50
10-9a-401
10-19-102
10-19-201
10-19-202
10-19-301
11-13-218
11-17-2
11-42a-102
11-42a-103
11-58-102
11-58-203
11-59-102
11-59-202
11-65-101
11-65-203
11-68-201
17-27a-401
17-50-335
17B-1-202
17D-1-201
54-17-502
54-17-601
54-17-602
54-17-604
54-17-605
54-17-801
54-17-802
54-17-803
54-17-804
54-17-805
54-17-806
54-17-807
54-17-901
54-17-902
54-17-903
54-17-904
54-17-905
54-17-906
54-17-908
59-2-102
59-7-614
59-10-1014
59-10-1106
63A-5b-702
63H-1-201
63L-11-304
79-3-202
HB0241
HB0116
11-42a-102
CLEAN ENERGY AMENDMENTS
2024 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Carl R. Albrecht
Senate Sponsor: Derrin R. Owens
LONG TITLE
General Description:
This bill modifies provisions relating to clean energy.
Highlighted Provisions:
This bill:
changes the term renewable to clean where appropriate in statute.
Money Appropriated in this Bill:
None
Other Special Clauses:
This bill provides a coordination clause.
Utah Code Sections Affected:
AMENDS:
10-9a-401, as last amended by Laws of Utah 2023, Chapter 88
10-19-102, as last amended by Laws of Utah 2010, Chapters 119, 125 and 268
10-19-201, as enacted by Laws of Utah 2008, Chapter 374
10-19-202, as enacted by Laws of Utah 2008, Chapter 374
10-19-301, as enacted by Laws of Utah 2008, Chapter 374
11-13-218, as last amended by Laws of Utah 2016, Chapter 371
11-17-2, as last amended by Laws of Utah 2020, Chapter 354
11-42a-102, as last amended by Laws of Utah 2023, Chapter 16
11-42a-103, as enacted by Laws of Utah 2017, Chapter 470
11-58-102, as last amended by Laws of Utah 2023, Chapters 16, 259
11-58-203, as last amended by Laws of Utah 2022, Chapter 82
11-59-102, as last amended by Laws of Utah 2023, Chapters 16, 263
11-59-202, as last amended by Laws of Utah 2023, Chapter 139
11-65-101, as last amended by Laws of Utah 2023, Chapter 16
11-65-203, as enacted by Laws of Utah 2022, Chapter 59
11-68-201, as renumbered and amended by Laws of Utah 2023, Chapter 502
17-27a-401, as last amended by Laws of Utah 2023, Chapters 34, 88
17-50-335, as last amended by Laws of Utah 2020, Chapter 354
17B-1-202, as last amended by Laws of Utah 2023, Chapter 15
17D-1-201, as last amended by Laws of Utah 2021, Chapter 339
54-17-502, as enacted by Laws of Utah 2008, Chapter 374
54-17-601, as last amended by Laws of Utah 2010, Chapters 119, 125 and 268
54-17-602, as enacted by Laws of Utah 2008, Chapter 374
54-17-604, as enacted by Laws of Utah 2008, Chapter 374
54-17-605, as enacted by Laws of Utah 2008, Chapter 374
54-17-801, as last amended by Laws of Utah 2017, Chapter 409
54-17-802, as enacted by Laws of Utah 2012, Chapter 182
54-17-803, as enacted by Laws of Utah 2012, Chapter 182
54-17-804, as enacted by Laws of Utah 2012, Chapter 182
54-17-805, as enacted by Laws of Utah 2012, Chapter 182
54-17-806, as last amended by Laws of Utah 2020, Chapter 126
54-17-807, as last amended by Laws of Utah 2019, Chapter 136
54-17-901, as enacted by Laws of Utah 2019, Chapter 471
54-17-902, as enacted by Laws of Utah 2019, Chapter 471
54-17-903, as enacted by Laws of Utah 2019, Chapter 471
54-17-904, as enacted by Laws of Utah 2019, Chapter 471
54-17-905, as enacted by Laws of Utah 2019, Chapter 471
54-17-906, as enacted by Laws of Utah 2019, Chapter 471
54-17-908, as enacted by Laws of Utah 2019, Chapter 471
59-2-102, as last amended by Laws of Utah 2023, Chapter 16
59-7-614, as last amended by Laws of Utah 2023, Chapter 482
59-10-1014, as last amended by Laws of Utah 2021, Chapter 280
59-10-1106, as last amended by Laws of Utah 2023, Chapter 482
63A-5b-702, as last amended by Laws of Utah 2021, Chapter 382
63H-1-201, as last amended by Laws of Utah 2022, Chapter 274
63L-11-304, as renumbered and amended by Laws of Utah 2021, Chapter 382
79-3-202, as last amended by Laws of Utah 2022, Chapter 216
Utah Code Sections Affected by Coordination Clause:
AMENDS:
49
11-42a-102, as last amended by Laws of Utah 2023, Chapter 16
Be it enacted by the Legislature of the state of Utah:
Section 1, Section
10-9a-401 is amended to read:
10-9a-401. General plan required -- Content.
(1)To accomplish the purposes of this chapter, a municipality shall prepare and adopt a
comprehensive, long-range general plan for:
(a)present and future needs of the municipality; and
(b)growth and development of all or any part of the land within the municipality.
(2)The general plan may provide for:
(a)health, general welfare, safety, energy conservation, transportation, prosperity, civic
activities, aesthetics, and recreational, educational, and cultural opportunities;
(b)the reduction of the waste of physical, financial, or human resources that result from
either excessive congestion or excessive scattering of population;
(c)the efficient and economical use, conservation, and production of the supply of:
(i)food and water; and
(ii)drainage, sanitary, and other facilities and resources;
(d)the use of energy conservation and solar and
renewable
clean energy resources;
(e)the protection of urban development;
(f)if the municipality is a town, the protection or promotion of moderate income
housing;
(g)the protection and promotion of air quality;
(h)historic preservation;
(i)identifying future uses of land that are likely to require an expansion or significant
modification of services or facilities provided by an affected entity; and
(j)an official map.
(3)
(a)The general plan of a specified municipality, as defined in Section
10-9a-408,
shall include a moderate income housing element that meets the requirements of
Subsection
10-9a-403(2)(a)(iii).
(b)
(i)This Subsection (3)(b) applies to a municipality that is not a specified
municipality as of January 1, 2023.
(ii)As of January 1, if a municipality described in Subsection (3)(b)(i) changes from
one class to another or grows in population to qualify as a specified municipality
as defined in Section
10-9a-408, the municipality shall amend the municipality's
general plan to comply with Subsection (3)(a) on or before August 1 of the first
calendar year beginning on January 1 in which the municipality qualifies as a
specified municipality.
(4)Subject to Subsection
10-9a-403(2), the municipality may determine the
comprehensiveness, extent, and format of the general plan.
(5)Except for a city of the fifth class or a town, on or before December 31, 2025, a
municipality that has a general plan that does not include a water use and preservation
element that complies with Section
10-9a-403 shall amend the municipality's general
plan to comply with Section
10-9a-403.
Section 2, Section
10-19-102 is amended to read:
10-19-102. Definitions.
As used in this chapter:
(1)"Adjusted retail electric sales" means the total kilowatt-hours of retail electric sales of a
municipal electric utility to customers in this state in a calendar year, reduced by:
(a)the amount of those kilowatt-hours attributable to electricity generated or purchased
in that calendar year from qualifying zero carbon emissions generation and qualifying
carbon sequestration generation;
(b)the amount of those kilowatt-hours attributable to electricity generated or purchased
in that calendar year from generation located within the geographic boundary of the
Western Electricity Coordinating Council that derives its energy from one or more of
the following but that does not satisfy the definition of a
renewable
clean energy
source or that otherwise has not been used to satisfy Subsection
10-19-201(1):
(i)wind energy;
(ii)solar photovoltaic and solar thermal energy;
(iii)wave, tidal, and ocean thermal energy;
(iv)except for combustion of wood that has been treated with chemical preservatives
such as creosote, pentachlorophenol or chromated copper arsenate, biomass and
biomass byproducts, including:
(A)organic waste;
(B)forest or rangeland woody debris from harvesting or thinning conducted to
improve forest or rangeland ecological health and to reduce wildfire risk;
(C)agricultural residues;
(D)dedicated energy crops; and
(E)landfill gas or biogas produced from organic matter, wastewater, anaerobic
digesters, or municipal solid waste;
(v)geothermal energy;
(vi)hydro-electric energy; or
(vii)waste gas and waste heat capture or recovery; and
(c)the number of kilowatt-hours attributable to reductions in retail sales in that calendar
year from activities or programs promoting electric energy efficiency or conservation
or more efficient management of electric energy load.
(2)"Amount of kilowatt-hours attributable to electricity generated or purchased in that
calendar year from qualifying carbon sequestration generation," for qualifying carbon
sequestration generation, means the kilowatt-hours supplied by a facility during the
calendar year multiplied by the ratio of the amount of carbon dioxide captured from the
facility and sequestered to the sum of the amount of carbon dioxide captured from the
facility and sequestered plus the amount of carbon dioxide emitted from the facility
during the same calendar year.
(3)"Banked renewable energy certificate" means a bundled or unbundled renewable energy
certificate that is:
(a)not used in a calendar year to comply with this part or with a renewable energy
program in another state; and
(b)carried forward into a subsequent year.
(4)"Bundled renewable energy certificate" means a renewable energy certificate for
qualifying electricity that is acquired:
(a)by a municipal electric utility by a trade, purchase, or other transfer of electricity that
includes the renewable energy attributes of, or certificate that is issued for, the
electricity; or
(b)by a municipal electric utility by generating the electricity for which the renewable
energy certificate is issued.
(5)
"Clean energy source" means:
(a)
an electric generation facility or generation capability or upgrade that becomes
operational on or after January 1, 1995, that derives energy from one or more of the
following:
(i)
wind energy;
(ii)
solar photovoltaic and solar thermal energy;
(iii)
wave, tidal, and ocean thermal energy;
(iv)
except for combustion of wood that has been treated with chemical preservatives
such as creosote, pentachlorophenol or chromated copper arsenate, biomass and
biomass byproducts, including:
(A)
organic waste;
(B)
forest or rangeland woody debris from harvesting or thinning conducted to
improve forest or rangeland ecological health and to reduce wildfire risk;
(C)
agricultural residues;
(D)
dedicated energy crops; and
(E)
landfill gas or biogas produced from organic matter, wastewater, anaerobic
digesters, or municipal solid waste;
(v)
geothermal energy located outside the state;
(vi)
waste gas and waste heat capture or recovery, including methane gas from:
(A)
an abandoned coal mine; or
(B)
a coal degassing operation associated with a state-approved mine permit;
(vii)
efficiency upgrades to a hydroelectric facility, without regard to the date upon
which the facility became operational, if the upgrades become operational on or
after January 1, 1995;
(viii)
a compressed air energy storage process, if:
(A)
the process used to compress the air is a renewable energy source and the
associated renewable energy certificates are retired for the purpose of the
compressed air energy storage process; or
(B)
equivalent renewable energy certificates are obtained and retired for the
purpose of the compressed air energy storage process;
(ix)
municipal solid waste;
(x)
nuclear fuel; or
(xi)
carbon capture utilization and sequestration;
(b)
any of the following:
(i)
up to 50 average megawatts of electricity per year per municipal electric utility
from a certified low-impact hydroelectric facility, without regard to the date upon
which the facility becomes operational, if the facility is certified as a low-impact
hydroelectric facility on or after January 1, 1995, by a national certification
organization;
(ii)
geothermal energy if located within the state, without regard to the date upon
which the facility becomes operational; and
(iii)
hydroelectric energy if located within the state, without regard to the date upon
which the facility becomes operational;
(c)
hydrogen gas derived from any source of energy described in Subsection (5)(a) or (b);
(d)
if an electric generation facility employs multiple energy sources, that portion of the
electricity generated that is attributable to energy sources described in Subsections
(5)(a) through (c); and
(e)
any of the following located in the state and owned by a user of energy:
(i)
a demand side management measure, as defined by Subsection
54-7-12.8(1) with
the quantity of renewable energy certificates to which the user is entitled
determined by the equivalent energy saved by the measure;
(ii)
a solar thermal system that reduces the consumption of fossil fuels, with the
quantity of renewable energy certificates to which the user is entitled determined
by the equivalent kilowatt-hours saved, except to the extent the commission
determines otherwise with respect to net-metered energy;
(iii)
a solar photovoltaic system that reduces the consumption of fossil fuels with the
quantity of renewable energy certificates to which the user is entitled determined
by the total production of the system, except to the extent the commission
determines otherwise with respect to net-metered energy;
(iv)
a hydroelectric or geothermal facility, with the quantity of renewable energy
certificates to which the user is entitled determined by the total production of the
facility, except to the extent the commission determines otherwise with respect to
net-metered energy;
(v)
a waste gas or waste heat capture or recovery system other than from a combined
cycle combustion turbine that does not use waste gas or waste heat, with the
quantity of renewable energy certificates to which the user is entitled determined
by the total production of the system, except to the extent the commission
determines otherwise with respect to net-metered energy; and
(vi)
the station use of solar thermal energy, solar photovoltaic energy, hydroelectric
energy, geothermal energy, waste gas, or waste heat capture and recovery.
(5)
(6)
"Commission" means the Public Service Commission.
(6)
(7)
"Municipal electric utility" means any municipality that owns, operates, controls, or
manages a facility that provides electric power for a retail customer, whether domestic,
commercial, industrial, or otherwise.
(7)
(8)
"Qualifying carbon sequestration generation" means a fossil-fueled generating
facility located within the geographic boundary of the Western Electricity Coordinating
Council that:
(a)becomes operational or is retrofitted on or after January 1, 2008; and
(b)reduces carbon dioxide emissions into the atmosphere through permanent geological
sequestration or through other verifiably permanent reductions in carbon dioxide
emissions through the use of technology.
(8)
(9)
"Qualifying electricity" means electricity generated on or after January 1, 1995
from a renewable energy source if:
(a)
(i)the
renewable
clean energy source is located within the geographic boundary
of the Western Electricity Coordinating Council; or
(ii)the qualifying electricity is delivered to the transmission system of a municipal
electric utility or a delivery point designated by the municipal electric utility for
the purpose of subsequent delivery to the municipal electric utility; and
(b)the
renewable
clean energy attributes of the electricity are not traded, sold,
transferred, or otherwise used to satisfy another state's renewable energy program.
(9)
(10)
"Qualifying zero carbon emissions generation":
(a)means a generation facility located within the geographic boundary of the Western
Electricity Coordinating Council that:
(i)becomes operational on or after January 1, 2008; and
(ii)does not produce carbon as a byproduct of the generation process;
(b)includes generation powered by nuclear fuel; and
(c)does not include
renewable
clean energy sources used to satisfy a target established
under Section
10-19-201.
(10)
(11)
"Renewable energy certificate" means a certificate issued in accordance with the
requirements of Sections
10-19-202 and
54-17-603.
(11)
"Renewable energy source" means:
(a)
an electric generation facility or generation capability or upgrade that becomes
operational on or after January 1, 1995 that derives its energy from one or more of the
following:
(i)
wind energy;
(ii)
solar photovoltaic and solar thermal energy;
(iii)
wave, tidal, and ocean thermal energy;
(iv)
except for combustion of wood that has been treated with chemical preservatives such
as creosote, pentachlorophenol or chromated copper arsenate, biomass and biomass
byproducts, including:
(A)
organic waste;
(B)
forest or rangeland woody debris from harvesting or thinning conducted to improve
forest or rangeland ecological health and to reduce wildfire risk;
(C)
agricultural residues;
(D)
dedicated energy crops; and
(E)
landfill gas or biogas produced from organic matter, wastewater, anaerobic digesters,
or municipal solid waste;
(v)
geothermal energy located outside the state;
(vi)
waste gas and waste heat capture or recovery whether or not it is renewable, including
methane gas from:
(A)
an abandoned coal mine; or
(B)
a coal degassing operation associated with a state-approved mine permit;
(vii)
efficiency upgrades to a hydroelectric facility, without regard to the date upon which
the facility became operational, if the upgrades become operational on or after January
1, 1995;
(viii)
a compressed air energy storage process, if:
(A)
the process used to compress the air is a renewable energy source and the associated
renewable energy certificates are retired for the purpose of the compressed air energy
storage process; or
(B)
equivalent renewable energy certificates are obtained and retired for the purpose of
the compressed air energy storage process; or
(ix)
municipal solid waste;
(b)
any of the following:
(i)
up to 50 average megawatts of electricity per year per municipal electric utility from a
certified low-impact hydroelectric facility, without regard to the date upon which the
facility becomes operational, if the facility is certified as a low-impact hydroelectric
facility on or after January 1, 1995, by a national certification organization;
(ii)
geothermal energy if located within the state, without regard to the date upon which
the facility becomes operational; and
(iii)
hydroelectric energy if located within the state, without regard to the date upon which
the facility becomes operational;
(c)
hydrogen gas derived from any source of energy described in Subsection (11)(a) or (b);
(d)
if an electric generation facility employs multiple energy sources, that portion of the
electricity generated that is attributable to energy sources described in Subsections
(11)(a) through (c); and
(e)
any of the following located in the state and owned by a user of energy:
(i)
a demand side management measure, as defined by Subsection
54-7-12.8(1) with the
quantity of renewable energy certificates to which the user is entitled determined by the
equivalent energy saved by the measure;
(ii)
a solar thermal system that reduces the consumption of fossil fuels, with the quantity
of renewable energy certificates to which the user is entitled determined by the
equivalent kilowatt-hours saved, except to the extent the commission determines
otherwise with respect to net-metered energy;
(iii)
a solar photovoltaic system that reduces the consumption of fossil fuels with the
quantity of renewable energy certificates to which the user is entitled determined by the
total production of the system, except to the extent the commission determines otherwise
with respect to net-metered energy;
(iv)
a hydroelectric or geothermal facility, with the quantity of renewable energy
certificates to which the user is entitled determined by the total production of the
facility, except to the extent the commission determines otherwise with respect to
net-metered energy;
(v)
a waste gas or waste heat capture or recovery system other than from a combined
cycle combustion turbine that does not use waste gas or waste heat, with the quantity of
renewable energy certificates to which the user is entitled determined by the total
production of the system, except to the extent the commission determines otherwise with
respect to net-metered energy; and
(vi)
the station use of solar thermal energy, solar photovoltaic energy, hydroelectric
energy, geothermal energy, waste gas, or waste heat capture and recovery.
(12)"Unbundled renewable energy certificate" means a renewable energy certificate
associated with:
(a)qualifying electricity that is acquired by a municipal electric utility or other person
by trade, purchase, or other transfer without acquiring the electricity for which the
certificate was issued; or
(b)activities listed in Subsection
(11)(e)
(5)(e).
Section 3, Section
10-19-201 is amended to read:
10-19-201. Target amount of qualifying electricity -- Renewable energy
certificate -- Cost-effectiveness.
(1)
(a)To the extent that it is cost-effective to do so, beginning in 2025 the annual retail
electric sales in this state of each municipal electric utility shall consist of qualifying
electricity or renewable energy certificates in an amount equal to at least 20% of
adjusted retail electric sales.
(b)The amount under Subsection (1)(a) is computed based upon adjusted retail sales for
the calendar year commencing 36 months before the first day of the year for which
the target calculated under Subsection (1)(a) applies.
(c)Notwithstanding Subsections (1)(a) and (b) an increase in the annual target from one
year to the next is limited to the greater of:
(i)17,500 megawatt-hours; or
(ii)20% of the prior year's amount under Subsections (1)(a) and (b).
(2)Cost-effectiveness under Subsection (1) is determined using any criteria applicable to
the municipal electric utility's acquisition of a significant energy resource established by
the municipality's legislative body.
(3)This section does not require a municipal electric utility to:
(a)substitute qualifying electricity for electricity from a generation source owned or
contractually committed, or from a contractual commitment for a power purchase;
(b)enter into any additional electric sales commitment or any other arrangement for the
sale or other disposition of electricity that is not already, or would not be, entered into
by the municipal electric utility; or
(c)acquire qualifying electricity in excess of its adjusted retail electric sales.
(4)A municipal electrical corporation may combine the following to meet Subsection (1):
(a)qualifying electricity from a
renewable
clean energy source owned by the municipal
electric utility;
(b)qualifying electricity acquired by the municipal electric utility through trade, power
purchase, or other transfer; and
(c)a bundled or unbundled renewable energy certificate, including a banked renewable
energy certificate.
(5)To meet Subsection (1), a municipal electric utility may also count:
(a)qualifying electricity generated or acquired or renewable energy certificates acquired
for a program permitting the municipal electric utility's customers to voluntarily
contribute to a renewable energy source; and
(b)electricity allocated to this state that is produced by a hydroelectric facility becoming
operational after December 31, 2007
, if the hydroelectric facility is located in any
state in which the municipal electric utility, or the interlocal entity with which the
municipal electric utility has a contract, provides electric service.
Section 4, Section
10-19-202 is amended to read:
10-19-202. Renewable energy certificate -- Use to satisfy other requirements.
(1)A municipal electric utility may buy, sell, trade, or otherwise transfer a renewable
energy certificate issued or recognized under Section
54-17-603.
(2)For the purpose of satisfying Subsection
10-19-201(1) and the issuance of a renewable
energy certificate under Section
54-17-603:
(a)a
renewable
clean energy source located in this state that derives its energy from
solar photovoltaic and solar thermal energy shall be credited for 2.4 kilowatt-hours of
qualifying electricity for each 1.0 kilowatt-hour generated; and
(b)if two or more municipal electric utilities jointly own a renewable energy resource,
each municipal electric utility shall be credited with 1.0 kilowatt-hour of qualifying
electricity for 1.0 kilowatt-hour of the renewable energy resource allocated to the
municipal electric utility by contract, unless the contract otherwise provides.
(3)A renewable energy certificate:
(a)may be used only once to satisfy Subsection
10-19-201(1);
(b)may be used to satisfy Subsection
10-19-201(1) and the qualifying electricity on
which the renewable energy certificate is based may be used to satisfy any federal
renewable energy requirement; and
(c)may not be used if it has been used to satisfy any other state's renewable energy
requirement.
Section 5, Section
10-19-301 is amended to read:
10-19-301. Plans and reports.
(1)A municipal electric utility shall develop and maintain a plan for implementing
Subsection
10-19-201(1).
(2)A progress report concerning a plan under Subsection (1) shall be filed with the
municipality's legislative body by January 1 of each of the years 2010, 2015, 2020, and
2024.
(3)The progress report under Subsection (2) shall contain:
(a)the actual and projected amount of qualifying electricity through 2025;
(b)the source of qualifying electricity;
(c)an estimate of the cost of achieving the target;
(d)a discussion of conditions impacting the
renewable
clean energy source and
qualifying electricity markets; and
(e)any recommendation for a suggested legislative or program change.
(4)The plan and progress report required by Subsections (1) and (2) may include
procedures that will be used by the municipal electric utility to identify and select any
cost-effective
renewable
clean energy resource and qualifying electricity.
(5)By July 1, 2026, the municipal electric utility shall file a final progress report
demonstrating:
(a)how Subsection
10-19-201(1) is satisfied for the year 2025; or
(b)the reason why Subsection
10-19-201(1) is not satisfied for the year 2025, if it is not
satisfied.
(6)The plan and any progress report filed under this section shall be publicly available at
the municipal legislative body's office.
Section 6, Section
11-13-218 is amended to read:
11-13-218. Authority of public agencies or interlocal entities to issue bonds --
Applicable provisions.
(1)A public agency may, in the same manner as it may issue bonds for its individual
acquisition of a facility or improvement or for constructing, improving, or extending a
facility or improvement, issue bonds to:
(a)acquire an interest in a jointly owned facility or improvement, a combination of a
jointly owned facility or improvement, or any other facility or improvement; or
(b)pay all or part of the cost of constructing, improving, or extending a jointly owned
facility or improvement, a combination of a jointly owned facility or improvement, or
any other facility or improvement.
(2)
(a)An interlocal entity may issue bonds or notes under a resolution, trust indenture,
or other security instrument for the purpose of:
(i)financing its facilities or improvements; or
(ii)providing for or financing an energy efficiency upgrade, a
renewable
clean
energy system, or electric vehicle charging infrastructure in accordance with Title
11, Chapter 42, Assessment Area Act.
(b)The bonds or notes may be sold at public or private sale, mature at such times and
bear interest at such rates, and have such other terms and security as the entity
determines.
(c)The bonds or notes described in this Subsection (2) are not a debt of any public
agency that is a party to the agreement.
(3)The governing board may, by resolution, delegate to one or more officers of the
interlocal entity or to a committee of designated members of the governing board the
authority to:
(a)in accordance with and within the parameters set forth in the resolution, approve the
final interest rate, price, principal amount, maturity, redemption features, or other
terms of a bond or note; and
(b)approve and execute all documents relating to the issuance of the bond or note.
(4)Bonds and notes issued under this chapter are declared to be negotiable instruments and
their form and substance need not comply with the Uniform Commercial Code.
(5)
(a)An interlocal entity shall issue bonds in accordance with, as applicable:
(i)Chapter 14, Local Government Bonding Act;
(ii)Chapter 27, Utah Refunding Bond Act;
(iii)this chapter; or
(iv)any other provision of state law that authorizes issuance of bonds by a public
body.
(b)An interlocal entity is a public body as defined in Section
11-30-2.
Section 7, Section
11-17-2 is amended to read:
11-17-2. Definitions.
As used in this chapter:
(1)"Bonds" means bonds, notes, or other evidences of indebtedness.
(2)
"Clean energy system" means a product, system, device, or interacting group of devices
that is permanently affixed to real property and that produces energy from clean
resources, including:
(a)
a photovoltaic system;
(b)
a solar thermal system;
(c)
a wind system;
(d)
a geothermal system, including:
(i)
a direct-use system; or
(ii)
a ground source heat pump system;
(e)
a micro-hydro system;
(f)
nuclear fuel;
(g)
carbon capture utilization and sequestration; or
(h)
another clean energy system approved by the governing body.
