Bill Summary – FastDemocracy

Enrolled Copy                                                                               H.B. 3004
                               ENERGY SECURITY ADJUSTMENTS
                                        2024 THIRD SPECIAL SESSION
                                                  STATE OF UTAH
                                        Chief Sponsor: Carl R. Albrecht Senate Sponsor: Derrin R. Owens
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  LONG TITLE
  General Description:
      This bill amends provisions related to the decommissioning or disposal of project entity
  assets and the associated permitting process.
  Highlighted Provisions:
      This bill:
      ▸ amends provisions related to the notice of decommissioning or disposal of project entity
  assets;
      ▸ removes the requirement for the Legislative Management Committee to make certain
  recommendations if a project entity does not provide notice of intent to file an application;
      ▸ requires the Decommissioned Asset Disposition Authority (authority) to submit a
  complete alternative air permit application to the Division of Air Quality (division) by
  December 31, 2024;
      ▸ requires the division to provide the results of an evaluation to the authority within 30
  days of receipt of the application, unless additional time is needed;
      ▸ requires the study on the state implementation plan to focus on ensuring that the
  continued operation of the power plants under an alternative permit will not jeopardize the
  state's ability to meet federal air quality standards;
      ▸ repeals the project entity oversight committee; and
      ▸ makes technical changes.
  Money Appropriated in this Bill:
      None
  Other Special Clauses:
      This bill provides a special effective date.
  Utah Code Sections Affected:
     H.B. 3004                                                                          Enrolled Copy
   AMENDS:
       11-13-318 (Effective upon governor's approval), as last amended by Laws of Utah 2024,
       Chapter 512
       11-13-320 (Effective upon governor's approval), as enacted by Laws of Utah 2024,
       Chapter 512
       19-2-109.4 (Effective upon governor's approval), as enacted by Laws of Utah 2024,
       Chapter 512
       63I-1-211 (Effective upon governor's approval), as last amended by Laws of Utah 2024,
       Chapter 395
       63I-1-263 (Effective 07/01/24), as last amended by Laws of Utah 2024, Chapter 285
       79-6-401 (Effective upon governor's approval), as last amended by Laws of Utah 2024,
       Chapters 33, 88 and 493
       79-6-407 (Effective upon governor's approval), as enacted by Laws of Utah 2024,
       Chapter 512
       79-6-408 (Effective upon governor's approval), as enacted by Laws of Utah 2024,
       Chapter 512
   REPEALS:
       11-13-317 (Effective upon governor's approval), as enacted by Laws of Utah 2022,
       Chapter 322
       63C-26-101 (Effective upon governor's approval), as enacted by Laws of Utah 2022,
       Chapter 322
       63C-26-201 (Effective upon governor's approval), as enacted by Laws of Utah 2022,
       Chapter 322
       63C-26-202 (Effective upon governor's approval), as enacted by Laws of Utah 2022,
       Chapter 322
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   Be it enacted by the Legislature of the state of Utah:
         Section 1. Section 11-13-318 is amended to read:
         11-13-318 (Effective upon governor's approval). Notice of decommissioning or
   disposal of project entity assets.
   (1) As used in this section:
       (a) "Alternative permit" means the same as that term is defined in Section 11-13-320.
       (b) "Decommissioning" means to remove an electrical generation facility from active
             service.
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     Enrolled Copy                                                                                   H.B. 3004
      (c) "Disposal" means the sale, transfer, dismantling, or other disposition of a project
          entity's assets.
      (d) "Division" means the Division of Air Quality created in Section 19-1-105.
      (e) "Fair market value" means the same as that term is defined in Section 79-6-408.
      (f)(i) "Project entity asset" means a project entity's:
               (A) land;
               (B) water;
               [(B)] (C) buildings; or
               [(C)] (D) essential equipment, including turbines, generators, transformers, and
                      transmission lines.
          (ii) "Project entity asset" does not include an asset that is not essential for the
               generation of electricity in the project entity's coal-powered electrical generation
               facility.
  (2) A project entity shall provide a notice of decommissioning or disposal to the Legislative
      Management Committee at least 180 days before:
      (a) the disposal of any project entity assets; or
      (b) the decommissioning of the project entity's coal-powered electrical generation
          facility.
  (3) The notice of decommissioning or disposal described in Subsection (2) shall include:
      (a) the date of the intended decommissioning or disposal;
      (b) a description of the project entity's coal-powered electrical generation facility
          intended for decommissioning or any project entity asset intended for disposal; and
      (c) the reasons for the decommissioning or disposal.
  (4) A project entity may not intentionally prevent the functionality of the project entity's
      existing coal-powered electrical generation facility.
