Utah Energy Council Amendments

87
17B-2a-1401
17B-2a-1402
17B-2a-1403
17B-2a-1404
17B-2a-1405
17B-2a-1406
17B-2a-1407
17B-2a-1408
17B-2a-1409
17B-2a-1410
17B-2a-1411
79-6-1101
79-6-1102
79-6-1103
79-6-1104
0
Utah Energy Council Amendments
2026 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: R. Neil Walter
Senate Sponsor: Ann Millner
LONG TITLE
General Description:
This bill creates the Utah Energy Infrastructure Service District and modifies provisions
relating to the Utah Energy Council.
Highlighted Provisions:
This bill:
defines terms;
expands the Utah Energy Council (council) membership from five to seven members;
establishes a co-chair structure for council leadership;
designates the council as a state energy financing institution;
creates the Utah Energy Infrastructure Service District (district) as a political subdivision
of the state;
provides that council members serve concurrently as the board of trustees of the district;
authorizes the district to acquire, own, and operate energy infrastructure facilities within a
designated
service area;
authorizes the district to issue revenue bonds payable solely from district revenues and
not subject to the state constitutional debt limitation;
requires the State Finance Review Commission to review and approve district revenue
bonds before issuance;
creates the Energy Infrastructure
Enterprise Fund;
authorizes the district to enter into operating contracts with private operators for
district-owned facilities;
exempts district property from taxation and subjects operators to the privilege tax;
provides for dissolution of the district by the board or by an act of the Legislature; and
makes technical and conforming changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
79-6-1101
, as enacted by Laws of Utah 2025, Chapter 120
79-6-1102
, as enacted by Laws of Utah 2025, Chapter 120
79-6-1103
, as enacted by Laws of Utah 2025, Chapter 375
79-6-1104
, as enacted by Laws of Utah 2025, Chapter 375
ENACTS:
17B-2a-1401
, Utah Code Annotated 1953
17B-2a-1402
, Utah Code Annotated 1953
17B-2a-1403
, Utah Code Annotated 1953
17B-2a-1404
, Utah Code Annotated 1953
17B-2a-1405
, Utah Code Annotated 1953
17B-2a-1406
, Utah Code Annotated 1953
17B-2a-1407
, Utah Code Annotated 1953
17B-2a-1408
, Utah Code Annotated 1953
17B-2a-1409
, Utah Code Annotated 1953
17B-2a-1410
, Utah Code Annotated 1953
17B-2a-1411
, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1. Section
17B-2a-1401
is enacted to read:
14. Utah Energy Infrastructure Service District
17B-2a-1401
. Definitions.
(1)
"Board" means the board of trustees of the Utah Energy Infrastructure Service District.
(2)
"Commission" means the State Finance Review Commission created in Section
63C-25-201
.
(3)
"Council" means the Utah Energy Council created under Section
79-6-1101
.
(4)
"District" means the Utah Energy Infrastructure Service District created under Section
17B-2a-1403
.
(5)
"Electrical Energy Development Investment Fund" means the fund created under
Section
79-6-1105
.
(6)
"Electrical energy development zone" means the same as that term is defined in Section
79-6-102
.
(7)
"Energy infrastructure facility" means any real or personal property, including land,
structures, equipment, water rights, transmission lines, generation assets, storage
facilities, and associated improvements, used or useful for the generation, transmission,
storage, or delivery of energy, including electricity and natural gas.
(8)
"Enterprise fund" means the Energy Infrastructure Enterprise Fund created under
Section
17B-2a-1408
.
(9)
"Operating contract" means a contract between the district and an operator for the
management, operation, and maintenance of an energy infrastructure facility owned by
the district.
(10)
"Operator" means an entity that enters into an operating contract with the district.
(11)
"Power purchase agreement" means a contract for the sale of electricity or other energy
produced by or transmitted through an energy infrastructure facility controlled or owned
by the district.
(12)
"Project entity" means the same as that term is defined in Section
11-13-103
.
(13)
"Project entity asset" means the same as that term is defined in Section
11-13-318
.
