2 | 8 | | 1 STATEWIDE ENERGY POLICY AMENDMENTS |
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3 | 9 | | 2 2023 GENERAL SESSION |
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4 | 10 | | 3 STATE OF UTAH |
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5 | 11 | | 4 Chief Sponsor: Jefferson Moss |
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6 | 12 | | 5 Senate Sponsor: Kirk A. Cullimore |
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7 | 13 | | 6 |
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8 | 14 | | 7LONG TITLE |
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9 | 15 | | 8General Description: |
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10 | 16 | | 9 This bill makes changes to the Utah Energy Act. |
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11 | 17 | | 10Highlighted Provisions: |
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12 | 18 | | 11 This bill: |
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13 | 19 | | 12 < requires the Office of Energy Development to prepare a strategic energy plan; and |
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14 | 20 | | 13 <creates the Utah Energy Research Grant Program and gives the Office of Energy |
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15 | 21 | | 14Development the authority to administer the grant program. |
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16 | 22 | | 15Money Appropriated in this Bill: |
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17 | 23 | | 16 This bill appropriates in fiscal year 2024: |
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18 | 24 | | 17 <to Department of Natural Resources -- Utah Energy Research Grant Program, as an |
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19 | 25 | | 18ongoing appropriation: |
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20 | 26 | | 19 Cfrom the General Fund, $1,000,000. |
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21 | 27 | | 20Other Special Clauses: |
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22 | 28 | | 21 This bill provides a special effective date. |
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23 | 29 | | 22Utah Code Sections Affected: |
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24 | 30 | | 23AMENDS: |
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25 | 31 | | 24 79-6-401, as last amended by Laws of Utah 2022, Chapter 322 |
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26 | 32 | | 25ENACTS: |
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32 | 39 | | 30 79-6-401. Office of Energy Development -- Creation -- Director -- Purpose -- |
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33 | 40 | | 31Rulemaking regarding confidential information -- Fees -- Transition for employees. |
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34 | 41 | | 32 (1) There is created an Office of Energy Development in the Department of Natural |
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35 | 42 | | 33Resources. |
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36 | 43 | | 34 (2) (a) The energy advisor shall serve as the director of the office or, on or before June |
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37 | 44 | | 3530, 2029, appoint a director of the office. |
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38 | 45 | | 36 (b) The director: |
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39 | 46 | | 37 (i) shall, if the energy advisor appoints a director under Subsection (2)(a), report to the |
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40 | 47 | | 38energy advisor; and |
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41 | 48 | | 39 (ii) may appoint staff as funding within existing budgets allows. |
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42 | 49 | | 40 (c) The office may consolidate energy staff and functions existing in the state energy |
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43 | 50 | | 41program. |
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44 | 51 | | 42 (3) The purposes of the office are to: |
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45 | 52 | | 43 (a) serve as the primary resource for advancing energy and mineral development in the |
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46 | 53 | | 44state; |
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47 | 54 | | 45 (b) implement: |
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48 | 55 | | 46 (i) the state energy policy under Section 79-6-301; and |
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49 | 56 | | 47 (ii) the governor's energy and mineral development goals and objectives; |
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50 | 57 | | 48 (c) advance energy education, outreach, and research, including the creation of |
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51 | 58 | | 49elementary, higher education, and technical college energy education programs; |
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52 | 59 | | 50 (d) promote energy and mineral development workforce initiatives; and |
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53 | 60 | | 51 (e) support collaborative research initiatives targeted at Utah-specific energy and |
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54 | 61 | | 52mineral development. |
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55 | 62 | | 53 (4) By following the procedures and requirements of Title 63J, Chapter 5, Federal |
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56 | 63 | | 54Funds Procedures Act, the office may: |
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57 | 64 | | 55 (a) seek federal grants or loans; |
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61 | 68 | | 58funded state energy programs. |
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62 | 69 | | 59 (5) The office shall perform the duties required by Sections 11-42a-106, 59-5-102, |
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63 | 70 | | 6059-7-614.7, 59-10-1029, 63C-26-202, Part 5, Alternative Energy Development Tax Credit Act, |
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64 | 71 | | 61and Part 6, High Cost Infrastructure Development Tax Credit Act. |
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65 | 72 | | 62 (6) (a) For purposes of administering this section, the office may make rules, by |
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66 | 73 | | 63following Title 63G, Chapter 3, Utah Administrative Rulemaking Act, to maintain as |
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67 | 74 | | 64confidential, and not as a public record, information that the office receives from any source. |
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68 | 75 | | 65 (b) The office shall maintain information the office receives from any source at the |
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69 | 76 | | 66level of confidentiality assigned by the source. |
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70 | 77 | | 67 (7) The office may charge application, filing, and processing fees in amounts |
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71 | 78 | | 68determined by the office in accordance with Section 63J-1-504 as dedicated credits for |
