Senator Kirk A. Cullimore proposes the following substitute bill:


1     
CRITICAL INFRASTRUCTURE AND MINING

2     
2024 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Casey Snider

5     
Senate Sponsor: Kirk A. Cullimore

6     

7     LONG TITLE
8     General Description:
9          This bill addresses issues related to critical infrastructure materials and mining.
10     Highlighted Provisions:
11          This bill:
12          ▸     defines terms;
13          ▸     requires a study by the Division of Oil, Gas, and Mining (division) of critical
14     infrastructure materials operations and related mining;
15          ▸     outlines who the division shall cooperate with in conducting the study;
16          ▸     requires reporting;
17          ▸     provides a sunset date; and
18          ▸     makes technical changes.
19     Money Appropriated in this Bill:
20          This bill appropriates in fiscal year 2024:
21          ▸     to Department of Natural Resources - Oil, Gas, and Mining - Minerals Reclamation
22     as a one-time appropriation:
23               •     from the General Fund Restricted - GFR - Division of Oil, Gas, and Mining,
24     One-time, $500,000
25     Other Special Clauses:

26          This bill provides a special effective date.
27     Utah Code Sections Affected:
28     AMENDS:
29          63I-1-217, as last amended by Laws of Utah 2023, Chapter 96
30     ENACTS:
31          17-41-102, Utah Code Annotated 1953
32     

33     Be it enacted by the Legislature of the state of Utah:
34          Section 1. Section 17-41-102 is enacted to read:
35          17-41-102. Study of critical infrastructure materials operations and related
36     mining.
37          (1) As used in this section:
38          (a) "Association of governments" means an association of political subdivisions
39     established pursuant to an interlocal agreement under Title 11, Chapter 13, Interlocal
40     Cooperation Act.
41          (b) "Metropolitan planning organization" means an organization established under 23
42     U.S.C. Sec. 134.
43          (c) "Related mining" means a mining use related to the critical infrastructure materials
44     operations industry.
45          (d) "Relevant area" means the area included within the boundaries of:
46          (i) a county of the first, second, or third class;
47          (ii) a metropolitan planning organization; or
48          (iii) an association of governments that has as a member a county of the first, second,
49     or third class.
50          (2) The division shall conduct a study of critical infrastructure materials operations and
51     related mining that includes:
52          (a) an inventory of critical infrastructure materials operations and related mining within
53     the relevant area as of the effective date of this bill, to include:
54          (i) both the number and location of critical infrastructure materials operations;
55          (ii) levels of production; and
56          (iii) the extent to which the critical infrastructure materials meet standards used by the

57     Department of Transportation;
58          (b) an inventory of new critical infrastructure materials operations and related mining
59     that may be created by either the establishment of critical infrastructure materials operations or
60     related mining on or after the effective date of this bill, or the expansion of existing critical
61     infrastructure materials operations or related mining on or after the effective date of this bill
62     taking into consideration:
63          (i) zoning; and
64          (ii) supply in the market;
65          (c) an assessment of projected future demand for critical infrastructure materials within
66     the relevant area, including:
67          (i) the effects of residential and commercial development; and
68          (ii) known planned projects, such as transportation projects;
69          (d) an analysis of the financial costs related to transporting and distributing critical
70     infrastructure materials to and from the relevant area;
71          (e) an analysis of the impacts of critical infrastructure materials operations and related
72     mining on local infrastructure within the relevant area and possible mitigation of those impacts;
73          (f) an analysis of the regulatory requirements faced by critical infrastructure materials
74     operations;
75          (g) the study of whether critical infrastructure materials operations should be licensed,
76     permitted, or otherwise authorized or regulated by the division, another state agency, or local
77     government; and
78          (h) any other issue the division finds relevant to the study of critical infrastructure
79     materials operations and related mining.
80          (3) In conducting the study, the division shall work cooperatively with:
81          (a) the Utah League of Cities and Towns;
82          (b) the Utah Association of Counties;
83          (c) the Department of Transportation;
84          (d) the critical infrastructure materials industry;
85          (e) the related mining industry;
86          (f) the real estate development industry;
87          (g) the home builders industry;

88          (h) a local metropolitan planning organization;
89          (i) at least two representatives from counties of the first, second, or third class; and
90          (j) at least two representatives from municipalities located within a county of the first,
91     second, or third class.
92          (4) The division shall complete the initial findings of the study required by this section
93     by no later than November 1, 2024, and report the division's initial findings to the Natural
94     Resources, Agriculture, and Environment Interim Committee by no later than the November
95     2024 interim meeting of that committee.
96          (5) The division shall complete the study required by this section and report the
97     division's findings to the Legislature by no later than the first day of the 2025 legislative annual
98     general session.
99          (6) Notwithstanding other provisions of this section, the division may not include in
100     the division's study any critical infrastructure materials resources within the relevant area if
101     those critical infrastructure materials resources are only extracted for use within an existing
102     mining operation and not offered for sale to the public.
103          Section 2. Section 63I-1-217 is amended to read:
104          63I-1-217. Repeal dates: Title 17.
105          (1) Title 17, Chapter 21a, Part 3, Administration and Standards, which creates the Utah
106     Electronic Recording Commission, is repealed July 1, 2022.
107          (2) In relation to Section 17-31-2, on July 1, 2023:
108          (a) Subsection 17-31-2(1)(g), which defines "economic diversification activity," is
109     repealed;
110          (b) Subsection 17-31-2(2)(a)(iii), relating to establishing and promoting an economic
111     diversification activity, is repealed;
112          (c) Subsection 17-31-2(7)(b)(i) is amended to read:
113          "(i) for a purpose described in Subsection (2)(a) and subject to the limitation described
114     in Subsection (7)(d), the greater of:"; and
115          (d) Subsection 17-31-2(7)(d)(ii), relating to a limitation on the expenditure of revenue
116     for an economic diversification activity, is repealed.
117          (3) Subsection 17-31-5.5(2)(a)(i)(E), relating to economic diversification activity, is
118     repealed July 1, 2023.

119          (4) Section 17-41-102, requiring a study of critical infrastructure materials operations
120     and related mining, is repealed July 1, 2026.
121          Section 3. FY 2024 Appropriation.
122          The following sums of money are appropriated for the fiscal year beginning July 1,
123     2023, and ending June 30, 2024. These are additions to amounts previously appropriated for
124     fiscal year 2024.
125          Subsection 3(a). Operating and Capital Budgets.
126          Under the terms and conditions of Title 63J, Chapter 1, Budgetary Procedures Act, the
127     Legislature appropriates the following sums of money from the funds or accounts indicated for
128     the use and support of the government of the state of Utah.
129     
ITEM 1
     To Department of Natural Resources - Oil, Gas, and Mining
130      From General Fund Restricted - GFR - Division of Oil, Gas, and
Mining, One-time
$500,000
131      Schedule of Programs:
132      Minerals Reclamation$500,000
133     Under the terms of Section 63J-1-603, the Legislature intends that the $500,000 one-time
134     General Fund appropriation provided by this item for the study of critical infrastructure
135     materials does not lapse at the close of FY 2024.
136          Section 4. Effective date.
137          (1) Except as provided in Subsection (2), if approved by two-thirds of all the members
138     elected to each house, this bill takes effect upon approval by the governor, or the day following
139     the constitutional time limit of Utah Constitution, Article VII, Section 8, without the governor's
140     signature, or in the case of a veto, the date of veto override.
141          (2) If this bill is not approved by two-thirds of all the members elected to each house,
142     this bill takes effect on May 1, 2024.