Representative Carl R. Albrecht proposes the following substitute bill:


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 (Effective upon governor's approval), as last amended by Laws of Utah
35     2024, Chapter 512
36          11-13-320 (Effective upon governor's approval), as enacted by Laws of Utah 2024,
37     Chapter 512
38          19-2-109.4 (Effective upon governor's approval), as enacted by Laws of Utah 2024,
39     Chapter 512
40          63I-1-211 (Effective upon governor's approval), as last amended by Laws of Utah
41     2024, Chapter 395
42          63I-1-263 (Effective 07/01/24), as last amended by Laws of Utah 2024, Chapter 285
43          79-6-401 (Effective upon governor's approval), as last amended by Laws of Utah
44     2024, Chapters 33, 88 and 493
45          79-6-407 (Effective upon governor's approval), as enacted by Laws of Utah 2024,
46     Chapter 512
47          79-6-408 (Effective upon governor's approval), as enacted by Laws of Utah 2024,
48     Chapter 512
49     REPEALS:
50          11-13-317 (Effective upon governor's approval), as enacted by Laws of Utah 2022,
51     Chapter 322
52          63C-26-101 (Effective upon governor's approval), as enacted by Laws of Utah 2022,
53     Chapter 322
54          63C-26-201 (Effective upon governor's approval), as enacted by Laws of Utah 2022,
55     Chapter 322
56          63C-26-202 (Effective upon governor's approval), as enacted by Laws of Utah 2022,
57     Chapter 322
58     

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