(2)
(3)
"Energy efficiency upgrade" means an improvement that is permanently affixed to
real property and that is designed to reduce energy consumption, including:
(a)insulation in:
(i)a wall, ceiling, roof, floor, or foundation; or
(ii)a heating or cooling distribution system;
(b)an insulated window or door, including:
(i)a storm window or door;
(ii)a multiglazed window or door;
(iii)a heat-absorbing window or door;
(iv)a heat-reflective glazed and coated window or door;
(v)additional window or door glazing;
(vi)a window or door with reduced glass area; or
(vii)other window or door modifications that reduce energy loss;
(c)an automatic energy control system;
(d)in a building or a central plant, a heating, ventilation, or air conditioning and
distribution system;
(e)caulking or weatherstripping;
(f)a light fixture that does not increase the overall illumination of a building unless an
increase is necessary to conform with the applicable building code;
(g)an energy recovery system;
(h)a daylighting system;
(i)measures to reduce the consumption of water, through conservation or more efficient
use of water, including:
(i)installation of a low-flow toilet or showerhead;
(ii)installation of a timer or timing system for a hot water heater; or
(iii)installation of a rain catchment system; or
(j)any other modified, installed, or remodeled fixture that is approved as a utility
cost-savings measure by the governing body.
(3)
(4)
"Finance" or "financing" includes the issuing of bonds by a municipality, county, or
state university for the purpose of using a portion, or all or substantially all of the
proceeds to pay for or to reimburse the user, lender, or the user or lender's designee for
the costs of the acquisition of facilities of a project, or to create funds for the project
itself where appropriate, whether these costs are incurred by the municipality, the
county, the state university, the user, or a designee of the user. If title to or in these
facilities at all times remains in the user, the bonds of the municipality or county shall be
secured by a pledge of one or more notes, debentures, bonds, other secured or unsecured
debt obligations of the user or lender, or the sinking fund or other arrangement as in the
judgment of the governing body is appropriate for the purpose of assuring repayment of
the bond obligations to investors in accordance with their terms.
(4)
(5)
"Governing body" means:
(a)for a county, city, town, or metro township, the legislative body of the county, city,
town, or metro township;
(b)for the military installation development authority created in Section
63H-1-201, the
board, as defined in Section
63H-1-102;
(c)for a state university except as provided in Subsection
(4)(d)
(5)(d), the board or
body having the control and supervision of the state university; and
(d)for a nonprofit corporation or foundation created by and operating under the auspices
of a state university, the board of directors or board of trustees of that corporation or
foundation.
(5)
(6)
(a)"Industrial park" means land, including all necessary rights, appurtenances,
easements, and franchises relating to it, acquired and developed by a municipality,
county, or state university for the establishment and location of a series of sites for
plants and other buildings for industrial, distribution, and wholesale use.
(b)"Industrial park" includes the development of the land for an industrial park under
this chapter or the acquisition and provision of water, sewerage, drainage, street,
road, sidewalk, curb, gutter, street lighting, electrical distribution, railroad, or
docking facilities, or any combination of them, but only to the extent that these
facilities are incidental to the use of the land as an industrial park.
(6)
(7)
"Lender" means a trust company, savings bank, savings and loan association, bank,
credit union, or any other lending institution that lends, loans, or leases proceeds of a
financing to the user or a user's designee.
(7)
(8)
"Mortgage" means a mortgage, trust deed, or other security device.
(8)
(9)
"Municipality" means any incorporated city, town, or metro township in the state,
including cities or towns operating under home rule charters.
(9)
(10)
"Pollution" means any form of environmental pollution including water pollution,
air pollution, pollution caused by solid waste disposal, thermal pollution, radiation
contamination, or noise pollution.
(10)
(11)
(a)"Project" means:
(i)an industrial park, land, interest in land, building, structure, facility, system,
fixture, improvement, appurtenance, machinery, equipment, or any combination
of them, whether or not in existence or under construction:
(A)that is suitable for industrial, manufacturing, warehousing, research, business,
and professional office building facilities, commercial, shopping services,
food, lodging, low income rental housing, recreational, or any other business
purposes;
(B)that is suitable to provide services to the general public;
(C)that is suitable for use by any corporation, person, or entity engaged in health
care services, including hospitals, nursing homes, extended care facilities,
facilities for the care of persons with a physical or mental disability, and
administrative and support facilities; or
(D)that is suitable for use by a state university for the purpose of aiding in the
accomplishment of its authorized academic, scientific, engineering, technical,
and economic development functions;
(ii)any land, interest in land, building, structure, facility, system, fixture,
improvement, appurtenance, machinery, equipment, or any combination of them,
used by any individual, partnership, firm, company, corporation, public utility,
association, trust, estate, political subdivision, state agency, or any other legal
entity, or its legal representative, agent, or assigns, for the reduction, abatement, or
prevention of pollution, including the removal or treatment of any substance in
process material, if that material would cause pollution if used without the
removal or treatment;
(iii)an energy efficiency upgrade;
(iv)a
renewable
clean energy system;
(v)facilities, machinery, or equipment, the manufacturing and financing of which
will maintain or enlarge domestic or foreign markets for Utah industrial products;
or
(vi)any economic development or new venture investment fund to be raised other
than from:
(A)municipal or county general fund money;
(B)money raised under the taxing power of any county or municipality; or
(C)money raised against the general credit of any county or municipality.
(b)"Project" does not include any property, real, personal, or mixed, for the purpose of
the construction, reconstruction, improvement, or maintenance of a public utility as
defined in Section
54-2-1.
(11)
"Renewable energy system" means a product, system, device, or interacting group of
devices that is permanently affixed to real property and that produces energy from
renewable resources, including:
(a)
a photovoltaic system;
(b)
a solar thermal system;
(c)
a wind system;
(d)
a geothermal system, including:
(i)
a direct-use system; or
(ii)
a ground source heat pump system;
(e)
a micro-hydro system; or
(f)
another renewable energy system approved by the governing body.
(12)"State university" means an institution of higher education as described in Section
53B-2-101
and includes any nonprofit corporation or foundation created by and
operating under their authority.
(13)"User" means the person, whether natural or corporate, who will occupy, operate,
maintain, and employ the facilities of, or manage and administer a project after the
financing, acquisition, or construction of it, whether as owner, manager, purchaser,
lessee, or otherwise.
Section 8, Section
11-42a-102 is amended to read:
11-42a-102. Definitions.
(1)"Air quality standards" means that a vehicle's emissions are equal to or cleaner than the
standards established in bin 4 Table S04-1, of 40 C.F.R. 86.1811-04(c)(6).
(2)
(a)"Assessment" means the assessment that a local entity or the C-PACE district
levies on private property under this chapter to cover the costs of an energy
efficiency upgrade, a
renewable
clean energy system, or an electric vehicle charging
infrastructure.
(b)"Assessment" does not constitute a property tax but shares the same priority lien as a
property tax.
(3)"Assessment fund" means a special fund that a local entity establishes under Section
11-42a-206
.
(4)"Benefitted property" means private property within an energy assessment area that
directly benefits from improvements.
(5)"Bond" means an assessment bond and a refunding assessment bond.
(6)
(a)
"Clean energy system" means a product, system, device, or interacting group of
devices that is permanently affixed to commercial or industrial real property not
located in the certified service area of a distribution electrical cooperative, as that
term is defined in Section
54-2-1, and:
(i)
produces energy from clean resources, including:
(A)
a photovoltaic system;
(B)
a solar thermal system;
(C)
a wind system;
(D)
a geothermal system, including a generation system, a direct-use system, or a
ground source heat pump system;
(E)
a micro-hydro system;
(F)
a biofuel system;
(G)
energy derived from nuclear fuel; or
(H)
any other clean source system that the governing body of the local entity
approves;
(ii)
stores energy, including:
(A)
a battery storage system; or
(B)
any other energy storing system that the governing body or chief executive
officer of a local entity approves; or
(iii)
any improvement that relates physically or functionally to any of the products,
systems, or devices listed in Subsection (6)(a)(i) or (ii).
(b)
"Clean energy system" does not include a system described in Subsection (6)(a)(i) if
the system provides energy to property outside the energy assessment area, unless the
system:
(i)
(A)
existed before the creation of the energy assessment area; and
(B)
beginning before January 1, 2017, provides energy to property outside of the
area that became the energy assessment area; or
(ii)
provides energy to property outside the energy assessment area under an
agreement with a public electrical utility that is substantially similar to agreements
for other renewable energy systems that are not funded under this chapter.
(6)
(7)
(a)"Commercial or industrial real property" means private real property used
directly or indirectly or held for one of the following purposes or activities,
regardless of whether the purpose or activity is for profit:
(i)commercial;
(ii)mining;
(iii)agricultural;
(iv)industrial;
(v)manufacturing;
(vi)trade;
(vii)professional;
(viii)a private or public club;
(ix)a lodge;
(x)a business; or
(xi)a similar purpose.
(b)"Commercial or industrial real property" includes:
(i)private real property that is used as or held for dwelling purposes and contains:
(A)more than four rental units; or
(B)one or more owner-occupied or rental condominium units affiliated with a
hotel; and
(ii)real property owned by:
(A)the military installation development authority, created in Section
63H-1-201;
or
(B)the Utah Inland Port Authority, created in Section
11-58-201.
(7)
(8)
"Contract price" means:
(a)up to 100% of the cost of installing, acquiring, refinancing, or reimbursing for an
improvement, as determined by the owner of the property benefitting from the
improvement; or
(b)the amount payable to one or more contractors for the assessment, design,
engineering, inspection, and construction of an improvement.
(8)
(9)
"C-PACE" means commercial property assessed clean energy.
(9)
(10)
"C-PACE district" means the statewide authority established in Section
11-42a-106
to implement the C-PACE Act in collaboration with governing bodies,
under the direction of OED.
(10)
(11)
"Electric vehicle charging infrastructure" means equipment that is:
(a)permanently affixed to commercial or industrial real property; and
(b)designed to deliver electric energy to a qualifying electric vehicle or a qualifying
plug-in hybrid vehicle.
(11)
(12)
"Energy assessment area" means an area:
(a)within the jurisdictional boundaries of a local entity that approves an energy
assessment area or, if the C-PACE district or a state interlocal entity levies the
assessment, the C-PACE district or the state interlocal entity;
(b)containing only the commercial or industrial real property of owners who have
voluntarily consented to an assessment under this chapter for the purpose of
financing the costs of improvements that benefit property within the energy
assessment area; and
(c)in which the proposed benefitted properties in the area are:
(i)contiguous; or
(ii)located on one or more contiguous or adjacent tracts of land that would be
contiguous or adjacent property but for an intervening right-of-way, including a
sidewalk, street, road, fixed guideway, or waterway.
(12)
(13)
"Energy assessment bond" means a bond:
(a)issued under Section
11-42a-401; and
(b)payable in part or in whole from assessments levied in an energy assessment area.
(13)
(14)
"Energy assessment lien" means a lien on property within an energy assessment
area that arises from the levy of an assessment in accordance with Section
11-42a-301.
(14)
(15)
"Energy assessment ordinance" means an ordinance that a local entity adopts
under Section
11-42a-201 that:
(a)designates an energy assessment area;
(b)levies an assessment on benefitted property within the energy assessment area; and
(c)if applicable, authorizes the issuance of energy assessment bonds.
(15)
(16)
"Energy assessment resolution" means one or more resolutions adopted by a
local entity under Section
11-42a-201 that:
(a)designates an energy assessment area;
(b)levies an assessment on benefitted property within the energy assessment area; and
(c)if applicable, authorizes the issuance of energy assessment bonds.
(16)
(17)
"Energy efficiency upgrade" means an improvement that is:
(a)permanently affixed to commercial or industrial real property; and
(b)designed to reduce energy or water consumption, including:
(i)insulation in:
(A)a wall, roof, floor, or foundation; or
(B)a heating and cooling distribution system;
(ii)a window or door, including:
(A)a storm window or door;
(B)a multiglazed window or door;
(C)a heat-absorbing window or door;
(D)a heat-reflective glazed and coated window or door;
(E)additional window or door glazing;
(F)a window or door with reduced glass area; or
(G)other window or door modifications;
(iii)an automatic energy control system;
(iv)in a building or a central plant, a heating, ventilation, or air conditioning and
distribution system;
(v)caulk or weatherstripping;
(vi)a light fixture that does not increase the overall illumination of a building, unless
an increase is necessary to conform with the applicable building code;
(vii)an energy recovery system;
(viii)a daylighting system;
(ix)measures to reduce the consumption of water, through conservation or more
efficient use of water, including installation of:
(A)low-flow toilets and showerheads;
(B)timer or timing systems for a hot water heater; or
(C)rain catchment systems;
(x)a modified, installed, or remodeled fixture that is approved as a utility cost-saving
measure by the governing body or executive of a local entity;
(xi)measures or other improvements to effect seismic upgrades;
(xii)structures, measures, or other improvements to provide automated parking or
parking that reduces land use;
(xiii)the extension of an existing natural gas distribution company line;
(xiv)an energy efficient elevator, escalator, or other vertical transport device;
(xv)any other improvement that the governing body or executive of a local entity
approves as an energy efficiency upgrade; or
(xvi)any improvement that relates physically or functionally to any of the
improvements listed in Subsections
(16)(b)(i)
(17)(b)(i) through (xv).
(17)
(18)
"Governing body" means:
(a)for a county, city, town, or metro township, the legislative body of the county, city,
town, or metro township;
(b)for a special district, the board of trustees of the special district;
(c)for a special service district:
(i)if no administrative control board has been appointed under Section
17D-1-301,
the legislative body of the county, city, town, or metro township that established
the special service district; or
(ii)if an administrative control board has been appointed under Section
17D-1-301,
the administrative control board of the special service district;
(d)for the military installation development authority created in Section
63H-1-201, the
board, as that term is defined in Section
63H-1-102; and
(e)for the Utah Inland Port Authority, created in Section
11-58-201, the board, as
defined in Section
11-58-102.
(18)
(19)
"Improvement" means a publicly or privately owned energy efficiency upgrade,
renewable
clean energy system, or electric vehicle charging infrastructure that:
(a)a property owner has requested; or
(b)has been or is being installed on a property for the benefit of the property owner.
(19)
(20)
"Incidental refunding costs" means any costs of issuing a refunding assessment
bond and calling, retiring, or paying prior bonds, including:
(a)legal and accounting fees;
(b)charges of financial advisors, escrow agents, certified public accountant verification
entities, and trustees;
(c)underwriting discount costs, printing costs, and the costs of giving notice;
(d)any premium necessary in the calling or retiring of prior bonds;
(e)fees to be paid to the local entity to issue the refunding assessment bond and to
refund the outstanding prior bonds;
(f)any other costs that the governing body determines are necessary and proper to incur
in connection with the issuance of a refunding assessment bond; and
(g)any interest on the prior bonds that is required to be paid in connection with the
issuance of the refunding assessment bond.
(20)
(21)
"Installment payment date" means the date on which an installment payment of
an assessment is payable.
(21)
(22)
"Jurisdictional boundaries" means:
(a)for the C-PACE district or any state interlocal entity, the boundaries of the state; and
(b)for each local entity, the boundaries of the local entity.
(22)
(23)
(a)"Local entity" means:
(i)a county, city, town, or metro township;
(ii)a special service district, a special district, or an interlocal entity as that term is
defined in Section
11-13-103;
(iii)a state interlocal entity;
(iv)the military installation development authority, created in Section
63H-1-201;
(v)the Utah Inland Port Authority, created in Section
11-58-201; or
(vi)any political subdivision of the state.
(b)"Local entity" includes the C-PACE district solely in connection with:
(i)the designation of an energy assessment area;
(ii)the levying of an assessment; and
(iii)the assignment of an energy assessment lien to a third-party lender under Section
11-42a-302
.
(23)
(24)
"Local entity obligations" means energy assessment bonds and refunding
assessment bonds that a local entity issues.
(24)
(25)
"OED" means the Office of Energy Development created in Section
79-6-401.
(25)
(26)
"OEM vehicle" means the same as that term is defined in Section
19-1-402.
(26)
(27)
"Overhead costs" means the actual costs incurred or the estimated costs to be
incurred in connection with an energy assessment area, including:
(a)appraisals, legal fees, filing fees, facilitation fees, and financial advisory charges;
(b)underwriting fees, placement fees, escrow fees, trustee fees, and paying agent fees;
(c)publishing and mailing costs;
(d)costs of levying an assessment;
(e)recording costs; and
(f)all other incidental costs.
(27)
(28)
"Parameters resolution" means a resolution or ordinance that a local entity adopts
in accordance with Section
11-42a-201.
(28)
(29)
"Prior bonds" means the energy assessment bonds refunded in part or in whole
by a refunding assessment bond.
(29)
(30)
"Prior energy assessment ordinance" means the ordinance levying the
assessments from which the prior bonds are payable.
(30)
(31)
"Prior energy assessment resolution" means the resolution levying the
assessments from which the prior bonds are payable.
(31)
(32)
"Property" includes real property and any interest in real property, including
water rights and leasehold rights.
(32)
(33)
"Public electrical utility" means a large-scale electric utility as that term is
defined in Section
54-2-1.
(33)
(34)
"Qualifying electric vehicle" means a vehicle that:
(a)meets air quality standards;
(b)is not fueled by natural gas;
(c)draws propulsion energy from a battery with at least 10 kilowatt hours of capacity;
and
(d)is an OEM vehicle except that the vehicle is fueled by a fuel described in Subsection
(33)(c)
(34)(c).
(34)
(35)
"Qualifying plug-in hybrid vehicle" means a vehicle that:
(a)meets air quality standards;
(b)is not fueled by natural gas or propane;
(c)has a battery capacity that meets or exceeds the battery capacity described in
Subsection 30D(b)(3), Internal Revenue Code; and
(d)is fueled by a combination of electricity and:
(i)diesel fuel;
(ii)gasoline; or
(iii)a mixture of gasoline and ethanol.
(35)
(36)
"Reduced payment obligation" means the full obligation of an owner of property
within an energy assessment area to pay an assessment levied on the property after the
local entity has reduced the assessment because of the issuance of a refunding
assessment bond, in accordance with Section
11-42a-403.
(36)
(37)
"Refunding assessment bond" means an assessment bond that a local entity
issues under Section
11-42a-403 to refund, in part or in whole, energy assessment bonds.
(37)
(a)
"Renewable energy system" means a product, system, device, or interacting group
of devices that is permanently affixed to commercial or industrial real property not
located in the certified service area of a distribution electrical cooperative, as that term is
defined in Section
54-2-1, and:
(i)
produces energy from renewable resources, including:
(A)
a photovoltaic system;
(B)
a solar thermal system;
(C)
a wind system;
(D)
a geothermal system, including a generation system, a direct-use system, or a ground
source heat pump system;
(E)
a microhydro system;
(F)
a biofuel system; or
(G)
any other renewable source system that the governing body of the local entity
approves;
(ii)
stores energy, including:
(A)
a battery storage system; or
(B)
any other energy storing system that the governing body or chief executive officer of
a local entity approves; or
(iii)
any improvement that relates physically or functionally to any of the products,
systems, or devices listed in Subsection (37)(a)(i) or (ii).
(b)
"Renewable energy system" does not include a system described in Subsection
(37)(a)(i) if the system provides energy to property outside the energy assessment area,
unless the system:
(i)
(A)
existed before the creation of the energy assessment area; and
(B)
beginning before January 1, 2017, provides energy to property outside of the area that
became the energy assessment area; or
(ii)
provides energy to property outside the energy assessment area under an agreement
with a public electrical utility that is substantially similar to agreements for other
renewable energy systems that are not funded under this chapter.
(38)"Special district" means a special district under Title 17B, Limited Purpose Local
Government Entities - Special Districts.
(39)"Special service district" means the same as that term is defined in Section
17D-1-102.
(40)"State interlocal entity" means:
(a)an interlocal entity created under Chapter 13, Interlocal Cooperation Act, by two or
more counties, cities, towns, or metro townships that collectively represent at least a
majority of the state's population; or
(b)an entity that another state authorized, before January 1, 2017, to issue bonds, notes,
or other obligations or refunding obligations to finance or refinance projects in the
state.
(41)"Third-party lender" means a trust company, savings bank, savings and loan
association, bank, credit union, or any other entity that provides loans directly to
property owners for improvements authorized under this chapter.
Section 9, Section
11-42a-103 is amended to read:
11-42a-103. No limitation on other local entity powers -- Conflict with other
statutory provisions.
(1)This chapter does not limit a power that a local entity has under other applicable law to:
(a)make an improvement or provide a service;
(b)create a district;
(c)levy an assessment or tax; or
(d)issue a bond or a refunding bond.
(2)If there is a conflict between a provision of this chapter and any other statutory
provision, the provision of this chapter governs.
(3)After January 1, 2017, a local entity or the C-PACE district may create an energy
assessment area within the certificated service territory of a public electrical utility for
the installation of a
renewable
clean energy system with a nameplate rating of:
(a)no more than 2.0 megawatts; or
(b)more than 2.0 megawatts to serve load that the public electrical utility does not
already serve.
Section 10, Section
11-58-102 is amended to read:
11-58-102. Definitions.
As used in this chapter:
(1)"Authority" means the Utah Inland Port Authority, created in Section
11-58-201.
(2)"Authority jurisdictional land" means land within the authority boundary delineated:
(a)in the electronic shapefile that is the electronic component of H.B. 2001, Utah Inland
Port Authority Amendments, 2018 Second Special Session; and
(b)beginning April 1, 2020, as provided in Subsection
11-58-202(3).
(3)"Base taxable value" means:
(a)
(i)except as provided in Subsection (3)(a)(ii), for a project area that consists of
the authority jurisdictional land, the taxable value of authority jurisdictional land
in calendar year 2018; and
(ii)for an area described in Section
11-58-600.7, the taxable value of that area in
calendar year 2017; or
(b)for a project area that consists of land outside the authority jurisdictional land, the
taxable value of property within any portion of a project area, as designated by board
resolution, from which the property tax differential will be collected, as shown upon
the assessment roll last equalized before the year in which the authority adopts a
project area plan for that area.
(4)"Board" means the authority's governing body, created in Section
11-58-301.
(5)"Business plan" means a plan designed to facilitate, encourage, and bring about
development of the authority jurisdictional land to achieve the goals and objectives
described in Subsection
11-58-203(1), including the development and establishment of
an inland port.
(6)"Contaminated land" means land:
(a)within a project area; and
(b)that contains hazardous materials, as defined in Section
19-6-302, hazardous
substances, as defined in Section
19-6-302, or landfill material on, in, or under the
land.
(7)"Development" means:
(a)the demolition, construction, reconstruction, modification, expansion, or
improvement of a building, utility, infrastructure, landscape, parking lot, park, trail,
recreational amenity, or other facility, including public infrastructure and
improvements; and
(b)the planning of, arranging for, or participation in any of the activities listed in
Subsection (7)(a).
(8)"Development project" means a project for the development of land within a project
area.
(9)"Inland port" means one or more sites that:
(a)contain multimodal facilities, intermodal facilities, or other facilities that:
(i)are related but may be separately owned and managed; and
(ii)together are intended to:
(A)allow global trade to be processed and altered by value-added services as
goods move through the supply chain;
(B)provide a regional merging point for transportation modes for the distribution
of goods to and from ports and other locations in other regions;
(C)provide cargo-handling services to allow freight consolidation and
distribution, temporary storage, customs clearance, and connection between
transport modes; and
(D)provide international logistics and distribution services, including freight
forwarding, customs brokerage, integrated logistics, and information systems;
and
(b)may include a satellite customs clearance terminal, an intermodal facility, a customs
pre-clearance for international trade, or other facilities that facilitate, encourage, and
enhance regional, national, and international trade.
(10)"Inland port use" means a use of land:
(a)for an inland port;
(b)that directly implements or furthers the purposes of an inland port, as stated in
Subsection (9);
(c)that complements or supports the purposes of an inland port, as stated in Subsection
(9); or
(d)that depends upon the presence of the inland port for the viability of the use.
(11)"Intermodal facility" means a facility for transferring containerized cargo between rail,
truck, air, or other transportation modes.
(12)"Landfill material" means garbage, waste, debris, or other materials disposed of or
placed in a landfill.
(13)"Multimodal facility" means a hub or other facility for trade combining any
combination of rail, trucking, air cargo, and other transportation services.
(14)"Nonvoting member" means an individual appointed as a member of the board under
Subsection
11-58-302(3) who does not have the power to vote on matters of authority
business.
(15)"Project area" means:
(a)the authority jurisdictional land, subject to Section
11-58-605; or
(b)land outside the authority jurisdictional land, whether consisting of a single
contiguous area or multiple noncontiguous areas, described in a project area plan or
draft project area plan, where the development project set forth in the project area
plan or draft project area plan takes place or is proposed to take place.
(16)"Project area budget" means a multiyear projection of annual or cumulative revenues
and expenses and other fiscal matters pertaining to the project area.
(17)"Project area plan" means a written plan that, after its effective date, guides and
controls the development within a project area.
(18)"Property tax" includes a privilege tax and each levy on an ad valorem basis on
tangible or intangible personal or real property.
(19)"Property tax differential":
(a)means the difference between:
(i)the amount of property tax revenues generated each tax year by all taxing entities
from a project area, using the current assessed value of the property; and
(ii)the amount of property tax revenues that would be generated from that same area
using the base taxable value of the property; and
(b)does not include property tax revenue from:
(i)a county additional property tax or multicounty assessing and collecting levy
imposed in accordance with Section
59-2-1602;
(ii)a judgment levy imposed by a taxing entity under Section
59-2-1328 or
59-2-1330;
or
(iii)a levy imposed by a taxing entity under Section
11-14-310 to pay for a general
obligation bond.
(20)"Public entity" means:
(a)the state, including each department, division, or other agency of the state; or
(b)a county, city, town, metro township, school district, special district, special service
district, interlocal cooperation entity, community reinvestment agency, or other
political subdivision of the state, including the authority.
(21)
(a)"Public infrastructure and improvements" means infrastructure, improvements,
facilities, or buildings that:
(i)
(A)benefit the public and are owned by a public entity or a utility; or
(B)benefit the public and are publicly maintained or operated by a public entity; or
(ii)
(A)are privately owned;
(B)benefit the public;
(C)as determined by the board, provide a substantial benefit to the development
and operation of a project area; and
(D)are built according to applicable county or municipal design and safety
standards.
