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7 LONG TITLE
8 General Description:
9 This bill modifies the state energy policy.
10 Highlighted Provisions:
11 This bill:
12 ▸ defines terms;
13 ▸ provides that the state energy policy:
14 • is focused on human well-being and quality of life;
15 • encourages the use of dispatchable energy resources;
16 • fosters innovation and development to meet future energy demand; and
17 • allows for market-based solutions; and
18 ▸ requires the Office of Energy Development to report annually to the Public Utilities,
19 Energy, and Technology Interim Committee regarding:
20 • development and implementation of the state energy plan; and
21 • the state energy plan's compliance with the state energy policy; and
22 ▸ makes technical changes.
23 Money Appropriated in this Bill:
24 None
25 Other Special Clauses:
26 None
27 Utah Code Sections Affected:
28 AMENDS:
29 79-6-102, as renumbered and amended by Laws of Utah 2021, Chapter 280
30 79-6-301, as last amended by Laws of Utah 2023, Chapters 186, 195
31 79-6-401, as last amended by Laws of Utah 2023, Chapter 196
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33 Be it enacted by the Legislature of the state of Utah:
34 Section 1. Section 79-6-102 is amended to read:
35 79-6-102. Definitions.
36 As used in this chapter:
37 (1) "Adequate" means an amount of energy sufficient to continuously meet demand
38 from under normal conditions, not including planned outages and temporary service
39 disruptions.
40 (2) "Affordable" means priced to be accessible to the population without causing
41 financial strain or compromising basic needs, quality of life, or well-being.
42 (3) "Appointing authority" means:
43 (a) on and before June 30, 2029, the governor; and
44 (b) on and after July 1, 2029, the executive director.
45 (4) "Clean" means minimizing adverse environmental impact and able to meet state
46 standards for environmental quality.
47 (5) "Dispatchable" means available for use on demand and generally available to be
48 delivered at a time and quantity of the operator's choosing.
49 (6) "Electrical corporation" means the same as that term is defined in Section 54-2-1.
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51 energy advisor appointed under Section 79-6-401.
52 (b) On and after July 1, 2029, "energy advisor" means the energy advisor appointed by
53 the executive director under Section 79-6-401.
54 (8) "Gas corporation" means the same as that term is defined in Section 54-2-1.
55 (9) "Intermittent" means available for use on a variable basis that is dependent on
56 elements outside of the control of the operator.
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58 79-6-401.
59 (11) (a) "Reliable" means supporting a system generally able to provide a continuous
60 supply and the resiliency to withstand sudden or unexpected disturbances.
61 (b) "Reliable" includes, for systems delivering electricity, the ability to provide
62 electricity at the proper voltage and frequency.
63 (12) "Secure" means protected against disruption, tampering, and external interference.
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71 (13) "Sustainable" means domestically sourced and able to provide affordable, reliable
72 energy in adequate quantities for current and future generations without compromising
73 economic prosperity or environmental health.
74 (14) "Governmental entity" means:
75 (a) any department, agency, board, commission, or other instrumentality of the state; or
76 (b) a political subdivision of the state.
77 Section 2. Section 79-6-301 is amended to read:
78 79-6-301. State energy policy.
