Enrolled Copy S.B. 187
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Throughput Infrastructure Funding Amendments
2025 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Jerry W. Stevenson
House Sponsor: Casey Snider
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LONG TITLE
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General Description:
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This bill addresses financial assistance that is funded through the Throughput Infrastructure
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Fund.
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Highlighted Provisions:
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This bill:
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▸ modifies the definition of a throughput infrastructure project;
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▸ modifies the Permanent Community Impact Fund Board's authority related to the
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Throughput Infrastructure Fund;
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▸ provides for an award of a loan or grant from the Throughput Infrastructure Fund for
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certain mining activity; and
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▸ makes technical and conforming amendments.
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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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This bill provides a special effective date.
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Utah Code Sections Affected:
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AMENDS:
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35A-8-302, as last amended by Laws of Utah 2021, Chapter 339
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35A-8-308, as last amended by Laws of Utah 2021, Chapter 367
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35A-8-309, as last amended by Laws of Utah 2021, Chapter 367
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Be it enacted by the Legislature of the state of Utah:
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Section 1. Section 35A-8-302 is amended to read:
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35A-8-302 . Definitions. S.B. 187 Enrolled Copy
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As used in this part:
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(1) "Bonus payments" means that portion of the bonus payments received by the United
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States government under the Leasing Act paid to the state under Section 35 of the
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Leasing Act, 30 U.S.C. Sec. 191, together with any interest that had accrued on those
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payments.
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(2) "Impact board" means the Permanent Community Impact Fund Board created under
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Section 35A-8-304.
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(3) "Impact fund" means the Permanent Community Impact Fund established by this
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chapter.
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(4) "Interlocal agency" means a legal or administrative entity created by a subdivision or
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combination of subdivisions under the authority of Title 11, Chapter 13, Interlocal
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Cooperation Act.
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(5) "Leasing Act" means the Mineral Lands Leasing Act of 1920, 30 U.S.C. Sec. 181 et seq.
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(6) "Qualifying sales and use tax distribution reduction" means that, for the calendar year
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beginning on January 1, 2008, the total sales and use tax distributions a city received
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under Section 59-12-205 were reduced by at least 15% from the total sales and use tax
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distributions the city received under Section 59-12-205 for the calendar year beginning
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on January 1, 2007.
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(7)(a) "Planning" means any of the following performed by or on behalf of the state, a
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subdivision, or an interlocal entity:
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(i) a study, analysis, plan, or survey; or
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(ii) activities necessary to obtain a permit or land use approval, including review to
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determine the need, cost, or feasibility of obtaining a permit or land use approval.
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(b) "Planning" includes:
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(i) the preparation of maps and guidelines;
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(ii) land use planning;
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(iii) a study or analysis of:
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(A) the social or economic impacts associated with natural resource development;
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(B) the demand for the transportation of individuals or goods;
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(C) state, regional, and local development and growth;
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(D) population and employment;
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(E) development related to natural resources; and
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(F) as related to any other activity described in this Subsection (7), engineering,
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financial analysis, legal analysis, or any other analysis helpful to the state,
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subdivision, or interlocal agency; and
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(iv) any activity described in this Subsection (7) regardless of whether the activity is
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for a public facility or a public service.
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(8) "Public facility" means a facility:
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(a) in whole or in part, owned, controlled, or operated by the state, a subdivision, or an
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interlocal agency; and
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(b) that serves a public purpose.
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(9)(a) "Public service" means a service that:
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(i) is provided, in whole or in part, by or on behalf of the state, a subdivision, or an
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interlocal agency; and
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(ii) serves a public purpose.
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(b) "Public service" includes:
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(i) a service described in Subsection (9)(a) regardless of whether the service is
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provided in connection with a public facility;
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(ii) the cost of providing a service described in Subsection (9)(a), including
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administrative costs, wages, and legal fees; and
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(iii) a contract with a public postsecondary institution to fund research, education, or
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a public service program.
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(10) "Subdivision" means a county, city, town, county service area, special service district,
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special improvement district, water conservancy district, water improvement district,
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sewer improvement district, housing authority, building authority, school district, or
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public postsecondary institution organized under the laws of this state.
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(11)(a) "Throughput infrastructure project" means the following facilities, whether
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located within, partially within, or outside of the state:
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(i) a bulk commodities ocean terminal;
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(ii) a pipeline for the transportation of liquid or gaseous hydrocarbons;
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(iii) electric transmission lines and ancillary facilities;
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(iv) a shortline freight railroad and ancillary facilities;
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(v) a plant or facility for storing, distributing, or producing hydrogen, including the
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liquification of hydrogen, for use as a fuel in zero emission motor vehicles, for
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electricity generation, or for industrial use;[ or]
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(vi) a plant for the production of zero emission hydrogen fueled trucks[.] ; or
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(vii) a mining facility described in Subsection 35A-8-309(9).
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(b) "Throughput infrastructure project" includes:
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(i) an ownership interest or a joint or undivided ownership interest in a facility;
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(ii) a membership interest in the owner of a facility; or
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(iii) a contractual right, whether secured or unsecured, to use all or a portion of the
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throughput, transportation, or transmission capacity of a facility.
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Section 2. Section 35A-8-308 is amended to read:
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35A-8-308 . Throughput Infrastructure Fund.
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(1) There is created an enterprise fund known as the "Throughput Infrastructure Fund."