(b)"Public infrastructure and improvements" includes:
(i)facilities, lines, or systems that provide:
(A)water, chilled water, or steam; or
(B)sewer, storm drainage, natural gas, electricity, energy storage,
renewable
clean
energy, microgrids, or telecommunications service;
(ii)streets, roads, curb, gutter, sidewalk, walkways, solid waste facilities, parking
facilities, rail lines, intermodal facilities, multimodal facilities, and public
transportation facilities;
(iii)an inland port; and
(iv)infrastructure, improvements, facilities, or buildings that are developed as part of
a remediation project.
(22)"Remediation" includes:
(a)activities for the cleanup, rehabilitation, and development of contaminated land; and
(b)acquiring an interest in land within a remediation project area.
(23)"Remediation differential" means property tax differential generated from a
remediation project area.
(24)"Remediation project" means a project for the remediation of contaminated land that:
(a)is owned by:
(i)the state or a department, division, or other instrumentality of the state;
(ii)an independent entity, as defined in Section
63E-1-102; or
(iii)a political subdivision of the state; and
(b)became contaminated land before the owner described in Subsection (24)(a) obtained
ownership of the land.
(25)"Remediation project area" means a project area consisting of contaminated land that
is or is expected to become the subject of a remediation project.
(26)"Shapefile" means the digital vector storage format for storing geometric location and
associated attribute information.
(27)"Taxable value" means the value of property as shown on the last equalized assessment
roll.
(28)"Taxing entity":
(a)means a public entity that levies a tax on property within a project area; and
(b)does not include a public infrastructure district that the authority creates under Title
17D, Chapter 4, Public Infrastructure District Act.
(29)"Voting member" means an individual appointed or designated as a member of the
board under Subsection
11-58-302(2).
Section 11, Section
11-58-203 is amended to read:
11-58-203. Policies and objectives of the authority -- Additional duties of the
authority.
(1)The policies and objectives of the authority are to:
(a)maximize long-term economic benefits to the area, the region, and the state;
(b)maximize the creation of high-quality jobs;
(c)respect and maintain sensitivity to the unique natural environment of areas in
proximity to the authority jurisdictional land and land in other authority project areas;
(d)improve air quality and minimize resource use;
(e)respect existing land use and other agreements and arrangements between property
owners within the authority jurisdictional land and within other authority project
areas and applicable governmental authorities;
(f)promote and encourage development and uses that are compatible with or
complement uses in areas in proximity to the authority jurisdictional land or land in
other authority project areas;
(g)take advantage of the authority jurisdictional land's strategic location and other
features, including the proximity to transportation and other infrastructure and
facilities, that make the authority jurisdictional land attractive to:
(i)businesses that engage in regional, national, or international trade; and
(ii)businesses that complement businesses engaged in regional, national, or
international trade;
(h)facilitate the transportation of goods;
(i)coordinate trade-related opportunities to export Utah products nationally and
internationally;
(j)support and promote land uses on the authority jurisdictional land and land in other
authority project areas that generate economic development, including rural
economic development;
(k)establish a project of regional significance;
(l)facilitate an intermodal facility;
(m)support uses of the authority jurisdictional land for inland port uses, including
warehousing, light manufacturing, and distribution facilities;
(n)facilitate an increase in trade in the region and in global commerce;
(o)promote the development of facilities that help connect local businesses to potential
foreign markets for exporting or that increase foreign direct investment;
(p)encourage all class 5 though 8 designated truck traffic entering the authority
jurisdictional land to meet the heavy-duty highway compression-ignition diesel
engine and urban bus exhaust emission standards for year 2007 and later;
(q)encourage the development and use of cost-efficient
renewable
clean energy in
project areas;
(r)aggressively pursue world-class businesses that employ cutting-edge technologies to
locate within a project area; and
(s)pursue land remediation and development opportunities for publicly owned land to
add value to a project area.
(2)In fulfilling its duties and responsibilities relating to the development of the authority
jurisdictional land and land in other authority project areas and to achieve and
implement the development policies and objectives under Subsection (1), the authority
shall:
(a)work to identify funding sources, including federal, state, and local government
funding and private funding, for capital improvement projects in and around the
authority jurisdictional land and land in other authority project areas and for an inland
port;
(b)review and identify land use and zoning policies and practices to recommend to
municipal land use policymakers and administrators that are consistent with and will
help to achieve:
(i)the policies and objectives stated in Subsection (1); and
(ii)the mutual goals of the state and local governments that have authority
jurisdictional land with their boundaries with respect to the authority jurisdictional
land;
(c)consult and coordinate with other applicable governmental entities to improve and
enhance transportation and other infrastructure and facilities in order to maximize the
potential of the authority jurisdictional land to attract, retain, and service users who
will help maximize the long-term economic benefit to the state; and
(d)pursue policies that the board determines are designed to avoid or minimize negative
environmental impacts of development.
(3)The board may consider the emissions profile of road, yard, or rail vehicles:
(a)in determining access by those vehicles to facilities that the authority owns or
finances; or
(b)in setting fees applicable to those vehicles for the use of facilities that the authority
owns or finances.
Section 12, Section
11-59-102 is amended to read:
11-59-102. Definitions.
As used in this chapter:
(1)"Authority" means the Point of the Mountain State Land Authority, created in Section
11-59-201
.
(2)"Board" means the authority's board, created in Section
11-59-301.
(3)"Development":
(a)means the construction, reconstruction, modification, expansion, or improvement of
a building, utility, infrastructure, landscape, parking lot, park, trail, recreational
amenity, or other facility, including:
(i)the demolition or preservation or repurposing of a building, infrastructure, or other
facility;
(ii)surveying, testing, locating existing utilities and other infrastructure, and other
preliminary site work; and
(iii)any associated planning, design, engineering, and related activities; and
(b)includes all activities associated with:
(i)marketing and business recruiting activities and efforts;
(ii)leasing, or selling or otherwise disposing of, all or any part of the point of the
mountain state land; and
(iii)planning and funding for mass transit infrastructure to service the point of the
mountain state land.
(4)"Facilities division" means the Division of Facilities Construction and Management,
created in Section
63A-5b-301.
(5)"New correctional facility" means the state correctional facility being developed in Salt
Lake City to replace the state correctional facility in Draper.
(6)"Point of the mountain state land" means the approximately 700 acres of state-owned
land in Draper, including land used for the operation of a state correctional facility until
completion of the new correctional facility and state-owned land in the vicinity of the
current state correctional facility.
(7)"Public entity" means:
(a)the state, including each department, division, or other agency of the state; or
(b)a county, city, town, metro township, school district, special district, special service
district, interlocal cooperation entity, community reinvestment agency, or other
political subdivision of the state, including the authority.
(8)"Publicly owned infrastructure and improvements":
(a)means infrastructure, improvements, facilities, or buildings that:
(i)benefit the public; and
(ii)
(A)are owned by a public entity or a utility; or
(B)are publicly maintained or operated by a public entity; and
(b)includes:
(i)facilities, lines, or systems that provide:
(A)water, chilled water, or steam; or
(B)sewer, storm drainage, natural gas, electricity, energy storage,
renewable
clean
energy, microgrids, or telecommunications service;
(ii)streets, roads, curb, gutter, sidewalk, walkways, solid waste facilities, parking
facilities, and public transportation facilities; and
(iii)greenspace, parks, trails, recreational amenities, or other similar facilities.
(9)"Taxing entity" means the same as that term is defined in Section
59-2-102.
Section 13, Section
11-59-202 is amended to read:
11-59-202. Authority powers.
(1)The authority may:
(a)as provided in this chapter, plan, manage, and implement the development of the
point of the mountain state land, including the ongoing operation of facilities on the
point of the mountain state land;
(b)undertake, or engage a consultant to undertake, any study, effort, or activity the
board considers appropriate to assist or inform the board about any aspect of the
proposed development of the point of the mountain state land, including the best
development model and financial projections relevant to the authority's efforts to
fulfill its duties and responsibilities under this section and Section
11-59-203;
(c)sue and be sued;
(d)enter into contracts generally, including a contract for the sharing of records under
Section
63G-2-206;
(e)buy, obtain an option upon, or otherwise acquire any interest in real or personal
property, as necessary to accomplish the duties and responsibilities of the authority,
including an interest in real property, apart from point of the mountain state land, or
personal property, outside point of the mountain state land, for publicly owned
infrastructure and improvements, if the board considers the purchase, option, or other
interest acquisition to be necessary for fulfilling the authority's development
objectives;
(f)sell, convey, grant, dispose of by gift, or otherwise dispose of any interest in real or
personal property;
(g)enter into a lease agreement on real or personal property, either as lessee or lessor;
(h)provide for the development of the point of the mountain state land under one or
more contracts, including the development of publicly owned infrastructure and
improvements and other infrastructure and improvements on or related to the point of
the mountain state land;
(i)exercise powers and perform functions under a contract, as authorized in the contract;
(j)accept financial or other assistance from any public or private source for the
authority's activities, powers, and duties, and expend any funds so received for any of
the purposes of this chapter;
(k)borrow money, contract with, or accept financial or other assistance from the federal
government, a public entity, or any other source for any of the purposes of this
chapter and comply with any conditions of the loan, contract, or assistance;
(l)subject to Subsection (2), issue bonds to finance the undertaking of any development
objectives of the authority, including bonds under Title 11, Chapter 17, Utah
Industrial Facilities and Development Act, and bonds under Title 11, Chapter 42,
Assessment Area Act;
(m)hire employees, including contract employees, in addition to or in place of staff
provided under Section
11-59-304;
(n)transact other business and exercise all other powers provided for in this chapter;
(o)enter into a development agreement with a developer of some or all of the point of
the mountain state land;
(p)provide for or finance an energy efficiency upgrade, a
renewable
clean energy
system, or electric vehicle charging infrastructure as defined in Section
11-42a-102,
in accordance with Title 11, Chapter 42a, Commercial Property Assessed Clean
Energy Act;
(q)exercise powers and perform functions that the authority is authorized by statute to
exercise or perform;
(r)enter into one or more interlocal agreements under Title 11, Chapter 13, Interlocal
Cooperation Act, with one or more local government entities for the delivery of
services to the point of the mountain state land;
(s)enter into an agreement with the federal government or an agency of the federal
government, as the board considers necessary or advisable, to enable or assist the
authority to exercise its powers or fulfill its duties and responsibilities under this
chapter;
(t)provide funding for the development of publicly owned infrastructure and
improvements or other infrastructure and improvements on or related to the point of
the mountain state land; and
(u)impose impact fees under Title 11, Chapter 36a, Impact Fees Act, and other fees
related to development activities.
(2)The authority may not issue bonds under this part unless the board first:
(a)adopts a parameters resolution for the bonds that sets forth:
(i)the maximum:
(A)amount of bonds;
(B)term; and
(C)interest rate; and
(ii)the expected security for the bonds; and
(b)submits the parameters resolution for review and recommendation to the State
Finance Review Commission created in Section
63C-25-201.
(3)No later than 60 days after the closing day of any bonds, the authority shall report the
bonds issuance, including the amount of the bonds, terms, interest rate, and security, to:
(a)the Executive Appropriations Committee; and
(b)the State Finance Review Commission created in Section
63C-25-201.
Section 14, Section
11-65-101 is amended to read:
11-65-101. Definitions.
As used in this chapter:
(1)"Adjacent political subdivision" means a political subdivision of the state with a
boundary that abuts the lake authority boundary or includes lake authority land.
(2)"Board" means the lake authority's governing body, created in Section
11-65-301.
(3)"Lake authority" means the Utah Lake Authority, created in Section
11-65-201.
(4)"Lake authority boundary" means the boundary:
(a)defined by recorded boundary settlement agreements between private landowners
and the Division of Forestry, Fire, and State Lands; and
(b)that separates privately owned land from Utah Lake sovereign land.
(5)"Lake authority land" means land on the lake side of the lake authority boundary.
(6)"Management" means work to coordinate and facilitate the improvement of Utah Lake,
including work to enhance the long-term viability and health of Utah Lake and to
produce economic, aesthetic, recreational, environmental, and other benefits for the
state, consistent with the strategies, policies, and objectives described in this chapter.
(7)"Management plan" means a plan to conceptualize, design, facilitate, coordinate,
encourage, and bring about the management of the lake authority land to achieve the
policies and objectives described in Section
11-65-203.
(8)"Nonvoting member" means an individual appointed as a member of the board under
Subsection
11-65-302(6) who does not have the power to vote on matters of lake
authority business.
(9)"Project area" means an area that is identified in a project area plan as the area where
the management described in the project area plan will occur.
(10)"Project area budget" means a multiyear projection of annual or cumulative revenues
and expenses and other fiscal matters pertaining to a project area.
(11)"Project area plan" means a written plan that, after the plan's effective date, manages
activity within a project area within the scope of a management plan.
(12)"Public entity" means:
(a)the state, including each department, division, or other agency of the state; or
(b)a county, city, town, metro township, school district, special district, special service
district, interlocal cooperation entity, community reinvestment agency, or other
political subdivision of the state.
(13)"Publicly owned infrastructure and improvements":
(a)means infrastructure, improvements, facilities, or buildings that:
(i)benefit the public; and
(ii)
(A)are owned by a public entity or a utility; or
(B)are publicly maintained or operated by a public entity;
and
(b)includes:
(i)facilities, lines, or systems that provide:
(A)water, chilled water, or steam; or
(B)sewer, storm drainage, natural gas, electricity, energy storage,
renewable
clean
energy, microgrids, or telecommunications service; and
(ii)streets, roads, curbs, gutters, sidewalks, walkways, solid waste facilities, parking
facilities, and public transportation facilities.
(14)"Sovereign land" means land:
(a)lying below the ordinary high water mark of a navigable body of water at the date of
statehood; and
(b)owned by the state by virtue of the state's sovereignty.
(15)"Utah Lake" includes all waters of Utah Lake and all land, whether or not submerged
under water, within the lake authority boundary.
(16)"Voting member" means an individual appointed as a member of the board under
Subsection
11-65-302(2).
Section 15, Section
11-65-203 is amended to read:
11-65-203. Policies and objectives of the lake authority -- Additional duties of the
lake authority.
(1)The policies and objectives of the lake authority are to:
(a)protect and improve:
(i)the quality of Utah Lake's water, consistent with the Clean Water Act, 33 U.S.C.
Sec. 1251 et seq., and Title 19, Chapter 5, Water Quality Act;
(ii)the beneficial and public trust uses of Utah Lake;
(iii)Utah Lake's environmental quality; and
(iv)the quality of Utah Lake's lakebed and sediments;
(b)enhance the recreational opportunities afforded by Utah Lake;
(c)enhance long-term economic benefits to the area, the region, and the state;
(d)respect and maintain sensitivity to the unique natural environment of areas in and
around the lake authority boundary;
(e)improve air quality and minimize resource use;
(f)comply with existing land use and other agreements and arrangements between
property owners and applicable governmental authorities;
(g)promote and encourage management and uses that are compatible with or
complement the public trust and uses in areas in proximity to Utah Lake;
(h)take advantage of Utah Lake's strategic location and other features that make Utah
Lake attractive:
(i)to residents for recreational purposes;
(ii)for tourism and leisure; and
(iii)for business opportunities;
(i)encourage the development and use of cost-efficient
renewable
clean energy in
project areas;
(j)as consistent with applicable public trust, support and promote land uses on land
within the lake authority boundary and land in adjacent political subdivisions that
generate economic development, including rural economic development;
(k)respect and not interfere with water rights or the operation of water facilities or water
projects associated with Utah Lake;
(l)respect and maintain sensitivity to the unique Native American history, historical
sites, and artifacts within and around the lake authority boundary; and
(m)protect the ability of the Provo airport to operate and grow, consistent with
applicable environmental regulations, recognizing the significant state investment in
the airport and the benefits that a thriving airport provides to the quality of life and
the economy.
(2)In fulfilling the lake authority's duties and responsibilities relating to the management of
Utah Lake and to achieve and implement the management policies and objectives under
Subsection (1), the lake authority shall:
(a)work to identify funding sources, including federal, state, and local government
funding and private funding, for capital improvement projects in and around Utah
Lake;
(b)review and identify land use and zoning policies and practices to recommend to land
use policymakers and administrators of adjoining municipalities that are consistent
with and will help to achieve the policies and objectives stated in Subsection (1);
(c)consult and coordinate with other applicable governmental entities to improve and
enhance transportation and other infrastructure and facilities in order to maximize the
potential of Utah Lake to attract, retain, and service users who will help enhance the
long-term economic benefit to the state; and
(d)pursue policies that the board determines are designed to avoid or minimize negative
environmental impacts of management.
(3)The lake authority shall respect:
(a)a permit issued by a governmental entity applicable to Utah Lake;
(b)a governmental entity's easement or other interest affecting Utah Lake;
(c)an agreement between governmental entities, including between a state agency and
the federal government, relating to Utah Lake; and
(d)the public trust doctrine as applicable to land within the lake authority boundary.
(4)
(a)The lake authority may use lake authority money to encourage, incentivize, fund,
or require development that:
(i)mitigates noise, air pollution, light pollution, surface and groundwater pollution,
and other negative environmental impacts;
(ii)includes building or project designs that minimize negative impacts to the June
Sucker, avian species, and other wildlife;
(iii)mitigates traffic congestion; or
(iv)uses high efficiency building construction and operation.
(b)In consultation with the municipality in which management is expected to occur and
applicable state agencies, the lake authority shall establish minimum mitigation and
environmental standards for management occurring on land within the lake authority
boundary.
Section 16, Section
11-68-201 is amended to read:
11-68-201. State Fair Park Authority -- Legal status -- Powers.
(1)There is created the State Fair Park Authority.
(2)The authority is:
(a)an independent, nonprofit, separate body corporate and politic, with perpetual
succession;
(b)a political subdivision of the state; and
(c)a public corporation, as defined in Section
63E-1-102.
(3)
(a)The fair corporation is dissolved and ceases to exist, subject to any winding down
and other actions necessary for a transition to the authority.
(b)The authority:
(i)replaces and is the successor to the fair corporation;
(ii)succeeds to all rights, obligations, privileges, immunities, and assets of the fair
corporation; and
(iii)shall fulfill and perform all contractual and other obligations of the fair
corporation.
(c)The board shall take all actions necessary and appropriate to wind down the affairs of
the fair corporation as quickly as practicable and to make a transition from the fair
corporation to the authority.
(4)The authority shall:
(a)manage, supervise, and control:
(i)all activities relating to the annual exhibition described in Subsection (4)(j); and
(ii)except as otherwise provided by statute, all state expositions, including setting the
time, place, and purpose of any state exposition;
(b)for public entertainment, displays, and exhibits or similar events held at the state fair
park:
(i)provide, sponsor, or arrange the events;
(ii)publicize and promote the events; and
(iii)secure funds to cover the cost of the exhibits from:
(A)private contributions;
(B)public appropriations;
(C)admission charges; and
(D)other lawful means;
(c)acquire and designate exposition sites;
(d)use generally accepted accounting principles in accounting for the authority's assets,
liabilities, and operations;
(e)seek corporate sponsorships for the state fair park or for individual buildings or
facilities on fair park land;
(f)work with county and municipal governments, the Salt Lake Convention and
Visitor's Bureau, the Utah Office of Tourism, and other entities to develop and
promote expositions and the use of fair park land;
(g)develop and maintain a marketing program to promote expositions and the use of fair
park land;
(h)in accordance with provisions of this chapter, operate and maintain state-owned
buildings and facilities on fair park land, including the physical appearance and
structural integrity of those buildings and facilities;
(i)prepare an economic development plan for the fair park land;
(j)hold an annual exhibition on fair park land that:
(i)is called the state fair or a similar name;
(ii)promotes and highlights agriculture throughout the state;
(iii)includes expositions of livestock, poultry, agricultural, domestic science,
horticultural, floricultural, mineral and industrial products, manufactured articles,
and domestic animals that, in the board's opinion, will best stimulate agricultural,
industrial, artistic, and educational pursuits and the sharing of talents among the
people of the state;
(iv)includes the award of premiums for the best specimens of the exhibited articles
and animals;
(v)permits competition by livestock exhibited by citizens of other states and
territories of the United States; and
(vi)is arranged according to plans approved by the board;
(k)fix the conditions of entry to the annual exhibition described in Subsection (4)(j); and
(l)publish a list of premiums that will be awarded at the annual exhibition described in
Subsection (4)(j) for the best specimens of exhibited articles and animals.
(5)In addition to the annual exhibition described in Subsection (4)(j), the authority may
hold other exhibitions of livestock, poultry, agricultural, domestic science, horticultural,
floricultural, mineral and industrial products, manufactured articles, and domestic
animals that, in the corporation's opinion, will best stimulate agricultural, industrial,
artistic, and educational pursuits and the sharing of talents among the people of the state.
(6)The authority may:
(a)employ advisers, consultants, and agents, including financial experts and
independent legal counsel, and fix their compensation;
(b)
(i)participate in the state's Risk Management Fund created under Section
63A-4-201
or any captive insurance company created by the risk manager; or
(ii)procure insurance against any loss in connection with the authority's property and
other assets;
(c)receive and accept aid or contributions of money, property, labor, or other things of
value from any source, including any grants or appropriations from any department,
agency, or instrumentality of the United States or the state;
(d)hold, use, loan, grant, and apply that aid and those contributions to carry out the
purposes of the authority, subject to the conditions, if any, upon which the aid and
contributions are made;
(e)enter into management agreements with any person or entity for the performance of
the authority's functions or powers;
(f)establish accounts and procedures that are necessary to budget, receive, disburse,
account for, and audit all funds received, appropriated, or generated;
(g)subject to Subsection (8), lease any of the state-owned buildings or facilities located
on fair park land;
(h)sponsor events as approved by the board;
(i)subject to Subsection (11), acquire any interest in real property that the board
considers necessary or advisable to further a purpose of the authority or facilitate the
authority's fulfillment of a duty under this chapter;
(j)in accordance with Title 11, Chapter 42a, Commercial Property Assessed Clean
Energy Act, provide for or finance an energy efficiency upgrade, a
renewable
clean
energy system, or electric vehicle charging infrastructure, as those terms are defined
in Section
11-42a-102; and
(k)enter into one or more agreements to develop the fair park land.
(7)The authority shall comply with:
(a)Title 51, Chapter 5, Funds Consolidation Act;
(b)Title 51, Chapter 7, State Money Management Act;
(c)Title 52, Chapter 4, Open and Public Meetings Act;
(d)Title 63G, Chapter 2, Government Records Access and Management Act;
(e)the provisions of Section
67-3-12;
(f)Title 63G, Chapter 6a, Utah Procurement Code, except for a procurement for:
(i)entertainment provided at the state fair park;
(ii)judges for competitive exhibits; or
(iii)sponsorship of an event on fair park land; and
(g)the legislative approval requirements for capital development projects established in
Section
63A-5b-404.
(8)
(a)Before the authority executes a lease described in Subsection (6)(g) with a term
of 10 or more years, the authority shall:
(i)submit the proposed lease to the division for the division's approval or rejection;
and
(ii)if the division approves the proposed lease, submit the proposed lease to the
Executive Appropriations Committee for the Executive Appropriation
Committee's review and recommendation in accordance with Subsection (8)(b).
(b)The Executive Appropriations Committee shall review a proposed lease submitted in
accordance with Subsection (8)(a) and recommend to the authority that the authority:
(i)execute the proposed lease, either as proposed or with changes recommended by
the Executive Appropriations Committee; or
(ii)reject the proposed lease.
(9)
(a)Subject to Subsection (9)(b), a department, division, or other instrumentality of
the state and a political subdivision of the state shall cooperate with the authority to
the fullest extent possible to provide whatever support, information, or other
assistance the authority requests that is reasonably necessary to help the authority
fulfill the authority's duties and responsibilities under this chapter.
(b)The division shall provide assistance and resources to the authority as the division
director determines is appropriate.
(10)The authority may share authority revenue with a municipality in which the fair park
land is located, as provided in an agreement between the authority and the municipality,
to pay for municipal services provided by the municipality.
(11)
(a)As used in this Subsection (11), "new land" means land that, if acquired by the
authority, would result in the authority having acquired over three acres of land more
than the land described in Subsection
11-68-101(9)(a).
(b)In conjunction with the authority's acquisition of new land, the authority shall enter
an agreement with the municipality in which the new land is located.
(c)To provide funds for the cost of increased municipal services that the municipality
will provide to the new land, an agreement under Subsection (11)(b) shall:
(i)provide for:
(A)the payment of impact fees to the municipality for development activity on the
new land; and
(B)the authority's sharing with the municipality tax revenue generated from the
new land; and
(ii)be structured in a way that recognizes the needs of the authority and furthers
mutual goals of the authority and the municipality.
Section 17, Section
17-27a-401 is amended to read:
17-27a-401. General plan required -- Content -- Resource management plan --
Provisions related to radioactive waste facility.
(1)To accomplish the purposes of this chapter, a county shall prepare and adopt a
comprehensive, long-range general plan:
(a)for present and future needs of the county;
(b)
(i)for growth and development of all or any part of the land within the
unincorporated portions of the county; or
(ii)if a county has designated a mountainous planning district, for growth and
development of all or any part of the land within the mountainous planning
district; and
(c)as a basis for communicating and coordinating with the federal government on land
and resource management issues.
(2)To promote health, safety, and welfare, the general plan may provide for:
(a)health, general welfare, safety, energy conservation, transportation, prosperity, civic
activities, aesthetics, and recreational, educational, and cultural opportunities;
(b)the reduction of the waste of physical, financial, or human resources that result from
either excessive congestion or excessive scattering of population;
(c)the efficient and economical use, conservation, and production of the supply of:
(i)food and water; and
(ii)drainage, sanitary, and other facilities and resources;
(d)the use of energy conservation and solar and
renewable
clean energy resources;
(e)the protection of urban development;
(f)the protection and promotion of air quality;
(g)historic preservation;
(h)identifying future uses of land that are likely to require an expansion or significant
modification of services or facilities provided by an affected entity; and
(i)an official map.
