1
2
3
4
5
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 59-10-1106, as last amended by Laws of Utah 2023, Chapter 482
62 63A-5b-702, as last amended by Laws of Utah 2021, Chapter 382
63 63H-1-201, as last amended by Laws of Utah 2022, Chapter 274
64 63L-11-304, as renumbered and amended by Laws of Utah 2021, Chapter 382
65 79-3-202, as last amended by Laws of Utah 2022, Chapter 216
66
67 Be it enacted by the Legislature of the state of Utah:
68 Section 1. Section 10-9a-401 is amended to read:
69 10-9a-401. General plan required -- Content.
70 (1) To accomplish the purposes of this chapter, a municipality shall prepare and adopt
71 a comprehensive, long-range general plan for:
72 (a) present and future needs of the municipality; and
73 (b) growth and development of all or any part of the land within the municipality.
74 (2) The general plan may provide for:
75 (a) health, general welfare, safety, energy conservation, transportation, prosperity, civic
76 activities, aesthetics, and recreational, educational, and cultural opportunities;
77 (b) the reduction of the waste of physical, financial, or human resources that result
78 from either excessive congestion or excessive scattering of population;
79 (c) the efficient and economical use, conservation, and production of the supply of:
80 (i) food and water; and
81 (ii) drainage, sanitary, and other facilities and resources;
82 (d) the use of energy conservation and solar and [
83 (e) the protection of urban development;
84 (f) if the municipality is a town, the protection or promotion of moderate income
85 housing;
86 (g) the protection and promotion of air quality;
87 (h) historic preservation;
88 (i) identifying future uses of land that are likely to require an expansion or significant
89 modification of services or facilities provided by an affected entity; and
90 (j) an official map.
91 (3) (a) The general plan of a specified municipality, as defined in Section 10-9a-408,
92 shall include a moderate income housing element that meets the requirements of Subsection
93 10-9a-403(2)(a)(iii).
94 (b) (i) This Subsection (3)(b) applies to a municipality that is not a specified
95 municipality as of January 1, 2023.
96 (ii) As of January 1, if a municipality described in Subsection (3)(b)(i) changes from
97 one class to another or grows in population to qualify as a specified municipality as defined in
98 Section 10-9a-408, the municipality shall amend the municipality's general plan to comply with
99 Subsection (3)(a) on or before August 1 of the first calendar year beginning on January 1 in
100 which the municipality qualifies as a specified municipality.
101 (4) Subject to Subsection 10-9a-403(2), the municipality may determine the
102 comprehensiveness, extent, and format of the general plan.
103 (5) Except for a city of the fifth class or a town, on or before December 31, 2025, a
104 municipality that has a general plan that does not include a water use and preservation element
105 that complies with Section 10-9a-403 shall amend the municipality's general plan to comply
106 with Section 10-9a-403.
107 Section 2. Section 10-19-102 is amended to read:
108 10-19-102. Definitions.
109 As used in this chapter:
110 (1) "Adjusted retail electric sales" means the total kilowatt-hours of retail electric sales
111 of a municipal electric utility to customers in this state in a calendar year, reduced by:
112 (a) the amount of those kilowatt-hours attributable to electricity generated or purchased
113 in that calendar year from qualifying zero carbon emissions generation and qualifying carbon
114 sequestration generation;
115 (b) the amount of those kilowatt-hours attributable to electricity generated or purchased
116 in that calendar year from generation located within the geographic boundary of the Western
117 Electricity Coordinating Council that derives its energy from one or more of the following but
118 that does not satisfy the definition of a [
119 not been used to satisfy Subsection 10-19-201(1):
120 (i) wind energy;
121 (ii) solar photovoltaic and solar thermal energy;
122 (iii) wave, tidal, and ocean thermal energy;
123 (iv) except for combustion of wood that has been treated with chemical preservatives
124 such as creosote, pentachlorophenol or chromated copper arsenate, biomass and biomass
125 byproducts, including:
126 (A) organic waste;
127 (B) forest or rangeland woody debris from harvesting or thinning conducted to improve
128 forest or rangeland ecological health and to reduce wildfire risk;
129 (C) agricultural residues;
130 (D) dedicated energy crops; and
131 (E) landfill gas or biogas produced from organic matter, wastewater, anaerobic
132 digesters, or municipal solid waste;
133 (v) geothermal energy;
134 (vi) hydro-electric energy; or
135 (vii) waste gas and waste heat capture or recovery; and
136 (c) the number of kilowatt-hours attributable to reductions in retail sales in that
137 calendar year from activities or programs promoting electric energy efficiency or conservation
138 or more efficient management of electric energy load.
139 (2) "Amount of kilowatt-hours attributable to electricity generated or purchased in that
140 calendar year from qualifying carbon sequestration generation," for qualifying carbon
141 sequestration generation, means the kilowatt-hours supplied by a facility during the calendar
142 year multiplied by the ratio of the amount of carbon dioxide captured from the facility and
143 sequestered to the sum of the amount of carbon dioxide captured from the facility and
144 sequestered plus the amount of carbon dioxide emitted from the facility during the same
145 calendar year.
146 (3) "Banked renewable energy certificate" means a bundled or unbundled renewable
147 energy certificate that is:
148 (a) not used in a calendar year to comply with this part or with a renewable energy
149 program in another state; and
150 (b) carried forward into a subsequent year.
151 (4) "Bundled renewable energy certificate" means a renewable energy certificate for
152 qualifying electricity that is acquired:
153 (a) by a municipal electric utility by a trade, purchase, or other transfer of electricity
154 that includes the renewable energy attributes of, or certificate that is issued for, the electricity;
155 or
156 (b) by a municipal electric utility by generating the electricity for which the renewable
157 energy certificate is issued.
158 (5) "Clean energy source" means:
159 (a) an electric generation facility or generation capability or upgrade that becomes
160 operational on or after January 1, 1995, that derives energy from one or more of the following:
161 (i) wind energy;
162 (ii) solar photovoltaic and solar thermal energy;
163 (iii) wave, tidal, and ocean thermal energy;
164 (iv) except for combustion of wood that has been treated with chemical preservatives
165 such as creosote, pentachlorophenol or chromated copper arsenate, biomass and biomass
166 byproducts, including:
167 (A) organic waste;
168 (B) forest or rangeland woody debris from harvesting or thinning conducted to improve
169 forest or rangeland ecological health and to reduce wildfire risk;
170 (C) agricultural residues;
171 (D) dedicated energy crops; and
172 (E) landfill gas or biogas produced from organic matter, wastewater, anaerobic
173 digesters, or municipal solid waste;
174 (v) geothermal energy located outside the state;
175 (vi) waste gas and waste heat capture or recovery, including methane gas from:
176 (A) an abandoned coal mine; or
177 (B) a coal degassing operation associated with a state-approved mine permit;
178 (vii) efficiency upgrades to a hydroelectric facility, without regard to the date upon
179 which the facility became operational, if the upgrades become operational on or after January
180 1, 1995;
181 (viii) a compressed air energy storage process, if:
182 (A) the process used to compress the air is a renewable energy source and the
183 associated renewable energy certificates are retired for the purpose of the compressed air
184 energy storage process; or
185 (B) equivalent renewable energy certificates are obtained and retired for the purpose of
186 the compressed air energy storage process;
187 (ix) municipal solid waste;
188 (x) nuclear fuel; or
189 (xi) carbon capture utilization and sequestration;
190 (b) any of the following:
191 (i) up to 50 average megawatts of electricity per year per municipal electric utility from
192 a certified low-impact hydroelectric facility, without regard to the date upon which the facility
193 becomes operational, if the facility is certified as a low-impact hydroelectric facility on or after
194 January 1, 1995, by a national certification organization;
195 (ii) geothermal energy if located within the state, without regard to the date upon which
196 the facility becomes operational; and
197 (iii) hydroelectric energy if located within the state, without regard to the date upon
198 which the facility becomes operational;
199 (c) hydrogen gas derived from any source of energy described in Subsection (5)(a) or
200 (b);
201 (d) if an electric generation facility employs multiple energy sources, that portion of the
202 electricity generated that is attributable to energy sources described in Subsections (5)(a)
203 through (c); and
204 (e) any of the following located in the state and owned by a user of energy:
205 (i) a demand side management measure, as defined by Subsection 54-7-12.8(1) with
206 the quantity of renewable energy certificates to which the user is entitled determined by the
207 equivalent energy saved by the measure;
208 (ii) a solar thermal system that reduces the consumption of fossil fuels, with the
209 quantity of renewable energy certificates to which the user is entitled determined by the
210 equivalent kilowatt-hours saved, except to the extent the commission determines otherwise
211 with respect to net-metered energy;
212 (iii) a solar photovoltaic system that reduces the consumption of fossil fuels with the
213 quantity of renewable energy certificates to which the user is entitled determined by the total
214 production of the system, except to the extent the commission determines otherwise with
215 respect to net-metered energy;
216 (iv) a hydroelectric or geothermal facility, with the quantity of renewable energy
217 certificates to which the user is entitled determined by the total production of the facility,
218 except to the extent the commission determines otherwise with respect to net-metered energy;
219 (v) a waste gas or waste heat capture or recovery system other than from a combined
220 cycle combustion turbine that does not use waste gas or waste heat, with the quantity of
221 renewable energy certificates to which the user is entitled determined by the total production of
222 the system, except to the extent the commission determines otherwise with respect to
223 net-metered energy; and
224 (vi) the station use of solar thermal energy, solar photovoltaic energy, hydroelectric
225 energy, geothermal energy, waste gas, or waste heat capture and recovery.
226 [
227 [
228 controls, or manages a facility that provides electric power for a retail customer, whether
229 domestic, commercial, industrial, or otherwise.
230 [
231 facility located within the geographic boundary of the Western Electricity Coordinating
232 Council that:
233 (a) becomes operational or is retrofitted on or after January 1, 2008; and
234 (b) reduces carbon dioxide emissions into the atmosphere through permanent
235 geological sequestration or through other verifiably permanent reductions in carbon dioxide
236 emissions through the use of technology.
237 [
238 from a renewable energy source if:
239 (a) (i) the [
240 the Western Electricity Coordinating Council; or
241 (ii) the qualifying electricity is delivered to the transmission system of a municipal
242 electric utility or a delivery point designated by the municipal electric utility for the purpose of
243 subsequent delivery to the municipal electric utility; and
244 (b) the [
245 transferred, or otherwise used to satisfy another state's renewable energy program.
246 [
247 (a) means a generation facility located within the geographic boundary of the Western
248 Electricity Coordinating Council that:
249 (i) becomes operational on or after January 1, 2008; and
250 (ii) does not produce carbon as a byproduct of the generation process;
251 (b) includes generation powered by nuclear fuel; and
252 (c) does not include [
253 established under Section 10-19-201.
254 [
255 with the requirements of Sections 10-19-202 and 54-17-603.
256 [
257 [
258
259
260 [
261 [
262 [
263 [
264
265
266 [
267 [
268
269 [
270 [
271 [
272
273 [
274 [
275
276 [
277 [
278 [
279
280
281 [
282 [
283
284
285 [
286
287 [
288 [
289 [
290
291
292
293 [
294
295 [
296
297 [
298
299 [
300
301
302 [
303 [
304
305
306 [
307
308
309
310 [
311
312
313
314 [
315
316
317 [
318
319
320
321
322 [
323
324 (12) "Unbundled renewable energy certificate" means a renewable energy certificate
325 associated with:
326 (a) qualifying electricity that is acquired by a municipal electric utility or other person
327 by trade, purchase, or other transfer without acquiring the electricity for which the certificate
328 was issued; or
329 (b) activities listed in Subsection [
330 Section 3. Section 10-19-201 is amended to read:
331 10-19-201. Target amount of qualifying electricity -- Renewable energy certificate
332 -- Cost-effectiveness.
333 (1) (a) To the extent that it is cost-effective to do so, beginning in 2025 the annual
334 retail electric sales in this state of each municipal electric utility shall consist of qualifying
335 electricity or renewable energy certificates in an amount equal to at least 20% of adjusted retail
336 electric sales.
337 (b) The amount under Subsection (1)(a) is computed based upon adjusted retail sales
338 for the calendar year commencing 36 months before the first day of the year for which the
339 target calculated under Subsection (1)(a) applies.
340 (c) Notwithstanding Subsections (1)(a) and (b) an increase in the annual target from
341 one year to the next is limited to the greater of:
342 (i) 17,500 megawatt-hours; or
343 (ii) 20% of the prior year's amount under Subsections (1)(a) and (b).
344 (2) Cost-effectiveness under Subsection (1) is determined using any criteria applicable
345 to the municipal electric utility's acquisition of a significant energy resource established by the
346 municipality's legislative body.
347 (3) This section does not require a municipal electric utility to:
348 (a) substitute qualifying electricity for electricity from a generation source owned or
349 contractually committed, or from a contractual commitment for a power purchase;
350 (b) enter into any additional electric sales commitment or any other arrangement for the
351 sale or other disposition of electricity that is not already, or would not be, entered into by the
352 municipal electric utility; or
353 (c) acquire qualifying electricity in excess of its adjusted retail electric sales.
354 (4) A municipal electrical corporation may combine the following to meet Subsection
355 (1):
356 (a) qualifying electricity from a [
357 municipal electric utility;
358 (b) qualifying electricity acquired by the municipal electric utility through trade, power
359 purchase, or other transfer; and
360 (c) a bundled or unbundled renewable energy certificate, including a banked renewable
361 energy certificate.
362 (5) To meet Subsection (1), a municipal electric utility may also count:
363 (a) qualifying electricity generated or acquired or renewable energy certificates
364 acquired for a program permitting the municipal electric utility's customers to voluntarily
365 contribute to a renewable energy source; and
366 (b) electricity allocated to this state that is produced by a hydroelectric facility
367 becoming operational after December 31, 2007, if the hydroelectric facility is located in any
368 state in which the municipal electric utility, or the interlocal entity with which the municipal
369 electric utility has a contract, provides electric service.
370 Section 4. Section 10-19-202 is amended to read:
371 10-19-202. Renewable energy certificate -- Use to satisfy other requirements.
372 (1) A municipal electric utility may buy, sell, trade, or otherwise transfer a renewable
373 energy certificate issued or recognized under Section 54-17-603.
374 (2) For the purpose of satisfying Subsection 10-19-201(1) and the issuance of a
375 renewable energy certificate under Section 54-17-603:
376 (a) a [
377 solar photovoltaic and solar thermal energy shall be credited for 2.4 kilowatt-hours of
378 qualifying electricity for each 1.0 kilowatt-hour generated; and
379 (b) if two or more municipal electric utilities jointly own a renewable energy resource,
380 each municipal electric utility shall be credited with 1.0 kilowatt-hour of qualifying electricity
381 for 1.0 kilowatt-hour of the renewable energy resource allocated to the municipal electric utility
382 by contract, unless the contract otherwise provides.
383 (3) A renewable energy certificate:
384 (a) may be used only once to satisfy Subsection 10-19-201(1);
385 (b) may be used to satisfy Subsection 10-19-201(1) and the qualifying electricity on
386 which the renewable energy certificate is based may be used to satisfy any federal renewable
387 energy requirement; and
388 (c) may not be used if it has been used to satisfy any other state's renewable energy
389 requirement.
390 Section 5. Section 10-19-301 is amended to read:
391 10-19-301. Plans and reports.
392 (1) A municipal electric utility shall develop and maintain a plan for implementing
393 Subsection 10-19-201(1).
394 (2) A progress report concerning a plan under Subsection (1) shall be filed with the
395 municipality's legislative body by January 1 of each of the years 2010, 2015, 2020, and 2024.
396 (3) The progress report under Subsection (2) shall contain:
397 (a) the actual and projected amount of qualifying electricity through 2025;
398 (b) the source of qualifying electricity;
399 (c) an estimate of the cost of achieving the target;
400 (d) a discussion of conditions impacting the [
401 qualifying electricity markets; and
402 (e) any recommendation for a suggested legislative or program change.
403 (4) The plan and progress report required by Subsections (1) and (2) may include
404 procedures that will be used by the municipal electric utility to identify and select any
405 cost-effective [
406 (5) By July 1, 2026, the municipal electric utility shall file a final progress report
407 demonstrating:
408 (a) how Subsection 10-19-201(1) is satisfied for the year 2025; or
409 (b) the reason why Subsection 10-19-201(1) is not satisfied for the year 2025, if it is
410 not satisfied.
411 (6) The plan and any progress report filed under this section shall be publicly available
412 at the municipal legislative body's office.
413 Section 6. Section 11-13-218 is amended to read:
414 11-13-218. Authority of public agencies or interlocal entities to issue bonds --
415 Applicable provisions.
416 (1) A public agency may, in the same manner as it may issue bonds for its individual
417 acquisition of a facility or improvement or for constructing, improving, or extending a facility
418 or improvement, issue bonds to:
419 (a) acquire an interest in a jointly owned facility or improvement, a combination of a
420 jointly owned facility or improvement, or any other facility or improvement; or
421 (b) pay all or part of the cost of constructing, improving, or extending a jointly owned
422 facility or improvement, a combination of a jointly owned facility or improvement, or any other
423 facility or improvement.
424 (2) (a) An interlocal entity may issue bonds or notes under a resolution, trust indenture,
425 or other security instrument for the purpose of:
426 (i) financing its facilities or improvements; or
427 (ii) providing for or financing an energy efficiency upgrade, a [
428 system, or electric vehicle charging infrastructure in accordance with Title 11, Chapter 42,
429 Assessment Area Act.
430 (b) The bonds or notes may be sold at public or private sale, mature at such times and
431 bear interest at such rates, and have such other terms and security as the entity determines.
432 (c) The bonds or notes described in this Subsection (2) are not a debt of any public
433 agency that is a party to the agreement.
434 (3) The governing board may, by resolution, delegate to one or more officers of the
435 interlocal entity or to a committee of designated members of the governing board the authority
436 to:
437 (a) in accordance with and within the parameters set forth in the resolution, approve the
438 final interest rate, price, principal amount, maturity, redemption features, or other terms of a
439 bond or note; and
440 (b) approve and execute all documents relating to the issuance of the bond or note.
441 (4) Bonds and notes issued under this chapter are declared to be negotiable instruments
442 and their form and substance need not comply with the Uniform Commercial Code.
443 (5) (a) An interlocal entity shall issue bonds in accordance with, as applicable:
444 (i) Chapter 14, Local Government Bonding Act;
445 (ii) Chapter 27, Utah Refunding Bond Act;
446 (iii) this chapter; or
447 (iv) any other provision of state law that authorizes issuance of bonds by a public body.
448 (b) An interlocal entity is a public body as defined in Section 11-30-2.
449 Section 7. Section 11-17-2 is amended to read:
450 11-17-2. Definitions.
451 As used in this chapter:
452 (1) "Bonds" means bonds, notes, or other evidences of indebtedness.
453 (2) "Clean energy system" means a product, system, device, or interacting group of
454 devices that is permanently affixed to real property and that produces energy from clean
455 resources, including:
456 (a) a photovoltaic system;
457 (b) a solar thermal system;
458 (c) a wind system;
459 (d) a geothermal system, including:
460 (i) a direct-use system; or
461 (ii) a ground source heat pump system;
462 (e) a micro-hydro system;
463 (f) nuclear fuel;
464 (g) carbon capture utilization and sequestration; or
465 (h) another clean energy system approved by the governing body.
466 [
467 affixed to real property and that is designed to reduce energy consumption, including:
468 (a) insulation in:
469 (i) a wall, ceiling, roof, floor, or foundation; or
470 (ii) a heating or cooling distribution system;
471 (b) an insulated window or door, including:
472 (i) a storm window or door;
473 (ii) a multiglazed window or door;
474 (iii) a heat-absorbing window or door;
475 (iv) a heat-reflective glazed and coated window or door;
476 (v) additional window or door glazing;
477 (vi) a window or door with reduced glass area; or
478 (vii) other window or door modifications that reduce energy loss;
479 (c) an automatic energy control system;
480 (d) in a building or a central plant, a heating, ventilation, or air conditioning and
481 distribution system;
482 (e) caulking or weatherstripping;
483 (f) a light fixture that does not increase the overall illumination of a building unless an
484 increase is necessary to conform with the applicable building code;
485 (g) an energy recovery system;
486 (h) a daylighting system;
487 (i) measures to reduce the consumption of water, through conservation or more
488 efficient use of water, including:
489 (i) installation of a low-flow toilet or showerhead;
490 (ii) installation of a timer or timing system for a hot water heater; or
491 (iii) installation of a rain catchment system; or
492 (j) any other modified, installed, or remodeled fixture that is approved as a utility
493 cost-savings measure by the governing body.
494 [
495 county, or state university for the purpose of using a portion, or all or substantially all of the
496 proceeds to pay for or to reimburse the user, lender, or the user or lender's designee for the
497 costs of the acquisition of facilities of a project, or to create funds for the project itself where
498 appropriate, whether these costs are incurred by the municipality, the county, the state
499 university, the user, or a designee of the user. If title to or in these facilities at all times remains
500 in the user, the bonds of the municipality or county shall be secured by a pledge of one or more
501 notes, debentures, bonds, other secured or unsecured debt obligations of the user or lender, or
502 the sinking fund or other arrangement as in the judgment of the governing body is appropriate
503 for the purpose of assuring repayment of the bond obligations to investors in accordance with
504 their terms.
505 [
506 (a) for a county, city, town, or metro township, the legislative body of the county, city,
507 town, or metro township;
508 (b) for the military installation development authority created in Section 63H-1-201,
509 the board, as defined in Section 63H-1-102;
510 (c) for a state university except as provided in Subsection [
511 body having the control and supervision of the state university; and
512 (d) for a nonprofit corporation or foundation created by and operating under the
513 auspices of a state university, the board of directors or board of trustees of that corporation or
514 foundation.
515 [
516 easements, and franchises relating to it, acquired and developed by a municipality, county, or
517 state university for the establishment and location of a series of sites for plants and other
518 buildings for industrial, distribution, and wholesale use.
519 (b) "Industrial park" includes the development of the land for an industrial park under
520 this chapter or the acquisition and provision of water, sewerage, drainage, street, road,
521 sidewalk, curb, gutter, street lighting, electrical distribution, railroad, or docking facilities, or
522 any combination of them, but only to the extent that these facilities are incidental to the use of
523 the land as an industrial park.
524 [
525 bank, credit union, or any other lending institution that lends, loans, or leases proceeds of a
526 financing to the user or a user's designee.
527 [
528 [
529 state, including cities or towns operating under home rule charters.
530 [
531 pollution, air pollution, pollution caused by solid waste disposal, thermal pollution, radiation
532 contamination, or noise pollution.
533 [
534 (i) an industrial park, land, interest in land, building, structure, facility, system, fixture,
535 improvement, appurtenance, machinery, equipment, or any combination of them, whether or
536 not in existence or under construction:
537 (A) that is suitable for industrial, manufacturing, warehousing, research, business, and
538 professional office building facilities, commercial, shopping services, food, lodging, low
539 income rental housing, recreational, or any other business purposes;
540 (B) that is suitable to provide services to the general public;
541 (C) that is suitable for use by any corporation, person, or entity engaged in health care
542 services, including hospitals, nursing homes, extended care facilities, facilities for the care of
543 persons with a physical or mental disability, and administrative and support facilities; or
544 (D) that is suitable for use by a state university for the purpose of aiding in the
545 accomplishment of its authorized academic, scientific, engineering, technical, and economic
546 development functions;
547 (ii) any land, interest in land, building, structure, facility, system, fixture, improvement,
548 appurtenance, machinery, equipment, or any combination of them, used by any individual,
549 partnership, firm, company, corporation, public utility, association, trust, estate, political
550 subdivision, state agency, or any other legal entity, or its legal representative, agent, or assigns,
551 for the reduction, abatement, or prevention of pollution, including the removal or treatment of
552 any substance in process material, if that material would cause pollution if used without the
553 removal or treatment;
554 (iii) an energy efficiency upgrade;
555 (iv) a [
556 (v) facilities, machinery, or equipment, the manufacturing and financing of which will
557 maintain or enlarge domestic or foreign markets for Utah industrial products; or
558 (vi) any economic development or new venture investment fund to be raised other than
559 from:
560 (A) municipal or county general fund money;
561 (B) money raised under the taxing power of any county or municipality; or
562 (C) money raised against the general credit of any county or municipality.
563 (b) "Project" does not include any property, real, personal, or mixed, for the purpose of
564 the construction, reconstruction, improvement, or maintenance of a public utility as defined in
565 Section 54-2-1.
566 [
567
568
569 [
570 [
571 [
572 [
573 [
574 [
575 [
576 [
577 (12) "State university" means an institution of higher education as described in Section
578 53B-2-101 and includes any nonprofit corporation or foundation created by and operating
579 under their authority.
580 (13) "User" means the person, whether natural or corporate, who will occupy, operate,
581 maintain, and employ the facilities of, or manage and administer a project after the financing,
582 acquisition, or construction of it, whether as owner, manager, purchaser, lessee, or otherwise.
583 Section 8. Section 11-42a-102 is amended to read:
584 11-42a-102. Definitions.
585 (1) "Air quality standards" means that a vehicle's emissions are equal to or cleaner than
586 the standards established in bin 4 Table S04-1, of 40 C.F.R. 86.1811-04(c)(6).
587 (2) (a) "Assessment" means the assessment that a local entity or the C-PACE district
588 levies on private property under this chapter to cover the costs of an energy efficiency upgrade,
589 a [
590 (b) "Assessment" does not constitute a property tax but shares the same priority lien as
591 a property tax.
592 (3) "Assessment fund" means a special fund that a local entity establishes under
593 Section 11-42a-206.
594 (4) "Benefitted property" means private property within an energy assessment area that
595 directly benefits from improvements.
596 (5) "Bond" means an assessment bond and a refunding assessment bond.
