1     
ENERGY SECURITY ADJUSTMENTS

2     
2024 THIRD SPECIAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Carl R. Albrecht

5     
Senate Sponsor: Derrin R. Owens

6     

7     LONG TITLE
8     General Description:
9          This bill amends provisions related to the decommissioning or disposal of project entity
10     assets and the associated permitting process.
11     Highlighted Provisions:
12          This bill:
13          ▸     amends provisions related to the notice of decommissioning or disposal of project
14     entity assets;
15          ▸     removes the requirement for the Legislative Management Committee to make
16     certain recommendations if a project entity does not provide notice of intent to file
17     an application;
18          ▸     requires the Decommissioned Asset Disposition Authority (authority) to submit a
19     complete alternative air permit application to the Division of Air Quality (division)
20     by December 31, 2024;
21          ▸     requires the division to provide the results of an evaluation to the authority within
22     30 days of receipt of the application, unless additional time is needed;
23          ▸     requires the study on the state implementation plan to focus on ensuring that the
24     continued operation of the power plants under an alternative permit will not
25     jeopardize the state's ability to meet federal air quality standards;
26          ▸     repeals the project entity oversight committee; and
27          ▸     makes technical changes.
28     Money Appropriated in this Bill:
29          None
30     Other Special Clauses:
31          This bill provides a special effective date.
32     Utah Code Sections Affected:
33     AMENDS:
34          11-13-318, as last amended by Laws of Utah 2024, Chapter 512
35          11-13-320, as enacted by Laws of Utah 2024, Chapter 512
36          19-2-109.4, as enacted by Laws of Utah 2024, Chapter 512
37          63I-1-211, as last amended by Laws of Utah 2024, Chapter 395
38          63I-1-263, as last amended by Laws of Utah 2024, Chapter 285
39          63I-1-263 (Superseded 07/01/24), as last amended by Laws of Utah 2024, Chapters 36,
40     159, 245, 361, 362, 381, 395, 434, 506, 507, and 540
41          79-6-401, as last amended by Laws of Utah 2024, Chapters 33, 88 and 493
42          79-6-407, as enacted by Laws of Utah 2024, Chapter 512
43          79-6-408, as enacted by Laws of Utah 2024, Chapter 512
44     REPEALS:
45          11-13-317, as enacted by Laws of Utah 2022, Chapter 322
46          63C-26-101, as enacted by Laws of Utah 2022, Chapter 322
47          63C-26-201, as enacted by Laws of Utah 2022, Chapter 322
48          63C-26-202, as enacted by Laws of Utah 2022, Chapter 322
49     

50     Be it enacted by the Legislature of the state of Utah:
51          Section 1. Section 11-13-318 is amended to read:
52          11-13-318. Notice of decommissioning or disposal of project entity assets.
53          (1) As used in this section:
54          (a) "Alternative permit" means the same as that term is defined in Section 11-13-320.
55          (b) "Decommissioning" means to remove an electrical generation facility from active
56     service.
57          (c) "Disposal" means the sale, transfer, dismantling, or other disposition of a project
58     entity's assets.
59          (d) "Division" means the Division of Air Quality created in Section 19-1-105.
60          (e) "Fair market value" means the same as that term is defined in Section 79-6-408.
61          (f) (i) "Project entity asset" means a project entity's:
62          (A) land;
63          (B) water;
64          [(B)] (C) buildings; or
65          [(C)] (D) essential equipment, including turbines, generators, transformers, and
66     transmission lines.
67          (ii) "Project entity asset" does not include an asset that is not essential for the
68     generation of electricity in the project entity's coal-powered electrical generation facility.
69          (2) A project entity shall provide a notice of decommissioning or disposal to the
70     Legislative Management Committee at least 180 days before:
71          (a) the disposal of any project entity assets; or
72          (b) the decommissioning of the project entity's coal-powered electrical generation
73     facility.
74          (3) The notice of decommissioning or disposal described in Subsection (2) shall
75     include:
76          (a) the date of the intended decommissioning or disposal;
77          (b) a description of the project entity's coal-powered electrical generation facility
78     intended for decommissioning or any project entity asset intended for disposal; and
79          (c) the reasons for the decommissioning or disposal.
80          (4) A project entity may not intentionally prevent the functionality of the project
81     entity's existing coal-powered electrical generation facility.
82          (5) Notwithstanding the requirements in Subsections (2) through (4), a project entity
83     may take any action necessary to transition to a new electrical generation facility powered by
84     natural gas, hydrogen, or a combination of natural gas and hydrogen, including any action that
85     has been approved by a permitting authority.
86          [(6) If a project entity intends to submit an application for an alternative permit to the
87     division as described in Section 11-13-320, the project entity shall notify the Legislative
88     Management Committee that the project entity intends to submit an application before July 1,
89     2024.]
