Bill Summary – FastDemocracy

Enrolled Copy                                                                          H.B. 374
                         STATE ENERGY POLICY AMENDMENTS
                                          2024 GENERAL SESSION
                                               STATE OF UTAH
                                       Chief Sponsor: Colin W. Jack Senate Sponsor: Evan J. Vickers
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  LONG TITLE
  General Description:
     This bill modifies the state energy policy.
  Highlighted Provisions:
     This bill:
     ▸ defines terms;
     ▸ provides that the state energy policy:
         ●   is focused on human well-being and quality of life;
         ●   encourages the use of dispatchable energy resources;
         ●   fosters innovation and development to meet future energy demand; and
         ●   allows for market-based solutions; and
     ▸ requires the Office of Energy Development to report annually to the Public Utilities,
  Energy, and Technology Interim Committee regarding:
         ●   development and implementation of the state energy plan; and
         ●   the state energy plan's compliance with the state energy policy; and
     ▸ makes technical changes.
  Money Appropriated in this Bill:
     None
  Other Special Clauses:
     None
  Utah Code Sections Affected:
  AMENDS:
     79-6-102, as renumbered and amended by Laws of Utah 2021, Chapter 280
     79-6-301, as last amended by Laws of Utah 2023, Chapters 186, 195
     79-6-401, as last amended by Laws of Utah 2023, Chapter 196
     H.B. 374                                                                               Enrolled Copy
28
   Be it enacted by the Legislature of the state of Utah:
         Section 1. Section 79-6-102 is amended to read:
         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) "Appointing authority" means:
       (a) on and before June 30, 2029, the governor; and
       (b) on and after July 1, 2029, the executive director.
   (4) "Clean" means minimizing adverse environmental impact and able to meet state
       standards for environmental quality.
   (5) "Dispatchable" means available for use on demand and generally available to be
       delivered at a time and quantity of the operator's choosing.
   (6) "Electrical corporation" means the same as that term is defined in Section 54-2-1.
   [(2)] (7) (a) On and before June 30, 2029, "energy advisor" means the governor's energy
       advisor appointed under Section 79-6-401.
       (b) On and after July 1, 2029, "energy advisor" means the energy advisor appointed by
            the executive director under Section 79-6-401.
   (8) "Gas corporation" means the same as that term is defined in Section 54-2-1.
   (9) "Intermittent" means available for use on a variable basis that is dependent on elements
       outside of the control of the operator.
   [(3)] (10) "Office" means the Office of Energy Development created in Section 79-6-401.
   (11) (a) "Reliable" means supporting a system generally able to provide a continuous
       supply and the resiliency to withstand sudden or unexpected disturbances.
       (b) "Reliable" includes, for systems delivering electricity, the ability to provide
            electricity at the proper voltage and frequency.
   (12) "Secure" means protected against disruption, tampering, and external interference.
   [(4) "State agency" means an executive branch:]
       [(a) department;]
       [(b) agency;]
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     Enrolled Copy                                                                                  H.B. 374
      [(c) board;]
      [(d) commission;]
      [(e) division; or]
      [(f) state educational institution.]
  (13) "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.
  (14) "Governmental entity" means:
      (a) any department, agency, board, commission, or other instrumentality of the state; or
      (b) a political subdivision of the state.
        Section 2. Section 79-6-301 is amended to read:
        79-6-301 . State energy policy.
  [(1) It is the policy of the state that:]
      [(a) Utah shall have adequate, reliable, affordable, sustainable, and clean energy resources;]
      [(b) Utah shall promote the development of:]
           [(i) nonrenewable energy resources, including natural gas, coal, oil, oil shale, and oil sands;]
           [(ii) renewable energy resources, including geothermal, solar, wind, biomass, biofuel, and
               hydroelectric;]
           [(iii) nuclear power generation technologies certified for use by the United States Nuclear
               Regulatory Commission including molten salt reactors producing medical isotopes;]
           [(iv) alternative transportation fuels and technologies;]
           [(v) infrastructure to facilitate energy development, diversified modes of transportation,
               greater access to domestic and international markets for Utah's resources, and advanced
               transmission systems;]
           [(vi) energy storage, pumped storage, and other advanced energy systems, including
               hydrogen from all sources;]
           [(vii) electricity systems that can be controlled at the request of grid operators to meet
               system load demands, to ensure an adequate supply of dispatchable energy generation
               resources;]
           [(viii) electricity systems that are stable and capable of serving load without accelerating
               damage to customer equipment; and]
           [(ix) increased refinery capacity;]
      [(c) Utah shall promote the development of resources and infrastructure sufficient to meet
           the state's growing demand, while contributing to the regional and national energy
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      H.B. 374                                                                                 Enrolled Copy
            supply, thus reducing dependence on international energy sources;]
      [(d) Utah shall promote the development of resources, tools, and infrastructure to enhance
            the state's ability to:]
            [(i) respond effectively to significant disruptions to the state's energy generation, energy
                delivery systems, or fuel supplies;]
            [(ii) maintain adequate supply, including reserves of proven and cost-effective
                dispatchable electricity reserves to meet grid demand; and]
            [(iii) ensure the state's energy independence by promoting the use of energy resources
                generated within the state;]
      [(e) Utah 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;]
      [(f) Utah shall pursue energy conservation, energy efficiency, and environmental quality;]
      [(g) Utah shall promote the development of a secure supply chain from resource extraction
            to energy production and consumption;]
      [(h) (i) state regulatory processes should be streamlined to balance economic costs with the
            level of review necessary to ensure protection of the state's various interests; and]
            [(ii) where federal action is required, Utah will encourage expedited federal action and will
                collaborate with federal agencies to expedite review;]
      [(i) 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:]
            [(i) economic prosperity is linked to the availability, reliability, and affordability of
                consumer energy supplies; and]
            [(ii) investment will occur only when adequate financial returns can be realized;]
      [(j) Utah shall promote training and education programs focused on developing a
            comprehensive understanding of energy, including:]
            [(i) programs addressing:]
                [(A) energy conservation;]
                [(B) energy efficiency;]
                [(C) supply and demand; and]
                [(D) energy related workforce development; and]
            [(ii) energy education programs in grades kindergarten through grade 12; and]
      [(k) Utah shall promote the use of clean energy sources by considering the emissions of an
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      Enrolled Copy                                                                                    H.B. 374
           energy resource throughout the entire life cycle of the energy resource.]
