79-6 - Utah Energy Act

Title 79 > 79-6

Sections (49)

General Provisions

79-6-101 - Title.

This chapter is known as the “Utah Energy Act.”

Renumbered and Amended by Chapter 280, 2021 General Session

79-6-102 - Definitions.

As used in this chapter:

(1) “Adequate” means an amount of energy sufficient to continuously meet demand from under normal conditions, not including planned outages and temporary service disruptions.

(2) “Affordable” means priced to be accessible to the population without causing financial strain or compromising basic needs, quality of life, or well-being.

(3) “Clean” means minimizing adverse environmental impact and able to meet state standards for environmental quality.

(4) “Consortium” means the Nuclear Energy Consortium created in Section 79-6-1201.

(5) “Council” means the Utah Energy Council established in Section 79-6-1101.

(6) “Director” means the director of the office.

(7) “Dispatchable” means available for use on demand and generally available to be delivered at a time and quantity of the operator’s choosing.

(8) “Electrical corporation” means the same as that term is defined in Section 54-2-1.

(9) “Electrical energy development zone” means a geographic area designated by the council under Section 79-6-1104 for baseload electrical energy infrastructure development.

(10) “Gas corporation” means the same as that term is defined in Section 54-2-1.

(11) “Intermittent” means available for use on a variable basis that is dependent on elements outside of the control of the operator.

(12) “Office” means the Office of Energy Development created in Section 79-6-401.

(13) “Reliable” means supporting a system generally able to provide a continuous supply and the resiliency to withstand sudden or unexpected disturbances.”Reliable” includes, for systems delivering electricity, the ability to provide electricity at the proper voltage and frequency.

(14) “Secure” means protected against disruption, tampering, and external interference.

(15) “Sustainable” means domestically sourced and able to provide affordable, reliable energy in adequate quantities for current and future generations without compromising economic prosperity or environmental health.

(16) “Governmental entity” means:any department, agency, board, commission, or other instrumentality of the state; ora political subdivision of the state.

Amended by Chapter 375, 2025 General Session

79-6-106 - Hydrogen advisory council.

(1) The department shall create a hydrogen advisory council within the office that consists of seven to nine members appointed by the executive director, in consultation with the director. The executive director shall appoint members with expertise in:hydrogen energy in general;hydrogen project facilities;technology suppliers;hydrogen producers or processors;renewable and fossil based power generation industries; andfossil fuel based hydrogen feedstock providers.

(2) Except as required by Subsection (2)(b), a member shall serve a four-year term.The executive director shall, at the time of appointment or reappointment, adjust the length of terms to ensure that the terms of council members are staggered so that approximately half of the hydrogen advisory council is appointed every two years.When a vacancy occurs in the membership for any reason, the replacement shall be appointed for the unexpired term.

(3) A majority of the members appointed under this section constitutes a quorum of the hydrogen advisory council.The hydrogen advisory council shall determine:the time and place of meetings; andany other procedural matter not specified in this section.

(4) A member may not receive compensation or benefits for the member’s service, but may receive per diem and travel expenses in accordance with:Section 63A-3-106;Section 63A-3-107; andrules made by the Division of Finance pursuant to Sections 63A-3-106 and 63A-3-107.

(5) The office shall staff the hydrogen advisory council.

(6) The hydrogen advisory council may:develop hydrogen facts and figures that facilitate use of hydrogen fuel within the state;encourage cross-state cooperation with states that have hydrogen programs;work with state agencies, the private sector, and other stakeholders, such as environmental groups, to:recommend realistic goals for hydrogen development that can be executed within realistic time frames; andeducate, discuss, consult, and make recommendations in hydrogen related matters that benefit the state;promote hydrogen research at an institution of higher education, as defined in Section 53H-1-101;make recommendations regarding how to qualify for federal funding of hydrogen projects, including hydrogen related projects for:the state;a local government;a privately commissioned project;an educational project;scientific development; andengineering and novel technologies;make recommendations related to the development of multiple feedstock or energy resources in the state such as wind, solar, hydroelectric, geothermal, coal, natural gas, oil, water, electrolysis, coal gasification, liquefaction, hydrogen storage, safety handling, compression, and transportation;make recommendations to establish statewide safety protocols for production, transportation, and handling of hydrogen for both residential and commercial applications;facilitate public events to raise the awareness of hydrogen and hydrogen related fuels within the state and how hydrogen can be advantageous to all forms of transportation, heat, and power generation;review and make recommendations regarding legislation; andmake other recommendations to the director related to hydrogen development in the state.

Amended by Chapter 9, 2025 Special Session 1

State Energy Policy

79-6-301 - State energy policy.

(1) It is the policy of the state that:Utah will develop its energy resources and plan its energy future with a focus on human well-being and quality of life, recognizing that reliable access to energy is vital for human health, adaptation, economic growth, and prosperity;Utah shall have energy resources that have the following attributes, listed in order of priority:adequate;reliable;dispatchable;affordable;sustainable;secure; andclean; andUtah shall encourage the construction and use of energy systems that balance the criteria described in Subsection (1)(a)(ii) while giving priority to the criteria in the order they are listed in Subsection (1)(a)(ii);Utah shall foster market-based solutions to:meet current and future energy demands;protect proven technologies; andminimize political uncertainties in pursuing energy development and strategy;Utah shall promote the development of a diverse energy portfolio, including:dispatchable energy resources, including natural gas, coal, oil, and hydroelectric;nuclear power generation technologies certified for use by the United States Nuclear Regulatory Commission including molten salt reactors producing medical isotopes;intermittent energy resources, including solar and wind;clean energy sources by considering the environmental impact, including emissions, of an energy resource throughout the entire life cycle of the energy resource; andincreased refinery capacity; andUtah shall encourage innovation in the development of energy resources, including:emerging energy resources, including geothermal, biomass, biofuel, oil shale, and oil sands;alternative transportation fuels and technologies; andenergy storage, pumped storage, and other developing energy systems, including hydrogen from all sources;Utah shall streamline state regulatory processes to balance economic costs with the level of review necessary to ensure protection of the state’s interests; andUtah shall encourage expedited federal action and will collaborate with federal agencies to expedite review;Utah shall maintain an environment that provides for stable consumer prices that are as low as possible while providing producers and suppliers a fair return on investment, recognizing that:economic prosperity is linked to the availability, reliability, and affordability of consumer energy supplies; andinvestment will occur only when adequate financial returns can be realized;Utah shall assess the utility value of each prospective energy resource to meet the state’s increasing demands including:a market analysis with and without government subsidies; andthe total system impact of an energy resource;Utah shall provide support for the innovation, research, and development of new energy resources and promote the development of resources and infrastructure sufficient to meet the state’s growing demand and to contribute to the regional and national energy supply, thus reducing dependence on international energy materials; andUtah shall allow market forces to drive prudent use of energy resources, although incentives and other methods may be used to ensure the state’s optimal development and use of energy resources in the short- and long-term;Utah shall promote the development of resources, tools, and infrastructure to enhance the state’s ability to:maintain adequate supply, including reserves of proven and cost-effective resources to meet demand;ensure the state’s energy independence by promoting and prioritizing the use of energy resources generated within the state; andrespond effectively to significant disruptions to the state’s energy generation, energy delivery systems, or fuel supplies;Utah shall research and develop in consideration of the complete life cycle of an energy resource including mining, transportation, consumption, disposal, and reclamation;Utah shall promote the development of a secure supply chain from resource extraction to energy production and consumption; andUtah shall, in accordance with the policy principles described in this section, support the construction of infrastructure to encourage:energy development;diversified modes of energy transportation;greater access to domestic and international markets for Utah’s resources; andadvanced transmission systems;Utah shall pursue energy conservation, energy efficiency, and environmental quality; andUtah shall promote training and education programs developed by the office, focused on developing a comprehensive understanding of energy, including:programs addressing:supply and demand;energy related workforce development;energy efficiency; andenergy conservation; andenergy education programs in grades kindergarten through grade 12.

(2) Governmental entities, the Public Service Commission, electric corporations, and gas corporations shall conduct activities consistent with Subsection (1).

(3) A person may not file suit to challenge a state agency’s action that is inconsistent with Subsection (1).

Amended by Chapter 493, 2024 General Session

79-6-302 - Legislative committee review.

The Public Utilities, Energy, and Technology Interim Committee shall review the state energy policy annually and propose any changes to the Legislature.

Amended by Chapter 68, 2022 General Session

79-6-303 - Legislative findings — Forced retirement of electrical generation facilities.

(1) As used in this section:“Commission” means the Public Service Commission established in Section 54-1-1.”Dispatchable” means available for use on demand and generally available to be delivered at a time and quantity of the operator’s choosing.”Early retirement” means the closure of an electrical generation facility before reaching the end of a normal operational lifespan when significant upgrades and renovations to prolong the electrical generation facility’s service are still financially reasonable investments.”Electrical generation facility” means a facility that generates electricity for provision to customers.”Forced retirement” means the closure of an electrical generation facility as a result of a federal regulation that either directly mandates the closure of an electrical generation facility or where the costs of compliance are so high as to effectively force the closure of an electrical generation facility.”Nameplate capacity” means the sum of the maximum rated outputs of all electrical generating equipment within a facility under specific conditions designated by the manufacturer, as indicated on individual nameplates physically attached to the equipment.”Plant factor” means the ratio of the actual annual electrical energy output of an electrical generation facility compared to the potential annual electrical energy output if the electrical generation facility operated at full capacity continuously for the entire year.”Qualified utility” means the same as that term is defined in Section 54-17-801.”Reliable” means supporting a system generally able to provide a continuous supply of electricity at the proper voltage and frequency and the resiliency to withstand sudden or unexpected disturbances.”Replacement plan” means a plan by a qualified utility to replace the energy supply of an existing electrical generation facility.”Secure” means protected against disruption, tampering, and external interference.

(2) The Legislature finds that:affordable, reliable, dispatchable, and secure energy resources are important to the health, safety, and welfare of the state’s citizens;the state has invested substantial resources in the development of affordable, reliable, dispatchable, and secure energy resources within the state;the early retirement of an electrical generation facility that provides affordable, reliable, dispatchable, and secure energy is a threat to the health, safety, and welfare of the state’s citizens;the state’s police powers, reserved to the state by the United States Constitution, provide the state with sovereign authority to make and enforce laws for the protection of the health, safety, and welfare of the state’s citizens;the state has a duty to defend the production and supply of affordable, reliable, dispatchable, and secure energy from external regulatory interference; andthe state’s sovereign authority with respect to the retirement of an electrical generation facility for the protection of the health, safety, and welfare of the state’s citizens is primary and takes precedence over any attempt from an external regulatory body to mandate, restrict, or influence the early retirement of an electrical generation facility in the state.