90          [(7) If a project does not notify the Legislative Management Committee of an intent to
91     submit an application, the Legislative Management Committee shall make recommendations to
92     the governor regarding appropriate action, which may include calling a special session to enact
93     legislation reconstituting the board of the project entity.]
94          [(8)] (6) A project entity shall provide the state the option to purchase for fair market
95     value a project entity asset intended for decommissioning, with the option remaining open for
96     at least two years, beginning on July 2, 2025.
97          Section 2. Section 11-13-320 is amended to read:
98          11-13-320. Air quality permitting transition process.
99          (1) As used in this section:
100          (a) "Alternative permit" means an amendment to a transition permit that, for purposes
101     of transitioning an electrical generation facility to a new facility, allows one or more existing
102     generating units to continue operating while also providing for closure of one but not all
103     existing generating units.
104          (b) "Authority" means the Decommissioned Asset Disposition Authority established in
105     Section 79-6-407.
106          (c) "Division" means the Division of Air Quality created in Section 19-1-105.
107          (d) "Pre-existing permit" means the air quality permit held by the operator of an
108     existing electrical generation facility prior to any amendments associated with transitioning to a
109     new facility.
110          (e) "Transition permit" means an amendment to the pre-existing permit, issued to the
111     operator of an existing electrical generation facility for the purpose of transitioning to a new
112     electrical generation facility, which authorizes construction of the new facility but does not
113     require closure of all existing generating units until after the new facility commences operation.
114          (2) A project entity that holds a pre-existing permit for an existing electrical generation
115     facility with multiple generating units, and has been issued a transition permit for a new
116     electrical generation facility, may submit an application to the division in accordance with
117     Section 19-2-109.4 for issuance of an alternative permit.
118          [(3) If a project entity intends to submit an application under Subsection (2), the project
119     entity shall provide a binding notice of intent to the Legislative Management Committee on or
120     before July 1, 2024.]
121          [(4) If a project entity submits an application under Subsection (2), the project entity
122     shall submit the application on or before January 1, 2025.]
123          Section 3. Section 19-2-109.4 is amended to read:
124          19-2-109.4. Project entity transition permit.
125          (1) As used in this section:
126          (a) "Alternative permit" means an amendment to a transition permit that, for purposes
127     of transitioning an electrical generation facility to a new facility, allows one or more existing
128     generating units to continue operating while also providing for closure of one but not all
129     existing generating units.
130          (b) "Authority" means the Decommissioned Asset Disposition Authority established in
131     Section 79-6-407.
132          (c) "Division" means the Division of Air Quality created in Section 19-1-105.
133          (d) "Pre-existing permit" means the air quality permit held by the operator of an
134     existing electrical generation facility prior to any amendments associated with transitioning to a
135     new facility.
136          (e) "Project entity" means the same as that term is defined in Section 11-13-103.
137          (f) "Transition permit" means an amendment to the pre-existing permit, issued to the
138     operator of an existing electrical generation facility for the purpose of transitioning to a new
139     electrical generation facility, which authorizes construction of the new facility but does not
140     require closure of all existing generating units until after the new facility commences operation.
141          (2) The division shall accept an application for an alternative permit from a project
142     entity that has previously obtained a transition permit to authorize the same new electrical
143     generating capacity contemplated by the transition permit.
144          (3) If the application for an alternative permit meets the requirements established by
145     the board:
146          (a) the division shall issue an approval order for the alternative permit to the project
147     entity;
148          (b) the conditions of the transition permit shall cease to apply, including requirements
149     to reduce the capacity of existing generating units at the electrical generation facility; and
150          (c) the project entity shall submit all documentation required to modify any federal
151     operating permit required to be maintained by the project entity, consistent with deadlines
152     established by the division.
153          (4) If an alternative permit is not approved under Subsection (3), the conditions of the
154     transition permit shall remain effective.
155          (5) (a) Upon receipt of an alternative air permit application prepared and submitted by
156     the authority in accordance with Subsection 79-6-407(4)(c), the division shall conduct a full
157     evaluation as if the application had been prepared and submitted by a project entity to
158     determine whether the alternative air permit would be issued if applied for by the project entity.
159          (b) The division shall provide the results of any evaluation conducted under Subsection
160     (5)(a) to the authority [no later than January 30, 2025.] within 30 days after the date that the
161     division receives the application described in Subsection (5)(a), unless the division provides
162     written notice to the authority that additional time is needed to complete the evaluation.