(3)
(a)
(i)The general plan of a specified county, as defined in Section
17-27a-408,
shall include a moderate income housing element that meets the requirements of
Subsection
17-27a-403(2)(a)(iii).
(ii)
(A)This Subsection (3)(a)(ii) applies to a county that does not qualify as a
specified county as of January 1, 2023.
(B)As of January 1, if a county described in Subsection (3)(a)(ii)(A) changes
from one class to another or grows in population to qualify as a specified
county as defined in Section
17-27a-408, the county shall amend the county's
general plan to comply with Subsection (3)(a)(i) on or before August 1 of the
first calendar year beginning on January 1 in which the county qualifies as a
specified county.
(iii)A county described in Subsection (3)(a)(ii)(B) shall send a copy of the county's
amended general plan to the association of governments, established pursuant to
an interlocal agreement under Title 11, Chapter 13, Interlocal Cooperation Act, of
which the county is a member.
(b)The general plan shall contain a resource management plan for the public lands, as
defined in Section
63L-6-102, within the county.
(c)The resource management plan described in Subsection (3)(b) shall address:
(i)mining;
(ii)land use;
(iii)livestock and grazing;
(iv)irrigation;
(v)agriculture;
(vi)fire management;
(vii)noxious weeds;
(viii)forest management;
(ix)water rights;
(x)ditches and canals;
(xi)water quality and hydrology;
(xii)flood plains and river terraces;
(xiii)wetlands;
(xiv)riparian areas;
(xv)predator control;
(xvi)wildlife;
(xvii)fisheries;
(xviii)recreation and tourism;
(xix)energy resources;
(xx)mineral resources;
(xxi)cultural, historical, geological, and paleontological resources;
(xxii)wilderness;
(xxiii)wild and scenic rivers;
(xxiv)threatened, endangered, and sensitive species;
(xxv)land access;
(xxvi)law enforcement;
(xxvii)economic considerations; and
(xxviii)air.
(d)For each item listed under Subsection (3)(c), a county's resource management plan
shall:
(i)establish findings pertaining to the item;
(ii)establish defined objectives; and
(iii)outline general policies and guidelines on how the objectives described in
Subsection (3)(d)(ii) are to be accomplished.
(4)
(a)
(i)The general plan shall include specific provisions related to an area within,
or partially within, the exterior boundaries of the county, or contiguous to the
boundaries of a county, which are proposed for the siting of a storage facility or
transfer facility for the placement of high-level nuclear waste or greater than class
C radioactive nuclear waste, as these wastes are defined in Section
19-3-303.
(ii)The provisions described in Subsection (4)(a)(i) shall address the effects of the
proposed site upon the health and general welfare of citizens of the state, and shall
provide:
(A)the information identified in Section
19-3-305;
(B)information supported by credible studies that demonstrates that Subsection
19-3-307
(2) has been satisfied; and
(C)specific measures to mitigate the effects of high-level nuclear waste and
greater than class C radioactive waste and guarantee the health and safety of
the citizens of the state.
(b)A county may, in lieu of complying with Subsection (4)(a), adopt an ordinance
indicating that all proposals for the siting of a storage facility or transfer facility for
the placement of high-level nuclear waste or greater than class C radioactive waste
wholly or partially within the county are rejected.
(c)A county may adopt the ordinance listed in Subsection (4)(b) at any time.
(d)The county shall send a certified copy of the ordinance described in Subsection
(4)(b) to the executive director of the Department of Environmental Quality by
certified mail within 30 days of enactment.
(e)If a county repeals an ordinance adopted under Subsection (4)(b) the county shall:
(i)comply with Subsection (4)(a) as soon as reasonably possible; and
(ii)send a certified copy of the repeal to the executive director of the Department of
Environmental Quality by certified mail within 30 days after the repeal.
(5)The general plan may define the county's local customs, local culture, and the
components necessary for the county's economic stability.
(6)Subject to Subsection
17-27a-403(2), the county may determine the comprehensiveness,
extent, and format of the general plan.
(7)If a county has designated a mountainous planning district, the general plan for the
mountainous planning district is the controlling plan.
(8)Nothing in this part may be construed to limit the authority of the state to manage and
protect wildlife under Title 23A, Wildlife Resources Act.
(9)On or before December 31, 2025, a county that has a general plan that does not include
a water use and preservation element that complies with Section
17-27a-403 shall amend
the county's general plan to comply with Section
17-27a-403.
Section 18, Section
17-50-335 is amended to read:
17-50-335. Energy efficiency upgrade, clean energy system, or electric vehicle
charging infrastructure.
A county may provide or finance an energy efficiency upgrade, a
renewable
clean
energy system, or electric vehicle charging infrastructure as defined in Section
11-42a-102
, in a designated voluntary assessment area in accordance with Title 11,
Chapter 42a, Commercial Property Assessed Clean Energy Act.
Section 19, Section
17B-1-202 is amended to read:
17B-1-202. Special district may be created -- Services that may be provided --
Limitations.
(1)
(a)A special district may be created as provided in this part to provide within its
boundaries service consisting of:
(i)the operation of an airport;
(ii)the operation of a cemetery;
(iii)fire protection, paramedic, and emergency services, including consolidated 911
and emergency dispatch services;
(iv)garbage collection and disposal;
(v)health care, including health department or hospital service;
(vi)the operation of a library;
(vii)abatement or control of mosquitos and other insects;
(viii)the operation of parks or recreation facilities or services;
(ix)the operation of a sewage system;
(x)the construction and maintenance of a right-of-way, including:
(A)a curb;
(B)a gutter;
(C)a sidewalk;
(D)a street;
(E)a road;
(F)a water line;
(G)a sewage line;
(H)a storm drain;
(I)an electricity line;
(J)a communications line;
(K)a natural gas line; or
(L)street lighting;
(xi)transportation, including public transit and providing streets and roads;
(xii)the operation of a system, or one or more components of a system, for the
collection, storage, retention, control, conservation, treatment, supplying,
distribution, or reclamation of water, including storm, flood, sewage, irrigation,
and culinary water, whether the system is operated on a wholesale or retail level
or both;
(xiii)in accordance with Subsection (1)(c), the acquisition or assessment of a
groundwater right for the development and execution of a groundwater
management plan in cooperation with and approved by the state engineer in
accordance with Section
73-5-15;
(xiv)law enforcement service;
(xv)subject to Subsection (1)(b), the underground installation of an electric utility
line or the conversion to underground of an existing electric utility line;
(xvi)the control or abatement of earth movement or a landslide;
(xvii)the operation of animal control services and facilities; or
(xviii)an energy efficiency upgrade, a
renewable
clean energy system, or electric
vehicle charging infrastructure as defined in Section
11-42a-102, in accordance
with Title 11, Chapter 42a, Commercial Property Assessed Clean Energy Act.
(b)Each special district that provides the service of the underground installation of an
electric utility line or the conversion to underground of an existing electric utility line
shall, in installing or converting the line, provide advance notice to and coordinate
with the utility that owns the line.
(c)A groundwater management plan described in Subsection (1)(a)(xiii) may include
the banking of groundwater rights by a special district in a critical management area
as defined in Section
73-5-15 following the adoption of a groundwater management
plan by the state engineer under Section
73-5-15.
(i)A special district may manage the groundwater rights it acquires under Subsection
17B-1-103
(2)(a) or (b) consistent with the provisions of a groundwater
management plan described in this Subsection (1)(c).
(ii)A groundwater right held by a special district to satisfy the provisions of a
groundwater management plan is not subject to the forfeiture provisions of
Section
73-1-4.
(iii)
(A)A special district may divest itself of a groundwater right subject to a
determination that the groundwater right is not required to facilitate the
groundwater management plan described in this Subsection (1)(c).
(B)The groundwater right described in Subsection (1)(c)(iii)(A) is subject to
Section
73-1-4 beginning on the date of divestiture.
(iv)Upon a determination by the state engineer that an area is no longer a critical
management area as defined in Section
73-5-15, a groundwater right held by the
special district is subject to Section
73-1-4.
(v)A special district created in accordance with Subsection (1)(a)(xiii) to develop
and execute a groundwater management plan may hold or acquire a right to
surface waters that are naturally tributary to the groundwater basin subject to the
groundwater management plan if the surface waters are appropriated in
accordance with Title 73, Water and Irrigation, and used in accordance with Title
73, Chapter 3b, Groundwater Recharge and Recovery Act.
(2)As used in this section:
(a)"Operation" means all activities involved in providing the indicated service including
acquisition and ownership of property reasonably necessary to provide the indicated
service and acquisition, construction, and maintenance of facilities and equipment
reasonably necessary to provide the indicated service.
(b)"System" means the aggregate of interrelated components that combine together to
provide the indicated service including, for a sewage system, collection and treatment.
(3)
(a)A special district may not be created to provide and may not after its creation
provide more than four of the services listed in Subsection (1).
(b)Subsection (3)(a) may not be construed to prohibit a special district from providing
more than four services if, before April 30, 2007, the special district was authorized
to provide those services.
(4)
(a)Except as provided in Subsection (4)(b), a special district may not be created to
provide and may not after its creation provide to an area the same service that may
already be provided to that area by another political subdivision, unless the other
political subdivision gives its written consent.
(b)For purposes of Subsection (4)(a), a special district does not provide the same
service as another political subdivision if it operates a component of a system that is
different from a component operated by another political subdivision but within the
same:
(i)sewage system; or
(ii)water system.
(5)
(a)Except for a special district in the creation of which an election is not required
under Subsection
17B-1-214(3)(d), the area of a special district may include all or
part of the unincorporated area of one or more counties and all or part of one or more
municipalities.
(b)The area of a special district need not be contiguous.
(6)For a special district created before May 5, 2008, the authority to provide fire protection
service also includes the authority to provide:
(a)paramedic service; and
(b)emergency service, including hazardous materials response service.
(7)A special district created before May 11, 2010, authorized to provide the construction
and maintenance of curb, gutter, or sidewalk may provide a service described in
Subsection (1)(a)(x) on or after May 11, 2010.
(8)A special district created before May 10, 2011, authorized to provide culinary,
irrigation, sewage, or storm water services may provide a service described in
Subsection (1)(a)(xii) on or after May 10, 2011.
(9)A special district may not be created under this chapter for two years after the date on
which a special district is dissolved as provided in Section
17B-1-217 if the special
district proposed for creation:
(a)provides the same or a substantially similar service as the dissolved special district;
and
(b)is located in substantially the same area as the dissolved special district.
Section 20, Section
17D-1-201 is amended to read:
17D-1-201. Services that a special service district may be created to provide.
As provided in this part, a county or municipality may create a special service district
to provide any combination of the following services:
(1)water;
(2)sewerage;
(3)drainage;
(4)flood control;
(5)garbage collection and disposal;
(6)health care;
(7)transportation, including the receipt of federal secure rural school funds under Section
51-9-603
for the purposes of constructing, improving, repairing, or maintaining public
roads;
(8)recreation;
(9)fire protection, including:
(a)emergency medical services, ambulance services, and search and rescue services, if
fire protection service is also provided;
(b)Firewise Communities programs and the development of community wildfire
protection plans; and
(c)the receipt of federal secure rural school funds as provided under Section
51-9-603
for the purposes of carrying out Firewise Communities programs, developing
community wildfire protection plans, and performing emergency services, including
firefighting on federal land and other services authorized under this Subsection (9);
(10)providing, operating, and maintaining correctional and rehabilitative facilities and
programs for municipal, state, and other detainees and prisoners;
(11)street lighting;
(12)consolidated 911 and emergency dispatch;
(13)animal shelter and control;
(14)receiving federal mineral lease funds under Title 59, Chapter 21, Mineral Lease Funds,
and expending those funds to be used in accordance with state and federal law;
(15)in a county of the first class, extended police protection;
(16)control or abatement of earth movement or a landslide;
(17)an energy efficiency upgrade, a
renewable
clean energy system, or electric vehicle
charging infrastructure as defined in Section
11-42a-102, in accordance with Title 11,
Chapter 42a, Commercial Property Assessed Clean Energy Act; or
(18)cemetery.
Section 21, Section
54-17-502 is amended to read:
54-17-502. Clean energy source -- Solicitation -- Consultant.
(1)Sections
54-17-102 through
54-17-404 do not apply to a significant energy resource that
is a
renewable
clean energy source as defined in Section
54-17-601 if the nameplate
capacity of the
renewable
clean energy source does not exceed 300 megawatts or, if
applicable, the quantity of capacity that is the subject of a contract for the purchase of
electricity from a
renewable
clean energy source does not exceed 300 megawatts.
(2)
(a)
(i)An affected electrical utility shall issue a public solicitation of bids for a
renewable
clean energy source up to 300 megawatts in size by January 31 of each
year in which it reasonably anticipates that it will need to acquire or commence
construction of a
renewable
clean energy resource.
(ii)A solicitation for a
renewable
clean energy source issued by January 31, 2008
for up to 99 megawatts satisfies the requirement of this Subsection (2) for the year
2008 if:
(A)not later than 30 days after the day on which this section takes effect, the
affected electrical utility amends the solicitation or initiates a new solicitation
to seek bids for
renewable
clean energy source projects up to 300 megawatts
in size; and
(B)within 60 days after the day on which this section takes effect and as soon as
practicable, the commission retains a consultant in accordance with Subsection
(3).
(b)A consultant hired under Subsection (2)(a)(ii)(B) shall perform the consultant's
duties under Subsection (3) in relation to the status of the solicitation process at the
time the consultant is retained and may not unreasonably delay the solicitation
process.
(c)For a solicitation issued after January 31, 2008:
(i)the affected electrical utility shall develop a reasonable process for pre-approval of
bidders; and
(ii)in addition to publicly issuing the solicitation in Subsection (2)(a)(i), the affected
electrical utility shall send copies of the solicitation to each potential bidder who
is pre-approved.
(d)The affected electrical utility shall evaluate in good faith each bid that is received
and negotiate in good faith with each bidder whose bid appears to be cost effective,
as defined in Section
54-17-602.
(e)Beginning on August 1, 2008, and on each August 1 thereafter, the affected electrical
utility shall file a notice with the commission indicating whether it reasonably
anticipates that it will need to acquire or commence construction of a
renewable
clean
energy resource during the following year.
(3)
(a)If the commission receives a notice under Subsection (2)(e) that the affected
electrical utility reasonably anticipates that it will need to acquire or commence
construction of a
renewable
clean energy source during the following year, the
commission shall promptly retain a consultant to:
(i)validate that the affected electrical utility is following the bidder pre-approval
process developed pursuant to Subsection (2)(c) and make recommendations for
changes to the pre-approval process for future solicitations;
(ii)monitor and document all material aspects of the bids, bid evaluations, and bid
negotiations between the affected electrical utility and any bidders in the
solicitation process;
(iii)maintain adequate documentation of each bid, including the solicitation,
evaluation, and negotiation processes and the reason for the conclusion of
negotiations, which documentation shall be transmitted to the commission at the
conclusion of all negotiations in the solicitation; and
(iv)be available to testify under oath before the commission in any relevant
proceeding concerning all aspects of the public solicitation process.
(b)The commission and the consultant shall use all reasonable efforts to not delay the
solicitation process.
(4)Documentation provided to the commission by the consultant shall be available to the
affected electrical utility, any bidder, or other interested person under terms and
conditions and at times determined appropriate by the commission.
(5)
(a)The commission and the consultant shall execute a contract approved by the
commission with terms and conditions approved by the commission.
(b)Unless otherwise provided by contract, an invoice for the consultant's services shall
be sent to the Division of Public Utilities for review and approval.
(c)After approval under Subsection (5)(b), the invoice shall be forwarded to the affected
electrical utility for payment to the consultant.
(d)The affected electrical utility may, in a general rate case or other appropriate
commission proceeding, include, and the commission shall allow, recovery by the
affected electrical utility of any amount paid by the affected electrical utility for the
consultant.
(6)
(a)Nothing in this section precludes an affected electrical utility from constructing
or acquiring any
renewable
clean energy source project outside the solicitation
process provided for in this section, including purchasing electricity from any
renewable
clean energy source project that chooses to self-certify as a qualifying
facility under the federal Public Utility Regulatory Policies Act of 1978.
(b)An affected electrical utility that constructs a
renewable
clean energy source outside
the solicitation process of this section or Section
54-17-201 shall file a notice with
the commission at least 60 days before the date of commencement of construction,
indicating the size and location of the
renewable
clean energy source.
(c)The date of commencement of construction under Subsection (6)(b) is the date of any
directive from an affected electrical utility to the person responsible for the
construction of the
renewable
clean energy source authorizing or directing the
person to proceed with construction.
(d)For an affected electrical utility whose rates are regulated by the commission, the
utility has the burden of proving in a rate case or other appropriate commission
proceeding the prudence, reasonableness, and cost-effectiveness of construction
under this Subsection (6), including the method used to evaluate the risks and value
of any bid submitted in the solicitation under this section.
(7)Nothing in this section requires an affected electrical utility to enter into any transaction
that it reasonably believes is not cost effective or otherwise is not in the public interest.
Section 22, Section
54-17-601 is amended to read:
54-17-601. Definitions.
As used in this part:
(1)"Adjusted retail electric sales" means the total kilowatt-hours of retail electric sales of
an electrical corporation to customers in this state in a calendar year, reduced by:
(a)the amount of those kilowatt-hours attributable to electricity generated or purchased
in that calendar year from qualifying zero carbon emissions generation and qualifying
carbon sequestration generation;
(b)the amount of those kilowatt-hours attributable to electricity generated or purchased
in that calendar year from generation located within the geographic boundary of the
Western Electricity Coordinating Council that derives its energy from one or more of
the following but that does not satisfy the definition of a
renewable
clean energy
source or that otherwise has not been used to satisfy Subsection
54-17-602(1):
(i)wind energy;
(ii)solar photovoltaic and solar thermal energy;
(iii)wave, tidal, and ocean thermal energy;
(iv)except for combustion of wood that has been treated with chemical preservatives
such as creosote, pentachlorophenol or chromated copper arsenate, biomass and
biomass byproducts, including:
(A)organic waste;
(B)forest or rangeland woody debris from harvesting or thinning conducted to
improve forest or rangeland ecological health and to reduce wildfire risk;
(C)agricultural residues;
(D)dedicated energy crops; and
(E)landfill gas or biogas produced from organic matter, wastewater, anaerobic
digesters, or municipal solid waste;
(v)geothermal energy;
(vi)hydroelectric energy; or
(vii)waste gas and waste heat capture or recovery; and
(c)the number of kilowatt-hours attributable to reductions in retail sales in that calendar
year from demand side management as defined in Section
54-7-12.8, with the
kilowatt-hours for an electrical corporation whose rates are regulated by the
commission and adjusted by the commission to exclude kilowatt-hours for which a
renewable energy certificate is issued under Subsection
54-17-603(4)(b).
(2)"Amount of kilowatt-hours attributable to electricity generated or purchased in that
calendar year from qualifying carbon sequestration generation," for qualifying carbon
sequestration generation, means the kilowatt-hours supplied by a facility during the
calendar year multiplied by the ratio of the amount of carbon dioxide captured from the
facility and sequestered to the sum of the amount of carbon dioxide captured from the
facility and sequestered plus the amount of carbon dioxide emitted from the facility
during the same calendar year.
(3)"Banked renewable energy certificate" means a bundled or unbundled renewable energy
certificate that is:
(a)not used in a calendar year to comply with this part or with a renewable energy
program in another state; and
(b)carried forward into a subsequent year.
(4)"Bundled renewable energy certificate" means a renewable energy certificate for
qualifying electricity that is acquired:
(a)by an electrical corporation by a trade, purchase, or other transfer of electricity that
includes the renewable energy attributes of, or certificate that is issued for, the
electricity; or
(b)by an electrical corporation by generating the electricity for which the renewable
energy certificate is issued.
(5)
"Clean energy source" means:
(a)
an electric generation facility or generation capability or upgrade that becomes
operational on or after January 1, 1995, that derives its energy from one or more of
the following:
(i)
wind energy;
(ii)
solar photovoltaic and solar thermal energy;
(iii)
wave, tidal, and ocean thermal energy;
(iv)
except for combustion of wood that has been treated with chemical preservatives
such as creosote, pentachlorophenol or chromated copper arsenate, biomass and
biomass byproducts, including:
(A)
organic waste;
(B)
forest or rangeland woody debris from harvesting or thinning conducted to
improve forest or rangeland ecological health and to reduce wildfire risk;
(C)
agricultural residues;
(D)
dedicated energy crops; and
(E)
landfill gas or biogas produced from organic matter, wastewater, anaerobic
digesters, or municipal solid waste;
(v)
geothermal energy located outside the state;
(vi)
waste gas and waste heat capture or recovery, including methane gas from:
(A)
an abandoned coal mine; or
(B)
a coal degassing operation associated with a state-approved mine permit;
(vii)
efficiency upgrades to a hydroelectric facility, without regard to the date upon
which the facility became operational, if the upgrades become operational on or
after January 1, 1995;
(viii)
compressed air, if:
(A)
the compressed air is taken from compressed air energy storage; and
(B)
the energy used to compress the air is a clean energy source;
(ix)
municipal solid waste; or
(x)
energy derived from nuclear fuel;
(b)
any of the following:
(i)
up to 50 average megawatts of electricity per year per electrical corporation from a
certified low-impact hydroelectric facility, without regard to the date upon which
the facility becomes operational, if the facility is certified as a low-impact
hydroelectric facility on or after January 1, 1995, by a national certification
organization;
(ii)
geothermal energy if located within the state, without regard to the date upon
which the facility becomes operational; or
(iii)
hydroelectric energy if located within the state, without regard to the date upon
which the facility becomes operational;
(c)
hydrogen gas derived from any source of energy described in Subsection (5)(a) or (b);
(d)
if an electric generation facility employs multiple energy sources, that portion of the
electricity generated that is attributable to energy sources described in Subsections
(5)(a) through (c); and
(e)
any of the following located in the state and owned by a user of energy:
(i)
a demand side management measure, as defined by Subsection
54-7-12.8(1), with
the quantity of renewable energy certificates to which the user is entitled
determined by the equivalent energy saved by the measure;
(ii)
a solar thermal system that reduces the consumption of fossil fuels, with the
quantity of renewable energy certificates to which the user is entitled determined
by the equivalent kilowatt-hours saved, except to the extent the commission
determines otherwise with respect to net-metered energy;
(iii)
a solar photovoltaic system that reduces the consumption of fossil fuels with the
quantity of renewable energy certificates to which the user is entitled determined
by the total production of the system, except to the extent the commission
determines otherwise with respect to net-metered energy;
(iv)
a hydroelectric or geothermal facility with the quantity of renewable energy
certificates to which the user is entitled determined by the total production of the
facility, except to the extent the commission determines otherwise with respect to
net-metered energy;
(v)
a waste gas or waste heat capture or recovery system, other than from a combined
cycle combustion turbine that does not use waste gas or waste heat, with the
quantity of renewable energy certificates to which the user is entitled determined
by the total production of the system, except to the extent the commission
determines otherwise with respect to net-metered energy; and
(vi)
the station use of solar thermal energy, solar photovoltaic energy, hydroelectric
energy, geothermal energy, waste gas, or waste heat capture and recovery.
(5)
(6)
"Electrical corporation":
(a)is as defined in Section
54-2-1; and
(b)does not include a person generating electricity that is not for sale to the public.
(6)
(7)
"Qualifying carbon sequestration generation" means a fossil-fueled generating
facility located within the geographic boundary of the Western Electricity Coordinating
Council that:
(a)becomes operational or is retrofitted on or after January 1, 2008; and
(b)reduces carbon dioxide emissions into the atmosphere through permanent geological
sequestration or through another verifiably permanent reduction in carbon dioxide
emissions through the use of technology.
(7)
(8)
"Qualifying electricity" means electricity generated on or after January 1, 1995
,
from a
renewable
clean energy source if:
(a)
(i)the renewable energy source is located within the geographic boundary of the
Western Electricity Coordinating Council; or
(ii)the qualifying electricity is delivered to the transmission system of an electrical
corporation or a delivery point designated by the electrical corporation for the
purpose of subsequent delivery to the electrical corporation; and
(b)the renewable energy attributes of the electricity are not traded, sold, transferred, or
otherwise used to satisfy another state's renewable energy program.
(8)
(9)
"Qualifying zero carbon emissions generation":
(a)means a generation facility located within the geographic boundary of the Western
Electricity Coordinating Council that:
(i)becomes operational on or after January 1, 2008; and
(ii)does not produce carbon as a byproduct of the generation process;
(b)includes generation powered by nuclear fuel; and
(c)does not include renewable energy sources used to satisfy the requirement
established under Subsection
54-17-602(1).
(9)
(10)
"Renewable energy certificate" means a certificate issued under Section
54-17-603.