597 (6) (a) "Clean energy system" means a product, system, device, or interacting group of
598 devices that is permanently affixed to commercial or industrial real property not located in the
599 certified service area of a distribution electrical cooperative, as that term is defined in Section
600 54-2-1, and:
601 (i) produces energy from renewable resources, including:
602 (A) a photovoltaic system;
603 (B) a solar thermal system;
604 (C) a wind system;
605 (D) a geothermal system, including a generation system, a direct-use system, or a
606 ground source heat pump system;
607 (E) a micro-hydro system;
608 (F) a biofuel system;
609 (G) energy derived from nuclear fuel; or
610 (H) any other clean source system that the governing body of the local entity approves;
611 (ii) stores energy, including:
612 (A) a battery storage system; or
613 (B) any other energy storing system that the governing body or chief executive officer
614 of a local entity approves; or
615 (iii) any improvement that relates physically or functionally to any of the products,
616 systems, or devices listed in Subsection (6)(a)(i) or (ii).
617 (b) "Clean energy system" does not include a system described in Subsection (6)(a)(i)
618 if the system provides energy to property outside the energy assessment area, unless the system:
619 (i) (A) existed before the creation of the energy assessment area; and
620 (B) beginning before January 1, 2017, provides energy to property outside of the area
621 that became the energy assessment area; or
622 (ii) provides energy to property outside the energy assessment area under an agreement
623 with a public electrical utility that is substantially similar to agreements for other renewable
624 energy systems that are not funded under this chapter.
625 [
626 directly or indirectly or held for one of the following purposes or activities, regardless of
627 whether the purpose or activity is for profit:
628 (i) commercial;
629 (ii) mining;
630 (iii) agricultural;
631 (iv) industrial;
632 (v) manufacturing;
633 (vi) trade;
634 (vii) professional;
635 (viii) a private or public club;
636 (ix) a lodge;
637 (x) a business; or
638 (xi) a similar purpose.
639 (b) "Commercial or industrial real property" includes:
640 (i) private real property that is used as or held for dwelling purposes and contains:
641 (A) more than four rental units; or
642 (B) one or more owner-occupied or rental condominium units affiliated with a hotel;
643 and
644 (ii) real property owned by:
645 (A) the military installation development authority, created in Section 63H-1-201; or
646 (B) the Utah Inland Port Authority, created in Section 11-58-201.
647 [
648 (a) up to 100% of the cost of installing, acquiring, refinancing, or reimbursing for an
649 improvement, as determined by the owner of the property benefitting from the improvement; or
650 (b) the amount payable to one or more contractors for the assessment, design,
651 engineering, inspection, and construction of an improvement.
652 [
653 [
654 11-42a-106 to implement the C-PACE Act in collaboration with governing bodies, under the
655 direction of OED.
656 [
657 (a) permanently affixed to commercial or industrial real property; and
658 (b) designed to deliver electric energy to a qualifying electric vehicle or a qualifying
659 plug-in hybrid vehicle.
660 [
661 (a) within the jurisdictional boundaries of a local entity that approves an energy
662 assessment area or, if the C-PACE district or a state interlocal entity levies the assessment, the
663 C-PACE district or the state interlocal entity;
664 (b) containing only the commercial or industrial real property of owners who have
665 voluntarily consented to an assessment under this chapter for the purpose of financing the costs
666 of improvements that benefit property within the energy assessment area; and
667 (c) in which the proposed benefitted properties in the area are:
668 (i) contiguous; or
669 (ii) located on one or more contiguous or adjacent tracts of land that would be
670 contiguous or adjacent property but for an intervening right-of-way, including a sidewalk,
671 street, road, fixed guideway, or waterway.
672 [
673 (a) issued under Section 11-42a-401; and
674 (b) payable in part or in whole from assessments levied in an energy assessment area.
675 [
676 assessment area that arises from the levy of an assessment in accordance with Section
677 11-42a-301.
678 [
679 adopts under Section 11-42a-201 that:
680 (a) designates an energy assessment area;
681 (b) levies an assessment on benefitted property within the energy assessment area; and
682 (c) if applicable, authorizes the issuance of energy assessment bonds.
683 [
684 local entity under Section 11-42a-201 that:
685 (a) designates an energy assessment area;
686 (b) levies an assessment on benefitted property within the energy assessment area; and
687 (c) if applicable, authorizes the issuance of energy assessment bonds.
688 [
689 (a) permanently affixed to commercial or industrial real property; and
690 (b) designed to reduce energy or water consumption, including:
691 (i) insulation in:
692 (A) a wall, roof, floor, or foundation; or
693 (B) a heating and cooling distribution system;
694 (ii) a window or door, including:
695 (A) a storm window or door;
696 (B) a multiglazed window or door;
697 (C) a heat-absorbing window or door;
698 (D) a heat-reflective glazed and coated window or door;
699 (E) additional window or door glazing;
700 (F) a window or door with reduced glass area; or
701 (G) other window or door modifications;
702 (iii) an automatic energy control system;
703 (iv) in a building or a central plant, a heating, ventilation, or air conditioning and
704 distribution system;
705 (v) caulk or weatherstripping;
706 (vi) a light fixture that does not increase the overall illumination of a building, unless
707 an increase is necessary to conform with the applicable building code;
708 (vii) an energy recovery system;
709 (viii) a daylighting system;
710 (ix) measures to reduce the consumption of water, through conservation or more
711 efficient use of water, including installation of:
712 (A) low-flow toilets and showerheads;
713 (B) timer or timing systems for a hot water heater; or
714 (C) rain catchment systems;
715 (x) a modified, installed, or remodeled fixture that is approved as a utility cost-saving
716 measure by the governing body or executive of a local entity;
717 (xi) measures or other improvements to effect seismic upgrades;
718 (xii) structures, measures, or other improvements to provide automated parking or
719 parking that reduces land use;
720 (xiii) the extension of an existing natural gas distribution company line;
721 (xiv) an energy efficient elevator, escalator, or other vertical transport device;
722 (xv) any other improvement that the governing body or executive of a local entity
723 approves as an energy efficiency upgrade; or
724 (xvi) any improvement that relates physically or functionally to any of the
725 improvements listed in Subsections [
726 [
727 (a) for a county, city, town, or metro township, the legislative body of the county, city,
728 town, or metro township;
729 (b) for a special district, the board of trustees of the special district;
730 (c) for a special service district:
731 (i) if no administrative control board has been appointed under Section 17D-1-301, the
732 legislative body of the county, city, town, or metro township that established the special service
733 district; or
734 (ii) if an administrative control board has been appointed under Section 17D-1-301, the
735 administrative control board of the special service district;
736 (d) for the military installation development authority created in Section 63H-1-201,
737 the board, as that term is defined in Section 63H-1-102; and
738 (e) for the Utah Inland Port Authority, created in Section 11-58-201, the board, as
739 defined in Section 11-58-102.
740 [
741 upgrade, [
742 (a) a property owner has requested; or
743 (b) has been or is being installed on a property for the benefit of the property owner.
744 [
745 assessment bond and calling, retiring, or paying prior bonds, including:
746 (a) legal and accounting fees;
747 (b) charges of financial advisors, escrow agents, certified public accountant verification
748 entities, and trustees;
749 (c) underwriting discount costs, printing costs, and the costs of giving notice;
750 (d) any premium necessary in the calling or retiring of prior bonds;
751 (e) fees to be paid to the local entity to issue the refunding assessment bond and to
752 refund the outstanding prior bonds;
753 (f) any other costs that the governing body determines are necessary and proper to incur
754 in connection with the issuance of a refunding assessment bond; and
755 (g) any interest on the prior bonds that is required to be paid in connection with the
756 issuance of the refunding assessment bond.
757 [
758 payment of an assessment is payable.
759 [
760 (a) for the C-PACE district or any state interlocal entity, the boundaries of the state;
761 and
762 (b) for each local entity, the boundaries of the local entity.
763 [
764 (i) a county, city, town, or metro township;
765 (ii) a special service district, a special district, or an interlocal entity as that term is
766 defined in Section 11-13-103;
767 (iii) a state interlocal entity;
768 (iv) the military installation development authority, created in Section 63H-1-201;
769 (v) the Utah Inland Port Authority, created in Section 11-58-201; or
770 (vi) any political subdivision of the state.
771 (b) "Local entity" includes the C-PACE district solely in connection with:
772 (i) the designation of an energy assessment area;
773 (ii) the levying of an assessment; and
774 (iii) the assignment of an energy assessment lien to a third-party lender under Section
775 11-42a-302.
776 [
777 assessment bonds that a local entity issues.
778 [
779 79-6-401.
780 [
781 [
782 be incurred in connection with an energy assessment area, including:
783 (a) appraisals, legal fees, filing fees, facilitation fees, and financial advisory charges;
784 (b) underwriting fees, placement fees, escrow fees, trustee fees, and paying agent fees;
785 (c) publishing and mailing costs;
786 (d) costs of levying an assessment;
787 (e) recording costs; and
788 (f) all other incidental costs.
789 [
790 adopts in accordance with Section 11-42a-201.
791 [
792 whole by a refunding assessment bond.
793 [
794 assessments from which the prior bonds are payable.
795 [
796 assessments from which the prior bonds are payable.
797 [
798 water rights and leasehold rights.
799 [
800 defined in Section 54-2-1.
801 [
802 (a) meets air quality standards;
803 (b) is not fueled by natural gas;
804 (c) draws propulsion energy from a battery with at least 10 kilowatt hours of capacity;
805 and
806 (d) is an OEM vehicle except that the vehicle is fueled by a fuel described in
807 Subsection [
808 [
809 (a) meets air quality standards;
810 (b) is not fueled by natural gas or propane;
811 (c) has a battery capacity that meets or exceeds the battery capacity described in
812 Subsection 30D(b)(3), Internal Revenue Code; and
813 (d) is fueled by a combination of electricity and:
814 (i) diesel fuel;
815 (ii) gasoline; or
816 (iii) a mixture of gasoline and ethanol.
817 [
818 property within an energy assessment area to pay an assessment levied on the property after the
819 local entity has reduced the assessment because of the issuance of a refunding assessment
820 bond, in accordance with Section 11-42a-403.
821 [
822 issues under Section 11-42a-403 to refund, in part or in whole, energy assessment bonds.
823 [
824
825
826
827 [
828 [
829 [
830 [
831 [
832
833 [
834 [
835 [
836
837 [
838 [
839 [
840
841 [
842
843 [
844
845
846 [
847 [
848
849 [
850
851
852 (38) "Special district" means a special district under Title 17B, Limited Purpose Local
853 Government Entities - Special Districts.
854 (39) "Special service district" means the same as that term is defined in Section
855 17D-1-102.
856 (40) "State interlocal entity" means:
857 (a) an interlocal entity created under Chapter 13, Interlocal Cooperation Act, by two or
858 more counties, cities, towns, or metro townships that collectively represent at least a majority
859 of the state's population; or
860 (b) an entity that another state authorized, before January 1, 2017, to issue bonds,
861 notes, or other obligations or refunding obligations to finance or refinance projects in the state.
862 (41) "Third-party lender" means a trust company, savings bank, savings and loan
863 association, bank, credit union, or any other entity that provides loans directly to property
864 owners for improvements authorized under this chapter.
865 Section 9. Section 11-42a-103 is amended to read:
866 11-42a-103. No limitation on other local entity powers -- Conflict with other
867 statutory provisions.
868 (1) This chapter does not limit a power that a local entity has under other applicable
869 law to:
870 (a) make an improvement or provide a service;
871 (b) create a district;
872 (c) levy an assessment or tax; or
873 (d) issue a bond or a refunding bond.
874 (2) If there is a conflict between a provision of this chapter and any other statutory
875 provision, the provision of this chapter governs.
876 (3) After January 1, 2017, a local entity or the C-PACE district may create an energy
877 assessment area within the certificated service territory of a public electrical utility for the
878 installation of a [
879 (a) no more than 2.0 megawatts; or
880 (b) more than 2.0 megawatts to serve load that the public electrical utility does not
881 already serve.
882 Section 10. Section 11-58-102 is amended to read:
883 11-58-102. Definitions.
884 As used in this chapter:
885 (1) "Authority" means the Utah Inland Port Authority, created in Section 11-58-201.
886 (2) "Authority jurisdictional land" means land within the authority boundary
887 delineated:
888 (a) in the electronic shapefile that is the electronic component of H.B. 2001, Utah
889 Inland Port Authority Amendments, 2018 Second Special Session; and
890 (b) beginning April 1, 2020, as provided in Subsection 11-58-202(3).
891 (3) "Base taxable value" means:
892 (a) (i) except as provided in Subsection (3)(a)(ii), for a project area that consists of the
893 authority jurisdictional land, the taxable value of authority jurisdictional land in calendar year
894 2018; and
895 (ii) for an area described in Section 11-58-600.7, the taxable value of that area in
896 calendar year 2017; or
897 (b) for a project area that consists of land outside the authority jurisdictional land, the
898 taxable value of property within any portion of a project area, as designated by board
899 resolution, from which the property tax differential will be collected, as shown upon the
900 assessment roll last equalized before the year in which the authority adopts a project area plan
901 for that area.
902 (4) "Board" means the authority's governing body, created in Section 11-58-301.
903 (5) "Business plan" means a plan designed to facilitate, encourage, and bring about
904 development of the authority jurisdictional land to achieve the goals and objectives described
905 in Subsection 11-58-203(1), including the development and establishment of an inland port.
906 (6) "Contaminated land" means land:
907 (a) within a project area; and
908 (b) that contains hazardous materials, as defined in Section 19-6-302, hazardous
909 substances, as defined in Section 19-6-302, or landfill material on, in, or under the land.
910 (7) "Development" means:
911 (a) the demolition, construction, reconstruction, modification, expansion, or
912 improvement of a building, utility, infrastructure, landscape, parking lot, park, trail,
913 recreational amenity, or other facility, including public infrastructure and improvements; and
914 (b) the planning of, arranging for, or participation in any of the activities listed in
915 Subsection (7)(a).
916 (8) "Development project" means a project for the development of land within a
917 project area.
918 (9) "Inland port" means one or more sites that:
919 (a) contain multimodal facilities, intermodal facilities, or other facilities that:
920 (i) are related but may be separately owned and managed; and
921 (ii) together are intended to:
922 (A) allow global trade to be processed and altered by value-added services as goods
923 move through the supply chain;
924 (B) provide a regional merging point for transportation modes for the distribution of
925 goods to and from ports and other locations in other regions;
926 (C) provide cargo-handling services to allow freight consolidation and distribution,
927 temporary storage, customs clearance, and connection between transport modes; and
928 (D) provide international logistics and distribution services, including freight
929 forwarding, customs brokerage, integrated logistics, and information systems; and
930 (b) may include a satellite customs clearance terminal, an intermodal facility, a
931 customs pre-clearance for international trade, or other facilities that facilitate, encourage, and
932 enhance regional, national, and international trade.
933 (10) "Inland port use" means a use of land:
934 (a) for an inland port;
935 (b) that directly implements or furthers the purposes of an inland port, as stated in
936 Subsection (9);
937 (c) that complements or supports the purposes of an inland port, as stated in Subsection
938 (9); or
939 (d) that depends upon the presence of the inland port for the viability of the use.
940 (11) "Intermodal facility" means a facility for transferring containerized cargo between
941 rail, truck, air, or other transportation modes.
942 (12) "Landfill material" means garbage, waste, debris, or other materials disposed of or
943 placed in a landfill.
944 (13) "Multimodal facility" means a hub or other facility for trade combining any
945 combination of rail, trucking, air cargo, and other transportation services.
946 (14) "Nonvoting member" means an individual appointed as a member of the board
947 under Subsection 11-58-302(3) who does not have the power to vote on matters of authority
948 business.
949 (15) "Project area" means:
950 (a) the authority jurisdictional land, subject to Section 11-58-605; or
951 (b) land outside the authority jurisdictional land, whether consisting of a single
952 contiguous area or multiple noncontiguous areas, described in a project area plan or draft
953 project area plan, where the development project set forth in the project area plan or draft
954 project area plan takes place or is proposed to take place.
955 (16) "Project area budget" means a multiyear projection of annual or cumulative
956 revenues and expenses and other fiscal matters pertaining to the project area.
957 (17) "Project area plan" means a written plan that, after its effective date, guides and
958 controls the development within a project area.
959 (18) "Property tax" includes a privilege tax and each levy on an ad valorem basis on
960 tangible or intangible personal or real property.
961 (19) "Property tax differential":
962 (a) means the difference between:
963 (i) the amount of property tax revenues generated each tax year by all taxing entities
964 from a project area, using the current assessed value of the property; and
965 (ii) the amount of property tax revenues that would be generated from that same area
966 using the base taxable value of the property; and
967 (b) does not include property tax revenue from:
968 (i) a county additional property tax or multicounty assessing and collecting levy
969 imposed in accordance with Section 59-2-1602;
970 (ii) a judgment levy imposed by a taxing entity under Section 59-2-1328 or 59-2-1330;
971 or
972 (iii) a levy imposed by a taxing entity under Section 11-14-310 to pay for a general
973 obligation bond.
974 (20) "Public entity" means:
975 (a) the state, including each department, division, or other agency of the state; or
976 (b) a county, city, town, metro township, school district, special district, special service
977 district, interlocal cooperation entity, community reinvestment agency, or other political
978 subdivision of the state, including the authority.
979 (21) (a) "Public infrastructure and improvements" means infrastructure, improvements,
980 facilities, or buildings that:
981 (i) (A) benefit the public and are owned by a public entity or a utility; or
982 (B) benefit the public and are publicly maintained or operated by a public entity; or
983 (ii) (A) are privately owned;
984 (B) benefit the public;
985 (C) as determined by the board, provide a substantial benefit to the development and
986 operation of a project area; and
987 (D) are built according to applicable county or municipal design and safety standards.
988 (b) "Public infrastructure and improvements" includes:
989 (i) facilities, lines, or systems that provide:
990 (A) water, chilled water, or steam; or
991 (B) sewer, storm drainage, natural gas, electricity, energy storage, [
992 energy, microgrids, or telecommunications service;
993 (ii) streets, roads, curb, gutter, sidewalk, walkways, solid waste facilities, parking
994 facilities, rail lines, intermodal facilities, multimodal facilities, and public transportation
995 facilities;
996 (iii) an inland port; and
997 (iv) infrastructure, improvements, facilities, or buildings that are developed as part of a
998 remediation project.
999 (22) "Remediation" includes:
1000 (a) activities for the cleanup, rehabilitation, and development of contaminated land;
1001 and
1002 (b) acquiring an interest in land within a remediation project area.
1003 (23) "Remediation differential" means property tax differential generated from a
1004 remediation project area.
1005 (24) "Remediation project" means a project for the remediation of contaminated land
1006 that:
1007 (a) is owned by:
1008 (i) the state or a department, division, or other instrumentality of the state;
1009 (ii) an independent entity, as defined in Section 63E-1-102; or
1010 (iii) a political subdivision of the state; and
1011 (b) became contaminated land before the owner described in Subsection (24)(a)
1012 obtained ownership of the land.
1013 (25) "Remediation project area" means a project area consisting of contaminated land
1014 that is or is expected to become the subject of a remediation project.
1015 (26) "Shapefile" means the digital vector storage format for storing geometric location
1016 and associated attribute information.
1017 (27) "Taxable value" means the value of property as shown on the last equalized
1018 assessment roll.
1019 (28) "Taxing entity":
1020 (a) means a public entity that levies a tax on property within a project area; and
1021 (b) does not include a public infrastructure district that the authority creates under Title
1022 17D, Chapter 4, Public Infrastructure District Act.
1023 (29) "Voting member" means an individual appointed or designated as a member of the
1024 board under Subsection 11-58-302(2).
1025 Section 11. Section 11-58-203 is amended to read:
1026 11-58-203. Policies and objectives of the authority -- Additional duties of the
1027 authority.
1028 (1) The policies and objectives of the authority are to:
1029 (a) maximize long-term economic benefits to the area, the region, and the state;
1030 (b) maximize the creation of high-quality jobs;
1031 (c) respect and maintain sensitivity to the unique natural environment of areas in
1032 proximity to the authority jurisdictional land and land in other authority project areas;
1033 (d) improve air quality and minimize resource use;
1034 (e) respect existing land use and other agreements and arrangements between property
1035 owners within the authority jurisdictional land and within other authority project areas and
1036 applicable governmental authorities;
1037 (f) promote and encourage development and uses that are compatible with or
1038 complement uses in areas in proximity to the authority jurisdictional land or land in other
1039 authority project areas;
1040 (g) take advantage of the authority jurisdictional land's strategic location and other
1041 features, including the proximity to transportation and other infrastructure and facilities, that
1042 make the authority jurisdictional land attractive to:
1043 (i) businesses that engage in regional, national, or international trade; and
1044 (ii) businesses that complement businesses engaged in regional, national, or
1045 international trade;
1046 (h) facilitate the transportation of goods;
1047 (i) coordinate trade-related opportunities to export Utah products nationally and
1048 internationally;
1049 (j) support and promote land uses on the authority jurisdictional land and land in other
1050 authority project areas that generate economic development, including rural economic
1051 development;
1052 (k) establish a project of regional significance;
1053 (l) facilitate an intermodal facility;
1054 (m) support uses of the authority jurisdictional land for inland port uses, including
1055 warehousing, light manufacturing, and distribution facilities;
1056 (n) facilitate an increase in trade in the region and in global commerce;
1057 (o) promote the development of facilities that help connect local businesses to potential
1058 foreign markets for exporting or that increase foreign direct investment;
1059 (p) encourage all class 5 though 8 designated truck traffic entering the authority
1060 jurisdictional land to meet the heavy-duty highway compression-ignition diesel engine and
1061 urban bus exhaust emission standards for year 2007 and later;
1062 (q) encourage the development and use of cost-efficient [
1063 project areas;
1064 (r) aggressively pursue world-class businesses that employ cutting-edge technologies to
1065 locate within a project area; and
1066 (s) pursue land remediation and development opportunities for publicly owned land to
1067 add value to a project area.
1068 (2) In fulfilling its duties and responsibilities relating to the development of the
1069 authority jurisdictional land and land in other authority project areas and to achieve and
1070 implement the development policies and objectives under Subsection (1), the authority shall:
1071 (a) work to identify funding sources, including federal, state, and local government
1072 funding and private funding, for capital improvement projects in and around the authority
1073 jurisdictional land and land in other authority project areas and for an inland port;
1074 (b) review and identify land use and zoning policies and practices to recommend to
1075 municipal land use policymakers and administrators that are consistent with and will help to
1076 achieve:
1077 (i) the policies and objectives stated in Subsection (1); and
1078 (ii) the mutual goals of the state and local governments that have authority
1079 jurisdictional land with their boundaries with respect to the authority jurisdictional land;
1080 (c) consult and coordinate with other applicable governmental entities to improve and
1081 enhance transportation and other infrastructure and facilities in order to maximize the potential
1082 of the authority jurisdictional land to attract, retain, and service users who will help maximize
1083 the long-term economic benefit to the state; and
1084 (d) pursue policies that the board determines are designed to avoid or minimize
1085 negative environmental impacts of development.
1086 (3) The board may consider the emissions profile of road, yard, or rail vehicles:
1087 (a) in determining access by those vehicles to facilities that the authority owns or
1088 finances; or
1089 (b) in setting fees applicable to those vehicles for the use of facilities that the authority
1090 owns or finances.
1091 Section 12. Section 11-59-102 is amended to read:
1092 11-59-102. Definitions.
1093 As used in this chapter:
1094 (1) "Authority" means the Point of the Mountain State Land Authority, created in
1095 Section 11-59-201.
1096 (2) "Board" means the authority's board, created in Section 11-59-301.
1097 (3) "Development":
1098 (a) means the construction, reconstruction, modification, expansion, or improvement of
1099 a building, utility, infrastructure, landscape, parking lot, park, trail, recreational amenity, or
1100 other facility, including:
1101 (i) the demolition or preservation or repurposing of a building, infrastructure, or other
1102 facility;
1103 (ii) surveying, testing, locating existing utilities and other infrastructure, and other
1104 preliminary site work; and
1105 (iii) any associated planning, design, engineering, and related activities; and
1106 (b) includes all activities associated with:
1107 (i) marketing and business recruiting activities and efforts;
1108 (ii) leasing, or selling or otherwise disposing of, all or any part of the point of the
1109 mountain state land; and
1110 (iii) planning and funding for mass transit infrastructure to service the point of the
1111 mountain state land.
1112 (4) "Facilities division" means the Division of Facilities Construction and
1113 Management, created in Section 63A-5b-301.
1114 (5) "New correctional facility" means the state correctional facility being developed in
1115 Salt Lake City to replace the state correctional facility in Draper.
1116 (6) "Point of the mountain state land" means the approximately 700 acres of
1117 state-owned land in Draper, including land used for the operation of a state correctional facility
1118 until completion of the new correctional facility and state-owned land in the vicinity of the
1119 current state correctional facility.
1120 (7) "Public entity" means:
1121 (a) the state, including each department, division, or other agency of the state; or
1122 (b) a county, city, town, metro township, school district, special district, special service
1123 district, interlocal cooperation entity, community reinvestment agency, or other political
1124 subdivision of the state, including the authority.
1125 (8) "Publicly owned infrastructure and improvements":
1126 (a) means infrastructure, improvements, facilities, or buildings that:
1127 (i) benefit the public; and
1128 (ii) (A) are owned by a public entity or a utility; or
1129 (B) are publicly maintained or operated by a public entity; and
1130 (b) includes:
1131 (i) facilities, lines, or systems that provide:
1132 (A) water, chilled water, or steam; or
1133 (B) sewer, storm drainage, natural gas, electricity, energy storage, [
1134 energy, microgrids, or telecommunications service;
1135 (ii) streets, roads, curb, gutter, sidewalk, walkways, solid waste facilities, parking
1136 facilities, and public transportation facilities; and
1137 (iii) greenspace, parks, trails, recreational amenities, or other similar facilities.
1138 (9) "Taxing entity" means the same as that term is defined in Section 59-2-102.
