Fuel Tax and Supply Amendments

137
19-14-101
19-14-201
19-14-202
59-13-102
59-13-201
59-13-301
63I-2-259
72-5-501
72-5-502
79-6-410
79-6-602
0
Fuel Tax and Supply Amendments
2026 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Calvin Roberts
Senate Sponsor: Brady Brammer
LONG TITLE
General Description:
This bill reduces the motor fuel tax rate, requires reporting related to refining operations,
and enacts provisions related to pipeline permitting.
Highlighted Provisions:
This bill:
enacts provisions related to permitting and right-of-way coordination for certain oil and
gas infrastructure;
reduces the rate of the motor fuel tax;
requires refineries to report to the Office of Energy Development regarding production;
provides guidelines regarding information and data reported by refineries to the Office of
Energy Development;
amends definitions related to the High Cost Infrastructure Development Tax Credit; and
makes technical changes.
Money Appropriated in this Bill:
This bill appropriates
$11,903,900
in operating and capital budgets for fiscal year 2027, all
of which is from the General Fund.
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
59-13-102
, as last amended by Laws of Utah 2015, Chapter 275
59-13-201
, as last amended by Laws of Utah 2023, Chapter 464
59-13-301
, as last amended by Laws of Utah 2019, Chapter 479
63I-2-259
, as last amended by Laws of Utah 2025, Chapters 157, 182, 277, and 366
79-6-602
, as last amended by Laws of Utah 2025, Chapters 159, 251
ENACTS:
19-14-101
, Utah Code Annotated 1953
19-14-201
, Utah Code Annotated 1953
19-14-202
, Utah Code Annotated 1953
72-5-501
, Utah Code Annotated 1953
72-5-502
, Utah Code Annotated 1953
79-6-410
, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1. Section
19-14-101
is enacted to read:
14. Midstream Facility Permitting
1. General Provisions
19-14-101
. Definitions.
As used in this chapter:
(1)
"Applicant" means an individual or entity that applies for a pipeline or other permit as
described in this chapter.
(2)
(a)
"Midstream facility" means a facility, structure, or infrastructure used for the
gathering, processing, treatment, storage, or transportation of petroleum products
between the point of extraction or production and the point of distribution or end use,
including:
(i)
pipelines;
(ii)
storage tanks;
(iii)
processing plants;
(iv)
compression stations;
(v)
pumping stations; and
(vi)
related equipment and infrastructure necessary for the operation of the facility.
(b)
"Midstream facility" does not include:
(i)
a gathering line, flowline, or associated surface equipment subject to the
regulation of the Board of Oil, Gas, and Mining; or
(ii)
an underground storage facility, including salt caverns and associated injection
wells, regulated by the Board of Oil, Gas, and Mining under Title 40, Mines and
Mining.
Section 2. Section
19-14-201
is enacted to read:
2. Permitting
19-14-201
. Department permitting authority -- Application requirements.
(1)
For any permit required under this title, the department and the department's divisions
with permitting authorities described in the following chapters shall act as the permitting
authorities for a midstream facility:
(a)
Chapter 2, Air Conservation Act;
(b)
Chapter 2a, Air Quality - Special Provisions;
(c)
Chapter 3, Radiation Control Act;
(d)
Chapter 4, Safe Drinking Water Act;
(e)
Chapter 5, Water Quality Act;
(f)
Chapter 6, Hazardous Substances; and
(g)
Chapter 7, Environmental Self-Evaluation Act.
(2)
The department and the department's divisions described in Subsection
(1)
shall
coordinate with the Governor's Office of Economic Opportunity for permitting
coordination across agencies and divisions.
(3)
A permit application for a midstream facility shall include:
(a)
a detailed description of the proposed midstream facility;
(b)
environmental and safety assessments as required by applicable law;
(c)
evidence of financial capacity to complete the project; and
(d)
other information the division directors with permitting authorities described in
Subsection
(1)
determine necessary to evaluate the application.
(4)
The department shall, in accordance with Title 63G, Chapter 3, Utah Administrative
Rulemaking Act, make rules establishing:
(a)
the form and process for submitting an application; and
(b)
additional application requirements for each of the department's permitting divisions
applicable to the project.
(5)
The department and the department's divisions may charge a fee for review of a
midstream facility consistent with existing fee authorities under this title.
(6)
Nothing in this section alters the jurisdiction or authority of the department and the
department's divisions permitting authorities or creates a presumption that a division is
required to issue or approve a permit.
(7)
Nothing in this section or in the coordination duties of the Governor's Office of
Economic Opportunity described in Subsection
(2)
limits, alters, or supersedes the
authority of the Board of Oil, Gas, and Mining or the Division of Oil, Gas, and Mining
to regulate oil and gas operations, including the fostering and promotion of natural
resource development under Title 40, Mines and Mining.
Section 3. Section
19-14-202
is enacted to read:
19-14-202
. Permit processing timeline.
(1)
Subject to Subsections
(2)
and
(3)
, if the division director receives an application
described in Section
19-14-201
, the applicable division director shall approve or deny an
application within 120 days of the date on which the applicable division director
receives the complete application.
(2)
(a)
The division director may, based on extraordinary circumstances, and without the
concurrence of the applicant, extend the deadline described in Subsection
(1)
for a
reasonable period not to exceed 30 days.
(b)
If the division director extends the deadline as described in Subsection
(2)
, the
division director shall provide written findings to explain the need for the extension.
(3)
The division director may, with concurrence of the applicant, extend the deadline
described in Subsection
(1)
for a term agreed upon by the division director and the
applicant.
Section 4. Section
59-13-102
is amended to read:
59-13-102
. Definitions.
As used in this chapter:
(1)
"Aviation fuel" means fuel that is sold at airports and used exclusively for the operation
of aircraft.
(2)
"Clean fuel" means:
(a)
the following special fuels:
(i)
propane;
(ii)
compressed natural gas;
(iii)
liquified natural gas;
(iv)
electricity; or
(v)
hydrogen; or
(b)
any motor or special fuel that meets the clean fuel vehicle standards in the federal
Clean Air Act Amendments of 1990, Title II.
(3)
"Commission" means the State Tax Commission.
(4)
"Consumer Price Index" means the Consumer Price Index for All Urban Consumers as
published by the Bureau of Labor Statistics of the United States Department of Labor.
(5)
(a)
"Diesel fuel" means any liquid that is commonly or commercially known, offered
for sale, or used as a fuel in diesel engines.
(b)
"Diesel fuel" includes any combustible liquid, by whatever name the liquid may be
known or sold, when the liquid is used in an internal combustion engine for the
generation of power to operate a motor vehicle licensed to operate on the highway,
except fuel that is subject to the tax imposed in
Part 2, Motor Fuel
, and
Part 4,
Aviation Fuel
, of this chapter.
(6)
"Diesel gallon equivalent" means 6.06 pounds of liquified natural gas.