  (5) Notwithstanding the requirements in Subsections (2) through (4), a project entity may
      take any action necessary to transition to a new electrical generation facility powered by
      natural gas, hydrogen, or a combination of natural gas and hydrogen, including any
      action that has been approved by a permitting authority.
  [(6) If a project entity intends to submit an application for an alternative permit to the
      division as described in Section 11-13-320, the project entity shall notify the Legislative
      Management Committee that the project entity intends to submit an application before
      July 1, 2024.]
  [(7) If a project does not notify the Legislative Management Committee of an intent to
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      H.B. 3004                                                                                 Enrolled Copy
       submit an application, the Legislative Management Committee shall make
       recommendations to the governor regarding appropriate action, which may include
       calling a special session to enact legislation reconstituting the board of the project entity.]
   [(8)] (6) A project entity shall provide the state the option to purchase for fair market value a
       project entity asset intended for decommissioning, with the option remaining open for at
       least two years, beginning on July 2, 2025.
         Section 2. Section 11-13-320 is amended to read:
         11-13-320 (Effective upon governor's approval). Air quality permitting
   transition process.
   (1) As used in this section:
       (a) "Alternative permit" means an amendment to a transition permit that, for purposes of
             transitioning an electrical generation facility to a new facility, allows one or more
             existing generating units to continue operating while also providing for closure of
             one but not all existing generating units.
       (b) "Authority" means the Decommissioned Asset Disposition Authority established in
             Section 79-6-407.
       (c) "Division" means the Division of Air Quality created in Section 19-1-105.
       (d) "Pre-existing permit" means the air quality permit held by the operator of an existing
             electrical generation facility prior to any amendments associated with transitioning to
             a new facility.
       (e) "Transition permit" means an amendment to the pre-existing permit, issued to the
             operator of an existing electrical generation facility for the purpose of transitioning to
             a new electrical generation facility, which authorizes construction of the new facility
             but does not require closure of all existing generating units until after the new facility
             commences operation.
   (2) A project entity that holds a pre-existing permit for an existing electrical generation
       facility with multiple generating units, and has been issued a transition permit for a new
       electrical generation facility, may submit an application to the division in accordance
       with Section 19-2-109.4 for issuance of an alternative permit.
   [(3) If a project entity intends to submit an application under Subsection (2), the project
       entity shall provide a binding notice of intent to the Legislative Management Committee
       on or before July 1, 2024.]
   [(4) If a project entity submits an application under Subsection (2), the project entity shall
       submit the application on or before January 1, 2025.]
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      Enrolled Copy                                                                                   H.B. 3004
        Section 3. Section 19-2-109.4 is amended to read:
        19-2-109.4 (Effective upon governor's approval). Project entity transition permit.
  (1) As used in this section:
      (a) "Alternative permit" means an amendment to a transition permit that, for purposes of
          transitioning an electrical generation facility to a new facility, allows one or more
          existing generating units to continue operating while also providing for closure of
          one but not all existing generating units.
      (b) "Authority" means the Decommissioned Asset Disposition Authority established in
          Section 79-6-407.
      (c) "Division" means the Division of Air Quality created in Section 19-1-105.
      (d) "Pre-existing permit" means the air quality permit held by the operator of an existing
          electrical generation facility prior to any amendments associated with transitioning to
          a new facility.
      (e) "Project entity" means the same as that term is defined in Section 11-13-103.
      (f) "Transition permit" means an amendment to the pre-existing permit, issued to the
          operator of an existing electrical generation facility for the purpose of transitioning to
          a new electrical generation facility, which authorizes construction of the new facility
          but does not require closure of all existing generating units until after the new facility
          commences operation.
  (2) The division shall accept an application for an alternative permit from a project entity
      that has previously obtained a transition permit to authorize the same new electrical
      generating capacity contemplated by the transition permit.
  (3) If the application for an alternative permit meets the requirements established by the
      board:
      (a) the division shall issue an approval order for the alternative permit to the project
          entity;
      (b) the conditions of the transition permit shall cease to apply, including requirements to
          reduce the capacity of existing generating units at the electrical generation facility;
          and
      (c) the project entity shall submit all documentation required to modify any federal
          operating permit required to be maintained by the project entity, consistent with
          deadlines established by the division.
  (4) If an alternative permit is not approved under Subsection (3), the conditions of the
      transition permit shall remain effective.
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      H.B. 3004                                                                                   Enrolled Copy
   (5)(a) Upon receipt of an alternative air permit application prepared and submitted by
       the authority in accordance with Subsection 79-6-407(4)(c), the division shall
       conduct a full evaluation as if the application had been prepared and submitted by a
       project entity to determine whether the alternative air permit would be issued if
       applied for by the project entity.