(14)
"Retired project entity asset" means a project entity asset that has been removed from
active service before May 6, 2026, by a project entity that the project entity has no intent
to return to service.
(15)
"Retired project entity asset area" means the land upon which a retired project entity
asset is located, together with adjacent land necessary for the operation of that asset.
(16)
"Service area" means a geographic area designated by the board under Section
17B-2a-1405
within which the district owns or proposes to facilitate the acquisition or
construction of an energy infrastructure facility.
Section 2. Section
17B-2a-1402
is enacted to read:
17B-2a-1402
. Applicability and conflict.
(1)
The district is governed by and has the powers stated in:
(a)
this part; and
(b)
Chapter 1, Provisions Applicable to All Special Districts, except as otherwise
provided in this part.
(2)
This part applies only to the district.
(3)
The district is not subject to the provisions of any other part of this chapter.
(4)
If there is a conflict between a provision in Chapter 1, Provisions Applicable to All
Special Districts, and a provision in this part, the provisions in this part govern.
(5)
If there is a conflict between a provision of this part and a provision of Title 10, Utah
Municipal Code, or Title 54, Public Utilities,
Title 10, Utah Municipal Code, or Title 54,
Public Utilities,
as applicable, shall govern.
Section 3. Section
17B-2a-1403
is enacted to read:
17B-2a-1403
. Creation and status.
(1)
The council may create the Utah Energy Infrastructure Service District by adopting a
resolution that:
(a)
declares the council's intent to create the district;
(b)
describes the service area, including the geographic boundaries of the area within
which the district will operate; and
(c)
identifies the type of energy infrastructure facility proposed or located within the
service area.
(2)
No later than 30 days after adopting a resolution under Subsection
(1)
, the council shall
file with the lieutenant governor:
(a)
a copy of a notice of an impending boundary action, as defined in Section
67-1a-6.5
,
that meets the requirements of Section
67-1a-6.5
; and
(b)
a copy of an approved final local entity plat, as defined in Section
67-1a-6.5
,
depicting the service area boundary.
(3)
The district is created and exists as a legal entity upon the lieutenant governor's issuance
of a certificate of incorporation under Section
67-1a-6.5
.
(4)
Upon creation, the district:
(a)
is a body politic and corporate with perpetual succession;
(b)
is a political subdivision of the state;
(c)
is separate and distinct from the state and from any other political subdivision of the
state; and
(d)
may sue and be sued.
(5)
The debts, obligations, and liabilities of the district:
(a)
are the debts, obligations, and liabilities of the district alone; and
(b)
are not the debts, obligations, or liabilities of the state or any other political
subdivision of the state.
(6)
Notwithstanding Chapter 1, Part 2, Creation of a Special District, the district:
(a)
may only be created as provided in this section; and
(b)
is not subject to the petition and creation requirements of Sections
17B-1-203

through
17B-1-214
.
(7)
Following the issuance of a certificate of incorporation under Subsection
(3)
, the board
shall annually register the district with the lieutenant governor in accordance with
Section
67-1a-15
.
Section 4. Section
17B-2a-1404
is enacted to read:
17B-2a-1404
. Board of trustees.
(1)
Notwithstanding Chapter 1, Part 3, Board of Trustees, the board of trustees of the
district consists of the members of the council appointed under Section
79-6-1102
.
(2)
(a)
A person serves as a member of the board by virtue of that person's appointment
to the council.
(b)
Service on the board is concurrent with and coterminous with service on the council.
(3)
The co-chairs of the council serve as co-chairs of the board.
(4)
A vacancy on the board is filled in the same manner as a vacancy on the council under
Section
79-6-1102
.
(5)
The board shall adopt bylaws governing the conduct of board meetings, quorum
requirements, and other procedural matters consistent with this part and Chapter 1,
Provisions Applicable to All Special Districts.
(6)
(a)
When acting in the capacity of a board member, a council member's fiduciary
obligation runs to the district.
(b)
Nothing in this section limits a council member's obligations to the council when
acting in the capacity of a council member.
Section 5. Section
17B-2a-1405
is enacted to read:
17B-2a-1405
. Single service area authorized.