(7)
"Distributor" means any person in this state who:
(a)
imports or causes to be imported motor fuel for use, distribution, or sale, whether at
retail or wholesale;
(b)
produces, refines, manufactures, or compounds motor fuel in this state for use,
distribution, or sale in this state;
(c)
is engaged in the business of purchasing motor fuel for resale in wholesale quantities
to retail dealers of motor fuel and who accounts for his own motor fuel tax liability; or
(d)
for purposes of
Part 4, Aviation Fuel
, only, makes retail sales of aviation fuel to:
(i)
federally certificated air carriers; and
(ii)
other persons.
(8)
"Dyed diesel fuel" means diesel fuel that is dyed in accordance with 26 U.S.C. Sec.
4082 or United States Environmental Protection Agency or Internal Revenue Service
regulations and that is considered destined for nontaxable off-highway use.
(9)
"Exchange agreement" means an agreement between licensed suppliers where one is a
position holder in a terminal who agrees to deliver taxable
motor fuel or
special fuel to
the other supplier or the other supplier's customer at the loading rack of the terminal
where the delivering supplier holds an inventory position.
(10)
"Federally certificated air carrier" means a person who holds a certificate issued by the
Federal Aviation Administration authorizing the person to conduct an all-cargo
operation or scheduled operation, as defined in 14 C.F.R. Sec. 110.2.
(11)
"Fuels" means any gas, liquid, solid, mixture, or other energy source which is
generally used in an engine or motor for the generation of power, including aviation
fuel, clean fuel, diesel fuel, motor fuel, and special fuel.
(12)
"Gasoline gallon equivalent" means:
(a)
5.660 pounds of compressed natural gas; or
(b)
2.198 pounds of hydrogen.
(13)
"Highway" means every way or place, of whatever nature, generally open to the use of
the public for the purpose of vehicular travel notwithstanding that the way or place may
be temporarily closed for the purpose of construction, maintenance, or repair.
(14)
"Motor fuel" means fuel that is commonly or commercially known or sold as gasoline
or gasohol and is used for any purpose, but does not include aviation fuel.
(15)
"Motor fuels received" means:
(a)
motor fuels that have been loaded at the refinery or other place into tank cars, placed
in any tank at the refinery from which any withdrawals are made directly into tank
trucks, tank wagons, or other types of transportation equipment, containers, or
facilities other than tank cars, or placed in any tank at the refinery from which any
sales, uses, or deliveries not involving transportation are made directly; or
(b)
motor fuels that have been imported by any person into the state from any other state
or territory by tank car, tank truck, pipeline, or any other conveyance at the time
when, and the place where, the interstate transportation of the motor fuel is
completed within the state by the person who at the time of the delivery is the owner
of the motor fuel.
(16)
"Oil pricing service" means an organization that:
(a)
publishes wholesale petroleum prices within the United States;
(b)
publishes at least 25,000 rack prices on a daily basis; and
(c)
receives daily gasoline and diesel prices from at least 100,000 retail outlets in the
United States and Canada.
(17)
(a)
"Qualified motor vehicle" means a special fuel-powered motor vehicle used,
designed, or maintained for transportation of persons or property which:
(i)
has a gross vehicle weight or registered gross vehicle weight exceeding 26,000
pounds;
(ii)
has three or more axles regardless of weight; or
(iii)
is used in a combination of vehicles when the weight of the combination of
vehicles exceeds 26,000 pounds gross vehicle weight.
(b)
"Qualified motor vehicle" does not include a recreational vehicle not used in
connection with any business activity.
(18)
"Rack," as used in
Part 3, Special Fuel
,
"Rack"
means a deck, platform, or open bay
which consists of a series of metered pipes and hoses for the delivery or removal of
motor fuel or
diesel fuel from a refinery or terminal into a motor vehicle, rail car, or
vessel.
(19)
(a)
"Removal," as used in
Part 3, Special Fuel
,
"Removal"
means the physical
transfer of
motor fuel or
diesel fuel from a production, manufacturing, terminal, or
refinery facility and includes use of
motor fuel or
diesel fuel.
(b)
"
Removal
"
does not include:
(a)
(i)
loss by evaporation or destruction; or
(b)
(ii)
transfers between refineries, racks, or terminals.
(20)
(a)
"Special fuel" means any fuel regardless of name or character that:
(i)
is usable as fuel to operate or propel a motor vehicle upon the public highways of
the state; and
(ii)
is not taxed under the category of aviation or motor fuel.
(b)
Special fuel includes:
(i)
fuels that are not conveniently measurable on a gallonage basis; and
(ii)
diesel fuel.
(21)
"Statewide average rack price of a gallon of motor fuel" means the average rack price
of a gallon of motor fuel determined by calculating the average of the Salt Lake City and
Cedar City terminal prices of the average daily average net closing price of a gallon of
branded regular, 10% ethanol, 9.0 Reid Vapor Pressure unleaded motor fuel for each
terminal.
(21)
(22)
"Supplier," as used in
Part 3, Special Fuel
,
"Supplier"
means a person who:
(a)
imports or acquires immediately upon importation into this state
motor fuel or
diesel
fuel from within or without a state, territory, or possession of the United States or the
District of Columbia;
(b)
produces, manufactures, refines, or blends
motor fuel or
diesel fuel in this state;
(c)
otherwise acquires for distribution or sale in this state,
motor fuel or
diesel fuel with
respect to which there has been no previous taxable sale or use; or
(d)
is in a two party exchange where the receiving party is deemed to be the supplier.
(22)
(23)
"Terminal," as used in
Part 3, Special Fuel
,
"Terminal"
means a facility for the
storage of
motor fuel or
diesel fuel which is supplied by a motor vehicle, pipeline, or
vessel and from which
motor fuel or
diesel fuel is removed for distribution at a rack.
(23)
(24)
"Two party exchange" means a transaction in which
motor fuel or
special fuel is
transferred between licensed suppliers
pursuant to
in accordance with
an exchange
agreement.
(24)
(25)
"Undyed diesel fuel" means diesel fuel that is not subject to the dyeing
requirements in accordance with 26 U.S.C. Sec. 4082 or United States Environmental
Protection Agency or Internal Revenue Service regulations.
(25)
(26)
"Use," as used in
Part 3, Special Fuel
,
"Use"
means the consumption of special
fuel for the operation or propulsion of a motor vehicle upon the public highways of the
state and includes the reception of special fuel into the fuel supply tank of a motor
vehicle.
(26)
(27)
"User," as used in
Part 3, Special Fuel
,
"User"
means any person who uses
special fuel within this state in an engine or motor for the generation of power to operate
or propel a motor vehicle upon the public highways of the state.
(27)
(28)
"Ute tribal member" means an enrolled member of the Ute tribe.
(28)
(29)
"Ute tribe" means the Ute Indian Tribe of the Uintah and Ouray Reservation.
