Utah 2025 Regular Session

Utah Senate Bill SB0132 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	Enrolled Copy S.B. 132
	1	+	03-07 07:32 5th Sub. (Gray) S.B. 132
	2	+	Colin W. Jack proposes the following substitute bill:
2	3		1
3	4		Electric Utility Amendments
4	5		2025 GENERAL SESSION
5	6		STATE OF UTAH
6	7		Chief Sponsor: Scott D. Sandall
7	8		House Sponsor: Colin W. Jack
8	9		2
9	10
10	11		3
11	12		LONG TITLE
12	13		4
13	14		General Description:
14	15		5
15	16		This bill creates requirements for providing electrical service to large-scale electrical loads.
16	17		6
17	18		Highlighted Provisions:
18	19		7
19	20		This bill:
20	21		8
21	22		▸ defines terms;
22	23		9
23	24		▸ establishes alternative processes for providing electric service to customers with large
24	25		10
25	26		electrical loads;
26	27		11
27	28		▸ exempts service provided under this chapter from certain rate regulation requirements
28	29		12
29	30		while maintaining safety and reliability standards;
30	31		13
31	32		▸ creates procedures for submitting, evaluating, and contracting for large-scale electrical
32	33		14
33	34		service requests;
34	35		15
35	36		▸ establishes requirements for qualified electric utilities and large-scale generation
36	37		16
37	38		providers serving large load customers;
38	39		17
39	40		▸ creates accounting and operational transparency requirements to protect retail customers;
40	41		18
41	42		▸ establishes a framework for closed private generation systems and connected generation
42	43		19
43	44		systems;
44	45		20
45	46		▸ requires the Public Service Commission (commission) to investigate the feasibility of a
46	47		21
47	48		large load flexible tariff; and
48	49		22
49	50		▸ requires the commission to conduct periodic reviews of the program and report to the
50	51		23
51	52		Legislature.
52	53		24
53	54		Money Appropriated in this Bill:
54	55		25
55	56		None
56	57		26
57	58		Other Special Clauses:
58	59		27
59		-	None ~~S.B. 132 Enrolled Copy~~
	60	+	None
60	61		28
61	62		Utah Code Sections Affected:
	63	+	5th Sub. S.B. 132 5th Sub. (Gray) S.B. 132 03-07 07:32
62	64		29
63	65		AMENDS:
64	66		30
65	67		63G-6a-107.6, as last amended by Laws of Utah 2024, Chapters 291, 522
66	68		31
67	69		ENACTS:
68	70		32
69	71		54-26-101, Utah Code Annotated 1953
70	72		33
71	73		54-26-102, Utah Code Annotated 1953
72	74		34
73	75		54-26-201, Utah Code Annotated 1953
74	76		35
75	77		54-26-202, Utah Code Annotated 1953
76	78		36
77	79		54-26-301, Utah Code Annotated 1953
78	80		37
79	81		54-26-301.5, Utah Code Annotated 1953
80	82		38
81	83		54-26-302, Utah Code Annotated 1953
82	84		39
83	85		54-26-401, Utah Code Annotated 1953
84	86		40
85	87		54-26-402, Utah Code Annotated 1953
86	88		41
87	89		54-26-501, Utah Code Annotated 1953
88	90		42
89	91		54-26-502, Utah Code Annotated 1953
90	92		43
91	93		54-26-503, Utah Code Annotated 1953
92	94		44
93	95		54-26-504, Utah Code Annotated 1953
94	96		45
95	97		54-26-505, Utah Code Annotated 1953
96	98		46
97	99		54-26-601, Utah Code Annotated 1953
98	100		47
99	101		54-26-602, Utah Code Annotated 1953
100	102		48
101	103		54-26-701, Utah Code Annotated 1953
102	104		49
103	105		54-26-801, Utah Code Annotated 1953
104	106		50
105	107		54-26-802, Utah Code Annotated 1953
106	108		51
107	109		54-26-901, Utah Code Annotated 1953
108	110		52
109	111
110	112		53
111	113		Be it enacted by the Legislature of the state of Utah:
112	114		54
113	115		Section 1. Section 54-26-101 is enacted to read:
114	116		55
115	117
116	118		CHAPTER 26. LARGE-SCALE ELECTRIC SERVICE REQUIREMENTS
117	119		56
118	120
119	121		Part 1. General Provisions
120	122		57
121	123		54-26-101 . Definitions.
122	124		58
123	125		As used in this chapter:
124	126		59
125	127		(1) "Closed private generation system" means electric generating facilities and associated
126	128		60
127	129		transmission infrastructure that:
128		-	- 2 - Enrolled Copy S.B. 132
129	130		61
130	131		(a) is not connected to and operates independently from the transmission system of a
	132	+	- 2 - 03-07 07:32 5th Sub. (Gray) S.B. 132
131	133		62
132	134		qualified electric utility, cooperative utility, municipal utility, or other utility;
133	135		63
134	136		(b) serves one or more customers with a minimum cumulative electrical demand of 100
135	137		64
136	138		megawatts; and
137	139		65
138	140		(c) serves one or more large load customers through direct connection.
139	141		66
140	142		(2) "Connected generation system" means electric generating facilities and associated
141	143		67
142	144		transmission infrastructure that:
143	145		68
144	146		(a) is connected to and operates in conjunction with the transmission system of a
145	147		69
146	148		qualified electric utility;
147	149		70
148	150		(b) serves one or more large load customers through connection to the transmission
149	151		71
150		-	system of a qualified electric utility; and
	152	+	system of a qualified electric utility, and
151	153		72
152	154		(c) except as provided in a large load contract, operates independent of the generation
153	155		73
154	156		resources of any qualified electric utility, cooperative utility, municipal utility, or
155	157		74
156	158		other utility.
157	159		75
158	160		(3) "Evaluation" means an assessment that:
159	161		76
160	162		(a) evaluates the impact of a large-scale service request on a qualified electric utility's
161	163		77
162	164		systems;
163	165		78
164	166		(b) identifies any necessary:
165	167		79
166	168		(i) system modifications or upgrades to the qualified electric utility's system to
167	169		80
168	170		provide service as requested in a large-scale service request;
169	171		81
170	172		(ii) generation capacity; or
171	173		82
172	174		(iii) transmission service requests;
173	175		83
174	176		(c) provides cost estimates for any required improvements; and
175	177		84
176	178		(d) establishes an estimated timeline for implementing any necessary system changes.
177	179		85
178	180		(4) "Large load contract" means a large load construction contract or a large load service
179	181		86
180	182		contract.
181	183		87
182	184		(5) "Large load construction contract" means a contract for the construction of large load
183	185		88
184	186		facilities between:
185	187		89
186	188		(a) a qualified electric utility or a large-scale generation provider; and
187	189		90
188	190		(b) a large load customer.
