Enrolled Copy H.B. 389 1 ELECTRICAL POWER DELIVERY QUALITY AMENDMENTS 2 2023 GENERAL SESSION 3 STATE OF UTAH 4 Chief Sponsor: Colin W. Jack 5 Senate Sponsor: David P. Hinkins 6 7LONG TITLE 8General Description: 9 This bill creates the Electrical Power Delivery 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 electrical power delivery 15quality plan; 16 <grants rulemaking authority to the commission; 17 <creates a reporting requirement for the commission to report to the Public Utilities, 18Energy, and Technology Interim Committee; 19 <makes changes to the state energy policy; and 20 <makes technical changes. 21Money Appropriated in this Bill: 22 None 23Other Special Clauses: 24 None 25Utah Code Sections Affected: 26AMENDS: 27 79-6-301, as last amended by Laws of Utah 2021, Chapter 383 and renumbered and 28amended by Laws of Utah 2021, Chapter 280 29ENACTS: H.B. 389 Enrolled Copy - 2 - 30 54-25-101, Utah Code Annotated 1953 31 54-25-102, Utah Code Annotated 1953 32 54-25-201, Utah Code Annotated 1953 33 34Be it enacted by the Legislature of the state of Utah: 35 Section 1. Section 54-25-101 is enacted to read: 36 CHAPTER 25. ELECTRICAL POWER DELIVERY QUALITY ACT 37 Part 1. General Provisions 38 54-25-101. Definitions. 39 As used in this chapter: 40 (1) "Electrical power delivery quality" means the suitability of power delivered to 41customers as measured in comparison to accepted industry standards on voltage and power 42quality. 43 (2) "Electrical power delivery quality plan" means a plan submitted to the commission 44in accordance with the requirements of this chapter. 45 (3) "Interconnection request" means a request from a utility-scale energy generation 46system to a qualified utility's transmission line. 47 (4) "Qualified utility" means the same as that term is defined in Section 54-17-801. 48 (5) "Utility-scale energy generation system" means an electric generation facility that 49has a generating capacity of more than two megawatts and is intermittent, non-dispatchable, or 50controlled by an inverter. 51 Section 2. Section 54-25-102 is enacted to read: 52 54-25-102. Commission rulemaking authority. 53 (1) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the 54commission shall make rules to implement this chapter, including: 55 (a) rules establishing the submission of an electrical power delivery quality plan; 56 (b) rules establishing procedures for the review of an electrical power delivery quality 57plan; Enrolled Copy H.B. 389 - 3 - 58 (c) rules establishing the procedures for the review of the implementation of an 59electrical power delivery quality plan; and 60 (d) any other rules that the commission determines are necessary to protect the public 61interest and implement this chapter. 62 (2) In establishing the procedures and rules described in Subsection (1), the 63commission shall consult with: 64 (a) qualified utilities; 65 (b) utility-scale electricity providers; and 66 (c) other state agencies. 67 Section 3. Section 54-25-201 is enacted to read: 68 Part 2. Electrical Power Delivery Quality Plan 69 54-25-201. Electrical power delivery quality plan for a qualified utility. 70 (1) A qualified utility shall: 71 (a) prepare an electrical power delivery quality plan in accordance with the 72requirements of this chapter; and 73 (b) submit the electrical power delivery quality plan to the commission. 74 (2) An electrical power delivery quality plan under Subsection (1) shall include: 75 (a) a description of the procedures and standards that the qualified utility will use to 76assess an interconnection request to: 77 (i) decrease the risk that the interconnected utility-scale generation facility will 78adversely affect the electrical power delivery quality to other customers on the qualified utility 79lines; and 80 (ii) address adverse effects to the electrical power service quality caused by 81interconnected customer-owned generation systems that are discovered after the time of 82interconnection; 83 (b) a description of the equipment that the qualified utility will use to perform the 84assessment described in Subsection (2)(a); and 85 (c) a description of proposed modifications or upgrades to facilities and preventative H.B. 389 Enrolled Copy - 4 - 86programs that the qualified utility will implement to address any electrical power delivery 87quality issues that do not meet the qualified utility's interconnections policy or relevant national 88standards. 89 (3) (a) The commission may only approve an electrical power delivery quality plan that 90meets the requirements of Subsection (2). 