(29)
(30)
"Ute trust land" means the lands:
(a)
of the Uintah and Ouray Reservation that are held in trust by the United States for the
benefit of:
(i)
the Ute tribe;
(ii)
an individual; or
(iii)
a group of individuals; or
(b)
specified as trust land by agreement between the governor and the Ute tribe meeting
the requirements of Subsections
59-13-201.5(3)
and
59-13-301.5(3)
.
Section 5. Section
59-13-201
is amended to read:
59-13-201
. Rate -- Tax basis -- Exemptions -- Revenue deposited into the
Transportation Fund -- Restricted account for boating uses -- Refunds -- Reduction of
tax in limited circumstances.
(1)
(a)
(i)
Subject to
Subsection
(1)(a)(ii)
and
the provisions of this section and except
as provided in Subsection
(1)(e)
, a tax is imposed at the rate of 14.2% of the
statewide average rack price of a gallon of motor fuel per gallon upon all motor
fuel that is sold, used, or received for sale or used in this state.
(ii)
Beginning on July 1, 2026, and ending on December 31, 2026, the commission
shall apply a tax rate of $0.319 per gallon upon all motor fuel that is sold, used, or
received for sale or used in this state.
(ii)
Notwithstanding Subsection
(1)(a)(i)
, for the period beginning on July 1, 2023,
and ending on December 31, 2023, the rate described in Subsection
(1)(a)(i)
shall
be 34.5 cents per gallon.
(b)
(i)
Until December 31, 2018, and subject to the requirements under Subsection
(1)(c)
, the statewide average rack price of a gallon of motor fuel under Subsection
(1)(a)
shall be determined by calculating the previous fiscal year statewide
average rack price of a gallon of regular unleaded motor fuel, excluding federal
and state excise taxes, for the 12 months ending on the previous June 30 as
published by an oil pricing service.
(ii)
Beginning on January 1, 2019, and subject
Subject
to the requirements under
Subsection
(1)(c)
, the statewide average rack price of a gallon of motor fuel under
Subsection
(1)(a)
shall be determined by calculating the previous three fiscal years
statewide average rack price of a gallon of regular unleaded motor fuel, excluding
federal and state excise taxes, for the 36 months ending on the previous June 30 as
published by an oil pricing service.
(c)
(i)
Subject to the requirement in Subsection
(1)(c)(ii)
, the
three-year rolling
average of the
statewide average rack price of a gallon of motor fuel determined
under Subsection
(1)(b)
may not be less than $1.78 per gallon.
(ii)
Beginning on January 1, 2019, the
The
commission shall, on January 1, annually
adjust the minimum statewide average rack price of a gallon of motor fuel
described in Subsection
(1)(c)(i)
by taking the minimum statewide average rack
price of a gallon of motor fuel for the previous calendar year and adding an
amount equal to the greater of:
(A)
an amount calculated by multiplying the minimum statewide average rack
price of a gallon of motor fuel for the previous calendar year by the actual
percent change during the previous fiscal year in the Consumer Price Index; and
(B)
0.
(iii)
The statewide average rack price of a gallon of motor fuel determined by the
commission under Subsection
(1)(b)
may not exceed:
(A)
for a calendar year beginning on January 1, 2024, $2.57 per gallon;
(B)
for a calendar year beginning on January 1, 2025, $2.71 per gallon;
(C)
(A)
for a calendar year beginning on January 1, 2026, $2.82 per gallon; and
(D)
(B)
for a calendar year beginning on January 1, 2028, and thereafter, $2.96
per gallon.
(iv)
The minimum statewide average rack price of a gallon of motor fuel described
and adjusted under Subsections
(1)(c)(i)
and
(ii)
may not exceed the maximum
statewide average rack price of a gallon of motor fuel under Subsection
(1)(c)(iii)
.
(d)
(i)
The commission shall annually:
(A)
determine the
three-year rolling average of the
statewide average rack price of
a gallon of motor fuel in accordance with Subsections
(1)(b)
and
(c)
;
(B)
adjust the fuel tax rate imposed under Subsection
(1)(a)
, rounded to the
nearest one-tenth of a cent, based on the determination under Subsection
(1)(b)
;
(C)
publish the adjusted fuel tax as a cents per gallon rate; and
(D)
post or otherwise make public the adjusted fuel tax rate as determined in
Subsection
(1)(d)(i)(B)
no later than 60 days before the annual effective date
under Subsection
(1)(d)(ii)
.
(ii)
The tax rate imposed under this Subsection
(1)
and adjusted as required under
Subsection
(1)(d)(i)
shall take effect on January 1 of each year.
(e)
In lieu of the tax imposed under Subsection
(1)(a)
and subject to the provisions of
this section, a tax is imposed at the rate of 3/19 of the rate imposed under Subsection
(1)(a)
, rounded up to the nearest penny, upon all motor fuels that meet the definition
of clean fuel in Section
59-13-102
and are sold, used, or received for sale or use in
this state.
(2)
Any increase or decrease in tax rate applies to motor fuel that is imported to the state or
sold at refineries in the state on or after the effective date of the rate change.
(3)
(a)
No motor fuel tax is imposed upon:
(i)
motor fuel that is brought into and sold in this state in original packages as purely
interstate commerce sales;
(ii)
motor fuel that is exported from this state if proof of actual exportation on forms
prescribed by the commission is made within 180 days after exportation;
(iii)
motor fuel or components of motor fuel that is sold and used in this state and
distilled from coal, oil shale, rock asphalt, bituminous sand, or solid hydrocarbons
located in this state; or
(iv)
motor fuel that is sold to the United States government, this state, or the political
subdivisions of this state.
(b)
In accordance with
Title 63G, Chapter 3, Utah Administrative Rulemaking Act
, the
commission shall make rules governing the procedures for administering the tax
exemption provided under Subsection
(3)(a)(iv)
.
(4)
The commission may either collect no tax on motor fuel exported from the state or,
upon application, refund the tax paid.
(5)
(a)
All revenue received by the commission under this part shall be deposited daily
with the state treasurer and credited to the Transportation Fund.
(b)
An appropriation from the Transportation Fund shall be made to the commission to
cover expenses incurred in the administration and enforcement of this part and the
collection of the motor fuel tax.
(6)
(a)
The commission shall determine what amount of motor fuel tax revenue is
received from the sale or use of motor fuel used in motorboats registered under
Title
73, Chapter 18, State Boating Act
, and this amount shall be deposited into a restricted
revenue account in the General Fund of the state.
(b)
The funds from this account shall be used for the construction, improvement,
operation, and maintenance of state-owned boating facilities and for the payment of
the costs and expenses of the Division of Outdoor Recreation in administering and
enforcing
Title 73, Chapter 18, State Boating Act
.
(7)
(a)
The United States government or any of its instrumentalities, this state, or a
political subdivision of this state that has purchased motor fuel from a licensed
distributor or from a retail dealer of motor fuel and has paid the tax on the motor fuel
as provided in this section is entitled to a refund of the tax and may file with the
commission for a quarterly refund.
