit" means a house, condominium, apartment, or similar dwelling
3189     unit that:

3190          (A) is located in the state; and
3191          (B) serves as a dwelling for a person, group of persons, or a family.
3192          (ii) "Residential unit" does not include property subject to a fee under:
3193          (A) Section 59-2-405;
3194          (B) Section 59-2-405.1;
3195          (C) Section 59-2-405.2;
3196          (D) Section 59-2-405.3; or
3197          (E) Section 72-10-110.5.
3198          (s) "Wind system" means a system of apparatus and equipment that is capable of:
3199          (i) intercepting and converting wind energy into mechanical or electrical energy; and
3200          (ii) transferring these forms of energy by a separate apparatus to the point of use, sale,
3201     or storage.
3202          (2) A taxpayer may claim an energy system tax credit as provided in this section
3203     against a tax due under this chapter for a taxable year.
3204          (3) (a) Subject to the other provisions of this Subsection (3), a taxpayer may claim a
3205     nonrefundable tax credit under this Subsection (3) with respect to a residential unit the taxpayer
3206     owns or uses if:
3207          (i) the taxpayer:
3208          (A) purchases and completes a residential energy system to supply all or part of the
3209     energy required for the residential unit; or
3210          (B) participates in the financing of a residential energy system to supply all or part of
3211     the energy required for the residential unit; and
3212          (ii) the taxpayer obtains a written certification from the office in accordance with
3213     Subsection (8).
3214          (b) (i) Subject to Subsections (3)(b)(ii) through (iv) and, as applicable, Subsection
3215     (3)(c) or (d), the tax credit is equal to 25% of the reasonable costs of each residential energy
3216     system installed with respect to each residential unit the taxpayer owns or uses.
3217          (ii) A tax credit under this Subsection (3) may include installation costs.
3218          (iii) A taxpayer may claim a tax credit under this Subsection (3) for the taxable year in
3219     which the residential energy system is completed and placed in service.
3220          (iv) If the amount of a tax credit under this Subsection (3) exceeds a taxpayer's tax

3221     liability under this chapter for a taxable year, the taxpayer may carry forward the amount of the
3222     tax credit exceeding the liability for a period that does not exceed the next four taxable years.
3223          (c) The total amount of tax credit a taxpayer may claim under this Subsection (3) for a
3224     residential energy system, other than a photovoltaic system, may not exceed $2,000 per
3225     residential unit.
3226          (d) The total amount of tax credit a taxpayer may claim under this Subsection (3) for a
3227     photovoltaic system may not exceed:
3228          (i) for a system installed on or after January 1, 2018, but on or before December 31,
3229     2020, $1,600;
3230          (ii) for a system installed on or after January 1, 2021, but on or before December 31,
3231     2021, $1,200;
3232          (iii) for a system installed on or after January 1, 2022, but on or before December 31,
3233     2022, $800;
3234          (iv) for a system installed on or after January 1, 2023, but on or before December 31,
3235     2023, $400; and
3236          (v) for a system installed on or after January 1, 2024, $0.
3237          (e) If a taxpayer sells a residential unit to another person before the taxpayer claims the
3238     tax credit under this Subsection (3):
3239          (i) the taxpayer may assign the tax credit to the other person; and
3240          (ii) (A) if the other person files a return under this chapter, the other person may claim
3241     the tax credit under this section as if the other person had met the requirements of this section
3242     to claim the tax credit; or
3243          (B) if the other person files a return under Chapter 10, Individual Income Tax Act, the
3244     other person may claim the tax credit under Section 59-10-1014 as if the other person had met
3245     the requirements of Section 59-10-1014 to claim the tax credit.
3246          (4) (a) Subject to the other provisions of this Subsection (4), a taxpayer may claim a
3247     refundable tax credit under this Subsection (4) with respect to a commercial energy system if:
3248          (i) the commercial energy system does not use:
3249          (A) wind, geothermal electricity, solar, or biomass equipment capable of producing a
3250     total of 660 or more kilowatts of electricity; or
3251          (B) solar equipment capable of producing 2,000 or more kilowatts of electricity;