(1)
The district's service area consists of:
(a)
the service area established under Section
17B-2a-1403
; and
(b)
a retired project entity asset area.
(2)
The district may own and operate energy infrastructure facilities only within a
designated service area.
(3)
Once the service area is established, the district may not:
(a)
annex any new land into the service area; or
(b)
establish a new service area.
Section 6. Section
17B-2a-1406
is enacted to read:
17B-2a-1406
. Powers of the district.
(1)
Notwithstanding Subsection
17B-1-103(4)
and Section
17B-1-202
, and in addition to
the powers conferred on a special district under Section
17B-1-103
, the district may:
(a)
acquire by purchase, construction, gift, or any combination of these methods, and
own, operate, maintain, improve, and dispose of energy infrastructure facilities
within a designated service area;
(b)
enter into operating contracts with operators for the management, operation, and
maintenance of district-owned energy infrastructure facilities in accordance with
Section
17B-2a-1409
;
(c)
enter into power purchase agreements for the sale of electricity or other energy
produced by or transmitted through district-owned facilities;
(d)
issue revenue bonds in accordance with Section
17B-2a-1407
and Chapter 1, Part 11,
Special District Bonds;
(e)
enter into contracts, agreements, and other instruments necessary or convenient to
carry out the purposes of the district;
(f)
acquire water rights, air rights, and other real and personal property rights necessary
or convenient to the ownership or operation of energy infrastructure facilities within
the service area;
(g)
accept grants, gifts, loans, and other financial assistance from federal, state, and local
governmental entities;
(h)
employ staff and engage financial advisors, engineers, and other professional
services necessary to carry out the purposes of the district;
(i)
impose fees and charges for services provided by the district in accordance with
Chapter 1, Part 9, Collection of Service Fees and Charges;
(j)
impose penalties on an operator for non-compliance with the terms of an operating
contract, as specified in the operating contract; and
(k)
do all other things necessary or convenient to carry out the purposes of this part.
(2)
Before constructing or operating an energy infrastructure facility within the boundaries
of a city or town, the district shall obtain the consent of the local authorities who have
control of any street or highway proposed to be occupied by the facility, in accordance
with Utah Constitution, Article XI, Section 9.
(3)
(a)
The district is not an electric service provider and may not sell, distribute, or
deliver electricity directly to retail customers.
(b)
Neither the district nor the board may provide electric service within the certificated
service territory of any entity that has been authorized to provide retail electric
service in that territory
pursuant to
:
(i)
a certificate of public convenience and necessity issued by the Public Service
Commission under Title 54, Public Utilities;
(ii)
a franchise, ordinance, or other authorization granted under Title 10, Utah
Municipal Code; or
(iii)
any other provision of state law authorizing an entity to provide retail electric
service within a defined geographic area.
(c)
Nothing in this part shall be construed to limit, diminish, or otherwise affect the
certificated service territory of an entity that has been authorized to provide retail
electric service in the state.
Section 7. Section
17B-2a-1407
is enacted to read:
17B-2a-1407
. Revenue bonds -- Commission review and approval.
(1)
The district may issue revenue bonds to finance the acquisition, construction,
improvement, or equipping of energy infrastructure facilities within a designated service
area.
(2)
(a)
Revenue bonds issued under this section:
(i)
are limited obligations of the district payable solely from revenues deposited
into

the enterprise fund described in Section
17B-2a-1408
;
(ii)
do not constitute a general obligation or liability of, or a charge against the
general credit or taxing power of, the state or any political subdivision of the state;
(iii)
are not subject to the debt limitations of Utah Constitution, Article XIV; and
(iv)
shall state on the face of each bond the limitation described in Subsection
(2)(a)(ii)
.
(b)
Notwithstanding the requirements in Subsection
(2)(a)(iv)
, the failure to state on the
face on the bond the limitation described in (2)(a)(ii) does not have any impact on the
limited obligation described in this section.
(3)
(a)
The commission shall review and may approve a bond before the district may
issue a bond.
(b)
The commission may not approve issuance of a bond described in Subsection
(3)(a)

unless the execution and terms of the bond comply with state law.