(b)
In accordance with
Title 63G, Chapter 3, Utah Administrative Rulemaking Act
, the
commission shall make rules governing the application and refund provided for in
Subsection
(7)(a)
.
(8)
(a)
The commission shall refund annually into the Off-highway Vehicle Account in
the General Fund an amount equal to .5% of the motor fuel tax revenues collected
under this section.
(b)
This amount shall be used as provided in Section
41-22-19
.
(9)
(a)
Beginning on April 1, 2001, a
A
tax imposed under this section on motor fuel
that is sold, used, or received for sale or use in this state is reduced to the extent
provided in Subsection
(9)(b)
if:
(i)
a tax imposed on the basis of the sale, use, or receipt for sale or use of the motor
fuel is paid to the Navajo Nation;
(ii)
the tax described in Subsection
(9)(a)(i)
is imposed without regard to whether
or
not
the person required to pay the tax is an enrolled member of the Navajo
Nation; and
(iii)
the commission and the Navajo Nation execute and maintain an agreement as
provided in this Subsection
(9)
for the administration of the reduction of tax.
(b)
(i)
If but for Subsection
(9)(a)
the motor fuel is subject to a tax imposed by this
section:
(A)
the state shall be paid the difference described in Subsection
(9)(b)(ii)
if that
difference is greater than $0; and
(B)
a person may not require the state to provide a refund, a credit, or similar tax
relief if the difference described in Subsection
(9)(b)(ii)
is less than or equal to
$0.
(ii)
The difference described in Subsection
(9)(b)(i)
is equal to the difference between:
(A)
the amount of tax imposed on the motor fuel by this section; less
(B)
the tax imposed and collected by the Navajo Nation on the motor fuel.
(c)
For purposes of Subsections
(9)(a)
and
(b)
, the tax paid to the Navajo Nation under a
tax imposed by the Navajo Nation on the basis of the sale, use, or receipt for sale or
use of motor fuel does not include any interest or penalties a taxpayer may be
required to pay to the Navajo Nation.
(d)
In accordance with
Title 63G, Chapter 3, Utah Administrative Rulemaking Act
, the
commission shall make rules governing the procedures for administering the
reduction of tax provided under this Subsection
(9)
.
(e)
The agreement required under Subsection
(9)(a)
:
(i)
may not:
(A)
authorize the state to impose a tax in addition to a tax imposed under this
chapter;
(B)
provide a reduction of taxes greater than or different from the reduction
described in this Subsection
(9)
; or
(C)
affect the power of the state to establish rates of taxation;
(ii)
shall:
(A)
be in writing;
(B)
be signed by
:

(I)
the chair of the commission or the chair's designee
;
,
and

(II)
a person designated by the Navajo Nation that may bind the Navajo
Nation;
(C)
be conditioned on obtaining any approval required by federal law;
(D)
state the effective date of the agreement; and
(E)
state any accommodation the Navajo Nation makes related to the construction
and maintenance of state highways and other infrastructure within the Utah
portion of the Navajo Nation; and
(iii)
may:
(A)
notwithstanding Section
59-1-403
, authorize the commission to disclose to the
Navajo Nation information that is
:

(I)
contained in a document filed with the commission
;
,
and

(II)
related to the tax imposed under this section;
(B)
provide for maintaining records by the commission or the Navajo Nation; or
(C)
provide for inspections or audits of distributors, carriers, or retailers located or
doing business within the Utah portion of the Navajo Nation.
(f)
(i)
If
, on or after April 1, 2001,
the Navajo Nation changes the tax rate of a tax
imposed on motor fuel, any change in the reduction of taxes under this Subsection
(9)
as a result of the change in the tax rate is not effective until the first day of the
calendar quarter after a 60-day period beginning on the date the commission
receives notice:
(A)
from the Navajo Nation; and
(B)
meeting the requirements of Subsection
(9)(f)(ii)
.
(ii)
The notice described in Subsection
(9)(f)(i)
shall state:
(A)
that the Navajo Nation has changed or will change the tax rate of a tax
imposed on motor fuel;
(B)
the effective date of the rate change of the tax described in Subsection
(9)(f)(ii)(A)
; and
(C)
the new rate of the tax described in Subsection
(9)(f)(ii)(A)
.
(g)
If the agreement required by Subsection
(9)(a)
terminates, a reduction of tax is not
permitted under this Subsection
(9)
beginning on the first day of the calendar quarter
after a 30-day period beginning on the day the agreement terminates.
(h)
If there is a conflict between this Subsection
(9)
and the agreement required by
Subsection
(9)(a)
, this Subsection
(9)
governs.
Section 6. Section
59-13-301
is amended to read:
59-13-301
. Tax basis -- Rate -- Exemptions -- Revenue deposited with treasurer
and credited to Transportation Fund -- Reduction of tax in limited circumstances.
(1)
(a)
Except as provided in Subsections
(1)(b)
,
(2)
,
(3)
,
(11)
, and
(12)
and Section
59-13-304
59-13-301.5
, a tax is imposed at the same rate imposed under Subsection
59-13-201(1)(a)
on the:
(i)
removal of undyed diesel fuel from any refinery;
(ii)
removal of undyed diesel fuel from any terminal;
(iii)
entry into the state of any undyed diesel fuel for consumption, use, sale, or
warehousing;
(iv)
sale of undyed diesel fuel to any person who is not registered as a supplier under
this part unless the tax has been collected under this section;
(v)
any untaxed special fuel blended with undyed diesel fuel; or
(vi)
use of untaxed special fuel other than propane or electricity.
(b)
For the special fuel tax rate beginning on July 1, 2026, and ending on December 31,
2026:
(i)
the adjustment described in Subsection
59-13-201(1)(a)(ii)
does not apply; and
(ii)
the commission shall apply the same rate in place as of January 1, 2026.
(b)
(c)
The tax imposed under this section shall only be imposed once upon any special
fuel.
(2)
(a)
No special fuel tax is imposed or collected upon dyed diesel fuel which:
(i)
is sold or used for any purpose other than to operate or propel a motor vehicle
upon the public highways of the state, but this exemption applies only in those
cases where the purchasers or the users of special fuel establish to the satisfaction
of the commission that the special fuel was used for purposes other than to operate
a motor vehicle upon the public highways of the state; or
(ii)
is sold to this state or any of its political subdivisions.
(b)
No special fuel tax is imposed on undyed diesel fuel or clean fuel that is:
(i)
sold to the United States government or any of its instrumentalities or to this state
or any of its political subdivisions;
(ii)
exported from this state if proof of actual exportation on forms prescribed by the
commission is made within 180 days after exportation;
(iii)
used in a vehicle off-highway;
(iv)
used to operate a power take-off unit of a vehicle;
(v)
used for off-highway agricultural uses;
(vi)
used in a separately fueled engine on a vehicle that does not propel the vehicle
upon the highways of the state; or
(vii)
used in machinery and equipment not registered and not required to be
registered for highway use.
