Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 70 (2025GS)

Sponsor

Rep. Walter, R. Neil

Final action

Governor Signed 3/24/2025

Outcome

Became law — signed by Gov. Spencer J. Cox

Summary

What it does

• This bill:
• defines terms;
• prohibits a project entity from:
• altering facilities that provide power to station service;
• disconnecting from or modifying existing interconnections and critical switchyard equipment; and
• taking actions that would require a new plant owner to make an interconnection request; and
• creates the Utah Energy Council (council);
• establishes council membership and duties;
• provides authority for the council to manage decommissioned electrical generation facilities;
• requires the council to select facility operators through a competitive process;
• establishes minimum qualifications and criteria for facility operators;
• repeals provisions related to the Decommissioned Asset Disposition Authority; and
• makes technical changes.

Every vote on this bill

Bill text

24
11-13-318
11-13-320
19-2-109.4
79-6-407
79-6-408
79-6-1101
79-6-1102
79-6-1103
79-6-1104
11-13-318
11-13-320
19-2-109.4
79-6-407
79-6-408
79-6-1101
79-6-1102
79-6-1103
79-6-1104
9
0
Decommissioned Asset Disposition Amendments
2025 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: R. Neil Walter
Senate Sponsor: Derrin R. Owens
LONG TITLE
General Description:
This bill makes changes to the requirements related to the decommissioning and disposal of 
electrical generation facilities and equipment by a project entity.
Highlighted Provisions:
This bill:
defines terms;
prohibits a project entity from:
altering facilities that provide power to station service;
disconnecting from or modifying existing interconnections and critical switchyard 
equipment; and
taking actions that would require a new plant owner to make an interconnection 
request;
creates the Utah Energy Council (council);
establishes council membership and duties;
provides authority for the council to manage decommissioned electrical generation 
facilities;
requires the council to select facility operators through a competitive process;
establishes minimum qualifications and criteria for facility operators;
repeals provisions related to the Decommissioned Asset Disposition Authority; and 
makes technical changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
This bill provides a special effective date.
Utah Code Sections Affected:
AMENDS:
11-13-318
, 
Effective 
upon governor's approval
 as last amended by Laws of Utah 2024, 
Third Special Session, Chapter 4
11-13-320
, 
Effective 
upon governor's approval
 as last amended by Laws of Utah 2024, 
Third Special Session, Chapter 4
19-2-109.4
, 
Effective 
upon governor's approval
 as last amended by Laws of Utah 2024, 
Third Special Session, Chapter 4
ENACTS:
79-6-1101
, 
Effective 
upon governor's approval
 Utah Code Annotated 1953
79-6-1102
, 
Effective 
upon governor's approval
 Utah Code Annotated 1953
79-6-1103
, 
Effective 
upon governor's approval
 Utah Code Annotated 1953
79-6-1104
, 
Effective 
upon governor's approval
 Utah Code Annotated 1953
REPEALS:
79-6-407
, 
Effective 
upon governor's approval
 as last amended by Laws of Utah 2024, 
Third Special Session, Chapter 4
79-6-408
, 
Effective 
upon governor's approval
 as last amended by Laws of Utah 2024, 
Third Special Session, Chapter 4
Be it enacted by the Legislature of the state of Utah:
Section 1, Section 
11-13-318
 is amended to read:
11-13-318
Effective 
upon governor's approval
. Notice of decommissioning or 
disposal of project entity assets.
(1)
As used in this section:
(a)
"Alternative permit" means the same as that term is defined in Section 
11-13-320
.
(a)
"Critical switchyard equipment" means equipment located in a switchyard that is 
necessary for the delivery of electricity to the transmission or distribution system, 
including transformers, circuit breakers, disconnect switches, and other essential 
interconnection equipment.
(b)
"Decommissioning" means to remove an electrical generation facility from active 
service.
(c)
"Disposal" means the sale, transfer, dismantling, or other disposition of a project 
entity's assets.
(d)
"Division" means the Division of Air Quality created in Section 
19-1-105
.
(e)
"Fair market value" means the same as that term is defined in Section 
79-6-408
.
(f)
"Interconnection" means the physical system that connects an electrical generation 
facility to the transmission or distribution system, including all switching stations, 
transformers, and other equipment necessary to deliver electricity to customers.
(f)
(g)
(i)
"Project entity asset" means a project entity's:
(A)
land;
(B)
water;
(C)
buildings; or
(D)
essential equipment, including turbines, generators, transformers, and 
transmission lines.
(ii)
"Project entity asset" does not include an asset that is not essential for the 
generation of electricity in the project entity's coal-powered electrical generation 
facility.
(h)
"Project purchaser" means any entity that has the right to purchase power from the 
project entity.
(i)
"Station service" means the electric supply required for the operation of an electrical 
generation facility and associated facilities, essential auxiliary equipment, and all 
facilities necessary to maintain electrical output.
(2)
A project entity shall provide a notice of decommissioning or disposal to the Legislative 
Management Committee at least 180 days before:
(a)
the disposal of any project entity assets; or
(b)
the decommissioning of the project entity's coal-powered electrical generation 
facility.
(3)
The notice of decommissioning or disposal described in Subsection (2) shall include:
(a)
the date of the intended decommissioning or disposal;
(b)
a description of the project entity's coal-powered electrical generation facility 
intended for decommissioning or any project entity asset intended for disposal; and
(c)
the reasons for the decommissioning or disposal.
(4)
A project entity may not intentionally prevent the functionality of the project entity's 
existing coal-powered electrical generation facility.
(5)
A project entity shall:
(a)
maintain:
(i)
facilities that provide power to station service so as to ensure continued 
functionality;
(ii)
at least one operational coal-powered electrical generation unit connected to 
existing interconnection facilities; and
(iii)
existing interconnection and critical switchyard equipment in a manner that 
ensures the ability to reactivate any remaining coal-powered electrical generation 