1139 Section 13. Section 11-59-202 is amended to read:
1140 11-59-202. Authority powers.
1141 (1) The authority may:
1142 (a) as provided in this chapter, plan, manage, and implement the development of the
1143 point of the mountain state land, including the ongoing operation of facilities on the point of
1144 the mountain state land;
1145 (b) undertake, or engage a consultant to undertake, any study, effort, or activity the
1146 board considers appropriate to assist or inform the board about any aspect of the proposed
1147 development of the point of the mountain state land, including the best development model and
1148 financial projections relevant to the authority's efforts to fulfill its duties and responsibilities
1149 under this section and Section 11-59-203;
1150 (c) sue and be sued;
1151 (d) enter into contracts generally, including a contract for the sharing of records under
1152 Section 63G-2-206;
1153 (e) buy, obtain an option upon, or otherwise acquire any interest in real or personal
1154 property, as necessary to accomplish the duties and responsibilities of the authority, including
1155 an interest in real property, apart from point of the mountain state land, or personal property,
1156 outside point of the mountain state land, for publicly owned infrastructure and improvements,
1157 if the board considers the purchase, option, or other interest acquisition to be necessary for
1158 fulfilling the authority's development objectives;
1159 (f) sell, convey, grant, dispose of by gift, or otherwise dispose of any interest in real or
1160 personal property;
1161 (g) enter into a lease agreement on real or personal property, either as lessee or lessor;
1162 (h) provide for the development of the point of the mountain state land under one or
1163 more contracts, including the development of publicly owned infrastructure and improvements
1164 and other infrastructure and improvements on or related to the point of the mountain state land;
1165 (i) exercise powers and perform functions under a contract, as authorized in the
1166 contract;
1167 (j) accept financial or other assistance from any public or private source for the
1168 authority's activities, powers, and duties, and expend any funds so received for any of the
1169 purposes of this chapter;
1170 (k) borrow money, contract with, or accept financial or other assistance from the
1171 federal government, a public entity, or any other source for any of the purposes of this chapter
1172 and comply with any conditions of the loan, contract, or assistance;
1173 (l) subject to Subsection (2), issue bonds to finance the undertaking of any
1174 development objectives of the authority, including bonds under Title 11, Chapter 17, Utah
1175 Industrial Facilities and Development Act, and bonds under Title 11, Chapter 42, Assessment
1176 Area Act;
1177 (m) hire employees, including contract employees, in addition to or in place of staff
1178 provided under Section 11-59-304;
1179 (n) transact other business and exercise all other powers provided for in this chapter;
1180 (o) enter into a development agreement with a developer of some or all of the point of
1181 the mountain state land;
1182 (p) provide for or finance an energy efficiency upgrade, a [
1183 system, or electric vehicle charging infrastructure as defined in Section 11-42a-102, in
1184 accordance with Title 11, Chapter 42a, Commercial Property Assessed Clean Energy Act;
1185 (q) exercise powers and perform functions that the authority is authorized by statute to
1186 exercise or perform;
1187 (r) enter into one or more interlocal agreements under Title 11, Chapter 13, Interlocal
1188 Cooperation Act, with one or more local government entities for the delivery of services to the
1189 point of the mountain state land;
1190 (s) enter into an agreement with the federal government or an agency of the federal
1191 government, as the board considers necessary or advisable, to enable or assist the authority to
1192 exercise its powers or fulfill its duties and responsibilities under this chapter;
1193 (t) provide funding for the development of publicly owned infrastructure and
1194 improvements or other infrastructure and improvements on or related to the point of the
1195 mountain state land; and
1196 (u) impose impact fees under Title 11, Chapter 36a, Impact Fees Act, and other fees
1197 related to development activities.
1198 (2) The authority may not issue bonds under this part unless the board first:
1199 (a) adopts a parameters resolution for the bonds that sets forth:
1200 (i) the maximum:
1201 (A) amount of bonds;
1202 (B) term; and
1203 (C) interest rate; and
1204 (ii) the expected security for the bonds; and
1205 (b) submits the parameters resolution for review and recommendation to the State
1206 Finance Review Commission created in Section 63C-25-201.
1207 (3) No later than 60 days after the closing day of any bonds, the authority shall report
1208 the bonds issuance, including the amount of the bonds, terms, interest rate, and security, to:
1209 (a) the Executive Appropriations Committee; and
1210 (b) the State Finance Review Commission created in Section 63C-25-201.
1211 Section 14. Section 11-65-101 is amended to read:
1212 11-65-101. Definitions.
1213 As used in this chapter:
1214 (1) "Adjacent political subdivision" means a political subdivision of the state with a
1215 boundary that abuts the lake authority boundary or includes lake authority land.
1216 (2) "Board" means the lake authority's governing body, created in Section 11-65-301.
1217 (3) "Lake authority" means the Utah Lake Authority, created in Section 11-65-201.
1218 (4) "Lake authority boundary" means the boundary:
1219 (a) defined by recorded boundary settlement agreements between private landowners
1220 and the Division of Forestry, Fire, and State Lands; and
1221 (b) that separates privately owned land from Utah Lake sovereign land.
1222 (5) "Lake authority land" means land on the lake side of the lake authority boundary.
1223 (6) "Management" means work to coordinate and facilitate the improvement of Utah
1224 Lake, including work to enhance the long-term viability and health of Utah Lake and to
1225 produce economic, aesthetic, recreational, environmental, and other benefits for the state,
1226 consistent with the strategies, policies, and objectives described in this chapter.
1227 (7) "Management plan" means a plan to conceptualize, design, facilitate, coordinate,
1228 encourage, and bring about the management of the lake authority land to achieve the policies
1229 and objectives described in Section 11-65-203.
1230 (8) "Nonvoting member" means an individual appointed as a member of the board
1231 under Subsection 11-65-302(6) who does not have the power to vote on matters of lake
1232 authority business.
1233 (9) "Project area" means an area that is identified in a project area plan as the area
1234 where the management described in the project area plan will occur.
1235 (10) "Project area budget" means a multiyear projection of annual or cumulative
1236 revenues and expenses and other fiscal matters pertaining to a project area.
1237 (11) "Project area plan" means a written plan that, after the plan's effective date,
1238 manages activity within a project area within the scope of a management plan.
1239 (12) "Public entity" means:
1240 (a) the state, including each department, division, or other agency of the state; or
1241 (b) a county, city, town, metro township, school district, special district, special service
1242 district, interlocal cooperation entity, community reinvestment agency, or other political
1243 subdivision of the state.
1244 (13) "Publicly owned infrastructure and improvements":
1245 (a) means infrastructure, improvements, facilities, or buildings that:
1246 (i) benefit the public; and
1247 (ii) (A) are owned by a public entity or a utility; or
1248 (B) are publicly maintained or operated by a public entity; and
1249 (b) includes:
1250 (i) facilities, lines, or systems that provide:
1251 (A) water, chilled water, or steam; or
1252 (B) sewer, storm drainage, natural gas, electricity, energy storage, [
1253 energy, microgrids, or telecommunications service; and
1254 (ii) streets, roads, curbs, gutters, sidewalks, walkways, solid waste facilities, parking
1255 facilities, and public transportation facilities.
1256 (14) "Sovereign land" means land:
1257 (a) lying below the ordinary high water mark of a navigable body of water at the date
1258 of statehood; and
1259 (b) owned by the state by virtue of the state's sovereignty.
1260 (15) "Utah Lake" includes all waters of Utah Lake and all land, whether or not
1261 submerged under water, within the lake authority boundary.
1262 (16) "Voting member" means an individual appointed as a member of the board under
1263 Subsection 11-65-302(2).
1264 Section 15. Section 11-65-203 is amended to read:
1265 11-65-203. Policies and objectives of the lake authority -- Additional duties of the
1266 lake authority.
1267 (1) The policies and objectives of the lake authority are to:
1268 (a) protect and improve:
1269 (i) the quality of Utah Lake's water, consistent with the Clean Water Act, 33 U.S.C.
1270 Sec. 1251 et seq., and Title 19, Chapter 5, Water Quality Act;
1271 (ii) the beneficial and public trust uses of Utah Lake;
1272 (iii) Utah Lake's environmental quality; and
1273 (iv) the quality of Utah Lake's lakebed and sediments;
1274 (b) enhance the recreational opportunities afforded by Utah Lake;
1275 (c) enhance long-term economic benefits to the area, the region, and the state;
1276 (d) respect and maintain sensitivity to the unique natural environment of areas in and
1277 around the lake authority boundary;
1278 (e) improve air quality and minimize resource use;
1279 (f) comply with existing land use and other agreements and arrangements between
1280 property owners and applicable governmental authorities;
1281 (g) promote and encourage management and uses that are compatible with or
1282 complement the public trust and uses in areas in proximity to Utah Lake;
1283 (h) take advantage of Utah Lake's strategic location and other features that make Utah
1284 Lake attractive:
1285 (i) to residents for recreational purposes;
1286 (ii) for tourism and leisure; and
1287 (iii) for business opportunities;
1288 (i) encourage the development and use of cost-efficient [
1289 project areas;
1290 (j) as consistent with applicable public trust, support and promote land uses on land
1291 within the lake authority boundary and land in adjacent political subdivisions that generate
1292 economic development, including rural economic development;
1293 (k) respect and not interfere with water rights or the operation of water facilities or
1294 water projects associated with Utah Lake;
1295 (l) respect and maintain sensitivity to the unique Native American history, historical
1296 sites, and artifacts within and around the lake authority boundary; and
1297 (m) protect the ability of the Provo airport to operate and grow, consistent with
1298 applicable environmental regulations, recognizing the significant state investment in the airport
1299 and the benefits that a thriving airport provides to the quality of life and the economy.
1300 (2) In fulfilling the lake authority's duties and responsibilities relating to the
1301 management of Utah Lake and to achieve and implement the management policies and
1302 objectives under Subsection (1), the lake authority shall:
1303 (a) work to identify funding sources, including federal, state, and local government
1304 funding and private funding, for capital improvement projects in and around Utah Lake;
1305 (b) review and identify land use and zoning policies and practices to recommend to
1306 land use policymakers and administrators of adjoining municipalities that are consistent with
1307 and will help to achieve the policies and objectives stated in Subsection (1);
1308 (c) consult and coordinate with other applicable governmental entities to improve and
1309 enhance transportation and other infrastructure and facilities in order to maximize the potential
1310 of Utah Lake to attract, retain, and service users who will help enhance the long-term economic
1311 benefit to the state; and
1312 (d) pursue policies that the board determines are designed to avoid or minimize
1313 negative environmental impacts of management.
1314 (3) The lake authority shall respect:
1315 (a) a permit issued by a governmental entity applicable to Utah Lake;
1316 (b) a governmental entity's easement or other interest affecting Utah Lake;
1317 (c) an agreement between governmental entities, including between a state agency and
1318 the federal government, relating to Utah Lake; and
1319 (d) the public trust doctrine as applicable to land within the lake authority boundary.
1320 (4) (a) The lake authority may use lake authority money to encourage, incentivize,
1321 fund, or require development that:
1322 (i) mitigates noise, air pollution, light pollution, surface and groundwater pollution,
1323 and other negative environmental impacts;
1324 (ii) includes building or project designs that minimize negative impacts to the June
1325 Sucker, avian species, and other wildlife;
1326 (iii) mitigates traffic congestion; or
1327 (iv) uses high efficiency building construction and operation.
1328 (b) In consultation with the municipality in which management is expected to occur
1329 and applicable state agencies, the lake authority shall establish minimum mitigation and
1330 environmental standards for management occurring on land within the lake authority boundary.
1331 Section 16. Section 11-68-201 is amended to read:
1332 11-68-201. State Fair Park Authority -- Legal status -- Powers.
1333 (1) There is created the State Fair Park Authority.
1334 (2) The authority is:
1335 (a) an independent, nonprofit, separate body corporate and politic, with perpetual
1336 succession;
1337 (b) a political subdivision of the state; and
1338 (c) a public corporation, as defined in Section 63E-1-102.
1339 (3) (a) The fair corporation is dissolved and ceases to exist, subject to any winding
1340 down and other actions necessary for a transition to the authority.
1341 (b) The authority:
1342 (i) replaces and is the successor to the fair corporation;
1343 (ii) succeeds to all rights, obligations, privileges, immunities, and assets of the fair
1344 corporation; and
1345 (iii) shall fulfill and perform all contractual and other obligations of the fair
1346 corporation.
1347 (c) The board shall take all actions necessary and appropriate to wind down the affairs
1348 of the fair corporation as quickly as practicable and to make a transition from the fair
1349 corporation to the authority.
1350 (4) The authority shall:
1351 (a) manage, supervise, and control:
1352 (i) all activities relating to the annual exhibition described in Subsection (4)(j); and
1353 (ii) except as otherwise provided by statute, all state expositions, including setting the
1354 time, place, and purpose of any state exposition;
1355 (b) for public entertainment, displays, and exhibits or similar events held at the state
1356 fair park:
1357 (i) provide, sponsor, or arrange the events;
1358 (ii) publicize and promote the events; and
1359 (iii) secure funds to cover the cost of the exhibits from:
1360 (A) private contributions;
1361 (B) public appropriations;
1362 (C) admission charges; and
1363 (D) other lawful means;
1364 (c) acquire and designate exposition sites;
1365 (d) use generally accepted accounting principles in accounting for the authority's assets,
1366 liabilities, and operations;
1367 (e) seek corporate sponsorships for the state fair park or for individual buildings or
1368 facilities on fair park land;
1369 (f) work with county and municipal governments, the Salt Lake Convention and
1370 Visitor's Bureau, the Utah Office of Tourism, and other entities to develop and promote
1371 expositions and the use of fair park land;
1372 (g) develop and maintain a marketing program to promote expositions and the use of
1373 fair park land;
1374 (h) in accordance with provisions of this chapter, operate and maintain state-owned
1375 buildings and facilities on fair park land, including the physical appearance and structural
1376 integrity of those buildings and facilities;
1377 (i) prepare an economic development plan for the fair park land;
1378 (j) hold an annual exhibition on fair park land that:
1379 (i) is called the state fair or a similar name;
1380 (ii) promotes and highlights agriculture throughout the state;
1381 (iii) includes expositions of livestock, poultry, agricultural, domestic science,
1382 horticultural, floricultural, mineral and industrial products, manufactured articles, and domestic
1383 animals that, in the board's opinion, will best stimulate agricultural, industrial, artistic, and
1384 educational pursuits and the sharing of talents among the people of the state;
1385 (iv) includes the award of premiums for the best specimens of the exhibited articles
1386 and animals;
1387 (v) permits competition by livestock exhibited by citizens of other states and territories
1388 of the United States; and
1389 (vi) is arranged according to plans approved by the board;
1390 (k) fix the conditions of entry to the annual exhibition described in Subsection (4)(j);
1391 and
1392 (l) publish a list of premiums that will be awarded at the annual exhibition described in
1393 Subsection (4)(j) for the best specimens of exhibited articles and animals.
1394 (5) In addition to the annual exhibition described in Subsection (4)(j), the authority
1395 may hold other exhibitions of livestock, poultry, agricultural, domestic science, horticultural,
1396 floricultural, mineral and industrial products, manufactured articles, and domestic animals that,
1397 in the corporation's opinion, will best stimulate agricultural, industrial, artistic, and educational
1398 pursuits and the sharing of talents among the people of the state.
1399 (6) The authority may:
1400 (a) employ advisers, consultants, and agents, including financial experts and
1401 independent legal counsel, and fix their compensation;
1402 (b) (i) participate in the state's Risk Management Fund created under Section
1403 63A-4-201 or any captive insurance company created by the risk manager; or
1404 (ii) procure insurance against any loss in connection with the authority's property and
1405 other assets;
1406 (c) receive and accept aid or contributions of money, property, labor, or other things of
1407 value from any source, including any grants or appropriations from any department, agency, or
1408 instrumentality of the United States or the state;
1409 (d) hold, use, loan, grant, and apply that aid and those contributions to carry out the
1410 purposes of the authority, subject to the conditions, if any, upon which the aid and
1411 contributions are made;
1412 (e) enter into management agreements with any person or entity for the performance of
1413 the authority's functions or powers;
1414 (f) establish accounts and procedures that are necessary to budget, receive, disburse,
1415 account for, and audit all funds received, appropriated, or generated;
1416 (g) subject to Subsection (8), lease any of the state-owned buildings or facilities located
1417 on fair park land;
1418 (h) sponsor events as approved by the board;
1419 (i) subject to Subsection (11), acquire any interest in real property that the board
1420 considers necessary or advisable to further a purpose of the authority or facilitate the authority's
1421 fulfillment of a duty under this chapter;
1422 (j) in accordance with Title 11, Chapter 42a, Commercial Property Assessed Clean
1423 Energy Act, provide for or finance an energy efficiency upgrade, a [
1424 system, or electric vehicle charging infrastructure, as those terms are defined in Section
1425 11-42a-102; and
1426 (k) enter into one or more agreements to develop the fair park land.
1427 (7) The authority shall comply with:
1428 (a) Title 51, Chapter 5, Funds Consolidation Act;
1429 (b) Title 51, Chapter 7, State Money Management Act;
1430 (c) Title 52, Chapter 4, Open and Public Meetings Act;
1431 (d) Title 63G, Chapter 2, Government Records Access and Management Act;
1432 (e) the provisions of Section 67-3-12;
1433 (f) Title 63G, Chapter 6a, Utah Procurement Code, except for a procurement for:
1434 (i) entertainment provided at the state fair park;
1435 (ii) judges for competitive exhibits; or
1436 (iii) sponsorship of an event on fair park land; and
1437 (g) the legislative approval requirements for capital development projects established
1438 in Section 63A-5b-404.
1439 (8) (a) Before the authority executes a lease described in Subsection (6)(g) with a term
1440 of 10 or more years, the authority shall:
1441 (i) submit the proposed lease to the division for the division's approval or rejection; and
1442 (ii) if the division approves the proposed lease, submit the proposed lease to the
1443 Executive Appropriations Committee for the Executive Appropriation Committee's review and
1444 recommendation in accordance with Subsection (8)(b).
1445 (b) The Executive Appropriations Committee shall review a proposed lease submitted
1446 in accordance with Subsection (8)(a) and recommend to the authority that the authority:
1447 (i) execute the proposed lease, either as proposed or with changes recommended by the
1448 Executive Appropriations Committee; or
1449 (ii) reject the proposed lease.
1450 (9) (a) Subject to Subsection (9)(b), a department, division, or other instrumentality of
1451 the state and a political subdivision of the state shall cooperate with the authority to the fullest
1452 extent possible to provide whatever support, information, or other assistance the authority
1453 requests that is reasonably necessary to help the authority fulfill the authority's duties and
1454 responsibilities under this chapter.
1455 (b) The division shall provide assistance and resources to the authority as the division
1456 director determines is appropriate.
1457 (10) The authority may share authority revenue with a municipality in which the fair
1458 park land is located, as provided in an agreement between the authority and the municipality, to
1459 pay for municipal services provided by the municipality.
1460 (11) (a) As used in this Subsection (11), "new land" means land that, if acquired by the
1461 authority, would result in the authority having acquired over three acres of land more than the
1462 land described in Subsection 11-68-101(9)(a).
1463 (b) In conjunction with the authority's acquisition of new land, the authority shall enter
1464 an agreement with the municipality in which the new land is located.
1465 (c) To provide funds for the cost of increased municipal services that the municipality
1466 will provide to the new land, an agreement under Subsection (11)(b) shall:
1467 (i) provide for:
1468 (A) the payment of impact fees to the municipality for development activity on the new
1469 land; and
1470 (B) the authority's sharing with the municipality tax revenue generated from the new
1471 land; and
1472 (ii) be structured in a way that recognizes the needs of the authority and furthers mutual
1473 goals of the authority and the municipality.
1474 Section 17. Section 17-27a-401 is amended to read:
1475 17-27a-401. General plan required -- Content -- Resource management plan --
1476 Provisions related to radioactive waste facility.
1477 (1) To accomplish the purposes of this chapter, a county shall prepare and adopt a
1478 comprehensive, long-range general plan:
1479 (a) for present and future needs of the county;
1480 (b) (i) for growth and development of all or any part of the land within the
1481 unincorporated portions of the county; or
1482 (ii) if a county has designated a mountainous planning district, for growth and
1483 development of all or any part of the land within the mountainous planning district; and
1484 (c) as a basis for communicating and coordinating with the federal government on land
1485 and resource management issues.
1486 (2) To promote health, safety, and welfare, the general plan may provide for:
1487 (a) health, general welfare, safety, energy conservation, transportation, prosperity, civic
1488 activities, aesthetics, and recreational, educational, and cultural opportunities;
1489 (b) the reduction of the waste of physical, financial, or human resources that result
1490 from either excessive congestion or excessive scattering of population;
1491 (c) the efficient and economical use, conservation, and production of the supply of:
1492 (i) food and water; and
1493 (ii) drainage, sanitary, and other facilities and resources;
1494 (d) the use of energy conservation and solar and [
1495 (e) the protection of urban development;
1496 (f) the protection and promotion of air quality;
1497 (g) historic preservation;
1498 (h) identifying future uses of land that are likely to require an expansion or significant
1499 modification of services or facilities provided by an affected entity; and
1500 (i) an official map.
1501 (3) (a) (i) The general plan of a specified county, as defined in Section 17-27a-408,
1502 shall include a moderate income housing element that meets the requirements of Subsection
1503 17-27a-403(2)(a)(iii).
1504 (ii) (A) This Subsection (3)(a)(ii) applies to a county that does not qualify as a
1505 specified county as of January 1, 2023.
1506 (B) As of January 1, if a county described in Subsection (3)(a)(ii)(A) changes from one
1507 class to another or grows in population to qualify as a specified county as defined in Section
1508 17-27a-408, the county shall amend the county's general plan to comply with Subsection
1509 (3)(a)(i) on or before August 1 of the first calendar year beginning on January 1 in which the
1510 county qualifies as a specified county.
1511 (iii) A county described in Subsection (3)(a)(ii)(B) shall send a copy of the county's
1512 amended general plan to the association of governments, established pursuant to an interlocal
1513 agreement under Title 11, Chapter 13, Interlocal Cooperation Act, of which the county is a
1514 member.
1515 (b) The general plan shall contain a resource management plan for the public lands, as
1516 defined in Section 63L-6-102, within the county.
1517 (c) The resource management plan described in Subsection (3)(b) shall address:
1518 (i) mining;
1519 (ii) land use;
1520 (iii) livestock and grazing;
1521 (iv) irrigation;
1522 (v) agriculture;
1523 (vi) fire management;
1524 (vii) noxious weeds;
1525 (viii) forest management;
1526 (ix) water rights;
1527 (x) ditches and canals;
1528 (xi) water quality and hydrology;
1529 (xii) flood plains and river terraces;
1530 (xiii) wetlands;
1531 (xiv) riparian areas;
1532 (xv) predator control;
1533 (xvi) wildlife;
1534 (xvii) fisheries;
1535 (xviii) recreation and tourism;
1536 (xix) energy resources;
1537 (xx) mineral resources;
1538 (xxi) cultural, historical, geological, and paleontological resources;
1539 (xxii) wilderness;
1540 (xxiii) wild and scenic rivers;
1541 (xxiv) threatened, endangered, and sensitive species;
1542 (xxv) land access;
1543 (xxvi) law enforcement;
1544 (xxvii) economic considerations; and
1545 (xxviii) air.
1546 (d) For each item listed under Subsection (3)(c), a county's resource management plan
1547 shall:
1548 (i) establish findings pertaining to the item;
1549 (ii) establish defined objectives; and
1550 (iii) outline general policies and guidelines on how the objectives described in
1551 Subsection (3)(d)(ii) are to be accomplished.
1552 (4) (a) (i) The general plan shall include specific provisions related to an area within, or
1553 partially within, the exterior boundaries of the county, or contiguous to the boundaries of a
1554 county, which are proposed for the siting of a storage facility or transfer facility for the
1555 placement of high-level nuclear waste or greater than class C radioactive nuclear waste, as
1556 these wastes are defined in Section 19-3-303.
1557 (ii) The provisions described in Subsection (4)(a)(i) shall address the effects of the
1558 proposed site upon the health and general welfare of citizens of the state, and shall provide:
1559 (A) the information identified in Section 19-3-305;
1560 (B) information supported by credible studies that demonstrates that Subsection
1561 19-3-307(2) has been satisfied; and
1562 (C) specific measures to mitigate the effects of high-level nuclear waste and greater
1563 than class C radioactive waste and guarantee the health and safety of the citizens of the state.
1564 (b) A county may, in lieu of complying with Subsection (4)(a), adopt an ordinance
1565 indicating that all proposals for the siting of a storage facility or transfer facility for the
1566 placement of high-level nuclear waste or greater than class C radioactive waste wholly or
1567 partially within the county are rejected.
1568 (c) A county may adopt the ordinance listed in Subsection (4)(b) at any time.
1569 (d) The county shall send a certified copy of the ordinance described in Subsection
1570 (4)(b) to the executive director of the Department of Environmental Quality by certified mail
1571 within 30 days of enactment.
1572 (e) If a county repeals an ordinance adopted under Subsection (4)(b) the county shall:
1573 (i) comply with Subsection (4)(a) as soon as reasonably possible; and
1574 (ii) send a certified copy of the repeal to the executive director of the Department of
1575 Environmental Quality by certified mail within 30 days after the repeal.
1576 (5) The general plan may define the county's local customs, local culture, and the
1577 components necessary for the county's economic stability.
1578 (6) Subject to Subsection 17-27a-403(2), the county may determine the
1579 comprehensiveness, extent, and format of the general plan.
1580 (7) If a county has designated a mountainous planning district, the general plan for the
1581 mountainous planning district is the controlling plan.
1582 (8) Nothing in this part may be construed to limit the authority of the state to manage
1583 and protect wildlife under Title 23A, Wildlife Resources Act.
1584 (9) On or before December 31, 2025, a county that has a general plan that does not
1585 include a water use and preservation element that complies with Section 17-27a-403 shall
1586 amend the county's general plan to comply with Section 17-27a-403.