(3) A qualified utility that receives notice of any federal regulation that may result in the forced retirement of the qualified utility’s electrical generation facility shall inform the Office of the Attorney General of the regulation within 30 days after the receipt of notice.

(4) After being informed as described in Subsection (3), the Office of the Attorney General may take any action necessary to defend the interest of the state with respect to electricity generation by the qualified utility, including filing an action in court or participating in administrative proceedings.

(5) Before authorizing or approving a rate case, integrated resource plan, or other submission that proposes the early retirement of an electrical generation facility, the commission shall:consider the Legislature’s findings in Subsection (2);determine, based on clear and convincing evidence, that the early retirement of an electrical generation facility will not:create a material adverse effect on the provision of affordable, reliable, dispatchable, and secure electricity to customers in the state;create or exacerbate an existing shortage of available electricity to customers in the state;harm the qualified utility’s ratepayers by causing the qualified utility to incur any net incremental costs to be recovered from ratepayers that could be avoided by continuing to operate the electric generating unit proposed for retirement in compliance with applicable law; andbe undertaken as a result of any financial incentives or benefits for closure related costs offered by any federal agency;determine whether the utility has proven a commitment and capability to have a replacement plan operational before retiring the existing facility; andin making the determination under Subsection (b), consider the following characteristics:plant factor;nameplate capacity;reliability;dispatchability;affordability; andthe minimum reserve capacity requirement established by the utility’s reliability coordinator.

(6) The commission shall prepare and submit an annual report to the Public Utilities, Energy, and Technology Interim Committee before November 30 of each year detailing:the number of received requests to retire electric generating units in the state, including:the nameplate capacity of each of those units; andwhether the request was approved or denied by the commission;the impact of any commission-approved retirement of an electric generating unit on the:state’s generation fuel mix;required capacity reserve margins for the qualified utility;need for capacity additions or expansions at new or existing facilities as a result of the retirement; andneed for additional purchase power or capacity reserve arrangements; andwhether a retirement resulted in stranded costs for the ratepayer that will be recovered by the utility through a surcharge or some other separate charge on the customer bill.

Amended by Chapter 47, 2024 General Session

Office of Energy Development

79-6-401 - Office of Energy Development — Creation — Director — Purpose — Rulemaking regarding confidential information — Fees — Transition for employees.

(1) There is created an Office of Energy Development within the Department of Natural Resources to be administered by a director.

(2) The governor shall appoint the director with the advice and consent of the Senate.The director shall: have demonstrated the necessary administrative and professional ability through education and experience to efficiently and effectively manage the office’s affairs;serve at the pleasure of the governor; andreport to the executive director on matters concerning the office as the executive director may require.

(3) The purposes of the office are to:serve as the primary resource for advancing energy and mineral development in the state;implement:the state energy policy under Section 79-6-301; andthe governor’s energy and mineral development goals and objectives;advance energy education, outreach, and research, including the creation of elementary, higher education, and technical college energy education programs;promote energy and mineral development workforce initiatives;support collaborative research initiatives targeted at Utah-specific energy and mineral development;in coordination with the Department of Environmental Quality and other relevant state agencies:develop effective policy strategies to advocate for and protect the state’s interests relating to federal energy and environmental entities, programs, and regulations;participate in the federal environmental rulemaking process by:advocating for positive reform of federal energy and environmental regulations and permitting;coordinating with other states to develop joint advocacy strategies; andconducting other government relations efforts; anddirect the funding of legal efforts to combat federal overreach and unreasonable delays regarding energy and environmental permitting; andfund the development of detailed and accurate forecasts of the state’s long-term energy supply and demand, including a baseline projection of expected supply and demand and analysis of potential alternative scenarios.

(4) By following the procedures and requirements of Title 63J, Chapter 5, Federal Funds Procedures Act, the office may:seek federal grants or loans;seek to participate in federal programs; andin accordance with applicable federal program guidelines, administer federally funded state energy programs.

(5) The office shall perform the duties required by Sections 11-42a-106, 59-5-302, 59-7-614.7, 59-10-1029, Part 5, Alternative Energy Development Tax Credit Act, and Part 6, High Cost Infrastructure Development Tax Credit Act.

(6) For purposes of administering this section, the office may make rules, by following Title 63G, Chapter 3, Utah Administrative Rulemaking Act, to maintain as confidential, and not as a public record, information that the office receives from any source.The office shall maintain information the office receives from any source at the level of confidentiality assigned by the source.

(7) The office may charge application, filing, and processing fees in amounts determined by the office in accordance with Section 63J-1-504 as dedicated credits for performing office duties described in this part.

(8) An employee of the office on April 30, 2024, is an at-will employee.For an employee described in Subsection (8)(a) who was employed by the office on April 30, 2024, the employee shall have the same salary and benefit options an employee had when the office was part of the office of the governor.An employee of the office hired on or after May 1, 2024, shall receive compensation as provided in Title 63A, Chapter 17, Utah State Personnel Management Act.

(9) The office shall prepare a strategic energy plan to achieve the state’s energy policy, including:technological and infrastructure innovation needed to meet future energy demand including:energy production technologies;battery and storage technologies;smart grid technologies;energy efficiency technologies; andany other developing energy technology, energy infrastructure planning, or investments that will assist the state in meeting energy demand;the state’s efficient use and development of:energy resources, including natural gas, coal, clean coal, hydrogen, oil, oil shale, and oil sands;renewable energy resources, including geothermal, solar, hydrogen, wind, biomass, biofuel, and hydroelectric;nuclear power; andearth minerals;areas of energy-related academic research;specific areas of workforce development necessary for an evolving energy industry;the development of partnerships with national laboratories; anda proposed state budget for economic development and investment.In preparing the strategic energy plan, the office shall:consult with stakeholders, including representatives from:energy companies in the state;private and public institutions of higher education within the state conducting energy-related research; andother state agencies; anduse modeling and industry standard data to:define the energy services required by a growing economy;calculate energy needs;develop state strategy for energy transportation, including transmission lines, pipelines, and other infrastructure needs;optimize investments to meet energy needs at the least cost and least risk while meeting the policy outlined in this section;address state needs and investments through a prospective 30-year period, divided into five-year working plans; andupdate the plan at least every two years.The office shall report annually to the Public Utilities, Energy, and Technology Interim Committee on or before the October interim meeting describing:progress towards creation and implementation of the strategic energy plan;the plan’s compliance with the state energy policy; anda proposed budget for the office to continue development of the strategic energy plan.

(10) The director shall:annually review and propose updates to the state’s energy policy, as contained in Section 79-6-301;promote as the governor considers necessary:the development of cost-effective energy resources both renewable and nonrenewable; andeducational programs, including programs supporting conservation and energy efficiency measures;coordinate across state agencies to assure consistency with state energy policy, including:working with the State Energy Program to promote access to federal assistance for energy-related projects for state agencies and members of the public;working with the Division of Emergency Management to assist the governor in carrying out the governor’s energy emergency powers under Title 53, Chapter 2a, Part 10, Energy Emergency Powers of the Governor Act;participating in the annual review of the energy emergency plan and the maintenance of the energy emergency plan and a current list of contact persons required by Section 53-2a-902; andidentifying and proposing measures necessary to facilitate low-income consumers’ access to energy services;coordinate with the Division of Emergency Management ongoing activities designed to test an energy emergency plan to ensure coordination and information sharing among state agencies and political subdivisions in the state, public utilities and other energy suppliers, and other relevant public sector persons as required by Sections 53-2a-902, 53-2a-1004, 53-2a-1008, and 53-2a-1010;coordinate with requisite state agencies to study:the creation of a centralized state repository for energy-related information;methods for streamlining state review and approval processes for energy-related projects; andthe development of multistate energy transmission and transportation infrastructure;coordinate energy-related regulatory processes within the state;compile, and make available to the public, information about federal, state, and local approval requirements for energy-related projects;act as the state’s advocate before federal and local authorities for energy-related infrastructure projects or coordinate with the appropriate state agency; andhelp promote the Division of Facilities Construction and Management’s measures to improve energy efficiency in state buildings.

(11) The director has standing to testify on behalf of the governor at the Public Service Commission created in Section 54-1-1.

(12) The office shall include best practices in developing actionable goals and recommendations as part of preparing and updating every two years the strategic energy plan required under Subsection (9).

(13) The office shall maintain and regularly update a public website that provides an accessible dashboard of relevant metrics and reports and makes available the data used to create the strategic energy plan.

Amended by Chapter 140, 2025 General Session

79-6-402 - In-state generator need — Merchant electric transmission line.

(1) As used in this section: “Capacity allocation process” means the process outlined by the Federal Energy Regulatory Commission in its final policy statement dated January 17, 2013, “Allocation of Capacity on New Merchant Transmission Projects and New Cost-Based, Participant-Funded Transmission Projects, Priority Rights to New Participant-Funded Transmission,” 142 F.E.R.C. P61,038 (2013).”Certificate of in-state need” means a certificate issued by the office in accordance with this section identifying an in-state generator that meets the requirements and qualifications of this section.”Expression of need” means a document prepared and submitted to the office by an in-state merchant generator that describes or otherwise documents the transmission needs of the in-state merchant generator in conformance with the requirements of this section.”In-state merchant generator” means an electric power provider that generates power in Utah and does not provide service to retail customers within the boundaries of Utah.”Merchant electric transmission line” means a transmission line that does not provide electricity to retail customers within the boundaries of Utah.”Office” means the Office of Energy Development established in Section 79-6-401.”Open solicitation notice” means a document prepared and submitted to the office by a merchant electric transmission line regarding the commencement of the line’s open solicitation in compliance with 142 F.E.R.C. P61,038 (2013).

(2) As part of the capacity allocation process, a merchant electric transmission line shall file an open solicitation notice with the office containing a description of the merchant electric transmission line, including: the proposed capacity;the location of potential interconnection for in-state merchant generators;the planned date for commencement of construction; andthe planned commercial operations date.

(3) Upon receipt of the open solicitation notice, the office shall: publish the notice on the Utah Public Notice Website created under Section 63A-16-601;include in the notice contact information; andprovide the deadline date for submission of an expression of need.

(4) In response to the open solicitation notice published by the office, and no later than 30 days after publication of the notice, an in-state merchant generator may submit an expression of need to the office.An expression of need submitted under Subsection (4)(a) shall include:a description of the in-state merchant generator; anda schedule of transmission capacity requirement provided in megawatts, by point of receipt and point of delivery and by operating year.