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72 | 79 | | 69performing office duties described in this part. |
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73 | 80 | | 70 (8) (a) An employee of the office is an at-will employee. |
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74 | 81 | | 71 (b) For an employee of the office on July 1, 2021, the employee shall have the same |
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75 | 82 | | 72salary and benefit options the employee had when the office was part of the office of the |
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76 | 83 | | 73governor. |
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77 | 84 | | 74 (9) (a) The office shall prepare a strategic energy plan to achieve the state's energy |
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78 | 85 | | 75policy, including: |
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79 | | - | 76 (i) technological and infrastructure innovation needed to meet future energy demand |
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80 | | - | 77including: |
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81 | | - | 78 (A) energy production technologies; |
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82 | | - | 79 (B) battery and storage technologies; |
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83 | | - | 80 (C) smart grid technologies; |
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84 | | - | 81 (D) energy efficiency technologies; and |
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85 | | - | 82 (E) any other developing energy technology, energy infrastructure planning, or |
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86 | | - | 83investments that will assist the state in meeting energy demand; |
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87 | | - | 84 (ii) the state's efficient utilization and development of: |
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88 | | - | 85 (A) nonrenewable energy resources, including natural gas, coal, clean coal, hydrogen, H.B. 426 Enrolled Copy |
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| 86 | + | 76 (i) technological Öº and infrastructure »Ö innovation needed to meet future energy |
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| 87 | + | 76ademand including: |
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| 88 | + | 77 (A) energy production technologies; |
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| 89 | + | 78 (B) battery and storage technologies; |
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| 90 | + | 79 (C) smart grid technologies; |
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| 91 | + | 80 (D) energy efficiency technologies; and |
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| 92 | + | 81 (E) any other developing energy technology Öº , energy infrastructure planning, or |
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| 93 | + | 81ainvestments »Ö that will assist the state in meeting energy |
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| 94 | + | 82demand; |
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| 95 | + | 83 (ii) the state's efficient utilization and development of: |
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| 96 | + | 84 (A) nonrenewable energy resources, including natural gas, coal, clean coal, |
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| 97 | + | 84aÖº hydrogen, »Ö oil, oil |
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| 98 | + | 85shale, and oil sands; |
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| 99 | + | 86 (B) renewable energy resources, including geothermal, solar, hydrogen, wind, biomass, |
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| 100 | + | 87biofuel, and hydroelectric; 3rd Sub. (Cherry) H.B. 426 02-15-23 7:30 AM |
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90 | | - | 86oil, oil shale, and oil sands; |
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91 | | - | 87 (B) renewable energy resources, including geothermal, solar, hydrogen, wind, biomass, |
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92 | | - | 88biofuel, and hydroelectric; |
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93 | | - | 89 (C) nuclear power; and |
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94 | | - | 90 (D) earth minerals; |
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95 | | - | 91 (iii) areas of energy-related academic research; |
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96 | | - | 92 (iv) specific areas of workforce development necessary for an evolving energy |
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97 | | - | 93industry; |
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98 | | - | 94 (v) the development of partnerships with national laboratories; and |
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99 | | - | 95 (vi) a proposed state budget for economic development and investment. |
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100 | | - | 96 (b) In preparing the strategic energy plan, the office shall consult with stakeholders, |
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101 | | - | 97including representatives from: |
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102 | | - | 98 (i) energy companies in the state; |
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103 | | - | 99 (ii) private and public institutions of higher education within the state conducting |
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104 | | - | 100energy-related research; and |
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105 | | - | 101 (iii) other state agencies. |
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106 | | - | 102 (c) On or before the October 2023 interim meeting, the office shall report to the Public |
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107 | | - | 103Utilities, Energy, and Technology Interim Committee and the Executive Appropriations |
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108 | | - | 104Interim Committee describing: |
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109 | | - | 105 (i) progress towards creation of the strategic energy plan; and |
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110 | | - | 106 (ii) a proposed budget for the office to continue development of the strategic energy |
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111 | | - | 107plan. |
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112 | | - | 108 Section 2. Section 79-6-403 is enacted to read: |
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113 | | - | 109 79-6-403. Utah Energy Research Grant Program. |
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114 | | - | 110 (1) (a) There is created within the office the Utah Energy Research Grant Program. |
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115 | | - | 111 (b) The purpose of the program is to encourage energy-related research within the state |
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116 | | - | 112by providing matching grants to applicants that have received federal or private grants for |
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117 | | - | 113specific ongoing energy-related research projects. Enrolled Copy H.B. 426 |