(c)
If, after review, the commission approves a bond described in Subsection
(3)(a)
, the
district:
(i)
may not change before issuing the bond the terms of the bond that were reviewed
by the commission if the change is outside the approved parameters and intended
purposes; and
(ii)
is under no obligation to issue the bond.
(d)
A member of the commission who approves a bond under Subsection
(3)(a)
is not
personally liable on the bond.
(e)
The approval of a bond under Subsection
(3)(a)
:
(i)
is not an obligation of the state; and
(ii)
is not an act that:
(A)
lends the state's credit; or
(B)
constitutes indebtedness within the meaning of any constitutional or statutory
debt limitation.
(4)
The district may pledge to the payment of revenue bonds any legally available revenues
of the district.
(5)
The district may establish reserve funds, debt service funds, and other funds as required
by bond indentures or trust agreements securing revenue bonds issued under this section.
(6)
The district may issue refunding bonds to refund outstanding revenue bonds issued
under this section.
(7)
Notwithstanding Chapter 1, Part 11, Special District Bonds, the district may not issue
general obligation bonds.
Section 8. Section
17B-2a-1408
is enacted to read:
17B-2a-1408
. Energy Infrastructure Enterprise Fund.
(1)
In addition to the requirements of Chapter 1, Part 6, Fiscal Procedures for Special
Districts, the board shall establish and maintain
an
enterprise fund known as the Energy
Infrastructure Enterprise Fund.
(2)
The following shall be deposited into the enterprise fund:
(a)
proceeds of revenue bonds issued under Section
17B-2a-1407
, pending application to
authorized purposes including a bond project fund to ensure the appropriate use of
such proceeds;
(b)
payments received by the district under operating contracts;
(c)
payments received by the district under power purchase agreements; and
(d)
any other revenues received by or pledged to the district.
(3)
Revenues in the enterprise fund shall be used solely for the purposes of the district and
applied in the order prescribed by the district and in compliance with any bond contract
approved by the district.
Section 9. Section
17B-2a-1409
is enacted to read:
17B-2a-1409
. Operating contracts.
(1)
The district may enter into operating contracts with operators for the management,
operation, and maintenance of district-owned energy infrastructure facilities within the
service area described in Section
17B-2a-1405
.
(2)
An operating contract shall:
(a)
require the operator to manage, operate, and maintain the facility in accordance with
applicable law and prudent industry standards;
(b)
specify the payments the operator shall make to the district, which shall be structured
to cover, at minimum, the district's debt service obligations and operating costs
attributable to the facility;
(c)
specify the term of the contract, which may not exceed 40 years;
(d)
provide that upon expiration or termination of the contract full operational control of
the facility returns to the district free of any claim of the operator; and
(e)
specify the conditions under which the contract may be terminated or renewed.
(3)
An operating contract entered into under this section:
(a)
is a service agreement; and
(b)
does not convey a leasehold interest, ownership interest, or any other property
interest in the facility to the operator.
(4)
The district shall require each operator to maintain:
(a)
adequate insurance coverage as determined by the board; and
(b)
where appropriate, performance bonds or other financial security acceptable to the
board to protect the district's interests under the operating contract.
(5)
The board shall structure each operating contract to ensure that each operating contract
complies with applicable federal tax law governing qualified management contracts as
may be required by a federally tax-exempt revenue bond.
Section 10. Section
17B-2a-1410
is enacted to read:
17B-2a-1410
. Property taxes and privilege tax.
(1)
All property and assets of the district are exempt from taxation as provided in Section
17B-1-116
.
(2)
An operator using district-owned facilities is subject to the privilege tax imposed under
Title 59, Chapter 4, Privilege Tax.
(3)
The district may levy a privilege tax within the service area for district operations and
maintenance expenses at a rate not to exceed 0.0023.
(4)
Notwithstanding this section, nothing prohibits the district from agreeing to a payment
in lieu of taxes in the board's sole discretion.
Section 11. Section
17B-2a-1411
is enacted to read:
17B-2a-1411
. Dissolution.
(1)
The board may adopt a dissolution resolution if:
(a)
the district has ceased operations in the service area; and
(b)
the district has no outstanding debt or other obligations.