(3)
No tax is imposed or collected on special fuel if it is:
(a)
(i)
purchased for business use in machinery and equipment not registered and not
required to be registered for highway use; and
(ii)
used
pursuant to
in accordance with
the conditions of a state implementation
plan approved under
Title 19, Chapter 2, Air Conservation Act
; or
(b)
propane or electricity.
(4)
Upon request of a buyer meeting the requirements under Subsection
(3)
, the Division of
Air Quality shall issue an exemption certificate that may be shown to a seller.
(5)
The special fuel tax shall be paid by the supplier.
(6)
(a)
The special fuel tax shall be paid by every user who is required by Sections
59-13-303
and
59-13-305
to obtain a special fuel user permit and file special fuel tax
reports.
(b)
The user shall receive a refundable credit for special fuel taxes paid on purchases
which are delivered into vehicles and for which special fuel tax liability is reported.
(7)
(a)
Except as provided under Subsections
(7)(b)
and
(c)
, all revenue received by the
commission from taxes and license fees under this part shall be deposited daily with
the state treasurer and credited to the Transportation Fund.
(b)
An appropriation from the Transportation Fund shall be made to the commission to
cover expenses incurred in the administration and enforcement of this part and the
collection of the special fuel tax.
(c)
Five dollars of each special fuel user trip permit fee paid under Section
59-13-303

may be used by the commission as a dedicated credit to cover the costs of electronic
credentialing as provided in Section
41-1a-303
.
(8)
The commission may either collect no tax on special fuel exported from the state or,
upon application, refund the tax paid.
(9)
(a)
The United States government or any of its instrumentalities, this state, or a
political subdivision of this state that has purchased special fuel from a supplier or
from a retail dealer of special fuel and has paid the tax on the special fuel as provided
in this section is entitled to a refund of the tax and may file with the commission for a
quarterly refund in a manner prescribed by the commission.
(b)
In accordance with
Title 63G, Chapter 3, Utah Administrative Rulemaking Act
, the
commission shall make rules governing the application and refund provided for in
Subsection
(9)(a)
.
(10)
(a)
The purchaser shall pay the tax on diesel fuel or clean fuel purchased for uses
under Subsections
(2)(b)(i)
,
(iii)
,
(iv)
,
(v)
,
(vi)
, and
(vii)
and apply for a refund for the
tax paid as provided in Subsection
(9)
and this Subsection
(10)
.
(b)
In accordance with
Title 63G, Chapter 3, Utah Administrative Rulemaking Act
, the
commission shall make rules governing the application and refund for off-highway
and nonhighway uses provided under Subsections
(2)(b)(iii)
,
(iv)
,
(vi)
, and
(vii)
.
(c)
A refund of tax paid under this part on diesel fuel used for nonhighway agricultural
uses shall be made in accordance with the tax return procedures under Section
59-13-202
.
(11)
(a)
Beginning on April 1, 2001, a
A
tax imposed under this section on special fuel
is reduced to the extent provided in Subsection
(11)(b)
if:
(i)
the Navajo Nation imposes a tax on the special fuel;
(ii)
the tax described in Subsection
(11)(a)(i)
is imposed without regard to whether
the person required to pay the tax is an enrolled member of the Navajo Nation; and
(iii)
the commission and the Navajo Nation execute and maintain an agreement as
provided in this Subsection
(11)
for the administration of the reduction of tax.
(b)
(i)
If but for Subsection
(11)(a)
the special fuel is subject to a tax imposed by this
section:
(A)
the state shall be paid the difference described in Subsection
(11)(b)(ii)
if that
difference is greater than $0; and
(B)
a person may not require the state to provide a refund, a credit, or similar tax
relief if the difference described in Subsection
(11)(b)(ii)
is less than or equal
to $0.
(ii)
The difference described in Subsection
(11)(b)(i)
is equal to the difference
between:
(A)
the amount of tax imposed on the special fuel by this section; less
(B)
the tax imposed and collected by the Navajo Nation on the special fuel.
(c)
For purposes of Subsections
(11)(a)
and
(b)
, the tax paid to the Navajo Nation on the
special fuel does not include any interest or penalties a taxpayer may be required to
pay to the Navajo Nation.
(d)
In accordance with
Title 63G, Chapter 3, Utah Administrative Rulemaking Act
, the
commission shall make rules governing the procedures for administering the
reduction of tax provided under this Subsection
(11)
.
(e)
The agreement required under Subsection
(11)(a)
:
(i)
may not:
(A)
authorize the state to impose a tax in addition to a tax imposed under this
chapter;
(B)
provide a reduction of taxes greater than or different from the reduction
described in this Subsection
(11)
; or
(C)
affect the power of the state to establish rates of taxation;
(ii)
shall:
(A)
be in writing;
(B)
be signed by
:

(I)
the chair of the commission or the chair's designee
;
,
and

(II)
a person designated by the Navajo Nation that may bind the Navajo
Nation;
(C)
be conditioned on obtaining any approval required by federal law;
(D)
state the effective date of the agreement; and
(E)
state any accommodation the Navajo Nation makes related to the construction
and maintenance of state highways and other infrastructure within the Utah
portion of the Navajo Nation; and
(iii)
may:
(A)
notwithstanding Section
59-1-403
, authorize the commission to disclose to the
Navajo Nation information that is
:

(I)
contained in a document filed with the commission
;
,
and

(II)
related to the tax imposed under this section;
(B)
provide for maintaining records by the commission or the Navajo Nation; or
(C)
provide for inspections or audits of suppliers, distributors, carriers, or retailers
located or doing business within the Utah portion of the Navajo Nation.
(f)
(i)
If
, on or after April 1, 2001,
the Navajo Nation changes the tax rate of a tax
imposed on special fuel, any change in the amount of the reduction of taxes under
this Subsection
(11)
as a result of the change in the tax rate is not effective until
the first day of the calendar quarter after a 60-day period beginning on the date the
commission receives notice:
(A)
from the Navajo Nation; and
(B)
meeting the requirements of Subsection
(11)(f)(ii)
.
(ii)
The notice described in Subsection
(11)(f)(i)
shall state:
(A)
that the Navajo Nation has changed or will change the tax rate of a tax
imposed on special fuel;
(B)
the effective date of the rate change of the tax described in Subsection
(11)(f)(ii)(A)
; and
(C)
the new rate of the tax described in Subsection
(11)(f)(ii)(A)
.
(g)
If the agreement required by Subsection
(11)(a)
terminates, a reduction of tax is not
permitted under this Subsection
(11)
beginning on the first day of the calendar
quarter after a 30-day period beginning on the day the agreement terminates.
(h)
If there is a conflict between this Subsection
(11)
and the agreement required by
Subsection
(11)(a)
, this Subsection
(11)
governs.