       (b) The division shall provide the results of any evaluation conducted under Subsection
             (5)(a) to the authority [no later than January 30, 2025.] within 30 days after the date
             that the division receives the application described in Subsection (5)(a), unless the
             division provides written notice to the authority that additional time is needed to
             complete the evaluation.
       (c) If the division concludes after evaluation that an alternative permit would likely be
             issued to a project entity, the authority shall, within 30 days after the authority
             receives the results of the evaluation, submit recommendations to the Legislative
             Management Committee regarding options for the state to continue to authorize
             construction of the project entity's new electrical generation facility that do not
             require the closure of all of the project entity's existing electrical generating facilities.
   (6) The division shall evaluate an application for an alternative permit independently from
       any pre-existing permit or transition permit based on updated assumptions, modeling,
       and requirements established in rule by the division and may rely upon the reduction of
       capacity of the existing electrical generation facility only as necessary to ensure that
       emissions of the new generating facility do not exceed thresholds established by federal
       law which would necessitate new source review as a major modification.
         Section 4. Section 63I-1-211 is amended to read:
         63I-1-211 (Effective upon governor's approval). Repeal dates: Title 11.
   [(1) Section 11-13-317, related to the Project Entity Oversight Committee, is repealed July
       1, 2027.]
   [(2)] Title 11, Chapter 59, Point of the Mountain State Land Authority Act, is repealed
       January 1, 2029.
         Section 5. Section 63I-1-263 is amended to read:
         63I-1-263 (Effective 07/01/24). Repeal dates: Titles 63A to 63N.
   (1) Subsection 63A-5b-405(5), relating to prioritizing and allocating capital improvement
       funding, is repealed July 1, 2024.
   (2) Title 63C, Chapter 4a, Constitutional and Federalism Defense Act, is repealed July 1,
       2028.
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      Enrolled Copy                                                                               H.B. 3004
  (3) Title 63C, Chapter 6, Utah Seismic Safety Commission, is repealed January 1, 2025.
  (4) Title 63C, Chapter 18, Behavioral Health Crisis Response Committee, is repealed
      December 31, 2026.
  (5) Title 63C, Chapter 23, Education and Mental Health Coordinating Committee, is
      repealed December 31, 2024.
  (6) Title 63C, Chapter 25, State Finance Review Commission, is repealed July 1, 2027.
  [(7) Title 63C, Chapter 26, Project Entity Oversight Committee, is repealed July 1, 2027.]
  [(8)] (7) Title 63C, Chapter 27, Cybersecurity Commission, is repealed July 1, 2032.
  [(9)] (8) Title 63C, Chapter 28, Ethnic Studies Commission, is repealed July 1, 2026.
  [(10)] (9) Title 63C, Chapter 31, State Employee Benefits Advisory Commission, is
      repealed on July 1, 2028.
  [(11)] (10) Section 63G-6a-805, which creates the Purchasing from Persons with Disabilities
      Advisory Board, is repealed July 1, 2026.
  [(12)] (11) Title 63G, Chapter 21, Agreements to Provide State Services, is repealed July 1,
      2028.
  [(13)] (12) Title 63H, Chapter 4, Heber Valley Historic Railroad Authority, is repealed July
      1, 2029.
  [(14)] (13) Title 63H, Chapter 8, Utah Housing Corporation Act, is repealed July 1, 2026.
  [(15)] (14) Subsection 63J-1-602.2(16), related to the Communication Habits to reduce
      Adolescent Threats (CHAT) Pilot Program, is repealed July 1, 2029.
  [(16)] (15) Subsection 63J-1-602.2(26), related to the Utah Seismic Safety Commission, is
      repealed January 1, 2025.
  [(17)] (16) Section 63L-11-204, creating a canyon resource management plan to Provo
      Canyon, is repealed July 1, 2025.
  [(18)] (17) Title 63L, Chapter 11, Part 4, Resource Development Coordinating Committee,
      is repealed July 1, 2027.
  [(19)] (18) Title 63M, Chapter 7, Part 7, Domestic Violence Offender Treatment Board, is
      repealed July 1, 2027.
  [(20)] (19) Section 63M-7-902, Creation -- Membership -- Terms -- Vacancies -- Expenses,
      is repealed July 1, 2029.
  [(21)] (20) Title 63M, Chapter 11, Utah Commission on Aging, is repealed July 1, 2026.
  [(22)] (21) Title 63N, Chapter 1b, Part 4, Women in the Economy Subcommittee, is
      repealed January 1, 2030.
  [(23)] (22) Title 63N, Chapter 2, Part 2, Enterprise Zone Act, is repealed July 1, 2028.
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      H.B. 3004                                                                              Enrolled Copy
   [(24)] (23) Section 63N-2-512, related to the Hotel Impact Mitigation Fund, is repealed July
       1, 2028.
   [(25)] (24) Title 63N, Chapter