163          (c) If the division concludes after evaluation that an alternative permit would likely be
164     issued to a project entity, the authority shall, within 30 days after the authority receives the
165     results of the evaluation, submit recommendations to the Legislative Management Committee
166     regarding options for the state to continue to authorize construction of the project entity's new
167     electrical generation facility that do not require the closure of all of the project entity's existing
168     electrical generating facilities.
169          (6) The division shall evaluate an application for an alternative permit independently
170     from any pre-existing permit or transition permit based on updated assumptions, modeling, and
171     requirements established in rule by the division and may rely upon the reduction of capacity of
172     the existing electrical generation facility only as necessary to ensure that emissions of the new
173     generating facility do not exceed thresholds established by federal law which would necessitate
174     new source review as a major modification.
175          Section 4. Section 63I-1-211 is amended to read:
176          63I-1-211. Repeal dates: Title 11.
177          [(1) Section 11-13-317, related to the Project Entity Oversight Committee, is repealed
178     July 1, 2027.]
179          [(2)] Title 11, Chapter 59, Point of the Mountain State Land Authority Act, is repealed
180     January 1, 2029.
181          Section 5. Section 63I-1-263 is amended to read:
182          63I-1-263. Repeal dates: Titles 63A to 63N.
183          (1) Subsection 63A-5b-405(5), relating to prioritizing and allocating capital
184     improvement funding, is repealed July 1, 2024.
185          (2) Title 63C, Chapter 4a, Constitutional and Federalism Defense Act, is repealed July
186     1, 2028.
187          (3) Title 63C, Chapter 6, Utah Seismic Safety Commission, is repealed January 1,
188     2025.
189          (4) Title 63C, Chapter 18, Behavioral Health Crisis Response Committee, is repealed
190     December 31, 2026.
191          (5) Title 63C, Chapter 23, Education and Mental Health Coordinating Committee, is
192     repealed December 31, 2024.
193          (6) Title 63C, Chapter 25, State Finance Review Commission, is repealed July 1, 2027.
194          [(7) Title 63C, Chapter 26, Project Entity Oversight Committee, is repealed July 1,
195     2027.]
196          [(8)] (7) Title 63C, Chapter 27, Cybersecurity Commission, is repealed July 1, 2032.
197          [(9)] (8) Title 63C, Chapter 28, Ethnic Studies Commission, is repealed July 1, 2026.
198          [(10)] (9) Title 63C, Chapter 31, State Employee Benefits Advisory Commission, is
199     repealed on July 1, 2028.
200          [(11)] (10) Section 63G-6a-805, which creates the Purchasing from Persons with
201     Disabilities Advisory Board, is repealed July 1, 2026.
202          [(12)] (11) Title 63G, Chapter 21, Agreements to Provide State Services, is repealed
203     July 1, 2028.
204          [(13)] (12) Title 63H, Chapter 4, Heber Valley Historic Railroad Authority, is repealed
205     July 1, 2029.
206          [(14)] (13) Title 63H, Chapter 8, Utah Housing Corporation Act, is repealed July 1,
207     2026.
208          [(15)] (14) Subsection 63J-1-602.2(16), related to the Communication Habits to reduce
209     Adolescent Threats (CHAT) Pilot Program, is repealed July 1, 2029.
210          [(16)] (15) Subsection 63J-1-602.2(26), related to the Utah Seismic Safety
211     Commission, is repealed January 1, 2025.
212          [(17)] (16) Section 63L-11-204, creating a canyon resource management plan to Provo
213     Canyon, is repealed July 1, 2025.
214          [(18)] (17) Title 63L, Chapter 11, Part 4, Resource Development Coordinating
215     Committee, is repealed July 1, 2027.
216          [(19)] (18) Title 63M, Chapter 7, Part 7, Domestic Violence Offender Treatment
217     Board, is repealed July 1, 2027.
218          [(20)] (19) Section 63M-7-902, Creation -- Membership -- Terms -- Vacancies --
219     Expenses, is repealed July 1, 2029.
220          [(21)] (20) Title 63M, Chapter 11, Utah Commission on Aging, is repealed July 1,
221     2026.
222          [(22)] (21) Title 63N, Chapter 1b, Part 4, Women in the Economy Subcommittee, is
223     repealed January 1, 2030.
224          [(23)] (22) Title 63N, Chapter 2, Part 2, Enterprise Zone Act, is repealed July 1, 2028.
225          [(24)] (23) Section 63N-2-512, related to the Hotel Impact Mitigation Fund, is repealed
226     July 1, 2028.
227          [(25)] (24) Title 63N, Chapter 3, Part 9, Strategic Innovation Grant Pilot Program, is
228     repealed July 1, 2027.