(5) No later than 60 days after notice is published under Subsection (3), the office shall prepare a certificate of in-state need identifying the in-state merchant generators.

(6) Within five days of preparing the certificate of in-state need, the office shall: publish the certificate on the Utah Public Notice Website created under Section 63A-16-601; andprovide the certificate to the merchant electric transmission line for consideration in the capacity allocation process.

(7) The merchant electric transmission line shall: provide the Federal Energy Regulatory Commission with a copy of the certificate of in-state need; andcertify that the certificate is being provided to the Federal Energy Regulatory Commission in accordance with the requirements of this section, including a citation to this section.

(8) At the conclusion of the capacity allocation process, and unless prohibited by a contractual obligation of confidentiality, the merchant electric transmission line shall report to the office whether a merchant in-state generator reflected on the certificate of in-state need has entered into a transmission service agreement with the merchant electric transmission line.

(9) This section may not be interpreted to: create an obligation of a merchant electric transmission line to pay for, or construct any portion of, the transmission line on behalf of an in-state merchant generator; orpreempt, supersede, or otherwise conflict with Federal Energy Regulatory Commission rules and regulations applicable to a commercial transmission agreement, including agreements, or terms of agreements, as to cost, terms, transmission capacity, or key rates.

(10) Subsections (2) through (9) do not apply to a project entity as defined in Section 11-13-103.

Amended by Chapter 84, 2021 General Session

79-6-403 - Utah Energy Research Grant Program.

(1) There is created within the office the Utah Energy Research Grant Program.The purpose of the program is to encourage energy-related research within the state by providing matching grants to applicants that have received federal or private grants for specific ongoing energy-related research projects.

(2) An applicant that submits a proposal for a grant to the office shall include details in the proposal regarding:the specific ongoing energy-related research project;information about previously awarded federal and private grants for the specific ongoing energy-related research project, including: the amount of the previously awarded federal or private grant; andthe requirements to qualify for the previously awarded federal or private grant; andother information the office determines necessary to evaluate the proposal.When evaluating a proposal for a grant, the office shall consider:the grant amount requested, which may not exceed the amount of federal or private grants the applicant has been awarded;the extent to which the proposal advances the goals of the state energy policy and strategic energy plan;the extent to which any additional funding sources or existing or planned partnerships may benefit the proposal; andthe viability of the proposal.

(3) Subject to this Subsection (3), the office may, in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, make rules to establish: eligibility criteria for a grant;the form and process for submitting a proposal to the office for a grant;the process and criteria for determining the priority of applications received;the formula and method for determining a grant amount; andreporting requirements for a grant recipient.

(4) On or before October 31 of each year, the office shall provide a written report to the Public Utilities, Energy, and Technology Interim Committee regarding: the number of grants and grant amounts awarded under the program;data gathered under the program; andthe impact of the program on encouraging energy-related research within the state.

Enacted by Chapter 196, 2023 General Session

79-6-404 - Agency cooperation.

A state agency shall provide the office with any energy-related information requested by the office if the office’s request is consistent with other law.

Renumbered and Amended by Chapter 88, 2024 General Session

79-6-405 - Reports — Study.

(1) The director shall report annually to the Public Utilities, Energy, and Technology Interim Committee.

(2) The report required in Subsection (1) shall:summarize the status and development of the state’s energy resources;summarize the activities and accomplishments of the office;address the director’s activities under this part;recommend any energy-related executive or legislative action the director or office considers beneficial to the state, including updates to the state energy policy under Section 79-6-301; andaddress long-term energy planning required under Subsection 79-Ch79_6|79-6-401].

(3) The office shall study the impacts of the following on energy costs in the state:Title 59, Chapter 33, Wind or Solar Electric Generation Facility Capacity Tax; andPart 11, Energy Project Assessment.The director shall report the office’s findings regarding the study required under this Subsection (3) to the Public Utilities, Energy, and Technology Interim Committee by no later than the 2026 November interim meeting of the Public Utilities, Energy, and Technology Interim Committee.

Amended by Chapter 258, 2025 General Session

79-6-406 - Authority to study transportation, heating, and electricity-generating fuel storage reserve.

(1) As used in this section, “energy fuel” means transportation, heating, and electricity-generating fuels used in the state.

(2) The office shall conduct a study analyzing the potential benefits, risks, feasibility, and requirements of establishing a Utah transportation, heating, and electricity-generating fuel storage reserve.

(3) A study conducted under this section shall evaluate:current and predicted energy fuel consumption patterns and needs for the state;existing energy fuel infrastructure in the state, including refineries, powerplants, pipelines, railroads, transmission lines, and storage facilities;strengths and vulnerabilities in the state’s regional and national energy fuel supply chains;impacts on energy fuel availability from natural disasters, accidents, or other causes;feasibility of storage options to mitigate supply risks, including:optimal locations, including salt caverns located in the state;ownership structures;inventory management;strategies for prioritizing fuel supplies in emergency situations;accessibility protocols; andfunding mechanisms;opportunities to work with industry to serve strategic initiatives and critical needs; andeconomic modeling to analyze required state energy fuel reserve sizes and costs.

(4) In conducting a study under this section, the office may:contract with independent experts and consultants; andcoordinate with private industry and others with relevant expertise.

(5) The office shall present a status update on the study in a report to the Public Utilities, Energy, and Technology Interim Committee by November 30, 2024.

Enacted by Chapter 62, 2024 General Session

79-6-409 - Energy Education and Workforce Development Advisory Group established — Energy education and workforce development programs.

(1) As used in this section:“Advisory group” means the Energy Education and Workforce Development Advisory Group created in this section.”Core standards” means the science standards established by the state board as described in Section 53E-4-202.”Institution of higher education” means the same as that term is defined in Section 53H-1-101.

(2) Pursuant to Subsection 79-6-301(1)(h) and subject to legislative appropriations and other funding sources, the office shall establish the Energy Education and Workforce Development Advisory Group consisting of the following:the director of the office, or the director’s designee;the director of the Division of Oil, Gas, and Mining, or the director’s designee;the state superintendent of public instruction, or the superintendent’s designee from the State Board of Education elementary science team;the state superintendent of public instruction, or the superintendent’s designee from the State Board of Education secondary science team;the commissioner of higher education, or the commissioner’s designee from Talent Ready Utah;the president of the Utah Rural Schools Association, or the president’s designee;the president of the Utah Science Teaching Association, or the president’s designee;the chief executive officer of the Utah Municipal Power Agency or the Utah Associated Municipal Power Systems, or the chief executive officer’s designee;the executive director of the Utah Rural Electric Cooperative Association, or the executive director’s designee;the president of the Utah Petroleum Association, or the president’s designee; andthe president of the Utah Mining Association, or the president’s designee.

(3) In consultation with the advisory group, the office shall:develop and maintain energy education programs and curricula for kindergarten through grade 12 that:meet core standards;align with the state energy policy described in Section 79-6-301;are appropriate for each grade level; andare available to school districts, charter schools, and the public for voluntary use;develop and provide professional development training for educators that:promotes the use and appropriate deployment and teaching of the energy education programs and curricula developed under Subsection (3)(a);builds fluency for educators with the energy education programs and curricula;provides educators with opportunities and activities to receive renewal hours for professional licensure; andcomplies with state educator licensure requirements; anddevelop energy-related workforce development programs and facilitate collaboration among institutions of higher education, elementary and secondary schools, and industry.

(4) The office may:include in the curricula other elements of the state energy policy to advance a comprehensive understanding of energy policy;contract with third-party curriculum development organizations to create the curricula based on guidance from the office and the advisory committee; andprovide comment on the development of Utah science core standards.

(5) The professional development training provided to educators by the office may include:virtual or in-person classroom instruction;conferences;seminars; andsite visits.

(6) An energy-related workforce development program described in Subsection (3)(c) shall:create expanded, multidisciplinary programs or stackable credential programs;prepare students for energy industry jobs; andpromote policies consistent with the state energy policy described in Section 79-6-301.

(7) The advisory group’s duties may include providing recommendations to the office regarding the development and implementation of:energy education programs and curricula in grades kindergarten through grade 12;professional development trainings for educators;energy related workforce development programs; andany potential comments to be submitted on the development of science core standards for Utah public schools for the state.

(8) On or before October 1 of each year, the office shall submit a written report to the Public Utilities, Energy, and Technology Interim Committee describing activities, successes, challenges, and funding needs related to the programs and training established in this section.

Amended by Chapter 9, 2025 Special Session 1

Alternative Energy Development Tax Credit Act

79-6-501 - Title.

This part is known as the “Alternative Energy Development Tax Credit Act.”

Renumbered and Amended by Chapter 280, 2021 General Session

79-6-502 - Definitions.

As used in this part:

(1) “Alternative energy” means the same as that term is defined in Section 59-12-102.

(2) “Alternative energy entity” means a person that:conducts business within the state; andenters into an agreement with the office that qualifies the person to receive a tax credit.”Alternative energy entity” includes a pass-through entity taxpayer, as defined in Section 59-10-1402, of a person described in Subsection (2)(a).

(3) “Alternative energy project” means a project produced by an alternative energy entity if that project involves: a new or expanding operation in the state; andutility-scale alternative energy generation; orthe extraction of alternative fuels.

(4) “New incremental job within the state” means, with respect to an alternative energy entity, an employment position that: did not exist within the state before:the alternative energy entity entered into an agreement with the office in accordance with Section 79-6-503; andthe alternative energy project began;is not shifted from one location in the state to another location in the state; andis established to the satisfaction of the office, including by amounts paid or withheld by the alternative energy entity under Title 59, Chapter 10, Individual Income Tax Act.

(5) “New state revenues” means an increased amount of tax revenues generated as a result of an alternative energy project by an alternative energy entity or a new incremental job within the state under the following: Title 59, Chapter 7, Corporate Franchise and Income Taxes;Title 59, Chapter 10, Individual Income Tax Act; andTitle 59, Chapter 12, Sales and Use Tax Act.

(6) “Office” means the Office of Energy Development created in Section 79-6-401.

(7) “Tax credit” means a tax credit under Section 59-7-614.7 or 59-10-1029.

(8) “Tax credit applicant” means an alternative energy entity that applies to the office to receive a tax credit certificate under this part.

(9) “Tax credit certificate” means a certificate issued by the office that: lists the name of the tax credit certificate recipient;lists the tax credit certificate recipient’s taxpayer identification number;lists the amount of the tax credit certificate recipient’s tax credits authorized under this part for a taxable year; andincludes other information as determined by the office.