189	191		91
190	192		(6) "Large load customer" means a current or potential customer in the service territory of a
191	193		92
192	194		qualified electric utility that:
193	195		93
194	196		(a) requests electric service under a large-scale service request; or
195	197		94
196	198		(b) enters into a private generation contract with a large-scale generation provider.
197		-	- 3 - S.B. 132 Enrolled Copy
198	199		95
199	200		(7) "Large load facilities" means facilities and resources reasonably necessary, as
	201	+	- 3 - 5th Sub. (Gray) S.B. 132 03-07 07:32
200	202		96
201	203		determined in an evaluation, to provide safe and reliable electric service as requested in
202	204		97
203	205		a large-scale service request, including the reasonably allocated share of facilities or
204	206		98
205	207		upgrades necessary to facilitate a transmission request from a qualified electric utility or
206	208		99
207	209		large-scale generation provider necessary to serve a large-scale service request.
208	210		100
209	211		(8) "Large load flexible tariff" means a tariff:
210	212		101
211	213		(a) pursuant to which a large load customer:
212	214		102
213	215		(i) will receive components of electric services from a large-scale service provider; or
214	216		103
215	217		(ii) will reduce demand at periods specified by a large-scale service provider; and
216	218		104
217	219		(b) under which a large load customer receives components of available electric services
218	220		105
219	221		from a qualified electric utility to the extent:
220	222		106
221	223		(i) the qualified electric utility's resources are reasonably expected to be available and
222	224		107
223	225		sufficient; and
224	226		108
225	227		(ii) as determined by:
226	228		109
227	229		(A) agreement with the qualified electric utility; or
228	230		110
229	231		(B) tariffs approved by the commission.
230	232		111
231	233		(9) "Large load incremental costs" means all costs reasonably necessary for:
232	234		112
233	235		(a) the design, engineering, procurement, construction, and completion of:
234	236		113
235	237		(i) large load facilities; and
236	238		114
237	239		(ii) any activities required to provide electric service under a large-scale service
238	240		115
239	241		request; and
240	242		116
241	243		(b) the long-term operation and maintenance of large load facilities for the duration of
242	244		117
243	245		any applicable service contract.
244	246		118
245	247		(10) "Large load service contract" means a contract for the provision of electric service for
246	248		119
247	249		a large-scale service request between:
248	250		120
249	251		(a) a qualified electric utility or a large-scale generation provider; and
250	252		121
251	253		(b) a large load customer.
252	254		122
253	255		(11) "Large-scale generation provider" means an entity that:
254	256		123
255	257		(a) is not a qualified electric utility;
256	258		124
257	259		(b) is registered with the commission in accordance with Section 54-26-501; and
258	260		125
259	261		(c) owns, operates, or contracts for the output of one or more qualifying generation
260	262		126
261	263		resources intended to be used to supply certain retail electric services to a large load
262	264		127
263	265		customer pursuant to a large load contract or a private generation contract.
264	266		128
265	267		(12) "Large-scale service request" means a request submitted to a qualified electric utility
266		-	- 4 - Enrolled Copy S.B. 132
267	268		129
268	269		for:
	270	+	- 4 - 03-07 07:32 5th Sub. (Gray) S.B. 132
269	271		130
270	272		(a) new electric service that is expected to reach a cumulative demand of 100 megawatts
271	273		131
272	274		or greater within five years of the requested initial start date; or
273	275		132
274	276		(b) additional electric service that is expected to increase a customer's total service level
275	277		133
276	278		by 100 megawatts or greater within five years of the requested start date for the
277	279		134
278	280		additional service.
279	281		135
280	282		(13) "Private generation contract" means a contract for the provision of electric service
281	283		136
282	284		through a closed private generation system between:
283	285		137
284	286		(a) a large-scale generation provider; and
285	287		138
286	288		(b) a large load customer requesting new electric service that is expected to reach a
287	289		139
288	290		cumulative demand of 100 megawatts or greater within five years of the requested
289	291		140
290	292		initial start date.
291	293		141
292	294		(14) "Qualified electric utility" means a large-scale electric utility.
293	295		142
294	296		(15) "Qualifying generation resources" means one or more electric generating resources
295	297		143
296	298		that, in combination:
297	299		144
298	300		(a) if connected to the transmission system of a qualified electric utility:
299	301		145
300	302		(i) meets or exceeds the resource adequacy standards of the qualified electric utility;
301	303		146
302	304		(ii) includes sufficient resources and capacity to meet all requirements imposed by
303	305		147
304	306		the North American Electric Reliability Corporation and the Western Electricity
305	307		148
306		-	Coordinating Council; and
	308	+	Coordinating Council, and
307	309		149
308	310		(iii) is capable of satisfying the load and electricity requirements of a large load
309	311		150
310	312		customer without drawing on any generation or generation services provided by a
311	313		151
312	314		qualified electric utility, any cooperative utility, municipal utility, or other utility
313	315		152
314	316		except to the extent such services are provided under a large load contract; or
315	317		153
316	318		(b) if not connected to the transmission system of a qualified electric utility:
317	319		154
318	320		(i) is capable of satisfying the load, transmission, and electricity requirements of a
319	321		155
320	322		large load customer without drawing on any generation or services provided by a
321	323		156
322	324		qualified electric utility, any cooperative utility, municipal utility, or other utility;
323	325		157
324	326		and
325	327		158
326	328		(ii) meets any other reliability standards established by the commission.
327	329		159
328	330		(16) "Transmission provider" means an entity that:
329	331		160
330	332		(a) is an affiliate of a qualified electric utility; and
331	333		161
332	334		(b)(i) owns, operates, or controls facilities located in the state that are used for the
333	335		162
334	336		transmission of electric energy at voltages above 100 kilovolts; or
335		-	- 5 - S.B. 132 Enrolled Copy
336	337		163
337	338		(ii) provides transmission service under a Federal Energy Regulatory
	339	+	- 5 - 5th Sub. (Gray) S.B. 132 03-07 07:32
338	340		164
339	341		Commission-approved open access transmission tariff.
340	342		165
341	343		Section 2. Section 54-26-102 is enacted to read:
342	344		166
343	345		54-26-102 . Application.
344	346		167
345	347		(1) The procedures and standards set forth in this chapter shall govern:
346	348		168
347	349		(a) large-scale service requests;
348	350		169
349	351		(b) services sought, provided, or received under either a large-scale service request or a
350	352		170
351	353		private generation service request;
352	354		171
353	355		(c) services provided through closed private generation systems under private generation
354	356		172
355	357		contracts; and
356	358		173
357	359		(d) the review and approval of large load contracts and private generation contracts.
358	360		174
359	361		(2) Electric service provided pursuant to a large-scale service request under this chapter is
360	362		175
361	363		exempt from:
362	364		176
363	365		(a) rate regulation under Section 54-3-1;
364	366		177
365	367		(b) the ratemaking provisions of Section 54-3-4;
366	368		178
367	369		(c) the tariff and schedule filing requirements under Section 54-3-2; and
368	370		179
369	371		(d) any other provision related to the regulation of rates, charges, or classifications of
370	372		180
371	373		service.