1587 Section 18. Section 17-50-335 is amended to read:
1588 17-50-335. Energy efficiency upgrade, clean energy system, or electric vehicle
1589 charging infrastructure.
1590 A county may provide or finance an energy efficiency upgrade, a [
1591 energy system, or electric vehicle charging infrastructure as defined in Section 11-42a-102, in a
1592 designated voluntary assessment area in accordance with Title 11, Chapter 42a, Commercial
1593 Property Assessed Clean Energy Act.
1594 Section 19. Section 17B-1-202 is amended to read:
1595 17B-1-202. Special district may be created -- Services that may be provided --
1596 Limitations.
1597 (1) (a) A special district may be created as provided in this part to provide within its
1598 boundaries service consisting of:
1599 (i) the operation of an airport;
1600 (ii) the operation of a cemetery;
1601 (iii) fire protection, paramedic, and emergency services, including consolidated 911
1602 and emergency dispatch services;
1603 (iv) garbage collection and disposal;
1604 (v) health care, including health department or hospital service;
1605 (vi) the operation of a library;
1606 (vii) abatement or control of mosquitos and other insects;
1607 (viii) the operation of parks or recreation facilities or services;
1608 (ix) the operation of a sewage system;
1609 (x) the construction and maintenance of a right-of-way, including:
1610 (A) a curb;
1611 (B) a gutter;
1612 (C) a sidewalk;
1613 (D) a street;
1614 (E) a road;
1615 (F) a water line;
1616 (G) a sewage line;
1617 (H) a storm drain;
1618 (I) an electricity line;
1619 (J) a communications line;
1620 (K) a natural gas line; or
1621 (L) street lighting;
1622 (xi) transportation, including public transit and providing streets and roads;
1623 (xii) the operation of a system, or one or more components of a system, for the
1624 collection, storage, retention, control, conservation, treatment, supplying, distribution, or
1625 reclamation of water, including storm, flood, sewage, irrigation, and culinary water, whether
1626 the system is operated on a wholesale or retail level or both;
1627 (xiii) in accordance with Subsection (1)(c), the acquisition or assessment of a
1628 groundwater right for the development and execution of a groundwater management plan in
1629 cooperation with and approved by the state engineer in accordance with Section 73-5-15;
1630 (xiv) law enforcement service;
1631 (xv) subject to Subsection (1)(b), the underground installation of an electric utility line
1632 or the conversion to underground of an existing electric utility line;
1633 (xvi) the control or abatement of earth movement or a landslide;
1634 (xvii) the operation of animal control services and facilities; or
1635 (xviii) an energy efficiency upgrade, a [
1636 vehicle charging infrastructure as defined in Section 11-42a-102, in accordance with Title 11,
1637 Chapter 42a, Commercial Property Assessed Clean Energy Act.
1638 (b) Each special district that provides the service of the underground installation of an
1639 electric utility line or the conversion to underground of an existing electric utility line shall, in
1640 installing or converting the line, provide advance notice to and coordinate with the utility that
1641 owns the line.
1642 (c) A groundwater management plan described in Subsection (1)(a)(xiii) may include
1643 the banking of groundwater rights by a special district in a critical management area as defined
1644 in Section 73-5-15 following the adoption of a groundwater management plan by the state
1645 engineer under Section 73-5-15.
1646 (i) A special district may manage the groundwater rights it acquires under Subsection
1647 17B-1-103(2)(a) or (b) consistent with the provisions of a groundwater management plan
1648 described in this Subsection (1)(c).
1649 (ii) A groundwater right held by a special district to satisfy the provisions of a
1650 groundwater management plan is not subject to the forfeiture provisions of Section 73-1-4.
1651 (iii) (A) A special district may divest itself of a groundwater right subject to a
1652 determination that the groundwater right is not required to facilitate the groundwater
1653 management plan described in this Subsection (1)(c).
1654 (B) The groundwater right described in Subsection (1)(c)(iii)(A) is subject to Section
1655 73-1-4 beginning on the date of divestiture.
1656 (iv) Upon a determination by the state engineer that an area is no longer a critical
1657 management area as defined in Section 73-5-15, a groundwater right held by the special district
1658 is subject to Section 73-1-4.
1659 (v) A special district created in accordance with Subsection (1)(a)(xiii) to develop and
1660 execute a groundwater management plan may hold or acquire a right to surface waters that are
1661 naturally tributary to the groundwater basin subject to the groundwater management plan if the
1662 surface waters are appropriated in accordance with Title 73, Water and Irrigation, and used in
1663 accordance with Title 73, Chapter 3b, Groundwater Recharge and Recovery Act.
1664 (2) As used in this section:
1665 (a) "Operation" means all activities involved in providing the indicated service
1666 including acquisition and ownership of property reasonably necessary to provide the indicated
1667 service and acquisition, construction, and maintenance of facilities and equipment reasonably
1668 necessary to provide the indicated service.
1669 (b) "System" means the aggregate of interrelated components that combine together to
1670 provide the indicated service including, for a sewage system, collection and treatment.
1671 (3) (a) A special district may not be created to provide and may not after its creation
1672 provide more than four of the services listed in Subsection (1).
1673 (b) Subsection (3)(a) may not be construed to prohibit a special district from providing
1674 more than four services if, before April 30, 2007, the special district was authorized to provide
1675 those services.
1676 (4) (a) Except as provided in Subsection (4)(b), a special district may not be created to
1677 provide and may not after its creation provide to an area the same service that may already be
1678 provided to that area by another political subdivision, unless the other political subdivision
1679 gives its written consent.
1680 (b) For purposes of Subsection (4)(a), a special district does not provide the same
1681 service as another political subdivision if it operates a component of a system that is different
1682 from a component operated by another political subdivision but within the same:
1683 (i) sewage system; or
1684 (ii) water system.
1685 (5) (a) Except for a special district in the creation of which an election is not required
1686 under Subsection 17B-1-214(3)(d), the area of a special district may include all or part of the
1687 unincorporated area of one or more counties and all or part of one or more municipalities.
1688 (b) The area of a special district need not be contiguous.
1689 (6) For a special district created before May 5, 2008, the authority to provide fire
1690 protection service also includes the authority to provide:
1691 (a) paramedic service; and
1692 (b) emergency service, including hazardous materials response service.
1693 (7) A special district created before May 11, 2010, authorized to provide the
1694 construction and maintenance of curb, gutter, or sidewalk may provide a service described in
1695 Subsection (1)(a)(x) on or after May 11, 2010.
1696 (8) A special district created before May 10, 2011, authorized to provide culinary,
1697 irrigation, sewage, or storm water services may provide a service described in Subsection
1698 (1)(a)(xii) on or after May 10, 2011.
1699 (9) A special district may not be created under this chapter for two years after the date
1700 on which a special district is dissolved as provided in Section 17B-1-217 if the special district
1701 proposed for creation:
1702 (a) provides the same or a substantially similar service as the dissolved special district;
1703 and
1704 (b) is located in substantially the same area as the dissolved special district.
1705 Section 20. Section 17D-1-201 is amended to read:
1706 17D-1-201. Services that a special service district may be created to provide.
1707 As provided in this part, a county or municipality may create a special service district to
1708 provide any combination of the following services:
1709 (1) water;
1710 (2) sewerage;
1711 (3) drainage;
1712 (4) flood control;
1713 (5) garbage collection and disposal;
1714 (6) health care;
1715 (7) transportation, including the receipt of federal secure rural school funds under
1716 Section 51-9-603 for the purposes of constructing, improving, repairing, or maintaining public
1717 roads;
1718 (8) recreation;
1719 (9) fire protection, including:
1720 (a) emergency medical services, ambulance services, and search and rescue services, if
1721 fire protection service is also provided;
1722 (b) Firewise Communities programs and the development of community wildfire
1723 protection plans; and
1724 (c) the receipt of federal secure rural school funds as provided under Section 51-9-603
1725 for the purposes of carrying out Firewise Communities programs, developing community
1726 wildfire protection plans, and performing emergency services, including firefighting on federal
1727 land and other services authorized under this Subsection (9);
1728 (10) providing, operating, and maintaining correctional and rehabilitative facilities and
1729 programs for municipal, state, and other detainees and prisoners;
1730 (11) street lighting;
1731 (12) consolidated 911 and emergency dispatch;
1732 (13) animal shelter and control;
1733 (14) receiving federal mineral lease funds under Title 59, Chapter 21, Mineral Lease
1734 Funds, and expending those funds to be used in accordance with state and federal law;
1735 (15) in a county of the first class, extended police protection;
1736 (16) control or abatement of earth movement or a landslide;
1737 (17) an energy efficiency upgrade, a [
1738 vehicle charging infrastructure as defined in Section 11-42a-102, in accordance with Title 11,
1739 Chapter 42a, Commercial Property Assessed Clean Energy Act; or
1740 (18) cemetery.
1741 Section 21. Section 54-17-502 is amended to read:
1742 54-17-502. Clean energy source -- Solicitation -- Consultant.
1743 (1) Sections 54-17-102 through 54-17-404 do not apply to a significant energy resource
1744 that is a [
1745 capacity of the [
1746 applicable, the quantity of capacity that is the subject of a contract for the purchase of
1747 electricity from a [
1748 (2) (a) (i) An affected electrical utility shall issue a public solicitation of bids for a
1749 [
1750 which it reasonably anticipates that it will need to acquire or commence construction of a
1751 [
1752 (ii) A solicitation for a [
1753 up to 99 megawatts satisfies the requirement of this Subsection (2) for the year 2008 if:
1754 (A) not later than 30 days after the day on which this section takes effect, the affected
1755 electrical utility amends the solicitation or initiates a new solicitation to seek bids for
1756 [
1757 (B) within 60 days after the day on which this section takes effect and as soon as
1758 practicable, the commission retains a consultant in accordance with Subsection (3).
1759 (b) A consultant hired under Subsection (2)(a)(ii)(B) shall perform the consultant's
1760 duties under Subsection (3) in relation to the status of the solicitation process at the time the
1761 consultant is retained and may not unreasonably delay the solicitation process.
1762 (c) For a solicitation issued after January 31, 2008:
1763 (i) the affected electrical utility shall develop a reasonable process for pre-approval of
1764 bidders; and
1765 (ii) in addition to publicly issuing the solicitation in Subsection (2)(a)(i), the affected
1766 electrical utility shall send copies of the solicitation to each potential bidder who is
1767 pre-approved.
1768 (d) The affected electrical utility shall evaluate in good faith each bid that is received
1769 and negotiate in good faith with each bidder whose bid appears to be cost effective, as defined
1770 in Section 54-17-602.
1771 (e) Beginning on August 1, 2008, and on each August 1 thereafter, the affected
1772 electrical utility shall file a notice with the commission indicating whether it reasonably
1773 anticipates that it will need to acquire or commence construction of a [
1774 resource during the following year.
1775 (3) (a) If the commission receives a notice under Subsection (2)(e) that the affected
1776 electrical utility reasonably anticipates that it will need to acquire or commence construction of
1777 a [
1778 retain a consultant to:
1779 (i) validate that the affected electrical utility is following the bidder pre-approval
1780 process developed pursuant to Subsection (2)(c) and make recommendations for changes to the
1781 pre-approval process for future solicitations;
1782 (ii) monitor and document all material aspects of the bids, bid evaluations, and bid
1783 negotiations between the affected electrical utility and any bidders in the solicitation process;
1784 (iii) maintain adequate documentation of each bid, including the solicitation,
1785 evaluation, and negotiation processes and the reason for the conclusion of negotiations, which
1786 documentation shall be transmitted to the commission at the conclusion of all negotiations in
1787 the solicitation; and
1788 (iv) be available to testify under oath before the commission in any relevant proceeding
1789 concerning all aspects of the public solicitation process.
1790 (b) The commission and the consultant shall use all reasonable efforts to not delay the
1791 solicitation process.
1792 (4) Documentation provided to the commission by the consultant shall be available to
1793 the affected electrical utility, any bidder, or other interested person under terms and conditions
1794 and at times determined appropriate by the commission.
1795 (5) (a) The commission and the consultant shall execute a contract approved by the
1796 commission with terms and conditions approved by the commission.
1797 (b) Unless otherwise provided by contract, an invoice for the consultant's services shall
1798 be sent to the Division of Public Utilities for review and approval.
1799 (c) After approval under Subsection (5)(b), the invoice shall be forwarded to the
1800 affected electrical utility for payment to the consultant.
1801 (d) The affected electrical utility may, in a general rate case or other appropriate
1802 commission proceeding, include, and the commission shall allow, recovery by the affected
1803 electrical utility of any amount paid by the affected electrical utility for the consultant.
1804 (6) (a) Nothing in this section precludes an affected electrical utility from constructing
1805 or acquiring any [
1806 provided for in this section, including purchasing electricity from any [
1807 source project that chooses to self-certify as a qualifying facility under the federal Public Utility
1808 Regulatory Policies Act of 1978.
1809 (b) An affected electrical utility that constructs a [
1810 outside the solicitation process of this section or Section 54-17-201 shall file a notice with the
1811 commission at least 60 days before the date of commencement of construction, indicating the
1812 size and location of the [
1813 (c) The date of commencement of construction under Subsection (6)(b) is the date of
1814 any directive from an affected electrical utility to the person responsible for the construction of
1815 the [
1816 construction.
1817 (d) For an affected electrical utility whose rates are regulated by the commission, the
1818 utility has the burden of proving in a rate case or other appropriate commission proceeding the
1819 prudence, reasonableness, and cost-effectiveness of construction under this Subsection (6),
1820 including the method used to evaluate the risks and value of any bid submitted in the
1821 solicitation under this section.
1822 (7) Nothing in this section requires an affected electrical utility to enter into any
1823 transaction that it reasonably believes is not cost effective or otherwise is not in the public
1824 interest.
1825 Section 22. Section 54-17-601 is amended to read:
1826 54-17-601. Definitions.
1827 As used in this part:
1828 (1) "Adjusted retail electric sales" means the total kilowatt-hours of retail electric sales
1829 of an electrical corporation to customers in this state in a calendar year, reduced by:
1830 (a) the amount of those kilowatt-hours attributable to electricity generated or purchased
1831 in that calendar year from qualifying zero carbon emissions generation and qualifying carbon
1832 sequestration generation;
1833 (b) the amount of those kilowatt-hours attributable to electricity generated or purchased
1834 in that calendar year from generation located within the geographic boundary of the Western
1835 Electricity Coordinating Council that derives its energy from one or more of the following but
1836 that does not satisfy the definition of a [
1837 not been used to satisfy Subsection 54-17-602(1):
1838 (i) wind energy;
1839 (ii) solar photovoltaic and solar thermal energy;
1840 (iii) wave, tidal, and ocean thermal energy;
1841 (iv) except for combustion of wood that has been treated with chemical preservatives
1842 such as creosote, pentachlorophenol or chromated copper arsenate, biomass and biomass
1843 byproducts, including:
1844 (A) organic waste;
1845 (B) forest or rangeland woody debris from harvesting or thinning conducted to improve
1846 forest or rangeland ecological health and to reduce wildfire risk;
1847 (C) agricultural residues;
1848 (D) dedicated energy crops; and
1849 (E) landfill gas or biogas produced from organic matter, wastewater, anaerobic
1850 digesters, or municipal solid waste;
1851 (v) geothermal energy;
1852 (vi) hydroelectric energy; or
1853 (vii) waste gas and waste heat capture or recovery; and
1854 (c) the number of kilowatt-hours attributable to reductions in retail sales in that
1855 calendar year from demand side management as defined in Section 54-7-12.8, with the
1856 kilowatt-hours for an electrical corporation whose rates are regulated by the commission and
1857 adjusted by the commission to exclude kilowatt-hours for which a renewable energy certificate
1858 is issued under Subsection 54-17-603(4)(b).
1859 (2) "Amount of kilowatt-hours attributable to electricity generated or purchased in that
1860 calendar year from qualifying carbon sequestration generation," for qualifying carbon
1861 sequestration generation, means the kilowatt-hours supplied by a facility during the calendar
1862 year multiplied by the ratio of the amount of carbon dioxide captured from the facility and
1863 sequestered to the sum of the amount of carbon dioxide captured from the facility and
1864 sequestered plus the amount of carbon dioxide emitted from the facility during the same
1865 calendar year.
1866 (3) "Banked renewable energy certificate" means a bundled or unbundled renewable
1867 energy certificate that is:
1868 (a) not used in a calendar year to comply with this part or with a renewable energy
1869 program in another state; and
1870 (b) carried forward into a subsequent year.
1871 (4) "Bundled renewable energy certificate" means a renewable energy certificate for
1872 qualifying electricity that is acquired:
1873 (a) by an electrical corporation by a trade, purchase, or other transfer of electricity that
1874 includes the renewable energy attributes of, or certificate that is issued for, the electricity; or
1875 (b) by an electrical corporation by generating the electricity for which the renewable
1876 energy certificate is issued.
1877 (5) "Clean energy source" means:
1878 (a) an electric generation facility or generation capability or upgrade that becomes
1879 operational on or after January 1, 1995, that derives its energy from one or more of the
1880 following:
1881 (i) wind energy;
1882 (ii) solar photovoltaic and solar thermal energy;
1883 (iii) wave, tidal, and ocean thermal energy;
1884 (iv) except for combustion of wood that has been treated with chemical preservatives
1885 such as creosote, pentachlorophenol or chromated copper arsenate, biomass and biomass
1886 byproducts, including:
1887 (A) organic waste;
1888 (B) forest or rangeland woody debris from harvesting or thinning conducted to improve
1889 forest or rangeland ecological health and to reduce wildfire risk;
1890 (C) agricultural residues;
1891 (D) dedicated energy crops; and
1892 (E) landfill gas or biogas produced from organic matter, wastewater, anaerobic
1893 digesters, or municipal solid waste;
1894 (v) geothermal energy located outside the state;
1895 (vi) waste gas and waste heat capture or recovery, including methane gas from:
1896 (A) an abandoned coal mine; or
1897 (B) a coal degassing operation associated with a state-approved mine permit;
1898 (vii) efficiency upgrades to a hydroelectric facility, without regard to the date upon
1899 which the facility became operational, if the upgrades become operational on or after January
1900 1, 1995;
1901 (viii) compressed air, if:
1902 (A) the compressed air is taken from compressed air energy storage; and
1903 (B) the energy used to compress the air is a clean energy source;
1904 (ix) municipal solid waste; or
1905 (x) energy derived from nuclear fuel;
1906 (b) any of the following:
1907 (i) up to 50 average megawatts of electricity per year per electrical corporation from a
1908 certified low-impact hydroelectric facility, without regard to the date upon which the facility
1909 becomes operational, if the facility is certified as a low-impact hydroelectric facility on or after
1910 January 1, 1995, by a national certification organization;
1911 (ii) geothermal energy if located within the state, without regard to the date upon which
1912 the facility becomes operational; or
1913 (iii) hydroelectric energy if located within the state, without regard to the date upon
1914 which the facility becomes operational;
1915 (c) hydrogen gas derived from any source of energy described in Subsection (5)(a) or
1916 (b);
1917 (d) if an electric generation facility employs multiple energy sources, that portion of the
1918 electricity generated that is attributable to energy sources described in Subsections (5)(a)
1919 through (c); and
1920 (e) any of the following located in the state and owned by a user of energy:
1921 (i) a demand side management measure, as defined by Subsection 54-7-12.8(1), with
1922 the quantity of renewable energy certificates to which the user is entitled determined by the
1923 equivalent energy saved by the measure;
1924 (ii) a solar thermal system that reduces the consumption of fossil fuels, with the
1925 quantity of renewable energy certificates to which the user is entitled determined by the
1926 equivalent kilowatt-hours saved, except to the extent the commission determines otherwise
1927 with respect to net-metered energy;
1928 (iii) a solar photovoltaic system that reduces the consumption of fossil fuels with the
1929 quantity of renewable energy certificates to which the user is entitled determined by the total
1930 production of the system, except to the extent the commission determines otherwise with
1931 respect to net-metered energy;
1932 (iv) a hydroelectric or geothermal facility with the quantity of renewable energy
1933 certificates to which the user is entitled determined by the total production of the facility,
1934 except to the extent the commission determines otherwise with respect to net-metered energy;
1935 (v) a waste gas or waste heat capture or recovery system, other than from a combined
1936 cycle combustion turbine that does not use waste gas or waste heat, with the quantity of
1937 renewable energy certificates to which the user is entitled determined by the total production of
1938 the system, except to the extent the commission determines otherwise with respect to
1939 net-metered energy; and
1940 (vi) the station use of solar thermal energy, solar photovoltaic energy, hydroelectric
1941 energy, geothermal energy, waste gas, or waste heat capture and recovery.
1942 [
1943 (a) is as defined in Section 54-2-1; and
1944 (b) does not include a person generating electricity that is not for sale to the public.
1945 [
1946 facility located within the geographic boundary of the Western Electricity Coordinating
1947 Council that:
1948 (a) becomes operational or is retrofitted on or after January 1, 2008; and
1949 (b) reduces carbon dioxide emissions into the atmosphere through permanent
1950 geological sequestration or through another verifiably permanent reduction in carbon dioxide
1951 emissions through the use of technology.
1952 [
1953 1995, from a [
1954 (a) (i) the renewable energy source is located within the geographic boundary of the
1955 Western Electricity Coordinating Council; or
1956 (ii) the qualifying electricity is delivered to the transmission system of an electrical
1957 corporation or a delivery point designated by the electrical corporation for the purpose of
1958 subsequent delivery to the electrical corporation; and
1959 (b) the renewable energy attributes of the electricity are not traded, sold, transferred, or
1960 otherwise used to satisfy another state's renewable energy program.
1961 [
1962 (a) means a generation facility located within the geographic boundary of the Western
1963 Electricity Coordinating Council that:
1964 (i) becomes operational on or after January 1, 2008; and
1965 (ii) does not produce carbon as a byproduct of the generation process;
1966 (b) includes generation powered by nuclear fuel; and
1967 (c) does not include renewable energy sources used to satisfy the requirement
1968 established under Subsection 54-17-602(1).
1969 [
1970 54-17-603.
1971 [
1972 [
1973
1974
1975 [
1976 [
1977 [
1978 [
1979
1980
1981 [
1982 [
1983
1984 [
1985 [
1986 [
1987
1988 [
1989 [
1990
1991 [
1992 [
1993 [
1994
1995
1996 [
1997 [
1998 [
1999 [
2000 [
2001 [
2002
2003
2004
2005 [
2006
2007 [
2008
2009 [
2010
2011 [
2012
2013
2014 [
2015 [
2016
2017
2018 [
2019
2020
2021
2022 [
2023
2024
2025
2026 [
2027
2028
2029 [
2030
2031
2032
2033
2034 [
2035
2036 (11) "Unbundled renewable energy certificate" means a renewable energy certificate
2037 associated with:
2038 (a) qualifying electricity that is acquired by an electrical corporation or other person by
2039 trade, purchase, or other transfer without acquiring the electricity for which the certificate was
2040 issued; or
2041 (b) activities listed in Subsection [
2042 Section 23. Section 54-17-602 is amended to read:
2043 54-17-602. Target amount of qualifying electricity -- Renewable energy certificate
2044 -- Cost-effectiveness -- Cooperatives.
2045 (1) (a) To the extent that it is cost effective to do so, beginning in 2025 the annual retail
2046 electric sales in this state of each electrical corporation shall consist of qualifying electricity or
2047 renewable energy certificates in an amount equal to at least 20% of adjusted retail electric
2048 sales.
2049 (b) The amount under Subsection (1)(a) is computed based upon adjusted retail electric
2050 sales for the calendar year commencing 36 months before the first day of the year for which the
2051 target calculated under Subsection (1)(a) applies.
2052 (c) Notwithstanding Subsections (1)(a) and (b), an increase in the annual target from
2053 one year to the next may not exceed the greater of:
2054 (i) 17,500 megawatt-hours; or
2055 (ii) 20% of the prior year's amount under Subsections (1)(a) and (b).
2056 (2) (a) Cost-effectiveness under Subsection (1) for other than a cooperative association
2057 is determined in comparison to other viable resource options using the criteria provided by
2058 Subsection 54-17-201(2)(c)(ii).
2059 (b) For an electrical corporation that is a cooperative association, cost-effectiveness is
2060 determined using criteria applicable to the cooperative association's acquisition of a significant
2061 energy resource established by the cooperative association's board of directors.
2062 (3) This section does not require an electrical corporation to:
2063 (a) substitute qualifying electricity for electricity from a generation source owned or
2064 contractually committed, or from a contractual commitment for a power purchase;
2065 (b) enter into any additional electric sales commitment or any other arrangement for the
2066 sale or other disposition of electricity that is not already, or would not be, entered into by the
2067 electrical corporation; or
2068 (c) acquire qualifying electricity in excess of its adjusted retail electric sales.
2069 (4) For the purpose of Subsection (1), an electrical corporation may combine the
2070 following:
2071 (a) qualifying electricity from a renewable energy source owned by the electrical
2072 corporation;
2073 (b) qualifying electricity acquired by the electrical corporation through trade, power
2074 purchase, or other transfer; and
2075 (c) a bundled or unbundled renewable energy certificate, including a banked renewable
2076 energy certificate.
2077 (5) For an electrical corporation whose rates the commission regulates, the following
2078 rules concerning renewable energy certificates apply:
2079 (a) a banked renewable energy certificate with an older issuance date shall be used
2080 before any other banked renewable energy certificate issued at a later date is used; and
2081 (b) the total of all unbundled renewable energy certificates, including unbundled
2082 banked renewable energy certificates, may not exceed 20% of the amount of the annual target
2083 provided for in Subsection (1).