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| 102 | + | 88 (C) nuclear power; and |
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| 103 | + | 89 (D) earth minerals; |
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| 104 | + | 90 (iii) areas of energy-related academic research; |
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| 105 | + | 91 (iv) specific areas of workforce development necessary for an evolving energy |
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| 106 | + | 92industry; |
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| 107 | + | 93 (v) the development of partnerships with national laboratories; and |
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| 108 | + | 94 (vi) a proposed state budget for economic development and investment. |
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| 109 | + | 95 (b) In preparing the strategic energy plan, the office shall consult with stakeholders, |
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| 110 | + | 96including representatives from: |
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| 111 | + | 97 (i) energy companies in the state; |
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| 112 | + | 98 (ii) private and public institutions of higher education within the state conducting |
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| 113 | + | 99energy-related research; and |
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| 114 | + | 100 (iii) other state agencies. |
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| 115 | + | 101 (c) On or before the October 2023 interim meeting, the office shall report to the Public |
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| 116 | + | 102Utilities Energy and Technology Interim Committee and the Executive Appropriations Interim |
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| 117 | + | 103Committee describing: |
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| 118 | + | 104 (i) progress towards creation of the strategic energy plan; and |
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| 119 | + | 105 (ii) a proposed budget for the office to continue development of the strategic energy |
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| 120 | + | 106plan. |
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| 121 | + | 107 Section 2. Section 79-6-403 is enacted to read: |
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| 122 | + | 108 79-6-403. Utah Energy Research Grant Program. |
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| 123 | + | 109 (1) (a) There is created within the office the Utah Energy Research Grant Program. |
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| 124 | + | 110 (b) The purpose of the program is to encourage energy-related research within the state |
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| 125 | + | 111by providing matching grants to applicants that have received federal or private grants for |
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| 126 | + | 112specific ongoing energy-related research projects. |
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| 127 | + | 113 (2) (a) An applicant that submits a proposal for a grant to the office shall include |
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| 128 | + | 114details in the proposal regarding: |
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| 129 | + | 115 (i) the specific ongoing energy-related research project; |
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| 130 | + | 116 (ii) information about previously awarded federal and private grants for the specific |
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| 131 | + | 117ongoing energy-related research project, including: |
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| 132 | + | 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 | | - | 114 (2) (a) An applicant that submits a proposal for a grant to the office shall include |
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120 | | - | 115details in the proposal regarding: |
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121 | | - | 116 (i) the specific ongoing energy-related research project; |
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122 | | - | 117 (ii) information about previously awarded federal and private grants for the specific |
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123 | | - | 118ongoing energy-related research project, including: |
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124 | | - | 119 (A) the amount of the previously awarded federal or private grant; and |
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125 | | - | 120 (B) the requirements to qualify for the previously awarded federal or private grant; and |
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126 | | - | 121 (iii) other information the office determines necessary to evaluate the proposal. |
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127 | | - | 122 (b) When evaluating a proposal for a grant, the office shall consider: |
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128 | | - | 123 (i) the grant amount requested, which may not exceed the amount of federal or private |
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129 | | - | 124grants the applicant has been awarded; |
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130 | | - | 125 (ii) the extent to which the proposal advances the goals of the state energy policy and |
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131 | | - | 126strategic energy plan; |
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132 | | - | 127 (iii) the extent to which any additional funding sources or existing or planned |
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133 | | - | 128partnerships may benefit the proposal; and |
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134 | | - | 129 (iv) the viability of the proposal. |
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135 | | - | 130 (3) Subject to this Subsection (3), the office may, in accordance with Title 63G, |
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136 | | - | 131Chapter 3, Utah Administrative Rulemaking Act, make rules to establish: |
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137 | | - | 132 (a) eligibility criteria for a grant; |
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138 | | - | 133 (b) the form and process for submitting a proposal to the office for a grant; |
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139 | | - | 134 (c) the process and criteria for determining the priority of applications received; |
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140 | | - | 135 (d) the formula and method for determining a grant amount; and |
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141 | | - | 136 (e) reporting requirements for a grant recipient. |
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142 | | - | 137 (4) On or before October 31 of each year, the office shall provide a written report to the |
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143 | | - | 138Public Utilities, Energy, and Technology Interim Committee regarding: |
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144 | | - | 139 (a) the number of grants and grant amounts awarded under the program; |