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143 (1) It is the policy of the state that:
144 (a) (i) Utah will develop its energy resources and plan its energy future with a focus on
145 human well-being and quality of life, recognizing that reliable access to energy is vital for
146 human health, adaptation, economic growth, and prosperity;
147 (ii) Utah shall have energy resources that have the following attributes, listed in order
148 of priority:
149 (A) adequate;
150 (B) reliable;
151 (C) dispatchable;
152 (D) affordable;
153 (E) sustainable;
154 (F) secure; and
155 (G) clean; and
156 (iii) Utah shall encourage the construction and use of energy systems that balance the
157 criteria described in Subsection (1)(a)(ii) while giving priority to the criteria in the order they
158 are listed in Subsection (1)(a)(ii);
159 (b) (i) Utah shall foster market-based solutions to:
160 (A) meet current and future energy demands;
161 (B) protect proven technologies; and
162 (C) minimize political uncertainties in pursuing energy development and strategy;
163 (ii) Utah shall promote the development of a diverse energy portfolio, including:
164 (A) dispatchable energy resources, including natural gas, coal, oil, and hydroelectric;
165 (B) nuclear power generation technologies certified for use by the United States
166 Nuclear Regulatory Commission including molten salt reactors producing medical isotopes;
167 (C) intermittent energy resources, including solar and wind;
168 (D) clean energy sources by considering the environmental impact, including
169 emissions, of an energy resource throughout the entire life cycle of the energy resource; and
170 (E) increased refinery capacity; and
171 (iii) Utah shall encourage innovation in the development of energy resources,
172 including:
173 (A) emerging energy resources, including geothermal, biomass, biofuel, oil shale, and
174 oil sands;
175 (B) alternative transportation fuels and technologies; and
176 (C) energy storage, pumped storage, and other developing energy systems, including
177 hydrogen from all sources;
178 (c) (i) Utah shall streamline state regulatory processes to balance economic costs with
179 the level of review necessary to ensure protection of the state's interests; and
180 (ii) Utah shall encourage expedited federal action and will collaborate with federal
181 agencies to expedite review;
182 (d) (i) Utah shall maintain an environment that provides for stable consumer prices that
183 are as low as possible while providing producers and suppliers a fair return on investment,
184 recognizing that:
185 (A) economic prosperity is linked to the availability, reliability, and affordability of
186 consumer energy supplies; and
187 (B) investment will occur only when adequate financial returns can be realized;
188 (ii) Utah shall assess the utility value of each prospective energy resource to meet the
189 state's increasing demands including:
190 (A) a market analysis with and without government subsidies; and
191 (B) the total system impact of an energy resource;
192 (iii) Utah shall provide support for the innovation, research and development of new
193 energy resources and promote the development of resources and infrastructure sufficient to
194 meet the state's growing demand and to contribute to the regional and national energy supply,
195 thus reducing dependence on international energy materials; and
196 (iv) Utah shall allow market forces to drive prudent use of energy resources, although
197 incentives and other methods may be used to ensure the state's optimal development and use of
198 energy resources in the short- and long-term;
199 (e) Utah shall promote the development of resources, tools, and infrastructure to
200 enhance the state's ability to:
201 (i) maintain adequate supply, including reserves of proven and cost-effective resources
202 to meet demand;
203 (ii) ensure the state's energy independence by promoting and prioritizing the use of
204 energy resources generated within the state; and
205 (iii) respond effectively to significant disruptions to the state's energy generation,
206 energy delivery systems, or fuel supplies;
207 (f) (i) Utah shall research and develop in consideration of the complete life cycle of an
208 energy resource including mining, transportation, consumption, disposal, and reclamation;
209 (ii) Utah shall promote the development of a secure supply chain from resource
210 extraction to energy production and consumption; and
211 (iii) Utah shall, in accordance with the policy principles described in this section,
212 support the construction of infrastructure to encourage:
213 (A) energy development;
214 (B) diversified modes of energy transportation;
215 (C) greater access to domestic and international markets for Utah's resources; and
216 (D) advanced transmission systems;
217 (g) Utah shall pursue energy conservation, energy efficiency, and environmental
218 quality; and
219 (h) Utah shall promote training and education programs developed by the office,
220 focused on developing a comprehensive understanding of energy, including:
221 (i) programs addressing:
222 (A) supply and demand;
223 (B) energy related workforce development;
224 (C) energy efficiency; and
225 (D) energy conservation; and
226 (ii) energy education programs in grades kindergarten through grade 12.
227 (2) Governmental entities, the Public Service Commission, electric corporations, and
228 gas corporations shall conduct activities consistent with Subsection (1).
229 (3) A person may not file suit to challenge a state agency's action that is inconsistent
230 with Subsection (1).