(12)
(a)
(i)
Subject
Beginning on January 1, 2026, and subject
to Subsections
(12)(a)(ii)
and
(iii)
, a tax imposed under this section on compressed natural gas is
imposed at a rate of
:
$0.212 per gallon equivalent.
(A)
until June 30, 2016, 10-1/2 cents per gasoline gallon equivalent;
(B)
beginning on July 1, 2016, and until June 30, 2017, 12-1/2 cents per gasoline
gallon equivalent;
(C)
beginning on July 1, 2017, and until June 30, 2018, 14-1/2 cents per gasoline
gallon equivalent; and
(D)
beginning on or after July 1, 2018, 16-1/2 cents per gasoline gallon
equivalent.
(ii)
Beginning on January 1,
2020
2027
, the commission shall, on January 1,
annually adjust the rate of a tax imposed under this section on compressed natural
gas by taking the rate for the previous calendar year and adding an amount equal
to the greater of:
(A)
an amount calculated by multiplying the rate of a tax imposed under this
section on compressed natural gas for the previous calendar year by the actual
percent change during the previous fiscal year in the Consumer Price Index; and
(B)
0.
(iii)
The rate of a tax imposed under this section on compressed natural gas
determined by the commission under Subsection
(12)(a)(ii)
may not exceed 22-1/2
cents per gasoline gallon equivalent.
(b)
(i)
Subject
Beginning on January 1, 2026, and subject
to Subsections
(12)(b)(ii)

and
(iii)
, a tax imposed under this section on liquified natural gas is imposed at a
rate of
:
$0.212 per gallon equivalent.
(A)
until June 30, 2016, 10-1/2 cents per diesel gallon equivalent;
(B)
beginning on July 1, 2016, and until June 30, 2017, 12-1/2 cents per diesel
gallon equivalent;
(C)
beginning on July 1, 2017, and until June 30, 2018, 14-1/2 cents per diesel
gallon equivalent; and
(D)
beginning on or after July 1, 2018, 16-1/2 cents per diesel gallon equivalent.
(ii)
Beginning on January 1,
2020
2027
, the commission shall, on January 1,
annually adjust the rate of a tax imposed under this section on liquified natural gas
by taking the rate for the previous calendar year and adding an amount equal to
the greater of:
(A)
an amount calculated by multiplying the rate of a tax imposed under this
section on liquified natural gas for the previous calendar year by the actual
percent change during the previous fiscal year in the Consumer Price Index; and
(B)
0.
(iii)
The rate of a tax imposed under this section on liquified natural gas determined
by the commission under Subsection
(12)(b)(ii)
may not exceed 22-1/2 cents per
diesel gallon equivalent.
(c)
(i)
Subject
Beginning on January 1, 2026, and subject
to Subsections
(12)(c)(ii)

and
(iii)
, a tax imposed under this section on hydrogen used to operate or propel a
motor vehicle upon the public highways of the state is imposed at a rate of
:

$0.212 per gallon equivalent.
(A)
until June 30, 2016, 10-1/2 cents per gasoline gallon equivalent;
(B)
beginning on July 1, 2016, and until June 30, 2017, 12-1/2 cents per gasoline
gallon equivalent;
(C)
beginning on July 1, 2017, and until June 30, 2018, 14-1/2 cents per gasoline
gallon equivalent; and
(D)
beginning on or after July 1, 2018, 16-1/2 cents per gasoline gallon
equivalent.
(ii)
Beginning on January 1,
2020
2027
, the commission shall, on January 1,
annually adjust the rate of a tax imposed under this section on hydrogen used to
operate or propel a motor vehicle upon the public highways of the state by taking
the rate for the previous calendar year and adding an amount equal to the greater
of:
(A)
an amount calculated by multiplying the rate of a tax imposed under this
section on hydrogen used to operate or propel a motor vehicle upon the public
highways of the state for the previous calendar year by the actual percent
change during the previous fiscal year in the Consumer Price Index; and
(B)
0.
(iii)
The rate of a tax imposed under this section on hydrogen used to operate or
propel a motor vehicle upon the public highways of the state determined by the
commission under Subsection
(12)(c)(ii)
may not exceed 22-1/2 cents per gasoline
gallon equivalent.
(d)
(i)
The commission shall annually:
(A)
adjust the fuel tax rates imposed under Subsections
(12)(a)(ii)
,
(b)(ii)
, and
(c)(ii)
, rounded to the nearest one-tenth of a cent;
(B)
publish the adjusted fuel tax as a cents per gallon rate; and
(C)
post or otherwise make public the adjusted fuel tax rate as determined in
Subsection
(12)(d)(i)(A)
no later than 60 days
prior to
before
the annual
effective date under Subsection
(12)(d)(ii)
.
(ii)
The tax rates imposed under this Subsection
(12)
and adjusted as required under
Subsection
(12)(d)(i)
shall take effect on January 1 of each year.
Section 7. Section
63I-2-259
is amended to read:
63I-2-259
. Repeal dates: Title 59.
(1)
Subsection
59-7-159(3)(b)(iii)
, referencing Section
59-7-614.10
, is repealed December
31, 2026.
(2)
Section
59-7-614.10
, Nonrefundable enterprise zone tax credit, is repealed December
31, 2026.
(3)
Subsection
59-10-137(3)(b)(viii)
, referencing Section
59-10-1037
, is repealed
December 31, 2026.
(4)
Section
59-10-1037
, Nonrefundable enterprise zone tax credit, is repealed December 31,
2026.
(5)
Subsections
59-13-201(1)(a)(ii)
and
59-13-301(1)(b)
, regarding the temporary
application of a motor fuel tax rate between July 1, 2026, and December 31, 2026, are
repealed on January 1, 2027.
(5)
(6)
Subsection
59-14-807(3)(a)(iii)
, regarding the Youth Electronic Cigarette,
Marijuana, and Other Drug Prevention Committee, is repealed July 1, 2030.
(6)
(7)
Subsection
59-14-807(4)(b)
, regarding the Youth Electronic Cigarette, Marijuana,
and Other Drug Prevention Committee, is repealed July 1, 2030.
(7)
(8)
Section
59-24-103.8
, Radioactive waste facility expansion tax -- Payment --
Deposit of tax revenue, is repealed July 1, 2026.
Section 8. Section
72-5-501
is enacted to read:
5. Pipeline Right-of-Way Cooperation
72-5-501
. Definitions.
As used in this part:
(1)
"Common carrier pipeline" is a pipeline engaged in the transportation of petroleum
products, including refined products, that holds itself out to provide transportation
service to the public for compensation on reasonable terms.
(2)
"Finished product pipeline" means a common carrier pipeline and related facilities used
to transport refined petroleum products, renewables, or other finished energy products.
Section 9. Section
72-5-502
is enacted to read:
72-5-502
. Pipeline right-of-way cooperation.