(10)
"Renewable energy source" means:
(a)
an electric generation facility or generation capability or upgrade that becomes
operational on or after January 1, 1995 that derives its energy from one or more of the
following:
(i)
wind energy;
(ii)
solar photovoltaic and solar thermal energy;
(iii)
wave, tidal, and ocean thermal energy;
(iv)
except for combustion of wood that has been treated with chemical preservatives such
as creosote, pentachlorophenol or chromated copper arsenate, biomass and biomass
byproducts, including:
(A)
organic waste;
(B)
forest or rangeland woody debris from harvesting or thinning conducted to improve
forest or rangeland ecological health and to reduce wildfire risk;
(C)
agricultural residues;
(D)
dedicated energy crops; and
(E)
landfill gas or biogas produced from organic matter, wastewater, anaerobic digesters,
or municipal solid waste;
(v)
geothermal energy located outside the state;
(vi)
waste gas and waste heat capture or recovery whether or not it is renewable, including
methane gas from:
(A)
an abandoned coal mine; or
(B)
a coal degassing operation associated with a state-approved mine permit;
(vii)
efficiency upgrades to a hydroelectric facility, without regard to the date upon which
the facility became operational, if the upgrades become operational on or after January
1, 1995;
(viii)
compressed air, if:
(A)
the compressed air is taken from compressed air energy storage; and
(B)
the energy used to compress the air is a renewable energy source; or
(ix)
municipal solid waste;
(b)
any of the following:
(i)
up to 50 average megawatts of electricity per year per electrical corporation from a
certified low-impact hydroelectric facility, without regard to the date upon which the
facility becomes operational, if the facility is certified as a low-impact hydroelectric
facility on or after January 1, 1995, by a national certification organization;
(ii)
geothermal energy if located within the state, without regard to the date upon which
the facility becomes operational; or
(iii)
hydroelectric energy if located within the state, without regard to the date upon which
the facility becomes operational;
(c)
hydrogen gas derived from any source of energy described in Subsection (10)(a) or (b);
(d)
if an electric generation facility employs multiple energy sources, that portion of the
electricity generated that is attributable to energy sources described in Subsections
(10)(a) through (c); and
(e)
any of the following located in the state and owned by a user of energy:
(i)
a demand side management measure, as defined by Subsection
54-7-12.8(1), with the
quantity of renewable energy certificates to which the user is entitled determined by the
equivalent energy saved by the measure;
(ii)
a solar thermal system that reduces the consumption of fossil fuels, with the quantity
of renewable energy certificates to which the user is entitled determined by the
equivalent kilowatt-hours saved, except to the extent the commission determines
otherwise with respect to net-metered energy;
(iii)
a solar photovoltaic system that reduces the consumption of fossil fuels with the
quantity of renewable energy certificates to which the user is entitled determined by the
total production of the system, except to the extent the commission determines otherwise
with respect to net-metered energy;
(iv)
a hydroelectric or geothermal facility with the quantity of renewable energy
certificates to which the user is entitled determined by the total production of the
facility, except to the extent the commission determines otherwise with respect to
net-metered energy;
(v)
a waste gas or waste heat capture or recovery system, other than from a combined
cycle combustion turbine that does not use waste gas or waste heat, with the quantity of
renewable energy certificates to which the user is entitled determined by the total
production of the system, except to the extent the commission determines otherwise with
respect to net-metered energy; and
(vi)
the station use of solar thermal energy, solar photovoltaic energy, hydroelectric
energy, geothermal energy, waste gas, or waste heat capture and recovery.
(11)"Unbundled renewable energy certificate" means a renewable energy certificate
associated with:
(a)qualifying electricity that is acquired by an electrical corporation or other person by
trade, purchase, or other transfer without acquiring the electricity for which the
certificate was issued; or
(b)activities listed in Subsection
(10)(e)
(5)(e).
Section 23, Section
54-17-602 is amended to read:
54-17-602. Target amount of qualifying electricity -- Renewable energy
certificate -- Cost-effectiveness -- Cooperatives.
(1)
(a)To the extent that it is cost effective to do so, beginning in 2025 the annual retail
electric sales in this state of each electrical corporation shall consist of qualifying
electricity or renewable energy certificates in an amount equal to at least 20% of
adjusted retail electric sales.
(b)The amount under Subsection (1)(a) is computed based upon adjusted retail electric
sales for the calendar year commencing 36 months before the first day of the year for
which the target calculated under Subsection (1)(a) applies.
(c)Notwithstanding Subsections (1)(a) and (b), an increase in the annual target from one
year to the next may not exceed the greater of:
(i)17,500 megawatt-hours; or
(ii)20% of the prior year's amount under Subsections (1)(a) and (b).
(2)
(a)Cost-effectiveness under Subsection (1) for other than a cooperative association
is determined in comparison to other viable resource options using the criteria
provided by Subsection
54-17-201(2)(c)(ii).
(b)For an electrical corporation that is a cooperative association, cost-effectiveness is
determined using criteria applicable to the cooperative association's acquisition of a
significant energy resource established by the cooperative association's board of
directors.
(3)This section does not require an electrical corporation to:
(a)substitute qualifying electricity for electricity from a generation source owned or
contractually committed, or from a contractual commitment for a power purchase;
(b)enter into any additional electric sales commitment or any other arrangement for the
sale or other disposition of electricity that is not already, or would not be, entered into
by the electrical corporation; or
(c)acquire qualifying electricity in excess of its adjusted retail electric sales.
(4)For the purpose of Subsection (1), an electrical corporation may combine the following:
(a)qualifying electricity from a renewable energy source owned by the electrical
corporation;
(b)qualifying electricity acquired by the electrical corporation through trade, power
purchase, or other transfer; and
(c)a bundled or unbundled renewable energy certificate, including a banked renewable
energy certificate.
(5)For an electrical corporation whose rates the commission regulates, the following rules
concerning renewable energy certificates apply:
(a)a banked renewable energy certificate with an older issuance date shall be used
before any other banked renewable energy certificate issued at a later date is used; and
(b)the total of all unbundled renewable energy certificates, including unbundled banked
renewable energy certificates, may not exceed 20% of the amount of the annual target
provided for in Subsection (1).
(6)An electrical corporation that is a cooperative association may count towards
Subsection (1) any of the following:
(a)electric production allocated to this state from hydroelectric facilities becoming
operational after December 31, 2007
, if the facilities are located in any state in which
the cooperative association, or a generation and transmission cooperative with which
the cooperative association has a contract, provides electric service;
(b)qualifying electricity generated or acquired or renewable energy certificates acquired
for a program that permits a retail customer to voluntarily contribute to a
renewable
clean
energy source; and
(c)notwithstanding Subsection
54-17-601(7), an unbundled renewable energy certificate
purchased from a renewable energy source located outside the geographic boundary
of the Western Electricity Coordinating Council if the electricity on which the
unbundled renewable energy certificate is based would be considered qualifying
electricity if the renewable energy source was located within the geographic
boundary of the Western Electricity Coordinating Council.
(7)The use of the renewable attributes associated with qualifying electricity to satisfy any
federal renewable energy requirement does not preclude the electricity from being
qualifying electricity for the purpose of this chapter.
Section 24, Section
54-17-604 is amended to read:
54-17-604. Plans and reports.
(1)An electrical corporation shall develop and maintain a plan for implementing
Subsection
54-17-602(1), consistent with the cost-effectiveness criteria of Subsection
54-17-201
(2)(c)(ii).
(2)
(a)A progress report concerning a plan under Subsection (1) for other than a
cooperative association shall be filed with the commission by January 1 of each of
the years 2010, 2015, 2020, and 2024.
(b)For an electrical corporation that is a cooperative association, a progress report shall
be filed with the cooperative association's board of directors by January 1 of each of
the years 2010, 2015, 2020, and 2024.
(3)The progress report under Subsection (2) shall contain:
(a)the actual and projected amount of qualifying electricity through 2025;
(b)the source of qualifying electricity;
(c)
(i)an analysis of the cost-effectiveness of
renewable
clean energy sources for
other than a cooperative association; or
(ii)an estimate of the cost of achieving the target for an electrical corporation that is a
cooperative association;
(d)a discussion of conditions impacting the
renewable
clean energy source and
qualifying electricity markets;
(e)any recommendation for a suggested legislative or program change; and
(f)for other than a cooperative association, any other information requested by the
commission or considered relevant by the electrical corporation.
(4)The plan and progress report required by Subsections (1) and (2) may include
procedures that will be used by the electrical corporation to identify and select any
renewable
clean energy resource and qualifying electricity that satisfy the criteria of
Subsection
54-17-201(2)(c)(ii).
(5)By July 1, 2026, each electrical corporation shall file a final progress report
demonstrating:
(a)how Subsection
54-17-602(1) is satisfied for the year 2025; or
(b)the reason why Subsection
54-17-602(1) is not satisfied for the year 2025, if it is not
satisfied.
(6)By January 1 of each of the years 2011, 2016, 2021, and 2025, the Division of Public
Utilities shall submit to the Legislature a report containing a summary of any progress
report filed under Subsections (2) through (5).
(7)The summary required by Subsection (6) shall include any recommendation for
legislative changes.
(8)
(a)By July 1, 2027, the commission shall submit to the Legislature a report
summarizing the final progress reports and recommending any legislative changes.
(b)The 2027 summary may contain a recommendation to the Legislature concerning
any action to be taken with respect to an electrical corporation that does not satisfy
Subsection
54-17-602(1) for 2025.
(c)The commission shall provide an opportunity for public comment and take evidence
before recommending any action to be taken with respect to an electrical corporation
that does not satisfy Subsection
54-17-602(1) for 2025.
(9)If a recommendation containing a penalty for failure to satisfy Subsection
54-17-602(1)
is made under Subsection (8), the proposal shall require that any amount paid by an
electrical corporation as a penalty be utilized to fund demand-side management for the
retail customers of the electrical corporation paying the penalty.
(10)A penalty may not be proposed under this section if an electrical corporation's failure
to satisfy Subsection
54-17-602(1) is due to:
(a)a lack of cost-effective means to satisfy the requirement; or
(b)force majeure.
(11)By July 1, 2026, an electrical corporation that is a cooperative association shall file a
final progress report demonstrating:
(a)how Subsection
54-17-602(1) is satisfied for the year 2025; or
(b)the reason why Subsection
54-17-602(1) is not satisfied for the year 2025 if it is not
satisfied.
(12)The plan and any progress report file under this section by an electrical corporation
that is cooperative association shall be publicly available at the cooperative association's
office or posted on the cooperative association's website.
Section 25, Section
54-17-605 is amended to read:
54-17-605. Recovery of costs for clean energy activities.
(1)In accordance with other law, the commission shall include in the retail electric rates of
an electrical corporation whose rates the commission regulates the state's share of any of
the costs listed in Subsection (2) that are relevant to the proceeding in which the
commission is considering the electrical corporation's rates:
(a)if the costs are prudently incurred by the electrical corporation in connection with:
(i)the acquisition of a renewable energy certificate;
(ii)the acquisition of qualifying electricity for which a renewable energy certificate
will be issued after the acquisition; and
(iii)the acquisition, construction, and use of a
renewable
clean energy source; and
(b)to the extent any qualifying electricity or
renewable
clean energy source under
Subsection (1)(a) satisfies the cost-effectiveness criteria of Subsection
54-17-201
(2)(c)(ii).
(2)The following are costs that may be recoverable under Subsection (1):
(a)a cost of siting, acquisition of property rights, equipment, design, licensing,
permitting, construction, owning, operating, or otherwise acquiring a
renewable
clean
energy source and any associated asset, including transmission;
(b)a cost to acquire qualifying electricity through trade, power purchase, or other
transfer;
(c)a cost to acquire a bundled or unbundled renewable energy certificate, if any net
revenue from the sale of a renewable energy certificate allocable to this state is also
included in rates;
(d)a cost to interconnect a
renewable
clean energy source to the electrical corporation's
transmission and distribution system;
(e)a cost associated with using a physical or financial asset to integrate, firm, or shape a
renewable
clean energy source on a firm annual basis to meet a retail electricity need;
and
(f)any cost associated with transmission and delivery of qualifying electricity to a retail
electricity consumer.
(3)
(a)The commission may allow an electrical corporation to use an adjustment
mechanism or reasonable method other than a rate case under Sections
54-4-4 and
54-7-12
to allow recovery of costs identified in Subsection (2).
(b)If the commission allows the use of an adjustment mechanism, both the costs and
any associated benefit shall be reflected in the mechanism, to the extent practicable.
(c)This Subsection (3) creates no presumption for or against the use of an adjustment
mechanism.
(4)
(a)The commission may permit an electrical corporation to include in its retail
electric rates the state's share of costs prudently incurred by the electrical corporation
in connection with a
renewable
clean energy source, whether or not the
renewable
clean
energy source ultimately becomes operational, including costs of:
(i)siting;
(ii)property acquisition;
(iii)equipment;
(iv)design;
(v)licensing;
(vi)permitting; and
(vii)other reasonable items related to the
renewable
clean energy source.
(b)Subsection (4)(a) creates no presumption concerning the prudence or recoverability
of the costs identified.
(c)To the extent deferral is consistent with other applicable law, the commission may
allow an electrical corporation to defer costs recoverable under Subsection (4)(a)
until the recovery of the deferred costs can be considered in a rate proceeding or an
adjustment mechanism created under Subsection (3).
(d)An application to defer costs shall be filed within 60 days after the day on which the
electrical corporation determines that the
renewable
clean energy source project is
impaired under generally accepted accounting principles and will not become
operational.
(e)Notwithstanding the opportunity to defer costs under Subsection (4)(c), a cost
incurred by an electrical corporation for siting, property acquisition, equipment,
design, licensing, and permitting of a
renewable
clean energy source that the
electrical corporation proposes to construct shall be included in the electrical
corporation's project costs for the purpose of evaluating the project's
cost-effectiveness.
(f)A deferred cost under Subsection (4)(a) may not be added to, or otherwise considered
in the evaluation of, the cost of a project proposed by any person other than the
electrical corporation for the purpose of evaluating that person's proposal.
Section 26, Section
54-17-801 is amended to read:
54-17-801. Definitions.
As used in this part:
(1)
"Clean energy contract" means a contract under this part for the delivery of electricity
from one or more clean energy facilities to a contract customer requiring the use of a
qualified utility's transmission or distribution system to deliver the electricity from a
clean energy facility to the contract customer.
(2)
(a)
"Clean energy facility" means a clean energy source as defined in Section
54-17-601
that:
(i)
is located in the state; or
(ii)
(A)
is located outside the state; and
(B)
provides energy from baseload clean resources.
(b)
"Clean energy facility" does not include an electric generating facility for which the
electric generating facility's costs are included in a qualified utility's rates as a facility
that provides electric service to the qualified utility's system.
(3)
"Clean energy tariff" means a tariff offered by a qualified utility that allows the
qualified utility to procure clean generation on behalf of and to serve its customers.
(4)
"Contract customer" means a person who executes or will execute a
renewable
clean
energy contract with a qualified utility.
(2)
(5)
"Qualified utility" means an electric corporation that serves more than 200,000
retail customers in the state.
(3)
"Renewable energy contract" means a contract under this part for the delivery of
electricity from one or more renewable energy facilities to a contract customer requiring
the use of a qualified utility's transmission or distribution system to deliver the
electricity from a renewable energy facility to the contract customer.
(4)
(a)
"Renewable energy facility" means a renewable energy source as defined in
Section
54-17-601 that:
(i)
is located in the state; or
(ii)
(A)
is located outside the state; and
(B)
provides energy from baseload renewable resources.
(b)
"Renewable energy facility" does not include an electric generating facility for which
the electric generating facility's costs are included in a qualified utility's rates as a
facility that provides electric service to the qualified utility's system.
(5)
"Renewable energy tariff" means a tariff offered by a qualified utility that allows the
qualified utility to procure renewable generation on behalf of and to serve its customers.
Section 27, Section
54-17-802 is amended to read:
54-17-802. Contracts for the purchase of electricity from a clean energy facility.
(1)Within a reasonable time after receiving a request from a contract customer and subject
to reasonable credit requirements, a qualified utility shall enter into a
renewable
clean
energy contract with the requesting contract customer to supply some or all of the
contract customer's electric service from one or more
renewable
clean energy facilities
selected by the contract customer.
(2)Subject to a contract customer agreeing to pay the qualified utility for all incremental
costs associated with metering facilities, communication facilities, and administration, a
renewable
clean energy contract may provide for electricity to be delivered to a contract
customer:
(a)from one
renewable
clean energy facility to a contract customer's single metered
delivery location;
(b)from multiple
renewable
clean energy facilities to a contract customer's single
metered delivery location; or
(c)from one or more
renewable
clean energy facilities to a single contract customer's
multiple metered delivery locations.
(3)
(a)A single contract customer may aggregate multiple metered delivery locations to
satisfy the minimum megawatt limit under Subsection (4).
(b)Multiple contract customers may not aggregate their separate metered delivery
locations to satisfy the minimum megawatt limit under Subsection (4).
(4)The amount of electricity provided to a contract customer under a
renewable
clean
energy contract may not be less than 2.0 megawatts.
(5)The amount of electricity provided in any hour to a contract customer under a
renewable
clean energy contract may not exceed the contract customer's metered
kilowatt-hour load in that hour at the metered delivery locations under the contract.
(6)A
renewable
clean energy contract that meets the requirements of Subsection (4) may
provide for one or more increases in the amount of electricity to be provided under the
contract even though the amount of electricity to be provided by the increase is less than
the minimum amount required under Subsection (4).
(7)The total amount of electricity to be generated by
renewable
clean energy facilities and
delivered to contract customers at any one time under all
renewable
clean energy
contracts may not exceed 300 megawatts, unless the commission approves in advance a
higher amount.
(8)Electricity generated by a
renewable
clean energy facility and delivered to a contract
customer under a
renewable
clean energy contract may not be included in a net
metering program under Chapter 15, Net Metering of Electricity.
Section 28, Section
54-17-803 is amended to read:
54-17-803. Ownership of a clean energy facility -- Joint ownership -- Ownership
of environmental attributes.
(1)A
renewable
clean energy facility may be owned:
(a)by a person who will be a contract customer receiving electricity from the
renewable
clean
energy facility;
(b)by a qualified utility;
(c)by a person other than a contract customer or qualified utility; or
(d)jointly by any combination of Subsections (1)(a), (b), and (c), whether in equal
shares or otherwise.
(2)A qualified utility may be a joint owner of a
renewable
clean energy facility only if:
(a)the qualified utility consents to being a joint owner; and
(b)the joint ownership agreement requires the qualified utility to recover from contract
customers receiving electricity from the
renewable
clean energy facility all of the
qualified utility's costs associated with its ownership of the
renewable
clean energy
facility, including administrative, acquisition, operation, and maintenance costs,
unless the commission, in an order issued in a separate regulatory proceeding:
(i)authorizes the qualified utility to recover some of those costs from customers other
than contract customers;
(ii)determines that the rate to be paid for electricity from the
renewable
clean
energy facility by customers other than contract customers is cost effective; and
(iii)approves the inclusion of the rate determined under Subsection (2)(b)(ii) in
general rates or through a commission approved cost recovery mechanism.
(3)To the extent that any electricity from a
renewable
clean energy facility to be delivered
to a contract customer is owned by a person other than the contract customer:
(a)the qualified utility shall, by contract with the owner of the electricity to be sold from
the
renewable
clean energy facility, purchase electricity for resale to one or more
contract customers;
(b)the qualified utility shall sell that electricity to the contract customer or customers
under
renewable
clean energy contracts with the same duration and pricing as the
contract between the qualified utility and the owner of the electricity to be sold from
the
renewable
clean energy facility; and
(c)the qualified utility's contract with the owner of the electricity to be sold from the
renewable
clean energy facility shall provide that the qualified utility's obligation to
purchase electricity under that contract ceases if the contract customer defaults in its
obligation to purchase and pay for the electricity under the contract with the qualified
utility.
(4)The right to any environmental attribute associated with a
renewable
clean energy
facility shall remain the property of the
renewable
clean energy facility's owner, except
to the extent that a contract to which the owner is a party provides otherwise.
Section 29, Section
54-17-804 is amended to read:
54-17-804. Exemption from certificate of convenience and necessity
requirements.
(1)A qualified utility is not required to comply with Section
54-4-25 with respect to a
renewable
clean energy facility that is the subject of a
renewable
clean energy contract
if:
(a)each contract necessary for the commission to determine compliance with this part is
filed with the commission; and
(b)the commission determines that each contract relating to the
renewable
clean energy
facility complies with this part.
(2)In making its determination under Subsection (1)(b), the commission may process and
consider together multiple
renewable
clean energy contracts between the same contract
customer and the qualified utility providing for the delivery of electricity from a
renewable
clean energy facility to the contract customer's multiple metered delivery
locations.
Section 30, Section
54-17-805 is amended to read:
54-17-805. Costs associated with delivering electricity from a clean energy
facility to a contract customer.
(1)To the extent that a
renewable
clean energy contract provides for the delivery of
electricity from a
renewable
clean energy facility owned by the contract customer, the
renewable
clean energy contract shall require the contract customer to pay for the use of
the qualified utility's transmission or distribution facilities at the qualified utility's
applicable rates, which may include transmission costs at the qualified utility's
applicable rate approved by the Federal Energy Regulatory Commission.
(2)To the extent that a
renewable
clean energy contract provides for the delivery of
electricity from a
renewable
clean energy facility owned by a person other than the
qualified utility or the contract customer, the
renewable
clean energy contract shall
require the contract customer to bear all reasonably identifiable costs that the qualified
utility incurs in delivering the electricity from the
renewable
clean energy facility to the
contract customer, including all costs to procure and deliver electricity and for billing,
administrative, and related activities, as determined by the commission.
(3)A qualified utility that enters a
renewable
clean energy contract shall charge a contract
customer for all metered electric service delivered to the contract customer, including
generation, transmission, and distribution service, at the qualified utility's applicable
tariff rates, excluding:
(a)any kilowatt hours of electricity delivered from the
renewable
clean energy facility,
based on the time of delivery, adjusted for transmission losses;
(b)any kilowatts of electricity delivered from the
renewable
clean energy facility that
coincide with the contract customer's monthly metered kilowatt demand
measurement, adjusted for transmission losses;
(c)any transmission and distribution service that the contract customer pays for under
Subsection (1) or (2); and
(d)any transmission service that the contract customer provides under Subsection (2) to
deliver generation from the
renewable
clean energy facility.
Section 31, Section
54-17-806 is amended to read:
54-17-806. Qualified utility clean energy tariff.
(1)The commission may authorize a qualified utility to implement a
renewable
clean
energy tariff in accordance with this section if the commission determines the tariff that
the qualified utility proposes is reasonable and in the public interest.
(2)The commission may authorize a tariff under Subsection (1) to apply to:
(a)a qualified utility customer with an aggregated electrical load of at least five
megawatts; or
(b)a combination of qualified utility customers who are separately metered if:
(i)the aggregated electrical load of the qualified utility customers is at least five
megawatts; and
(ii)each of the qualified utility customers is located within a project area, as defined
in Section
11-58-102.
(3)A customer who agrees to take service that is subject to the
renewable
clean energy
tariff under this section shall pay:
(a)the customer's normal tariff rate;
(b)an incremental charge in an amount equal to the difference between the cost to the
qualified utility to supply
renewable
clean generation to the
renewable
clean energy
tariff customer and the qualified utility's avoided costs as defined in Subsection
54-2-1
(1), or a different methodology recommended by the qualified utility; and
(c)an administrative fee in an amount approved by the commission.
(4)The commission shall allow a qualified utility to recover the qualified utility's prudently
incurred cost of
renewable
clean generation procured pursuant to the tariff established
in this section that is not otherwise recovered from the proceeds of the tariff paid by
customers agreeing to service that is subject to the
renewable
clean energy tariff.
Section 32, Section
54-17-807 is amended to read:
54-17-807. Solar photovoltaic or thermal solar energy facilities.
(1)As used in this section, "acquire" means to purchase, construct, or purchase the output
from a photovoltaic or thermal solar energy resource.
(2)
(a)In accordance with this section, a qualified utility may file an application with the
commission for approval to acquire a photovoltaic or thermal solar energy resource
using rate recovery based on a competitive market price, except as provided in
Subsection (2)(b).
(b)A qualified utility may not, under this section, acquire a photovoltaic or thermal solar
energy resource with a generating capacity that is two megawatts or less per meter if
that resource is located on the customer's side of the meter.
(3)The energy resource acquired pursuant to this section may be owned solely or jointly by
a qualified utility or another entity:
(a)to provide
renewable
clean energy to a contract customer as provided in Section
54-17-803
;
(b)to serve energy to a qualified utility customer as provided in Section
54-17-806;
(c)to serve energy to any customers of the qualified utility if the proposed energy
resource's nameplate capacity does not exceed 300 megawatts or, if applicable, the
quantity of capacity that is the subject of a contract for the purchase of electricity
does not exceed 300 megawatts, so long as the qualified utility proceeds under and
complies with Part 4, Voluntary Request for Resource Decision Review; or
(d)to serve energy to any customers of the qualified utility if the proposed energy
resource's nameplate capacity exceeds 300 megawatts or, if applicable, the quantity
of capacity that is the subject of a contract for the purchase of electricity exceeds 300
megawatts, so long as the qualified utility complies with this chapter.
(4)Except as provided in Subsections (3)(c) and (d), the following do not apply to an
application submitted under Subsection (2):
(a)Part 1, General Provisions;
(b)Part 2, Solicitation Process;
(c)Part 3, Resource Plans and Significant Energy Resource Approval;
(d)Part 4, Voluntary Request for Resource Decision Review; and
(e)Section
54-17-502.
(5)The application described in Subsection (2) shall include:
(a)a proposed solicitation process for the energy resource;
(b)the criteria proposed to be used to evaluate the responses to the solicitation:
(i)as determined by the customer, if the energy resource is sought to serve a
customer pursuant to Subsection (3)(a) or (b); or
(ii)as proposed by the qualified utility, if the energy resource is sought to serve the
customers of the qualified utility pursuant to Subsection (3)(c) or (d); and
(c)any other information the commission may require.
(6)
(a)Before approving a solicitation process under this section for an energy resource
to serve customers of the qualified utility pursuant to Subsection (3)(c) or (d), the
commission shall:
(i)hold a public hearing; and
(ii)provide an opportunity for public comment.
(b)The commission may approve a solicitation process under this section only if the
commission determines that the solicitation and evaluation processes to be used will
create a level playing field in which the qualified utility and other bidders can
compete fairly, including with respect to interconnection and transmission
requirements imposed on bidders by the solicitation within the control of the
commission and the qualified utility, excluding its federally regulated transmission
function, and will otherwise serve the public interest.
(7)
(a)Upon completion of the solicitation process approved under Subsection (6), the
qualified utility may seek approval from the commission to acquire the energy
resource identified through the solicitation process as the winning bid.
(b)Before approving acquisition of an energy resource acquired pursuant to this section,
the commission shall:
(i)hold a public hearing;
(ii)provide an opportunity for public comment;
(iii)determine whether the solicitation and evaluation processes complied with this
section, commission rules, and the commission's order approving the solicitation
process; and
(iv)determine whether the acquisition of the energy resource is just and reasonable,
and in the public interest.
