H.B. 426
LEGISLATIVE GENERAL COUNSEL
6 Approved for Filing: S. Elder 6
6 02-08-23 4:04 PM 6
H.B. 426
1 STATEWIDE ENERGY POLICY AMENDMENTS
2 2023 GENERAL SESSION
3 STATE OF UTAH
4 Chief Sponsor: Jefferson Moss
5 Senate Sponsor: ____________
6
7LONG TITLE
8General Description:
9 This bill makes changes to the Utah Energy Act.
10Highlighted Provisions:
11 This bill:
12 < requires the Office of Energy Development to prepare a strategic energy plan;
13 <creates the Utah Energy Research Grant Program and gives the Office of Energy
14Development the authority to administer the grant program; and
15 <creates the Utah Energy Research Fund.
16Money Appropriated in this Bill:
17 This bill appropriates in fiscal year 2024:
18 <to Department of Natural Resources -- Office of Energy Development -- Utah
19Energy Resource Fund, as a one-time appropriation:
20 Cfrom the General Fund, $1,000,000.
21Other Special Clauses:
22 This bill provides a special effective date.
23Utah Code Sections Affected:
24AMENDS:
25 79-6-401, as last amended by Laws of Utah 2022, Chapter 322
26ENACTS:
27 79-6-403, Utah Code Annotated 1953
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28 79-6-404, Utah Code Annotated 1953
29
30Be it enacted by the Legislature of the state of Utah:
31 Section 1. Section 79-6-401 is amended to read:
32 79-6-401. Office of Energy Development -- Creation -- Director -- Purpose --
33Rulemaking regarding confidential information -- Fees -- Transition for employees.
34 (1) There is created an Office of Energy Development in the Department of Natural
35Resources.
36 (2) (a) The energy advisor shall serve as the director of the office or, on or before June
3730, 2029, appoint a director of the office.
38 (b) The director:
39 (i) shall, if the energy advisor appoints a director under Subsection (2)(a), report to the
40energy advisor; and
41 (ii) may appoint staff as funding within existing budgets allows.
42 (c) The office may consolidate energy staff and functions existing in the state energy
43program.
44 (3) The purposes of the office are to:
45 (a) serve as the primary resource for advancing energy and mineral development in the
46state;
47 (b) implement:
48 (i) the state energy policy under Section 79-6-301; and
49 (ii) the governor's energy and mineral development goals and objectives;
50 (c) advance energy education, outreach, and research, including the creation of
51elementary, higher education, and technical college energy education programs;
52 (d) promote energy and mineral development workforce initiatives; and
53 (e) support collaborative research initiatives targeted at Utah-specific energy and
54mineral development.
55 (4) By following the procedures and requirements of Title 63J, Chapter 5, Federal
56Funds Procedures Act, the office may:
57 (a) seek federal grants or loans;
58 (b) seek to participate in federal programs; and 02-08-23 4:04 PM H.B. 426
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59 (c) in accordance with applicable federal program guidelines, administer federally
60funded state energy programs.
61 (5) The office shall perform the duties required by Sections 11-42a-106, 59-5-102,
6259-7-614.7, 59-10-1029, 63C-26-202, Part 5, Alternative Energy Development Tax Credit Act,
63and Part 6, High Cost Infrastructure Development Tax Credit Act.
64 (6) (a) For purposes of administering this section, the office may make rules, by
65following Title 63G, Chapter 3, Utah Administrative Rulemaking Act, to maintain as
66confidential, and not as a public record, information that the office receives from any source.
67 (b) The office shall maintain information the office receives from any source at the
68level of confidentiality assigned by the source.
69 (7) The office may charge application, filing, and processing fees in amounts
70determined by the office in accordance with Section 63J-1-504 as dedicated credits for
71performing office duties described in this part.
72 (8) (a) An employee of the office is an at-will employee.
73 (b) For an employee of the office on July 1, 2021, the employee shall have the same
74salary and benefit options the employee had when the office was part of the office of the
75governor.
76 (9) (a) The office shall prepare a strategic energy plan to achieve the state's energy
77policy, including:
78 (i) technological innovation needed to meet future energy demand including:
79 (A) energy production technologies;
80 (B) battery and storage technologies;
81 (C) smart grid technologies;
82 (D) energy efficiency technologies; and
83 (E) any other developing energy technology that will assist the state in meeting energy
84demand;
85 (ii) the state's efficient utilization and development of:
86 (A) nonrenewable energy resources, including natural gas, coal, clean coal, oil, oil
87shale, and oil sands;
88 (B) renewable energy resources, including geothermal, solar, wind, biomass, biofuel,
89and hydroelectric; H.B. 426 02-08-23 4:04 PM
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90 (C) nuclear power; and
91 (D) earth minerals;
92 (iii) areas of energy-related academic research;
93 (iv) specific areas of workforce development necessary for an evolving energy
94industry;
95 (v) the development of partnerships with national laboratories; and
96 (vi) a proposed state budget for economic development and investment.