2084 (6) An electrical corporation that is a cooperative association may count towards
2085 Subsection (1) any of the following:
2086 (a) electric production allocated to this state from hydroelectric facilities becoming
2087 operational after December 31, 2007, if the facilities are located in any state in which the
2088 cooperative association, or a generation and transmission cooperative with which the
2089 cooperative association has a contract, provides electric service;
2090 (b) qualifying electricity generated or acquired or renewable energy certificates
2091 acquired for a program that permits a retail customer to voluntarily contribute to a [
2092 clean energy source; and
2093 (c) notwithstanding Subsection 54-17-601(7), an unbundled renewable energy
2094 certificate purchased from a renewable energy source located outside the geographic boundary
2095 of the Western Electricity Coordinating Council if the electricity on which the unbundled
2096 renewable energy certificate is based would be considered qualifying electricity if the
2097 renewable energy source was located within the geographic boundary of the Western
2098 Electricity Coordinating Council.
2099 (7) The use of the renewable attributes associated with qualifying electricity to satisfy
2100 any federal renewable energy requirement does not preclude the electricity from being
2101 qualifying electricity for the purpose of this chapter.
2102 Section 24. Section 54-17-604 is amended to read:
2103 54-17-604. Plans and reports.
2104 (1) An electrical corporation shall develop and maintain a plan for implementing
2105 Subsection 54-17-602(1), consistent with the cost-effectiveness criteria of Subsection
2106 54-17-201(2)(c)(ii).
2107 (2) (a) A progress report concerning a plan under Subsection (1) for other than a
2108 cooperative association shall be filed with the commission by January 1 of each of the years
2109 2010, 2015, 2020, and 2024.
2110 (b) For an electrical corporation that is a cooperative association, a progress report
2111 shall be filed with the cooperative association's board of directors by January 1 of each of the
2112 years 2010, 2015, 2020, and 2024.
2113 (3) The progress report under Subsection (2) shall contain:
2114 (a) the actual and projected amount of qualifying electricity through 2025;
2115 (b) the source of qualifying electricity;
2116 (c) (i) an analysis of the cost-effectiveness of [
2117 other than a cooperative association; or
2118 (ii) an estimate of the cost of achieving the target for an electrical corporation that is a
2119 cooperative association;
2120 (d) a discussion of conditions impacting the [
2121 qualifying electricity markets;
2122 (e) any recommendation for a suggested legislative or program change; and
2123 (f) for other than a cooperative association, any other information requested by the
2124 commission or considered relevant by the electrical corporation.
2125 (4) The plan and progress report required by Subsections (1) and (2) may include
2126 procedures that will be used by the electrical corporation to identify and select any [
2127 clean energy resource and qualifying electricity that satisfy the criteria of Subsection
2128 54-17-201(2)(c)(ii).
2129 (5) By July 1, 2026, each electrical corporation shall file a final progress report
2130 demonstrating:
2131 (a) how Subsection 54-17-602(1) is satisfied for the year 2025; or
2132 (b) the reason why Subsection 54-17-602(1) is not satisfied for the year 2025, if it is
2133 not satisfied.
2134 (6) By January 1 of each of the years 2011, 2016, 2021, and 2025, the Division of
2135 Public Utilities shall submit to the Legislature a report containing a summary of any progress
2136 report filed under Subsections (2) through (5).
2137 (7) The summary required by Subsection (6) shall include any recommendation for
2138 legislative changes.
2139 (8) (a) By July 1, 2027, the commission shall submit to the Legislature a report
2140 summarizing the final progress reports and recommending any legislative changes.
2141 (b) The 2027 summary may contain a recommendation to the Legislature concerning
2142 any action to be taken with respect to an electrical corporation that does not satisfy Subsection
2143 54-17-602(1) for 2025.
2144 (c) The commission shall provide an opportunity for public comment and take
2145 evidence before recommending any action to be taken with respect to an electrical corporation
2146 that does not satisfy Subsection 54-17-602(1) for 2025.
2147 (9) If a recommendation containing a penalty for failure to satisfy Subsection
2148 54-17-602(1) is made under Subsection (8), the proposal shall require that any amount paid by
2149 an electrical corporation as a penalty be utilized to fund demand-side management for the retail
2150 customers of the electrical corporation paying the penalty.
2151 (10) A penalty may not be proposed under this section if an electrical corporation's
2152 failure to satisfy Subsection 54-17-602(1) is due to:
2153 (a) a lack of cost-effective means to satisfy the requirement; or
2154 (b) force majeure.
2155 (11) By July 1, 2026, an electrical corporation that is a cooperative association shall
2156 file a final progress report demonstrating:
2157 (a) how Subsection 54-17-602(1) is satisfied for the year 2025; or
2158 (b) the reason why Subsection 54-17-602(1) is not satisfied for the year 2025 if it is not
2159 satisfied.
2160 (12) The plan and any progress report file under this section by an electrical
2161 corporation that is cooperative association shall be publicly available at the cooperative
2162 association's office or posted on the cooperative association's website.
2163 Section 25. Section 54-17-605 is amended to read:
2164 54-17-605. Recovery of costs for clean energy activities.
2165 (1) In accordance with other law, the commission shall include in the retail electric
2166 rates of an electrical corporation whose rates the commission regulates the state's share of any
2167 of the costs listed in Subsection (2) that are relevant to the proceeding in which the commission
2168 is considering the electrical corporation's rates:
2169 (a) if the costs are prudently incurred by the electrical corporation in connection with:
2170 (i) the acquisition of a renewable energy certificate;
2171 (ii) the acquisition of qualifying electricity for which a renewable energy certificate
2172 will be issued after the acquisition; and
2173 (iii) the acquisition, construction, and use of a [
2174 (b) to the extent any qualifying electricity or [
2175 Subsection (1)(a) satisfies the cost-effectiveness criteria of Subsection 54-17-201(2)(c)(ii).
2176 (2) The following are costs that may be recoverable under Subsection (1):
2177 (a) a cost of siting, acquisition of property rights, equipment, design, licensing,
2178 permitting, construction, owning, operating, or otherwise acquiring a [
2179 source and any associated asset, including transmission;
2180 (b) a cost to acquire qualifying electricity through trade, power purchase, or other
2181 transfer;
2182 (c) a cost to acquire a bundled or unbundled renewable energy certificate, if any net
2183 revenue from the sale of a renewable energy certificate allocable to this state is also included in
2184 rates;
2185 (d) a cost to interconnect a [
2186 corporation's transmission and distribution system;
2187 (e) a cost associated with using a physical or financial asset to integrate, firm, or shape
2188 a [
2189 (f) any cost associated with transmission and delivery of qualifying electricity to a
2190 retail electricity consumer.
2191 (3) (a) The commission may allow an electrical corporation to use an adjustment
2192 mechanism or reasonable method other than a rate case under Sections 54-4-4 and 54-7-12 to
2193 allow recovery of costs identified in Subsection (2).
2194 (b) If the commission allows the use of an adjustment mechanism, both the costs and
2195 any associated benefit shall be reflected in the mechanism, to the extent practicable.
2196 (c) This Subsection (3) creates no presumption for or against the use of an adjustment
2197 mechanism.
2198 (4) (a) The commission may permit an electrical corporation to include in its retail
2199 electric rates the state's share of costs prudently incurred by the electrical corporation in
2200 connection with a [
2201 energy source ultimately becomes operational, including costs of:
2202 (i) siting;
2203 (ii) property acquisition;
2204 (iii) equipment;
2205 (iv) design;
2206 (v) licensing;
2207 (vi) permitting; and
2208 (vii) other reasonable items related to the [
2209 (b) Subsection (4)(a) creates no presumption concerning the prudence or recoverability
2210 of the costs identified.
2211 (c) To the extent deferral is consistent with other applicable law, the commission may
2212 allow an electrical corporation to defer costs recoverable under Subsection (4)(a) until the
2213 recovery of the deferred costs can be considered in a rate proceeding or an adjustment
2214 mechanism created under Subsection (3).
2215 (d) An application to defer costs shall be filed within 60 days after the day on which
2216 the electrical corporation determines that the [
2217 impaired under generally accepted accounting principles and will not become operational.
2218 (e) Notwithstanding the opportunity to defer costs under Subsection (4)(c), a cost
2219 incurred by an electrical corporation for siting, property acquisition, equipment, design,
2220 licensing, and permitting of a [
2221 proposes to construct shall be included in the electrical corporation's project costs for the
2222 purpose of evaluating the project's cost-effectiveness.
2223 (f) A deferred cost under Subsection (4)(a) may not be added to, or otherwise
2224 considered in the evaluation of, the cost of a project proposed by any person other than the
2225 electrical corporation for the purpose of evaluating that person's proposal.
2226 Section 26. Section 54-17-801 is amended to read:
2227 54-17-801. Definitions.
2228 As used in this part:
2229 (1) "Clean energy contract" means a contract under this part for the delivery of
2230 electricity from one or more clean energy facilities to a contract customer requiring the use of a
2231 qualified utility's transmission or distribution system to deliver the electricity from a clean
2232 energy facility to the contract customer.
2233 (2) (a) "Clean energy facility" means a clean energy source as defined in Section
2234 54-17-601 that:
2235 (i) is located in the state; or
2236 (ii) (A) is located outside the state; and
2237 (B) provides energy from baseload clean resources.
2238 (b) "Clean energy facility" does not include an electric generating facility for which the
2239 electric generating facility's costs are included in a qualified utility's rates as a facility that
2240 provides electric service to the qualified utility's system.
2241 (3) "Clean energy tariff" means a tariff offered by a qualified utility that allows the
2242 qualified utility to procure clean generation on behalf of and to serve its customers.
2243 (4) "Contract customer" means a person who executes or will execute a [
2244 clean energy contract with a qualified utility.
2245 [
2246 retail customers in the state.
2247 [
2248
2249
2250
2251 [
2252
2253 [
2254 [
2255 [
2256 [
2257
2258
2259 [
2260
2261 Section 27. Section 54-17-802 is amended to read:
2262 54-17-802. Contracts for the purchase of electricity from a clean energy facility.
2263 (1) Within a reasonable time after receiving a request from a contract customer and
2264 subject to reasonable credit requirements, a qualified utility shall enter into a [
2265 energy contract with the requesting contract customer to supply some or all of the contract
2266 customer's electric service from one or more [
2267 contract customer.
2268 (2) Subject to a contract customer agreeing to pay the qualified utility for all
2269 incremental costs associated with metering facilities, communication facilities, and
2270 administration, a [
2271 to a contract customer:
2272 (a) from one [
2273 delivery location;
2274 (b) from multiple [
2275 metered delivery location; or
2276 (c) from one or more [
2277 multiple metered delivery locations.
2278 (3) (a) A single contract customer may aggregate multiple metered delivery locations to
2279 satisfy the minimum megawatt limit under Subsection (4).
2280 (b) Multiple contract customers may not aggregate their separate metered delivery
2281 locations to satisfy the minimum megawatt limit under Subsection (4).
2282 (4) The amount of electricity provided to a contract customer under a [
2283 energy contract may not be less than 2.0 megawatts.
2284 (5) The amount of electricity provided in any hour to a contract customer under a
2285 [
2286 kilowatt-hour load in that hour at the metered delivery locations under the contract.
2287 (6) A [
2288 may provide for one or more increases in the amount of electricity to be provided under the
2289 contract even though the amount of electricity to be provided by the increase is less than the
2290 minimum amount required under Subsection (4).
2291 (7) The total amount of electricity to be generated by [
2292 facilities and delivered to contract customers at any one time under all [
2293 energy contracts may not exceed 300 megawatts, unless the commission approves in advance a
2294 higher amount.
2295 (8) Electricity generated by a [
2296 contract customer under a [
2297 metering program under Chapter 15, Net Metering of Electricity.
2298 Section 28. Section 54-17-803 is amended to read:
2299 54-17-803. Ownership of a clean energy facility -- Joint ownership -- Ownership
2300 of environmental attributes.
2301 (1) A [
2302 (a) by a person who will be a contract customer receiving electricity from the
2303 [
2304 (b) by a qualified utility;
2305 (c) by a person other than a contract customer or qualified utility; or
2306 (d) jointly by any combination of Subsections (1)(a), (b), and (c), whether in equal
2307 shares or otherwise.
2308 (2) A qualified utility may be a joint owner of a [
2309 if:
2310 (a) the qualified utility consents to being a joint owner; and
2311 (b) the joint ownership agreement requires the qualified utility to recover from contract
2312 customers receiving electricity from the [
2313 utility's costs associated with its ownership of the [
2314 administrative, acquisition, operation, and maintenance costs, unless the commission, in an
2315 order issued in a separate regulatory proceeding:
2316 (i) authorizes the qualified utility to recover some of those costs from customers other
2317 than contract customers;
2318 (ii) determines that the rate to be paid for electricity from the [
2319 facility by customers other than contract customers is cost effective; and
2320 (iii) approves the inclusion of the rate determined under Subsection (2)(b)(ii) in general
2321 rates or through a commission approved cost recovery mechanism.
2322 (3) To the extent that any electricity from a [
2323 delivered to a contract customer is owned by a person other than the contract customer:
2324 (a) the qualified utility shall, by contract with the owner of the electricity to be sold
2325 from the [
2326 contract customers;
2327 (b) the qualified utility shall sell that electricity to the contract customer or customers
2328 under [
2329 between the qualified utility and the owner of the electricity to be sold from the [
2330 clean energy facility; and
2331 (c) the qualified utility's contract with the owner of the electricity to be sold from the
2332 [
2333 electricity under that contract ceases if the contract customer defaults in its obligation to
2334 purchase and pay for the electricity under the contract with the qualified utility.
2335 (4) The right to any environmental attribute associated with a [
2336 facility shall remain the property of the [
2337 extent that a contract to which the owner is a party provides otherwise.
2338 Section 29. Section 54-17-804 is amended to read:
2339 54-17-804. Exemption from certificate of convenience and necessity
2340 requirements.
2341 (1) A qualified utility is not required to comply with Section 54-4-25 with respect to a
2342 [
2343 (a) each contract necessary for the commission to determine compliance with this part
2344 is filed with the commission; and
2345 (b) the commission determines that each contract relating to the [
2346 energy facility complies with this part.
2347 (2) In making its determination under Subsection (1)(b), the commission may process
2348 and consider together multiple [
2349 customer and the qualified utility providing for the delivery of electricity from a [
2350 clean energy facility to the contract customer's multiple metered delivery locations.
2351 Section 30. Section 54-17-805 is amended to read:
2352 54-17-805. Costs associated with delivering electricity from a clean energy facility
2353 to a contract customer.
2354 (1) To the extent that a [
2355 electricity from a [
2356 [
2357 qualified utility's transmission or distribution facilities at the qualified utility's applicable rates,
2358 which may include transmission costs at the qualified utility's applicable rate approved by the
2359 Federal Energy Regulatory Commission.
2360 (2) To the extent that a [
2361 electricity from a [
2362 utility or the contract customer, the [
2363 customer to bear all reasonably identifiable costs that the qualified utility incurs in delivering
2364 the electricity from the [
2365 costs to procure and deliver electricity and for billing, administrative, and related activities, as
2366 determined by the commission.
2367 (3) A qualified utility that enters a [
2368 contract customer for all metered electric service delivered to the contract customer, including
2369 generation, transmission, and distribution service, at the qualified utility's applicable tariff
2370 rates, excluding:
2371 (a) any kilowatt hours of electricity delivered from the [
2372 facility, based on the time of delivery, adjusted for transmission losses;
2373 (b) any kilowatts of electricity delivered from the [
2374 coincide with the contract customer's monthly metered kilowatt demand measurement, adjusted
2375 for transmission losses;
2376 (c) any transmission and distribution service that the contract customer pays for under
2377 Subsection (1) or (2); and
2378 (d) any transmission service that the contract customer provides under Subsection (2)
2379 to deliver generation from the [
2380 Section 31. Section 54-17-806 is amended to read:
2381 54-17-806. Qualified utility clean energy tariff.
2382 (1) The commission may authorize a qualified utility to implement a [
2383 energy tariff in accordance with this section if the commission determines the tariff that the
2384 qualified utility proposes is reasonable and in the public interest.
2385 (2) The commission may authorize a tariff under Subsection (1) to apply to:
2386 (a) a qualified utility customer with an aggregated electrical load of at least five
2387 megawatts; or
2388 (b) a combination of qualified utility customers who are separately metered if:
2389 (i) the aggregated electrical load of the qualified utility customers is at least five
2390 megawatts; and
2391 (ii) each of the qualified utility customers is located within a project area, as defined in
2392 Section 11-58-102.
2393 (3) A customer who agrees to take service that is subject to the [
2394 energy tariff under this section shall pay:
2395 (a) the customer's normal tariff rate;
2396 (b) an incremental charge in an amount equal to the difference between the cost to the
2397 qualified utility to supply [
2398 customer and the qualified utility's avoided costs as defined in Subsection 54-2-1(1), or a
2399 different methodology recommended by the qualified utility; and
2400 (c) an administrative fee in an amount approved by the commission.
2401 (4) The commission shall allow a qualified utility to recover the qualified utility's
2402 prudently incurred cost of [
2403 established in this section that is not otherwise recovered from the proceeds of the tariff paid by
2404 customers agreeing to service that is subject to the [
2405 Section 32. Section 54-17-807 is amended to read:
2406 54-17-807. Solar photovoltaic or thermal solar energy facilities.
2407 (1) As used in this section, "acquire" means to purchase, construct, or purchase the
2408 output from a photovoltaic or thermal solar energy resource.
2409 (2) (a) In accordance with this section, a qualified utility may file an application with
2410 the commission for approval to acquire a photovoltaic or thermal solar energy resource using
2411 rate recovery based on a competitive market price, except as provided in Subsection (2)(b).
2412 (b) A qualified utility may not, under this section, acquire a photovoltaic or thermal
2413 solar energy resource with a generating capacity that is two megawatts or less per meter if that
2414 resource is located on the customer's side of the meter.
2415 (3) The energy resource acquired pursuant to this section may be owned solely or
2416 jointly by a qualified utility or another entity:
2417 (a) to provide [
2418 54-17-803;
2419 (b) to serve energy to a qualified utility customer as provided in Section 54-17-806;
2420 (c) to serve energy to any customers of the qualified utility if the proposed energy
2421 resource's nameplate capacity does not exceed 300 megawatts or, if applicable, the quantity of
2422 capacity that is the subject of a contract for the purchase of electricity does not exceed 300
2423 megawatts, so long as the qualified utility proceeds under and complies with Part 4, Voluntary
2424 Request for Resource Decision Review; or
2425 (d) to serve energy to any customers of the qualified utility if the proposed energy
2426 resource's nameplate capacity exceeds 300 megawatts or, if applicable, the quantity of capacity
2427 that is the subject of a contract for the purchase of electricity exceeds 300 megawatts, so long
2428 as the qualified utility complies with this chapter.
2429 (4) Except as provided in Subsections (3)(c) and (d), the following do not apply to an
2430 application submitted under Subsection (2):
2431 (a) Part 1, General Provisions;
2432 (b) Part 2, Solicitation Process;
2433 (c) Part 3, Resource Plans and Significant Energy Resource Approval;
2434 (d) Part 4, Voluntary Request for Resource Decision Review; and
2435 (e) Section 54-17-502.
2436 (5) The application described in Subsection (2) shall include:
2437 (a) a proposed solicitation process for the energy resource;
2438 (b) the criteria proposed to be used to evaluate the responses to the solicitation:
2439 (i) as determined by the customer, if the energy resource is sought to serve a customer
2440 pursuant to Subsection (3)(a) or (b); or
2441 (ii) as proposed by the qualified utility, if the energy resource is sought to serve the
2442 customers of the qualified utility pursuant to Subsection (3)(c) or (d); and
2443 (c) any other information the commission may require.
2444 (6) (a) Before approving a solicitation process under this section for an energy resource
2445 to serve customers of the qualified utility pursuant to Subsection (3)(c) or (d), the commission
2446 shall:
2447 (i) hold a public hearing; and
2448 (ii) provide an opportunity for public comment.
2449 (b) The commission may approve a solicitation process under this section only if the
2450 commission determines that the solicitation and evaluation processes to be used will create a
2451 level playing field in which the qualified utility and other bidders can compete fairly, including
2452 with respect to interconnection and transmission requirements imposed on bidders by the
2453 solicitation within the control of the commission and the qualified utility, excluding its
2454 federally regulated transmission function, and will otherwise serve the public interest.
2455 (7) (a) Upon completion of the solicitation process approved under Subsection (6), the
2456 qualified utility may seek approval from the commission to acquire the energy resource
2457 identified through the solicitation process as the winning bid.
2458 (b) Before approving acquisition of an energy resource acquired pursuant to this
2459 section, the commission shall:
2460 (i) hold a public hearing;
2461 (ii) provide an opportunity for public comment;
2462 (iii) determine whether the solicitation and evaluation processes complied with this
2463 section, commission rules, and the commission's order approving the solicitation process; and
2464 (iv) determine whether the acquisition of the energy resource is just and reasonable,
2465 and in the public interest.
2466 (c) The commission may approve a qualified utility's ownership of an energy resource
2467 or a power purchase agreement containing a purchase option under Subsection (3)(c) or (d)
2468 with rate recovery based on a competitive market price only if the commission determines that
2469 the qualified utility's bid is the lowest cost ownership option for the qualified utility.
2470 (d) If the commission approves a qualified utility's acquisition of an energy resource
2471 under Subsection (3), including entering into a power purchase agreement containing a
2472 purchase option, using rate recovery based on a competitive market price:
2473 (i) the prices approved by the commission shall constitute competitive market prices
2474 for purposes of this section; and
2475 (ii) assets owned by the qualified utility and used to provide service as approved under
2476 this section are not public utility property.
2477 (8) If upon completion of a solicitation process approved under Subsection (6) the
2478 qualified utility proposes not to acquire an energy resource, the qualified utility shall file with
2479 the commission a report explaining its reasons for not acquiring the lowest cost resource bid
2480 into the solicitation, along with any other information the commission requires.
2481 (9) Within six months after a competitive market price for a solar energy resource
2482 acquired under Subsection (3)(c) or (d) has been identified pursuant to this section, or for such
2483 longer period as the commission may determine to be in the public interest, a qualified utility
2484 may file an application with the commission seeking approval to acquire another energy
2485 resource similar to the energy resource for which a competitive market price was established
2486 without going through a new solicitation process. The commission may approve the application
2487 if the qualified utility demonstrates a need to acquire the energy resource, that the competitive
2488 market price remains reasonable, and that the acquisition is in the public interest.
2489 (10) No later than 180 days before the end of the term approved by the commission for
2490 an energy resource acquired under this section and owned by the qualified utility, the qualified
2491 utility shall file with the commission a request for determination of an appropriate disposition
2492 of the energy resource asset, except that the qualified utility is permitted to retain the benefits
2493 or proceeds and shall be required to assume the costs and risks of ownership of the energy
2494 resource.
2495 (11) The commission shall adopt rules, in accordance with Title 63G, Chapter 3, Utah
2496 Administrative Rulemaking Act:
2497 (a) addressing the content and filing of an application under this section;
2498 (b) to establish the solicitation process and criteria to be used to identify the
2499 competitive market price and select an energy resource; and
2500 (c) addressing other factors determined by the commission to be relevant to protect the
2501 public interest and to implement this section.
2502 Section 33. Section 54-17-901 is amended to read:
2503 54-17-901. Community Clean Energy Act.
2504 This part is known as the "Community [
2505 Section 34. Section 54-17-902 is amended to read:
2506 54-17-902. Definitions.
2507 As used in this part:
2508 (1) (a) "Auxiliary services" means those services necessary to safely and reliably:
2509 (i) interconnect and transmit electric power from any [
2510 resource constructed or acquired for a community [
2511 (ii) integrate and supplement electric power from any [
2512 resource.
2513 (b) "Auxiliary services" shall include applicable Federal Energy Regulatory
2514 Commission requirements governing transmission and interconnection services.
2515 (2) "Clean electric energy supply" means incremental clean energy resources that are
2516 developed to meet the equivalent of the annual electric energy consumption of participating
2517 customers within a participating community.
2518 (3) "Clean energy resource" means:
2519 (a) electric energy generated by a source that is naturally replenished and includes one
2520 or more of the following:
2521 (i) wind;
2522 (ii) solar photovoltaic or thermal solar technology;
2523 (iii) a geothermal resource; or
2524 (iv) a hydroelectric plant including a pumped storage hydropower facility;
2525 (b) use of an energy efficient and sustainable technology the commission has approved
2526 for implementation that:
2527 (i) increases efficient energy usage;
2528 (ii) is capable of being used for demand response;
2529 (iii) facilitates the use and development of clean generation resources through electrical
2530 grid management or energy storage; or
2531 (iv) uses carbon capture utilization and sequestration; or
2532 (c) energy derived from nuclear fuel.
2533 [
2534 54-1-1.
2535 [
2536 by the commission under Section 54-17-904 that allows a qualified utility to provide electric
2537 service from one or more [
2538 a participating community.
2539 [
2540 [
2541 [
2542 community [
2543 commission by rule made pursuant to Section 54-17-909, during which a participating
2544 customer may elect to leave the program without penalty.
2545 (b) "Initial opt-out period" may not be shorter than three typical billing cycles of the
2546 qualified utility.
2547 [
2548 [
2549 54-10a-101.
2550 [
2551 distribution facilities, retail services, and generation assets that are not replaced assets.
2552 [
2553 (a) whose residents are served by a qualified utility; and
2554 (b) the municipality or county meets the requirements in Section 54-17-903.
2555 [
2556 (a) a customer of a qualified utility located within the boundary of a municipality or
2557 county where a community [
2558 commission; and
2559 (b) the customer has not exercised the right to not participate in the community
2560 [
2561 [
2562 54-17-801.
2563 [
2564
2565
2566 [
2567 [
2568
2569 [
2570 [
2571 [
2572 [
2573 [
2574
2575 [
2576 [
2577 [
2578
2579 (15) "Replaced asset" means an existing thermal energy resource:
2580 (a) that was built or acquired, in whole or in part, by a qualified utility to serve the
2581 qualified utility's customers, including customers within a participating community;
2582 (b) that was built or acquired prior to commission approval and the effective date of the
2583 community [
2584 (c) to the extent the asset is no longer used to serve participating customers.