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145 | | - | 140 (b) data gathered under the program; and |
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146 | | - | 141 (c) the impact of the program on encouraging energy-related research within the state. H.B. 426 Enrolled Copy |
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| 134 | + | 119 (B) the requirements to qualify for the previously awarded federal or private grant; and |
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| 135 | + | 120 (iii) other information the office determines necessary to evaluate the proposal. |
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| 136 | + | 121 (b) When evaluating a proposal for a grant, the office shall consider: |
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| 137 | + | 122 (i) the grant amount requested, which may not exceed the amount of federal or private |
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| 138 | + | 123grants the applicant has been awarded; |
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| 139 | + | 124 (ii) the extent to which the proposal advances the goals of the state energy policy and |
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| 140 | + | 125strategic energy plan; |
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| 141 | + | 126 (iii) the extent to which any additional funding sources or existing or planned |
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| 142 | + | 127partnerships may benefit the proposal; and |
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| 143 | + | 128 (iv) the viability of the proposal. |
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| 144 | + | 129 (3) Subject to this Subsection (3), the office may, in accordance with Title 63G, |
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| 145 | + | 130Chapter 3, Utah Administrative Rulemaking Act, make rules to establish: |
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| 146 | + | 131 (a) eligibility criteria for a grant; |
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| 147 | + | 132 (b) the form and process for submitting a proposal to the office for a grant; |
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| 148 | + | 133 (c) the process and criteria for determining the priority of applications received; |
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| 149 | + | 134 (d) the formula and method for determining a grant amount; and |
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| 150 | + | 135 (e) reporting requirements for a grant recipient. |
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| 151 | + | 136 (4) On or before October 31 of each year, the office shall provide a written report to the |
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| 152 | + | 137Public Utilities, Energy, and Technology Interim Committee regarding: |
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| 153 | + | 138 (a) the number of grants and grant amounts awarded under the program; |
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| 154 | + | 139 (b) data gathered under the program; and |
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| 155 | + | 140 (c) the impact of the program on encouraging energy-related research within the state. |
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| 156 | + | 141 Section 3. Appropriation. |
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| 157 | + | 142 The following sums of money are appropriated for the fiscal year beginning July 1, |
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| 158 | + | 1432023, and ending June 30, 2024. These are additions to amounts previously appropriated for |
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| 159 | + | 144fiscal year 2024. Under the terms and conditions of Title 63J, Chapter 1, Budgetary Procedures |
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| 160 | + | 145Act, the Legislature appropriates the following sums of money from the funds or accounts |
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| 161 | + | 146indicated for the use and support of the government of the state of Utah. |
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| 162 | + | 147ITEM 1 |
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| 163 | + | 148To Department of Natural Resources -- Utah Energy Research Grant Program |
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| 164 | + | 149 From General Fund 1,000,000 3rd Sub. (Cherry) H.B. 426 02-15-23 7:30 AM |
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148 | | - | 142 Section 3. Appropriation. |
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149 | | - | 143 The following sums of money are appropriated for the fiscal year beginning July 1, |
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150 | | - | 1442023, and ending June 30, 2024. These are additions to amounts previously appropriated for |
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151 | | - | 145fiscal year 2024. Under the terms and conditions of Title 63J, Chapter 1, Budgetary Procedures |
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152 | | - | 146Act, the Legislature appropriates the following sums of money from the funds or accounts |
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153 | | - | 147indicated for the use and support of the government of the state of Utah. |
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154 | | - | 148ITEM 1 |
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155 | | - | 149To Department of Natural Resources -- Utah Energy Research Grant Program |
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156 | | - | 150 From General Fund 1,000,000 |
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157 | | - | 151 Schedule of Programs: |
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158 | | - | 152 Utah Energy Research Grant Program 1,000,000 |
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159 | | - | 153 Under 63J-1-603 the Legislature intends that the $1,000,000 General Fund |
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160 | | - | 154appropriation for the Utah Energy Research Grant Program shall not lapse at the close of fiscal |
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161 | | - | 155year 2024. |
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162 | | - | 156 Section 4. Effective date. |
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163 | | - | 157 This bill takes effect on July 1, 2023. |
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| 166 | + | 150 Schedule of Programs: |
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| 167 | + | 151 Utah Energy Research Grant Program 1,000,000 |
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| 168 | + | 152 Under 63J-1-603 the Legislature intends that the $1,000,000 General Fund |
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| 169 | + | 153appropriation for the Utah Energy Research Grant Program shall not lapse at the close of fiscal |
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| 170 | + | 154year 2024. |
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| 171 | + | 155 Section 4. Effective date. |
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| 172 | + | 156 This bill takes effect on July 1, 2023. |
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