231 Section 3. Section 79-6-401 is amended to read:
232 79-6-401. Office of Energy Development -- Creation -- Director -- Purpose --
233 Rulemaking regarding confidential information -- Fees -- Transition for employees.
234 (1) There is created an Office of Energy Development in the Department of Natural
235 Resources.
236 (2) (a) The energy advisor shall serve as the director of the office or, on or before June
237 30, 2029, appoint a director of the office.
238 (b) The director:
239 (i) shall, if the energy advisor appoints a director under Subsection (2)(a), report to the
240 energy advisor; and
241 (ii) may appoint staff as funding within existing budgets allows.
242 (c) The office may consolidate energy staff and functions existing in the state energy
243 program.
244 (3) The purposes of the office are to:
245 (a) serve as the primary resource for advancing energy and mineral development in the
246 state;
247 (b) implement:
248 (i) the state energy policy under Section 79-6-301; and
249 (ii) the governor's energy and mineral development goals and objectives;
250 (c) advance energy education, outreach, and research, including the creation of
251 elementary, higher education, and technical college energy education programs;
252 (d) promote energy and mineral development workforce initiatives; and
253 (e) support collaborative research initiatives targeted at Utah-specific energy and
254 mineral development.
255 (4) By following the procedures and requirements of Title 63J, Chapter 5, Federal
256 Funds Procedures Act, the office may:
257 (a) seek federal grants or loans;
258 (b) seek to participate in federal programs; and
259 (c) in accordance with applicable federal program guidelines, administer federally
260 funded state energy programs.
261 (5) The office shall perform the duties required by Sections 11-42a-106, 59-5-102,
262 59-7-614.7, 59-10-1029, 63C-26-202, Part 5, Alternative Energy Development Tax Credit Act,
263 and Part 6, High Cost Infrastructure Development Tax Credit Act.
264 (6) (a) For purposes of administering this section, the office may make rules, by
265 following Title 63G, Chapter 3, Utah Administrative Rulemaking Act, to maintain as
266 confidential, and not as a public record, information that the office receives from any source.
267 (b) The office shall maintain information the office receives from any source at the
268 level of confidentiality assigned by the source.
269 (7) The office may charge application, filing, and processing fees in amounts
270 determined by the office in accordance with Section 63J-1-504 as dedicated credits for
271 performing office duties described in this part.
272 (8) (a) An employee of the office is an at-will employee.
273 (b) For an employee of the office on July 1, 2021, the employee shall have the same
274 salary and benefit options the employee had when the office was part of the office of the
275 governor.
276 (9) (a) The office shall prepare a strategic energy plan to achieve the state's energy
277 policy, including:
278 (i) technological and infrastructure innovation needed to meet future energy demand
279 including:
280 (A) energy production technologies;
281 (B) battery and storage technologies;
282 (C) smart grid technologies;
283 (D) energy efficiency technologies; and
284 (E) any other developing energy technology, energy infrastructure planning, or
285 investments that will assist the state in meeting energy demand;
286 (ii) the state's efficient utilization and development of:
287 (A) nonrenewable energy resources, including natural gas, coal, clean coal, hydrogen,
288 oil, oil shale, and oil sands;
289 (B) renewable energy resources, including geothermal, solar, hydrogen, wind, biomass,
290 biofuel, and hydroelectric;
291 (C) nuclear power; and
292 (D) earth minerals;
293 (iii) areas of energy-related academic research;
294 (iv) specific areas of workforce development necessary for an evolving energy
295 industry;
296 (v) the development of partnerships with national laboratories; and
297 (vi) a proposed state budget for economic development and investment.
298 (b) In preparing the strategic energy plan, the office shall consult with stakeholders,
299 including representatives from:
300 (i) energy companies in the state;
301 (ii) private and public institutions of higher education within the state conducting
302 energy-related research; and
303 (iii) other state agencies.
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305 annually to the Public Utilities, Energy, and Technology Interim Committee [
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307 (i) progress towards creation and implementation of the strategic energy plan;
308 (ii) the plan's compliance with the state energy policy; and
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310 energy plan.
311 Section 4. Effective date.
312 This bill takes effect on May 1, 2024.