229          [(26)] (25) Title 63N, Chapter 3, Part 11, Manufacturing Modernization Grant
230     Program, is repealed July 1, 2025.
231          [(27)] (26) In relation to the Rural Employment Expansion Program, on July 1, 2028:
232          (a) Title 63N, Chapter 4, Part 4, Rural Employment Expansion Program, is repealed;
233     and
234          (b) Subsection 63N-4-805(5)(b), referring to the Rural Employment Expansion
235     Program, is repealed.
236          [(28)] (27) Section 63N-4-804, which creates the Rural Opportunity Advisory
237     Committee, is repealed July 1, 2027.
238          [(29)] (28) In relation to the Board of Tourism Development, on July 1, 2025:
239          (a) Subsection 63N-2-511(1)(b), which defines "tourism board," is repealed;
240          (b) Subsections 63N-2-511(3)(a) and (5), the language that states "tourism board" is
241     repealed and replaced with "Utah Office of Tourism";
242          (c) Subsection 63N-7-101(1), which defines "board," is repealed;
243          (d) Subsection 63N-7-102(3)(c), which requires the Utah Office of Tourism to receive
244     approval from the Board of Tourism Development, is repealed; and
245          (e) Title 63N, Chapter 7, Part 2, Board of Tourism Development, is repealed.
246          Section 6. Section 63I-1-263 (Superseded 07/01/24) is amended to read:
247          63I-1-263 (Superseded 07/01/24). Repeal dates: Titles 63A through 63N.
248          (1) Subsection 63A-5b-405(5), relating to prioritizing and allocating capital
249     improvement funding, is repealed July 1, 2024.
250          (2) Title 63C, Chapter 4a, Constitutional and Federalism Defense Act, is repealed July
251     1, 2028.
252          (3) Title 63C, Chapter 6, Utah Seismic Safety Commission, is repealed January 1,
253     2025.
254          (4) Title 63C, Chapter 18, Behavioral Health Crisis Response Committee, is repealed
255     December 31, 2026.
256          (5) Title 63C, Chapter 23, Education and Mental Health Coordinating Committee, is
257     repealed December 31, 2024.
258          (6) Title 63C, Chapter 25, State Finance Review Commission, is repealed July 1, 2027.
259          [(7) Title 63C, Chapter 26, Project Entity Oversight Committee, is repealed July 1,
260     2027.]
261          [(8)] (7) Title 63C, Chapter 27, Cybersecurity Commission, is repealed July 1, 2032.
262          [(9)] (8) Title 63C, Chapter 28, Ethnic Studies Commission, is repealed July 1, 2026.
263          [(10)] (9) Title 63C, Chapter 31, State Employee Benefits Advisory Commission, is
264     repealed on July 1, 2028.
265          [(11)] (10) Section 63G-6a-805, which creates the Purchasing from Persons with
266     Disabilities Advisory Board, is repealed July 1, 2026.
267          [(12)] (11) Title 63G, Chapter 21, Agreements to Provide State Services, is repealed
268     July 1, 2028.
269          [(13)] (12) Title 63H, Chapter 4, Heber Valley Historic Railroad Authority, is repealed
270     July 1, 2029.
271          [(14)] (13) Title 63H, Chapter 8, Utah Housing Corporation Act, is repealed July 1,
272     2026.
273          [(15)] (14) Subsection 63J-1-602.2(25), related to the Utah Seismic Safety
274     Commission, is repealed January 1, 2025.
275          [(16)] (15) Section 63L-11-204, creating a canyon resource management plan to Provo
276     Canyon, is repealed July 1, 2025.
277          [(17)] (16) Title 63L, Chapter 11, Part 4, Resource Development Coordinating
278     Committee, is repealed July 1, 2027.
279          [(18)] (17) Title 63M, Chapter 7, Part 7, Domestic Violence Offender Treatment
280     Board, is repealed July 1, 2027.
281          [(19)] (18) Section 63M-7-902, Creation -- Membership -- Terms -- Vacancies --
282     Expenses, is repealed July 1, 2029.
283          [(20)] (19) Title 63M, Chapter 11, Utah Commission on Aging, is repealed July 1,
284     2026.
285          [(21)] (20) Title 63N, Chapter 1b, Part 4, Women in the Economy Subcommittee, is
286     repealed January 1, 2030.
287          [(22)] (21) Title 63N, Chapter 2, Part 2, Enterprise Zone Act, is repealed July 1, 2028.
288          [(23)] (22) Section 63N-2-512, related to the Hotel Impact Mitigation Fund, is repealed
289     July 1, 2028.
290          [(24)] (23) Title 63N, Chapter 3, Part 9, Strategic Innovation Grant Pilot Program, is
291     repealed July 1, 2027.