If a proposed route for a finished product pipeline crosses a state or federal highway, the
department shall cooperate with and assist the pipeline proponent in negotiating and siting of
the highway-pipeline intersection.
Section 10. Section
79-6-410
is enacted to read:
79-6-410
. Refinery production report.
(1)
As used in this section:
(a)
"Barrel" means an amount equal to 42 gallons of oil at atmospheric pressure and at a
temperature of 60 degrees Fahrenheit.
(b)
"Crude oil" means hydrocarbons, regardless of gravity, that occur naturally in the
gaseous phase in the reservoir and are separated from the natural gas as liquids
through the process of condensation either in the reservoir, in the wellbore, or at the
surface infield separators.
(c)
"Finished petroleum product" means a product resulting from petroleum refining,
including gasoline, diesel fuel, jet fuel, kerosene, fuel oils, lubricating oils, asphalt,
petroleum coke, liquefied petroleum gases, and other products derived from the
refining process.
(d)
"Petroleum refined" means the volume of crude oil and unfinished petroleum
products introduced into the refining process.
(e)
"Refine" means the industrial process of converting crude oil or unfinished
petroleum products into finished petroleum products through distillation, cracking,
reforming, blending, or other chemical or physical processes.
(f)
"Refiner" means a person that owns, operates, or controls a refinery.
(g)
"Refinery" means a facility located in this state at which petroleum refining is
conducted, including processing units, storage facilities, and associated infrastructure
under common ownership or operational control at a single geographic location or
integrated complex.
(2)
Beginning July 1, 2026, and quarterly thereafter, a refiner shall provide to the office a
report that includes:
(a)
the total number of barrels of crude oil refined at the refinery in the previous calendar
quarter;
(b)
the total quantity of the products derived and produced from refining at the refinery
in the previous calendar quarter;
(c)
the total quantity of finished petroleum products, itemized by type, that arrived at the
refinery or terminal in the previous calendar quarter; and
(d)
the total quantity of finished petroleum products, itemized by type, that leave the
refinery or terminal.
(3)
(a)
The office shall compile the data received in the report described in Subsection
(2)

for each refiner.
(b)
The office shall provide the compiled data described in Subsection
(3)(a)
in an
aggregated form to the Division of Oil, Gas, and Mining on a quarterly basis.
(4)
(a)
Information provided to the office under this section is:
(i)
a protected record under Title 63G, Chapter 2, Government Records Access and
Management Act;
(ii)
confidential commercial information; and
(iii)
a trade secret for purposes of state law.
(b)
Information described in Subsection
(4)(a)
is not subject to disclosure, inspection, or
copying under Title 63G, Chapter 2, Government Records Access and Management
Act, or any other state law.
(c)
The protected status of information under this section is mandatory and does not
require a claim or assertion by the reporting entity.
(5)
(a)
The office or any state agency may not release, publish, or disclose information
reported under this section in a manner that identifies, or could reasonably be used to
identify:
(i)
a refinery;
(ii)
a refiner;
(iii)
a facility; or
(iv)
operational proprietary business information.
(b)
Information may be released only in aggregated statistical form that prevents
identification of a reporting entity.
(6)
(a)
Information collected under this section may be used only for:
(i)
statewide statistical analysis; or
(ii)
energy planning purposes.
(b)
Information collected under this section may not be used as the basis for:
(i)
regulatory enforcement;
(ii)
administrative action;
(iii)
market intervention;
(iv)
price regulation;
(v)
civil or criminal investigation; or
(vi)
any action against a reporting entity, except for enforcement of the reporting
requirement under this section.
(7)
(a)
Information reported under this section may not be shared with another state
agency or political subdivision unless:
(i)
the receiving entity agrees in writing to maintain confidentiality protections at
least as stringent as those provided in this section; and
(ii)
the information is used only for purposes permitted under Subsection
(6)
.
(b)
Information may not be disclosed to the public or a private party through interagency
transfer.
(8)
Information reported under this section may not be disclosed to a federal agency unless
disclosure is required by federal law and the receiving agency provides written
assurance that the information will be protected by confidentiality protections at least as
stringent as those provided under federal law governing refinery reporting data.
(9)
(a)
Information reported under this section is not subject to subpoena, discovery, or
admission into evidence in any civil, criminal, or administrative proceeding.
(b)
A court may not order disclosure of information reported under this section.
(10)
(a)
The office shall adopt rules establishing a secure procedure for submission,
storage, and handling of information reported under this section.
(b)
The office shall implement administrative, technical, and physical safeguards to
protect the confidentiality and integrity of the information.
(11)
(a)
The office may retain reported information only for the minimum period
necessary to perform the purposes described in Subsection
(6)
.
(b)
The office shall securely destroy confidential information after the retention period.
(12)
(a)
A person who knowingly discloses information protected under this section is
guilty of a class A misdemeanor.
(b)
A reporting entity may bring a civil action for damages, injunctive relief, and
attorney fees against a person or government entity that unlawfully discloses
protected information.
(13)
Submission of information under this section does not waive any privilege or
protection under state or federal law.
(14)
This section shall be interpreted to provide confidentiality protections at least as
stringent as protections applied to refinery operational data collected by the United
States Energy Information Administration.
Section 11. Section
79-6-602
is amended to read:
79-6-602
. Definitions.
As used in this part:
(1)
"Applicant" means a person that conducts business in the state and that applies for a tax
credit under this part.
(2)
(a)
"District energy system" means equipment and facilities that:
(i)
use one or more thermal energy sources to provide:
(A)
space heating;
(B)
hot water; or
(C)
space cooling; and
(ii)
deliver services through a distribution system.
(b)
"District energy system" includes:
(i)
plants;
(ii)
equipment;
(iii)
distribution piping;
(iv)
apparatus; and
(v)
other facilities used to provide space heating, hot water, or space cooling.
(3)
(a)
"Energy delivery project" means a project that is designed to:
(i)
increase the capacity for the delivery of energy to a user of energy inside or
outside the state;
(ii)
increase the capability of an existing energy delivery system or related facility to
deliver energy to a user of energy inside or outside the state;
(iii)
increase the production and delivery of geothermal energy through horizontal
drilling to create injection and production wells;
or
(iv)
increase the capacity for recovery of thermal energy for a heating or cooling
system through a district energy system
.
; or
(v)
increase storage capacity of refined hydrocarbon products.
(b)
"Energy delivery project" includes:
(i)
a hydroelectric energy storage system;
(ii)
a utility-scale battery storage system;
(iii)
a nuclear power generation system;
or
(iv)
a district energy system
.
; or
(v)
development of a pipeline and related infrastructure for transmission of refined
hydrocarbons for storage in a solution-mined subsurface salt cavern.
(4)
"Emissions reduction project" means a project that is designed to reduce the emissions
of an existing electrical generation facility, refinery, smelter, kiln, mineral processing
facility, manufacturing facility, oil or gas production facility, or other industrial facility,
by utilizing selective catalytic reduction technology, carbon capture utilization and
sequestration technology, or any other emissions reduction technology or equipment.