97 (b) In preparing the strategic energy plan, the office shall consult with stakeholders,
98including representatives from:
99 (i) energy companies in the state;
100 (ii) private and public institutions of higher education within the state conducting
101energy-related research; and
102 (iii) other state agencies.
103 (c) On or before the October 2023 interim meeting, the office shall report to the Public
104Utilities Energy and Technology Interim Committee and the Executive Appropriations Interim
105Committee describing:
106 (i) progress towards creation of the strategic energy plan; and
107 (ii) a proposed budget for the office to continue development of the strategic energy
108plan.
109 Section 2. Section 79-6-403 is enacted to read:
110 79-6-403. Utah Energy Research Fund.
111 (1) There is created within the General Fund a restricted account known as the "Utah
112Energy Research Fund."
113 (2) The account shall consist of:
114 (a) appropriations from the Legislature; and
115 (b) interest and earnings from the account.
116 (3) Subject to appropriation from the Legislature, money from the account shall be
117used by the office to provide grants described in Section 79-6-404.
118 Section 3. Section 79-6-404 is enacted to read:
119 79-6-404. Utah Energy Research Grant Program.
120 (1) (a) There is created within the office the Utah Energy Research Grant Program. 02-08-23 4:04 PM H.B. 426
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121 (b) The purpose of the program is to encourage energy-related research within the state
122by providing matching grants to applicants that have received federal or private grants for
123specific ongoing energy-related research projects.
124 (2) (a) An applicant that submits a proposal for a grant to the office shall include
125details in the proposal regarding:
126 (i) the specific ongoing energy-related research project;
127 (ii) information about previously awarded federal and private grants for the specific
128ongoing energy-related research project, including:
129 (A) the amount of the previously awarded federal or private grant; and
130 (B) the requirements to qualify for the previously awarded federal or private grant; and
131 (iii) other information the office determines necessary to evaluate the proposal.
132 (b) When evaluating a proposal for a grant, the office shall consider:
133 (i) the grant amount requested, which may not exceed the amount of federal or private
134grants the applicant has been awarded;
135 (ii) the extent to which the proposal advances the goals of the state energy policy and
136strategic energy plan;
137 (iii) the extent to which any additional funding sources or existing or planned
138partnerships may benefit the proposal; and
139 (iv) the viability of the proposal.
140 (3) Subject to this Subsection (3), the office may, in accordance with Title 63G,
141Chapter 3, Utah Administrative Rulemaking Act, make rules to establish:
142 (a) eligibility criteria for a grant;
143 (b) the form and process for submitting a proposal to the office for a grant;
144 (c) the process and criteria for determining the priority of applications received;
145 (d) the formula and method for determining a grant amount; and
146 (e) reporting requirements for a grant recipient.
147 (4) On or before October 31 of each year, the office shall provide a written report to the
148Public Utilities, Energy, and Technology Interim Committee regarding:
149 (a) the number of grants and grant amounts awarded under the program;
150 (b) data gathered under the program; and
151 (c) the impact of the program on encouraging energy-related research within the state. H.B. 426 02-08-23 4:04 PM
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152 Section 4. Appropriation.
153 The following sums of money are appropriated for the fiscal year beginning July 1,
1542023, and ending June 30, 2024. These are additions to amounts previously appropriated for
155fiscal year 2024. Under the terms and conditions of Title 63J, Chapter 1, Budgetary Procedures
156Act, the Legislature appropriates the following sums of money from the funds or accounts
157indicated for the use and support of the government of the state of Utah.
158ITEM 1
159To Department of Natural Resources -- Utah Energy Research Fund
160 From General Fund, One time 1,000,000
161 Schedule of Programs:
162 Utah Energy Research Fund 1,000,000
163ITEM 2
164To Department of Natural Resources -- Office of Energy Development
165 From General Fund Restricted -- Utah Energy Research Fund, One-time 1,000,000
166 Schedule of Programs:
167 Office of Energy Development 1,000,000
168 Section 5. Effective date.
169 This bill takes effect on July 1, 2023.