292          [(25)] (24) Title 63N, Chapter 3, Part 11, Manufacturing Modernization Grant
293     Program, is repealed July 1, 2025.
294          [(26)] (25) In relation to the Rural Employment Expansion Program, on July 1, 2028:
295          (a) Title 63N, Chapter 4, Part 4, Rural Employment Expansion Program, is repealed;
296     and
297          (b) Subsection 63N-4-805(5)(b), referring to the Rural Employment Expansion
298     Program, is repealed.
299          [(27)] (26) Section 63N-4-804, which creates the Rural Opportunity Advisory
300     Committee, is repealed July 1, 2027.
301          [(28)] (27) In relation to the Board of Tourism Development, on July 1, 2025:
302          (a) Subsection 63N-2-511(1)(b), which defines "tourism board," is repealed;
303          (b) Subsections 63N-2-511(3)(a) and (5), the language that states "tourism board" is
304     repealed and replaced with "Utah Office of Tourism";
305          (c) Subsection 63N-7-101(1), which defines "board," is repealed;
306          (d) Subsection 63N-7-102(3)(c), which requires the Utah Office of Tourism to receive
307     approval from the Board of Tourism Development, is repealed; and
308          (e) Title 63N, Chapter 7, Part 2, Board of Tourism Development, is repealed.
309          Section 7. Section 79-6-401 is amended to read:
310          79-6-401. Office of Energy Development -- Creation -- Director -- Purpose --
311     Rulemaking regarding confidential information -- Fees -- Transition for employees.
312          (1) There is created an Office of Energy Development within the Department of
313     Natural Resources to be administered by a director.
314          (2) (a) The executive director shall appoint the director and the director shall serve at
315     the pleasure of the executive director.
316          (b) The director shall have demonstrated the necessary administrative and professional
317     ability through education and experience to efficiently and effectively manage the office's
318     affairs.
319          (3) The purposes of the office are to:
320          (a) serve as the primary resource for advancing energy and mineral development in the
321     state;
322          (b) implement:
323          (i) the state energy policy under Section 79-6-301; and
324          (ii) the governor's energy and mineral development goals and objectives;
325          (c) advance energy education, outreach, and research, including the creation of
326     elementary, higher education, and technical college energy education programs;
327          (d) promote energy and mineral development workforce initiatives;
328          (e) support collaborative research initiatives targeted at Utah-specific energy and
329     mineral development;
330          (f) in coordination with the Department of Environmental Quality and other relevant
331     state agencies:
332          (i) develop effective policy strategies to advocate for and protect the state's interests
333     relating to federal energy and environmental entities, programs, and regulations;
334          (ii) participate in the federal environmental rulemaking process by:
335          (A) advocating for positive reform of federal energy and environmental regulations and
336     permitting;
337          (B) coordinating with other states to develop joint advocacy strategies; and
338          (C) conducting other government relations efforts; and
339          (iii) direct the funding of legal efforts to combat federal overreach and unreasonable
340     delays regarding energy and environmental permitting; and
341          (g) fund the development of detailed and accurate forecasts of the state's long-term
342     energy supply and demand, including a baseline projection of expected supply and demand and
343     analysis of potential alternative scenarios.
344          (4) By following the procedures and requirements of Title 63J, Chapter 5, Federal
345     Funds Procedures Act, the office may:
346          (a) seek federal grants or loans;
347          (b) seek to participate in federal programs; and
348          (c) in accordance with applicable federal program guidelines, administer federally
349     funded state energy programs.
350          (5) The office shall perform the duties required by Sections 11-42a-106, 59-5-102,
351     59-7-614.7, 59-10-1029, [63C-26-202,] Part 5, Alternative Energy Development Tax Credit
352     Act, and Part 6, High Cost Infrastructure Development Tax Credit Act.
353          (6) (a) For purposes of administering this section, the office may make rules, by
354     following Title 63G, Chapter 3, Utah Administrative Rulemaking Act, to maintain as
355     confidential, and not as a public record, information that the office receives from any source.
356          (b) The office shall maintain information the office receives from any source at the
357     level of confidentiality assigned by the source.
358          (7) The office may charge application, filing, and processing fees in amounts
359     determined by the office in accordance with Section 63J-1-504 as dedicated credits for
360     performing office duties described in this part.
361          (8) (a) An employee of the office on April 30, 2024, is an at-will employee.
362          (b) For an employee described in Subsection (8)(a) who was employed by the office on
363     April 30, 2024, the employee shall have the same salary and benefit options an employee had
364     when the office was part of the office of the governor.
365          (c) An employee of the office hired on or after May 1, 2024, shall receive
366     compensation as provided in Title 63A, Chapter 17, Utah State Personnel Management Act.