(2)
The Legislature may dissolve the district by joint resolution.
(3)
Upon dissolution of the district:
(a)
all outstanding revenue bonds shall be defeased or retired in accordance with their
terms before dissolution is effective; and
(b)
all remaining assets of the district shall be transferred to the state.
Section 12. Section
79-6-1101
is amended to read:
79-6-1101
. Utah Energy Council -- Creation and purpose.
(1)
As used in this part:
(a)
"Council" means the Utah Energy Council created in Section
79-6-1101
.
(b)
"Decommissioned asset" means a project entity asset that:
(i)
has been removed from active service by a project entity;
(ii)
has been transferred to the council, including:
(A)
transfer of legal title; and
(B)
transfer of operational responsibility; and
(iii)
will be operated and managed under the direction of the council.
(c)
"District" means the Utah Energy Infrastructure Service District created under
Section
17B-2a-1403
.
(c)
(d)
"Operator" means an entity that:
(i)
manages and maintains the daily operations of an electrical generation facility;
(ii)
employs the workforce necessary to run the facility;
(iii)
procures fuel and other necessary supplies;
(iv)
ensures compliance with all applicable regulations; and
(v)
maintains the reliability of power generation.
(d)
(e)
"Project entity" means the same as that term is defined in Section
11-13-103
.
(e)
(f)
"Project entity asset" means the same as that term is defined in Section
11-13-318
.
(g)
"State energy financing institution" means the same as that term is defined in 10
C.F.R. 609.2.
(2)
There is created within the office the Utah Energy Council.
(3)
The purpose of the council is to facilitate the development of electrical energy
generation and transmission projects within the state, including:
(a)
power plants;
(b)
transmission lines;
(c)
energy storage facilities; and
(d)
related infrastructure.
(4)
The council is a state energy financing institution for purposes of accessing federal
programs available to state energy financing institutions, including programs under 10
C.F.R. Part 609.
Section 13. Section
79-6-1102
is amended to read:
79-6-1102
. Council composition -- Appointment -- Terms -- Staffing.
(1)
The council shall be composed of:
(a)
the director or the director's designee
, who shall serve as chair of the council
;
(b)
two individuals appointed by the governor;
(c)
one individual appointed by the president of the Senate;
and
(d)
one individual appointed by the speaker of the House of Representatives
.
;
(e)
two individuals appointed by the members described in Subsections
(1)(a)
through
(d)
,
each of whom have experience in one or more of the following:
(i)
economic development, including support for existing or new industries that are
critical to the state;
(ii)
public utilities, including utility operations, management, regulation, or policy;
(iii)
bonding or public financing, including municipal bond issuance, project finance,
or public-private partnerships; or
(iv)
relevant legal matters, including energy law, public finance law, utility
regulation, or securities law.
(2)
(a)
Except as provided in Subsection
(2)(b)
, a council member appointed under
Subsection
(1)
:
(i)
shall serve a four-year term;
(ii)
may be removed by the appointing authority;
(iii)
may be reappointed; and
(iv)
continues to serve until the member's successor is appointed and qualified.
(b)
Initial terms for the appointed council members shall be staggered as follows:
(i)
one member appointed by the governor under Subsection
(1)(b)
shall serve a
two-year term;
(ii)
one member appointed by the governor under Subsection
(1)(b)
shall serve a
three-year term;
(iii)
the member appointed by the president of the Senate under Subsection
(1)(c)

shall serve a four-year term; and
(iv)
the member appointed by the speaker of the House of Representatives under
Subsection
(1)(d)
shall serve a two-year term.
(c)
A member appointed under Subsection
(1)(e)
may be removed by majority vote of
the council members appointed under Subsections
(1)(a)
through
(1)(d)
.
(3)
When a vacancy occurs in the membership for any reason, the replacement shall be
appointed by the relevant appointing authority for the unexpired term.
(4)
(a)
Until July 1, 2026, the director, or the director's designee, shall serve as chair of
the council.
