Representative Calvin R. Musselman proposes the following substitute bill:




Chief Sponsor: Calvin R. Musselman

Senate Sponsor: Kirk A. Cullimore


8     General Description:
9          This bill requires the Office of Energy Development to conduct a study analyzing
10     Utah's energy fuels infrastructure and supply chain.
11     Highlighted Provisions:
12          This bill:
13          ▸     defines terms;
14          ▸     directs the Office of Energy Development to study the feasibility and benefits of
15     establishing a transportation, heating, and electricity-generating fuel storage reserve
16     in the state;
17          ▸     specifies study requirements and considerations;
18          ▸     allows the Office of Energy Development to contract with consultants for the study;
19     and
20          ▸     requires a status update on the progress toward the study results and
21     recommendations.
22     Money Appropriated in this Bill:
23          None
24     Other Special Clauses:
25          None

26     Utah Code Sections Affected:
27     ENACTS:
28          79-6-404, Utah Code Annotated 1953

30     Be it enacted by the Legislature of the state of Utah:
31          Section 1. Section 79-6-404 is enacted to read:
32          79-6-404. Authority to study transportation, heating, and electricity-generating
33     fuel storage reserve.
34          (1) As used in this section, "energy fuel" means transportation, heating, and
35     electricity-generating fuels used in the state.
36          (2) The office shall conduct a study analyzing the potential benefits, risks, feasibility,
37     and requirements of establishing a Utah transportation, heating, and electricity-generating fuel
38     storage reserve.
39          (3) A study conducted under this section shall evaluate:
40          (a) current and predicted energy fuel consumption patterns and needs for the state;
41          (b) existing energy fuel infrastructure in the state, including refineries, powerplants,
42     pipelines, railroads, transmission lines, and storage facilities;
43          (c) strengths and vulnerabilities in the state's regional and national energy fuel supply
44     chains;
45          (d) impacts on energy fuel availability from natural disasters, accidents, or other
46     causes;
47          (e) feasibility of storage options to mitigate supply risks, including:
48          (i) optimal locations, including salt caverns located in the state;
49          (ii) ownership structures;
50          (iii) inventory management;
51          (iv) strategies for prioritizing fuel supplies in emergency situations;
52          (v) accessibility protocols; and
53          (vi) funding mechanisms;
54          (f) opportunities to work with industry to serve strategic initiatives and critical needs;
55     and
56          (g) economic modeling to analyze required state energy fuel reserve sizes and costs.

57          (4) The office may contract with independent experts and consultants to assist with the
58     study described in this section.
59          (5) The office shall present a status update on the study in a report to the Public
60     Utilities, Energy, and Technology Interim Committee by November 30, 2024.
61          Section 2. Effective date.
62          This bill takes effect on May 1, 2024.