Solar Power Plant Amendments

20
54-17-1201
54-17-1202
54-17-1203
54-17-1204
54-17-1205
54-17-1206
0
Solar Power Plant Amendments
2026 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Colin W. Jack
Senate Sponsor: David P. Hinkins
LONG TITLE
General Description:
This bill enacts provisions related to utility scale solar power plants.
Highlighted Provisions:
This bill:
defines terms;
establishes eligibility criteria for state incentives for solar power plants based on land
characteristics;
provides for reduction of incentives for solar power plants located on certain protected
farmland;
creates exemptions for solar power plants with existing agreements or incentives;
requires wildlife impact consultation with state or federal agencies for solar power plants;
establishes requirements for decommissioning plans and financial assurance for solar
power plants;
creates a permitting process for solar power plants;
requires submission and approval of site and development plans before permit approval;
and
provides for severability.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
ENACTS:
54-17-1201
, Utah Code Annotated 1953
54-17-1202
, Utah Code Annotated 1953
54-17-1203
, Utah Code Annotated 1953
54-17-1204
, Utah Code Annotated 1953
54-17-1205
, Utah Code Annotated 1953
54-17-1206
, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1. Section
54-17-1201
is enacted to read:
54-17-1201
. Definitions.
As used in this part:
(1)
"Agriculture protection area" means the same as that term is defined in Section
17-81-101.
(2)
"Solar power plant" means a utility-scale commercial facility that:
(a)
has a nameplate generating capacity in excess of one megawatt; and
(b)
converts sunlight into electricity for the primary purpose of wholesale or retail sales
of generated electricity.
(3)
(a)
"State incentive" means a tax credit, grant, subsidy, loan, or other form of
financial support provided by the state or a state agency to promote or support the
development or operation of a solar power plant.
(b)
"State incentive" includes:
(i)
a clean energy systems tax credit under Sections
59-7-614
,
59-10-1014
, and
59-10-1106
;
(ii)
a tax credit for high cost infrastructure projects under Sections
79-6-602
and
79-6-603
; and
(iii)
an alternative energy development tax credit under Section
79-6-5
03.
Section 2. Section
54-17-1202
is enacted to read:
54-17-1202
. Eligibility for state incentives.
(1)
A solar power plant for which a conditional use permit is issued after May 6, 2026, is
not eligible to receive state incentives if the soil where the project is located is:
(a)
prime farmland, farmland of statewide importance, farmland of local importance, or
farmland of unique importance, as designated by the Natural Resources Conservation
Service;
(b)
irrigated cropland; or
(c)
non-irrigated cropland of a capability class one through four, as designated by the
Natural Resources Conservation Service.
(2)
A proposed solar power plant may receive half of an eligible state incentive if the soil
where the project is located is non-irrigated cropland of a capability class five or six, as
designated by the Natural Resources Conservation Service.
(3)
A proposed solar power plant located on grazing land is not eligible to receive state
incentives if the land produces greater than 250 pounds of vegetative production per acre
in a normal year, according to the Web Soil Survey produced by the Natural Resources
Conservation Service.
(4)
A proposed solar power plant located on grazing land may receive half of an eligible
state incentive if the land produces between 125 and 250 pounds of vegetative
production per acre in a normal year, according to the Web Soil Survey produced by the
Natural Resources Conservation Service.
(5)
In accordance with Subsection
17D-3-103(2)
, a conservation district may make a
recommendation to the Office of Energy Development to exempt a solar power plant
from the eligibility limitations described in Subsections
(1)
through
(4)
.
(6)
If a solar power plant is partially located on land described in Subsection
(1)(a)
, the total
amount of state incentives available to the solar power plant shall be reduced by the
same percentage as the percentage of the solar power plant's total area that overlaps with
the described land.
(7)
This section does not apply to a solar power plant that:
(a)
holds a position in an interconnection queue before January 1, 2026;
(b)
is subject to a signed commercial agreement to provide power that was executed
before January 1, 2026; or
(c)
meets the requirements for, or is receiving, a state incentive before May 6, 2026.