372	374		181
373	375		Section 3. Section 54-26-201 is enacted to read:
374	376		182
375	377
376	378		Part 2. Service Request Process
377	379		183
378	380		54-26-201 . Large-scale service request requirements.
379	381		184
380	382		(1) Except for large load customers seeking service under a private generation contract, a
381	383		185
382	384		large load customer seeking service under this chapter shall submit a large-scale service
383	385		186
384	386		request to the qualified electric utility serving the proposed location.
385	387		187
386	388		(2) A large-scale service request shall include:
387	389		188
388	390		(a) the customer's identifying information;
389	391		189
390	392		(b) the proposed location for electric service;
391	393		190
392	394		(c) the requested amount of electric demand in megawatts;
393	395		191
394	396		(d) a proposed service commencement date;
395	397		192
396	398		(e) load profile information, including:
397	399		193
398	400		(i) anticipated annual energy usage;
399	401		194
400	402		(ii) expected hours of operation;
401	403		195
402	404		(iii) seasonal variations;
403	405		196
404	406		(iv) peak demand requirements; and
405		-	- 6 - Enrolled Copy S.B. 132
406	407		197
407	408		(v) any special service requirements;
	409	+	- 6 - 03-07 07:32 5th Sub. (Gray) S.B. 132
408	410		198
409	411		(f) information sufficient to demonstrate the financial capability to complete the large
410	412		199
411	413		load customer's project that is the subject of the large-scale service request; and
412	414		200
413	415		(g) confirmation that the customer will not use the electric service for resale.
414	416		201
415	417		(3) After submitting a large-scale service request and before entering into a large load
416	418		202
417	419		contract, a customer shall:
418	420		203
419	421		(a) ensure that all information submitted under this section remains current; and
420	422		204
421	423		(b) promptly notify the qualified electric utility of any material changes to information
422	424		205
423	425		submitted under this section.
424	426		206
425	427		(4) A large load customer satisfies the requirements of Subsection (1) of this section if the
426	428		207
427	429		large load customer submitted a large-scale service request consistent with the qualified
428	430		208
429	431		electric utility's then-existing requirements to the qualified electric utility prior to May 7,
430	432		209
431	433		2025.
432	434		210
433	435		Section 4. Section 54-26-202 is enacted to read:
434	436		211
435	437		54-26-202 . Service request procedures -- Notice.
436	438		212
437	439		(1) A qualified electric utility that receives a large-scale service request shall:
438	440		213
439	441		(a) acknowledge receipt of the request;
440	442		214
441	443		(b) notify the customer of any missing information within 15 business days after
442	444		215
443	445		beginning to process the request under Subsection (2); and
444	446		216
445	447		(c) complete an evaluation as soon as reasonably practicable after beginning the study
446	448		217
447	449		under Subsection (2), but in no case more than 6 months after beginning the
448	450		218
449	451		evaluation.
450	452		219
451	453		(2) A qualified electric utility shall begin processing large-scale service requests, including
452	454		220
453	455		conducting evaluations, no later than:
454	456		221
455	457		(a) April 1, for requests received after September 30 of the prior year and on or before
456	458		222
457	459		March 31; or
458	460		223
459	461		(b) October 1, for requests received after March 31 and on or before September 30.
460	462		224
461	463		(3) During the evaluation process, the qualified electric utility shall:
462	464		225
463	465		(a) provide the customer with regular updates; and
464	466		226
465	467		(b) notify the customer when the evaluation is completed.
466	468		227
467	469		(4) Within 15 business days after completing an evaluation, the qualified electric utility
468	470		228
469	471		shall provide to the customer a written service proposal that includes:
470	472		229
471	473		(a) whether the qualified electric utility can provide the requested service within the time
472	474		230
473	475		frame required by the customer;
474		-	- 7 - S.B. 132 Enrolled Copy
475	476		231
476	477		(b) the estimated large load incremental costs that will be allocated to the customer,
	478	+	- 7 - 5th Sub. (Gray) S.B. 132 03-07 07:32
477	479		232
478	480		based on the information provided by the customer;
479	481		233
480	482		(c) any required:
481	483		234
482	484		(i) system upgrades;
483	485		235
484	486		(ii) improvements; or
485	487		236
486	488		(iii) transmission service requests;
487	489		237
488	490		(d) the estimated timeline for commencing the requested electric service; and
489	491		238
490	492		(e) the proposed terms and conditions of service, including provisions for addressing
491	493		239
492		-	long-term operation and maintenance costs for large load facilities.
	494	+	long-term operation and maintenance costs for large load facilities..
493	495		240
494	496		(5) A qualified electric utility:
495	497		241
496	498		(a) may charge reasonable fees for costs incurred in:
497	499		242
498	500		(i) evaluating a large-scale service request; and
499	501		243
500	502		(ii) necessary subsequent or related assessments; and
501	503		244
502	504		(b) is not required to begin work on an evaluation until the customer:
503	505		245
504	506		(i) pays applicable fees; and
505	507		246
506	508		(ii) provides the information required to the qualified electric utility to conduct an
507	509		247
508	510		evaluation.
509	511		248
510	512		Section 5. Section 54-26-301 is enacted to read:
511	513		249
512	514
513	515		Part 3. Large Load and Private Generation Contracts
514	516		250
515	517		54-26-301 . Large load contract requirements.
516	518		251
517	519		(1) Electric service for a large-scale service request shall be provided only under one or
518	520		252
519	521		more large load contracts with:
520	522		253
521	523		(a) a qualified electric utility;
522	524		254
523	525		(b) a large-scale generation provider; or
524	526		255
525	527		(c) any combination of Subsections (1)(a) and (1)(b).
526	528		256
527	529		(2) A large load customer shall:
528	530		257
529	531		(a) contract for all of the customer's projected electrical requirements under the
530	532		258
531	533		large-scale service request; and
532	534		259
533	535		(b) maintain contracts with resources or load shedding capabilities sufficient to meet the
534	536		260
535	537		customer's actual electrical requirements at all times.
536	538		261
537	539		(3) A large load contract with a qualified electric utility shall:
538	540		262
539	541		(a) ensure that all large load incremental costs are allocated to and paid by the large load
540	542		263
541	543		customer;
542	544		264
543	545		(b) comply with all system requirements;
544		-	- 8 - Enrolled Copy S.B. 132
545	546		265
546	547		(c) require the large load customer to maintain financial security sufficient to cover the
	548	+	- 8 - 03-07 07:32 5th Sub. (Gray) S.B. 132
547	549		266
548	550		large load customer's obligations;
549	551		267
550	552		(d) specify:
551	553		268
552	554		(i) points of interconnection;
553	555		269
554	556		(ii) power delivery points;
555	557		270
556	558		(iii) the amount of electrical capacity contracted for;
557	559		271
558	560		(iv) the term of service; and
559	561		272
560	562		(v) any arrangements for backup power supply;
561	563		273
562	564		(e) provide curtailment provisions if the large load customer's demand exceeds the
563	565		274
564	566		amount of contractually supported demand;
565	567		275
566	568		(f) identify the incremental generation resources that the qualified electric utility will use
567	569		276
568	570		to serve the large load customer; and
569	571		277
570	572		(g) include provisions addressing the allocation and payment of long-term operation and
571	573		278
572	574		maintenance costs for large load facilities.