  [(2) State agencies are encouraged to conduct agency 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).]
  (1) It is the policy of the state that:
      (a) (i) 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;
           (ii) Utah shall have energy resources that have the following attributes, listed in order
               of priority:
               (A) adequate;
               (B) reliable;
               (C) dispatchable;
               (D) affordable;
               (E) sustainable;
               (F) secure; and
               (G) clean; and
           (iii) Utah 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);
      (b) (i) Utah shall foster market-based solutions to:
               (A) meet current and future energy demands;
               (B) protect proven technologies; and
               (C) minimize political uncertainties in pursuing energy development and strategy;
           (ii) Utah shall promote the development of a diverse energy portfolio, including:
               (A) dispatchable energy resources, including natural gas, coal, oil, and
                    hydroelectric;
               (B) nuclear power generation technologies certified for use by the United States
                    Nuclear Regulatory Commission including molten salt reactors producing
                    medical isotopes;
               (C) intermittent energy resources, including solar and wind;
               (D) clean energy sources by considering the environmental impact, including
                    emissions, of an energy resource throughout the entire life cycle of the energy
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      H.B. 374                                                                                Enrolled Copy
                     resource; and
                (E) increased refinery capacity; and
            (iii) Utah shall encourage innovation in the development of energy resources,
                including:
                (A) emerging energy resources, including geothermal, biomass, biofuel, oil shale,
                     and oil sands;
                (B) alternative transportation fuels and technologies; and
                (C) energy storage, pumped storage, and other developing energy systems,
                     including hydrogen from all sources;
      (c) (i) Utah shall streamline state regulatory processes to balance economic costs with
            the level of review necessary to ensure protection of the state's interests; and
            (ii) Utah shall encourage expedited federal action and will collaborate with federal
                agencies to expedite review;
      (d) (i) 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:
                (A) economic prosperity is linked to the availability, reliability, and affordability
                     of consumer energy supplies; and
                (B) investment will occur only when adequate financial returns can be realized;
            (ii) Utah shall assess the utility value of each prospective energy resource to meet the
                state's increasing demands including:
                (A) a market analysis with and without government subsidies; and
                (B) the total system impact of an energy resource;
            (iii) 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; and
            (iv) Utah 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;
      (e) Utah shall promote the development of resources, tools, and infrastructure to enhance
            the state's ability to:
            (i) maintain adequate supply, including reserves of proven and cost-effective
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      Enrolled Copy                                                                                     H.B. 374
                resources to meet demand;
          (ii) ensure the state's energy independence by promoting and prioritizing the use of
                energy resources generated within the state; and
          (iii) respond effectively to significant disruptions to the state's energy generation,
                energy delivery systems, or fuel supplies;
      (f) (i) Utah shall research and develop in consideration of the complete life cycle of
          an energy resource including mining, transportation, consumption, disposal, and
          reclamation;
          (ii) Utah shall promote the development of a secure supply chain from resource
                extraction to energy production and consumption; and
          (iii) Utah shall, in accordance with the policy principles described in this section,
                support the construction of infrastructure to encourage:
                (A) energy development;
                (B) diversified modes of energy transportation;
                (C) greater access to domestic and international markets for Utah's resources; and
                (D) advanced transmission systems;
      (g) Utah shall pursue energy conservation, energy efficiency, and environmental quality;
          and
      (h) Utah shall promote training and education programs developed by the office, focused
          on developing a comprehensive understanding of energy, including:
          (i) programs addressing:
                (A) supply and demand;
                (B) energy related workforce development;
                (C) energy efficiency; and
                (D) energy conservation; and
          (ii) energy 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).
        Section 3. Section 79-6-401 is amended to read:
        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 in the Department of Natural
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      H.B. 374                                                                                Enrolled Copy
       Resources.
   (2) (a) The energy advisor shall serve as the director of the office or, on or before June
       30, 2029, appoint a director of the office.
       (b) The director:
            (i) shall, if the energy advisor appoints a director under Subsection (2)(a), report to
                 the energy advisor; and
            (ii) may appoint staff as funding within existing budgets allows.
       (c) The office may consolidate energy staff and functions existing in the state energy
            p