3rd Sub. H.B. 426
LEGISLATIVE GENERAL COUNSEL
6 Approved for Filing: S. Elder 6
6 02-15-23 7:30 AM 6
H.B. 426
3rd Sub. (Cherry)
Representative Jefferson Moss proposes the following substitute bill:
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; and
13 <creates the Utah Energy Research Grant Program and gives the Office of Energy
14Development the authority to administer the grant program.
15Money Appropriated in this Bill:
16 This bill appropriates in fiscal year 2024:
17 <to Department of Natural Resources -- Utah Energy Research Grant Program, as an
18ongoing appropriation:
19 Cfrom the General Fund, $1,000,000.
20Other Special Clauses:
21 This bill provides a special effective date.
22Utah Code Sections Affected:
23AMENDS:
24 79-6-401, as last amended by Laws of Utah 2022, Chapter 322
25ENACTS:
*HB0426S03* 3rd Sub. (Cherry) H.B. 426 02-15-23 7:30 AM
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26 79-6-403, Utah Code Annotated 1953
27
28Be it enacted by the Legislature of the state of Utah:
29 Section 1. Section 79-6-401 is amended to read:
30 79-6-401. Office of Energy Development -- Creation -- Director -- Purpose --
31Rulemaking regarding confidential information -- Fees -- Transition for employees.
32 (1) There is created an Office of Energy Development in the Department of Natural
33Resources.
34 (2) (a) The energy advisor shall serve as the director of the office or, on or before June
3530, 2029, appoint a director of the office.
36 (b) The director:
37 (i) shall, if the energy advisor appoints a director under Subsection (2)(a), report to the
38energy advisor; and
39 (ii) may appoint staff as funding within existing budgets allows.
40 (c) The office may consolidate energy staff and functions existing in the state energy
41program.
42 (3) The purposes of the office are to:
43 (a) serve as the primary resource for advancing energy and mineral development in the
44state;
45 (b) implement:
46 (i) the state energy policy under Section 79-6-301; and
47 (ii) the governor's energy and mineral development goals and objectives;
48 (c) advance energy education, outreach, and research, including the creation of
49elementary, higher education, and technical college energy education programs;
50 (d) promote energy and mineral development workforce initiatives; and
51 (e) support collaborative research initiatives targeted at Utah-specific energy and
52mineral development.
53 (4) By following the procedures and requirements of Title 63J, Chapter 5, Federal
54Funds Procedures Act, the office may:
55 (a) seek federal grants or loans;
56 (b) seek to participate in federal programs; and 02-15-23 7:30 AM 3rd Sub. (Cherry) H.B. 426
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57 (c) in accordance with applicable federal program guidelines, administer federally
58funded state energy programs.
59 (5) The office shall perform the duties required by Sections 11-42a-106, 59-5-102,
6059-7-614.7, 59-10-1029, 63C-26-202, Part 5, Alternative Energy Development Tax Credit Act,
61and Part 6, High Cost Infrastructure Development Tax Credit Act.
62 (6) (a) For purposes of administering this section, the office may make rules, by
63following Title 63G, Chapter 3, Utah Administrative Rulemaking Act, to maintain as
64confidential, and not as a public record, information that the office receives from any source.
65 (b) The office shall maintain information the office receives from any source at the
66level of confidentiality assigned by the source.
67 (7) The office may charge application, filing, and processing fees in amounts
68determined by the office in accordance with Section 63J-1-504 as dedicated credits for
69performing office duties described in this part.
70 (8) (a) An employee of the office is an at-will employee.
71 (b) For an employee of the office on July 1, 2021, the employee shall have the same
72salary and benefit options the employee had when the office was part of the office of the
73governor.