367          (9) (a) The office shall prepare a strategic energy plan to achieve the state's energy
368     policy, including:
369          (i) technological and infrastructure innovation needed to meet future energy demand
370     including:
371          (A) energy production technologies;
372          (B) battery and storage technologies;
373          (C) smart grid technologies;
374          (D) energy efficiency technologies; and
375          (E) any other developing energy technology, energy infrastructure planning, or
376     investments that will assist the state in meeting energy demand;
377          (ii) the state's efficient use and development of:
378          (A) energy resources, including natural gas, coal, clean coal, hydrogen, oil, oil shale,
379     and oil sands;
380          (B) renewable energy resources, including geothermal, solar, hydrogen, wind, biomass,
381     biofuel, and hydroelectric;
382          (C) nuclear power; and
383          (D) earth minerals;
384          (iii) areas of energy-related academic research;
385          (iv) specific areas of workforce development necessary for an evolving energy
386     industry;
387          (v) the development of partnerships with national laboratories; and
388          (vi) a proposed state budget for economic development and investment.
389          (b) In preparing the strategic energy plan, the office shall:
390          (i) consult with stakeholders, including representatives from:
391          (A) energy companies in the state;
392          (B) private and public institutions of higher education within the state conducting
393     energy-related research; and
394          (C) other state agencies; and
395          (ii) use modeling and industry standard data to:
396          (A) define the energy services required by a growing economy;
397          (B) calculate energy needs;
398          (C) develop state strategy for energy transportation, including transmission lines,
399     pipelines, and other infrastructure needs;
400          (D) optimize investments to meet energy needs at the least cost and least risk while
401     meeting the policy outlined in this section;
402          (E) address state needs and investments through a prospective 30-year period, divided
403     into five-year working plans; and
404          (F) update the plan at least every two years.
405          (c) The office shall report annually to the Public Utilities, Energy, and Technology
406     Interim Committee on or before the October interim meeting describing:
407          (i) progress towards creation and implementation of the strategic energy plan;
408          (ii) the plan's compliance with the state energy policy; and
409          (iii) a proposed budget for the office to continue development of the strategic energy
410     plan.
411          (10) The director shall:
412          (a) annually review and propose updates to the state's energy policy, as contained in
413     Section 79-6-301;
414          (b) promote as the governor considers necessary:
415          (i) the development of cost-effective energy resources both renewable and
416     nonrenewable; and
417          (ii) educational programs, including programs supporting conservation and energy
418     efficiency measures;
419          (c) coordinate across state agencies to assure consistency with state energy policy,
420     including:
421          (i) working with the State Energy Program to promote access to federal assistance for
422     energy-related projects for state agencies and members of the public;
423          (ii) working with the Division of Emergency Management to assist the governor in
424     carrying out the governor's energy emergency powers under Title 53, Chapter 2a, Part 10,
425     Energy Emergency Powers of the Governor Act;
426          (iii) participating in the annual review of the energy emergency plan and the
427     maintenance of the energy emergency plan and a current list of contact persons required by
428     Section 53-2a-902; and
429          (iv) identifying and proposing measures necessary to facilitate low-income consumers'
430     access to energy services;
431          (d) coordinate with the Division of Emergency Management ongoing activities
432     designed to test an energy emergency plan to ensure coordination and information sharing
433     among state agencies and political subdivisions in the state, public utilities and other energy
434     suppliers, and other relevant public sector persons as required by Sections 53-2a-902,
435     53-2a-1004, 53-2a-1008, and 53-2a-1010;
436          (e) coordinate with requisite state agencies to study:
437          (i) the creation of a centralized state repository for energy-related information;
438          (ii) methods for streamlining state review and approval processes for energy-related
439     projects; and
440          (iii) the development of multistate energy transmission and transportation
441     infrastructure;
442          (f) coordinate energy-related regulatory processes within the state;
443          (g) compile, and make available to the public, information about federal, state, and
444     local approval requirements for energy-related projects;
445          (h) act as the state's advocate before federal and local authorities for energy-related
446     infrastructure projects or coordinate with the appropriate state agency; and
447          (i) help promote the Division of Facilities Construction and Management's measures to
448     improve energy efficiency in state buildings.
449          (11) The director has standing to testify on behalf of the governor at the Public Service
450     Commission created in Section 54-1-1.
451          (12) The office shall include best practices in developing actionable goals and
452     recommendations as part of preparing and updating every two years the strategic energy plan
453     required under Subsection (9).
454          (13) The office shall maintain and regularly update a public website that provides an
455     accessible dashboard of relevant metrics and reports and makes available the data used to
456     create the strategic energy plan.
457          Section 8. Section 79-6-407 is amended to read:
458          79-6-407. Decommissioned Asset Disposition Authority.
459          (1) As used in this section:
460          (a) "Asset intended for decommissioning" means an electrical generation facility
461     owned by a project entity that is intended to be removed from active service.