3252          (ii) the taxpayer purchases or participates in the financing of the commercial energy
3253     system;
3254          (iii) (A) the commercial energy system supplies all or part of the energy required by
3255     commercial units owned or used by the taxpayer; or
3256          (B) the taxpayer sells all or part of the energy produced by the commercial energy
3257     system as a commercial enterprise;
3258          (iv) the taxpayer has not claimed and will not claim a tax credit under Subsection (7)
3259     for hydrogen production using electricity for which the taxpayer claims a tax credit under this
3260     Subsection (4); and
3261          (v) the taxpayer obtains a written certification from the office in accordance with
3262     Subsection (8).
3263          (b) (i) Subject to Subsections (4)(b)(ii) through (iv), the tax credit is equal to 10% of
3264     the reasonable costs of the commercial energy system.
3265          (ii) A tax credit under this Subsection (4) may include installation costs.
3266          (iii) A taxpayer is eligible to claim a tax credit under this Subsection (4) for the taxable
3267     year in which the commercial energy system is completed and placed in service.
3268          (iv) The total amount of tax credit a taxpayer may claim under this Subsection (4) may
3269     not exceed $50,000 per commercial unit.
3270          (c) (i) Subject to Subsections (4)(c)(ii) and (iii), a taxpayer that is a lessee of a
3271     commercial energy system installed on a commercial unit may claim a tax credit under this
3272     Subsection (4) if the taxpayer confirms that the lessor irrevocably elects not to claim the tax
3273     credit.
3274          (ii) A taxpayer described in Subsection (4)(c)(i) may claim as a tax credit under this
3275     Subsection (4) only the principal recovery portion of the lease payments.
3276          (iii) A taxpayer described in Subsection (4)(c)(i) may claim a tax credit under this
3277     Subsection (4) for a period that does not exceed seven taxable years after the day on which the
3278     lease begins, as stated in the lease agreement.
3279          (5) (a) Subject to the other provisions of this Subsection (5), a taxpayer may claim a
3280     refundable tax credit under this Subsection (5) with respect to a commercial energy system if:
3281          (i) the commercial energy system uses wind, geothermal electricity, or biomass
3282     equipment capable of producing a total of 660 or more kilowatts of electricity;

3283          (ii) (A) the commercial energy system supplies all or part of the energy required by
3284     commercial units owned or used by the taxpayer; or
3285          (B) the taxpayer sells all or part of the energy produced by the commercial energy
3286     system as a commercial enterprise;
3287          (iii) the taxpayer has not claimed and will not claim a tax credit under Subsection (7)
3288     for hydrogen production using electricity for which the taxpayer claims a tax credit under this
3289     Subsection (5); and
3290          (iv) the taxpayer obtains a written certification from the office in accordance with
3291     Subsection (8).
3292          (b) (i) Subject to Subsection (5)(b)(ii), a tax credit under this Subsection (5) is equal to
3293     the product of:
3294          (A) 0.35 cents; and
3295          (B) the kilowatt hours of electricity produced and used or sold during the taxable year.
3296          (ii) A taxpayer is eligible to claim a tax credit under this Subsection (5) for production
3297     occurring during a period of 48 months beginning with the month in which the commercial
3298     energy system is placed in commercial service.
3299          (c) A taxpayer that is a lessee of a commercial energy system installed on a commercial
3300     unit may claim a tax credit under this Subsection (5) if the taxpayer confirms that the lessor
3301     irrevocably elects not to claim the tax credit.
3302          (6) (a) Subject to the other provisions of this Subsection (6), a taxpayer may claim a
3303     refundable tax credit as provided in this Subsection (6) if:
3304          (i) the taxpayer owns a commercial energy system that uses solar equipment capable of
3305     producing a total of 660 or more kilowatts of electricity;
3306          (ii) (A) the commercial energy system supplies all or part of the energy required by
3307     commercial units owned or used by the taxpayer; or
3308          (B) the taxpayer sells all or part of the energy produced by the commercial energy
3309     system as a commercial enterprise;
3310          (iii) the taxpayer does not claim a tax credit under Subsection (4) and has not claimed
3311     and will not claim a tax credit under Subsection (7) for hydrogen production using electricity
3312     for which a taxpayer claims a tax credit under this Subsection (6); and
3313          (iv) the taxpayer obtains a written certification from the office in accordance with