(5)
"Fuel standard compliance project" means a project designed to retrofit a fuel refinery in
order to make the refinery capable of producing fuel that complies with the United
States Environmental Protection Agency's Tier 3 gasoline sulfur standard described in
40 C.F.R. Sec. 79.54.
(6)
"High cost infrastructure project" means:
(a)
for an energy delivery project, fuel standard compliance project, mineral processing
project, or underground mine infrastructure project, a project:
(i)
(A)
that expands or creates new industrial, mining, manufacturing, or
agriculture activity in the state, not including a retail business;
(B)
that involves new investment of at least $50,000,000 made by an existing
industrial, mining, manufacturing, or agriculture entity located within a county
of the first or second class;
(C)
that involves new investment of at least $25,000,000 made by an existing
industrial, mining, manufacturing, or agriculture entity located within a county
of the third, fourth, fifth, or sixth class, or a municipality with a population of
10,000 or less located within a county of the second class;
(D)
that involves new investment of at least $10,000,000 for the construction of a
plant or facility for thermal energy production of heating or cooling used in a
district energy system; or
(E)
for the construction of a plant or other facility for the storage or production of
fuel used for transportation, electricity generation, or industrial use;
(ii)
that requires or is directly facilitated by infrastructure construction; and
(iii)
for which the cost of infrastructure construction to the entity creating the project
is greater than:
(A)
10% of the total cost of the project; or
(B)
$10,000,000; and
(b)
for an emissions reduction project, water purification project, or water resource
forecasting project, a project:
(i)
that involves:
(A)
new investment of at least $50,000,000 made by an existing industrial,
mining, manufacturing, or agriculture entity located within a county of the first
or second class; or
(B)
new investment of at least $25,000,000 made by an existing industrial,
mining, manufacturing, or agriculture entity located within a county of the
third, fourth, fifth, or sixth class, or a municipality with a population of 10,000
or less located within a county of the second class; and
(ii)
that requires or is directly facilitated by infrastructure construction.
(7)
"Infrastructure" means:
(a)
an energy delivery project;
(b)
a railroad as defined in Section
54-2-1
;
(c)
a fuel standard compliance project;
(d)
a road improvement project;
(e)
a water self-supply project;
(f)
a water removal system project;
(g)
a solution-mined subsurface salt cavern;
(h)
a project that is designed to:
(i)
increase the capacity for water delivery to a water user in the state; or
(ii)
increase the capability of an existing water delivery system or related facility to
deliver water to a water user in the state;
(i)
an underground mine infrastructure project;
(j)
an emissions reduction project;
(k)
a mineral processing project;
(l)
a district energy system project;
(m)
a water purification project; or
(n)
a water resource forecasting project.
(8)
(a)
"Infrastructure cost-burdened entity" means an applicant that enters into an
agreement with the office that qualifies the applicant to receive a tax credit as
provided in this part.
(b)
"Infrastructure cost-burdened entity" includes a pass-through entity taxpayer, as
defined in Section
59-10-1402
, of a person described in Subsection
(8)(a)
.
(9)
"Infrastructure-related revenue" means an amount of tax revenue, for an entity creating
a high cost infrastructure project, in a taxable year, that is directly attributable to a high
cost infrastructure project, under:
(a)
Subsection
59-24-103.5(2)(e)
;
(b)
Title 59, Chapter 5, Part 1, Oil and Gas Severance Tax;
(c)
Title 59, Chapter 5, Part 2, Mining Severance Tax;
(d)
Title 59, Chapter 7, Corporate Franchise and Income Taxes;
(e)
Title 59, Chapter 10, Individual Income Tax Act; and
(f)
Title 59, Chapter 12, Sales and Use Tax Act.
(10)
"Mineral processing project" means a project that is designed to:
(a)
process, smelt, refine, convert, separate, or otherwise beneficiate metalliferous
minerals as defined in Section
59-5-201
or a metalliferous compound as defined in
Section
59-5-202
;
(b)
calcine limestone or manufacture cement;
(c)
process, refine, or otherwise beneficiate chloride compounds, salts, potash, gypsum,
sulfur or sulfuric acid, ammonium nitrate, phosphate, or uintaite; or
(d)
convert or gasify coal to recover chemical compounds, gases, or minerals.
(11)
"Office" means the Office of Energy Development created in Section
79-6-401
.
(12)
"Tax credit" means a tax credit under Section
59-5-305
,
59-7-619
, or
59-10-1034
.
(13)
"Tax credit certificate" means a certificate issued by the office to an infrastructure
cost-burdened entity that:
(a)
lists the name of the infrastructure cost-burdened entity;
(b)
lists the infrastructure cost-burdened entity's taxpayer identification number;
(c)
lists, for a taxable year, the amount of the tax credit authorized for the infrastructure
cost-burdened entity under this part; and
(d)
includes other information as determined by the office.
(14)
(a)
"Underground mine infrastructure project" means a project that:
(i)
is designed to create permanent underground infrastructure to facilitate
underground mining operations; and
(ii)
services multiple levels or areas of an underground mine or multiple underground
mines.
(b)
"Underground mine infrastructure project" includes:
(i)
an underground access or a haulage road, entry, ramp, or decline;
(ii)
a vertical or incline mine shaft;
(iii)
a ventilation shaft or an air course; or
(iv)
a conveyor or a truck haulageway.
(15)
"Water purification project" means a project that, in order to meet applicable quality
standards established under Title 19, Chapter 5, Water Quality Act, is designed to reduce
the existing total dissolved solids or other naturally existing impurities contained in
water sources:
(a)
located at a distance of not less than 2,000 feet below the surface;
(b)
associated with existing mineral operations; or
(c)
associated with deep water mining operations designed primarily for the
revitalization of the Great Salt Lake.
(16)
"Water resource forecasting project" means a project that includes a network of
permanent physical data collection systems designed to improve forecasting for the
availability of seasonal water flows within the state, including flash flooding and other
event-driven water flows resulting from localized severe weather events.
Section 12.
FY 2027 Appropriations.
The following sums of money are appropriated for the fiscal year beginning July 1,
2026, and ending June 30, 2027. These are additions to amounts previously appropriated for
fiscal year 2027.
Subsection 12(a).
Operating and Capital Budgets
Under the terms and conditions of Title 63J, Chapter 1, Budgetary Procedures Act, the
Legislature appropriates the following sums of money from the funds or accounts indicated for
the use and support of the government of the state of Utah.
TRANSPORTATION AND INFRASTRUCTURE
TRANSPORTATION
ITEM 1
Transportation - Pass-Through
From General Fund, One-time
11,903,900
B and C Roads
11,903,900
Section 13.
Effective Date.
This bill takes effect on
May 6, 2026
.
3-10-26 9:52 AM