(10) “Tax credit certificate recipient” means an alternative energy entity that receives a tax credit certificate for a tax credit in accordance with this part.

Renumbered and Amended by Chapter 280, 2021 General Session

79-6-503 - Tax credits.

(1) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the office shall make rules establishing standards an alternative energy entity shall meet to qualify for a tax credit.Before the office enters into an agreement described in Subsection (2) with an alternative energy entity, the office, in consultation with other state agencies as necessary, shall certify:that the alternative energy entity plans to produce in the state at least: two megawatts of electricity;1,000 barrels per day if the alternative energy project is a crude oil equivalent production; or250 barrels per day if the alternative energy project is a biomass energy fuel production;that the alternative energy project will generate new state revenues;the economic life of the alternative energy project produced by the alternative energy entity;that the alternative energy entity meets the requirements of Section 79-6-504; andthat the alternative energy entity has received a certificate of existence from the Division of Corporations and Commercial Code.

(2) If an alternative energy entity meets the requirements of this part to receive a tax credit, the office shall enter into an agreement with the alternative energy entity to authorize the tax credit in accordance with Subsection (3).

(3) Subject to Subsection (3)(b), if the office expects that the time from the commencement of construction until the end of the economic life of the alternative energy project is 20 years or more:the office shall grant a tax credit for the lesser of: the economic life of the alternative energy project; or20 years; andthe tax credit is equal to 75% of new state revenues generated by the alternative energy project.For a taxable year, a tax credit under this section may not exceed the new state revenues generated by an alternative energy project during that taxable year.

(4) An alternative energy entity that seeks to receive a tax credit or has entered into an agreement described in Subsection (2) with the office shall: annually file a report with the office showing the new state revenues generated by the alternative energy project during the taxable year for which the alternative energy entity seeks to receive a tax credit under Section 59-7-614.7 or 59-10-1029;subject to Subsection (5), annually file a report with the office prepared by an independent certified public accountant verifying the new state revenues described in Subsection (4)(a);subject to Subsection (5), file a report with the office at least every four years prepared by an independent auditor auditing the new state revenues described in Subsection (4)(a);provide the office with information required by the office to certify the economic life of the alternative energy project produced by the alternative energy entity, which may include a power purchase agreement, a lease, or a permit; andretain records supporting a claim for a tax credit for at least four years after the alternative energy entity claims a tax credit under Section 59-7-614.7 or 59-10-1029.

(5) An alternative energy entity for which a report is prepared under Subsection (4)(b) or (c) shall pay the costs of preparing the report.

(6) The office shall annually certify the new state revenues generated by an alternative energy project for a taxable year for which an alternative energy entity seeks to receive a tax credit under Section 59-7-614.7 or 59-10-1029.

Amended by Chapter 64, 2021 General Session

79-6-504 - Qualifications for tax credit — Procedure.

(1) The office shall certify an alternative energy entity’s eligibility for a tax credit as provided in this section.

(2) A tax credit applicant shall provide the office with: an application for a tax credit certificate;documentation that the tax credit applicant meets the standards and requirements described in Section 79-6-503 to the satisfaction of the office for the taxable year for which the tax credit applicant seeks to claim a tax credit; anddocumentation that expressly directs and authorizes the State Tax Commission to disclose to the office the tax credit applicant’s returns and other information concerning the tax credit applicant that would otherwise be subject to confidentiality under Section 59-1-403 or Section 6103, Internal Revenue Code.

(3) The office shall submit the documentation described in Subsection (2)(c) to the State Tax Commission.Upon receipt of the documentation described in Subsection (2)(c), the State Tax Commission shall provide the office with the documentation described in Subsection (2)(c) requested by the office that the tax credit applicant directed and authorized the State Tax Commission to provide to the office.

(4) If, after the office reviews the documentation described in Subsections (2) and (3), the office determines that the documentation supporting the tax credit applicant’s claim for a tax credit is not substantially accurate, the office shall: deny the tax credit; orinform the tax credit applicant that the documentation supporting the tax credit applicant’s claim for a tax credit was inadequate and ask the tax credit applicant to submit new documentation.

(5) If, after the office reviews the documentation described in Subsections (2) and (3), the office determines that the documentation supporting the tax credit applicant’s claim for a tax credit is substantially accurate, the office shall, on the basis of that documentation: enter into the agreement described in Section 79-6-503;issue a tax credit certificate to the tax credit applicant; andprovide a duplicate copy of the tax credit certificate described in Subsection (5)(b) to the State Tax Commission.

(6) An alternative energy entity may not claim a tax credit under this part unless the alternative energy entity is a tax credit certificate recipient.

(7) A tax credit certificate recipient that claims a tax credit shall retain the tax credit certificate in accordance with Subsection 79-6-503(4).

Renumbered and Amended by Chapter 280, 2021 General Session

79-6-505 - Report to the Legislature.

The office shall annually provide an electronic report to the Public Utilities, Energy, and Technology Interim Committee describing:

(1) the office’s success in attracting alternative energy projects to the state and the resulting increase in new state revenues under this part;

(2) the amount of tax credits the office has granted or will grant and the time period during which the tax credits have been or will be granted; and

(3) the economic impact on the state by comparing new state revenues to tax credits that have been or will be granted under this part.

Amended by Chapter 68, 2022 General Session

High Cost Infrastructure Development Tax Credit Act

79-6-601 - Title.

This part is known as the “High Cost Infrastructure Development Tax Credit Act.”

Renumbered and Amended by Chapter 280, 2021 General Session

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) “District energy system” means equipment and facilities that:use one or more thermal energy sources to provide:space heating;hot water; orspace cooling; anddeliver services through a distribution system.”District energy system” includes:plants;equipment;distribution piping;apparatus; andother facilities used to provide space heating, hot water, or space cooling.

(3) “Energy delivery project” means a project that is designed to:increase the capacity for the delivery of energy to a user of energy inside or outside the state;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;increase the production and delivery of geothermal energy through horizontal drilling to create injection and production wells; orincrease the capacity for recovery of thermal energy for a heating or cooling system through a district energy system.”Energy delivery project” includes:a hydroelectric energy storage system;a utility-scale battery storage system;a nuclear power generation system; ora district energy system.

(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: for an energy delivery project, fuel standard compliance project, mineral processing project, or underground mine infrastructure project, a project:that expands or creates new industrial, mining, manufacturing, or agriculture activity in the state, not including a retail business;that involves new investment of at least $50,000,000madebyanexistingindustrial,mining,manufacturing,oragricultureentitylocatedwithinacountyofthefirstorsecondclass;thatinvolvesnewinvestmentofatleast$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;that involves new investment of at least $10,000,000fortheconstructionofaplantorfacilityforthermalenergyproductionofheatingorcoolingusedinadistrictenergysystem;orfortheconstructionofaplantorotherfacilityforthestorageorproductionoffuelusedfortransportation,electricitygeneration,orindustrialuse;thatrequiresorisdirectlyfacilitatedbyinfrastructureconstruction;andforwhichthecostofinfrastructureconstructiontotheentitycreatingtheprojectisgreaterthan:10$10,000,000; andfor an emissions reduction project, water purification project, or water resource forecasting project, a project:that involves:new investment of at least $50,000,000madebyanexistingindustrial,mining,manufacturing,oragricultureentitylocatedwithinacountyofthefirstorsecondclass;ornewinvestmentofatleast$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; andthat requires or is directly facilitated by infrastructure construction.

(7) “Infrastructure” means:an energy delivery project;a railroad as defined in Section 54-2-1;a fuel standard compliance project;a road improvement project;a water self-supply project;a water removal system project;a solution-mined subsurface salt cavern;a project that is designed to:increase the capacity for water delivery to a water user in the state; orincrease the capability of an existing water delivery system or related facility to deliver water to a water user in the state;an underground mine infrastructure project;an emissions reduction project;a mineral processing project;a district energy system project;a water purification project; ora water resource forecasting project.

(8) “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.”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:Subsection 59-Ch59_24|59-24-103.5](e);Title 59, Chapter 5, Part 1, Oil and Gas Severance Tax;Title 59, Chapter 5, Part 2, Mining Severance Tax;Title 59, Chapter 7, Corporate Franchise and Income Taxes;Title 59, Chapter 10, Individual Income Tax Act; andTitle 59, Chapter 12, Sales and Use Tax Act.

(10) “Mineral processing project” means a project that is designed to: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;calcine limestone or manufacture cement;process, refine, or otherwise beneficiate chloride compounds, salts, potash, gypsum, sulfur or sulfuric acid, ammonium nitrate, phosphate, or uintaite; orconvert 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:lists the name of the infrastructure cost-burdened entity;lists the infrastructure cost-burdened entity’s taxpayer identification number;lists, for a taxable year, the amount of the tax credit authorized for the infrastructure cost-burdened entity under this part; andincludes other information as determined by the office.

(14) “Underground mine infrastructure project” means a project that:is designed to create permanent underground infrastructure to facilitate underground mining operations; andservices multiple levels or areas of an underground mine or multiple underground mines.”Underground mine infrastructure project” includes:an underground access or a haulage road, entry, ramp, or decline;a vertical or incline mine shaft;a ventilation shaft or an air course; ora 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:located at a distance of not less than 2,000 feet below the surface;associated with existing mineral operations; orassociated 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.

Amended by Chapter 159, 2025 General Session

79-6-603 - Tax credit — Amount — Eligibility — Reporting.

(1) Before the office enters into an agreement described in Subsection (3) with an applicant regarding a project, the office, in consultation with the Utah Energy Infrastructure Board created in Section 79-6-902, and other state agencies as necessary, shall, in accordance with the procedures described in Section 79-6-604, certify:that the project meets the definition of a high cost infrastructure project under this part;that the high cost infrastructure project will generate infrastructure-related revenue;the economic life of the high cost infrastructure project; andthat the applicant has received a certificate of existence from the Division of Corporations and Commercial Code.Except as provided in Subsection (1)(b)(ii), the office shall consider a project to be a new project, for purposes of determining whether a project meets the definition of a high cost infrastructure project, if the project began no earlier than the taxable year before the year in which the applicant submits an application or a preliminary application for a tax credit.For the taxable year beginning on or after January 1, 2025, and beginning before January 1, 2026, the office may consider a project to be a new project if the applicant applies for a tax credit in accordance with Subsection (5)(a).