3314     Subsection (8).
3315          (b) (i) Subject to Subsection (6)(b)(ii), a tax credit under this Subsection (6) is equal to
3316     the product of:
3317          (A) 0.35 cents; and
3318          (B) the kilowatt hours of electricity produced and used or sold during the taxable year.
3319          (ii) A taxpayer is eligible to claim a tax credit under this Subsection (6) for production
3320     occurring during a period of 48 months beginning with the month in which the commercial
3321     energy system is placed in commercial service.
3322          (c) A taxpayer that is a lessee of a commercial energy system installed on a commercial
3323     unit may claim a tax credit under this Subsection (6) if the taxpayer confirms that the lessor
3324     irrevocably elects not to claim the tax credit.
3325          (7) (a) A taxpayer may claim a refundable tax credit as provided in this Subsection (7)
3326     if:
3327          (i) the taxpayer owns a hydrogen production system;
3328          (ii) the hydrogen production system is completed and placed in service on or after
3329     January 1, 2022;
3330          (iii) the taxpayer sells as a commercial enterprise, or supplies for the taxpayer's own
3331     use in commercial units, the hydrogen produced from the hydrogen production system;
3332          (iv) the taxpayer has not claimed and will not claim a tax credit under Subsection (4),
3333     (5), or (6) or Section 59-7-626 for electricity or hydrogen used to meet the requirements of this
3334     Subsection (7); and
3335          (v) the taxpayer obtains a written certification from the office in accordance with
3336     Subsection (8).
3337          (b) (i) Subject to Subsections (7)(b)(ii) and (iii), a tax credit under this Subsection (7)
3338     is equal to the product of:
3339          (A) $0.12; and
3340          (B) the number of kilograms of hydrogen produced during the taxable year.
3341          (ii) A taxpayer may not receive a tax credit under this Subsection (7) for more than
3342     5,600 metric tons of hydrogen per taxable year.
3343          (iii) A taxpayer is eligible to claim a tax credit under this Subsection (7) for production
3344     occurring during a period of 48 months beginning with the month in which the hydrogen

3345     production system is placed in commercial service.
3346          (8) (a) Before a taxpayer may claim a tax credit under this section, the taxpayer shall
3347     obtain a written certification from the office.
3348          (b) The office shall issue a taxpayer a written certification if the office determines that:
3349          (i) the taxpayer meets the requirements of this section to receive a tax credit; and
3350          (ii) the residential energy system, the commercial energy system, or the hydrogen
3351     production system with respect to which the taxpayer seeks to claim a tax credit:
3352          (A) has been completely installed;
3353          (B) is a viable system for saving or producing energy from renewable resources; and
3354          (C) is safe, reliable, efficient, and technically feasible to ensure that the residential
3355     energy system, the commercial energy system, or the hydrogen production system uses the
3356     state's renewable and nonrenewable energy resources in an appropriate and economic manner.
3357          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
3358     office may make rules:
3359          (i) for determining whether a residential energy system, a commercial energy system,
3360     or a hydrogen production system meets the requirements of Subsection (8)(b)(ii); and
3361          (ii) for purposes of a tax credit under Subsection (3) or (4), establishing the reasonable
3362     costs of a residential energy system or a commercial energy system, as an amount per unit of
3363     energy production.
3364          (d) A taxpayer that obtains a written certification from the office shall retain the
3365     certification for the same time period a person is required to keep books and records under
3366     Section 59-1-1406.
3367          (e) The office shall submit to the commission an electronic list that includes:
3368          (i) the name and identifying information of each taxpayer to which the office issues a
3369     written certification; and
3370          (ii) for each taxpayer:
3371          (A) the amount of the tax credit listed on the written certification; and
3372          (B) the date the [renewable] clean energy system was installed.
3373          (9) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
3374     commission may make rules to address the certification of a tax credit under this section.
3375          (10) A tax credit under this section is in addition to any tax credits provided under the

3376     laws or rules and regulations of the United States.
3377          (11) A taxpayer may not claim or carry forward a tax credit described in this section in
3378     a taxable year during which the taxpayer claims or carries forward a tax credit under Section
3379     59-7-614.7.
3380          Section 42. Section 59-10-1014 is amended to read:
3381          59-10-1014. Nonrefundable clean energy systems tax credits -- Definitions --
3382     Certification -- Rulemaking authority.
3383          (1) As used in this section:
3384          (a) (i) "Active solar system" means a system of equipment that is capable of:
3385          (A) collecting and converting incident solar radiation into thermal, mechanical, or
3386     electrical energy; and
3387          (B) transferring a form of energy described in Subsection (1)(a)(i)(A) by a separate
3388     apparatus to storage or to the point of use.
3389          (ii) "Active solar system" includes water heating, space heating or cooling, and
3390     electrical or mechanical energy generation.
3391          (b) "Biomass system" means a system of apparatus and equipment for use in:
3392          (i) converting material into biomass energy, as defined in Section 59-12-102; and
3393          (ii) transporting the biomass energy by separate apparatus to the point of use or storage.
3394          (c) "Direct use geothermal system" means a system of apparatus and equipment that
3395     enables the direct use of geothermal energy to meet energy needs, including heating a building,
3396     an industrial process, and aquaculture.
3397          (d) "Geothermal electricity" means energy that is:
3398          (i) contained in heat that continuously flows outward from the earth; and
3399          (ii) used as a sole source of energy to produce electricity.
3400          (e) "Geothermal energy" means energy generated by heat that is contained in the earth.
3401          (f) "Geothermal heat pump system" means a system of apparatus and equipment that:
3402          (i) enables the use of thermal properties contained in the earth at temperatures well
3403     below 100 degrees Fahrenheit; and
3404          (ii) helps meet heating and cooling needs of a structure.
3405          (g) "Hydroenergy system" means a system of apparatus and equipment that is capable
3406     of:

3407          (i) intercepting and converting kinetic water energy into electrical or mechanical
3408     energy; and
3409          (ii) transferring this form of energy by separate apparatus to the point of use or storage.
3410          (h) "Office" means the Office of Energy Development created in Section 79-6-401.
3411          (i) (i) "Passive solar system" means a direct thermal system that utilizes the structure of
3412     a building and its operable components to provide for collection, storage, and distribution of
3413     heating or cooling during the appropriate times of the year by utilizing the climate resources
3414     available at the site.
3415          (ii) "Passive solar system" includes those portions and components of a building that
3416     are expressly designed and required for the collection, storage, and distribution of solar energy.
3417          (j) "Photovoltaic system" means an active solar system that generates electricity from
3418     sunlight.
3419          (k) (i) "Principal recovery portion" means the portion of a lease payment that
3420     constitutes the cost a person incurs in acquiring a residential energy system.
3421          (ii) "Principal recovery portion" does not include:
3422          (A) an interest charge; or
3423          (B) a maintenance expense.
3424          (l) "Residential energy system" means the following used to supply energy to or for a
3425     residential unit:
3426          (i) an active solar system;
3427          (ii) a biomass system;
3428          (iii) a direct use geothermal system;
3429          (iv) a geothermal heat pump system;
3430          (v) a hydroenergy system;
3431          (vi) a passive solar system; or
3432          (vii) a wind system.
3433          (m) (i) "Residential unit" means a house, condominium, apartment, or similar dwelling
3434     unit that:
3435          (A) is located in the state; and
3436          (B) serves as a dwelling for a person, group of persons, or a family.
3437          (ii) "Residential unit" does not include property subject to a fee under:

3438          (A) Section 59-2-405;
3439          (B) Section 59-2-405.1;
3440          (C) Section 59-2-405.2;
3441          (D) Section 59-2-405.3; or
3442          (E) Section 72-10-110.5.
3443          (n) "Wind system" means a system of apparatus and equipment that is capable of:
3444          (i) intercepting and converting wind energy into mechanical or electrical energy; and
3445          (ii) transferring these forms of energy by a separate apparatus to the point of use or
3446     storage.
3447          (2) A claimant, estate, or trust may claim an energy system tax credit as provided in
3448     this section against a tax due under this chapter for a taxable year.
3449          (3) For a taxable year beginning on or after January 1, 2007, a claimant, estate, or trust
3450     may claim a nonrefundable tax credit under this section with respect to a residential unit the
3451     claimant, estate, or trust owns or uses if:
3452          (a) the claimant, estate, or trust:
3453          (i) purchases and completes a residential energy system to supply all or part of the
3454     energy required for the residential unit; or
3455          (ii) participates in the financing of a residential energy system to supply all or part of
3456     the energy required for the residential unit;
3457          (b) the residential energy system is installed on or after January 1, 2007; and
3458          (c) the claimant, estate, or trust obtains a written certification from the office in
3459     accordance with Subsection (5).
3460          (4) (a) For a residential energy system, other than a photovoltaic system, the tax credit
3461     described in this section is equal to the lesser of:
3462          (i) 25% of the reasonable costs, including installation costs, of each residential energy
3463     system installed with respect to each residential unit the claimant, estate, or trust owns or uses;
3464     and
3465          (ii) $2,000.
3466          (b) Subject to Subsection (5)(d), for a residential energy system that is a photovoltaic
3467     system, the tax credit described in this section is equal to the lesser of:
3468          (i) 25% of the reasonable costs, including installation costs, of each system installed

