H.B. 389
LEGISLATIVE GENERAL COUNSEL
6 Approved for Filing: S. Elder 6
6 02-03-23 12:10 PM 6
H.B. 389
1 RENEWABLE ENERGY AMENDMENTS
2 2023 GENERAL SESSION
3 STATE OF UTAH
4 Chief Sponsor: Colin W. Jack
5 Senate Sponsor: ____________
6
7LONG TITLE
8General Description:
9 This bill creates the Electrical Service Quality Act.
10Highlighted Provisions:
11 This bill:
12 <defines terms;
13 <grants rulemaking authority to the Public Service Commission (commission);
14 <requires certain electric utility companies to prepare an electric service quality plan;
15 <grants rulemaking authority to the commission;
16 <creates a reporting requirement for the commission to report to the Public Utilities
17Energy and Technology Interim Committee;
18 <makes changes to the state energy policy; and
19 <makes technical changes.
20Money Appropriated in this Bill:
21 None
22Other Special Clauses:
23 None
24Utah Code Sections Affected:
25AMENDS:
26 79-6-301, as last amended by Laws of Utah 2021, Chapter 383 and renumbered and
27amended by Laws of Utah 2021, Chapter 280
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28ENACTS:
29 54-25-101, Utah Code Annotated 1953
30 54-25-102, Utah Code Annotated 1953
31 54-25-201, Utah Code Annotated 1953
32
33Be it enacted by the Legislature of the state of Utah:
34 Section 1. Section 54-25-101 is enacted to read:
35 CHAPTER 25. ELECTRICAL QUALITY SERVICE ACT
36 Part 1. General Provisions
37 54-25-101. Definitions.
38 As used in this chapter:
39 (1) "Electrical service quality plan" means a plan submitted to the commission in
40accordance with the requirements of this chapter.
41 (2) "Interconnection request" means a request from a utility-scale energy generation
42system to a qualified utility's transmission line.
43 (3) "Qualified utility" means the same as that term is defined in Section 54-17-801.
44 (4) "Utility-scale energy generation system" means an electric generation facility that
45has a generating capacity of more than two megawatts and is intermittent, non-dispatchable, or
46controlled by an inverter.
47 Section 2. Section 54-25-102 is enacted to read:
48 54-25-102. Commission rulemaking authority.
49 (1) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
50commission shall make rules to implement this chapter, including:
51 (a) rules establishing procedures for the review and approval of an electrical service
52quality plan;
53 (b) rules establishing the procedures for the review and approval of annual
54expenditures for the implementation of an electrical quality service plan; and
55 (c) any other rules that the commission determines are necessary to protect the public
56interest and implement this chapter.
57 (2) In establishing the procedures and rules described in Subsection (1), the
58commission shall consult with: 02-03-23 12:10 PM H.B. 389
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59 (a) qualified utilities;
60 (b) utility-scale electricity providers; and
61 (c) other state agencies.
62 Section 3. Section 54-25-201 is enacted to read:
63 Part 2. Electric Service Quality Plans
64 54-25-201. Electric service quality plan for a qualified utility.
65 (1) A qualified utility shall prepare an electric service quality plan in accordance with
66the requirements of this chapter.
67 (2) An electric service quality plan under Subsection (1) shall include:
68 (a) a description of the procedures, standards, and time frames that the qualified utility
69will use to assess an interconnection request to:
70 (i) decrease the risk that the interconnected utility-scale generation facilities will
71adversely affect the electric service quality to other customers on the qualified utility lines,
72including excessive variations in:
73 (A) voltage;
74 (B) frequency; or
75 (C) harmonics; and
76 (ii) address adverse effects to the electric service quality caused by interconnected
77customer-owned generation systems that are discovered after the time of interconnection;
78 (b) a description of the equipment and standards that the qualified utility will use to
79perform the assessment described in Subsection (2)(a); and
80 (c) a description of proposed modifications or upgrades to facilities and preventative
81programs that the qualified utility will implement to address any interconnection problems
82discovered by the qualified utility or reported by customers.
83 (3) The commission may only approve an electric service quality plan that meets the
84requirements of Subsection (2).
85 (4) On or before October 31, 2023, and before October 31 of each year after 2023, the
86commission shall report to the Public Utilities, Energy, and Technology Interim Committee
87regarding a qualified utility's compliance with the qualified utility's electric service quality
88plan.
89 Section 4. Section 79-6-301 is amended to read: H.B. 389 02-03-23 12:10 PM
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90 79-6-301. State energy policy.
91 (1) It is the policy of the state that:
92 (a) Utah shall have adequate, reliable, affordable, sustainable, and clean energy
93resources;
94 (b) Utah [will] shall promote the development of:
95 (i) nonrenewable energy resources, including natural gas, coal, oil, oil shale, and oil
96sands;
97 (ii) renewable energy resources, including geothermal, solar, wind, biomass, biofuel,
98and hydroelectric;
99 (iii) nuclear power generation technologies certified for use by the United States
100Nuclear Regulatory Commission including molten salt reactors producing medical isotopes;
101 (iv) alternative transportation fuels and technologies;
102 (v) infrastructure to facilitate energy development, diversified modes of transportation,
103greater access to domestic and international markets for Utah's resources, and advanced
104transmission systems;
105 (vi) energy storage, pumped storage, and other advanced energy systems, including
106hydrogen from all sources;
107 (vii) electricity systems that can be controlled at the request of grid operators to meet
108system load demands, to ensure an adequate supply of dispatchable energy generation
109resources;
110 (viii) electricity systems that are stable and capable of serving load without accelerating
111damage to customer equipment; and
112 [(viii)] (ix) increased refinery capacity;
113 (c) Utah will promote the development of resources and infrastructure sufficient to
114meet the state's growing demand, while contributing to the regional and national energy supply,
115thus reducing dependence on international energy sources;
116 (d) Utah will promote the development of resources, tools, and infrastructure to
117enhance the state's ability to:
118 (i) respond effectively to significant disruptions to the state's energy generation, energy
119delivery systems, or fuel supplies; and
120 (ii) maintain adequate supply, including reserves of proven and cost-effective 02-03-23 12:10 PM H.B. 389
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121dispatchable electricity reserves to meet grid demand;
122 (e) Utah will allow market forces to drive prudent use of energy resources, although
123incentives and other methods may be used to ensure the state's optimal development and use of
124energy resources in the short- and long-term;
125 (f) Utah will pursue energy conservation, energy efficiency, and environmental quality;
126 (g) (i) state regulatory processes should be streamlined to balance economic costs with
127the level of review necessary to ensure protection of the state's various interests; and
128 (ii) where federal action is required, Utah will encourage expedited federal action and
129will collaborate with federal agencies to expedite review;
130 (h) Utah will maintain an environment that provides for stable consumer prices that are
131as low as possible while providing producers and suppliers a fair return on investment,
132recognizing that:
133 (i) economic prosperity is linked to the availability, reliability, and affordability of
134consumer energy supplies; and
135 (ii) investment will occur only when adequate financial returns can be realized; and
136 (i) Utah will promote training and education programs focused on developing a
137comprehensive understanding of energy, including:
138 (i) programs addressing:
139 (A) energy conservation;
140 (B) energy efficiency;
141 (C) supply and demand; and
142 (D) energy related workforce development; and
143 (ii) energy education programs in grades K-12.
144 (2) State agencies are encouraged to conduct agency activities consistent with
145Subsection (1).
146 (3) A person may not file suit to challenge a state agency's action that is inconsistent
147with Subsection (1).