02-24 09:15 2nd Sub. (Gray) H.B. 241
Colin W. Jack proposes the following substitute bill:
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Solar Power Plant Amendments
2025 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Colin W. Jack
Senate Sponsor:
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LONG TITLE
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General Description:
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This bill enacts provisions related to utility scale solar power plants.
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Highlighted Provisions:
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This bill:
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▸ defines terms;
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▸ establishes eligibility criteria for state incentives for solar power plants based on land
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characteristics;
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▸ provides for reduction of incentives for solar power plants located on certain protected
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farmland;
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▸ creates exemptions for solar power plants with existing agreements or incentives;
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▸ requires wildlife impact consultation with state or federal agencies for solar power plants;
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▸ establishes requirements for decommissioning plans and financial assurance for solar
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power plants;
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▸ creates a permitting process for solar power plants;
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▸ requires submission and approval of development plans for solar power plants; and
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▸ provides for severability.
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Money Appropriated in this Bill:
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None
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Other Special Clauses:
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None
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Utah Code Sections Affected:
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ENACTS:
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54-17-1101, Utah Code Annotated 1953
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54-17-1102, Utah Code Annotated 1953
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54-17-1103, Utah Code Annotated 1953
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54-17-1104, Utah Code Annotated 1953
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54-17-1105, Utah Code Annotated 1953
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54-17-1106, Utah Code Annotated 1953
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Be it enacted by the Legislature of the state of Utah:
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Section 1. Section 54-17-1101 is enacted to read:
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54-17-1101 . Definitions.
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As used in this part:
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(1) "Solar power plant" means a utility-scale commercial facility that:
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(a) has a nameplate generating capacity in excess of one megawatt; and
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(b) converts sunlight into electricity for the primary purpose of wholesale or retail sales
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of generated electricity.
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(2)(a) "State incentive" means a tax credit, grant, subsidy, loan, or other form of
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financial support provided by the state or a state agency to promote or support the
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development or operation of a solar power plant.
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(b) "State incentive" includes:
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(i) a clean energy systems tax credit under Section 59-7-614;
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(ii) a tax credit for high cost infrastructure projects under Sections 79-6-602 and
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79-6-603; and
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(iii) an alternative energy development tax credit under Section 79-6-5.
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Section 2. Section 54-17-1102 is enacted to read:
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54-17-1102 . Eligibility for state incentives.
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(1) A solar power plant that is permitted after May 7, 2025, is not eligible to receive state
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incentives if the soil where the project is located is:
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(a) prime farmland, farmland of statewide importance, farmland of local importance, or
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farmland of unique importance, as designated by the Natural Resource Conservation
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Service;
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(b) irrigated cropland; or
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(c) non-irrigated cropland of a capability class one through four, as designated by the
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Natural Resources Conservation Service.
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(2) A proposed solar power plant may receive half of an eligible state incentive if the soil
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where the project is located is non-irrigated cropland of a capability class five or six, as
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designated by the Natural Resources Conservation Service.
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(3) A proposed solar power plant located on grazing land is not eligible to receive state
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incentives if the land produces greater than 1,000 pounds of vegetative production per
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acre in a normal year, according to the Web Soil Survey produced by the Natural
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Resources Conservation Service.
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(4) A proposed solar power plant located on grazing land may receive half of an eligible
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state incentive if the land produces between 500 and 1,000 pounds of vegetative
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production per acre in a normal year, according to the Web Soil Survey produced by the
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Natural Resources Conservation Service.
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(5) Pursuant to Subsection 17D-3-103(2), a conservation district may make a
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recommendation to the Office of Energy Development to exempt a solar power plant
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from the eligibility limitations described in Subsections (1) through (4).
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(6) If a solar power plant is partially located on land described in Subsection (1)(a), the total
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amount of state incentives available to the solar power plant shall be reduced by the
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same percentage as the percentage of the solar power plant's total area that overlaps with
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the described land.
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(7) This section does not apply to a solar power plant that:
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(a) holds a position in an interconnection queue prior to January 1, 2025;
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(b) is subject to a signed commercial agreement to provide power that was executed
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prior to January 1, 2025; or
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(c) meets the requirements for, or is receiving, a state incentive prior to May 7, 2025.