(b)
Beginning on July 1, 2026:
(i)
the director, or the director's designee, shall serve as a co-chair of the council; and
(ii)
the president of the Senate and the speaker of the House of Representatives shall
jointly designate one member of the council described in Subsections
(1)(b)

through
(1)(e)
to serve as a co-chair of the council.
(c)
The co-chair designated under Subsection
(4)(b)(ii)
may be removed as co-chair and
replaced by joint designation of the president of the Senate and the speaker of the
House of Representatives.
(4)
(5)
(a)
A majority of council members constitutes a quorum for conducting council
business.
(b)
A majority vote of the quorum present is required for any action taken by the council.
(5)
(6)
The council shall meet:
(a)
at least quarterly; and
(b)
at the call of
the chair
a co-chair
or a majority of the council members.
(6)
(7)
(a)
A council member who is not a legislator may not receive compensation or
benefits for the member's service but may receive per diem and travel expenses in
accordance with:
(i)
Section
63A-3-106
;
(ii)
Section
63A-3-107
; and
(iii)
rules made by the Division of Finance under Sections
63A-3-106
and
63A-3-107
.
(b)
Compensation and expenses of a council member who is a legislator are governed by
Section
36-2-2
and Legislative Joint Rules, Title 5, Legislative Compensation and
Expenses.
(7)
(8)
The office shall provide staff support to the council.
(9)
(a)
Each member of the council serves concurrently as a member of the board of
trustees of the district by virtue of the member's appointment to the council.
(b)
Service on the board is concurrent with and coterminous with service on the council
and does not constitute a separate appointment or give rise to additional
compensation.
Section 14. Section
79-6-1103
is amended to read:
79-6-1103
. Council powers and duties.
(1)
The council shall:
(a)
coordinate and facilitate electrical energy project development, including:
(i)
site identification and permitting;
(ii)
early site preparation work;
(iii)
infrastructure improvements;
(iv)
project financing assistance; and
(v)
stakeholder coordination;
(b)
assess and facilitate electrical energy infrastructure development by:
(i)
evaluating infrastructure needs and opportunities;
(ii)
coordinating with transmission and pipeline developers;
(iii)
supporting utility planning efforts; and
(iv)
coordinating with federal agencies;
(c)
establish and implement:
(i)
strategic plans for energy development;
(ii)
frameworks for stakeholder engagement;
(iii)
processes for designating electrical energy development zones; and
(iv)
criteria for evaluating proposed electrical energy development zones;
(d)
review and approve:
(i)
research project proposals from the board; and
(ii)
funding allocations recommended by the board;
(e)
consult with state land use authorities regarding:
(i)
identification of state lands suitable for electrical energy development;
(ii)
designation of electrical energy development zones; and
(iii)
opportunities for coordinated development of electrical energy projects on state
lands;
(f)
administer the Electrical Energy Development Investment Fund created in Section
79-6-1105
;
(g)
make recommendations regarding electrical energy policy to state and local
governments;
(h)
identify and recommend solutions to barriers affecting electrical energy development;
(i)
assess and address potential public health impacts of electrical energy development
zones;
(j)
enter into contracts necessary to fulfill the council's duties;
(k)
report annually by October 31 to the Public Utilities, Energy, and Technology
Interim Committee and the Natural Resources, Agriculture, and Environment Interim
Committee regarding:
(i)
the council's activities;
(ii)
energy development opportunities;
(iii)
infrastructure needs;
(iv)
the status of designated electrical energy development zones;
(v)
recommendations for how the property tax differential revenue collected under
Section
79-6-1104
should be divided and distributed between the state, counties,
and municipalities;
(vi)
investment decisions made by the council; and
(vii)
recommended policy changes;
(l)
create and implement a strategic plan for a decommissioned asset, taking into
consideration:
(i)
the state energy policy, as provided in Section
79-6-301
;
(ii)
reliability of electrical generation; and
(iii)
economic viability;
(m)
establish policies and procedures for the management of a decommissioned asset;
(n)
administer contracts for the management and operations of a decommissioned asset;
(o)
enter into contracts necessary for the operation and management of a
decommissioned asset;
(p)
acquire, hold, and dispose of property related to a decommissioned asset;
(q)
select an operator for a decommissioned asset as provided in Section
79-6-1107
;
and
(r)
report annually to the Legislative Management Committee regarding:
(i)
the status and progress of the asset transfer;
(ii)
operational and financial status of the asset under council control;
(iii)
status of the operator contract;
(iv)
environmental compliance status; and
(v)
recommendations for legislation
.