573	575		279
574	576		(4) A large load contract with a large-scale generation provider that provides service
575	577		280
576	578		through a connected electrical system shall:
577	579		281
578	580		(a) ensure that all large load incremental costs are allocated to and paid by the large load
579	581		282
580	582		customer;
581	583		283
582	584		(b) comply with all system requirements;
583	585		284
584	586		(c) specify:
585	587		285
586	588		(i) points of interconnection;
587	589		286
588	590		(ii) power delivery points;
589	591		287
590	592		(iii) the amount of electrical capacity contracted for;
591	593		288
592	594		(iv) the term of service; and
593	595		289
594	596		(v) any arrangements for backup power supply; and
595	597		290
596	598		(d) provide curtailment provisions if the large load customer's demand exceeds the
597	599		291
598	600		real-time dispatch of the large-scale generation provider's resources under the large
599	601		292
600	602		load contract, net of transmission losses.
601	603		293
602	604		(5) A qualified electric utility:
603	605		294
604	606		(a) has no duty to serve a large load customer except as explicitly provided in a large
605	607		295
606	608		load contract; and
607	609		296
608	610		(b) is not required to provide backup power to a large load customer except as explicitly
609	611		297
610	612		provided in a large load contract.
611	613		298
612	614		(6) A qualified electric utility may not be required to commence design and construction of
613		-	- 9 - S.B. 132 Enrolled Copy
614	615		299
615	616		large load facilities until after:
	617	+	- 9 - 5th Sub. (Gray) S.B. 132 03-07 07:32
616	618		300
617	619		(a) executing a large load construction contract; and
618	620		301
619	621		(b) obtaining commission approval in accordance with Section 54-26-302.
620	622		302
621	623		(7) A qualified electric utility or large-scale generation provider shall:
622	624		303
623	625		(a) obtain commission approval in accordance with Section 54-26-302 before providing
624	626		304
625	627		electric service under a large load contract; and
626	628		305
627	629		(b) negotiate the terms of a large load contract with a large load customer on a
628	630		306
629	631		case-by-case basis.
630	632		307
631	633		(8) Within 15 business days after executing a large load contract, a person executing the
632	634		308
633	635		contract shall submit an application for approval to the commission for review under
634	636		309
635	637		Section 54-26-302.
636	638		310
637	639		Section 6. Section 54-26-301.5 is enacted to read:
638	640		311
639	641		54-26-301.5 . Private generation contracts.
640	642		312
641	643		A customer seeking to receive electric service through a closed private generation
642	644		313
643	645		system:
644	646		314
645	647		(1) may negotiate directly with a large-scale generation provider; and
646	648		315
647	649		(2) is not required to submit a large-scale service request to a qualified electric utility.
648	650		316
649	651		Section 7. Section 54-26-302 is enacted to read:
650	652		317
651	653		54-26-302 . Commission review -- Approval of contracts.
652	654		318
653	655		(1) A qualified electric utility or a large-scale generation provider shall file an application
654	656		319
655	657		with the commission for approval of a large load contract that includes:
656	658		320
657	659		(a) a copy of the large load contract for which the applicant seeks review and approval;
658	660		321
659	661		and
660	662		322
661	663		(b) evidence sufficient to demonstrate compliance with Subsection (2)(b).
662	664		323
663	665		(2) The commission shall approve a large load contract submitted under Subsection (1) if
664	666		324
665	667		the commission finds by a preponderance of the evidence that:
666	668		325
667	669		(a) the contract complies with the requirements of this chapter;
668	670		326
669	671		(b) the large load customer bears all just and reasonable incremental costs attributable to
670	672		327
671	673		receiving the requested electric service; and
672	674		328
673	675		(c) existing ratepayers do not bear costs justly and reasonably attributable to providing
674	676		329
675	677		electric service for the large load customer.
676	678		330
677	679		(3) Commission review of a large load contract:
678	680		331
679	681		(a) is limited to the requirements described in Subsection (2); and
680	682		332
681	683		(b) does not include review of other contract terms.
682		-	- 10 - Enrolled Copy S.B. 132
683	684		333
684	685		(4) The commission shall approve or disapprove an application submitted under this section
	686	+	- 10 - 03-07 07:32 5th Sub. (Gray) S.B. 132
685	687		334
686	688		within 60 days after the day on which a person files the application.
687	689		335
688	690		(5) The commission may establish rules to expedite the review of applications for approval
689	691		336
690	692		of a large load contract under this chapter.
691	693		337
692	694		Section 8. Section 54-26-401 is enacted to read:
693	695		338
694	696
695	697		Part 4. Service Provider Obligations
696	698		339
697	699		54-26-401 . Qualified electric utility service obligations.
698	700		340
699	701		(1) Subject to Subsection (2), a qualified electric utility has the sole right to provide electric
700	702		341
701	703		service to a large load customer in the qualified electric utility's service territory.
702	704		342
703	705		(2) A qualified electric utility:
704	706		343
705	707		(a) is not required to provide electric service:
706	708		344
707	709		(i) in response to a large-scale service request if:
708	710		345
709	711		(A) the large load customer has not complied with the requirements of this chapter;
710	712		346
711	713		(B) the qualified electric utility cannot provide the requested service within the
712	714		347
713	715		timeframe required by the large-scale service request;
714	716		348
715	717		(C) the large load customer and the qualified electric utility cannot agree upon
716	718		349
717	719		terms for a large load contract;
718	720		350
719	721		(D) the large load customer fails or refuses to comply with the requirements of a
720	722		351
721	723		large load contract; or
722	724		352
723	725		(E) the large load customer is receiving service from a large-scale generation
724	726		353
725	727		provider in accordance with Section 54-26-402; or
726	728		354
727	729		(ii) to a large load customer that receives service pursuant to a private generation
728	730		355
729	731		contract; and
730	732		356
731	733		(b) that does not agree to terms with a large load customer for a large load contract:
732	734		357
733	735		(i) has no right or duty to serve the large load customer;
734	736		358
735	737		(ii) is not required to provide ancillary or backup services to the large load customer;
736	738		359
737	739		and
738	740		360
739	741		(iii) is not required to provide any services to a large-scale generation provider.