(2) Before the office enters into an agreement described in Subsection (3) with an applicant regarding a project, the Utah Energy Infrastructure Board shall evaluate the project’s net benefit to the state, including:whether the project is likely to increase the property tax revenue for the municipality or county where the project will be located;whether the project would contribute to the economy of the state and the municipality, tribe, or county where the project will be located;whether the project would provide new infrastructure for an area where the type of infrastructure the project would create is underdeveloped;whether the project is supported by a business case for providing the revenue necessary to finance the construction and operation of the project;whether the project would have a positive environmental impact on the state;whether the project promotes responsible energy development;whether the project would upgrade or improve an existing entity in order to ensure the entity’s continued operation and economic viability;whether the project is less likely to be completed without a tax credit issued to the applicant under this part; andother relevant factors that the board specifies in the board’s evaluation.Before the office enters into an agreement described in Subsection (3) with an applicant regarding an energy delivery project, in addition to the criteria described in Subsection (2)(a) the Utah Energy Infrastructure Board shall determine that the project:is strategically situated to maximize connections to an energy source project located in the state that is:existing;under construction;planned; orforeseeable;is supported by a project plan related to:engineering;environmental issues;energy production;load or other capacity; andany other issue related to the building and operation of energy delivery infrastructure; andcomplies with the regulations of the following regarding the building of energy delivery infrastructure:the Federal Energy Regulatory Commission;the North American Electric Reliability Council; andthe Public Service Commission of Utah.The Utah Energy Infrastructure Board may recommend that the office deny an applicant a tax credit if, as determined by the Utah Energy Infrastructure Board:the project does not sufficiently benefit the state based on the criteria described in Subsection (2)(a); orfor an energy delivery project, the project does not satisfy the conditions described in Subsection (2)(b).

(3) Subject to the procedures described in Section 79-6-604, if an applicant meets the requirements of Subsection (1) to receive a tax credit, and the applicant’s project receives a favorable recommendation from the Utah Energy Infrastructure Board under Subsection (2), the office shall enter into an agreement with the applicant to authorize the tax credit in accordance with this part.

(4) The office shall grant a tax credit to an infrastructure cost-burdened entity, for a high cost infrastructure project, under an agreement described in Subsection (3):for the lesser of:the economic life of the high cost infrastructure project;20 years; ora time period, the first taxable year of which is the taxable year when the construction of the high cost infrastructure project begins and the last taxable year of which is the taxable year in which the infrastructure cost-burdened entity has recovered, through the tax credit, an amount equal to:50% of the cost of the infrastructure construction associated with the high cost infrastructure project; orif the high cost infrastructure project is a fuel standard compliance project, 30% of the cost of the infrastructure construction associated with the high cost infrastructure project;except as provided in Subsections (4)(a) and (d), in a total amount equal to 30% of the high cost infrastructure project’s total infrastructure-related revenue over the time period described in Subsection (4)(a);for a taxable year, in an amount that does not exceed the high cost infrastructure project’s infrastructure-related revenue during that taxable year;that the infrastructure cost-burdened entity may use against severance tax or income tax, but not both; andif the high cost infrastructure project is a fuel standard compliance project, in a total amount that is:determined by the Utah Energy Infrastructure Board, based on:the applicant’s likelihood of completing the high cost infrastructure project without a tax credit; andhow soon the applicant plans to complete the high cost infrastructure project; andequal to or less than 30% of the high cost infrastructure project’s total infrastructure-related revenue over the time period described in Subsection (4)(a).

(5) For the taxable year beginning on or after January 1, 2025, and beginning before January 1, 2026, the office shall grant a tax credit certificate to an infrastructure cost-burdened entity:that applies for a tax credit described in Section 59-5-305;that meets the requirements of Subsection (4) except that the first taxable year for which the infrastructure cost-burdened entity claims a tax credit is the taxable year beginning on or after January 1, 2024, and beginning before January 1, 2025; andin an amount that does not exceed the high cost infrastructure project’s infrastructure-related revenue during the taxable year beginning on or after January 1, 2024, and beginning before January 1, 2025.The tax credit described in Subsection (5)(a) is in addition to a tax credit for which the infrastructure cost-burdened entity may claim against income tax or severance tax for the taxable year beginning on or after January 1, 2025, and beginning before January 1, 2026.

(6) An infrastructure cost-burdened entity shall, for each taxable year:file a report with the office showing the high cost infrastructure project’s infrastructure-related revenue during the taxable year;subject to Subsection (8), file a report with the office that is prepared by an independent certified public accountant that verifies the infrastructure-related revenue described in Subsection (6)(a); andprovide the office with information required by the office to certify the economic life of the high cost infrastructure project.

(7) An infrastructure cost-burdened entity shall retain records supporting a claim for a tax credit for the same period of time during which a person is required to keep books and records under Section 59-1-1406.

(8) An infrastructure cost-burdened entity for which a report is prepared under Subsection (6)(b) shall pay the costs of preparing the report.

(9) The office shall certify, for each taxable year, the infrastructure-related revenue generated by an infrastructure cost-burdened entity.

Amended by Chapter 159, 2025 General Session

79-6-604 - Tax credit — Application procedure.

(1) An applicant shall provide the office with:an application for a tax credit certificate;documentation that the applicant meets the requirements described in Subsection 79-6-603(1), to the satisfaction of the office, for the taxable year for which the applicant seeks to claim a tax credit; anddocumentation that expressly directs and authorizes the State Tax Commission to disclose to the office the applicant’s returns and other information concerning the applicant that would otherwise be subject to confidentiality under Section 59-1-403 or Section 6103, Internal Revenue Code.

(2) The office shall, for an applicant, submit the documentation described in Subsection (1)(c) to the State Tax Commission.Upon receipt of the documentation described in Subsection (1)(c), the State Tax Commission shall provide the office with the documentation described in Subsection (1)(c).

(3) If, after the office reviews the documentation from the State Tax Commission under Subsection (2)(b) and the information the applicant submits to the office under Section 79-6-603, the office, in consultation with the Utah Energy Infrastructure Board created in Section 79-6-902, determines that the applicant is not eligible for the tax credit under Section 79-6-603, or that the applicant’s documentation is inadequate, the office shall:deny the tax credit; orinform the applicant that the documentation supporting the applicant’s claim for a tax credit was inadequate and request that the applicant supplement the applicant’s documentation.

(4) Except as provided in Subsection (5), if, after the office reviews the documentation described in Subsection (2)(b) and the information described in Subsection 79-6-603(5), the office, in consultation with the Utah Energy Infrastructure Board created in Section 79-6-902, determines that the documentation supporting an applicant’s claim for a tax credit adequately demonstrates that the applicant is eligible for the tax credit under Section 79-6-603, the office shall, on the basis of the documentation:enter, with the applicant, into the agreement described in Subsection 79-6-603(3);issue a tax credit certificate to the applicant; andprovide a duplicate copy of the tax credit certificate described in Subsection (4)(b) to the State Tax Commission.

(5) The office may deny an applicant a tax credit based on the recommendation of the Utah Energy Infrastructure Board, as provided in Subsection 79-6-603(2).

(6) An infrastructure cost-burdened entity may not claim a tax credit unless the infrastructure cost-burdened entity receives a tax credit certificate from the office.

(7) An infrastructure cost-burdened entity that claims a tax credit shall retain the tax credit certificate in accordance with Subsection 79-6-603(6).

(8) Except for the information that is necessary for the office to disclose in order to make the report described in Section 79-6-605, the office shall treat a document an applicant or infrastructure cost-burdened entity provides to the office as a protected record under Section 63G-2-305.

Amended by Chapter 159, 2025 General Session

79-6-605 - Report to the Legislature.

The office shall report annually to the Public Utilities, Energy, and Technology Interim Committee describing:

(1) the office’s success in attracting high cost infrastructure projects to the state and the resulting increase in infrastructure-related revenue under this part;

(2) the amount of tax credits the office has granted or will grant and the time period during which the tax credits have been or will be granted; and

(3) the economic impact on the state by comparing infrastructure-related revenue to tax credits that have been or will be granted under this part.

Amended by Chapter 68, 2022 General Session

79-6-606 - Administrative rules.

The office may establish, by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act , requirements and procedures for the implementation of this part.

Renumbered and Amended by Chapter 280, 2021 General Session

Refiner Gasoline Sulfur Standard Sales and Use Tax Exemption Reporting

79-6-701 - Definitions.

As used in this part:

(1) “Blending stock,” “blendstock,” or “component” means any liquid compound that is blended with other liquid compounds to produce gasoline.

(2) “Refiner” means any person who owns, leases, operates, controls, or supervises a refinery.

(3) “Refiner tax exemption certification” means a certification issued by the office in accordance with Section 79-6-702.

(4) “Refinery” means a facility where gasoline or diesel fuel is produced, including a facility at which blendstocks are combined to produce gasoline or diesel fuel, or at which blendstock is added to gasoline or diesel fuel.

Renumbered and Amended by Chapter 280, 2021 General Session

79-6-702 - Refiner gasoline standard reporting — Office of Energy Development certification of sales and use tax exemption eligibility.

(1) A refiner that seeks to be eligible for a sales and use tax exemption under Subsection 59-12-104(86) on or after July 1, 2021, shall annually report to the office whether the refiner’s facility that is located within the state:had an average gasoline sulfur level of 10 parts per million (ppm) or less using the formulas prescribed in 40 C.F.R. Sec. 80.1603, excluding the offset for credit use and transfer as prescribed in 40 C.F.R. Sec. 80.1616, during the previous calendar year; orfor an annual report covering a period before January 1, 2023, if a refiner’s facility did not have an average gasoline sulfur level described in Subsection (1)(a)(i) during the previous calendar year, the progress the refiner made during the previous calendar year toward complying with the average gasoline sulfur level described in Subsection (1)(a)(i).Fuels for which a final destination outside Utah can be demonstrated or that are not subject to the standards and requirements of 40 C.F.R. Sec. 80.1603 as specified in 40 C.F.R. Sec. 80.1601 are not subject to the reporting provisions under Subsection (1)(a).

(2) The office shall issue a refiner tax exemption certification to a refiner on a form prescribed by the State Tax Commission: beginning July 1, 2021, and ending December 31, 2022, if:the refiner’s refinery that is located within the state had an average gasoline sulfur level described in Subsection (1)(a)(i) during the previous calendar year; oron or before July 1, 2021, the refiner certifies in writing to the office that the refiner’s refinery that is located within the state will have an average gasoline sulfur level described in Subsection (1)(a)(i) after December 31, 2024; andthe office determines that the refiner made satisfactory progress during the previous calendar year toward satisfying the refiner’s certification described in Subsection (2)(a)(ii)(A); orafter December 31, 2022, if the refiner’s refinery that is located within the state had an average gasoline sulfur level described in Subsection (1)(a)(i) during the previous calendar year.