; and
(s)
designate a service area for the district as provided in Section
17B-2a-1405
.
(2)
The council may create the Utah Energy Infrastructure Service District as provided in
Section
17B-2a-1403
.
(3)
The council shall negotiate with the applicable county or municipality regarding the
distribution of property tax differential revenue collected under Section
79-6-1104
.
(3)
(4)
Any portion of the property tax differential that is not distributed to the council
shall be distributed to the applicable county or municipality for impact mitigation and
affordable housing.
(4)
(5)
(a)
The portion of the property tax differential that is distributed to the
municipality shall be used for:
(i)
at least 10% of the total distribution shall be used for affordable housing
programs; and
(ii)
the remaining portion shall be used to mitigate impacts within the municipality
resulting from electrical energy development.
(b)
The portion of the property tax differential that is distributed to the county shall be
used for:
(i)
at least 10% of the total distribution shall be placed in a registered non-profit
established to administer housing programs on behalf of an association
representing 10 or more counties in the state; and
(ii)
the remaining portion shall be used to mitigate impacts within the county
resulting from electrical energy development.
(5)
(6)
If the council acquires a project entity asset under Section
11-13-318
, the council
shall enter into an agreement with the project entity that:
(a)
provides for the transfer, disposition, and future operation of the asset; and
(b)
ensures the transfer, disposition, and future operation does not interfere with the
project entity's ownership or operation of electrical generation facilities powered by
natural gas, hydrogen, or a combination of natural gas and hydrogen.
Section 15. Section
79-6-1104
is amended to read:
79-6-1104
. Electrical energy development zones -- Property tax differential.
(1)
As used in this section:
(a)
"Base taxable value" means the value of property within an electrical energy
development zone, as shown on the assessment roll last equalized before the creation
of the electrical energy development zone.
(b)
"Community reinvestment agency" means the same as that term is defined in Section
17C-1-102
.
(c)
"Community reinvestment project area" means the same as that term is defined in
Section
17C-1-102
.
(d)
"Municipal power project" means an electrical energy project that:
(i)
is operated by or on behalf of a municipality; and
(ii)
exclusively serves customers within that municipality's jurisdictional boundaries.
(e)
"Property tax differential" means the difference between:
(i)
the amount of property tax revenues generated each tax year by all taxing entities
from an electrical energy development zone, using the current assessed value of
the property; and
(ii)
the amount of property tax revenues that would be generated from that same area
using the base taxable value of the property.
(f)
"State land use authority" means:
(i)
the Utah Inland Port Authority created in Section
11-58-201
;
(ii)
the Military Installation Development Authority created in Section
63H-1-201
;
(iii)
the School and Institutional Trust Lands Administration created in Section
53C-1-201
; or
(iv)
any other land use authority created by the state that has jurisdiction over state
lands.
(2)
(a)
Except as provided in Subsection
(2)(b)
, a county or municipality may not offer
financial incentives for a baseload electrical energy project that is not located within
a designated electrical energy development zone.
(b)
Subsection
(2)(a)
does not apply to:
(i)
financial incentives offered for:
(A)
a municipal power project; or
(B)
an electrical energy project that exclusively utilizes intermittent resources; or
(ii)
an electrical energy project for which a project area plan has been approved
before July 1, 2026.