740	742		361
741	743		Section 9. Section 54-26-402 is enacted to read:
742	744		362
743	745		54-26-402 . Alternative service requirements.
744	746		363
745	747		(1) A large load customer may enter into a large load contract with a large-scale generation
746	748		364
747	749		provider if:
748	750		365
749	751		(a) a qualified electric utility fails to complete an evaluation or provide a written
750	752		366
751	753		response within the time period specified in Section 54-26-202; or
752		-	- 11 - S.B. 132 Enrolled Copy
753	754		367
754	755		(b) the qualified electric utility and large load customer cannot agree to a large load
	756	+	- 11 - 5th Sub. (Gray) S.B. 132 03-07 07:32
755	757		368
756	758		contract within 90 days after the day on which the large load customer receives the
757	759		369
758	760		evaluation described in Section 54-26-202, unless the qualified electric utility and the
759	761		370
760	762		large load customer mutually agree to a longer period of time.
761	763		371
762	764		(2) After submitting a large-scale service request, a large load customer:
763	765		372
764	766		(a) may negotiate a contract with one or more large-scale generation providers; and
765	767		373
766	768		(b) may not execute a contract with a large-scale generation provider unless the
767	769		374
768	770		conditions described in Subsection (1) are met.
769	771		375
770	772		Section 10. Section 54-26-501 is enacted to read:
771	773		376
772	774
773	775		Part 5. Large-Scale Generation Provider Requirements
774	776		377
775	777		54-26-501 . Large-scale generation provider requirements.
776	778		378
777	779		(1) A large-scale generation provider shall:
778	780		379
779	781		(a) register with the commission before providing service to a large load customer;
780	782		380
781	783		(b) maintain any reasonable technical and financial qualifications required by the
782	784		381
783	785		commission;
784	786		382
785	787		(c) provide service only through qualifying generation resources as required in this part;
786	788		383
787	789		and
788	790		384
789	791		(d) post security:
790	792		385
791	793		(i) as reasonably negotiated with a large load customer;
792	794		386
793	795		(ii) as required by contract with a transmission provider; or
794	796		387
795	797		(iii) as required by the commission for services to be provided by a qualified electric
796	798		388
797	799		utility.
798	800		389
799	801		(2) A large-scale generation provider shall submit to the commission:
800	802		390
801	803		(a) proof of compliance with Subsection (1);
802	804		391
803	805		(b) proof of financial capability as reasonably negotiated with the large load customer;
804	806		392
805	807		(c) the provider's operational history and experience;
806	808		393
807	809		(d) a description of the portfolio of qualifying generation resources the provider intends
808	810		394
809	811		to use to serve the large load customer without reliance on any qualified electric
810	812		395
811	813		utility, cooperative utility, municipal utility, or other utility except as provided under
812	814		396
813	815		a large load contract; and
814	816		397
815	817		(e) documentation of:
816	818		398
817	819		(i) all required permits obtained for generating sources, including any environmental
818	820		399
819	821		permits; and
820	822		400
821	823		(ii) the estimated impact of generating sources on the state implementation plan for
822		-	- 12 - Enrolled Copy S.B. 132
823	824		401
824	825		air quality.
	826	+	- 12 - 03-07 07:32 5th Sub. (Gray) S.B. 132
825	827		402
826	828		Section 11. Section 54-26-502 is enacted to read:
827	829		403
828	830		54-26-502 . Operating requirements -- Registration suspension.
829	831		404
830	832		(1) A large-scale generation provider that fails to satisfy the requirements of this chapter:
831	833		405
832	834		(a) may not initiate new service to a large load customer;
833	835		406
834	836		(b) shall remedy any deficiencies within 90 days after the day on which the deficiency
835	837		407
836	838		arises; and
837	839		408
838	840		(c) may have reasonable conditions imposed by the commission on the provider's
839	841		409
840	842		registration status.
841	843		410
842	844		(2) If the commission suspends or revokes a large-scale generation provider's registration:
843	845		411
844	846		(a) the provider may not continue to provide service to a large load customer after the
845	847		412
846	848		large load customer has been given a reasonable opportunity to secure alternative
847	849		413
848	850		service arrangements; and
849	851		414
850	852		(b) the large load customer may not receive electric service from another large-scale
851	853		415
852	854		generation provider or a qualified electric utility except pursuant to agreement and
853	855		416
854	856		commission approval of the terms of a new large load contract consistent with this
855	857		417
856	858		chapter.
857	859		418
858	860		Section 12. Section 54-26-503 is enacted to read:
859	861		419
860	862		54-26-503 . Transmission requirements.
861	863		420
862	864		(1) If the provision of service to a large load customer requires transmission service:
863	865		421
864	866		(a) the qualified electric utility or the large-scale generation provider shall submit a
865	867		422
866	868		transmission service request to the transmission provider;
867	869		423
868	870		(b) to the fullest extent allowable under applicable federal law and regulations, the
869	871		424
870	872		large-scale generation provider or large load customer shall:
871	873		425
872	874		(i) pay for:
873	875		426
874	876		(A) any interconnection or transmission-related studies;
875	877		427
876	878		(B) any identified interconnection upgrades, transmission upgrades, network
877	879		428
878	880		upgrades, distribution system upgrades, or system upgrades; and
879	881		429
880	882		(C) the transmission service rates in the transmission provider's open access
881	883		430
882	884		transmission tariff; and
883	885		431
884	886		(ii) pay and provide for:
885	887		432
886	888		(A) ancillary services;
887	889		433
888	890		(B) balancing services; and
889	891		434
890	892		(C) backup services.
891		-	- 13 - S.B. 132 Enrolled Copy
892	893		435
893	894		(2) Nothing in this section shall be construed to:
	895	+	- 13 - 5th Sub. (Gray) S.B. 132 03-07 07:32
894	896		436
895	897		(a) conflict with or supersede any applicable federal law, regulation, or order regarding
896	898		437
897	899		transmission cost allocation; or
898	900		438
899	901		(b) require cost allocation methods inconsistent with Federal Energy Regulatory
900	902		439
901	903		Commission requirements or orders.
902	904		440
903	905		(3) The commission shall review transmission cost allocation consistent with federal
904	906		441
905	907		requirements and may establish rules for implementation of this section.
906	908		442
907	909		Section 13. Section 54-26-504 is enacted to read:
908	910		443
909	911		54-26-504 . Closed private generation systems.
910	912		444
911	913		(1)
912	914		445
913	915		A large load customer may enter into a private generation contract for all needed electric
914	916		446
915	917		services from a large-scale generation provider through a closed private generation
916	918		447
917	919		system under terms and conditions acceptable to the large load customer and the
918	920		448
919	921		large-scale generation provider.