(c)The commission may approve a qualified utility's ownership of an energy resource or
a power purchase agreement containing a purchase option under Subsection (3)(c) or
(d) with rate recovery based on a competitive market price only if the commission
determines that the qualified utility's bid is the lowest cost ownership option for the
qualified utility.
(d)If the commission approves a qualified utility's acquisition of an energy resource
under Subsection (3), including entering into a power purchase agreement containing
a purchase option, using rate recovery based on a competitive market price:
(i)the prices approved by the commission shall constitute competitive market prices
for purposes of this section; and
(ii)assets owned by the qualified utility and used to provide service as approved
under this section are not public utility property.
(8)If upon completion of a solicitation process approved under Subsection (6) the qualified
utility proposes not to acquire an energy resource, the qualified utility shall file with the
commission a report explaining its reasons for not acquiring the lowest cost resource bid
into the solicitation, along with any other information the commission requires.
(9)Within six months after a competitive market price for a solar energy resource acquired
under Subsection (3)(c) or (d) has been identified pursuant to this section, or for such
longer period as the commission may determine to be in the public interest, a qualified
utility may file an application with the commission seeking approval to acquire another
energy resource similar to the energy resource for which a competitive market price was
established without going through a new solicitation process. The commission may
approve the application if the qualified utility demonstrates a need to acquire the energy
resource, that the competitive market price remains reasonable, and that the acquisition
is in the public interest.
(10)No later than 180 days before the end of the term approved by the commission for an
energy resource acquired under this section and owned by the qualified utility, the
qualified utility shall file with the commission a request for determination of an
appropriate disposition of the energy resource asset, except that the qualified utility is
permitted to retain the benefits or proceeds and shall be required to assume the costs and
risks of ownership of the energy resource.
(11)The commission shall adopt rules, in accordance with Title 63G, Chapter 3, Utah
Administrative Rulemaking Act:
(a)addressing the content and filing of an application under this section;
(b)to establish the solicitation process and criteria to be used to identify the competitive
market price and select an energy resource; and
(c)addressing other factors determined by the commission to be relevant to protect the
public interest and to implement this section.
Section 33, Section
54-17-901 is amended to read:
54-17-901. Community Clean Energy Act.
This part is known as the "Community
Renewable
Clean Energy Act."
Section 34, Section
54-17-902 is amended to read:
54-17-902. Definitions.
As used in this part:
(1)
(a)"Auxiliary services" means those services necessary to safely and reliably:
(i)interconnect and transmit electric power from any
renewable
clean energy
resource constructed or acquired for a community
renewable
clean energy
program; and
(ii)integrate and supplement electric power from any
renewable
clean energy
resource.
(b)"Auxiliary services" shall include applicable Federal Energy Regulatory Commission
requirements governing transmission and interconnection services.
(2)
"Clean electric energy supply" means incremental clean energy resources that are
developed to meet the equivalent of the annual electric energy consumption of
participating customers within a participating community.
(3)
"Clean energy resource" means:
(a)
electric energy generated by a source that is naturally replenished and includes one or
more of the following:
(i)
wind;
(ii)
solar photovoltaic or thermal solar technology;
(iii)
a geothermal resource; or
(iv)
a hydroelectric plant including a pumped storage hydropower facility;
(b)
use of an energy efficient and sustainable technology the commission has approved
for implementation that:
(i)
increases efficient energy usage;
(ii)
is capable of being used for demand response;
(iii)
facilitates the use and development of clean generation resources through
electrical grid management or energy storage; or
(iv)
uses carbon capture utilization and sequestration; or
(c)
energy derived from nuclear fuel.
(2)
(4)
"Commission" means the Public Service Commission created in Section
54-1-1.
(3)
(5)
"Community
renewable
clean energy program" means the program approved by
the commission under Section
54-17-904 that allows a qualified utility to provide
electric service from one or more
renewable
clean energy resources to a participating
customer within a participating community.
(4)
(6)
"County" means the unincorporated area of a county.
(5)
(7)
"Division" means the Division of Public Utilities created in Section
54-4a-1.
(6)
(8)
(a)"Initial opt-out period" means the period of time immediately after the
community
renewable
clean energy program's commencement, as established by the
commission by rule made pursuant to Section
54-17-909, during which a
participating customer may elect to leave the program without penalty.
(b)"Initial opt-out period" may not be shorter than three typical billing cycles of the
qualified utility.
(7)
(9)
"Municipality" means a city or a town as defined in Section
10-1-104.
(8)
(10)
"Office" means the Office of Consumer Services created in Section
54-10a-101.
(9)
(11)
"Ongoing costs" means the costs allocated to the state for transmission and
distribution facilities, retail services, and generation assets that are not replaced assets.
(10)
(12)
"Participating community" means a municipality or a county:
(a)whose residents are served by a qualified utility; and
(b)the municipality or county meets the requirements in Section
54-17-903.
(11)
(13)
"Participating customer" means:
(a)a customer of a qualified utility located within the boundary of a municipality or
county where a community
renewable
clean energy program has been approved by
the commission; and
(b)the customer has not exercised the right to not participate in the community
renewable
clean energy program as provided in Section
54-17-905.
(12)
(14)
"Qualified utility" means the same as that term is defined in Section
54-17-801.
(13)
"Renewable electric energy supply" means incremental renewable energy resources
that are developed to meet the equivalent of the annual electric energy consumption of
participating customers within a participating community.
(14)
"Renewable energy resource" means:
(a)
electric energy generated by a source that is naturally replenished and includes one or
more of the following:
(i)
wind;
(ii)
solar photovoltaic or thermal solar technology;
(iii)
a geothermal resource; or
(iv)
a hydroelectric plant; or
(b)
use of an energy efficient and sustainable technology the commission has approved for
implementation that:
(i)
increases efficient energy usage;
(ii)
is capable of being used for demand response; or
(iii)
facilitates the use and development of renewable generation resources through
electrical grid management or energy storage.
(15)"Replaced asset" means an existing thermal energy resource:
(a)that was built or acquired, in whole or in part, by a qualified utility to serve the
qualified utility's customers, including customers within a participating community;
(b)that was built or acquired prior to commission approval and the effective date of the
community
renewable
clean energy program; and
(c)to the extent the asset is no longer used to serve participating customers.
Section 35, Section
54-17-903 is amended to read:
54-17-903. Program requirement for a municipality or county.
(1)
(a)
As used in this section, "renewable energy resource" means the same as the term
"clean energy resource" is defined in Section
54-17-902.
(b)
Customers of a qualified utility may be served by the community
renewable
clean
energy program described in this part if the municipality or county satisfies the
requirements of Subsection (2).
(2)The municipality or county in which the customer resides shall:
(a)adopt a resolution no later than December 31, 2019, that states a goal of achieving an
amount equivalent to 100% of the annual electric energy supply for participating
customers from a renewable energy resource by 2030;
(b)enter into an agreement with a qualified utility:
(i)with the stipulation of payment by the municipality or county to the qualified
utility for the costs of:
(A)third-party expertise contracted for by the division and the office, for
assistance with activities associated with initial approval of the community
renewable
clean energy program; and
(B)providing notice to the municipality's or county's customers as provided in
Section
54-17-905;
(ii)determining the obligation for the payment of any termination charges under
Subsection
54-17-905(3) that are not paid by a participating customer and not
included in participating customer rates under Subsections
54-17-904(2) and (4);
and
(iii)identifying any initially proposed replaced asset;
(c)adopt a local ordinance that:
(i)establishes participation in the
renewable
clean energy program; and
(ii)is consistent with the terms of the agreement entered into with the qualified utility
under Subsection (2)(b); and
(d)comply with any other terms or conditions required by the commission.
(3)The local ordinance required in Subsection (2)(c) shall be adopted by the municipality
or county within 90 days after the date of the commission order approving the
community
renewable
clean energy program.
Section 36, Section
54-17-904 is amended to read:
54-17-904. Authority of commission to approve a community clean energy
program.
(1)After the commission has adopted administrative rules as required under Section
54-17-909
, a qualified utility may file an application with the commission for approval
of a community
renewable
clean energy program.
(2)The application shall include:
(a)the names of each municipality and county to be served by the community
renewable
clean
energy program;
(b)a map of the geographic boundaries of each municipality and county;
(c)the number of customers served by the qualified utility within those boundaries;
(d)projected rates for participating customers that take into account:
(i)the estimated number of customers expected to participate in the program;
(ii)the quantifiable costs and benefits to the qualified utility and all of the qualified
utility's customers in their capacity as ratepayers of the qualified utility, excluding
costs or benefits that do not directly affect the qualified utility, including as
applicable:
(A)replaced assets;
(B)auxiliary services; and
(C)new
renewable
clean energy resources used to serve the community
renewable
clean energy program; and
(iii)the ongoing costs at the time of the application;
(e)the agreement entered into with the qualified utility under Section
54-17-903;
(f)a proposed plan established by the participating community addressing low-income
programs and assistance;
(g)a proposed solicitation process for the acquisition of
renewable
clean energy
resources as provided in Section
54-17-908; and
(h)any other information the commission may require by rule.
(3)The commission may approve an application for a community
renewable
clean energy
program if the commission finds:
(a)the application meets all of the requirements in this section and administrative rules
adopted by the commission in accordance with Sections
54-17-908 and
54-17-909 to
implement this part; and
(b)the community
renewable
clean energy program is in the public interest.
(4)The rates approved by the commission for participating customers:
(a)shall be based on the factors included in Subsection (2)(d) and any other factor
determined by the commission to be in the public interest;
(b)may not result in any shift of costs or benefits to any nonparticipating customer, or
any other customer of the qualified utility beyond the participating community
boundaries; and
(c)shall take into account any quantifiable benefits to the qualified utility, and the
qualified utility's customers, including participating customers in their capacity as
ratepayers of the qualified utility, excluding costs or benefits that do not directly
affect the qualified utility's costs of service.
(5)
(a)Each municipality or county included in the application shall be a party to the
regulatory proceeding.
(b)A municipality or county identified in the application shall provide information to all
relevant parties in accordance with the commission's rules for discovery,
notwithstanding Title 63G, Chapter 2, Government Records Access and Management
Act.
(6)The community
renewable
clean energy program may not be implemented until after
the municipality or county adopts the ordinance required in Section
54-17-903.
Section 37, Section
54-17-905 is amended to read:
54-17-905. Customer participation -- Election not to participate.
(1)
(a)After commission approval of a community
renewable
clean energy program
and adoption of the ordinance by the participating community as required in Section
54-17-903
, a qualified utility shall provide notice to each of its customers within the
participating community that includes:
(i)the projected rates and terms of participation in the community
renewable
clean
energy program approved by the commission;
(ii)an estimated comparison to otherwise applicable existing rates;
(iii)an explanation that the customer may elect to not participate in the community
renewable
clean energy program by notifying the qualified utility; and
(iv)any other information required by the commission.
(b)The qualified utility shall provide the notice required under Subsection (1)(a) to each
customer:
(i)no less than twice within the period of 60 days immediately preceding the date
required to opt out of the community
renewable
clean energy program; and
(ii)separately from the customer's monthly billing.
(c)The qualified utility shall provide the information required under Subsection (1)(a) in
person to each customer with an electric load of one megawatt or greater measured at
a single meter.
(2)
(a)An existing customer of the qualified utility may elect to not participate in the
community
renewable
clean energy program and continue to pay applicable existing
rates by giving notice to the qualified utility in the manner and within the time period
determined by the commission.
(b)After implementation of the community
renewable
clean energy program:
(i)a customer that previously elected not to participate in the program may become a
participating customer as allowed by commission rules and by giving notice to the
qualified utility in the manner required by the commission; and
(ii)a customer of the qualified utility that begins taking electric service within a
participating community after the date of implementation of the community
renewable
clean energy program shall:
(A)be given notice as determined by the commission; and
(B)shall become a participating customer unless the person elects not to
participate by giving notice to the qualified utility in the manner and within the
time period determined by the commission.
(3)
(a)A customer that does not opt out of the community
renewable
clean energy
program under Subsection (2) may later discontinue participation in the community
renewable
clean energy program as allowed by the commission as described in
Subsection (3)(b) or (c).
(b)
(i)During the initial opt-out period, a participating customer may elect to leave
the program by giving notice to the qualified utility in the manner determined by
the commission.
(ii)A participating customer that opts out as described in Subsection (3)(b)(i) is not
subject to a termination charge.
(c)After the community
renewable
clean energy program's initial opt-out period, a
participating customer may elect to leave the program by:
(i)giving notice to the qualified utility in the manner determined by the commission;
and
(ii)paying a termination charge as determined by the commission that may include
the cost of
renewable
clean energy resources acquired or constructed for the
community
renewable
clean energy program that are not being utilized by
participating customers as necessary to prevent shifting costs to other customers
of the qualified utility.
(4)
(a)A customer of a qualified utility that is annexed into the boundaries of a
participating community after the effective date of the community
renewable
clean
energy program shall be given notice as provided in Subsection (1) advising the
customer of the option to opt out of the program.
(b)A participating customer located in a portion of a county that is annexed into a
municipality that is not a participating community shall continue to be included in the
renewable
clean energy program if the customer remains a customer of the qualified
utility.
(c)If a participating customer is annexed into a municipality that provides electric
service to the municipality's residents:
(i)the customer may continue to be served by the qualified utility under the
community
renewable
clean energy program if the qualified utility enters into an
agreement with the municipality under Section
54-3-30; or
(ii)the municipality shall pay the termination charge for each participating customer
that is no longer served by the qualified utility.
(5)A residential customer that is participating in the net metering program under Title 54,
Chapter 15, Net Metering of Electricity, may not be a participating customer under this
part.
(6)
(a)The cost of providing notice under Subsection (1) shall be paid by the
participating communities.
(b)All other notices required under this section shall be paid for as program costs and
recovered through participating customers' rates.
Section 38, Section
54-17-906 is amended to read:
54-17-906. Customer billing.
The qualified utility shall:
(1)include information on its monthly bills to participating customers identifying the
community
renewable
clean energy program cost; and
(2)provide notice to participating customers of any change in rate for participation in the
community
renewable
clean energy program.
Section 39, Section
54-17-908 is amended to read:
54-17-908. Acquisition of clean energy resources.
(1)In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
commission shall make rules outlining a competitive solicitation process for the
acquisition of
renewable
clean assets acquired by the qualified utility for purposes of
this act.
(2)The solicitation rules shall include the following provisions:
(a)solar photovoltaic or thermal solar energy facilities may be acquired under the
provisions of Section
54-17-807;
(b)
renewable
clean energy resources developed under this part shall be constructed or
acquired subject to an option by the qualified utility to own the
renewable
clean
energy resource so long as including the option in a solicitation is in the interest of
participating customers and other customers of the qualified utility; and
(c)any other requirement determined by the commission to be in the public interest.
(3)Upon completion of a solicitation under this section and the rules adopted by the
commission to implement this section, the commission may approve cost recovery for a
renewable
clean energy resource for the community
renewable
clean energy program if
approval of the
renewable
clean energy resource:
(a)complies with the provisions of this part;
(b)does not result in shifting of costs or benefits to other customers of the qualified
utility; and
(c)is in the public interest.
Section 40, Section
59-2-102 is amended to read:
59-2-102. Definitions.
As used in this chapter:
(1)
(a)"Acquisition cost" means any cost required to put an item of tangible personal
property into service.
(b)"Acquisition cost" includes:
(i)the purchase price of a new or used item;
(ii)the cost of freight, shipping, loading at origin, unloading at destination, crating,
skidding, or any other applicable cost of shipping;
(iii)the cost of installation, engineering, rigging, erection, or assembly, including
foundations, pilings, utility connections, or similar costs; and
(iv)sales and use taxes.
(2)"Aerial applicator" means aircraft or rotorcraft used exclusively for the purpose of
engaging in dispensing activities directly affecting agriculture or horticulture with an
airworthiness certificate from the Federal Aviation Administration certifying the aircraft
or rotorcraft's use for agricultural and pest control purposes.
(3)"Air charter service" means an air carrier operation that requires the customer to hire an
entire aircraft rather than book passage in whatever capacity is available on a scheduled
trip.
(4)"Air contract service" means an air carrier operation available only to customers that
engage the services of the carrier through a contractual agreement and excess capacity
on any trip and is not available to the public at large.
(5)"Aircraft" means the same as that term is defined in Section
72-10-102.
(6)
(a)Except as provided in Subsection (6)(b), "airline" means an air carrier that:
(i)operates:
(A)on an interstate route; and
(B)on a scheduled basis; and
(ii)offers to fly one or more passengers or cargo on the basis of available capacity on
a regularly scheduled route.
(b)"Airline" does not include an:
(i)air charter service; or
(ii)air contract service.
(7)"Assessment roll" or "assessment book" means a permanent record of the assessment of
property as assessed by the county assessor and the commission and may be maintained
manually or as a computerized file as a consolidated record or as multiple records by
type, classification, or categories.
(8)"Base parcel" means a parcel of property that was legally:
(a)subdivided into two or more lots, parcels, or other divisions of land; or
(b)
(i)combined with one or more other parcels of property; and
(ii)subdivided into two or more lots, parcels, or other divisions of land.
(9)
(a)"Certified revenue levy" means a property tax levy that provides an amount of ad
valorem property tax revenue equal to the sum of:
(i)the amount of ad valorem property tax revenue to be generated statewide in the
previous year from imposing a multicounty assessing and collecting levy, as
specified in Section
59-2-1602; and
(ii)the product of:
(A)eligible new growth, as defined in Section
59-2-924; and
(B)the multicounty assessing and collecting levy certified by the commission for
the previous year.
(b)For purposes of this Subsection (9), "ad valorem property tax revenue" does not
include property tax revenue received by a taxing entity from personal property that
is:
(i)assessed by a county assessor in accordance with Part 3, County Assessment; and
(ii)semiconductor manufacturing equipment.
(c)For purposes of calculating the certified revenue levy described in this Subsection
(9), the commission shall use:
(i)the taxable value of real property assessed by a county assessor contained on the
assessment roll;
(ii)the taxable value of real and personal property assessed by the commission; and
(iii)the taxable year end value of personal property assessed by a county assessor
contained on the prior year's assessment roll.
(10)"County-assessed commercial vehicle" means:
(a)any commercial vehicle, trailer, or semitrailer that is not apportioned under Section
41-1a-301
and is not operated interstate to transport the vehicle owner's goods or
property in furtherance of the owner's commercial enterprise;
(b)any passenger vehicle owned by a business and used by its employees for
transportation as a company car or vanpool vehicle; and
(c)vehicles that are:
(i)especially constructed for towing or wrecking, and that are not otherwise used to
transport goods, merchandise, or people for compensation;
(ii)used or licensed as taxicabs or limousines;
(iii)used as rental passenger cars, travel trailers, or motor homes;
(iv)used or licensed in this state for use as ambulances or hearses;
(v)especially designed and used for garbage and rubbish collection; or
(vi)used exclusively to transport students or their instructors to or from any private,
public, or religious school or school activities.
(11)"Eligible judgment" means a final and unappealable judgment or order under Section
59-2-1330
:
(a)that became a final and unappealable judgment or order no more than 14 months
before the day on which the notice described in Section
59-2-919.1 is required to be
provided; and
(b)for which a taxing entity's share of the final and unappealable judgment or order is
greater than or equal to the lesser of:
(i)$5,000; or
(ii)2.5% of the total ad valorem property taxes collected by the taxing entity in the
previous fiscal year.
(12)
(a)"Escaped property" means any property, whether personal, land, or any
improvements to the property, that is subject to taxation and is:
(i)inadvertently omitted from the tax rolls, assigned to the incorrect parcel, or
assessed to the wrong taxpayer by the assessing authority;
(ii)undervalued or omitted from the tax rolls because of the failure of the taxpayer to
comply with the reporting requirements of this chapter; or
(iii)undervalued because of errors made by the assessing authority based upon
incomplete or erroneous information furnished by the taxpayer.
(b)"Escaped property" does not include property that is undervalued because of the use
of a different valuation methodology or because of a different application of the same
valuation methodology.
(13)
(a)"Fair market value" means the amount at which property would change hands
between a willing buyer and a willing seller, neither being under any compulsion to
buy or sell and both having reasonable knowledge of the relevant facts.
(b)For purposes of taxation, "fair market value" shall be determined using the current
zoning laws applicable to the property in question, except in cases where there is a
reasonable probability of a change in the zoning laws affecting that property in the
tax year in question and the change would have an appreciable influence upon the
value.
(14)"Geothermal fluid" means water in any form at temperatures greater than 120 degrees
centigrade naturally present in a geothermal system.
(15)"Geothermal resource" means:
(a)the natural heat of the earth at temperatures greater than 120 degrees centigrade; and
(b)the energy, in whatever form, including pressure, present in, resulting from, created
by, or which may be extracted from that natural heat, directly or through a material
medium.
(16)
(a)"Goodwill" means:
(i)acquired goodwill that is reported as goodwill on the books and records that a
taxpayer maintains for financial reporting purposes; or
(ii)the ability of a business to:
(A)generate income that exceeds a normal rate of return on assets and that results
from a factor described in Subsection (16)(b); or
(B)obtain an economic or competitive advantage resulting from a factor described
in Subsection (16)(b).
(b)The following factors apply to Subsection (16)(a)(ii):
(i)superior management skills;
(ii)reputation;
(iii)customer relationships;
(iv)patronage; or
(v)a factor similar to Subsections (16)(b)(i) through (iv).
(c)"Goodwill" does not include:
(i)the intangible property described in Subsection (19)(a) or (b);
(ii)locational attributes of real property, including:
(A)zoning;
(B)location;
(C)view;
(D)a geographic feature;
(E)an easement;
(F)a covenant;
(G)proximity to raw materials;
(H)the condition of surrounding property; or
(I)proximity to markets;
(iii)value attributable to the identification of an improvement to real property,
including:
(A)reputation of the designer, builder, or architect of the improvement;
(B)a name given to, or associated with, the improvement; or
(C)the historic significance of an improvement; or
(iv)the enhancement or assemblage value specifically attributable to the interrelation
of the existing tangible property in place working together as a unit.
(17)"Governing body" means:
(a)for a county, city, or town, the legislative body of the county, city, or town;
(b)for a special district under Title 17B, Limited Purpose Local Government Entities -
Special Districts, the special district's board of trustees;
(c)for a school district, the local board of education;
(d)for a special service district under Title 17D, Chapter 1, Special Service District Act:
(i)the legislative body of the county or municipality that created the special service
district, to the extent that the county or municipal legislative body has not
delegated authority to an administrative control board established under Section
17D-1-301
; or
(ii)the administrative control board, to the extent that the county or municipal
legislative body has delegated authority to an administrative control board
established under Section
17D-1-301; or
(e)for a public infrastructure district under Title 17D, Chapter 4, Public Infrastructure
District Act, the public infrastructure district's board of trustees.
(18)
(a)Except as provided in Subsection (18)(c), "improvement" means a building,
structure, fixture, fence, or other item that is permanently attached to land, regardless
of whether the title has been acquired to the land, if:
(i)
(A)attachment to land is essential to the operation or use of the item; and
(B)the manner of attachment to land suggests that the item will remain attached to
the land in the same place over the useful life of the item; or
(ii)removal of the item would:
(A)cause substantial damage to the item; or
(B)require substantial alteration or repair of a structure to which the item is
attached.
(b)"Improvement" includes:
(i)an accessory to an item described in Subsection (18)(a) if the accessory is:
(A)essential to the operation of the item described in Subsection (18)(a); and
(B)installed solely to serve the operation of the item described in Subsection
(18)(a); and
(ii)an item described in Subsection (18)(a) that is temporarily detached from the land
for repairs and remains located on the land.
(c)"Improvement" does not include:
(i)an item considered to be personal property pursuant to rules made in accordance
with Section
59-2-107;
(ii)a moveable item that is attached to land for stability only or for an obvious
temporary purpose;
(iii)
(A)manufacturing equipment and machinery; or
(B)essential accessories to manufacturing equipment and machinery;
(iv)an item attached to the land in a manner that facilitates removal without
substantial damage to the land or the item; or
(v)a transportable factory-built housing unit as defined in Section
59-2-1502 if that
transportable factory-built housing unit is considered to be personal property
under Section
59-2-1503.
(19)"Intangible property" means:
(a)property that is capable of private ownership separate from tangible property,
including:
(i)money;
(ii)credits;
(iii)bonds;
(iv)stocks;
(v)representative property;
(vi)franchises;
(vii)licenses;
(viii)trade names;
(ix)copyrights; and
(x)patents;
(b)a low-income housing tax credit;
(c)goodwill; or
(d)a
clean or renewable energy tax credit or incentive, including:
(i)a federal renewable energy production tax credit under Section 45, Internal
Revenue Code;
(ii)a federal energy credit for qualified renewable electricity production facilities
under Section 48, Internal Revenue Code;
(iii)a federal grant for a renewable energy property under American Recovery and
Reinvestment Act of 2009, Pub. L. No. 111-5, Section 1603; and
(iv)a tax credit under Subsection
59-7-614(5).
(20)"Livestock" means:
(a)a domestic animal;
(b)a fish;
(c)a fur-bearing animal;
(d)a honeybee; or
(e)poultry.
(21)"Low-income housing tax credit" means:
(a)a federal low-income housing tax credit under Section 42, Internal Revenue Code; or
(b)a low-income housing tax credit under Section
59-7-607 or Section
59-10-1010.
(22)"Metalliferous minerals" includes gold, silver, copper, lead, zinc, and uranium.
(23)"Mine" means a natural deposit of either metalliferous or nonmetalliferous valuable
mineral.
(24)"Mining" means the process of producing, extracting, leaching, evaporating, or
otherwise removing a mineral from a mine.
(25)
(a)"Mobile flight equipment" means tangible personal property that is owned or
operated by an air charter service, air contract service, or airline and:
(i)is capable of flight or is attached to an aircraft that is capable of flight; or
(ii)is contained in an aircraft that is capable of flight if the tangible personal property
is intended to be used:
(A)during multiple flights;
(B)during a takeoff, flight, or landing; and
(C)as a service provided by an air charter service, air contract service, or airline.
(b)
(i)"Mobile flight equipment" does not include a spare part other than a spare
engine that is rotated at regular intervals with an engine that is attached to the
aircraft.