74 (9) (a) The office shall prepare a strategic energy plan to achieve the state's energy
75policy, including:
76 (i) technological innovation needed to meet future energy demand including:
77 (A) energy production technologies;
78 (B) battery and storage technologies;
79 (C) smart grid technologies;
80 (D) energy efficiency technologies; and
81 (E) any other developing energy technology that will assist the state in meeting energy
82demand;
83 (ii) the state's efficient utilization and development of:
84 (A) nonrenewable energy resources, including natural gas, coal, clean coal, oil, oil
85shale, and oil sands;
86 (B) renewable energy resources, including geothermal, solar, hydrogen, wind, biomass,
87biofuel, and hydroelectric; 3rd Sub. (Cherry) H.B. 426 02-15-23 7:30 AM
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88 (C) nuclear power; and
89 (D) earth minerals;
90 (iii) areas of energy-related academic research;
91 (iv) specific areas of workforce development necessary for an evolving energy
92industry;
93 (v) the development of partnerships with national laboratories; and
94 (vi) a proposed state budget for economic development and investment.
95 (b) In preparing the strategic energy plan, the office shall consult with stakeholders,
96including representatives from:
97 (i) energy companies in the state;
98 (ii) private and public institutions of higher education within the state conducting
99energy-related research; and
100 (iii) other state agencies.
101 (c) On or before the October 2023 interim meeting, the office shall report to the Public
102Utilities Energy and Technology Interim Committee and the Executive Appropriations Interim
103Committee describing:
104 (i) progress towards creation of the strategic energy plan; and
105 (ii) a proposed budget for the office to continue development of the strategic energy
106plan.
107 Section 2. Section 79-6-403 is enacted to read:
108 79-6-403. Utah Energy Research Grant Program.
109 (1) (a) There is created within the office the Utah Energy Research Grant Program.
110 (b) The purpose of the program is to encourage energy-related research within the state
111by providing matching grants to applicants that have received federal or private grants for
112specific ongoing energy-related research projects.
113 (2) (a) An applicant that submits a proposal for a grant to the office shall include
114details in the proposal regarding:
115 (i) the specific ongoing energy-related research project;
116 (ii) information about previously awarded federal and private grants for the specific
117ongoing energy-related research project, including:
118 (A) the amount of the previously awarded federal or private grant; and 02-15-23 7:30 AM 3rd Sub. (Cherry) H.B. 426
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119 (B) the requirements to qualify for the previously awarded federal or private grant; and
120 (iii) other information the office determines necessary to evaluate the proposal.
121 (b) When evaluating a proposal for a grant, the office shall consider:
122 (i) the grant amount requested, which may not exceed the amount of federal or private
123grants the applicant has been awarded;
124 (ii) the extent to which the proposal advances the goals of the state energy policy and
125strategic energy plan;
126 (iii) the extent to which any additional funding sources or existing or planned
127partnerships may benefit the proposal; and
128 (iv) the viability of the proposal.
129 (3) Subject to this Subsection (3), the office may, in accordance with Title 63G,
130Chapter 3, Utah Administrative Rulemaking Act, make rules to establish:
131 (a) eligibility criteria for a grant;
132 (b) the form and process for submitting a proposal to the office for a grant;
133 (c) the process and criteria for determining the priority of applications received;
134 (d) the formula and method for determining a grant amount; and
135 (e) reporting requirements for a grant recipient.
136 (4) On or before October 31 of each year, the office shall provide a written report to the
137Public Utilities, Energy, and Technology Interim Committee regarding:
138 (a) the number of grants and grant amounts awarded under the program;
139 (b) data gathered under the program; and
140 (c) the impact of the program on encouraging energy-related research within the state.
141 Section 3. Appropriation.
142 The following sums of money are appropriated for the fiscal year beginning July 1,
1432023, and ending June 30, 2024. These are additions to amounts previously appropriated for
144fiscal year 2024. Under the terms and conditions of Title 63J, Chapter 1, Budgetary Procedures
145Act, the Legislature appropriates the following sums of money from the funds or accounts
146indicated for the use and support of the government of the state of Utah.
147ITEM 1
148To Department of Natural Resources -- Utah Energy Research Grant Program
149 From General Fund 1,000,000 3rd Sub. (Cherry) H.B. 426 02-15-23 7:30 AM
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150 Schedule of Programs:
151 Utah Energy Research Grant Program 1,000,000
152 Under 63J-1-603 the Legislature intends that the $1,000,000 General Fund
153appropriation for the Utah Energy Research Grant Program shall not lapse at the close of fiscal
154year 2024.
155 Section 4. Effective date.
156 This bill takes effect on July 1, 2023.