920	922		449
921	923		(2) A closed private generation system and a large-scale generation provider that provides
922	924		450
923	925		service on or through a closed private generation system in accordance with this chapter:
924	926		451
925	927		(a) are exempt from commission oversight or regulation as a public utility under this
926	928		452
927	929		title;
928	930		453
929	931		(b) shall ensure all generation, transmission, and related facilities remain wholly
930	932		454
931	933		separate from facilities owned or operated by any qualified electric utility,
932	934		455
933	935		cooperative utility, municipal utility, or other utility except to the extent authorized
934	936		456
935	937		by this part; and
936	938		457
937	939		(c) may connect to or receive services from a qualified electric utility only pursuant to a
938	940		458
939	941		contract approved by the commission and consistent with Section 54-26-505.
940	942		459
941	943		(3) The provision of service to a large load customer on or through a closed private
942	944		460
943	945		generation system shall utilize qualified generation resources.
944	946		461
945	947		(4) The commission may establish rules requiring appropriate notices and warnings
946	948		462
947	949		regarding separation from the utility system.
948	950		463
949	951		Section 14. Section 54-26-505 is enacted to read:
950	952		464
951	953		54-26-505 . Connected generation systems.
952	954		465
953	955		(1) A large load customer may obtain all needed electric services from a large-scale
954	956		466
955	957		generation provider through a connected generation system consistent with this chapter.
956	958		467
957	959		(2) A large-scale generation provider may provide service on or through a connected
958	960		468
959	961		generation system if the provider:
960		-	- 14 - Enrolled Copy S.B. 132
961	962		469
962	963		(a) registers with the commission in accordance with Section 54-26-501;
	964	+	- 14 - 03-07 07:32 5th Sub. (Gray) S.B. 132
963	965		470
964	966		(b) uses only qualifying generation resources;
965	967		471
966	968		(c) maintains sufficient generation capacity to serve all contracted load;
967	969		472
968	970		(d) provides the commission with:
969	971		473
970	972		(i) system design and operational information;
971	973		474
972	974		(ii) emergency response procedures; and
973	975		475
974	976		(iii) notification of any changes in system configuration or operation; and
975	977		476
976	978		(e) maintains commercial liability insurance as required under Section 54-26-602.
977	979		477
978	980		(3) A large-scale generation provider that provides service on or through a connected
979	981		478
980	982		generation system consistent with the requirements of this chapter is exempt from
981	983		479
982	984		commission regulation as a public utility under this title.
983	985		480
984	986		(4) A closed private generation system or a large-scale generation provider that provides
985	987		481
986	988		service through a closed private generation system may connect to the interstate
987	989		482
988	990		transmission system of a transmission provider only if:
989	991		483
990	992		(a) the closed private generation system is interconnected to the interstate transmission
991	993		484
992	994		system pursuant to the transmission provider's Federal Energy Regulatory
993	995		485
994	996		Commission approved open access transmission tariff; and
995	997		486
996	998		(b) the commission determines that the closed private generation system or large-scale
997	999		487
998	1000		generation provider has satisfied the requirements of this chapter for the provision of
999	1001		488
1000	1002		service on or through a connected generation system.
1001	1003		489
1002	1004		(5) A closed private generation system or a large-scale generation provider that provides
1003	1005		490
1004	1006		service through a closed private generation system may receive services from a qualified
1005	1007		491
1006	1008		electric utility only if:
1007	1009		492
1008	1010		(a) the requirements of Subsection (4) are met; and
1009	1011		493
1010	1012		(b) the system or provider has an agreement with the qualified electric utility as
1011	1013		494
1012	1014		approved by the commission.
1013	1015		495
1014	1016		(6) A qualified electric utility:
1015	1017		496
1016	1018		(a) is not required to purchase or accept any power from a connected generation system;
1017	1019		497
1018	1020		and
1019	1021		498
1020	1022		(b) shall accept power from a connected generation system only as explicitly provided in
1021	1023		499
1022	1024		an agreement that has been approved by the commission.
1023	1025		500
1024	1026		Section 15. Section 54-26-601 is enacted to read:
1025	1027		501
1026	1028
1027	1029		Part 6. Customer Requirements and Accounting
1028	1030		502
1029	1031		54-26-601 . Large load customer requirements -- Cost allocation.
1030		-	- 15 - S.B. 132 Enrolled Copy
1031	1032		503
1032	1033		A large load customer shall pay all just and reasonable large load incremental costs
	1034	+	- 15 - 5th Sub. (Gray) S.B. 132 03-07 07:32
1033	1035		504
1034	1036		necessary to receive electric service, including the costs of:
1035	1037		505
1036	1038		(1) generation resources;
1037	1039		506
1038	1040		(2) distribution system upgrades;
1039	1041		507
1040	1042		(3) to the extent permitted by federal law, and, as applicable, approved by the Federal
1041	1043		508
1042	1044		Energy Regulatory Commission:
1043	1045		509
1044	1046		(a) transmission system improvements, including network upgrades; and
1045	1047		510
1046	1048		(b) interconnection facilities;
1047	1049		511
1048	1050		(4) transmission service; and
1049	1051		512
1050	1052		(5) other necessary infrastructure.
1051	1053		513
1052	1054		Section 16. Section 54-26-602 is enacted to read:
1053	1055		514
1054	1056		54-26-602 . Accounting requirements -- Service standards.
1055	1057		515
1056	1058		(1) A large-scale generation provider shall:
1057	1059		516
1058	1060		(a) maintain separate accounting records for all investments, revenues, and expenses
1059	1061		517
1060	1062		associated with large-scale service requests using generally accepted accounting
1061	1063		518
1062	1064		principles;
1063	1065		519
1064	1066		(b) take reasonable measures to ensure costs are properly allocated between large load
1065	1067		520
1066	1068		service and other customers;
1067	1069		521
1068	1070		(c) provide all contracted energy services without reliance on any qualified electric
1069	1071		522
1070	1072		utility, cooperative utility, municipal utility, or other utility except as provided under
1071	1073		523
1072	1074		a large load contract;
1073	1075		524
1074	1076		(d) meet all applicable North American Electric Reliability Corporation standards; and
1075	1077		525
1076	1078		(e) maintain reasonable commercial liability insurance as determined by contract or the
1077	1079		526
1078	1080		commission.
1079	1081		527
1080	1082		(2) A qualified electric utility shall:
1081	1083		528
1082	1084		(a) maintain separate accounting records for all investments, revenues, and expenses
1083	1085		529
1084	1086		associated with large-scale service requests using generally accepted accounting
1085	1087		530
1086	1088		principles; and
1087	1089		531
1088	1090		(b) take reasonable measures to ensure costs are properly allocated between large load
1089	1091		532
1090	1092		service and other operations.
1091	1093		533
1092	1094		(3) All revenues and large load incremental costs associated with a large-scale service
1093	1095		534
1094	1096		request shall be excluded from any rate determinations by the commission.