(ii)In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
the commission may make rules defining the term "regular intervals."
(26)"Nonmetalliferous minerals" includes, but is not limited to, oil, gas, coal, salts, sand,
rock, gravel, and all carboniferous materials.
(27)"Part-year residential property" means property that is not residential property on
January 1 of a calendar year but becomes residential property after January 1 of the
calendar year.
(28)"Personal property" includes:
(a)every class of property as defined in Subsection (29) that is the subject of ownership
and is not real estate or an improvement;
(b)any pipe laid in or affixed to land whether or not the ownership of the pipe is
separate from the ownership of the underlying land, even if the pipe meets the
definition of an improvement;
(c)bridges and ferries;
(d)livestock; and
(e)outdoor advertising structures as defined in Section
72-7-502.
(29)
(a)"Property" means property that is subject to assessment and taxation according
to its value.
(b)"Property" does not include intangible property as defined in this section.
(30)
(a)"Public utility" means:
(i)the operating property of a railroad, gas corporation, oil or gas transportation or
pipeline company, coal slurry pipeline company, electrical corporation, sewerage
corporation, or heat corporation where the company performs the service for, or
delivers the commodity to, the public generally or companies serving the public
generally, or in the case of a gas corporation or an electrical corporation, where
the gas or electricity is sold or furnished to any member or consumers within the
state for domestic, commercial, or industrial use; and
(ii)the operating property of any entity or person defined under Section
54-2-1
except water corporations.
(b)"Public utility" does not include the operating property of a telecommunications
service provider.
(31)
(a)Subject to Subsection (31)(b), "qualifying exempt primary residential rental
personal property" means household furnishings, furniture, and equipment that:
(i)are used exclusively within a dwelling unit that is the primary residence of a
tenant;
(ii)are owned by the owner of the dwelling unit that is the primary residence of a
tenant; and
(iii)after applying the residential exemption described in Section
59-2-103, are
exempt from taxation under this chapter in accordance with Subsection
59-2-1115
(2).
(b)In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
commission may by rule define the term "dwelling unit" for purposes of this
Subsection (31) and Subsection (34).
(32)"Real estate" or "real property" includes:
(a)the possession of, claim to, ownership of, or right to the possession of land;
(b)all mines, minerals, and quarries in and under the land, all timber belonging to
individuals or corporations growing or being on the lands of this state or the United
States, and all rights and privileges appertaining to these; and
(c)improvements.
(33)
(a)"Relationship with an owner of the property's land surface rights" means a
relationship described in Subsection 267(b), Internal Revenue Code, except that the
term 25% shall be substituted for the term 50% in Subsection 267(b), Internal
Revenue Code.
(b)For purposes of determining if a relationship described in Subsection 267(b), Internal
Revenue Code, exists, the ownership of stock shall be determined using the
ownership rules in Subsection 267(c), Internal Revenue Code.
(34)
(a)"Residential property," for purposes of the reductions and adjustments under this
chapter, means any property used for residential purposes as a primary residence.
(b)"Residential property" includes:
(i)except as provided in Subsection (34)(b)(ii), includes household furnishings,
furniture, and equipment if the household furnishings, furniture, and equipment
are:
(A)used exclusively within a dwelling unit that is the primary residence of a
tenant; and
(B)owned by the owner of the dwelling unit that is the primary residence of a
tenant; and
(ii)if the county assessor determines that the property will be used for residential
purposes as a primary residence:
(A)property under construction; or
(B)unoccupied property.
(c)"Residential property" does not include property used for transient residential use.
(d)In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
commission may by rule define the term "dwelling unit" for purposes of Subsection
(31) and this Subsection (34).
(35)"Split estate mineral rights owner" means a person that:
(a)has a legal right to extract a mineral from property;
(b)does not hold more than a 25% interest in:
(i)the land surface rights of the property where the wellhead is located; or
(ii)an entity with an ownership interest in the land surface rights of the property
where the wellhead is located;
(c)is not an entity in which the owner of the land surface rights of the property where
the wellhead is located holds more than a 25% interest; and
(d)does not have a relationship with an owner of the land surface rights of the property
where the wellhead is located.
(36)
(a)"State-assessed commercial vehicle" means:
(i)any commercial vehicle, trailer, or semitrailer that operates interstate or intrastate
to transport passengers, freight, merchandise, or other property for hire; or
(ii)any commercial vehicle, trailer, or semitrailer that operates interstate and
transports the vehicle owner's goods or property in furtherance of the owner's
commercial enterprise.
(b)"State-assessed commercial vehicle" does not include vehicles used for hire that are
specified in Subsection (10)(c) as county-assessed commercial vehicles.
(37)"Subdivided lot" means a lot, parcel, or other division of land, that is a division of a
base parcel.
(38)"Tax area" means a geographic area created by the overlapping boundaries of one or
more taxing entities.
(39)"Taxable value" means fair market value less any applicable reduction allowed for
residential property under Section
59-2-103.
(40)"Taxing entity" means any county, city, town, school district, special taxing district,
special district under Title 17B, Limited Purpose Local Government Entities - Special
Districts, or other political subdivision of the state with the authority to levy a tax on
property.
(41)
(a)"Tax roll" means a permanent record of the taxes charged on property, as
extended on the assessment roll, and may be maintained on the same record or
records as the assessment roll or may be maintained on a separate record properly
indexed to the assessment roll.
(b)"Tax roll" includes tax books, tax lists, and other similar materials.
(42)"Telecommunications service provider" means the same as that term is defined in
Section
59-12-102.
Section 41, Section
59-7-614 is amended to read:
59-7-614. Clean energy systems tax credits -- Definitions -- Certification --
Rulemaking authority.
(1)As used in this section:
(a)
(i)"Active solar system" means a system of equipment that is capable of:
(A)collecting and converting incident solar radiation into thermal, mechanical, or
electrical energy; and
(B)transferring a form of energy described in Subsection (1)(a)(i)(A) by a
separate apparatus to storage or to the point of use.
(ii)"Active solar system" includes water heating, space heating or cooling, and
electrical or mechanical energy generation.
(b)"Biomass system" means a system of apparatus and equipment for use in:
(i)converting material into biomass energy, as defined in Section
59-12-102; and
(ii)transporting the biomass energy by separate apparatus to the point of use or
storage.
(c)
"Clean energy source" means the same as that term is defined in Section
54-17-601.
(c)
(d)
"Commercial energy system" means a system that is:
(i)
(A)an active solar system;
(B)a biomass system;
(C)a direct use geothermal system;
(D)a geothermal electricity system;
(E)a geothermal heat pump system;
(F)a hydroenergy system;
(G)a passive solar system; or
(H)a wind system;
(ii)located in the state; and
(iii)used:
(A)to supply energy to a commercial unit; or
(B)as a commercial enterprise.
(d)
(e)
"Commercial enterprise" means an entity, the purpose of which is to produce:
(i)electrical, mechanical, or thermal energy for sale from a commercial energy
system; or
(ii)hydrogen for sale from a hydrogen production system.
(e)
(f)
(i)"Commercial unit" means a building or structure that an entity uses to
transact business.
(ii)Notwithstanding Subsection
(1)(e)(i)
(1)(f)(i):
(A)with respect to an active solar system used for agricultural water pumping or a
wind system, each individual energy generating device is considered to be a
commercial unit; or
(B)if an energy system is the building or structure that an entity uses to transact
business, a commercial unit is the complete energy system itself.
(f)
(g)
"Direct use geothermal system" means a system of apparatus and equipment that
enables the direct use of geothermal energy to meet energy needs, including heating a
building, an industrial process, and aquaculture.
(g)
(h)
"Geothermal electricity" means energy that is:
(i)contained in heat that continuously flows outward from the earth; and
(ii)used as a sole source of energy to produce electricity.
(h)
(i)
"Geothermal energy" means energy generated by heat that is contained in the
earth.
(i)
(j)
"Geothermal heat pump system" means a system of apparatus and equipment that:
(i)enables the use of thermal properties contained in the earth at temperatures well
below 100 degrees Fahrenheit; and
(ii)helps meet heating and cooling needs of a structure.
(j)
(k)
"Hydroenergy system" means a system of apparatus and equipment that is
capable of:
(i)intercepting and converting kinetic water energy into electrical or mechanical
energy; and
(ii)transferring this form of energy by separate apparatus to the point of use or
storage.
(k)
(l)
"Hydrogen production system" means a system of apparatus and equipment,
located in this state, that uses:
(i)electricity from a
renewable
clean energy source to create hydrogen gas from
water, regardless of whether the
renewable
clean energy source is at a separate
facility or the same facility as the system of apparatus and equipment; or
(ii)uses renewable natural gas to produce hydrogen gas.
(l)
(m)
"Office" means the Office of Energy Development created in Section
79-6-401.
(m)
(n)
(i)"Passive solar system" means a direct thermal system that utilizes the
structure of a building and the structure's operable components to provide for
collection, storage, and distribution of heating or cooling during the appropriate
times of the year by utilizing the climate resources available at the site.
(ii)"Passive solar system" includes those portions and components of a building that
are expressly designed and required for the collection, storage, and distribution of
solar energy.
(n)
(o)
"Photovoltaic system" means an active solar system that generates electricity
from sunlight.
(o)
(p)
(i)"Principal recovery portion" means the portion of a lease payment that
constitutes the cost a person incurs in acquiring a commercial energy system.
(ii)"Principal recovery portion" does not include:
(A)an interest charge; or
(B)a maintenance expense.
(p)
"Renewable energy source" means the same as that term is defined in Section
54-17-601
.
(q)"Residential energy system" means the following used to supply energy to or for a
residential unit:
(i)an active solar system;
(ii)a biomass system;
(iii)a direct use geothermal system;
(iv)a geothermal heat pump system;
(v)a hydroenergy system;
(vi)a passive solar system; or
(vii)a wind system.
(r)
(i)"Residential unit" means a house, condominium, apartment, or similar dwelling
unit that:
(A)is located in the state; and
(B)serves as a dwelling for a person, group of persons, or a family.
(ii)"Residential unit" does not include property subject to a fee under:
(A)Section
59-2-405;
(B)Section
59-2-405.1;
(C)Section
59-2-405.2;
(D)Section
59-2-405.3; or
(E)Section
72-10-110.5.
(s)"Wind system" means a system of apparatus and equipment that is capable of:
(i)intercepting and converting wind energy into mechanical or electrical energy; and
(ii)transferring these forms of energy by a separate apparatus to the point of use,
sale, or storage.
(2)A taxpayer may claim an energy system tax credit as provided in this section against a
tax due under this chapter for a taxable year.
(3)
(a)Subject to the other provisions of this Subsection (3), a taxpayer may claim a
nonrefundable tax credit under this Subsection (3) with respect to a residential unit
the taxpayer owns or uses if:
(i)the taxpayer:
(A)purchases and completes a residential energy system to supply all or part of
the energy required for the residential unit; or
(B)participates in the financing of a residential energy system to supply all or part
of the energy required for the residential unit; and
(ii)the taxpayer obtains a written certification from the office in accordance with
Subsection (8).
(b)
(i)Subject to Subsections (3)(b)(ii) through (iv) and, as applicable, Subsection
(3)(c) or (d), the tax credit is equal to 25% of the reasonable costs of each
residential energy system installed with respect to each residential unit the
taxpayer owns or uses.
(ii)A tax credit under this Subsection (3) may include installation costs.
(iii)A taxpayer may claim a tax credit under this Subsection (3) for the taxable year
in which the residential energy system is completed and placed in service.
(iv)If the amount of a tax credit under this Subsection (3) exceeds a taxpayer's tax
liability under this chapter for a taxable year, the taxpayer may carry forward the
amount of the tax credit exceeding the liability for a period that does not exceed
the next four taxable years.
(c)The total amount of tax credit a taxpayer may claim under this Subsection (3) for a
residential energy system, other than a photovoltaic system, may not exceed $2,000
per residential unit.
(d)The total amount of tax credit a taxpayer may claim under this Subsection (3) for a
photovoltaic system may not exceed:
(i)for a system installed on or after January 1, 2018, but on or before December 31,
2020, $1,600;
(ii)for a system installed on or after January 1, 2021, but on or before December 31,
2021, $1,200;
(iii)for a system installed on or after January 1, 2022, but on or before December 31,
2022, $800;
(iv)for a system installed on or after January 1, 2023, but on or before December 31,
2023, $400; and
(v)for a system installed on or after January 1, 2024, $0.
(e)If a taxpayer sells a residential unit to another person before the taxpayer claims the
tax credit under this Subsection (3):
(i)the taxpayer may assign the tax credit to the other person; and
(ii)
(A)if the other person files a return under this chapter, the other person may
claim the tax credit under this section as if the other person had met the
requirements of this section to claim the tax credit; or
(B)if the other person files a return under Chapter 10, Individual Income Tax Act,
the other person may claim the tax credit under Section
59-10-1014 as if the
other person had met the requirements of Section
59-10-1014 to claim the tax
credit.
(4)
(a)Subject to the other provisions of this Subsection (4), a taxpayer may claim a
refundable tax credit under this Subsection (4) with respect to a commercial energy
system if:
(i)the commercial energy system does not use:
(A)wind, geothermal electricity, solar, or biomass equipment capable of
producing a total of 660 or more kilowatts of electricity; or
(B)solar equipment capable of producing 2,000 or more kilowatts of electricity;
(ii)the taxpayer purchases or participates in the financing of the commercial energy
system;
(iii)
(A)the commercial energy system supplies all or part of the energy required
by commercial units owned or used by the taxpayer; or
(B)the taxpayer sells all or part of the energy produced by the commercial energy
system as a commercial enterprise;
(iv)the taxpayer has not claimed and will not claim a tax credit under Subsection (7)
for hydrogen production using electricity for which the taxpayer claims a tax
credit under this Subsection (4); and
(v)the taxpayer obtains a written certification from the office in accordance with
Subsection (8).
(b)
(i)Subject to Subsections (4)(b)(ii) through (iv), the tax credit is equal to 10% of
the reasonable costs of the commercial energy system.
(ii)A tax credit under this Subsection (4) may include installation costs.
(iii)A taxpayer is eligible to claim a tax credit under this Subsection (4) for the
taxable year in which the commercial energy system is completed and placed in
service.
(iv)The total amount of tax credit a taxpayer may claim under this Subsection (4)
may not exceed $50,000 per commercial unit.
(c)
(i)Subject to Subsections (4)(c)(ii) and (iii), a taxpayer that is a lessee of a
commercial energy system installed on a commercial unit may claim a tax credit
under this Subsection (4) if the taxpayer confirms that the lessor irrevocably elects
not to claim the tax credit.
(ii)A taxpayer described in Subsection (4)(c)(i) may claim as a tax credit under this
Subsection (4) only the principal recovery portion of the lease payments.
(iii)A taxpayer described in Subsection (4)(c)(i) may claim a tax credit under this
Subsection (4) for a period that does not exceed seven taxable years after the day
on which the lease begins, as stated in the lease agreement.
(5)
(a)Subject to the other provisions of this Subsection (5), a taxpayer may claim a
refundable tax credit under this Subsection (5) with respect to a commercial energy
system if:
(i)the commercial energy system uses wind, geothermal electricity, or biomass
equipment capable of producing a total of 660 or more kilowatts of electricity;
(ii)
(A)the commercial energy system supplies all or part of the energy required
by commercial units owned or used by the taxpayer; or
(B)the taxpayer sells all or part of the energy produced by the commercial energy
system as a commercial enterprise;
(iii)the taxpayer has not claimed and will not claim a tax credit under Subsection (7)
for hydrogen production using electricity for which the taxpayer claims a tax
credit under this Subsection (5); and
(iv)the taxpayer obtains a written certification from the office in accordance with
Subsection (8).
(b)
(i)Subject to Subsection (5)(b)(ii), a tax credit under this Subsection (5) is equal
to the product of:
(A)0.35 cents; and
(B)the kilowatt hours of electricity produced and used or sold during the taxable
year.
(ii)A taxpayer is eligible to claim a tax credit under this Subsection (5) for
production occurring during a period of 48 months beginning with the month in
which the commercial energy system is placed in commercial service.
(c)A taxpayer that is a lessee of a commercial energy system installed on a commercial
unit may claim a tax credit under this Subsection (5) if the taxpayer confirms that the
lessor irrevocably elects not to claim the tax credit.
(6)
(a)Subject to the other provisions of this Subsection (6), a taxpayer may claim a
refundable tax credit as provided in this Subsection (6) if:
(i)the taxpayer owns a commercial energy system that uses solar equipment capable
of producing a total of 660 or more kilowatts of electricity;
(ii)
(A)the commercial energy system supplies all or part of the energy required
by commercial units owned or used by the taxpayer; or
(B)the taxpayer sells all or part of the energy produced by the commercial energy
system as a commercial enterprise;
(iii)the taxpayer does not claim a tax credit under Subsection (4) and has not claimed
and will not claim a tax credit under Subsection (7) for hydrogen production using
electricity for which a taxpayer claims a tax credit under this Subsection (6); and
(iv)the taxpayer obtains a written certification from the office in accordance with
Subsection (8).
(b)
(i)Subject to Subsection (6)(b)(ii), a tax credit under this Subsection (6) is equal
to the product of:
(A)0.35 cents; and
(B)the kilowatt hours of electricity produced and used or sold during the taxable
year.
(ii)A taxpayer is eligible to claim a tax credit under this Subsection (6) for
production occurring during a period of 48 months beginning with the month in
which the commercial energy system is placed in commercial service.
(c)A taxpayer that is a lessee of a commercial energy system installed on a commercial
unit may claim a tax credit under this Subsection (6) if the taxpayer confirms that the
lessor irrevocably elects not to claim the tax credit.
(7)
(a)A taxpayer may claim a refundable tax credit as provided in this Subsection (7) if:
(i)the taxpayer owns a hydrogen production system;
(ii)the hydrogen production system is completed and placed in service on or after
January 1, 2022;
(iii)the taxpayer sells as a commercial enterprise, or supplies for the taxpayer's own
use in commercial units, the hydrogen produced from the hydrogen production
system;
(iv)the taxpayer has not claimed and will not claim a tax credit under Subsection (4),
(5), or (6) or Section
59-7-626 for electricity or hydrogen used to meet the
requirements of this Subsection (7); and
(v)the taxpayer obtains a written certification from the office in accordance with
Subsection (8).
(b)
(i)Subject to Subsections (7)(b)(ii) and (iii), a tax credit under this Subsection (7)
is equal to the product of:
(A)$0.12; and
(B)the number of kilograms of hydrogen produced during the taxable year.
(ii)A taxpayer may not receive a tax credit under this Subsection (7) for more than
5,600 metric tons of hydrogen per taxable year.
(iii)A taxpayer is eligible to claim a tax credit under this Subsection (7) for
production occurring during a period of 48 months beginning with the month in
which the hydrogen production system is placed in commercial service.
(8)
(a)Before a taxpayer may claim a tax credit under this section, the taxpayer shall
obtain a written certification from the office.
(b)The office shall issue a taxpayer a written certification if the office determines that:
(i)the taxpayer meets the requirements of this section to receive a tax credit; and
(ii)the residential energy system, the commercial energy system, or the hydrogen
production system with respect to which the taxpayer seeks to claim a tax credit:
(A)has been completely installed;
(B)is a viable system for saving or producing energy from
renewable
clean
resources; and
(C)is safe, reliable, efficient, and technically feasible to ensure that the residential
energy system, the commercial energy system, or the hydrogen production
system uses the state's
renewable
clean and nonrenewable energy resources in
an appropriate and economic manner.
(c)In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
office may make rules:
(i)for determining whether a residential energy system, a commercial energy system,
or a hydrogen production system meets the requirements of Subsection (8)(b)(ii);
and
(ii)for purposes of a tax credit under Subsection (3) or (4), establishing the
reasonable costs of a residential energy system or a commercial energy system, as
an amount per unit of energy production.
(d)A taxpayer that obtains a written certification from the office shall retain the
certification for the same time period a person is required to keep books and records
under Section
59-1-1406.
(e)The office shall submit to the commission an electronic list that includes:
(i)the name and identifying information of each taxpayer to which the office issues a
written certification; and
(ii)for each taxpayer:
(A)the amount of the tax credit listed on the written certification; and
(B)the date the
renewable
clean energy system was installed.
(9)In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
commission may make rules to address the certification of a tax credit under this section.
(10)A tax credit under this section is in addition to any tax credits provided under the laws
or rules and regulations of the United States.
(11)A taxpayer may not claim or carry forward a tax credit described in this section in a
taxable year during which the taxpayer claims or carries forward a tax credit under
Section
59-7-614.7.
Section 42, Section
59-10-1014 is amended to read:
59-10-1014. Nonrefundable clean energy systems tax credits -- Definitions --
Certification -- Rulemaking authority.
(1)As used in this section:
(a)
(i)"Active solar system" means a system of equipment that is capable of:
(A)collecting and converting incident solar radiation into thermal, mechanical, or
electrical energy; and
(B)transferring a form of energy described in Subsection (1)(a)(i)(A) by a
separate apparatus to storage or to the point of use.
(ii)"Active solar system" includes water heating, space heating or cooling, and
electrical or mechanical energy generation.
(b)"Biomass system" means a system of apparatus and equipment for use in:
(i)converting material into biomass energy, as defined in Section
59-12-102; and
(ii)transporting the biomass energy by separate apparatus to the point of use or
storage.
(c)"Direct use geothermal system" means a system of apparatus and equipment that
enables the direct use of geothermal energy to meet energy needs, including heating a
building, an industrial process, and aquaculture.
(d)"Geothermal electricity" means energy that is:
(i)contained in heat that continuously flows outward from the earth; and
(ii)used as a sole source of energy to produce electricity.
(e)"Geothermal energy" means energy generated by heat that is contained in the earth.
(f)"Geothermal heat pump system" means a system of apparatus and equipment that:
(i)enables the use of thermal properties contained in the earth at temperatures well
below 100 degrees Fahrenheit; and
(ii)helps meet heating and cooling needs of a structure.
(g)"Hydroenergy system" means a system of apparatus and equipment that is capable of:
(i)intercepting and converting kinetic water energy into electrical or mechanical
energy; and
(ii)transferring this form of energy by separate apparatus to the point of use or
storage.
(h)"Office" means the Office of Energy Development created in Section
79-6-401.
(i)
(i)"Passive solar system" means a direct thermal system that utilizes the structure
of a building and its operable components to provide for collection, storage, and
distribution of heating or cooling during the appropriate times of the year by
utilizing the climate resources available at the site.
(ii)"Passive solar system" includes those portions and components of a building that
are expressly designed and required for the collection, storage, and distribution of
solar energy.
(j)"Photovoltaic system" means an active solar system that generates electricity from
sunlight.
(k)
(i)"Principal recovery portion" means the portion of a lease payment that
constitutes the cost a person incurs in acquiring a residential energy system.
(ii)"Principal recovery portion" does not include:
(A)an interest charge; or
(B)a maintenance expense.
(l)"Residential energy system" means the following used to supply energy to or for a
residential unit:
(i)an active solar system;
(ii)a biomass system;
(iii)a direct use geothermal system;
(iv)a geothermal heat pump system;
(v)a hydroenergy system;
(vi)a passive solar system; or
(vii)a wind system.
(m)
(i)"Residential unit" means a house, condominium, apartment, or similar
dwelling unit that:
(A)is located in the state; and
(B)serves as a dwelling for a person, group of persons, or a family.
(ii)"Residential unit" does not include property subject to a fee under:
(A)Section
59-2-405;
(B)Section
59-2-405.1;
(C)Section
59-2-405.2;
(D)Section
59-2-405.3; or
(E)Section
72-10-110.5.
(n)"Wind system" means a system of apparatus and equipment that is capable of:
(i)intercepting and converting wind energy into mechanical or electrical energy; and
(ii)transferring these forms of energy by a separate apparatus to the point of use or
storage.
(2)A claimant, estate, or trust may claim an energy system tax credit as provided in this
section against a tax due under this chapter for a taxable year.
(3)For a taxable year beginning on or after January 1, 2007, a claimant, estate, or trust may
claim a nonrefundable tax credit under this section with respect to a residential unit the
claimant, estate, or trust owns or uses if:
(a)the claimant, estate, or trust:
(i)purchases and completes a residential energy system to supply all or part of the
energy required for the residential unit; or
(ii)participates in the financing of a residential energy system to supply all or part of
the energy required for the residential unit;
(b)the residential energy system is installed on or after January 1, 2007; and
(c)the claimant, estate, or trust obtains a written certification from the office in
accordance with Subsection (5).
(4)
(a)For a residential energy system, other than a photovoltaic system, the tax credit
described in this section is equal to the lesser of:
(i)25% of the reasonable costs, including installation costs, of each residential
energy system installed with respect to each residential unit the claimant, estate, or
trust owns or uses; and
(ii)$2,000.
(b)Subject to Subsection (5)(d), for a residential energy system that is a photovoltaic
system, the tax credit described in this section is equal to the lesser of:
(i)25% of the reasonable costs, including installation costs, of each system installed
with respect to each residential unit the claimant, estate, or trust owns or uses; or
(ii)
(A)for a system installed on or after January 1, 2007, but on or before
December 31, 2017, $2,000;
(B)for a system installed on or after January 1, 2018, but on or before December
31, 2020, $1,600;
(C)for a system installed on or after January 1, 2021, but on or before December
31, 2021, $1,200;
(D)for a system installed on or after January 1, 2022, but on or before December
31, 2022, $800;
(E)for a system installed on or after January 1, 2023, but on or before December
31, 2023, $400; and
(F)for a system installed on or after January 1, 2024, $0.
(c)
(i)The office shall determine the amount of the tax credit that a claimant, estate,
or trust may claim and list that amount on the written certification that the office
issues under Subsection (5).
(ii)The claimant, estate, or trust may claim the tax credit in the amount listed on the
written certification that the office issues under Subsection (5).
(d)A claimant, estate, or trust may claim a tax credit under Subsection (3) for the
taxable year in which the residential energy system is installed.