462          (b) "Authority" means the Decommissioned Asset Disposition Authority created in this
463     section.
464          (c) "Fair market value" means the value of an electrical generation facility considering
465     both the assets and liabilities of the facility, including the value of water rights necessary to
466     operate the existing electrical generation facility at full capacity.
467          (d) "Highest and best purchase offer" means the purchase offer for the asset intended
468     for decommissioning that the authority determines to be in the overall best interest of the state,
469     considering:
470          (i) the purchase price offer amount;
471          (ii) the potential purchaser's:
472          (A) commitment to utilize the best available control technology;
473          (B) intent to use state resources to the maximum extent feasible;
474          (C) commitment to provide jobs and other economic benefits to the state;
475          (D) intent to promote the interests of state residents and ratepayers; and
476          (E) financial capability; and
477          (iii) any other factors the authority considers relevant.
478          (e) "Project entity" means the same as that term is defined in Section 11-13-103.
479          (2) There is established within the office the Decommissioned Asset Disposition
480     Authority.
481          (3) (a) The authority shall be composed of:
482          (i) the executive director of the office;
483          (ii) two members appointed by the governor;
484          (iii) two members appointed by the president of the Senate; and
485          (iv) two members appointed by the speaker of the House of Representatives.
486          (b) The office shall provide staff and support to the authority.
487          (4) The authority shall:
488          (a) provide recommendations to the governor and Legislature regarding the state
489     exercising an option to purchase an asset intended for decommissioning;
490          (b) if the state exercises an option to purchase the asset intended for decommissioning
491     under Section 11-13-318:
492          (i) enter into contracts and agreements related to the decommissioned asset;
493          (ii) govern the disposition of assets intended for decommissioning as outlined in
494     Subsection [(5); ] (6); and
495          (iii) take any other action necessary for governance of a decommissioned asset
496     purchased by the state; [and]
497          (c) contract with independent professionals that have expertise in emissions modeling,
498     air quality impact assessments, regulatory compliance, and any other discipline necessary for
499     the preparation and submission of a complete alternative air permit application, including:
500          (i) conducting emissions modeling, air quality impact assessments, and gathering any
501     other information necessary for inclusion in a complete alternative air permit application;
502          (ii) preparing the full application with all necessary information included, as would be
503     required for an application submitted by the owner of the electrical generation facility; and
504          (iii) submitting the full permit application to the Division of Air Quality[.]; and
505          (d) submit a complete alternative air permit application to the division on or before
506     December 31, 2024, unless the authority determines that it is not feasible to submit a complete
507     application on or before that date.
508          (5) If the authority determines under Subsection (4)(d) that it is not feasible to submit a
509     complete application on or before December 31, 2024, the authority shall:
510          (a) submit a written report to the Legislative Management Committee on or before
511     December 15, 2024, explaining the reasons for the delay and providing an estimated time line
512     for submitting the complete application; and
513          (b) submit the complete application to the division as soon as practicable after
514     December 31, 2024.
515          [(5)] (6) If the state exercises an option to purchase or otherwise take control of the
516     asset intended for decommissioning under Section 11-13-318, the authority may, no sooner
517     than July 2, 2025:
518          (a) hold a public hearing to receive comment and evidence regarding:
519          (i) the fair market value of the asset, including the valuation study conducted by the
520     authority under Section 79-6-408; and
521          (ii) the proposed disposition of the decommissioned asset;
522          (b) establish procedures and timelines for potential purchasers to submit binding
523     purchase offers;
524          (c) evaluate all purchase offers to determine the highest and best purchase offer;
525          (d) approve the sale of the decommissioned asset to the purchaser that has submitted
526     the highest and best purchase offer; and
527          (e) take any other action necessary to govern the disposition of the decommissioned
528     asset in accordance with this section.
529          [(6)] (7) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking
530     Act, the authority shall make rules that establish:
531          (a) procedures and associated timelines for potential purchasers to submit binding
532     purchase offers for a decommissioned asset;
533          (b) objective criteria and a process to evaluate all purchase offers submitted for a
534     decommissioned asset and determine which purchase offer is the highest and best offer; and
535          (c) a process for the authority to approve the sale of a decommissioned asset to the
536     purchaser that has submitted the highest and best purchase offer.
537          Section 9. Section 79-6-408 is amended to read:
538          79-6-408. Study of project entity asset intended for decommissioning.
539          (1) As used in this section:
540          (a) "Authority" means the Decommissioned Asset Disposition Authority, created in
541     Section 79-6-407.
542          (b) "Fair market value" means the same as that term is defined in Section 79-6-407.