1095	1097		535
1096	1098		(4) In connection with any rate case or other appropriate proceeding before the commission,
1097	1099		536
1098	1100		a qualified electric utility shall provide:
1099		-	- 16 - Enrolled Copy S.B. 132
1100	1101		537
1101	1102		(a) operational data identifying when and to what extent the incremental generation
	1103	+	- 16 - 03-07 07:32 5th Sub. (Gray) S.B. 132
1102	1104		538
1103	1105		resources identified in a large load contract pursuant to Subsection 54-26-301(3)(f)
1104	1106		539
1105	1107		were dispatched to serve large load customers;
1106	1108		540
1107	1109		(b) an identification of the timing, magnitude, and duration of:
1108	1110		541
1109	1111		(i) the qualified electric utility's dispatch of the resources described in Subsection
1110	1112		542
1111	1113		(4)(a);
1112	1114		543
1113	1115		(ii) any periods in which large load customers' loads exceeded the dispatch of
1114	1116		544
1115	1117		resources described in Subsection (4)(a); and
1116	1118		545
1117	1119		(iii) any periods in which the dispatch of resources described in Subsection (4)(a)
1118	1120		546
1119	1121		exceeded the large load customers' loads;
1120	1122		547
1121	1123		(c) the method by which costs for the provision of electric service from a qualified
1122	1124		548
1123	1125		electric utility to a large load customer will be excluded from rates paid by retail
1124	1126		549
1125	1127		customers; and
1126	1128		550
1127	1129		(d) any other information the commission requires to ensure that the costs associated
1128	1130		551
1129	1131		with service to a large load customer are excluded from the rates paid for by retail
1130	1132		552
1131	1133		customers.
1132	1134		553
1133	1135		(5) A qualified electric utility may not be required to publicly disclose specific revenue
1134	1136		554
1135	1137		information from individual large load customers in any proceeding described in
1136	1138		555
1137	1139		Subsection (4).
1138	1140		556
1139	1141		Section 17. Section 54-26-701 is enacted to read:
1140	1142		557
1141	1143
1142	1144		Part 7. Large Load Flexible Tariffs
1143	1145		558
1144	1146		54-26-701 . Large load flexible tariffs.
1145	1147		559
1146	1148		(1) The commission shall:
1147	1149		560
1148	1150		(a) investigate a large load flexible tariff for a qualified electric utility; and
1149	1151		561
1150	1152		(b) adopt a large load flexible tariff if the commission determines that the tariff is:
1151	1153		562
1152	1154		(i) just and reasonable; and
1153	1155		563
1154	1156		(ii) in the public interest.
1155	1157		564
1156	1158		(2) In conducting an investigation for a large load flexible tariff, the commission shall
1157	1159		565
1158	1160		consider:
1159	1161		566
1160	1162		(a) the conditions and times for the tariff;
1161	1163		567
1162	1164		(b) the means of determining the rates, terms, and conditions pursuant to which a
1163	1165		568
1164	1166		qualified electric utility may provide electric services to a large load customer; and
1165	1167		569
1166	1168		(c) the conditions under which a qualified electric utility may require a large load
1167	1169		570
1168	1170		customer to reduce or eliminate electric usage under the large flexible load tariff.
1169		-	- 17 - S.B. 132 Enrolled Copy
1170	1171		571
1171	1172		Section 18. Section 54-26-801 is enacted to read:
	1173	+	- 17 - 5th Sub. (Gray) S.B. 132 03-07 07:32
1172	1174		572
1173	1175
1174	1176		Part 8. Application and Review
1175	1177		573
1176	1178		54-26-801 . Program duration.
1177	1179		574
1178	1180		The provisions of this chapter apply only to:
1179	1181		575
1180	1182		(1) large load customers, large-scale generation providers or qualified electric utilities
1181	1183		576
1182	1184		which enter into a large load service contract which provides for service to commence
1183	1185		577
1184	1186		on or before December 31, 2034; and
1185	1187		578
1186	1188		(2) large load customers and large-scale generation providers which enter into a private
1187	1189		579
1188	1190		generation contract which provides for service to commence on or before December 31,
1189	1191		580
1190	1192		2034.
1191	1193		581
1192	1194		Section 19. Section 54-26-802 is enacted to read:
1193	1195		582
1194	1196		54-26-802 . Commission review.
1195	1197		583
1196	1198		The commission shall:
1197	1199		584
1198	1200		(1) conduct a review of this chapter before October 31, 2027, and every three years
1199	1201		585
1200	1202		thereafter;
1201	1203		586
1202	1204		(2) conduct an investigation with stakeholder input and public comment and prepare a
1203	1205		587
1204	1206		report that includes:
1205	1207		588
1206	1208		(a) data on program participation;
1207	1209		589
1208	1210		(b) analysis of impacts on electrical rates;
1209	1211		590
1210	1212		(c) assessment of transmission system reliability; and
1211	1213		591
1212	1214		(d) recommendations regarding whether to:
1213	1215		592
1214	1216		(i) extend the program;
1215	1217		593
1216	1218		(ii) modify program requirements; or
1217	1219		594
1218	1220		(iii) allow the program to close to new participants; and
1219	1221		595
1220	1222		(3) provide the report described in Subsection (2) and any recommendations to the Public
1221	1223		596
1222	1224		Utilities, Energy, and Technology Interim Committee.
1223	1225		597
1224	1226		Section 20. Section 54-26-901 is enacted to read:
1225	1227		598
1226	1228
1227	1229		Part 9. Transmission Cost Allocation
1228	1230		599
1229	1231		54-26-901 . Transmission cost allocation.
1230	1232		600
1231	1233		(1) The commission shall:
1232	1234		601
1233	1235		(a) conduct a proceeding to establish rules for the allocation of transmission costs
1234	1236		602
1235	1237		between large load customers and retail customers for large load contracts executed
1236	1238		603
1237	1239		on or after January 1, 2026;
1238		-	- 18 - Enrolled Copy S.B. 132
1239	1240		604
1240	1241		(b) retain a qualified independent consultant with expertise in transmission cost
	1242	+	- 18 - 03-07 07:32 5th Sub. (Gray) S.B. 132
1241	1243		605
1242	1244		allocation methodologies to:
1243	1245		606
1244	1246		(i) analyze potential methodologies for transmission cost allocation, taking into
1245	1247		607
1246	1248		account the factors listed in Subsection (2); and
1247	1249		608
1248	1250		(ii) make recommendations to the commission; and
1249	1251		609
1250	1252		(c) issue a rule no later than January 1, 2026.