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(2) The fund consists of money generated from the following revenue sources:
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(a) [all ]amounts transferred to the fund by statute;
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(b) any voluntary contributions received;
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(c) appropriations made to the fund by the Legislature;[ and]
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(d) [all ] the amounts received from the repayment of loans made by the impact board
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under Section 35A-8-309[.] ; and
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(e) interest or other earnings deposited under Subsection (3).
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(3) The state treasurer shall:
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(a) invest the money in the fund by following the procedures and requirements of Title
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51, Chapter 7, State Money Management Act; and
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(b) deposit [all] the interest or other earnings derived from those investments into the
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fund.
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Section 3. Section 35A-8-309 is amended to read:
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35A-8-309 . Throughput Infrastructure Fund administered by impact board --
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Uses -- Review by board -- Annual report -- First project.
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(1) The impact board shall:
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(a) make grants and loans from the Throughput Infrastructure Fund created in Section
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35A-8-308 for a throughput infrastructure project;
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(b) use money transferred to the Throughput Infrastructure Fund in accordance with
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statute to provide a loan or grant to finance the cost of acquisition or construction of a
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throughput infrastructure project to one or more local political subdivisions,
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including a Utah interlocal agency created under Title 11, Chapter 13, Interlocal
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Cooperation Act;
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(c) administer the Throughput Infrastructure Fund in a manner that will keep a portion of
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the fund revolving;
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(d) determine provisions for repayment of loans;
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(e) establish criteria for awarding loans and grants; and
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(f) establish criteria for determining eligibility for assistance under this section.
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(2) The cost of acquisition or construction of a throughput infrastructure project includes
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amounts for working capital, reserves, transaction costs, and other amounts determined
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by the impact board to be allocable to a throughput infrastructure project.
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(3) The impact board may restructure or forgive all or part of a local political subdivision's
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or interlocal agency's obligation to repay loans for extenuating circumstances.
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(4) To receive assistance under this section, a local political subdivision or an interlocal
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agency shall submit a formal application containing the information that the impact
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board requires.
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(5)(a) The impact board shall:
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(i) review the proposed uses of the Throughput Infrastructure Fund for a loan or grant
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before approving the loan or grant and may condition its approval on whatever
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assurances the impact board considers necessary to ensure that proceeds of the
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loan or grant will be used in accordance with this section;
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(ii) ensure that each loan specifies terms for interest deferments, accruals, and
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scheduled principal repayment; and
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(iii) ensure that repayment terms are evidenced by bonds, notes, or other obligations
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of the appropriate local political subdivision or interlocal agency issued to the
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impact board and payable from the net revenues of a throughput infrastructure
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project.
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(b) An instrument described in Subsection (5)(a)(iii) may be:
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(i) non-recourse to the local political subdivision or interlocal agency; and
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(ii) limited to a pledge of the net revenues from a throughput infrastructure project.
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(6)(a) Subject to the restriction in Subsection (6)(b), the impact board shall allocate from
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the Throughput Infrastructure Fund to the board those amounts that are appropriated
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by the Legislature for the administration of the Throughput Infrastructure Fund.
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(b) The amount described in Subsection (6)(a) may not exceed 2% of the annual receipts
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to the [fund] Throughput Infrastructure Fund.
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(7) The board shall include in the annual written report described in Section 35A-1-109:
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(a) the number and type of loans and grants made under this section; and
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(b) a list of local political subdivisions or interlocal agencies that received assistance
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under this section.
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(8)(a) The first throughput infrastructure project [considered] funded by the impact board
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shall be a bulk commodities ocean terminal project[.] financed through a mixture of
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grant and loans, of which no less than 20% of the project costs funded by the impact
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board is grants.
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(b) Upon receipt of an application from an interlocal agency [created for the sole
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purpose of undertaking a throughput infrastructure project that is] for a bulk
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commodities ocean terminal project, the impact board shall:
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(i) grant up to 2% of the money in the Throughput Infrastructure Fund to the
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interlocal agency to pay or reimburse costs incurred by the interlocal agency
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preliminary to its acquisition of the throughput infrastructure project; and
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(ii) fund the interlocal agency's application if the application meets all criteria
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established by the impact board.
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(9) Notwithstanding Subsection (8) and following the procedures of this section, the impact
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board may issue a grant or loan for a throughput infrastructure project other than a bulk
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commodities ocean terminal project if the throughput infrastructure project:
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(a) is funded from the interest or other earnings deposited into the Throughput
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Infrastructure Fund;
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(b) is applied for by a political subdivision or interlocal agency to be distributed to a
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private entity described in Subsection (9)(c); and
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(c) is engaged in by a private entity if the private entity:
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(i) has the required permits to engage in mining fluorspar or gallium;
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(ii) will engage in the mining activity in a community within the state that is
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economically impacted by the Leasing Act;
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(iii) will draw money from the loan or grant by no later than two years from the day
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on which the impact board awards the loan or grant; and
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(iv) agrees to reimburse the Throughput Infrastructure Fund in staggered payments
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during a period beginning three years from the day on which the impact board
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approves the loan or grant and ending seven years from the day on which the
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impact board approves the loan or grant.
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Section 4. Effective Date.
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This bill takes effect:
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(1) except as provided in Subsection (2), May 7, 2025; or
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(2) if approved by two-thirds of all members elected to each house:
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(a) upon approval by the governor;
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(b) without the governor's signature, the day following the constitutional time limit of
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Utah Constitution, Article VII, Section 8; or
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(c) in the case of a veto, the date of veto override.
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