(3) Within 30 days after the day on which the office receives a complete annual report described in Subsection (1)(a), the office shall:issue a refiner tax exemption certification to the refiner; ornotify the refiner in writing that the office has determined the refiner does not qualify for a refiner tax exemption certification and the basis for the office’s determination.A refiner tax exemption certification is valid for one year after the day on which the office issues the refiner tax exemption certification.

(4) The office: shall accept a copy of a report submitted by a refiner to the Environmental Protection Agency under 40 C.F.R. Sec. 80.1652 as sufficient evidence of the refiner’s average gasoline sulfur level; ormay establish another reporting mechanism through rules made under Subsection (5).

(5) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the office may make rules to implement this section.

Renumbered and Amended by Chapter 280, 2021 General Session

Utah Energy Infrastructure Board Act

79-6-901 - Definitions.

As used in this part:

(1) “Application” means an application for a tax credit under Title 79, Chapter 6, Part 6, High Cost Infrastructure Development Tax Credit Act.

(2) “Board” means the Utah Energy Infrastructure Board created in Section 79-6-902.

(3) “Electric interlocal entity” means the same as that term is defined in Section 11-13-103.

(4) “Fuel standard compliance project” means the same as that term is defined in Section 79-6-602.

(5) “Office” means the Office of Energy Development created in Section 79-6-401.

(6) “Tax credit” means the same as that term is defined in Section 79-6-602.

Amended by Chapter 88, 2024 General Session

79-6-902 - Utah Energy Infrastructure Board.

(1) There is created within the office the Utah Energy Infrastructure Board that consists of nine members as follows:subject to Subsection (2), members appointed by the governor:the director of the Office of Energy Development, who shall serve as chair of the board;one member from the Governor’s Office of Economic Opportunity;one member from a public utility or electric interlocal entity that operates electric transmission facilities within the state;one member who resides within a county of the third, fourth, fifth, or sixth class, as classified under Section 17-60-104, with relevant experience in an energy or extraction industry;one member currently serving as county commissioner of a county of the third, fourth, fifth, or sixth class, as classified under Section 17-60-104; andtwo members of the general public with relevant industry experience;one member appointed jointly by the Utah Farm Bureau Federation, the Utah Manufacturer’s Association, the Utah Mining Association, and the Utah Petroleum Association; andthe director of the School and Institutional Trust Lands Administration created in Section 53C-1-201.

(2) The governor shall consult with the president of the Senate and the speaker of the House of Representatives in appointing the members described in Subsections (1)(a)(iii) through (vi).

(3) The term of an appointed board member is four years.Notwithstanding Subsection (3)(a), the governor shall, at the time of appointment or reappointment, adjust the length of terms to ensure that the terms of board members are staggered so that approximately half of the board is appointed every two years.The governor may remove a member of the board for cause.The governor shall fill a vacancy in the board in the same manner under this section as the appointment of the member whose vacancy is being filled.An individual appointed to fill a vacancy shall serve the remaining unexpired term of the member whose vacancy the individual is filling.A board member shall serve until a successor is appointed and qualified.

(4) Five members of the board constitute a quorum for conducting board business.A majority vote of the quorum present is required for an action to be taken by the board.

(5) The board shall meet as needed to review an application.

(6) A member may not receive compensation or benefits for the member’s service, but may receive per diem and travel expenses in accordance with:Section 63A-3-106;Section 63A-3-107; andrules made by the Division of Finance pursuant to Sections 63A-3-106 and 63A-3-107.

Amended by Chapter 17, 2025 Special Session 1

79-6-903 - Powers and duties of the board — Oversight — Staff support.

(1) Subject to the provisions of this part and in accordance with Title 79, Chapter 6, Part 6, High Cost Infrastructure Development Tax Credit Act, the board shall: evaluate each application using the criteria described in Subsections 79-6-603(1) and (2);make recommendations to the office regarding each application; andfor an application related to a fuel standard compliance project, determine the amount of the authorized tax credit using the criteria described in Subsection 79-6-603(4).

(2) The office shall: oversee the board’s performance;provide the board office space, furnishings, and supplies; andprovide the board staff support.

(3) With the consent of the attorney general, the office may retain legal counsel to advise the board on matters relating to the board’s operations.

Enacted by Chapter 44, 2022 General Session

Utah San Rafael State Energy Lab

79-6-1001 - Definitions.

As used in this part:

(1) “Board” means the Utah Energy Research Board established in Section 79-6-1003.

(2) “Council” means the Utah Energy Council established in Section 79-6-1301.

(3) “Director” means the director of the Office of Energy Development as defined in Section 79-6-401.

(4) “Fund” means the Utah Energy Research Fund established in Section 79-6-1002.

(5) “Institute” means the Utah Advanced Nuclear and Energy Institute established as a partnership between the state, the Idaho National Laboratory, and public and private institutions of higher education located in the state.

(6) “Lab” means the Utah San Rafael Energy Lab established in Section 79-6-1004.

(7) “Lab director” means the director appointed under Section 79-6-1004 to oversee the lab.

(8) “Project proposal” means a formal written submission to the board applying for approval of a specific research initiative conducted at the lab.

(9) “Office” means the Office of Energy Development as defined in Section 79-6-401.

Amended by Chapter 375, 2025 General Session

79-6-1002 - Utah Energy Research Fund.

(1) There is created an enterprise fund known as the “Utah Energy Research Fund.”

(2) The fund consists of:grants, entitlements, and other money received by the office from the federal government;revenues from users of the Utah San Rafael Energy Lab, deposited into the fund under Subsection 79-Ch79_6|79-6-1004](d);transfers, grants, bequests, and money made available from any source to implement this part; andmoney appropriated to the fund by the Legislature.

(3) The money in the fund shall be invested by the state treasurer according to the procedures and requirements of Title 51, Chapter 7, State Money Management Act, except that all interest or other earnings derived from money in the fund shall be deposited in the fund.

(4) As funding allows, the office may use money in the fund for:administering the Utah Energy Research Grant Program created in Section 79-6-403; andfunding the ongoing operation of the Utah San Rafael Energy Lab, including compensation for lab staff.

Enacted by Chapter 496, 2024 General Session

79-6-1003 - Utah Energy Research Board — Duties — Expenses.

(1) There is established in the office the Utah Energy Research Board that is composed of the following voting board members:the director, or the director’s designee, who shall serve as the chair of the board;the president, or the president’s designee, of each public and private university in the state that is classified as a Research 1 institution by the Carnegie Classification of Institutions of Higher Education;the commissioner of higher education, as described in Section 53H-1-302, or the commissioner’s designee;one member, who is not a legislator, with experience in the non-regulated energy industry appointed by the speaker of the House of Representatives;one member, who is not a legislator, with experience in energy commercialization appointed by the president of the Senate;one member appointed by the governor who resides in a county of the third, fourth, fifth, or sixth class as classified under Section 17-60-104;one member appointed by the director representing the Idaho National Laboratory; andtwo members appointed by the director with relevant expertise in energy research and development.

(2) The term of an appointed board member is four years.Notwithstanding Subsection (2)(a), the person making an appointment shall, at the time of appointment or reappointment, adjust the length of board member terms to ensure the terms of board members are staggered so that approximately half of the board is constituted of new members every two years.The person who appoints a member under Subsection (1) may remove an appointee who was appointed by the person for cause.The person who appoints a member under Subsection (1) shall fill a vacancy on the board in the same manner as provided in Subsection (1).An individual appointed to fill a vacancy shall serve the remaining unexpired term.Unless removed for cause under Subsection (2)(c) a board member shall serve until a successor is appointed.

(3) A majority of the board constitutes a quorum.A majority vote of the quorum is required for an action to be taken by the board.

(4) The board shall:oversee and supervise the management of:the lab; andthe institute;appoint directors for the lab and institute, who shall serve at the pleasure of the board;establish reasonable compensation for:the lab director; andthe institute director;develop and implement:bylaws to govern the lab; andbylaws to govern the institute;establish policies for:joint appointments between the Idaho National Laboratory and public and private institutions of higher education;research partnerships between institutions;technology commercialization; andworkforce development initiatives;foster innovation and support technological development in the energy sector by collaborating with industry leaders, researchers, entrepreneurs, investors, and other stakeholders;identify areas of economic growth and workforce development opportunities related to emerging energy technologies and solutions;seek potential investors and partners from the technology, finance, and business sectors to support innovative research and early-stage ventures focused on developing commercially viable energy technologies in the state;develop evaluation criteria for approving project proposals, with input from the lab director, including:alignment with state energy policy priorities;commercialization potential;economic impact; andother relevant factors as determined by the board;approve providing matching grants to applicants under the Utah Energy Research Grant Program created in Section 79-6-403; andmake recommendations to the council regarding funding allocations for:research projects;facility operations;workforce development programs; andtechnology commercialization initiatives;administer the funds allocated by the council to the board;coordinate energy research activities between:the lab;the institute;public and private institutions of higher education;the Idaho National Laboratory; andindustry partners;review and approve annual reports from the lab and institute directors;report annually to:the governor;the Public Utilities, Energy, and Technology Interim Committee; andthe Education Interim Committee;engage with industry partners to:identify research needs;develop workforce programs;commercialize technologies; andsecure additional funding sources;coordinate with federal agencies on:research initiatives;grant opportunities; andregulatory compliance;provide quarterly reports to the Utah Energy Council regarding:ongoing research projects and the research projects’ alignment with state energy goals;potential commercialization opportunities;emerging technologies and the potential impact on the state’s energy landscape; andrecommendations for policy changes or initiatives to support energy innovation; andcoordinate with the council on:strategic planning for statewide energy research initiatives;identifying priority research areas that align with state energy policy;developing frameworks for public-private partnerships in energy research; andestablishing metrics for measuring research outcomes and impact.

(5) A member may not receive compensation or benefits for the member’s service, but may receive per diem and travel expenses in accordance with:Section 63A-3-106;Section 63A-3-107; andrules made by the Division of Finance pursuant to Sections 63A-3-106 and 63A-3-107.

(6) The board shall meet at least quarterly and may hold additional meetings as necessary to review project proposals.

Amended by Chapter 17, 2025 Special Session 1

79-6-1004 - Utah San Rafael Energy Lab established — Lab director.

(1) There is established within the office a program and facility known as the Utah San Rafael Energy Lab to facilitate innovative energy research and development projects.