1251	1253		610
1252	1254		(2) In developing rules under Subsection (1), the commission shall consider:
1253	1255		611
1254	1256		(a) Federal Energy Regulatory Commission policies and precedents regarding
1255	1257		612
1256	1258		transmission cost allocation;
1257	1259		613
1258	1260		(b) the projected increase in electricity demand from large load customers;
1259	1261		614
1260	1262		(c) the incremental transmission costs required to serve large load customers;
1261	1263		615
1262	1264		(d) the economic development benefits associated with serving large load customers;
1263	1265		616
1264	1266		(e) the need to maintain just and reasonable rates for retail customers;
1265	1267		617
1266	1268		(f) the extent to which new large load facilities are required specifically to serve large
1267	1269		618
1268	1270		load customers;
1269	1271		619
1270	1272		(g) the extent to which large load customers utilize existing transmission infrastructure;
1271	1273		620
1272	1274		(h) methods to apportion costs based on cost causation and system benefits; and
1273	1275		621
1274	1276		(i) any other factors the commission determines are relevant to establishing a fair and
1275	1277		622
1276	1278		reasonable allocation of transmission costs.
1277	1279		623
1278	1280		(3) The commission may establish different cost allocation methodologies based on:
1279	1281		624
1280	1282		(a) the timing of large load customer interconnection;
1281	1283		625
1282	1284		(b) the size of the load being served;
1283	1285		626
1284	1286		(c) the cost causation attributable to various customer classes;
1285	1287		627
1286	1288		(d) the benefits accruing to various customer classes; or
1287	1289		628
1288	1290		(e) other relevant distinctions.
1289	1291		629
1290	1292		(4) Nothing in this section limits the commission's existing authority to determine just and
1291	1293		630
1292	1294		reasonable rates.
1293	1295		631
1294	1296		(5)(a) The commission shall impose and collect a fee from each large load customer that
1295	1297		632
1296	1298		submits a large-scale service request to cover the cost of:
1297	1299		633
1298	1300		(i) retaining qualified independent consultants and experts by the commission, the
1299	1301		634
1300	1302		Division of Public Utilities, and the Office of Consumer Services to evaluate
1301	1303		635
1302	1304		large-scale service requests and large load contracts; and
1303	1305		636
1304	1306		(ii) any other reasonable costs incurred in conducting proceedings and evaluations
1305	1307		637
1306	1308		under this chapter.
1307		-	- 19 - S.B. 132 Enrolled Copy
1308	1309		638
1309	1310		(b) The fee shall be:
	1311	+	- 19 - 5th Sub. (Gray) S.B. 132 03-07 07:32
1310	1312		639
1311	1313		(i) assessed on a semi-annual basis corresponding to the study periods established in
1312	1314		640
1313	1315		Section 54-26-202;
1314	1316		641
1315	1317		(ii) determined based on the anticipated needs given the number and complexity of
1316	1318		642
1317	1319		requests received in each study period; and
1318	1320		643
1319	1321		(iii) proportionately allocated among large load customers with pending requests.
1320	1322		644
1321	1323		(c) All fees collected under this subsection shall be:
1322	1324		645
1323	1325		(i) remitted to the state treasurer;
1324	1326		646
1325	1327		(ii) credited to the Public Utility Regulation Fee Account created in Section 54-5-1.5;
1326	1328		647
1327	1329		and
1328	1330		648
1329	1331		(iii) used exclusively for the purposes described in Subsection (5)(a).
1330	1332		649
1331	1333		Section 21. Section 63G-6a-107.6 is amended to read:
1332	1334		650
1333	1335		63G-6a-107.6 . Exemptions from chapter.
1334	1336		651
1335	1337		(1) Except for this Subsection (1), the provisions of this chapter do not apply to:
1336	1338		652
1337	1339		(a) a public entity's acquisition of a procurement item from another public entity;[ or]
1338	1340		653
1339	1341		(b) a public entity that is not a procurement unit, including the Colorado River Authority
1340	1342		654
1341	1343		of Utah as provided in Section 63M-14-210[.] ; or
1342	1344		655
1343	1345		(c) the retention of experts by:
1344	1346		656
1345	1347		(i) the Public Service Commission under Subsection 54-1-6(1)(a)(iii);
1346	1348		657
1347	1349		(ii) the Division of Public Utilities under Subsection 54-4a-3(2)(b); and
1348	1350		658
1349	1351		(iii) the Office of Consumer Services under Title 54, Chapter 10a, Office of
1350	1352		659
1351	1353		Consumer Services Act.
1352	1354		660
1353	1355		(2) Unless otherwise provided by statute and except for this Subsection (2), the provisions
1354	1356		661
1355	1357		of this chapter do not apply to the acquisition or disposal of real property or an interest
1356	1358		662
1357	1359		in real property.
1358	1360		663
1359	1361		(3) Except for this Subsection (3) and Part 24, Unlawful Conduct and Penalties, the
1360	1362		664
1361	1363		provisions of this chapter do not apply to:
1362	1364		665
1363	1365		(a) funds administered under the Percent-for-Art Program of the Utah Percent-for-Art
1364	1366		666
1365	1367		Act;
1366	1368		667
1367	1369		(b) a grant;
1368	1370		668
1369	1371		(c) medical supplies or medical equipment, including service agreements for medical
1370	1372		669
1371	1373		equipment, obtained by the University of Utah Hospital or the Department of Health
1372	1374		670
1373	1375		and Human Services through a purchasing consortium if:
1374	1376		671
1375	1377		(i) the consortium uses a competitive procurement process; and
1376		-	- 20 - Enrolled Copy S.B. 132
1377	1378		672
1378	1379		(ii) the chief administrative officer of the hospital or the executive director of the
	1380	+	- 20 - 03-07 07:32 5th Sub. (Gray) S.B. 132
1379	1381		673
1380	1382		Department of Health and Human Services, as the case may be, makes a written
1381	1383		674
1382	1384		finding that the prices for purchasing medical supplies and medical equipment
1383	1385		675
1384	1386		through the consortium are competitive with market prices;
1385	1387		676
1386	1388		(d) the purchase of firefighting supplies or equipment by the Division of Forestry, Fire,
1387	1389		677
1388	1390		and State Lands, created in Section 65A-1-4, through the federal General Services
1389	1391		678
1390	1392		Administration or the National Fire Cache system;
1391	1393		679
1392	1394		(e) supplies purchased for resale to the public;
1393	1395		680
1394	1396		(f) activities related to the management of investments by a public entity granted
1395	1397		681
1396	1398		investment authority by law; or
1397	1399		682
1398	1400		(g) activities of the Utah water agent appointed under Section 73-10g-702.
1399	1401		683
1400	1402		(4) This chapter does not supersede the requirements for retention or withholding of
1401	1403		684
1402	1404		construction proceeds and release of construction proceeds as provided in Section 13-8-5.
1403	1405		685
1404	1406		(5) Except for this Subsection (5), the provisions of this chapter do not apply to a
1405	1407		686
1406	1408		procurement unit's hiring a mediator, arbitrator, or arbitration panel member to
1407	1409		687
1408	1410		participate in the procurement unit's dispute resolution efforts.
1409	1411		688
1410	1412		Section 22. Effective Date.
1411	1413		689
1412	1414		This bill takes effect on May 7, 2025.
1413	1415		- 21 -