3469     with respect to each residential unit the claimant, estate, or trust owns or uses; or
3470          (ii) (A) for a system installed on or after January 1, 2007, but on or before December
3471     31, 2017, $2,000;
3472          (B) for a system installed on or after January 1, 2018, but on or before December 31,
3473     2020, $1,600;
3474          (C) for a system installed on or after January 1, 2021, but on or before December 31,
3475     2021, $1,200;
3476          (D) for a system installed on or after January 1, 2022, but on or before December 31,
3477     2022, $800;
3478          (E) for a system installed on or after January 1, 2023, but on or before December 31,
3479     2023, $400; and
3480          (F) for a system installed on or after January 1, 2024, $0.
3481          (c) (i) The office shall determine the amount of the tax credit that a claimant, estate, or
3482     trust may claim and list that amount on the written certification that the office issues under
3483     Subsection (5).
3484          (ii) The claimant, estate, or trust may claim the tax credit in the amount listed on the
3485     written certification that the office issues under Subsection (5).
3486          (d) A claimant, estate, or trust may claim a tax credit under Subsection (3) for the
3487     taxable year in which the residential energy system is installed.
3488          (e) If the amount of a tax credit listed on the written certification exceeds a claimant's,
3489     estate's, or trust's tax liability under this chapter for a taxable year, the claimant, estate, or trust
3490     may carry forward the amount of the tax credit exceeding the liability for a period that does not
3491     exceed the next four taxable years.
3492          (f) A claimant, estate, or trust may claim a tax credit with respect to additional
3493     residential energy systems or parts of residential energy systems for a subsequent taxable year
3494     if the total amount of tax credit the claimant, estate, or trust claims does not exceed $2,000 per
3495     residential unit.
3496          (g) (i) Subject to Subsections (4)(g)(ii) and (iii), a claimant, estate, or trust that leases a
3497     residential energy system installed on a residential unit may claim a tax credit under Subsection
3498     (3) if the claimant, estate, or trust confirms that the lessor irrevocably elects not to claim the tax
3499     credit.

3500          (ii) A claimant, estate, or trust described in Subsection (4)(g)(i) that leases a residential
3501     energy system may claim as a tax credit under Subsection (3) only the principal recovery
3502     portion of the lease payments.
3503          (iii) A claimant, estate, or trust described in Subsection (4)(g)(i) that leases a
3504     residential energy system may claim a tax credit under Subsection (3) for a period that does not
3505     exceed seven taxable years after the date the lease begins, as stated in the lease agreement.
3506          (h) If a claimant, estate, or trust sells a residential unit to another person before the
3507     claimant, estate, or trust claims the tax credit under Subsection (3):
3508          (i) the claimant, estate, or trust may assign the tax credit to the other person; and
3509          (ii) (A) if the other person files a return under Chapter 7, Corporate Franchise and
3510     Income Taxes, the other person may claim the tax credit as if the other person had met the
3511     requirements of Section 59-7-614 to claim the tax credit; or
3512          (B) if the other person files a return under this chapter, the other person may claim the
3513     tax credit under this section as if the other person had met the requirements of this section to
3514     claim the tax credit.
3515          (5) (a) Before a claimant, estate, or trust may claim a tax credit under this section, the
3516     claimant, estate, or trust shall obtain a written certification from the office.
3517          (b) The office shall issue a claimant, estate, or trust a written certification if the office
3518     determines that:
3519          (i) the claimant, estate, or trust meets the requirements of this section to receive a tax
3520     credit; and
3521          (ii) the office determines that the residential energy system with respect to which the
3522     claimant, estate, or trust seeks to claim a tax credit:
3523          (A) has been completely installed;
3524          (B) is a viable system for saving or producing energy from [renewable] clean
3525     resources; and
3526          (C) is safe, reliable, efficient, and technically feasible to ensure that the residential
3527     energy system uses the state's renewable and nonrenewable energy resources in an appropriate
3528     and economic manner.
3529          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
3530     office may make rules:

3531          (i) for determining whether a residential energy system meets the requirements of
3532     Subsection (5)(b)(ii); and
3533          (ii) for purposes of determining the amount of a tax credit that a claimant, estate, or
3534     trust may receive under Subsection (4), establishing the reasonable costs of a residential energy
3535     system, as an amount per unit of energy production.
3536          (d) A claimant, estate, or trust that obtains a written certification from the office shall
3537     retain the certification for the same time period a person is required to keep books and records
3538     under Section 59-1-1406.
3539          (e) The office shall submit to the commission an electronic list that includes:
3540          (i) the name and identifying information of each claimant, estate, or trust to which the
3541     office issues a written certification; and
3542          (ii) for each claimant, estate, or trust:
3543          (A) the amount of the tax credit listed on the written certification; and
3544          (B) the date the [renewable] clean energy system was installed.
3545          (6) A tax credit under this section is in addition to any tax credits provided under the
3546     laws or rules and regulations of the United States.
3547          (7) A purchaser of one or more solar units that claims a tax credit under Section
3548     59-10-1024 for the purchase of the one or more solar units may not claim a tax credit under this
3549     section for that purchase.
3550          Section 43. Section 63A-5b-702 is amended to read:
3551          63A-5b-702. Standards and requirements for state facilities -- Life-cycle cost
3552     effectiveness.
3553          (1) As used in this section:
3554          (a) "Clean energy system" means a system designed to use solar, wind, geothermal
3555     power, wood, hydropower, nuclear, or other clean energy source to heat, cool, or provide
3556     electricity to a building.
3557          (b) "Life cycle cost-effective" means the most prudent cost of owning, operating, and
3558     maintaining a facility, including the initial cost, energy costs, operation and maintenance costs,
3559     repair costs, and the costs of energy conservation and [renewable] clean energy systems.
3560          [(b) "Renewable energy system" means a system designed to use solar, wind,
3561     geothermal power, wood, or other replenishable energy source to heat, cool, or provide

3562     electricity to a building.]
3563          (2) The director shall, in accordance with Title 63G, Chapter 3, Utah Administrative
3564     Rulemaking Act, make rules:
3565          (a) that establish standards and requirements for determining whether a state facility
3566     project is life cycle cost-effective;
3567          (b) for the monitoring of an agency's operation and maintenance expenditures for a
3568     state-owned facility;
3569          (c) to establish standards and requirements for utility metering;
3570          (d) that create an operation and maintenance program for an agency's facilities;
3571          (e) that establish a methodology for determining reasonably anticipated inflationary
3572     costs for each operation and maintenance program described in Subsection (2)(d);
3573          (f) that require an agency to report the amount the agency receives and expends on
3574     operation and maintenance; and
3575          (g) that provide for determining the actual cost for operation and maintenance requests
3576     for a new facility.
3577          (3) The director shall:
3578          (a) ensure that state-owned facilities, except for facilities under the control of the State
3579     Capitol Preservation Board, are life cycle cost-effective;
3580          (b) conduct ongoing facilities audits of state-owned facilities; and
3581          (c) monitor an agency's operation and maintenance expenditures for state-owned
3582     facilities as provided in rules made under Subsection (2)(b).
3583          (4) (a) An agency shall comply with the rules made under Subsection (2) for new
3584     facility requests submitted to the Legislature for a session of the Legislature after the 2017
3585     General Session.
3586          (b) The Office of the Legislative Fiscal Analyst and the Governor's Office of Planning
3587     and Budget shall, for each agency with operation and maintenance expenses, ensure that each
3588     required budget for the agency is adjusted in accordance with the rules described in Subsection
3589     (2)(e).
3590          Section 44. Section 63H-1-201 is amended to read:
3591          63H-1-201. Creation of military installation development authority -- Status and
3592     powers of authority -- Limitation.

3593          (1) There is created a military installation development authority.
3594          (2) The authority is:
3595          (a) an independent, nonprofit, separate body corporate and politic, with perpetual
3596     succession and statewide jurisdiction, whose purpose is to facilitate the development of land
3597     within a project area or on military land associated with a project area;
3598          (b) a political subdivision of the state; and
3599          (c) a public corporation, as defined in Section 63E-1-102.
3600          (3) The authority may:
3601          (a) facilitate the development of land within one or more project areas, including the
3602     ongoing operation of facilities within a project area, or development of military land associated
3603     with a project area;
3604          (b) sue and be sued;
3605          (c) enter into contracts generally;
3606          (d) by itself or through a subsidiary, buy, obtain an option upon, or otherwise acquire
3607     any interest in real or personal property:
3608          (i) in a project area; or
3609          (ii) outside a project area for public infrastructure and improvements, if the board
3610     considers the purchase, option, or other interest acquisition to be necessary for fulfilling the
3611     authority's development objectives;
3612          (e) sell, convey, grant, dispose of by gift, or otherwise dispose of any interest in real or
3613     personal property;
3614          (f) enter into a lease agreement on real or personal property, either as lessee or lessor:
3615          (i) in a project area; or
3616          (ii) outside a project area, if the board considers the lease to be necessary for fulfilling
3617     the authority's development objectives;
3618          (g) provide for the development of land within a project area or military land
3619     associated with the project area under one or more contracts;
3620          (h) exercise powers and perform functions under a contract, as authorized in the
3621     contract;
3622          (i) exercise exclusive police power within a project area to the same extent as though
3623     the authority were a municipality, including the collection of regulatory fees;