(2) The lab shall:receive and evaluate project proposals;submit recommendations to the board for approval regarding specific project proposals based on the lab’s evaluation;conduct innovative energy technology research and development projects that have commercialization potential and support the state’s energy policy goals;enter into financial contracts with entities seeking to use the lab, with revenues deposited into the Utah Energy Research Fund created in Section 79-6-1002;assess the viability of emerging energy solutions for deployment within the state, considering:cost-effectiveness;dispatchability;sustainability;reliability; andenvironmental impact;provide analysis and recommendations to policymakers regarding energy system planning, infrastructure needs, and the value of different energy initiatives being considered within the state; andcollaborate with universities, industry partners, entrepreneurs, community representatives, and other research entities.

Amended by Chapter 375, 2025 General Session

79-6-1005 - Project proposal solicitation and approval process.

(1) The lab shall have an open project proposal solicitation process to facilitate innovative energy research and development conducted at the lab that is aligned with the state energy policy.

(2) The lab shall receive project proposals from:academics and research faculty from universities and research institutions;private sector companies, including technology entrepreneurs and small businesses;government agencies and national laboratories;nonprofit organizations and foundations engaged in energy research; andother qualified research teams.

(3) The lab shall evaluate the feasibility, merit, and potential impact of project proposals received under Subsection (2).After evaluating the project proposals, the lab shall submit recommendations to the board for specific project proposals that the lab advises approving, based on the evaluation criteria.

(4) The board shall review the project proposals and recommendations submitted by the lab and make final decisions on approval of project proposals for funding and implementation, based on criteria developed by the board under Section 79-6-1003.

(5) The office may make rules, in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, establishing detailed project proposal evaluation criteria and selection procedures.

Enacted by Chapter 496, 2024 General Session

Utah Energy Council

79-6-1101 - Utah Energy Council — Creation and purpose.

(1) As used in this part:“Council” means the Utah Energy Council created in Section 79-6-1101.”Decommissioned asset” means a project entity asset that:has been removed from active service by a project entity;has been transferred to the council, including:transfer of legal title; andtransfer of operational responsibility; andwill be operated and managed under the direction of the council.”Operator” means an entity that:manages and maintains the daily operations of an electrical generation facility;employs the workforce necessary to run the facility;procures fuel and other necessary supplies;ensures compliance with all applicable regulations; andmaintains the reliability of power generation.”Project entity” means the same as that term is defined in Section 11-13-103.”Project entity asset” means the same as that term is defined in Section 11-13-318.

(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:power plants;transmission lines;energy storage facilities; andrelated infrastructure.

Enacted by Chapter 120, 2025 General Session

79-6-1102 - Council composition — Appointment — Terms — Staffing.

(1) The council shall be composed of:the director or the director’s designee, who shall serve as chair of the council;two individuals appointed by the governor;one individual appointed by the president of the Senate; andone individual appointed by the speaker of the House of Representatives.

(2) Except as provided in Subsection (2)(b), a council member appointed under Subsection (1):shall serve a four-year term;may be removed by the appointing authority;may be reappointed; andcontinues to serve until the member’s successor is appointed and qualified.Initial terms for the appointed council members shall be staggered as follows:one member appointed by the governor under Subsection (1)(b) shall serve a two-year term;one member appointed by the governor under Subsection (1)(b) shall serve a three-year term;the member appointed by the president of the Senate under Subsection (1)(c) shall serve a four-year term; andthe member appointed by the speaker of the House of Representatives under Subsection (1)(d) shall serve a two-year term.

(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 majority of council members constitutes a quorum for conducting council business.A majority vote of the quorum present is required for any action taken by the council.

(5) The council shall meet:at least quarterly; andat the call of the chair or a majority of the council members.

(6) 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:Section 63A-3-106;Section 63A-3-107; andrules made by the Division of Finance under Sections 63A-3-106 and 63A-3-107.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) The office shall provide staff support to the council.

Enacted by Chapter 120, 2025 General Session

79-6-1103 - Council powers and duties.

(1) The council shall:coordinate and facilitate electrical energy project development, including:site identification and permitting;early site preparation work;infrastructure improvements;project financing assistance; andstakeholder coordination;assess and facilitate electrical energy infrastructure development by:evaluating infrastructure needs and opportunities;coordinating with transmission and pipeline developers;supporting utility planning efforts; andcoordinating with federal agencies;establish and implement:strategic plans for energy development;frameworks for stakeholder engagement;processes for designating electrical energy development zones; andcriteria for evaluating proposed electrical energy development zones;review and approve:research project proposals from the board; andfunding allocations recommended by the board;consult with state land use authorities regarding:identification of state lands suitable for electrical energy development;designation of electrical energy development zones; andopportunities for coordinated development of electrical energy projects on state lands;administer the Electrical Energy Development Investment Fund created in Section 79-6-1105;make recommendations regarding electrical energy policy to state and local governments;identify and recommend solutions to barriers affecting electrical energy development;assess and address potential public health impacts of electrical energy development zones;enter into contracts necessary to fulfill the council’s duties;report annually by October 31 to the Public Utilities, Energy, and Technology Interim Committee and the Natural Resources, Agriculture, and Environment Interim Committee regarding:the council’s activities;energy development opportunities;infrastructure needs;the status of designated electrical energy development zones;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;investment decisions made by the council; andrecommended policy changes;create and implement a strategic plan for a decommissioned asset, taking into consideration:the state energy policy, as provided in Section 79-6-301;reliability of electrical generation; andeconomic viability;establish policies and procedures for the management of a decommissioned asset;administer contracts for the management and operations of a decommissioned asset;enter into contracts necessary for the operation and management of a decommissioned asset;acquire, hold, and dispose of property related to a decommissioned asset;select an operator for a decommissioned asset as provided in Section 79-6-1107; andreport annually to the Legislative Management Committee regarding:the status and progress of the asset transfer;operational and financial status of the asset under council control;status of the operator contract;environmental compliance status; andrecommendations for legislation.

(2) 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) 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) The portion of the property tax differential that is distributed to the municipality shall be used for:at least 10% of the total distribution shall be used for affordable housing programs; andthe remaining portion shall be used to mitigate impacts within the municipality resulting from electrical energy development.The portion of the property tax differential that is distributed to the county shall be used for: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; andthe remaining portion shall be used to mitigate impacts within the county resulting from electrical energy development.

(5) 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:provides for the transfer, disposition, and future operation of the asset; andensures 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.

Enacted by Chapter 375, 2025 General Session

79-6-1104 - Electrical energy development zones — Property tax differential.

(1) As used in this section:“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.”Community reinvestment agency” means the same as that term is defined in Section 17C-1-102.”Community reinvestment project area” means the same as that term is defined in Section 17C-1-102.”Municipal power project” means an electrical energy project that:is operated by or on behalf of a municipality; andexclusively serves customers within that municipality’s jurisdictional boundaries.”Property tax differential” means the difference between: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; andthe amount of property tax revenues that would be generated from that same area using the base taxable value of the property.”State land use authority” means:the Utah Inland Port Authority created in Section 11-58-201;the Military Installation Development Authority created in Section 63H-1-201;the School and Institutional Trust Lands Administration created in Section 53C-1-201; orany other land use authority created by the state that has jurisdiction over state lands.

(2) 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.Subsection (2)(a) does not apply to:financial incentives offered for:a municipal power project; oran electrical energy project that exclusively utilizes intermittent resources; oran electrical energy project for which a project area plan has been approved before July 1, 2026.

(3) A county or municipality may:pass a resolution declaring an intent to establish within the county or municipality boundaries an energy development zone;enter into an interlocal agreement with the council outlining each parties’ responsibilities relating to an energy development zone; andapply to the council for the designation of an electrical energy development zone by submitting:a description of the proposed boundaries of the electrical energy development zone;an assessment of existing electrical energy infrastructure within and proximate to the proposed electrical energy development zone;a development plan that includes:proposed electrical energy development projects;anticipated infrastructure improvements;projected economic benefits to the county; andevidence of local support including any interlocal agreement entered into between the county or municipality and the council, as applicable;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;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; andany other information required by the council.

(4) A state land use authority may:propose an electrical energy development zone within lands under its jurisdiction; andapply to the council for the designation of an electrical energy development zone by submitting:a description of the proposed boundaries of the electrical energy development zone;an assessment of existing electrical energy infrastructure within and proximate to the proposed electrical energy development zone;a development plan that includes:proposed electrical energy development projects;anticipated infrastructure improvements; andprojected economic benefits;evidence that the proposed zone is consistent with applicable land use plans and regulations; andany other information required by the council.

(5) The council shall:approve an application for electrical energy development zone designation if the application demonstrates:the proposed electrical energy development zone includes land suitable for electrical energy development based on:access to electrical energy resources;proximity to existing or planned transmission infrastructure;adequate transportation access; andsufficient land area for proposed development; andthe development plan:aligns with state energy policy under Section 79-6-301;includes realistic timelines and milestones;identifies specific infrastructure improvements; andquantifies projected economic benefits;make a determination on an application within 60 days of submission;provide written notice to the county or municipality explaining the basis for approval or denial;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:the Electrical Energy Development Investment Fund; andthe community reinvestment agency; andif 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:the Electrical Energy Development Investment Fund; andthe Utah Inland Port Authority created in Section 11-58-201.

(6) Within 30 days after the council designates an electrical energy development zone:the county auditor shall certify to the council the base taxable value of property within the electrical energy development zone; andthe county shall transmit to the council copies of the property tax assessment rolls for all property within the electrical energy development zone.

(7) Each year, the county auditor shall:determine the amount of the property tax differential for the electrical energy development zone by comparing:the current assessed value of property within the electrical energy development zone; andthe base taxable value of property within the electrical energy development zone;inform the county treasurer of the property tax differential amount; andprovide notice to the council of the amount calculated under this Subsection (7)(a).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).The county treasurer shall make distributions required under this section:at the same time as regular annual property tax distributions; andusing 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.

Enacted by Chapter 375, 2025 General Session

79-6-1105 - Electrical Energy Development Investment Fund.

(1) There is created an expendable special revenue fund known as the “Electrical Energy Development Investment Fund.”

(2) The fund consists of:property tax differential revenue collected under Section 79-6-1104;revenue from the radioactive waste facility expansion tax collected under Section 59-24-103.8; andrevenue from a tax on new generators of radioactive waste as described in Subsection 59-24-103.5(3).

(3) The council shall:administer the fund; anduse fund money only as authorized under Section 79-6-1106.

Enacted by Chapter 375, 2025 General Session

79-6-1106 - Authorized uses of fund money.