2585 Section 35. Section 54-17-903 is amended to read:
2586 54-17-903. Program requirement for a municipality or county.
2587 (1) (a) As used in this section, "renewable energy resource" means the same as the term
2588 "clean energy resource" is defined in Section 54-17-902.
2589 (b) Customers of a qualified utility may be served by the community [
2590 energy program described in this part if the municipality or county satisfies the requirements of
2591 Subsection (2).
2592 (2) The municipality or county in which the customer resides shall:
2593 (a) adopt a resolution no later than December 31, 2019, that states a goal of achieving
2594 an amount equivalent to 100% of the annual electric energy supply for participating customers
2595 from a renewable energy resource by 2030;
2596 (b) enter into an agreement with a qualified utility:
2597 (i) with the stipulation of payment by the municipality or county to the qualified utility
2598 for the costs of:
2599 (A) third-party expertise contracted for by the division and the office, for assistance
2600 with activities associated with initial approval of the community [
2601 program; and
2602 (B) providing notice to the municipality's or county's customers as provided in Section
2603 54-17-905;
2604 (ii) determining the obligation for the payment of any termination charges under
2605 Subsection 54-17-905(3) that are not paid by a participating customer and not included in
2606 participating customer rates under Subsections 54-17-904(2) and (4); and
2607 (iii) identifying any initially proposed replaced asset;
2608 (c) adopt a local ordinance that:
2609 (i) establishes participation in the [
2610 (ii) is consistent with the terms of the agreement entered into with the qualified utility
2611 under Subsection (2)(b); and
2612 (d) comply with any other terms or conditions required by the commission.
2613 (3) The local ordinance required in Subsection (2)(c) shall be adopted by the
2614 municipality or county within 90 days after the date of the commission order approving the
2615 community [
2616 Section 36. Section 54-17-904 is amended to read:
2617 54-17-904. Authority of commission to approve a community clean energy
2618 program.
2619 (1) After the commission has adopted administrative rules as required under Section
2620 54-17-909, a qualified utility may file an application with the commission for approval of a
2621 community [
2622 (2) The application shall include:
2623 (a) the names of each municipality and county to be served by the community
2624 [
2625 (b) a map of the geographic boundaries of each municipality and county;
2626 (c) the number of customers served by the qualified utility within those boundaries;
2627 (d) projected rates for participating customers that take into account:
2628 (i) the estimated number of customers expected to participate in the program;
2629 (ii) the quantifiable costs and benefits to the qualified utility and all of the qualified
2630 utility's customers in their capacity as ratepayers of the qualified utility, excluding costs or
2631 benefits that do not directly affect the qualified utility, including as applicable:
2632 (A) replaced assets;
2633 (B) auxiliary services; and
2634 (C) new [
2635 clean energy program; and
2636 (iii) the ongoing costs at the time of the application;
2637 (e) the agreement entered into with the qualified utility under Section 54-17-903;
2638 (f) a proposed plan established by the participating community addressing low-income
2639 programs and assistance;
2640 (g) a proposed solicitation process for the acquisition of [
2641 resources as provided in Section 54-17-908; and
2642 (h) any other information the commission may require by rule.
2643 (3) The commission may approve an application for a community [
2644 energy program if the commission finds:
2645 (a) the application meets all of the requirements in this section and administrative rules
2646 adopted by the commission in accordance with Sections 54-17-908 and 54-17-909 to
2647 implement this part; and
2648 (b) the community [
2649 (4) The rates approved by the commission for participating customers:
2650 (a) shall be based on the factors included in Subsection (2)(d) and any other factor
2651 determined by the commission to be in the public interest;
2652 (b) may not result in any shift of costs or benefits to any nonparticipating customer, or
2653 any other customer of the qualified utility beyond the participating community boundaries; and
2654 (c) shall take into account any quantifiable benefits to the qualified utility, and the
2655 qualified utility's customers, including participating customers in their capacity as ratepayers of
2656 the qualified utility, excluding costs or benefits that do not directly affect the qualified utility's
2657 costs of service.
2658 (5) (a) Each municipality or county included in the application shall be a party to the
2659 regulatory proceeding.
2660 (b) A municipality or county identified in the application shall provide information to
2661 all relevant parties in accordance with the commission's rules for discovery, notwithstanding
2662 Title 63G, Chapter 2, Government Records Access and Management Act.
2663 (6) The community [
2664 after the municipality or county adopts the ordinance required in Section 54-17-903.
2665 Section 37. Section 54-17-905 is amended to read:
2666 54-17-905. Customer participation -- Election not to participate.
2667 (1) (a) After commission approval of a community [
2668 and adoption of the ordinance by the participating community as required in Section
2669 54-17-903, a qualified utility shall provide notice to each of its customers within the
2670 participating community that includes:
2671 (i) the projected rates and terms of participation in the community [
2672 energy program approved by the commission;
2673 (ii) an estimated comparison to otherwise applicable existing rates;
2674 (iii) an explanation that the customer may elect to not participate in the community
2675 [
2676 (iv) any other information required by the commission.
2677 (b) The qualified utility shall provide the notice required under Subsection (1)(a) to
2678 each customer:
2679 (i) no less than twice within the period of 60 days immediately preceding the date
2680 required to opt out of the community [
2681 (ii) separately from the customer's monthly billing.
2682 (c) The qualified utility shall provide the information required under Subsection (1)(a)
2683 in person to each customer with an electric load of one megawatt or greater measured at a
2684 single meter.
2685 (2) (a) An existing customer of the qualified utility may elect to not participate in the
2686 community [
2687 giving notice to the qualified utility in the manner and within the time period determined by the
2688 commission.
2689 (b) After implementation of the community [
2690 (i) a customer that previously elected not to participate in the program may become a
2691 participating customer as allowed by commission rules and by giving notice to the qualified
2692 utility in the manner required by the commission; and
2693 (ii) a customer of the qualified utility that begins taking electric service within a
2694 participating community after the date of implementation of the community [
2695 energy program shall:
2696 (A) be given notice as determined by the commission; and
2697 (B) shall become a participating customer unless the person elects not to participate by
2698 giving notice to the qualified utility in the manner and within the time period determined by the
2699 commission.
2700 (3) (a) A customer that does not opt out of the community [
2701 program under Subsection (2) may later discontinue participation in the community
2702 [
2703 (3)(b) or (c).
2704 (b) (i) During the initial opt-out period, a participating customer may elect to leave the
2705 program by giving notice to the qualified utility in the manner determined by the commission.
2706 (ii) A participating customer that opts out as described in Subsection (3)(b)(i) is not
2707 subject to a termination charge.
2708 (c) After the community [
2709 participating customer may elect to leave the program by:
2710 (i) giving notice to the qualified utility in the manner determined by the commission;
2711 and
2712 (ii) paying a termination charge as determined by the commission that may include the
2713 cost of [
2714 [
2715 necessary to prevent shifting costs to other customers of the qualified utility.
2716 (4) (a) A customer of a qualified utility that is annexed into the boundaries of a
2717 participating community after the effective date of the community [
2718 program shall be given notice as provided in Subsection (1) advising the customer of the option
2719 to opt out of the program.
2720 (b) A participating customer located in a portion of a county that is annexed into a
2721 municipality that is not a participating community shall continue to be included in the
2722 [
2723 (c) If a participating customer is annexed into a municipality that provides electric
2724 service to the municipality's residents:
2725 (i) the customer may continue to be served by the qualified utility under the community
2726 [
2727 municipality under Section 54-3-30; or
2728 (ii) the municipality shall pay the termination charge for each participating customer
2729 that is no longer served by the qualified utility.
2730 (5) A residential customer that is participating in the net metering program under Title
2731 54, Chapter 15, Net Metering of Electricity, may not be a participating customer under this
2732 part.
2733 (6) (a) The cost of providing notice under Subsection (1) shall be paid by the
2734 participating communities.
2735 (b) All other notices required under this section shall be paid for as program costs and
2736 recovered through participating customers' rates.
2737 Section 38. Section 54-17-906 is amended to read:
2738 54-17-906. Customer billing.
2739 The qualified utility shall:
2740 (1) include information on its monthly bills to participating customers identifying the
2741 community [
2742 (2) provide notice to participating customers of any change in rate for participation in
2743 the community [
2744 Section 39. Section 54-17-908 is amended to read:
2745 54-17-908. Acquisition of clean energy resources.
2746 (1) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
2747 commission shall make rules outlining a competitive solicitation process for the acquisition of
2748 [
2749 (2) The solicitation rules shall include the following provisions:
2750 (a) solar photovoltaic or thermal solar energy facilities may be acquired under the
2751 provisions of Section 54-17-807;
2752 (b) [
2753 or acquired subject to an option by the qualified utility to own the [
2754 resource so long as including the option in a solicitation is in the interest of participating
2755 customers and other customers of the qualified utility; and
2756 (c) any other requirement determined by the commission to be in the public interest.
2757 (3) Upon completion of a solicitation under this section and the rules adopted by the
2758 commission to implement this section, the commission may approve cost recovery for a
2759 [
2760 approval of the [
2761 (a) complies with the provisions of this part;
2762 (b) does not result in shifting of costs or benefits to other customers of the qualified
2763 utility; and
2764 (c) is in the public interest.
2765 Section 40. Section 59-2-102 is amended to read:
2766 59-2-102. Definitions.
2767 As used in this chapter:
2768 (1) (a) "Acquisition cost" means any cost required to put an item of tangible personal
2769 property into service.
2770 (b) "Acquisition cost" includes:
2771 (i) the purchase price of a new or used item;
2772 (ii) the cost of freight, shipping, loading at origin, unloading at destination, crating,
2773 skidding, or any other applicable cost of shipping;
2774 (iii) the cost of installation, engineering, rigging, erection, or assembly, including
2775 foundations, pilings, utility connections, or similar costs; and
2776 (iv) sales and use taxes.
2777 (2) "Aerial applicator" means aircraft or rotorcraft used exclusively for the purpose of
2778 engaging in dispensing activities directly affecting agriculture or horticulture with an
2779 airworthiness certificate from the Federal Aviation Administration certifying the aircraft or
2780 rotorcraft's use for agricultural and pest control purposes.
2781 (3) "Air charter service" means an air carrier operation that requires the customer to
2782 hire an entire aircraft rather than book passage in whatever capacity is available on a scheduled
2783 trip.
2784 (4) "Air contract service" means an air carrier operation available only to customers
2785 that engage the services of the carrier through a contractual agreement and excess capacity on
2786 any trip and is not available to the public at large.
2787 (5) "Aircraft" means the same as that term is defined in Section 72-10-102.
2788 (6) (a) Except as provided in Subsection (6)(b), "airline" means an air carrier that:
2789 (i) operates:
2790 (A) on an interstate route; and
2791 (B) on a scheduled basis; and
2792 (ii) offers to fly one or more passengers or cargo on the basis of available capacity on a
2793 regularly scheduled route.
2794 (b) "Airline" does not include an:
2795 (i) air charter service; or
2796 (ii) air contract service.
2797 (7) "Assessment roll" or "assessment book" means a permanent record of the
2798 assessment of property as assessed by the county assessor and the commission and may be
2799 maintained manually or as a computerized file as a consolidated record or as multiple records
2800 by type, classification, or categories.
2801 (8) "Base parcel" means a parcel of property that was legally:
2802 (a) subdivided into two or more lots, parcels, or other divisions of land; or
2803 (b) (i) combined with one or more other parcels of property; and
2804 (ii) subdivided into two or more lots, parcels, or other divisions of land.
2805 (9) (a) "Certified revenue levy" means a property tax levy that provides an amount of
2806 ad valorem property tax revenue equal to the sum of:
2807 (i) the amount of ad valorem property tax revenue to be generated statewide in the
2808 previous year from imposing a multicounty assessing and collecting levy, as specified in
2809 Section 59-2-1602; and
2810 (ii) the product of:
2811 (A) eligible new growth, as defined in Section 59-2-924; and
2812 (B) the multicounty assessing and collecting levy certified by the commission for the
2813 previous year.
2814 (b) For purposes of this Subsection (9), "ad valorem property tax revenue" does not
2815 include property tax revenue received by a taxing entity from personal property that is:
2816 (i) assessed by a county assessor in accordance with Part 3, County Assessment; and
2817 (ii) semiconductor manufacturing equipment.
2818 (c) For purposes of calculating the certified revenue levy described in this Subsection
2819 (9), the commission shall use:
2820 (i) the taxable value of real property assessed by a county assessor contained on the
2821 assessment roll;
2822 (ii) the taxable value of real and personal property assessed by the commission; and
2823 (iii) the taxable year end value of personal property assessed by a county assessor
2824 contained on the prior year's assessment roll.
2825 (10) "County-assessed commercial vehicle" means:
2826 (a) any commercial vehicle, trailer, or semitrailer that is not apportioned under Section
2827 41-1a-301 and is not operated interstate to transport the vehicle owner's goods or property in
2828 furtherance of the owner's commercial enterprise;
2829 (b) any passenger vehicle owned by a business and used by its employees for
2830 transportation as a company car or vanpool vehicle; and
2831 (c) vehicles that are:
2832 (i) especially constructed for towing or wrecking, and that are not otherwise used to
2833 transport goods, merchandise, or people for compensation;
2834 (ii) used or licensed as taxicabs or limousines;
2835 (iii) used as rental passenger cars, travel trailers, or motor homes;
2836 (iv) used or licensed in this state for use as ambulances or hearses;
2837 (v) especially designed and used for garbage and rubbish collection; or
2838 (vi) used exclusively to transport students or their instructors to or from any private,
2839 public, or religious school or school activities.
2840 (11) "Eligible judgment" means a final and unappealable judgment or order under
2841 Section 59-2-1330:
2842 (a) that became a final and unappealable judgment or order no more than 14 months
2843 before the day on which the notice described in Section 59-2-919.1 is required to be provided;
2844 and
2845 (b) for which a taxing entity's share of the final and unappealable judgment or order is
2846 greater than or equal to the lesser of:
2847 (i) $5,000; or
2848 (ii) 2.5% of the total ad valorem property taxes collected by the taxing entity in the
2849 previous fiscal year.
2850 (12) (a) "Escaped property" means any property, whether personal, land, or any
2851 improvements to the property, that is subject to taxation and is:
2852 (i) inadvertently omitted from the tax rolls, assigned to the incorrect parcel, or assessed
2853 to the wrong taxpayer by the assessing authority;
2854 (ii) undervalued or omitted from the tax rolls because of the failure of the taxpayer to
2855 comply with the reporting requirements of this chapter; or
2856 (iii) undervalued because of errors made by the assessing authority based upon
2857 incomplete or erroneous information furnished by the taxpayer.
2858 (b) "Escaped property" does not include property that is undervalued because of the use
2859 of a different valuation methodology or because of a different application of the same valuation
2860 methodology.
2861 (13) (a) "Fair market value" means the amount at which property would change hands
2862 between a willing buyer and a willing seller, neither being under any compulsion to buy or sell
2863 and both having reasonable knowledge of the relevant facts.
2864 (b) For purposes of taxation, "fair market value" shall be determined using the current
2865 zoning laws applicable to the property in question, except in cases where there is a reasonable
2866 probability of a change in the zoning laws affecting that property in the tax year in question and
2867 the change would have an appreciable influence upon the value.
2868 (14) "Geothermal fluid" means water in any form at temperatures greater than 120
2869 degrees centigrade naturally present in a geothermal system.
2870 (15) "Geothermal resource" means:
2871 (a) the natural heat of the earth at temperatures greater than 120 degrees centigrade;
2872 and
2873 (b) the energy, in whatever form, including pressure, present in, resulting from, created
2874 by, or which may be extracted from that natural heat, directly or through a material medium.
2875 (16) (a) "Goodwill" means:
2876 (i) acquired goodwill that is reported as goodwill on the books and records that a
2877 taxpayer maintains for financial reporting purposes; or
2878 (ii) the ability of a business to:
2879 (A) generate income that exceeds a normal rate of return on assets and that results from
2880 a factor described in Subsection (16)(b); or
2881 (B) obtain an economic or competitive advantage resulting from a factor described in
2882 Subsection (16)(b).
2883 (b) The following factors apply to Subsection (16)(a)(ii):
2884 (i) superior management skills;
2885 (ii) reputation;
2886 (iii) customer relationships;
2887 (iv) patronage; or
2888 (v) a factor similar to Subsections (16)(b)(i) through (iv).
2889 (c) "Goodwill" does not include:
2890 (i) the intangible property described in Subsection (19)(a) or (b);
2891 (ii) locational attributes of real property, including:
2892 (A) zoning;
2893 (B) location;
2894 (C) view;
2895 (D) a geographic feature;
2896 (E) an easement;
2897 (F) a covenant;
2898 (G) proximity to raw materials;
2899 (H) the condition of surrounding property; or
2900 (I) proximity to markets;
2901 (iii) value attributable to the identification of an improvement to real property,
2902 including:
2903 (A) reputation of the designer, builder, or architect of the improvement;
2904 (B) a name given to, or associated with, the improvement; or
2905 (C) the historic significance of an improvement; or
2906 (iv) the enhancement or assemblage value specifically attributable to the interrelation
2907 of the existing tangible property in place working together as a unit.
2908 (17) "Governing body" means:
2909 (a) for a county, city, or town, the legislative body of the county, city, or town;
2910 (b) for a special district under Title 17B, Limited Purpose Local Government Entities -
2911 Special Districts, the special district's board of trustees;
2912 (c) for a school district, the local board of education;
2913 (d) for a special service district under Title 17D, Chapter 1, Special Service District
2914 Act:
2915 (i) the legislative body of the county or municipality that created the special service
2916 district, to the extent that the county or municipal legislative body has not delegated authority
2917 to an administrative control board established under Section 17D-1-301; or
2918 (ii) the administrative control board, to the extent that the county or municipal
2919 legislative body has delegated authority to an administrative control board established under
2920 Section 17D-1-301; or
2921 (e) for a public infrastructure district under Title 17D, Chapter 4, Public Infrastructure
2922 District Act, the public infrastructure district's board of trustees.
2923 (18) (a) Except as provided in Subsection (18)(c), "improvement" means a building,
2924 structure, fixture, fence, or other item that is permanently attached to land, regardless of
2925 whether the title has been acquired to the land, if:
2926 (i) (A) attachment to land is essential to the operation or use of the item; and
2927 (B) the manner of attachment to land suggests that the item will remain attached to the
2928 land in the same place over the useful life of the item; or
2929 (ii) removal of the item would:
2930 (A) cause substantial damage to the item; or
2931 (B) require substantial alteration or repair of a structure to which the item is attached.
2932 (b) "Improvement" includes:
2933 (i) an accessory to an item described in Subsection (18)(a) if the accessory is:
2934 (A) essential to the operation of the item described in Subsection (18)(a); and
2935 (B) installed solely to serve the operation of the item described in Subsection (18)(a);
2936 and
2937 (ii) an item described in Subsection (18)(a) that is temporarily detached from the land
2938 for repairs and remains located on the land.
2939 (c) "Improvement" does not include:
2940 (i) an item considered to be personal property pursuant to rules made in accordance
2941 with Section 59-2-107;
2942 (ii) a moveable item that is attached to land for stability only or for an obvious
2943 temporary purpose;
2944 (iii) (A) manufacturing equipment and machinery; or
2945 (B) essential accessories to manufacturing equipment and machinery;
2946 (iv) an item attached to the land in a manner that facilitates removal without substantial
2947 damage to the land or the item; or
2948 (v) a transportable factory-built housing unit as defined in Section 59-2-1502 if that
2949 transportable factory-built housing unit is considered to be personal property under Section
2950 59-2-1503.
2951 (19) "Intangible property" means:
2952 (a) property that is capable of private ownership separate from tangible property,
2953 including:
2954 (i) money;
2955 (ii) credits;
2956 (iii) bonds;
2957 (iv) stocks;
2958 (v) representative property;
2959 (vi) franchises;
2960 (vii) licenses;
2961 (viii) trade names;
2962 (ix) copyrights; and
2963 (x) patents;
2964 (b) a low-income housing tax credit;
2965 (c) goodwill; or
2966 (d) a clean or renewable energy tax credit or incentive, including:
2967 (i) a federal renewable energy production tax credit under Section 45, Internal Revenue
2968 Code;
2969 (ii) a federal energy credit for qualified renewable electricity production facilities under
2970 Section 48, Internal Revenue Code;
2971 (iii) a federal grant for a renewable energy property under American Recovery and
2972 Reinvestment Act of 2009, Pub. L. No. 111-5, Section 1603; and
2973 (iv) a tax credit under Subsection 59-7-614(5).
2974 (20) "Livestock" means:
2975 (a) a domestic animal;
2976 (b) a fish;
2977 (c) a fur-bearing animal;
2978 (d) a honeybee; or
2979 (e) poultry.
2980 (21) "Low-income housing tax credit" means:
2981 (a) a federal low-income housing tax credit under Section 42, Internal Revenue Code;
2982 or
2983 (b) a low-income housing tax credit under Section 59-7-607 or Section 59-10-1010.
2984 (22) "Metalliferous minerals" includes gold, silver, copper, lead, zinc, and uranium.
2985 (23) "Mine" means a natural deposit of either metalliferous or nonmetalliferous
2986 valuable mineral.
2987 (24) "Mining" means the process of producing, extracting, leaching, evaporating, or
2988 otherwise removing a mineral from a mine.
2989 (25) (a) "Mobile flight equipment" means tangible personal property that is owned or
2990 operated by an air charter service, air contract service, or airline and:
2991 (i) is capable of flight or is attached to an aircraft that is capable of flight; or
2992 (ii) is contained in an aircraft that is capable of flight if the tangible personal property
2993 is intended to be used:
2994 (A) during multiple flights;
2995 (B) during a takeoff, flight, or landing; and
2996 (C) as a service provided by an air charter service, air contract service, or airline.
2997 (b) (i) "Mobile flight equipment" does not include a spare part other than a spare
2998 engine that is rotated at regular intervals with an engine that is attached to the aircraft.
2999 (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
3000 commission may make rules defining the term "regular intervals."
3001 (26) "Nonmetalliferous minerals" includes, but is not limited to, oil, gas, coal, salts,
3002 sand, rock, gravel, and all carboniferous materials.
3003 (27) "Part-year residential property" means property that is not residential property on
3004 January 1 of a calendar year but becomes residential property after January 1 of the calendar
3005 year.
3006 (28) "Personal property" includes:
3007 (a) every class of property as defined in Subsection (29) that is the subject of
3008 ownership and is not real estate or an improvement;
3009 (b) any pipe laid in or affixed to land whether or not the ownership of the pipe is
3010 separate from the ownership of the underlying land, even if the pipe meets the definition of an
3011 improvement;
3012 (c) bridges and ferries;
3013 (d) livestock; and
3014 (e) outdoor advertising structures as defined in Section 72-7-502.
3015 (29) (a) "Property" means property that is subject to assessment and taxation according
3016 to its value.
3017 (b) "Property" does not include intangible property as defined in this section.
3018 (30) (a) "Public utility" means:
3019 (i) the operating property of a railroad, gas corporation, oil or gas transportation or
3020 pipeline company, coal slurry pipeline company, electrical corporation, sewerage corporation,
3021 or heat corporation where the company performs the service for, or delivers the commodity to,
3022 the public generally or companies serving the public generally, or in the case of a gas
3023 corporation or an electrical corporation, where the gas or electricity is sold or furnished to any
3024 member or consumers within the state for domestic, commercial, or industrial use; and
3025 (ii) the operating property of any entity or person defined under Section 54-2-1 except
3026 water corporations.
3027 (b) "Public utility" does not include the operating property of a telecommunications
3028 service provider.
3029 (31) (a) Subject to Subsection (31)(b), "qualifying exempt primary residential rental
3030 personal property" means household furnishings, furniture, and equipment that:
3031 (i) are used exclusively within a dwelling unit that is the primary residence of a tenant;
3032 (ii) are owned by the owner of the dwelling unit that is the primary residence of a
3033 tenant; and
3034 (iii) after applying the residential exemption described in Section 59-2-103, are exempt
3035 from taxation under this chapter in accordance with Subsection 59-2-1115(2).
3036 (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
3037 commission may by rule define the term "dwelling unit" for purposes of this Subsection (31)
3038 and Subsection (34).
3039 (32) "Real estate" or "real property" includes:
3040 (a) the possession of, claim to, ownership of, or right to the possession of land;
3041 (b) all mines, minerals, and quarries in and under the land, all timber belonging to
3042 individuals or corporations growing or being on the lands of this state or the United States, and
3043 all rights and privileges appertaining to these; and
3044 (c) improvements.
3045 (33) (a) "Relationship with an owner of the property's land surface rights" means a
3046 relationship described in Subsection 267(b), Internal Revenue Code, except that the term 25%
3047 shall be substituted for the term 50% in Subsection 267(b), Internal Revenue Code.
3048 (b) For purposes of determining if a relationship described in Subsection 267(b),
3049 Internal Revenue Code, exists, the ownership of stock shall be determined using the ownership
3050 rules in Subsection 267(c), Internal Revenue Code.
3051 (34) (a) "Residential property," for purposes of the reductions and adjustments under
3052 this chapter, means any property used for residential purposes as a primary residence.
3053 (b) "Residential property" includes:
3054 (i) except as provided in Subsection (34)(b)(ii), includes household furnishings,
3055 furniture, and equipment if the household furnishings, furniture, and equipment are:
3056 (A) used exclusively within a dwelling unit that is the primary residence of a tenant;
3057 and
3058 (B) owned by the owner of the dwelling unit that is the primary residence of a tenant;
3059 and
3060 (ii) if the county assessor determines that the property will be used for residential
3061 purposes as a primary residence:
3062 (A) property under construction; or
3063 (B) unoccupied property.
3064 (c) "Residential property" does not include property used for transient residential use.