3624          (j) receive the property tax allocation and other taxes and fees as provided in this
3625     chapter;
3626          (k) accept financial or other assistance from any public or private source for the
3627     authority's activities, powers, and duties, and expend any funds so received for any of the
3628     purposes of this chapter;
3629          (l) borrow money, contract with, or accept financial or other assistance from the federal
3630     government, a public entity, or any other source for any of the purposes of this chapter and
3631     comply with any conditions of the loan, contract, or assistance;
3632          (m) issue bonds to finance the undertaking of any development objectives of the
3633     authority, including bonds under Title 11, Chapter 17, Utah Industrial Facilities and
3634     Development Act, and bonds under Title 11, Chapter 42, Assessment Area Act;
3635          (n) hire employees, including contract employees;
3636          (o) transact other business and exercise all other powers provided for in this chapter;
3637          (p) enter into a development agreement with a developer of land within a project area;
3638          (q) enter into an agreement with a political subdivision of the state under which the
3639     political subdivision provides one or more municipal services within a project area;
3640          (r) enter into an agreement with a private contractor to provide one or more municipal
3641     services within a project area;
3642          (s) provide for or finance an energy efficiency upgrade, a [renewable] clean energy
3643     system, or electric vehicle charging infrastructure as defined in Section 11-42a-102, in
3644     accordance with Title 11, Chapter 42a, Commercial Property Assessed Clean Energy Act;
3645          (t) exercise powers and perform functions that the authority is authorized by statute to
3646     exercise or perform;
3647          (u) enter into an agreement with the federal government or an agency of the federal
3648     government under which the federal government or agency:
3649          (i) provides law enforcement services only to military land within a project area; and
3650          (ii) may enter into a mutual aid or other cooperative agreement with a law enforcement
3651     agency of the state or a political subdivision of the state;
3652          (v) by itself or through a subsidiary, act as a facilitator under Title 63N, Chapter 13,
3653     Part 3, Facilitating Public-private Partnerships Act, to provide expertise and knowledge to
3654     another governmental entity interested in public-private partnerships;

3655          (w) enter into an intergovernmental support agreement under Title 10, U.S.C. Sec.
3656     2679 with the military to provide support services to the military in accordance with the
3657     agreement;
3658          (x) act as a developer, or assist a developer chosen by the military, to develop military
3659     land as part of an enhanced use lease under Title 10, U.S.C. Sec. 2667; and
3660          (y) develop public infrastructure and improvements.
3661          (4) The authority may not itself provide law enforcement service or fire protection
3662     service within a project area but may enter into an agreement for one or both of those services,
3663     as provided in Subsection (3)(q).
3664          (5) The authority shall provide support to a subsidiary that enters into an agreement
3665     under Subsection (3)(v) that the authority determines necessary for the subsidiary to fulfill the
3666     requirements of the agreement.
3667          (6) Because providing procurement, utility, construction, and other services for use by
3668     a military installation, including providing public infrastructure and improvements for use or
3669     occupancy by the military, are core functions of the authority and are typically provided by a
3670     local government for the local government's own needs or use, these services provided by the
3671     authority for the military under this chapter are considered to be for the authority's own needs
3672     and use.
3673          (7) A public infrastructure district created by the authority under Title 17D, Chapter 4,
3674     Public Infrastructure District Act, is a subsidiary of the authority.
3675          Section 45. Section 63L-11-304 is amended to read:
3676          63L-11-304. Public lands transfer study and economic analysis -- Report.
3677          (1) As used in this section:
3678          (a) "Public lands" means the same as that term is defined in Section 63L-6-102.
3679          (b) "Transfer of public lands" means the transfer of public lands from federal
3680     ownership to state ownership.
3681          (2) The office shall, on an ongoing basis, report to the Federalism Commission
3682     regarding the ramifications and economic impacts of the transfer of public lands.
3683          (3) The office shall:
3684          (a) on an ongoing basis, discuss issues related to the transfer of public lands with:
3685          (i) the School and Institutional Trust Lands Administration;