(1) The council may use fund money to:facilitate electrical energy infrastructure development within the state, including:transmission and distribution lines;pipeline development;energy storage facilities;generation facilities;related infrastructure; andto fund research, site selection, permitting, public outreach, and other activities related to the development of nuclear energy;provide matching funds for federal energy development grants;support energy workforce development programs;provide incentives for electrical energy development projects; andpay for administrative expenses related to the council’s duties.

(2) Fund money derived from the radioactive waste facility expansion tax revenue collected under Section 59-24-103.8 is prioritized for activities related to the development of nuclear energy.

Enacted by Chapter 375, 2025 General Session

79-6-1107 - Selection of facility operator.

(1) The council shall initiate the selection of an operator for a decommissioned asset by:issuing a request for proposals; andpublishing the request for proposals on the Utah Public Notice Website created under Section 63A-16-601.

(2) The request for proposals shall specify that an entity must demonstrate:at least 10 years of experience operating coal-fired electrical generation facilities;a commitment to maintaining substantial operations within the state;financial capability to operate and maintain the facility;experience with similar coal types and specifications;proven capability to comply with state and federal environmental requirements;existing relationships with regional transmission organizations;ability to maintain reliable baseload power generation;experience with western coal markets and transportation;capability to retain the existing skilled workforce; andability to integrate operations with existing transmission infrastructure.

(3) The council shall:allow at least 60 days for the submission of proposals; andestablish or contract with a technical review committee to evaluate proposals.

(4) In evaluating proposals, the council shall consider:operational efficiency metrics from similar facilities;proposed operational cost structure;economic considerations;reliability and availability guarantees;environmental compliance history and plans;workplace safety record and plans;local economic benefit commitments;proposed timeline for assuming operations; andthe long term power needs of the state and residents of the state.

(5) Nothing in this section:requires the council to select any proposal; orprevents the council from:rejecting all proposals; orterminating the request for proposals process.

Enacted by Chapter 120, 2025 General Session

Nuclear Energy Consortium

79-6-1201 - Nuclear Energy Consortium.

(1) There is created the Nuclear Energy Consortium to advise the office and the Legislature on nuclear energy development in the state.

(2) The consortium consists of:one member of the Senate, appointed by the president of the Senate;one member of the House of Representatives, appointed by the speaker of the House of Representatives;the following members or designees:the director of the Office of Energy Development, who shall serve as chair;the executive director of the Department of Environmental Quality;the chair of the Public Service Commission; andthe executive director of the Department of Natural Resources; andadditional members with expertise in nuclear energy development appointed by the director, including representatives from areas or entities such as:public and private institutions of higher education;the Idaho National Laboratory;the Nuclear Regulatory Commission;other federal entities as determined by the director;nuclear fuel mining and milling;nuclear fuel manufacturing;nuclear technology providers;utility companies;energy off-takers;workforce development;nuclear safety;research and development; andnuclear waste management.

(3) A member appointed under Subsection (2)(a) may be removed by the president of the Senate.A member appointed under Subsection (2)(b) may be removed by the speaker of the House of Representatives.A member appointed under Subsection (2)(d) may be removed by the director.

(4) The consortium shall meet at least quarterly.

(5) A majority of consortium members constitutes a quorum for conducting consortium business.

(6) The office shall provide staff support to the consortium.

(7) A consortium member may not receive compensation or benefits for the member’s service but may receive per diem and travel expenses in accordance with:Sections 63A-3-106 and 63A-3-107; andrules made by the Division of Finance under Sections 63A-3-106 and 63A-3-107.

Enacted by Chapter 375, 2025 General Session

79-6-1202 - Consortium duties.

(1) The consortium shall:provide knowledge and expertise to assist the office regarding nuclear energy technologies, safety, and development; anddevelop recommendations regarding policy pertaining to:nuclear energy development in the state;incentives for nuclear energy related industries in the state including industrial process applications and other beneficial uses of nuclear technology;partnerships between entities engaged in or supporting nuclear energy development, including public and private sector collaboration; andthe appropriate regulatory framework for nuclear energy development in the state.

(2) The office shall report annually on duties performed by the consortium on or before November 30 to the Public Utilities, Energy, and Technology Interim Committee.

Enacted by Chapter 375, 2025 General Session

Environmental Commodities

79-6-1301 - Definitions for part.

(1) “Digital identification number” means an identification number assigned to an environmental commodity by a governmental or accredited third-party verification entity that certifies or registers an environmental commodity for sale or exchange.

(2) “Environmental commodity” means a representation of the financial value of:a reduction in the amount of greenhouse gas present in the atmosphere; oran amount of greenhouse gas prevented from entering the atmosphere.”Environmental commodity” does not include a right or interest associated with a regulated pollutant, as that term is defined in Title V of the 1990 Clean Air Act.

(3) “Greenhouse gas” means carbon dioxide or methane.

(4) “State entity” means a department, commission, board, council, agency, institution of higher education, officer, corporation, fund, division, office, committee, authority, laboratory, library, unit, bureau, panel, or other administrative unit of the state.

(5) “State funds” means money appropriated by the Legislature.”State funds” does not include money or financial benefit in the form of:a tax incentive;a permit or an activity related to the development of a permit issued by a state entity; ora federal grant administered by a state entity.

Enacted by Chapter 146, 2025 General Session

79-6-1302 - Reporting requirement — Exemption.

(1) Except as provided in Subsection (2), before a state entity may sell or exchange an environmental commodity, the state entity shall:obtain a digital identification number for the environmental commodity;report a digital identification number for the environmental commodity to the office; andreport to the office any state funds that the state entity used for the creation of the environmental commodity.

(2) This section does not apply to an environmental commodity created from an activity on school and institutional trust lands, as that term is defined in Section 53C-1-103.

Enacted by Chapter 146, 2025 General Session

79-6-1303 - Property of the state — Management.

(1) If the state or a state entity appropriates or expends state funds for the creation of an environmental commodity, the state owns a portion of an environmental commodity that is proportional to the amount of state funds appropriated or expended for the creation of the environmental commodity.

(2) Except as provided in Subsection (3), the state treasurer may sell, exchange, or hold an environmental commodity, or any portion thereof, owned by the state in accordance with Subsection (2)(b).The state treasurer shall ensure that an environmental commodity owned by the state is sold, exchanged, or held:for the benefit of the citizens of the state;to promote energy independence for the state;to maximize the natural resources of the state; andconsistent with Part 3, State Energy Policy.

(3) An environmental commodity created or purchased by a state entity shall remain under the control of the state entity.

Enacted by Chapter 146, 2025 General Session

Energy Project Assessment

79-6-1401 - Definitions.

(1) “Affiliated group” means one or more chains of corporations or pass-through entities that are connected through ownership by a common parent entity that directly or indirectly controls or owns more than 50% of the outstanding voting stock or ownership interests of each corporation or pass-through entity.

(2) “Commercially operational” means that a wind or solar electric generation facility generates commercial amounts of electricity.

(3) “Eligible facility” means a wind or solar electric generation facility that is:commercially operational on January 1, 2026;under construction on January 1, 2026; orsubject to a power purchase agreement or other binding agreement to purchase the output of the wind or solar electric generation facility as of January 1, 2026.

(4) “Energy project assessment” means the assessment imposed in Section 79-6-1402.

(5) “Nameplate capacity” means the sum of the maximum rated outputs of all electrical generating equipment within a facility under specific conditions designated by the manufacturer, as indicated on individual nameplates physically attached to the equipment.

(6) “Pass-through entity” means the same as that term is defined in Section 59-10-1402.

(7) “Renewable energy parent entity” means the parent entity of an affiliated group when an entity in the affiliated group controls, directly or indirectly, a wind or solar electric generation facility in the state.

(8) “Species Protection Account” means the account created in Section 23A-3-214.

(9) “Tax commission” means the State Tax Commission.

(10) “Wind or solar electric generation facility” means a commercially operational facility with the capacity to generate electricity from wind or solar that has not reached the end of the facility’s operational life that uses:wind equipment with a nameplate capacity of at least 20 megawatts of generating alternating current electricity; orsolar equipment with a nameplate capacity of at least 20 megawatts of generating alternating current electricity.

Enacted by Chapter 146, 2025 General Session

79-6-1402 - Energy project assessment.

(1) Beginning January 1, 2026, each renewable energy parent entity with an eligible facility that is commercially operational in the state shall pay an annual energy project assessment to the tax commission before March 1 of each year.

(2) The amount of the energy project assessment is based on the total number of generating alternating current nameplate capacity megawatts of wind or solar electric generation facilities that are commercially operational in the state at the beginning of the calendar year, and controlled by the renewable energy parent entity, as follows:for 500 or greater megawatts of operational generating alternating current nameplate capacity, the assessment is $200,000;formegawattsofoperationalgeneratingalternatingcurrentnameplatecapacityequaltoorgreaterthan200megawatts,butlessthan500megawatts,theassessmentis$175,000;for megawatts of operational generating alternating current nameplate capacity equal to or greater than 100 megawatts, but less than 200 megawatts, the assessment is $125,000;formegawattsofoperationalgeneratingalternatingcurrentnameplatecapacityequaltoorgreaterthan50megawatts,butlessthan100megawatts,theassessmentis$50,000; andfor megawatts of operational generating alternating current nameplate capacity equal to or greater than 20 megawatts, but less than 50 megawatts, the assessment is $25,000.

(3) The office shall annually determine the amount of energy project assessment each renewable energy parent entity owes under this section and report that amount to the tax commission to be collected in accordance with Section 79-6-1403.

(4) The office may make rules, in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, to create procedures for assessing and reporting the amounts to be collected under this section.

Enacted by Chapter 146, 2025 General Session

79-6-1403 - Administration of the assessment — Species Protection Account.

(1) The tax commission shall administer, collect, and enforce the energy project assessment collected under this part in accordance with Title 59, Chapter 1, General Taxation Policies.

(2) A renewable energy parent entity shall electronically file with the tax commission, on or before March 1 of each year, a statement containing the information required by Subsection (2)(b) in a manner prescribed by the tax commission.The statement required in Subsection (2)(a) shall include:the name of the renewable energy parent entity;the nameplate capacity in megawatts of wind or solar electric generation facilities that are generating alternating current, commercially operational in the state at the beginning of the calendar year, and controlled by the renewable energy parent entity; andany other reasonable and necessary information required by the tax commission.A statement required to be filed with the tax commission shall be signed and sworn to by the chief executive officer of the renewable energy parent entity or the chief executive officer’s designee.

(3) The tax commission shall deposit revenue collected from the energy project assessment into the Species Protection Account.

Enacted by Chapter 146, 2025 General Session