543          (2) The authority, in consultation with the office, shall conduct a study to:
544          (a) evaluate issues in regards to a state implementation plan as a result of issuing an
545     alternative permit under Section 19-2-109.4;
546          (b) establish the fair market value of an electrical generation facility that a project
547     entity intends to decommission; and
548          (c) evaluate the potential sale of the facility to new owners.
549          (3) In conducting the study described in this section, the authority shall contract or
550     consult with independent professionals with expertise in:
551          (a) areas relevant to environmental regulatory compliance and clean air act state
552     implementation plan development, including:
553          (i) related electric generation capacity;
554          (ii) resource adequacy; and
555          (iii) economic development considerations; and
556          (b) areas relevant to the valuation and disposition of electrical generation facilities,
557     including:
558          (i) engineering;
559          (ii) environmental assessments;
560          (iii) energy economics;
561          (iv) water rights;
562          (v) mineral rights;
563          (vi) regulatory analysis;
564          (vii) financial analysis;
565          (viii) real estate valuation; and
566          (ix) legal analysis.
567          (4) The study described in Subsection (2) shall:
568          (a) for the evaluation of issues in regards to a state implementation plan as a result of
569     issuing an alternative permit under Section 19-2-109.4, based on input from the Division of Air
570     Quality and independent modeling, legal analysis, and economic analysis, evaluate:
571          (i) any technical deficiencies that could occur in a state implementation plan as a result
572     of issuing an alternative permit; and
573          (ii) options for revising the state implementation plan to[ maximize flexibility for the
574     state to utilize an alternative permit and preserve electric generating capacity sufficient to
575     support economic growth in the state while ensuring the state implementation plan meets
576     federal air quality standards;] ensure that the continued operation of the power plants under an
577     alternative permit will not jeopardize the state's ability to meet federal air quality standards;
578          (b) for the valuation of the project entity asset that a project entity intends to
579     decommission, include:
580          (i) an assessment of all assets associated with the electrical generation facility,
581     including real property, equipment, water rights, mineral rights, and any other associated
582     assets;
583          (ii) an assessment of all financial assets and potential financial liabilities or risks
584     related to the electrical generation facility intended for decommissioning;
585          (iii) an analysis of any encumbrances on the electrical generation facility;
586          (iv) the impact on valuation of an electrical generation facility related to the issuance of
587     an alternative air quality permit under Section 19-2-109.4;
588          (v) a review of any potential effect a sale of the electrical generation facility would
589     have on liabilities related to the electrical generation facility;
590          (vi) incorporation of any relevant local, regional, or national economic and market
591     factors that may impact the fair market value; and
592          (vii) any other factors the authority considers relevant in establishing a fair market
593     value for the electrical generation facility; and
594          (c) to evaluate the issues surrounding a potential sale of the facility, include:
595          (i) potential purchase and sale agreement terms;
596          (ii) the necessary financial capability of a potential purchaser, including experience
597     raising capital, access to capital, financial stability, and ability to provide security for
598     obligations related to decommissioning, remediation, and other liabilities;
599          (iii) operational experience and capability of a potential purchaser, including
600     experience operating electrical generation facilities, contracting history, and historical
601     operating metrics;
602          (iv) permitting, regulatory compliance, and construction issues for continued operation
603     of the facility;
604          (v) the likelihood that continued operation of the facility would impact other electrical
605     generation facilities in the state;
606          (vi) the potential for continued operation of the facility to infringe on existing utility
607     service territories;
608          (vii) the viability of alternative business models for continued operation of the facility;
609          (viii) potential community and regional impacts resulting from continued operation or
610     the retirement of the facility; and
611          (ix) the potential for continued operation of the facility to interfere with the rights and
612     interests of the project entity, the project entity's members, power purchasers, bondholders,
613     creditors, or other entities.
614          (5) In conducting the study described in Subsection (2), the project entity shall timely
615     provide to the authority information related to the assets and potential liabilities of the
616     electrical generation facility intended for decommissioning.
617          (6) The authority shall report the progress and results of the study to the Public
618     Utilities, Energy, and Technology Interim Committee on or before November 30, 2024.
619          Section 10. Repealer.
620          This bill repeals:
621          Section 11-13-317, Submitting to the Project Entity Oversight Committee.
622          Section 63C-26-101, Definitions.
623          Section 63C-26-201, Project Entity Oversight Committee created.
624          Section 63C-26-202, Committee duties -- Office of Energy Development duties.
625          Section 11. Effective date.
626          (1) Except as provided in Subsection (2), if approved by two-thirds of all the members
627     elected to each house, this bill takes effect upon approval by the governor, or the day following
628     the constitutional time limit of Utah Constitution, Article VII, Section 8, without the governor's
629     signature, or in the case of a veto, the date of veto override.
630          (2) If this bill is not approved by two-thirds of all members elected to each house, this
631     bill takes effect on August 19, 2024.