Section 3. Section
54-17-1203
is enacted to read:
54-17-1203
. Consultation requirements.
The owner or operator of a solar power plant shall consult with the Division of Wildlife
Resources or United States Fish and Wildlife Service regarding how the solar power plant
could potentially impact wildlife on affected land.
Section 4. Section
54-17-1204
is enacted to read:
54-17-1204
. Decommissioning plan.
(1)
An owner of a solar power plant for which a conditional use permit is issued after May
6, 2026, shall:
(a)
place financial assurance with the appropriate local jurisdiction, state entity, or land
owner in accordance with Section
11-17-12
in the form of:
(i)
a bond;
(ii)
a parent company guarantee;
(iii)
an irrevocable letter of credit; or
(iv)
an alternate form of financial security;
(b)
ensure the amount of financial security is not less than the estimated cost of
decommissioning and reclaiming the solar power plant, after deducting reasonable
salvage value, as calculated by:
(i)
a third party with expertise in decommissioning, hired by the owner and agreed to
by the appropriate local jurisdiction; and
(ii)
if required by the appropriate local jurisdiction, an engineer registered with the
state;
(c)
create and update a decommissioning and reclamation plan every five years from the
initial commercial operating date of the solar power plant that:
(i)
incorporates changes resulting from inflation or changes in total cost estimates;
(ii)
specifies the condition to which the site shall be returned, unless otherwise
specified and agreed upon by the property owner and appropriate local jurisdiction;
(iii)
requires removal of materials, including steel piles, concrete foundations, and
buried cabling, to a depth of four feet below the surface, unless otherwise
specified in the plan due to local permitting requirements; and
(iv)
addresses vegetation and soil restoration, based on environmental field surveys
and site characterizations conducted before construction, unless otherwise
specified in the plan due to local permitting requirements;
(d)
in the case of cessation of operation, abandonment, or damage of the solar power
plant:
(i)
rectify any deficiency within 90 days after receiving written notice from the
appropriate local jurisdiction by certified mail; or
(ii)
provide a written plan to the appropriate local jurisdiction with an amended cure
date if 90 days is insufficient due to circumstances beyond the owner's control; and
(e)
if seeking to repower the solar power plant at the end of the useful life of the solar
power plant:
(i)
complete necessary local permitting and approval requirements within 18 months
before decommissioning requirements or penalties are incurred; or
(ii)
obtain an extension from the local permitting authority.
(2)
As a condition of the conditional use permit, the decommissioning plan shall be
approved by the appropriate local jurisdiction's governing body before an owner
commences construction on the solar power plant project site.
Section 5. Section
54-17-1205
is enacted to read:
54-17-1205
. Permit application and review.
(1)
A person may not construct a solar power plant without first applying for and receiving
from the governing body of the appropriate local jurisdiction:
(a)
a conditional use permit;
(b)
a grading permit;
(c)
a building permit; and
(d)
any other permit required by the local jurisdiction.
(2)
An application for constructing a solar power plant shall specify how the location and
design standards will be met.
(3)
Before receiving the permits required under Subsection
(1)
, an owner shall submit to the
appropriate local jurisdiction for review and approval:
(a)
site and development plans that identify:
(i)
all existing and proposed structures;
(ii)
setbacks;
(iii)
access routes;
(iv)
utilities;
(v)
drainage pathways, conveyance facilities, and easements;
(vi)
areas of existing vegetation and proposed vegetation removal;
(vii)
irrigation and water conveyances, and service areas; and
(viii)
agriculture protection areas; and
(b)
a comprehensive decommissioning plan that complies with Section
54-17-1204
.
(4)
A local jurisdiction may not unreasonably withhold approval of the plans and
documentation required under Subsection
(3)
.
Section 6. Section
54-17-1206
is enacted to read:
54-17-1206
. Severability.
If any provision of this part or the application of any provision to any person or
circumstance is held invalid, the remainder of this part shall be given effect without the invalid
provision or application.
Section 7.
Effective Date.
This bill takes effect on
May 6, 2026
.
3-12-26 11:54 AM