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Section 3. Section 54-17-1103 is enacted to read:
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54-17-1103 . Consultation requirements.
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The owner or operator of a solar power plant shall consult with the Division of Wildlife
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Resources or United States Fish and Wildlife Service regarding how the solar power plant
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could potentially impact wildlife on affected land.
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Section 4. Section 54-17-1104 is enacted to read:
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54-17-1104 . Decommissioning plan.
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(1) An owner of a solar power plant that is permitted after May 7, 2025, shall:
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(a) place financial assurance with the appropriate local jurisdiction, state entity, or land
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owner in accordance with Section 11-17-12 in the form of:
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(i) a bond;
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(ii) a parent company guarantee;
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(iii) an irrevocable letter of credit; or
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(iv) an alternate form of financial security;
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(b) ensure the amount of financial security is not less than the estimated cost of
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decommissioning and reclaiming the solar power plant, after deducting reasonable
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salvage value, as calculated by:
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(i) a third party with expertise in decommissioning, hired by the owner and agreed to
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by the appropriate local jurisdiction; and
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(ii) if required by the appropriate local jurisdiction, an engineer registered with the
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state;
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(c) create and update a decommissioning and reclamation plan every five years from the
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initial commercial operating date of the solar power plant that:
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(i) incorporates changes resulting from inflation or changes in total cost estimates;
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(ii) specifies the condition to which the site must be returned, unless otherwise
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specified and agreed upon by the property owner and appropriate local jurisdiction;
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(iii) requires removal of materials, including steel piles, concrete foundations, and
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buried cabling, to a depth of four feet below the surface, unless otherwise
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specified in the plan due to local permitting requirements; and
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(iv) addresses vegetation and soil restoration, based on environmental field surveys
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and site characterizations conducted before construction, unless otherwise
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specified in the plan due to local permitting requirements;
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(d) in the case of cessation of operation, abandonment, or damage of the solar power
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plant:
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(i) rectify any deficiency within 90 days after receiving written notice from the
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appropriate local jurisdiction by certified mail; or
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(ii) provide a written plan to the appropriate local jurisdiction with an amended cure
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date if 90 days is insufficient due to circumstances beyond the owner's control; and
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(e) if seeking to repower the solar power plant at the end of the initial permitted use:
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(i) complete necessary local permitting and approval requirements within 18 months
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before decommissioning requirements or penalties are incurred; or
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(ii) obtain an extension from the local permitting authority.
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(2) As a condition of the permit, the decommissioning plan shall be approved by the
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appropriate local jurisdiction's governing body before an owner commences construction
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on the solar power plant project site.
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Section 5. Section 54-17-1105 is enacted to read:
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54-17-1105 . Permit application and review.
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(1) A person may not construct a solar power plant without first applying for and receiving
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from the governing body of the appropriate local jurisdiction:
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(a) a conditional use permit;
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(b) a grading permit;
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(c) a building permit; and
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(d) any other permit required by the local jurisdiction.
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(2) An application for constructing a solar power plant shall specify how the location and
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design standards will be met.
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(3) After receiving the permits required under Subsection (1), but before commencing
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construction of a solar power plant, the owner shall submit to the appropriate local
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jurisdiction for review and approval:
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(a) site and development plans that identify:
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(i) all existing and proposed structures;
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(ii) setbacks;
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(iii) access routes;
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(iv) utilities;
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(v) drainage pathways; and
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(vi) areas of existing vegetation and proposed vegetation removal; and
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(b) a comprehensive decommissioning plan that complies with Section 54-17-1104.
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(4) The local jurisdiction may not unreasonably withhold approval of the plans and
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documentation required under Subsection (3).
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Section 6. Section 54-17-1106 is enacted to read:
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54-17-1106 . Severability.
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If any provision of this part or the application of any provision to any person or
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circumstance is held invalid, the remainder of this part shall be given effect without the invalid
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provision or application.
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Section 7. Effective date.
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This bill takes effect on May 7, 2025.
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