3065 (d) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
3066 commission may by rule define the term "dwelling unit" for purposes of Subsection (31) and
3067 this Subsection (34).
3068 (35) "Split estate mineral rights owner" means a person that:
3069 (a) has a legal right to extract a mineral from property;
3070 (b) does not hold more than a 25% interest in:
3071 (i) the land surface rights of the property where the wellhead is located; or
3072 (ii) an entity with an ownership interest in the land surface rights of the property where
3073 the wellhead is located;
3074 (c) is not an entity in which the owner of the land surface rights of the property where
3075 the wellhead is located holds more than a 25% interest; and
3076 (d) does not have a relationship with an owner of the land surface rights of the property
3077 where the wellhead is located.
3078 (36) (a) "State-assessed commercial vehicle" means:
3079 (i) any commercial vehicle, trailer, or semitrailer that operates interstate or intrastate to
3080 transport passengers, freight, merchandise, or other property for hire; or
3081 (ii) any commercial vehicle, trailer, or semitrailer that operates interstate and transports
3082 the vehicle owner's goods or property in furtherance of the owner's commercial enterprise.
3083 (b) "State-assessed commercial vehicle" does not include vehicles used for hire that are
3084 specified in Subsection (10)(c) as county-assessed commercial vehicles.
3085 (37) "Subdivided lot" means a lot, parcel, or other division of land, that is a division of
3086 a base parcel.
3087 (38) "Tax area" means a geographic area created by the overlapping boundaries of one
3088 or more taxing entities.
3089 (39) "Taxable value" means fair market value less any applicable reduction allowed for
3090 residential property under Section 59-2-103.
3091 (40) "Taxing entity" means any county, city, town, school district, special taxing
3092 district, special district under Title 17B, Limited Purpose Local Government Entities - Special
3093 Districts, or other political subdivision of the state with the authority to levy a tax on property.
3094 (41) (a) "Tax roll" means a permanent record of the taxes charged on property, as
3095 extended on the assessment roll, and may be maintained on the same record or records as the
3096 assessment roll or may be maintained on a separate record properly indexed to the assessment
3097 roll.
3098 (b) "Tax roll" includes tax books, tax lists, and other similar materials.
3099 (42) "Telecommunications service provider" means the same as that term is defined in
3100 Section 59-12-102.
3101 Section 41. Section 59-7-614 is amended to read:
3102 59-7-614. Clean energy systems tax credits -- Definitions -- Certification --
3103 Rulemaking authority.
3104 (1) As used in this section:
3105 (a) (i) "Active solar system" means a system of equipment that is capable of:
3106 (A) collecting and converting incident solar radiation into thermal, mechanical, or
3107 electrical energy; and
3108 (B) transferring a form of energy described in Subsection (1)(a)(i)(A) by a separate
3109 apparatus to storage or to the point of use.
3110 (ii) "Active solar system" includes water heating, space heating or cooling, and
3111 electrical or mechanical energy generation.
3112 (b) "Biomass system" means a system of apparatus and equipment for use in:
3113 (i) converting material into biomass energy, as defined in Section 59-12-102; and
3114 (ii) transporting the biomass energy by separate apparatus to the point of use or storage.
3115 (c) "Clean energy source" means the same as that term is defined in Section 54-17-601.
3116 [
3117 (i) (A) an active solar system;
3118 (B) a biomass system;
3119 (C) a direct use geothermal system;
3120 (D) a geothermal electricity system;
3121 (E) a geothermal heat pump system;
3122 (F) a hydroenergy system;
3123 (G) a passive solar system; or
3124 (H) a wind system;
3125 (ii) located in the state; and
3126 (iii) used:
3127 (A) to supply energy to a commercial unit; or
3128 (B) as a commercial enterprise.
3129 [
3130 (i) electrical, mechanical, or thermal energy for sale from a commercial energy system;
3131 or
3132 (ii) hydrogen for sale from a hydrogen production system.
3133 [
3134 transact business.
3135 (ii) Notwithstanding Subsection [
3136 (A) with respect to an active solar system used for agricultural water pumping or a
3137 wind system, each individual energy generating device is considered to be a commercial unit;
3138 or
3139 (B) if an energy system is the building or structure that an entity uses to transact
3140 business, a commercial unit is the complete energy system itself.
3141 [
3142 that enables the direct use of geothermal energy to meet energy needs, including heating a
3143 building, an industrial process, and aquaculture.
3144 [
3145 (i) contained in heat that continuously flows outward from the earth; and
3146 (ii) used as a sole source of energy to produce electricity.
3147 [
3148 earth.
3149 [
3150 that:
3151 (i) enables the use of thermal properties contained in the earth at temperatures well
3152 below 100 degrees Fahrenheit; and
3153 (ii) helps meet heating and cooling needs of a structure.
3154 [
3155 capable of:
3156 (i) intercepting and converting kinetic water energy into electrical or mechanical
3157 energy; and
3158 (ii) transferring this form of energy by separate apparatus to the point of use or storage.
3159 [
3160 located in this state, that uses:
3161 (i) electricity from a [
3162 water, regardless of whether the [
3163 same facility as the system of apparatus and equipment; or
3164 (ii) uses renewable natural gas to produce hydrogen gas.
3165 [
3166 79-6-401.
3167 [
3168 structure of a building and the structure's operable components to provide for collection,
3169 storage, and distribution of heating or cooling during the appropriate times of the year by
3170 utilizing the climate resources available at the site.
3171 (ii) "Passive solar system" includes those portions and components of a building that
3172 are expressly designed and required for the collection, storage, and distribution of solar energy.
3173 [
3174 from sunlight.
3175 [
3176 constitutes the cost a person incurs in acquiring a commercial energy system.
3177 (ii) "Principal recovery portion" does not include:
3178 (A) an interest charge; or
3179 (B) a maintenance expense.
3180 [
3181
3182 (q) "Residential energy system" means the following used to supply energy to or for a
3183 residential unit:
3184 (i) an active solar system;
3185 (ii) a biomass system;
3186 (iii) a direct use geothermal system;
3187 (iv) a geothermal heat pump system;
3188 (v) a hydroenergy system;
3189 (vi) a passive solar system; or
3190 (vii) a wind system.
3191 (r) (i) "Residential unit" means a house, condominium, apartment, or similar dwelling
3192 unit that:
3193 (A) is located in the state; and
3194 (B) serves as a dwelling for a person, group of persons, or a family.
3195 (ii) "Residential unit" does not include property subject to a fee under:
3196 (A) Section 59-2-405;
3197 (B) Section 59-2-405.1;
3198 (C) Section 59-2-405.2;
3199 (D) Section 59-2-405.3; or
3200 (E) Section 72-10-110.5.
3201 (s) "Wind system" means a system of apparatus and equipment that is capable of:
3202 (i) intercepting and converting wind energy into mechanical or electrical energy; and
3203 (ii) transferring these forms of energy by a separate apparatus to the point of use, sale,
3204 or storage.
3205 (2) A taxpayer may claim an energy system tax credit as provided in this section
3206 against a tax due under this chapter for a taxable year.
3207 (3) (a) Subject to the other provisions of this Subsection (3), a taxpayer may claim a
3208 nonrefundable tax credit under this Subsection (3) with respect to a residential unit the taxpayer
3209 owns or uses if:
3210 (i) the taxpayer:
3211 (A) purchases and completes a residential energy system to supply all or part of the
3212 energy required for the residential unit; or
3213 (B) participates in the financing of a residential energy system to supply all or part of
3214 the energy required for the residential unit; and
3215 (ii) the taxpayer obtains a written certification from the office in accordance with
3216 Subsection (8).
3217 (b) (i) Subject to Subsections (3)(b)(ii) through (iv) and, as applicable, Subsection
3218 (3)(c) or (d), the tax credit is equal to 25% of the reasonable costs of each residential energy
3219 system installed with respect to each residential unit the taxpayer owns or uses.
3220 (ii) A tax credit under this Subsection (3) may include installation costs.
3221 (iii) A taxpayer may claim a tax credit under this Subsection (3) for the taxable year in
3222 which the residential energy system is completed and placed in service.
3223 (iv) If the amount of a tax credit under this Subsection (3) exceeds a taxpayer's tax
3224 liability under this chapter for a taxable year, the taxpayer may carry forward the amount of the
3225 tax credit exceeding the liability for a period that does not exceed the next four taxable years.
3226 (c) The total amount of tax credit a taxpayer may claim under this Subsection (3) for a
3227 residential energy system, other than a photovoltaic system, may not exceed $2,000 per
3228 residential unit.
3229 (d) The total amount of tax credit a taxpayer may claim under this Subsection (3) for a
3230 photovoltaic system may not exceed:
3231 (i) for a system installed on or after January 1, 2018, but on or before December 31,
3232 2020, $1,600;
3233 (ii) for a system installed on or after January 1, 2021, but on or before December 31,
3234 2021, $1,200;
3235 (iii) for a system installed on or after January 1, 2022, but on or before December 31,
3236 2022, $800;
3237 (iv) for a system installed on or after January 1, 2023, but on or before December 31,
3238 2023, $400; and
3239 (v) for a system installed on or after January 1, 2024, $0.
3240 (e) If a taxpayer sells a residential unit to another person before the taxpayer claims the
3241 tax credit under this Subsection (3):
3242 (i) the taxpayer may assign the tax credit to the other person; and
3243 (ii) (A) if the other person files a return under this chapter, the other person may claim
3244 the tax credit under this section as if the other person had met the requirements of this section
3245 to claim the tax credit; or
3246 (B) if the other person files a return under Chapter 10, Individual Income Tax Act, the
3247 other person may claim the tax credit under Section 59-10-1014 as if the other person had met
3248 the requirements of Section 59-10-1014 to claim the tax credit.
3249 (4) (a) Subject to the other provisions of this Subsection (4), a taxpayer may claim a
3250 refundable tax credit under this Subsection (4) with respect to a commercial energy system if:
3251 (i) the commercial energy system does not use:
3252 (A) wind, geothermal electricity, solar, or biomass equipment capable of producing a
3253 total of 660 or more kilowatts of electricity; or
3254 (B) solar equipment capable of producing 2,000 or more kilowatts of electricity;
3255 (ii) the taxpayer purchases or participates in the financing of the commercial energy
3256 system;
3257 (iii) (A) the commercial energy system supplies all or part of the energy required by
3258 commercial units owned or used by the taxpayer; or
3259 (B) the taxpayer sells all or part of the energy produced by the commercial energy
3260 system as a commercial enterprise;
3261 (iv) the taxpayer has not claimed and will not claim a tax credit under Subsection (7)
3262 for hydrogen production using electricity for which the taxpayer claims a tax credit under this
3263 Subsection (4); and
3264 (v) the taxpayer obtains a written certification from the office in accordance with
3265 Subsection (8).
3266 (b) (i) Subject to Subsections (4)(b)(ii) through (iv), the tax credit is equal to 10% of
3267 the reasonable costs of the commercial energy system.
3268 (ii) A tax credit under this Subsection (4) may include installation costs.
3269 (iii) A taxpayer is eligible to claim a tax credit under this Subsection (4) for the taxable
3270 year in which the commercial energy system is completed and placed in service.
3271 (iv) The total amount of tax credit a taxpayer may claim under this Subsection (4) may
3272 not exceed $50,000 per commercial unit.
3273 (c) (i) Subject to Subsections (4)(c)(ii) and (iii), a taxpayer that is a lessee of a
3274 commercial energy system installed on a commercial unit may claim a tax credit under this
3275 Subsection (4) if the taxpayer confirms that the lessor irrevocably elects not to claim the tax
3276 credit.
3277 (ii) A taxpayer described in Subsection (4)(c)(i) may claim as a tax credit under this
3278 Subsection (4) only the principal recovery portion of the lease payments.
3279 (iii) A taxpayer described in Subsection (4)(c)(i) may claim a tax credit under this
3280 Subsection (4) for a period that does not exceed seven taxable years after the day on which the
3281 lease begins, as stated in the lease agreement.
3282 (5) (a) Subject to the other provisions of this Subsection (5), a taxpayer may claim a
3283 refundable tax credit under this Subsection (5) with respect to a commercial energy system if:
3284 (i) the commercial energy system uses wind, geothermal electricity, or biomass
3285 equipment capable of producing a total of 660 or more kilowatts of electricity;
3286 (ii) (A) the commercial energy system supplies all or part of the energy required by
3287 commercial units owned or used by the taxpayer; or
3288 (B) the taxpayer sells all or part of the energy produced by the commercial energy
3289 system as a commercial enterprise;
3290 (iii) the taxpayer has not claimed and will not claim a tax credit under Subsection (7)
3291 for hydrogen production using electricity for which the taxpayer claims a tax credit under this
3292 Subsection (5); and
3293 (iv) the taxpayer obtains a written certification from the office in accordance with
3294 Subsection (8).
3295 (b) (i) Subject to Subsection (5)(b)(ii), a tax credit under this Subsection (5) is equal to
3296 the product of:
3297 (A) 0.35 cents; and
3298 (B) the kilowatt hours of electricity produced and used or sold during the taxable year.
3299 (ii) A taxpayer is eligible to claim a tax credit under this Subsection (5) for production
3300 occurring during a period of 48 months beginning with the month in which the commercial
3301 energy system is placed in commercial service.
3302 (c) A taxpayer that is a lessee of a commercial energy system installed on a commercial
3303 unit may claim a tax credit under this Subsection (5) if the taxpayer confirms that the lessor
3304 irrevocably elects not to claim the tax credit.
3305 (6) (a) Subject to the other provisions of this Subsection (6), a taxpayer may claim a
3306 refundable tax credit as provided in this Subsection (6) if:
3307 (i) the taxpayer owns a commercial energy system that uses solar equipment capable of
3308 producing a total of 660 or more kilowatts of electricity;
3309 (ii) (A) the commercial energy system supplies all or part of the energy required by
3310 commercial units owned or used by the taxpayer; or
3311 (B) the taxpayer sells all or part of the energy produced by the commercial energy
3312 system as a commercial enterprise;
3313 (iii) the taxpayer does not claim a tax credit under Subsection (4) and has not claimed
3314 and will not claim a tax credit under Subsection (7) for hydrogen production using electricity
3315 for which a taxpayer claims a tax credit under this Subsection (6); and
3316 (iv) the taxpayer obtains a written certification from the office in accordance with
3317 Subsection (8).
3318 (b) (i) Subject to Subsection (6)(b)(ii), a tax credit under this Subsection (6) is equal to
3319 the product of:
3320 (A) 0.35 cents; and
3321 (B) the kilowatt hours of electricity produced and used or sold during the taxable year.
3322 (ii) A taxpayer is eligible to claim a tax credit under this Subsection (6) for production
3323 occurring during a period of 48 months beginning with the month in which the commercial
3324 energy system is placed in commercial service.
3325 (c) A taxpayer that is a lessee of a commercial energy system installed on a commercial
3326 unit may claim a tax credit under this Subsection (6) if the taxpayer confirms that the lessor
3327 irrevocably elects not to claim the tax credit.
3328 (7) (a) A taxpayer may claim a refundable tax credit as provided in this Subsection (7)
3329 if:
3330 (i) the taxpayer owns a hydrogen production system;
3331 (ii) the hydrogen production system is completed and placed in service on or after
3332 January 1, 2022;
3333 (iii) the taxpayer sells as a commercial enterprise, or supplies for the taxpayer's own
3334 use in commercial units, the hydrogen produced from the hydrogen production system;
3335 (iv) the taxpayer has not claimed and will not claim a tax credit under Subsection (4),
3336 (5), or (6) or Section 59-7-626 for electricity or hydrogen used to meet the requirements of this
3337 Subsection (7); and
3338 (v) the taxpayer obtains a written certification from the office in accordance with
3339 Subsection (8).
3340 (b) (i) Subject to Subsections (7)(b)(ii) and (iii), a tax credit under this Subsection (7)
3341 is equal to the product of:
3342 (A) $0.12; and
3343 (B) the number of kilograms of hydrogen produced during the taxable year.
3344 (ii) A taxpayer may not receive a tax credit under this Subsection (7) for more than
3345 5,600 metric tons of hydrogen per taxable year.
3346 (iii) A taxpayer is eligible to claim a tax credit under this Subsection (7) for production
3347 occurring during a period of 48 months beginning with the month in which the hydrogen
3348 production system is placed in commercial service.
3349 (8) (a) Before a taxpayer may claim a tax credit under this section, the taxpayer shall
3350 obtain a written certification from the office.
3351 (b) The office shall issue a taxpayer a written certification if the office determines that:
3352 (i) the taxpayer meets the requirements of this section to receive a tax credit; and
3353 (ii) the residential energy system, the commercial energy system, or the hydrogen
3354 production system with respect to which the taxpayer seeks to claim a tax credit:
3355 (A) has been completely installed;
3356 (B) is a viable system for saving or producing energy from [
3357 resources; and
3358 (C) is safe, reliable, efficient, and technically feasible to ensure that the residential
3359 energy system, the commercial energy system, or the hydrogen production system uses the
3360 state's [
3361 manner.
3362 (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
3363 office may make rules:
3364 (i) for determining whether a residential energy system, a commercial energy system,
3365 or a hydrogen production system meets the requirements of Subsection (8)(b)(ii); and
3366 (ii) for purposes of a tax credit under Subsection (3) or (4), establishing the reasonable
3367 costs of a residential energy system or a commercial energy system, as an amount per unit of
3368 energy production.
3369 (d) A taxpayer that obtains a written certification from the office shall retain the
3370 certification for the same time period a person is required to keep books and records under
3371 Section 59-1-1406.
3372 (e) The office shall submit to the commission an electronic list that includes:
3373 (i) the name and identifying information of each taxpayer to which the office issues a
3374 written certification; and
3375 (ii) for each taxpayer:
3376 (A) the amount of the tax credit listed on the written certification; and
3377 (B) the date the [
3378 (9) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
3379 commission may make rules to address the certification of a tax credit under this section.
3380 (10) A tax credit under this section is in addition to any tax credits provided under the
3381 laws or rules and regulations of the United States.
3382 (11) A taxpayer may not claim or carry forward a tax credit described in this section in
3383 a taxable year during which the taxpayer claims or carries forward a tax credit under Section
3384 59-7-614.7.
3385 Section 42. Section 59-10-1014 is amended to read:
3386 59-10-1014. Nonrefundable clean energy systems tax credits -- Definitions --
3387 Certification -- Rulemaking authority.
3388 (1) As used in this section:
3389 (a) (i) "Active solar system" means a system of equipment that is capable of:
3390 (A) collecting and converting incident solar radiation into thermal, mechanical, or
3391 electrical energy; and
3392 (B) transferring a form of energy described in Subsection (1)(a)(i)(A) by a separate
3393 apparatus to storage or to the point of use.
3394 (ii) "Active solar system" includes water heating, space heating or cooling, and
3395 electrical or mechanical energy generation.
3396 (b) "Biomass system" means a system of apparatus and equipment for use in:
3397 (i) converting material into biomass energy, as defined in Section 59-12-102; and
3398 (ii) transporting the biomass energy by separate apparatus to the point of use or storage.
3399 (c) "Direct use geothermal system" means a system of apparatus and equipment that
3400 enables the direct use of geothermal energy to meet energy needs, including heating a building,
3401 an industrial process, and aquaculture.
3402 (d) "Geothermal electricity" means energy that is:
3403 (i) contained in heat that continuously flows outward from the earth; and
3404 (ii) used as a sole source of energy to produce electricity.
3405 (e) "Geothermal energy" means energy generated by heat that is contained in the earth.
3406 (f) "Geothermal heat pump system" means a system of apparatus and equipment that:
3407 (i) enables the use of thermal properties contained in the earth at temperatures well
3408 below 100 degrees Fahrenheit; and
3409 (ii) helps meet heating and cooling needs of a structure.
3410 (g) "Hydroenergy system" means a system of apparatus and equipment that is capable
3411 of:
3412 (i) intercepting and converting kinetic water energy into electrical or mechanical
3413 energy; and
3414 (ii) transferring this form of energy by separate apparatus to the point of use or storage.
3415 (h) "Office" means the Office of Energy Development created in Section 79-6-401.
3416 (i) (i) "Passive solar system" means a direct thermal system that utilizes the structure of
3417 a building and its operable components to provide for collection, storage, and distribution of
3418 heating or cooling during the appropriate times of the year by utilizing the climate resources
3419 available at the site.
3420 (ii) "Passive solar system" includes those portions and components of a building that
3421 are expressly designed and required for the collection, storage, and distribution of solar energy.
3422 (j) "Photovoltaic system" means an active solar system that generates electricity from
3423 sunlight.
3424 (k) (i) "Principal recovery portion" means the portion of a lease payment that
3425 constitutes the cost a person incurs in acquiring a residential energy system.
3426 (ii) "Principal recovery portion" does not include:
3427 (A) an interest charge; or
3428 (B) a maintenance expense.
3429 (l) "Residential energy system" means the following used to supply energy to or for a
3430 residential unit:
3431 (i) an active solar system;
3432 (ii) a biomass system;
3433 (iii) a direct use geothermal system;
3434 (iv) a geothermal heat pump system;
3435 (v) a hydroenergy system;
3436 (vi) a passive solar system; or
3437 (vii) a wind system.
3438 (m) (i) "Residential unit" means a house, condominium, apartment, or similar dwelling
3439 unit that:
3440 (A) is located in the state; and
3441 (B) serves as a dwelling for a person, group of persons, or a family.
3442 (ii) "Residential unit" does not include property subject to a fee under:
3443 (A) Section 59-2-405;
3444 (B) Section 59-2-405.1;
3445 (C) Section 59-2-405.2;
3446 (D) Section 59-2-405.3; or
3447 (E) Section 72-10-110.5.
3448 (n) "Wind system" means a system of apparatus and equipment that is capable of:
3449 (i) intercepting and converting wind energy into mechanical or electrical energy; and
3450 (ii) transferring these forms of energy by a separate apparatus to the point of use or
3451 storage.
3452 (2) A claimant, estate, or trust may claim an energy system tax credit as provided in
3453 this section against a tax due under this chapter for a taxable year.
3454 (3) For a taxable year beginning on or after January 1, 2007, a claimant, estate, or trust
3455 may claim a nonrefundable tax credit under this section with respect to a residential unit the
3456 claimant, estate, or trust owns or uses if:
3457 (a) the claimant, estate, or trust:
3458 (i) purchases and completes a residential energy system to supply all or part of the
3459 energy required for the residential unit; or
3460 (ii) participates in the financing of a residential energy system to supply all or part of
3461 the energy required for the residential unit;
3462 (b) the residential energy system is installed on or after January 1, 2007; and
3463 (c) the claimant, estate, or trust obtains a written certification from the office in
3464 accordance with Subsection (5).
3465 (4) (a) For a residential energy system, other than a photovoltaic system, the tax credit
3466 described in this section is equal to the lesser of:
3467 (i) 25% of the reasonable costs, including installation costs, of each residential energy
3468 system installed with respect to each residential unit the claimant, estate, or trust owns or uses;
3469 and
3470 (ii) $2,000.
3471 (b) Subject to Subsection (5)(d), for a residential energy system that is a photovoltaic
3472 system, the tax credit described in this section is equal to the lesser of:
3473 (i) 25% of the reasonable costs, including installation costs, of each system installed
3474 with respect to each residential unit the claimant, estate, or trust owns or uses; or
3475 (ii) (A) for a system installed on or after January 1, 2007, but on or before December
3476 31, 2017, $2,000;
3477 (B) for a system installed on or after January 1, 2018, but on or before December 31,
3478 2020, $1,600;
3479 (C) for a system installed on or after January 1, 2021, but on or before December 31,
3480 2021, $1,200;
3481 (D) for a system installed on or after January 1, 2022, but on or before December 31,
3482 2022, $800;
3483 (E) for a system installed on or after January 1, 2023, but on or before December 31,
3484 2023, $400; and
3485 (F) for a system installed on or after January 1, 2024, $0.
3486 (c) (i) The office shall determine the amount of the tax credit that a claimant, estate, or
3487 trust may claim and list that amount on the written certification that the office issues under
3488 Subsection (5).
3489 (ii) The claimant, estate, or trust may claim the tax credit in the amount listed on the
3490 written certification that the office issues under Subsection (5).
3491 (d) A claimant, estate, or trust may claim a tax credit under Subsection (3) for the
3492 taxable year in which the residential energy system is installed.
3493 (e) If the amount of a tax credit listed on the written certification exceeds a claimant's,
3494 estate's, or trust's tax liability under this chapter for a taxable year, the claimant, estate, or trust
3495 may carry forward the amount of the tax credit exceeding the liability for a period that does not
3496 exceed the next four taxable years.
3497 (f) A claimant, estate, or trust may claim a tax credit with respect to additional
3498 residential energy systems or parts of residential energy systems for a subsequent taxable year
3499 if the total amount of tax credit the claimant, estate, or trust claims does not exceed $2,000 per
3500 residential unit.
3501 (g) (i) Subject to Subsections (4)(g)(ii) and (iii), a claimant, estate, or trust that leases a
3502 residential energy system installed on a residential unit may claim a tax credit under Subsection
3503 (3) if the claimant, estate, or trust confirms that the lessor irrevocably elects not to claim the tax
3504 credit.
3505 (ii) A claimant, estate, or trust described in Subsection (4)(g)(i) that leases a residential
3506 energy system may claim as a tax credit under Subsection (3) only the principal recovery
3507 portion of the lease payments.
3508 (iii) A claimant, estate, or trust described in Subsection (4)(g)(i) that leases a
3509 residential energy system may claim a tax credit under Subsection (3) for a period that does not
3510 exceed seven taxable years after the date the lease begins, as stated in the lease agreement.
3511 (h) If a claimant, estate, or trust sells a residential unit to another person before the
3512 claimant, estate, or trust claims the tax credit under Subsection (3):
3513 (i) the claimant, estate, or trust may assign the tax credit to the other person; and
3514 (ii) (A) if the other person files a return under Chapter 7, Corporate Franchise and
3515 Income Taxes, the other person may claim the tax credit as if the other person had met the
3516 requirements of Section 59-7-614 to claim the tax credit; or
3517 (B) if the other person files a return under this chapter, the other person may claim the
3518 tax credit under this section as if the other person had met the requirements of this section to
3519 claim the tax credit.