(e)If the amount of a tax credit listed on the written certification exceeds a claimant's,
estate's, or trust's tax liability under this chapter for a taxable year, the claimant,
estate, or trust may carry forward the amount of the tax credit exceeding the liability
for a period that does not exceed the next four taxable years.
(f)A claimant, estate, or trust may claim a tax credit with respect to additional
residential energy systems or parts of residential energy systems for a subsequent
taxable year if the total amount of tax credit the claimant, estate, or trust claims does
not exceed $2,000 per residential unit.
(g)
(i)Subject to Subsections (4)(g)(ii) and (iii), a claimant, estate, or trust that leases
a residential energy system installed on a residential unit may claim a tax credit
under Subsection (3) if the claimant, estate, or trust confirms that the lessor
irrevocably elects not to claim the tax credit.
(ii)A claimant, estate, or trust described in Subsection (4)(g)(i) that leases a
residential energy system may claim as a tax credit under Subsection (3) only the
principal recovery portion of the lease payments.
(iii)A claimant, estate, or trust described in Subsection (4)(g)(i) that leases a
residential energy system may claim a tax credit under Subsection (3) for a period
that does not exceed seven taxable years after the date the lease begins, as stated
in the lease agreement.
(h)If a claimant, estate, or trust sells a residential unit to another person before the
claimant, estate, or trust claims the tax credit under Subsection (3):
(i)the claimant, estate, or trust may assign the tax credit to the other person; and
(ii)
(A)if the other person files a return under Chapter 7, Corporate Franchise and
Income Taxes, the other person may claim the tax credit as if the other person
had met the requirements of Section
59-7-614 to claim the tax credit; or
(B)if the other person files a return under this chapter, the other person may claim
the tax credit under this section as if the other person had met the requirements
of this section to claim the tax credit.
(5)
(a)Before a claimant, estate, or trust may claim a tax credit under this section, the
claimant, estate, or trust shall obtain a written certification from the office.
(b)The office shall issue a claimant, estate, or trust a written certification if the office
determines that:
(i)the claimant, estate, or trust meets the requirements of this section to receive a tax
credit; and
(ii)the office determines that the residential energy system with respect to which the
claimant, estate, or trust seeks to claim a tax credit:
(A)has been completely installed;
(B)is a viable system for saving or producing energy from
renewable
clean
resources; and
(C)is safe, reliable, efficient, and technically feasible to ensure that the residential
energy system uses the state's renewable and nonrenewable energy resources in
an appropriate and economic manner.
(c)In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
office may make rules:
(i)for determining whether a residential energy system meets the requirements of
Subsection (5)(b)(ii); and
(ii)for purposes of determining the amount of a tax credit that a claimant, estate, or
trust may receive under Subsection (4), establishing the reasonable costs of a
residential energy system, as an amount per unit of energy production.
(d)A claimant, estate, or trust that obtains a written certification from the office shall
retain the certification for the same time period a person is required to keep books
and records under Section
59-1-1406.
(e)The office shall submit to the commission an electronic list that includes:
(i)the name and identifying information of each claimant, estate, or trust to which the
office issues a written certification; and
(ii)for each claimant, estate, or trust:
(A)the amount of the tax credit listed on the written certification; and
(B)the date the
renewable
clean energy system was installed.
(6)A tax credit under this section is in addition to any tax credits provided under the laws
or rules and regulations of the United States.
(7)A purchaser of one or more solar units that claims a tax credit under Section
59-10-1024
for the purchase of the one or more solar units may not claim a tax credit under this
section for that purchase.
Section 43, Section
59-10-1106 is amended to read:
59-10-1106. Refundable clean energy systems tax credits -- Definitions --
Certification -- Rulemaking authority.
(1)As used in this section:
(a)"Active solar system" means the same as that term is defined in Section
59-10-1014.
(b)"Biomass system" means the same as that term is defined in Section
59-10-1014.
(c)"Commercial energy system" means the same as that term is defined in Section
59-7-614
.
(d)"Commercial enterprise" means the same as that term is defined in Section
59-7-614.
(e)"Commercial unit" means the same as that term is defined in Section
59-7-614.
(f)"Direct use geothermal system" means the same as that term is defined in Section
59-10-1014
.
(g)"Geothermal electricity" means the same as that term is defined in Section
59-10-1014
.
(h)"Geothermal energy" means the same as that term is defined in Section
59-10-1014.
(i)"Geothermal heat pump system" means the same as that term is defined in Section
59-10-1014
.
(j)"Hydroenergy system" means the same as that term is defined in Section
59-10-1014.
(k)"Hydrogen production system" means the same as that term is defined in Section
59-7-614
.
(l)"Office" means the Office of Energy Development created in Section
79-6-401.
(m)"Passive solar system" means the same as that term is defined in Section
59-10-1014.
(n)"Principal recovery portion" means the same as that term is defined in Section
59-10-1014
.
(o)"Wind system" means the same as that term is defined in Section
59-10-1014.
(2)A claimant, estate, or trust may claim an energy system tax credit as provided in this
section against a tax due under this chapter for a taxable year.
(3)
(a)Subject to the other provisions of this Subsection (3), a claimant, estate, or trust
may claim a refundable tax credit under this Subsection (3) with respect to a
commercial energy system if:
(i)the commercial energy system does not use:
(A)wind, geothermal electricity, solar, or biomass equipment capable of
producing a total of 660 or more kilowatts of electricity; or
(B)solar equipment capable of producing 2,000 or more kilowatts of electricity;
(ii)the claimant, estate, or trust purchases or participates in the financing of the
commercial energy system;
(iii)
(A)the commercial energy system supplies all or part of the energy required
by commercial units owned or used by the claimant, estate, or trust; or
(B)the claimant, estate, or trust sells all or part of the energy produced by the
commercial energy system as a commercial enterprise;
(iv)the claimant, estate, or trust has not claimed and will not claim a tax credit under
Subsection (6) for hydrogen production using electricity for which the claimant,
estate, or trust claims a tax credit under this Subsection (3); and
(v)the claimant, estate, or trust obtains a written certification from the office in
accordance with Subsection (7).
(b)
(i)Subject to Subsections (3)(b)(ii) through (iv), the tax credit is equal to 10% of
the reasonable costs of the commercial energy system.
(ii)A tax credit under this Subsection (3) may include installation costs.
(iii)A claimant, estate, or trust is eligible to claim a tax credit under this Subsection
(3) for the taxable year in which the commercial energy system is completed and
placed in service.
(iv)The total amount of tax credit a claimant, estate, or trust may claim under this
Subsection (3) may not exceed $50,000 per commercial unit.
(c)
(i)Subject to Subsections (3)(c)(ii) and (iii), a claimant, estate, or trust that is a
lessee of a commercial energy system installed on a commercial unit may claim a
tax credit under this Subsection (3) if the claimant, estate, or trust confirms that
the lessor irrevocably elects not to claim the tax credit.
(ii)A claimant, estate, or trust described in Subsection (3)(c)(i) may claim as a tax
credit under this Subsection (3) only the principal recovery portion of the lease
payments.
(iii)A claimant, estate, or trust described in Subsection (3)(c)(i) may claim a tax
credit under this Subsection (3) for a period that does not exceed seven taxable
years after the day on which the lease begins, as stated in the lease agreement.
(4)
(a)Subject to the other provisions of this Subsection (4), a claimant, estate, or trust
may claim a refundable tax credit under this Subsection (4) with respect to a
commercial energy system if:
(i)the commercial energy system uses wind, geothermal electricity, or biomass
equipment capable of producing a total of 660 or more kilowatts of electricity;
(ii)
(A)the commercial energy system supplies all or part of the energy required
by commercial units owned or used by the claimant, estate, or trust; or
(B)the claimant, estate, or trust sells all or part of the energy produced by the
commercial energy system as a commercial enterprise;
(iii)the claimant, estate, or trust has not claimed and will not claim a tax credit under
Subsection (6) for hydrogen production using electricity for which the claimant,
estate, or trust claims a tax credit under this Subsection (4); and
(iv)the claimant, estate, or trust obtains a written certification from the office in
accordance with Subsection (7).
(b)
(i)Subject to Subsection (4)(b)(ii), a tax credit under this Subsection (4) is equal
to the product of:
(A)0.35 cents; and
(B)the kilowatt hours of electricity produced and used or sold during the taxable
year.
(ii)A claimant, estate, or trust is eligible to claim a tax credit under this Subsection
(4) for production occurring during a period of 48 months beginning with the
month in which the commercial energy system is placed in commercial service.
(c)A claimant, estate, or trust that is a lessee of a commercial energy system installed on
a commercial unit may claim a tax credit under this Subsection (4) if the claimant,
estate, or trust confirms that the lessor irrevocably elects not to claim the tax credit.
(5)
(a)Subject to the other provisions of this Subsection (5), a claimant, estate, or trust
may claim a refundable tax credit as provided in this Subsection (5) if:
(i)the claimant, estate, or trust owns a commercial energy system that uses solar
equipment capable of producing a total of 660 or more kilowatts of electricity;
(ii)
(A)the commercial energy system supplies all or part of the energy required
by commercial units owned or used by the claimant, estate, or trust; or
(B)the claimant, estate, or trust sells all or part of the energy produced by the
commercial energy system as a commercial enterprise;
(iii)the claimant, estate, or trust does not claim a tax credit under Subsection (3);
(iv)the claimant, estate, or trust has not claimed and will not claim a tax credit under
Subsection (6) for hydrogen production using electricity for which a taxpayer
claims a tax credit under this Subsection (5); and
(v)the claimant, estate, or trust obtains a written certification from the office in
accordance with Subsection (7).
(b)
(i)Subject to Subsection (5)(b)(ii), a tax credit under this Subsection (5) is equal
to the product of:
(A)0.35 cents; and
(B)the kilowatt hours of electricity produced and used or sold during the taxable
year.
(ii)A claimant, estate, or trust is eligible to claim a tax credit under this Subsection
(5) for production occurring during a period of 48 months beginning with the
month in which the commercial energy system is placed in commercial service.
(c)A claimant, estate, or trust that is a lessee of a commercial energy system installed on
a commercial unit may claim a tax credit under this Subsection (5) if the claimant,
estate, or trust confirms that the lessor irrevocably elects not to claim the tax credit.
(6)
(a)A claimant, estate, or trust may claim a refundable tax credit as provided in this
Subsection (6) if:
(i)the claimant, estate, or trust owns a hydrogen production system;
(ii)the hydrogen production system is completed and placed in service on or after
January 1, 2022;
(iii)the claimant, estate, or trust sells as a commercial enterprise, or supplies for the
claimant's, estate's, or trust's own use in commercial units, the hydrogen produced
from the hydrogen production system;
(iv)the claimant, estate, or trust has not claimed and will not claim a tax credit under
Subsection (3), (4), or (5) for electricity used to meet the requirements of this
Subsection (6); and
(v)the claimant, estate, or trust obtains a written certification from the office in
accordance with Subsection (7).
(b)
(i)Subject to Subsections (6)(b)(ii) and (iii), a tax credit under this Subsection (6)
is equal to the product of:
(A)$0.12; and
(B)the number of kilograms of hydrogen produced during the taxable year.
(ii)A claimant, estate, or trust may not receive a tax credit under this Subsection (6)
for more than 5,600 metric tons of hydrogen per taxable year.
(iii)A claimant, estate, or trust is eligible to claim a tax credit under this Subsection
(6) for production occurring during a period of 48 months beginning with the
month in which the hydrogen production system is placed in commercial service.
(7)
(a)Before a claimant, estate, or trust may claim a tax credit under this section, the
claimant, estate, or trust shall obtain a written certification from the office.
(b)The office shall issue a claimant, estate, or trust a written certification if the office
determines that:
(i)the claimant, estate, or trust meets the requirements of this section to receive a tax
credit; and
(ii)the commercial energy system or the hydrogen production system with respect to
which the claimant, estate, or trust seeks to claim a tax credit:
(A)has been completely installed;
(B)is a viable system for saving or producing energy from
renewable
clean
resources; and
(C)is safe, reliable, efficient, and technically feasible to ensure that the
commercial energy system or the hydrogen production system uses the state's
renewable
clean and nonrenewable resources in an appropriate and economic
manner.
(c)In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
office may make rules:
(i)for determining whether a commercial energy system or a hydrogen production
system meets the requirements of Subsection (7)(b)(ii); and
(ii)for purposes of a tax credit under Subsection (3), establishing the reasonable costs
of a commercial energy system, as an amount per unit of energy production.
(d)A claimant, estate, or trust that obtains a written certification from the office shall
retain the certification for the same time period a person is required to keep books
and records under Section
59-1-1406.
(e)The office shall submit to the commission an electronic list that includes:
(i)the name and identifying information of each claimant, estate, or trust to which the
office issues a written certification; and
(ii)for each claimant, estate, or trust:
(A)the amount of the tax credit listed on the written certification; and
(B)the date the commercial energy system or the hydrogen production system
was installed.
(8)In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
commission may make rules to address the certification of a tax credit under this section.
(9)A tax credit under this section is in addition to any tax credits provided under the laws
or rules and regulations of the United States.
(10)A purchaser of one or more solar units that claims a tax credit under Section
59-10-1024
for the purchase of the one or more solar units may not claim a tax credit
under this section for that purchase.
(11)A claimant, estate, or trust may not claim or carry forward a tax credit described in this
section in a taxable year during which the claimant, estate, or trust claims or carries
forward a tax credit under Section
59-10-1029.
Section 44, Section
63A-5b-702 is amended to read:
63A-5b-702. Standards and requirements for state facilities -- Life-cycle cost
effectiveness.
(1)As used in this section:
(a)
"Clean energy system" means a system designed to use solar, wind, geothermal
power, wood, hydropower, nuclear, or other clean energy source to heat, cool, or
provide electricity to a building.
(b)
"Life cycle cost-effective" means the most prudent cost of owning, operating, and
maintaining a facility, including the initial cost, energy costs, operation and
maintenance costs, repair costs, and the costs of energy conservation and
renewable
clean
energy systems.
(b)
"Renewable energy system" means a system designed to use solar, wind,
geothermal power, wood, or other replenishable energy source to heat, cool, or
provide electricity to a building.
(2)The director shall, in accordance with Title 63G, Chapter 3, Utah Administrative
Rulemaking Act, make rules:
(a)that establish standards and requirements for determining whether a state facility
project is life cycle cost-effective;
(b)for the monitoring of an agency's operation and maintenance expenditures for a
state-owned facility;
(c)to establish standards and requirements for utility metering;
(d)that create an operation and maintenance program for an agency's facilities;
(e)that establish a methodology for determining reasonably anticipated inflationary
costs for each operation and maintenance program described in Subsection (2)(d);
(f)that require an agency to report the amount the agency receives and expends on
operation and maintenance; and
(g)that provide for determining the actual cost for operation and maintenance requests
for a new facility.
(3)The director shall:
(a)ensure that state-owned facilities, except for facilities under the control of the State
Capitol Preservation Board, are life cycle cost-effective;
(b)conduct ongoing facilities audits of state-owned facilities; and
(c)monitor an agency's operation and maintenance expenditures for state-owned
facilities as provided in rules made under Subsection (2)(b).
(4)
(a)An agency shall comply with the rules made under Subsection (2) for new facility
requests submitted to the Legislature for a session of the Legislature after the 2017
General Session.
(b)The Office of the Legislative Fiscal Analyst and the Governor's Office of Planning
and Budget shall, for each agency with operation and maintenance expenses, ensure
that each required budget for the agency is adjusted in accordance with the rules
described in Subsection (2)(e).
Section 45, Section
63H-1-201 is amended to read:
63H-1-201. Creation of military installation development authority -- Status and
powers of authority -- Limitation.
(1)There is created a military installation development authority.
(2)The authority is:
(a)an independent, nonprofit, separate body corporate and politic, with perpetual
succession and statewide jurisdiction, whose purpose is to facilitate the development
of land within a project area or on military land associated with a project area;
(b)a political subdivision of the state; and
(c)a public corporation, as defined in Section
63E-1-102.
(3)The authority may:
(a)facilitate the development of land within one or more project areas, including the
ongoing operation of facilities within a project area, or development of military land
associated with a project area;
(b)sue and be sued;
(c)enter into contracts generally;
(d)by itself or through a subsidiary, buy, obtain an option upon, or otherwise acquire
any interest in real or personal property:
(i)in a project area; or
(ii)outside a project area for public infrastructure and improvements, if the board
considers the purchase, option, or other interest acquisition to be necessary for
fulfilling the authority's development objectives;
(e)sell, convey, grant, dispose of by gift, or otherwise dispose of any interest in real or
personal property;
(f)enter into a lease agreement on real or personal property, either as lessee or lessor:
(i)in a project area; or
(ii)outside a project area, if the board considers the lease to be necessary for
fulfilling the authority's development objectives;
(g)provide for the development of land within a project area or military land associated
with the project area under one or more contracts;
(h)exercise powers and perform functions under a contract, as authorized in the contract;
(i)exercise exclusive police power within a project area to the same extent as though the
authority were a municipality, including the collection of regulatory fees;
(j)receive the property tax allocation and other taxes and fees as provided in this chapter;
(k)accept financial or other assistance from any public or private source for the
authority's activities, powers, and duties, and expend any funds so received for any of
the purposes of this chapter;
(l)borrow money, contract with, or accept financial or other assistance from the federal
government, a public entity, or any other source for any of the purposes of this
chapter and comply with any conditions of the loan, contract, or assistance;
(m)issue bonds to finance the undertaking of any development objectives of the
authority, including bonds under Title 11, Chapter 17, Utah Industrial Facilities and
Development Act, and bonds under Title 11, Chapter 42, Assessment Area Act;
(n)hire employees, including contract employees;
(o)transact other business and exercise all other powers provided for in this chapter;
(p)enter into a development agreement with a developer of land within a project area;
(q)enter into an agreement with a political subdivision of the state under which the
political subdivision provides one or more municipal services within a project area;
(r)enter into an agreement with a private contractor to provide one or more municipal
services within a project area;
(s)provide for or finance an energy efficiency upgrade, a
renewable
clean energy
system, or electric vehicle charging infrastructure as defined in Section
11-42a-102,
in accordance with Title 11, Chapter 42a, Commercial Property Assessed Clean
Energy Act;
(t)exercise powers and perform functions that the authority is authorized by statute to
exercise or perform;
(u)enter into an agreement with the federal government or an agency of the federal
government under which the federal government or agency:
(i)provides law enforcement services only to military land within a project area; and
(ii)may enter into a mutual aid or other cooperative agreement with a law
enforcement agency of the state or a political subdivision of the state;
(v)by itself or through a subsidiary, act as a facilitator under Title 63N, Chapter 13, Part
3, Facilitating Public-private Partnerships Act, to provide expertise and knowledge to
another governmental entity interested in public-private partnerships;
(w)enter into an intergovernmental support agreement under Title 10, U.S.C. Sec. 2679
with the military to provide support services to the military in accordance with the
agreement;
(x)act as a developer, or assist a developer chosen by the military, to develop military
land as part of an enhanced use lease under Title 10, U.S.C. Sec. 2667; and
(y)develop public infrastructure and improvements.
(4)The authority may not itself provide law enforcement service or fire protection service
within a project area but may enter into an agreement for one or both of those services,
as provided in Subsection (3)(q).
(5)The authority shall provide support to a subsidiary that enters into an agreement under
Subsection (3)(v) that the authority determines necessary for the subsidiary to fulfill the
requirements of the agreement.
(6)Because providing procurement, utility, construction, and other services for use by a
military installation, including providing public infrastructure and improvements for use
or occupancy by the military, are core functions of the authority and are typically
provided by a local government for the local government's own needs or use, these
services provided by the authority for the military under this chapter are considered to be
for the authority's own needs and use.
(7)A public infrastructure district created by the authority under Title 17D, Chapter 4,
Public Infrastructure District Act, is a subsidiary of the authority.
Section 46, Section
63L-11-304 is amended to read:
63L-11-304. Public lands transfer study and economic analysis -- Report.
(1)As used in this section:
(a)"Public lands" means the same as that term is defined in Section
63L-6-102.
(b)"Transfer of public lands" means the transfer of public lands from federal ownership
to state ownership.
(2)The office shall, on an ongoing basis, report to the Federalism Commission regarding
the ramifications and economic impacts of the transfer of public lands.
(3)The office shall:
(a)on an ongoing basis, discuss issues related to the transfer of public lands with:
(i)the School and Institutional Trust Lands Administration;
(ii)local governments;
(iii)water managers;
(iv)environmental advocates;
(v)outdoor recreation advocates;
(vi)nonconventional
and
, renewable
, and clean energy producers;
(vii)tourism representatives;
(viii)wilderness advocates;
(ix)ranchers and agriculture advocates;
(x)oil, gas, and mining producers;
(xi)fishing, hunting, and other wildlife interests;
(xii)timber producers;
(xiii)other interested parties; and
(xiv)the Federalism Commission; and
(b)develop ways to obtain input from citizens of the state regarding the transfer of
public lands and the future care and use of public lands.
Section 47, Section
79-3-202 is amended to read:
79-3-202. Powers and duties of survey.
(1)The survey shall:
(a)assist and advise state and local agencies and state educational institutions on
geologic, paleontologic, and mineralogic subjects;
(b)collect and distribute reliable information regarding the mineral industry and mineral
resources, topography, paleontology, and geology of the state;
(c)survey the geology of the state, including mineral occurrences and the ores of metals,
energy resources, industrial minerals and rocks, mineral-bearing waters, and surface
and ground water resources, with special reference to their economic contents,
values, uses, kind, and availability in order to facilitate their economic use;
(d)investigate the kind, amount, and availability of mineral substances contained in
lands owned and controlled by the state, to contribute to the most effective and
beneficial administration of these lands for the state;
(e)determine and investigate areas of geologic and topographic hazards that could affect
the safety of, or cause economic loss to, the citizens of the state;
(f)assist local and state agencies in their planning, zoning, and building regulation
functions by publishing maps, delineating appropriately wide special earthquake risk
areas, and, at the request of state agencies or other governmental agencies, review the
siting of critical facilities;
(g)cooperate with state agencies, political subdivisions of the state, quasi-governmental
agencies, federal agencies, schools of higher education, and others in fields of mutual
concern, which may include field investigations and preparation, publication, and
distribution of reports and maps;
(h)collect and preserve data pertaining to mineral resource exploration and development
programs and construction activities, such as claim maps, location of drill holes,
location of surface and underground workings, geologic plans and sections, drill logs,
and assay and sample maps, including the maintenance of a sample library of cores
and cuttings;
(i)study and analyze other scientific, economic, or aesthetic problems as, in the
judgment of the board, should be undertaken by the survey to serve the needs of the
state and to support the development of natural resources and utilization of lands
within the state;
(j)prepare, publish, distribute, and sell maps, reports, and bulletins, embodying the work
accomplished by the survey, directly or in collaboration with others, and collect and
prepare exhibits of the geological and mineral resources of this state and interpret
their significance;
(k)collect, maintain, and preserve data and information in order to accomplish the
purposes of this section and act as a repository for information concerning the
geology of this state;
(l)stimulate research, study, and activities in the field of paleontology;
(m)mark, protect, and preserve critical paleontological sites;
(n)collect, preserve, and administer critical paleontological specimens until the
specimens are placed in a repository or curation facility;
(o)administer critical paleontological site excavation records;
(p)edit and publish critical paleontological records and reports;
(q)by following the procedures and requirements of Title 63J, Chapter 5, Federal Funds
Procedures Act, seek federal grants, loans, or participation in federal programs, and,
in accordance with applicable federal program guidelines, administer federally
funded state programs regarding:
(i)renewable energy;
(ii)energy efficiency;
and
(iii)energy conservation; and
(iv)
clean energy; and
(r)collect the land use permits described in Sections
10-9a-521 and
17-27a-520.
(2)
(a)The survey may maintain as confidential, and not as a public record, information
provided to the survey by any source.
(b)The board shall adopt rules in order to determine whether to accept the information
described in Subsection (2)(a) and to maintain the confidentiality of the accepted
information.
(c)The survey shall maintain information received from any source at the level of
confidentiality assigned to it by the source.
(3)Upon approval of the board, the survey shall undertake other activities consistent with
Subsection (1).
(4)
(a)Subject to the authority granted to the department, the survey may enter into
cooperative agreements with the entities specified in Subsection (1)(g), if approved
by the board, and may accept or commit allocated or budgeted funds in connection
with those agreements.
(b)The survey may undertake joint projects with private entities if:
(i)the action is approved by the board;
(ii)the projects are not inconsistent with the state's objectives; and
(iii)the results of the projects are available to the public.
Section 48.
Effective date.
This bill takes effect on May 1, 2024.
Section 49.
Coordinating H.B. 241 with H.B. 116.
If
H.B. 241, Clean Energy Amendments, and
H.B. 116, Commercial Property
Assessed Clean Energy Act Amendments, both pass and become law, the
Legislature intends that, on May 1, 2024, Subsection
11-42a-102(6) in H.B. 241
be amended to read:
"(6)(a) "Clean energy system" means an energy system that:
(i) produces energy from clean resources, including:
(A) a photovoltaic system;
(B) a solar thermal system;
(C) a wind system;
(D) a geothermal system, including a generation system, a direct-use system,
or a ground source heat pump system;
(E) a micro-hydro system;
(F) a biofuel system;
(G) energy derived from nuclear fuel; or
(H) any other clean source system that the governing body of the local entity
approves;
(ii) stores energy, including:
(A) a battery storage system; or
(B) any other energy storing system that the governing body or chief executive
officer of a local entity approves.
(b) "Clean energy system" includes any improvement that relates physically or
functionally to any of the products, systems, or devices listed in Subsection
(6)(a)(i) or (ii).
(c) "Clean energy system" does not include a system described in Subsection
(6)(a)(i) if the system provides energy to property outside the energy assessment
area, unless the system:
(i)(A) existed before the creation of the energy assessment area; and
(B) beginning before January 1, 2017, provides energy to property outside of
the area that became the energy assessment area;
(ii) provides energy to property outside the energy assessment area under an
agreement with a public electrical utility that is substantially similar to agreements
for other renewable energy systems that are not funded under this chapter; or
(iii) is a biofuel system.".