3686          (ii) local governments;
3687          (iii) water managers;
3688          (iv) environmental advocates;
3689          (v) outdoor recreation advocates;
3690          (vi) nonconventional, [and] renewable, and clean energy producers;
3691          (vii) tourism representatives;
3692          (viii) wilderness advocates;
3693          (ix) ranchers and agriculture advocates;
3694          (x) oil, gas, and mining producers;
3695          (xi) fishing, hunting, and other wildlife interests;
3696          (xii) timber producers;
3697          (xiii) other interested parties; and
3698          (xiv) the Federalism Commission; and
3699          (b) develop ways to obtain input from citizens of the state regarding the transfer of
3700     public lands and the future care and use of public lands.
3701          Section 46. Section 79-3-202 is amended to read:
3702          79-3-202. Powers and duties of survey.
3703          (1) The survey shall:
3704          (a) assist and advise state and local agencies and state educational institutions on
3705     geologic, paleontologic, and mineralogic subjects;
3706          (b) collect and distribute reliable information regarding the mineral industry and
3707     mineral resources, topography, paleontology, and geology of the state;
3708          (c) survey the geology of the state, including mineral occurrences and the ores of
3709     metals, energy resources, industrial minerals and rocks, mineral-bearing waters, and surface
3710     and ground water resources, with special reference to their economic contents, values, uses,
3711     kind, and availability in order to facilitate their economic use;
3712          (d) investigate the kind, amount, and availability of mineral substances contained in
3713     lands owned and controlled by the state, to contribute to the most effective and beneficial
3714     administration of these lands for the state;
3715          (e) determine and investigate areas of geologic and topographic hazards that could
3716     affect the safety of, or cause economic loss to, the citizens of the state;

3717          (f) assist local and state agencies in their planning, zoning, and building regulation
3718     functions by publishing maps, delineating appropriately wide special earthquake risk areas,
3719     and, at the request of state agencies or other governmental agencies, review the siting of critical
3720     facilities;
3721          (g) cooperate with state agencies, political subdivisions of the state,
3722     quasi-governmental agencies, federal agencies, schools of higher education, and others in fields
3723     of mutual concern, which may include field investigations and preparation, publication, and
3724     distribution of reports and maps;
3725          (h) collect and preserve data pertaining to mineral resource exploration and
3726     development programs and construction activities, such as claim maps, location of drill holes,
3727     location of surface and underground workings, geologic plans and sections, drill logs, and
3728     assay and sample maps, including the maintenance of a sample library of cores and cuttings;
3729          (i) study and analyze other scientific, economic, or aesthetic problems as, in the
3730     judgment of the board, should be undertaken by the survey to serve the needs of the state and to
3731     support the development of natural resources and utilization of lands within the state;
3732          (j) prepare, publish, distribute, and sell maps, reports, and bulletins, embodying the
3733     work accomplished by the survey, directly or in collaboration with others, and collect and
3734     prepare exhibits of the geological and mineral resources of this state and interpret their
3735     significance;
3736          (k) collect, maintain, and preserve data and information in order to accomplish the
3737     purposes of this section and act as a repository for information concerning the geology of this
3738     state;
3739          (l) stimulate research, study, and activities in the field of paleontology;
3740          (m) mark, protect, and preserve critical paleontological sites;
3741          (n) collect, preserve, and administer critical paleontological specimens until the
3742     specimens are placed in a repository or curation facility;
3743          (o) administer critical paleontological site excavation records;
3744          (p) edit and publish critical paleontological records and reports;
3745          (q) by following the procedures and requirements of Title 63J, Chapter 5, Federal
3746     Funds Procedures Act, seek federal grants, loans, or participation in federal programs, and, in
3747     accordance with applicable federal program guidelines, administer federally funded state

3748     programs regarding:
3749          (i) renewable energy;
3750          (ii) energy efficiency; [and]
3751          (iii) energy conservation; and
3752          (iv) clean energy; and
3753          (r) collect the land use permits described in Sections 10-9a-521 and 17-27a-520.
3754          (2) (a) The survey may maintain as confidential, and not as a public record,
3755     information provided to the survey by any source.
3756          (b) The board shall adopt rules in order to determine whether to accept the information
3757     described in Subsection (2)(a) and to maintain the confidentiality of the accepted information.
3758          (c) The survey shall maintain information received from any source at the level of
3759     confidentiality assigned to it by the source.
3760          (3) Upon approval of the board, the survey shall undertake other activities consistent
3761     with Subsection (1).
3762          (4) (a) Subject to the authority granted to the department, the survey may enter into
3763     cooperative agreements with the entities specified in Subsection (1)(g), if approved by the
3764     board, and may accept or commit allocated or budgeted funds in connection with those
3765     agreements.
3766          (b) The survey may undertake joint projects with private entities if:
3767          (i) the action is approved by the board;
3768          (ii) the projects are not inconsistent with the state's objectives; and
3769          (iii) the results of the projects are available to the public.
3770          Section 47. Effective date.
3771          This bill takes effect on May 1, 2024.