(3)
A county or municipality may:
(a)
pass a resolution declaring an intent to establish within the county or municipality
boundaries an energy development zone;
(b)
enter into an interlocal agreement with the council outlining each parties'
responsibilities relating to an energy development zone; and
(c)
apply to the council for the designation of an electrical energy development zone by
submitting:
(i)
a description of the proposed boundaries of the electrical energy development
zone;
(ii)
an assessment of existing electrical energy infrastructure within and proximate to
the proposed electrical energy development zone;
(iii)
a development plan that includes:
(A)
proposed electrical energy development projects;
(B)
anticipated infrastructure improvements;
(C)
projected economic benefits to the county; and
(D)
evidence of local support including any interlocal agreement entered into
between the county or municipality and the council, as applicable;
(iv)
if the applicant is a municipality, evidence of coordination with the county in
which the proposed electrical energy development zone is located, including any
interlocal agreement entered into between the county or municipality and the
council, as applicable;
(v)
if the applicant is a county and any portion of the proposed electrical energy
development zone is within the boundaries of a municipality, evidence of an
agreement with the municipality regarding the establishment of the electrical
energy development zone; and
(vi)
any other information required by the council.
(4)
A state land use authority may:
(a)
propose an electrical energy development zone within lands under its jurisdiction; and
(b)
apply to the council for the designation of an electrical energy development zone by
submitting:
(i)
a description of the proposed boundaries of the electrical energy development
zone;
(ii)
an assessment of existing electrical energy infrastructure within and proximate to
the proposed electrical energy development zone;
(iii)
a development plan that includes:
(A)
proposed electrical energy development projects;
(B)
anticipated infrastructure improvements; and
(C)
projected economic benefits;
(iv)
evidence that the proposed zone is consistent with applicable land use plans and
regulations; and
(v)
any other information required by the council.
(5)
The council shall:
(a)
approve an application for electrical energy development zone designation if the
application demonstrates:
(i)
the proposed electrical energy development zone includes land suitable for
electrical energy development based on:
(A)
access to electrical energy resources;
(B)
proximity to existing or planned transmission infrastructure;
(C)
adequate transportation access; and
(D)
sufficient land area for proposed development; and
(ii)
the development plan:
(A)
aligns with state energy policy under Section
79-6-301
;
(B)
includes realistic timelines and milestones;
(C)
identifies specific infrastructure improvements; and
(D)
quantifies projected economic benefits;
(b)
make a determination on an application within 60 days of submission;
(c)
provide written notice to the county or municipality explaining the basis for approval
or denial;
(d)
if an electrical energy development zone overlaps with an area designated by a
community reinvestment agency as a community reinvestment project area as of May
7, 2025, enter into an agreement with the community reinvestment agency to
determine the percentage division of the property tax differential between:
(i)
the Electrical Energy Development Investment Fund; and
(ii)
the community reinvestment agency; and
(e)
if an electrical energy development zone overlaps with an inland port project, enter
into an agreement with the Utah Inland Port Authority to determine the percentage
division of the property tax differential between:
(i)
the Electrical Energy Development Investment Fund; and
(ii)
the Utah Inland Port Authority created in Section
11-58-201
.
(6)
Within 30 days after the council designates an electrical energy development zone:
(a)
the county auditor shall certify to the council the base taxable value of property
within the electrical energy development zone; and
(b)
the county shall transmit to the council copies of the property tax assessment rolls for
all property within the electrical energy development zone.
(7)
(a)
Each year, the county auditor shall:
(i)
determine the amount of the property tax differential for the electrical energy
development zone by comparing:
(A)
the current assessed value of property within the electrical energy
development zone; and
(B)
the base taxable value of property within the electrical energy development
zone;
(ii)
inform the county treasurer of the property tax differential amount; and
(iii)
provide notice to the council of the amount calculated under this Subsection
(7)(a)
.
(b)
The county treasurer shall transfer the property tax differential to the council for
deposit into the Electrical Energy Development Investment Fund created in Section
79-6-1105
, subject to any agreements entered into under Subsections
(5)(d)
and
(5)(e)
.
(c)
The county treasurer shall make distributions required under this section:
(i)
at the same time as regular annual property tax distributions; and
(ii)
using the same method as other property tax distributions.
(8)
For property tax differential not subject to Subsection
(5)(d)
the council may enter into
agreements with taxing entities regarding the allocation of the property tax differential.
(9)
If an electrical energy development zone designated under this section overlaps with an
existing or proposed service area of the district, the council shall note the overlap in the
zone designation resolution.
Section 16.
Effective Date.
This bill takes effect on
May 6, 2026
.
3-12-26 2:08 PM