3520 (5) (a) Before a claimant, estate, or trust may claim a tax credit under this section, the
3521 claimant, estate, or trust shall obtain a written certification from the office.
3522 (b) The office shall issue a claimant, estate, or trust a written certification if the office
3523 determines that:
3524 (i) the claimant, estate, or trust meets the requirements of this section to receive a tax
3525 credit; and
3526 (ii) the office determines that the residential energy system with respect to which the
3527 claimant, estate, or trust seeks to claim a tax credit:
3528 (A) has been completely installed;
3529 (B) is a viable system for saving or producing energy from [
3530 resources; and
3531 (C) is safe, reliable, efficient, and technically feasible to ensure that the residential
3532 energy system uses the state's renewable and nonrenewable energy resources in an appropriate
3533 and economic manner.
3534 (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
3535 office may make rules:
3536 (i) for determining whether a residential energy system meets the requirements of
3537 Subsection (5)(b)(ii); and
3538 (ii) for purposes of determining the amount of a tax credit that a claimant, estate, or
3539 trust may receive under Subsection (4), establishing the reasonable costs of a residential energy
3540 system, as an amount per unit of energy production.
3541 (d) A claimant, estate, or trust that obtains a written certification from the office shall
3542 retain the certification for the same time period a person is required to keep books and records
3543 under Section 59-1-1406.
3544 (e) The office shall submit to the commission an electronic list that includes:
3545 (i) the name and identifying information of each claimant, estate, or trust to which the
3546 office issues a written certification; and
3547 (ii) for each claimant, estate, or trust:
3548 (A) the amount of the tax credit listed on the written certification; and
3549 (B) the date the [
3550 (6) A tax credit under this section is in addition to any tax credits provided under the
3551 laws or rules and regulations of the United States.
3552 (7) A purchaser of one or more solar units that claims a tax credit under Section
3553 59-10-1024 for the purchase of the one or more solar units may not claim a tax credit under this
3554 section for that purchase.
3555 Section 43. Section 59-10-1106 is amended to read:
3556 59-10-1106. Refundable clean energy systems tax credits -- Definitions --
3557 Certification -- Rulemaking authority.
3558 (1) As used in this section:
3559 (a) "Active solar system" means the same as that term is defined in Section
3560 59-10-1014.
3561 (b) "Biomass system" means the same as that term is defined in Section 59-10-1014.
3562 (c) "Commercial energy system" means the same as that term is defined in Section
3563 59-7-614.
3564 (d) "Commercial enterprise" means the same as that term is defined in Section
3565 59-7-614.
3566 (e) "Commercial unit" means the same as that term is defined in Section 59-7-614.
3567 (f) "Direct use geothermal system" means the same as that term is defined in Section
3568 59-10-1014.
3569 (g) "Geothermal electricity" means the same as that term is defined in Section
3570 59-10-1014.
3571 (h) "Geothermal energy" means the same as that term is defined in Section 59-10-1014.
3572 (i) "Geothermal heat pump system" means the same as that term is defined in Section
3573 59-10-1014.
3574 (j) "Hydroenergy system" means the same as that term is defined in Section
3575 59-10-1014.
3576 (k) "Hydrogen production system" means the same as that term is defined in Section
3577 59-7-614.
3578 (l) "Office" means the Office of Energy Development created in Section 79-6-401.
3579 (m) "Passive solar system" means the same as that term is defined in Section
3580 59-10-1014.
3581 (n) "Principal recovery portion" means the same as that term is defined in Section
3582 59-10-1014.
3583 (o) "Wind system" means the same as that term is defined in Section 59-10-1014.
3584 (2) A claimant, estate, or trust may claim an energy system tax credit as provided in
3585 this section against a tax due under this chapter for a taxable year.
3586 (3) (a) Subject to the other provisions of this Subsection (3), a claimant, estate, or trust
3587 may claim a refundable tax credit under this Subsection (3) with respect to a commercial
3588 energy system if:
3589 (i) the commercial energy system does not use:
3590 (A) wind, geothermal electricity, solar, or biomass equipment capable of producing a
3591 total of 660 or more kilowatts of electricity; or
3592 (B) solar equipment capable of producing 2,000 or more kilowatts of electricity;
3593 (ii) the claimant, estate, or trust purchases or participates in the financing of the
3594 commercial energy system;
3595 (iii) (A) the commercial energy system supplies all or part of the energy required by
3596 commercial units owned or used by the claimant, estate, or trust; or
3597 (B) the claimant, estate, or trust sells all or part of the energy produced by the
3598 commercial energy system as a commercial enterprise;
3599 (iv) the claimant, estate, or trust has not claimed and will not claim a tax credit under
3600 Subsection (6) for hydrogen production using electricity for which the claimant, estate, or trust
3601 claims a tax credit under this Subsection (3); and
3602 (v) the claimant, estate, or trust obtains a written certification from the office in
3603 accordance with Subsection (7).
3604 (b) (i) Subject to Subsections (3)(b)(ii) through (iv), the tax credit is equal to 10% of
3605 the reasonable costs of the commercial energy system.
3606 (ii) A tax credit under this Subsection (3) may include installation costs.
3607 (iii) A claimant, estate, or trust is eligible to claim a tax credit under this Subsection (3)
3608 for the taxable year in which the commercial energy system is completed and placed in service.
3609 (iv) The total amount of tax credit a claimant, estate, or trust may claim under this
3610 Subsection (3) may not exceed $50,000 per commercial unit.
3611 (c) (i) Subject to Subsections (3)(c)(ii) and (iii), a claimant, estate, or trust that is a
3612 lessee of a commercial energy system installed on a commercial unit may claim a tax credit
3613 under this Subsection (3) if the claimant, estate, or trust confirms that the lessor irrevocably
3614 elects not to claim the tax credit.
3615 (ii) A claimant, estate, or trust described in Subsection (3)(c)(i) may claim as a tax
3616 credit under this Subsection (3) only the principal recovery portion of the lease payments.
3617 (iii) A claimant, estate, or trust described in Subsection (3)(c)(i) may claim a tax credit
3618 under this Subsection (3) for a period that does not exceed seven taxable years after the day on
3619 which the lease begins, as stated in the lease agreement.
3620 (4) (a) Subject to the other provisions of this Subsection (4), a claimant, estate, or trust
3621 may claim a refundable tax credit under this Subsection (4) with respect to a commercial
3622 energy system if:
3623 (i) the commercial energy system uses wind, geothermal electricity, or biomass
3624 equipment capable of producing a total of 660 or more kilowatts of electricity;
3625 (ii) (A) the commercial energy system supplies all or part of the energy required by
3626 commercial units owned or used by the claimant, estate, or trust; or
3627 (B) the claimant, estate, or trust sells all or part of the energy produced by the
3628 commercial energy system as a commercial enterprise;
3629 (iii) the claimant, estate, or trust has not claimed and will not claim a tax credit under
3630 Subsection (6) for hydrogen production using electricity for which the claimant, estate, or trust
3631 claims a tax credit under this Subsection (4); and
3632 (iv) the claimant, estate, or trust obtains a written certification from the office in
3633 accordance with Subsection (7).
3634 (b) (i) Subject to Subsection (4)(b)(ii), a tax credit under this Subsection (4) is equal to
3635 the product of:
3636 (A) 0.35 cents; and
3637 (B) the kilowatt hours of electricity produced and used or sold during the taxable year.
3638 (ii) A claimant, estate, or trust is eligible to claim a tax credit under this Subsection (4)
3639 for production occurring during a period of 48 months beginning with the month in which the
3640 commercial energy system is placed in commercial service.
3641 (c) A claimant, estate, or trust that is a lessee of a commercial energy system installed
3642 on a commercial unit may claim a tax credit under this Subsection (4) if the claimant, estate, or
3643 trust confirms that the lessor irrevocably elects not to claim the tax credit.
3644 (5) (a) Subject to the other provisions of this Subsection (5), a claimant, estate, or trust
3645 may claim a refundable tax credit as provided in this Subsection (5) if:
3646 (i) the claimant, estate, or trust owns a commercial energy system that uses solar
3647 equipment capable of producing a total of 660 or more kilowatts of electricity;
3648 (ii) (A) the commercial energy system supplies all or part of the energy required by
3649 commercial units owned or used by the claimant, estate, or trust; or
3650 (B) the claimant, estate, or trust sells all or part of the energy produced by the
3651 commercial energy system as a commercial enterprise;
3652 (iii) the claimant, estate, or trust does not claim a tax credit under Subsection (3);
3653 (iv) the claimant, estate, or trust has not claimed and will not claim a tax credit under
3654 Subsection (6) for hydrogen production using electricity for which a taxpayer claims a tax
3655 credit under this Subsection (5); and
3656 (v) the claimant, estate, or trust obtains a written certification from the office in
3657 accordance with Subsection (7).
3658 (b) (i) Subject to Subsection (5)(b)(ii), a tax credit under this Subsection (5) is equal to
3659 the product of:
3660 (A) 0.35 cents; and
3661 (B) the kilowatt hours of electricity produced and used or sold during the taxable year.
3662 (ii) A claimant, estate, or trust is eligible to claim a tax credit under this Subsection (5)
3663 for production occurring during a period of 48 months beginning with the month in which the
3664 commercial energy system is placed in commercial service.
3665 (c) A claimant, estate, or trust that is a lessee of a commercial energy system installed
3666 on a commercial unit may claim a tax credit under this Subsection (5) if the claimant, estate, or
3667 trust confirms that the lessor irrevocably elects not to claim the tax credit.
3668 (6) (a) A claimant, estate, or trust may claim a refundable tax credit as provided in this
3669 Subsection (6) if:
3670 (i) the claimant, estate, or trust owns a hydrogen production system;
3671 (ii) the hydrogen production system is completed and placed in service on or after
3672 January 1, 2022;
3673 (iii) the claimant, estate, or trust sells as a commercial enterprise, or supplies for the
3674 claimant's, estate's, or trust's own use in commercial units, the hydrogen produced from the
3675 hydrogen production system;
3676 (iv) the claimant, estate, or trust has not claimed and will not claim a tax credit under
3677 Subsection (3), (4), or (5) for electricity used to meet the requirements of this Subsection (6);
3678 and
3679 (v) the claimant, estate, or trust obtains a written certification from the office in
3680 accordance with Subsection (7).
3681 (b) (i) Subject to Subsections (6)(b)(ii) and (iii), a tax credit under this Subsection (6)
3682 is equal to the product of:
3683 (A) $0.12; and
3684 (B) the number of kilograms of hydrogen produced during the taxable year.
3685 (ii) A claimant, estate, or trust may not receive a tax credit under this Subsection (6) for
3686 more than 5,600 metric tons of hydrogen per taxable year.
3687 (iii) A claimant, estate, or trust is eligible to claim a tax credit under this Subsection (6)
3688 for production occurring during a period of 48 months beginning with the month in which the
3689 hydrogen production system is placed in commercial service.
3690 (7) (a) Before a claimant, estate, or trust may claim a tax credit under this section, the
3691 claimant, estate, or trust shall obtain a written certification from the office.
3692 (b) The office shall issue a claimant, estate, or trust a written certification if the office
3693 determines that:
3694 (i) the claimant, estate, or trust meets the requirements of this section to receive a tax
3695 credit; and
3696 (ii) the commercial energy system or the hydrogen production system with respect to
3697 which the claimant, estate, or trust seeks to claim a tax credit:
3698 (A) has been completely installed;
3699 (B) is a viable system for saving or producing energy from [
3700 resources; and
3701 (C) is safe, reliable, efficient, and technically feasible to ensure that the commercial
3702 energy system or the hydrogen production system uses the state's [
3703 nonrenewable resources in an appropriate and economic manner.
3704 (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
3705 office may make rules:
3706 (i) for determining whether a commercial energy system or a hydrogen production
3707 system meets the requirements of Subsection (7)(b)(ii); and
3708 (ii) for purposes of a tax credit under Subsection (3), establishing the reasonable costs
3709 of a commercial energy system, as an amount per unit of energy production.
3710 (d) A claimant, estate, or trust that obtains a written certification from the office shall
3711 retain the certification for the same time period a person is required to keep books and records
3712 under Section 59-1-1406.
3713 (e) The office shall submit to the commission an electronic list that includes:
3714 (i) the name and identifying information of each claimant, estate, or trust to which the
3715 office issues a written certification; and
3716 (ii) for each claimant, estate, or trust:
3717 (A) the amount of the tax credit listed on the written certification; and
3718 (B) the date the commercial energy system or the hydrogen production system was
3719 installed.
3720 (8) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
3721 commission may make rules to address the certification of a tax credit under this section.
3722 (9) A tax credit under this section is in addition to any tax credits provided under the
3723 laws or rules and regulations of the United States.
3724 (10) A purchaser of one or more solar units that claims a tax credit under Section
3725 59-10-1024 for the purchase of the one or more solar units may not claim a tax credit under this
3726 section for that purchase.
3727 (11) A claimant, estate, or trust may not claim or carry forward a tax credit described in
3728 this section in a taxable year during which the claimant, estate, or trust claims or carries
3729 forward a tax credit under Section 59-10-1029.
3730 Section 44. Section 63A-5b-702 is amended to read:
3731 63A-5b-702. Standards and requirements for state facilities -- Life-cycle cost
3732 effectiveness.
3733 (1) As used in this section:
3734 (a) "Clean energy system" means a system designed to use solar, wind, geothermal
3735 power, wood, hydropower, nuclear, or other clean energy source to heat, cool, or provide
3736 electricity to a building.
3737 (b) "Life cycle cost-effective" means the most prudent cost of owning, operating, and
3738 maintaining a facility, including the initial cost, energy costs, operation and maintenance costs,
3739 repair costs, and the costs of energy conservation and [
3740 [
3741
3742
3743 (2) The director shall, in accordance with Title 63G, Chapter 3, Utah Administrative
3744 Rulemaking Act, make rules:
3745 (a) that establish standards and requirements for determining whether a state facility
3746 project is life cycle cost-effective;
3747 (b) for the monitoring of an agency's operation and maintenance expenditures for a
3748 state-owned facility;
3749 (c) to establish standards and requirements for utility metering;
3750 (d) that create an operation and maintenance program for an agency's facilities;
3751 (e) that establish a methodology for determining reasonably anticipated inflationary
3752 costs for each operation and maintenance program described in Subsection (2)(d);
3753 (f) that require an agency to report the amount the agency receives and expends on
3754 operation and maintenance; and
3755 (g) that provide for determining the actual cost for operation and maintenance requests
3756 for a new facility.
3757 (3) The director shall:
3758 (a) ensure that state-owned facilities, except for facilities under the control of the State
3759 Capitol Preservation Board, are life cycle cost-effective;
3760 (b) conduct ongoing facilities audits of state-owned facilities; and
3761 (c) monitor an agency's operation and maintenance expenditures for state-owned
3762 facilities as provided in rules made under Subsection (2)(b).
3763 (4) (a) An agency shall comply with the rules made under Subsection (2) for new
3764 facility requests submitted to the Legislature for a session of the Legislature after the 2017
3765 General Session.
3766 (b) The Office of the Legislative Fiscal Analyst and the Governor's Office of Planning
3767 and Budget shall, for each agency with operation and maintenance expenses, ensure that each
3768 required budget for the agency is adjusted in accordance with the rules described in Subsection
3769 (2)(e).
3770 Section 45. Section 63H-1-201 is amended to read:
3771 63H-1-201. Creation of military installation development authority -- Status and
3772 powers of authority -- Limitation.
3773 (1) There is created a military installation development authority.
3774 (2) The authority is:
3775 (a) an independent, nonprofit, separate body corporate and politic, with perpetual
3776 succession and statewide jurisdiction, whose purpose is to facilitate the development of land
3777 within a project area or on military land associated with a project area;
3778 (b) a political subdivision of the state; and
3779 (c) a public corporation, as defined in Section 63E-1-102.
3780 (3) The authority may:
3781 (a) facilitate the development of land within one or more project areas, including the
3782 ongoing operation of facilities within a project area, or development of military land associated
3783 with a project area;
3784 (b) sue and be sued;
3785 (c) enter into contracts generally;
3786 (d) by itself or through a subsidiary, buy, obtain an option upon, or otherwise acquire
3787 any interest in real or personal property:
3788 (i) in a project area; or
3789 (ii) outside a project area for public infrastructure and improvements, if the board
3790 considers the purchase, option, or other interest acquisition to be necessary for fulfilling the
3791 authority's development objectives;
3792 (e) sell, convey, grant, dispose of by gift, or otherwise dispose of any interest in real or
3793 personal property;
3794 (f) enter into a lease agreement on real or personal property, either as lessee or lessor:
3795 (i) in a project area; or
3796 (ii) outside a project area, if the board considers the lease to be necessary for fulfilling
3797 the authority's development objectives;
3798 (g) provide for the development of land within a project area or military land
3799 associated with the project area under one or more contracts;
3800 (h) exercise powers and perform functions under a contract, as authorized in the
3801 contract;
3802 (i) exercise exclusive police power within a project area to the same extent as though
3803 the authority were a municipality, including the collection of regulatory fees;
3804 (j) receive the property tax allocation and other taxes and fees as provided in this
3805 chapter;
3806 (k) accept financial or other assistance from any public or private source for the
3807 authority's activities, powers, and duties, and expend any funds so received for any of the
3808 purposes of this chapter;
3809 (l) borrow money, contract with, or accept financial or other assistance from the federal
3810 government, a public entity, or any other source for any of the purposes of this chapter and
3811 comply with any conditions of the loan, contract, or assistance;
3812 (m) issue bonds to finance the undertaking of any development objectives of the
3813 authority, including bonds under Title 11, Chapter 17, Utah Industrial Facilities and
3814 Development Act, and bonds under Title 11, Chapter 42, Assessment Area Act;
3815 (n) hire employees, including contract employees;
3816 (o) transact other business and exercise all other powers provided for in this chapter;
3817 (p) enter into a development agreement with a developer of land within a project area;
3818 (q) enter into an agreement with a political subdivision of the state under which the
3819 political subdivision provides one or more municipal services within a project area;
3820 (r) enter into an agreement with a private contractor to provide one or more municipal
3821 services within a project area;
3822 (s) provide for or finance an energy efficiency upgrade, a [
3823 system, or electric vehicle charging infrastructure as defined in Section 11-42a-102, in
3824 accordance with Title 11, Chapter 42a, Commercial Property Assessed Clean Energy Act;
3825 (t) exercise powers and perform functions that the authority is authorized by statute to
3826 exercise or perform;
3827 (u) enter into an agreement with the federal government or an agency of the federal
3828 government under which the federal government or agency:
3829 (i) provides law enforcement services only to military land within a project area; and
3830 (ii) may enter into a mutual aid or other cooperative agreement with a law enforcement
3831 agency of the state or a political subdivision of the state;
3832 (v) by itself or through a subsidiary, act as a facilitator under Title 63N, Chapter 13,
3833 Part 3, Facilitating Public-private Partnerships Act, to provide expertise and knowledge to
3834 another governmental entity interested in public-private partnerships;
3835 (w) enter into an intergovernmental support agreement under Title 10, U.S.C. Sec.
3836 2679 with the military to provide support services to the military in accordance with the
3837 agreement;
3838 (x) act as a developer, or assist a developer chosen by the military, to develop military
3839 land as part of an enhanced use lease under Title 10, U.S.C. Sec. 2667; and
3840 (y) develop public infrastructure and improvements.
3841 (4) The authority may not itself provide law enforcement service or fire protection
3842 service within a project area but may enter into an agreement for one or both of those services,
3843 as provided in Subsection (3)(q).
3844 (5) The authority shall provide support to a subsidiary that enters into an agreement
3845 under Subsection (3)(v) that the authority determines necessary for the subsidiary to fulfill the
3846 requirements of the agreement.
3847 (6) Because providing procurement, utility, construction, and other services for use by
3848 a military installation, including providing public infrastructure and improvements for use or
3849 occupancy by the military, are core functions of the authority and are typically provided by a
3850 local government for the local government's own needs or use, these services provided by the
3851 authority for the military under this chapter are considered to be for the authority's own needs
3852 and use.
3853 (7) A public infrastructure district created by the authority under Title 17D, Chapter 4,
3854 Public Infrastructure District Act, is a subsidiary of the authority.
3855 Section 46. Section 63L-11-304 is amended to read:
3856 63L-11-304. Public lands transfer study and economic analysis -- Report.
3857 (1) As used in this section:
3858 (a) "Public lands" means the same as that term is defined in Section 63L-6-102.
3859 (b) "Transfer of public lands" means the transfer of public lands from federal
3860 ownership to state ownership.
3861 (2) The office shall, on an ongoing basis, report to the Federalism Commission
3862 regarding the ramifications and economic impacts of the transfer of public lands.
3863 (3) The office shall:
3864 (a) on an ongoing basis, discuss issues related to the transfer of public lands with:
3865 (i) the School and Institutional Trust Lands Administration;
3866 (ii) local governments;
3867 (iii) water managers;
3868 (iv) environmental advocates;
3869 (v) outdoor recreation advocates;
3870 (vi) nonconventional [
3871 (vii) tourism representatives;
3872 (viii) wilderness advocates;
3873 (ix) ranchers and agriculture advocates;
3874 (x) oil, gas, and mining producers;
3875 (xi) fishing, hunting, and other wildlife interests;
3876 (xii) timber producers;
3877 (xiii) other interested parties; and
3878 (xiv) the Federalism Commission; and
3879 (b) develop ways to obtain input from citizens of the state regarding the transfer of
3880 public lands and the future care and use of public lands.
3881 Section 47. Section 79-3-202 is amended to read:
3882 79-3-202. Powers and duties of survey.
3883 (1) The survey shall:
3884 (a) assist and advise state and local agencies and state educational institutions on
3885 geologic, paleontologic, and mineralogic subjects;
3886 (b) collect and distribute reliable information regarding the mineral industry and
3887 mineral resources, topography, paleontology, and geology of the state;
3888 (c) survey the geology of the state, including mineral occurrences and the ores of
3889 metals, energy resources, industrial minerals and rocks, mineral-bearing waters, and surface
3890 and ground water resources, with special reference to their economic contents, values, uses,
3891 kind, and availability in order to facilitate their economic use;
3892 (d) investigate the kind, amount, and availability of mineral substances contained in
3893 lands owned and controlled by the state, to contribute to the most effective and beneficial
3894 administration of these lands for the state;
3895 (e) determine and investigate areas of geologic and topographic hazards that could
3896 affect the safety of, or cause economic loss to, the citizens of the state;
3897 (f) assist local and state agencies in their planning, zoning, and building regulation
3898 functions by publishing maps, delineating appropriately wide special earthquake risk areas,
3899 and, at the request of state agencies or other governmental agencies, review the siting of critical
3900 facilities;
3901 (g) cooperate with state agencies, political subdivisions of the state,
3902 quasi-governmental agencies, federal agencies, schools of higher education, and others in fields
3903 of mutual concern, which may include field investigations and preparation, publication, and
3904 distribution of reports and maps;
3905 (h) collect and preserve data pertaining to mineral resource exploration and
3906 development programs and construction activities, such as claim maps, location of drill holes,
3907 location of surface and underground workings, geologic plans and sections, drill logs, and
3908 assay and sample maps, including the maintenance of a sample library of cores and cuttings;
3909 (i) study and analyze other scientific, economic, or aesthetic problems as, in the
3910 judgment of the board, should be undertaken by the survey to serve the needs of the state and to
3911 support the development of natural resources and utilization of lands within the state;
3912 (j) prepare, publish, distribute, and sell maps, reports, and bulletins, embodying the
3913 work accomplished by the survey, directly or in collaboration with others, and collect and
3914 prepare exhibits of the geological and mineral resources of this state and interpret their
3915 significance;
3916 (k) collect, maintain, and preserve data and information in order to accomplish the
3917 purposes of this section and act as a repository for information concerning the geology of this
3918 state;
3919 (l) stimulate research, study, and activities in the field of paleontology;
3920 (m) mark, protect, and preserve critical paleontological sites;
3921 (n) collect, preserve, and administer critical paleontological specimens until the
3922 specimens are placed in a repository or curation facility;
3923 (o) administer critical paleontological site excavation records;
3924 (p) edit and publish critical paleontological records and reports;
3925 (q) by following the procedures and requirements of Title 63J, Chapter 5, Federal
3926 Funds Procedures Act, seek federal grants, loans, or participation in federal programs, and, in
3927 accordance with applicable federal program guidelines, administer federally funded state
3928 programs regarding:
3929 (i) renewable energy;
3930 (ii) energy efficiency; [
3931 (iii) energy conservation; and
3932 (iv) clean energy; and
3933 (r) collect the land use permits described in Sections 10-9a-521 and 17-27a-520.
3934 (2) (a) The survey may maintain as confidential, and not as a public record,
3935 information provided to the survey by any source.
3936 (b) The board shall adopt rules in order to determine whether to accept the information
3937 described in Subsection (2)(a) and to maintain the confidentiality of the accepted information.
3938 (c) The survey shall maintain information received from any source at the level of
3939 confidentiality assigned to it by the source.
3940 (3) Upon approval of the board, the survey shall undertake other activities consistent
3941 with Subsection (1).
3942 (4) (a) Subject to the authority granted to the department, the survey may enter into
3943 cooperative agreements with the entities specified in Subsection (1)(g), if approved by the
3944 board, and may accept or commit allocated or budgeted funds in connection with those
3945 agreements.
3946 (b) The survey may undertake joint projects with private entities if:
3947 (i) the action is approved by the board;
3948 (ii) the projects are not inconsistent with the state's objectives; and
3949 (iii) the results of the projects are available to the public.
3950 Section 48. Effective date.
3951 This bill takes effect on May 1, 2024.