91 (b) If the commission does not approve a proposed electrical power delivery quality 92plan, the commission shall: 93 (i) notify the qualified utility that the proposed electrical power delivery quality plan 94was not approved; and 95 (ii) provide specific recommendations to the qualified utility about changes needed for 96approval of the proposed electrical power delivery quality plan. 97 (4) On or before October 31, 2023, and before October 31 of each year after 2023, the 98commission shall report to the Public Utilities, Energy, and Technology Interim Committee 99regarding a qualified utility's compliance with the qualified utility's electrical power delivery 100quality plan. 101 Section 4. Section 79-6-301 is amended to read: 102 79-6-301. State energy policy. 103 (1) It is the policy of the state that: 104 (a) Utah shall have adequate, reliable, affordable, sustainable, and clean energy 105resources; 106 (b) Utah [will] shall promote the development of: 107 (i) nonrenewable energy resources, including natural gas, coal, oil, oil shale, and oil 108sands; 109 (ii) renewable energy resources, including geothermal, solar, wind, biomass, biofuel, 110and hydroelectric; 111 (iii) nuclear power generation technologies certified for use by the United States 112Nuclear Regulatory Commission including molten salt reactors producing medical isotopes; 113 (iv) alternative transportation fuels and technologies; Enrolled Copy H.B. 389 - 5 - 114 (v) infrastructure to facilitate energy development, diversified modes of transportation, 115greater access to domestic and international markets for Utah's resources, and advanced 116transmission systems; 117 (vi) energy storage, pumped storage, and other advanced energy systems, including 118hydrogen from all sources; 119 (vii) electricity systems that can be controlled at the request of grid operators to meet 120system load demands, to ensure an adequate supply of dispatchable energy generation 121resources; 122 (viii) electricity systems that are stable and capable of serving load without accelerating 123damage to customer equipment; and 124 [(viii)] (ix) increased refinery capacity; 125 (c) Utah [will] shall promote the development of resources and infrastructure sufficient 126to meet the state's growing demand, while contributing to the regional and national energy 127supply, thus reducing dependence on international energy sources; 128 (d) Utah [will] shall promote the development of resources, tools, and infrastructure to 129enhance the state's ability to: 130 (i) respond effectively to significant disruptions to the state's energy generation, energy 131delivery systems, or fuel supplies; and 132 (ii) maintain adequate supply, including reserves of proven and cost-effective 133dispatchable electricity reserves to meet grid demand; 134 (e) Utah [will] shall allow market forces to drive prudent use of energy resources, 135although incentives and other methods may be used to ensure the state's optimal development 136and use of energy resources in the short- and long-term; 137 (f) Utah [will] shall pursue energy conservation, energy efficiency, and environmental 138quality; 139 (g) (i) state regulatory processes should be streamlined to balance economic costs with 140the level of review necessary to ensure protection of the state's various interests; and 141 (ii) where federal action is required, Utah will encourage expedited federal action and H.B. 389 Enrolled Copy - 6 - 142will collaborate with federal agencies to expedite review; 143 (h) Utah [will] shall maintain an environment that provides for stable consumer prices 144that are as low as possible while providing producers and suppliers a fair return on investment, 145recognizing that: 146 (i) economic prosperity is linked to the availability, reliability, and affordability of 147consumer energy supplies; and 148 (ii) investment will occur only when adequate financial returns can be realized; and 149 (i) Utah [will] shall promote training and education programs focused on developing a 150comprehensive understanding of energy, including: 151 (i) programs addressing: 152 (A) energy conservation; 153 (B) energy efficiency; 154 (C) supply and demand; and 155 (D) energy related workforce development; and 156 (ii) energy education programs in grades K-12. 157 (2) State agencies are encouraged to conduct agency activities consistent with 158Subsection (1). 159 (3) A person may not file suit to challenge a state agency's action that is inconsistent 160with Subsection (1).