units; and
(b)
make available an interconnection with the switchyard for a project entity's 
coal-powered electrical generation facility that does not require a new 
interconnection request.
(5)
(6)
Notwithstanding the requirements in Subsections (2) through (4), a project entity 
may take any action necessary to transition to a new electrical generation facility 
powered by natural gas, hydrogen, or a combination of natural gas and hydrogen, 
including any action that has been approved by a permitting authority
.
, provided that 
such actions:
(a)
do not violate the requirements in Subsection (5); or
(b)
are specifically required by a permitting authority as an essential component of the 
transition, with no feasible alternative that would avoid violating Subsection (5).
(6)
(7)
A project entity shall provide the state the option to purchase for fair market value a 
project entity asset intended for decommissioning, with the option remaining open for at 
least two years, beginning on July 2, 2025.
Section 2, Section 
11-13-320
 is amended to read:
11-13-320
Effective 
upon governor's approval
. Air quality permitting 
transition process.
(1)
As used in this section:
(a)
"Alternative permit" means 
an amendment to a transition permit that, for purposes 
of transitioning an electrical generation facility to a new facility, allows one or more 
existing generating units to continue operating while also providing for closure of 
one but not all existing generating units
the same as that term is defined in Section 
19-2-109.4
.
(b)
"Authority" means the Decommissioned Asset Disposition Authority established in 
Section 
79-6-407
.
(c)
(b)
"Division" means the Division of Air Quality created in Section 
19-1-105
.
(d)
(c)
"Pre-existing permit" means the air quality permit held by the operator of an 
existing electrical generation facility prior to any amendments associated with 
transitioning to a new facility.
(e)
(d)
"Transition permit" 
means an amendment to the pre-existing permit, issued to 
the operator of an existing electrical generation facility for the purpose of 
transitioning to a new electrical generation facility, which authorizes construction of 
the new facility but does not require closure of all existing generating units until after 
the new facility commences operation
means the same as that term is defined in 
Section 
19-2-109.4
.
(2)
A project entity that holds a pre-existing permit for an existing electrical generation 
facility with multiple generating units, and has been issued a transition permit for a new 
electrical generation facility, may submit an application to the division in accordance 
with Section 
19-2-109.4
 for issuance of an alternative permit.
Section 3, Section 
19-2-109.4
 is amended to read:
19-2-109.4
Effective 
upon governor's approval
. Project entity transition permit.
(1)
As used in this section:
(a)
"Alternative permit" means an amendment to a transition permit that
, for purposes 
of transitioning an electrical generation facility to a new facility, allows one or more 
existing generating units to continue operating while also providing for closure of 
one but not all existing generating units.
 allows for multiple operating scenarios, 
including:
(i)
the operating scenario set forth in the transition permit; and
(ii)
at least one alternative operating scenario that allows:
(A)
the operation of the new electrical generation facility at full capacity as 
contemplated by the transition permit; and
(B)
continued operation of one or more existing generating units at or below the 
capacity factor and in compliance with the other conditions specified in the 
application for the amendment to the transition permit.
(b)
"
Authority
" means the Decommissioned Asset Disposition 
Authority
established in Section 
79-6-407
.
(c)
(b)
"Division" means the Division of Air Quality created in Section 
19-1-105
.
(c)
"Existing generating unit" means an electric generating unit that is part of an existing 
electrical generation facility owned at any time by a project entity.
(d)
"New electrical generation facility" means an electrical generation facility powered 
by natural gas, hydrogen, or any combination of natural gas and hydrogen.
(d)
(e)
"Pre-existing permit" means the air quality permit held by the operator of an 
existing electrical generation facility prior to any amendments associated with 
transitioning to a new facility.
(e)
(f)
"Project entity" means the same as that term is defined in Section 
11-13-103
.
(f)
(g)
"Transition permit" means an amendment to the pre-existing permit, issued to 
the operator of an existing electrical generation facility for the purpose of 
transitioning to a new electrical generation facility, which authorizes construction of 
the new 
electrical generation 
facility but does not require closure of all existing 
generating units until after the new 
electrical generation 
facility commences 
operation.
(2)
The division shall accept an application for an alternative permit from a project entity 
that has previously obtained a 
transition permit to authorize the same new electrical 
generating capacity contemplated by the 
transition permit.
(3)
If the application for an alternative permit meets the requirements established by the 
board:
(a)
the division shall issue an approval order for the alternative permit to the project 
entity;
(b)
the conditions of the transition permit shall cease to apply, including requirements 
to reduce the capacity of existing generating units at the electrical generation facility
if the division approves the alternative permit, the conditions of the transition permit, 
including those requiring an existing generating unit to cease operation and to be 
placed in maintenance status shall remain in effect until:
(i)
the project entity's sale of the existing generating units; or
(ii)
both the resolution of all administrative and judicial challenges to the alternative 
permit and the expiration of the applicable limitations period to file such 
challenges
; and
(c)
the project entity shall submit all documentation required to modify any federal 
operating permit required to be maintained by the project entity, consistent with 
deadlines established by the division.
(4)
If an alternative permit is not approved under Subsection (3), the conditions of the 
transition permit shall remain effective.
(5)
(a)
Upon receipt of an alternative air permit application prepared and submitted by 
the 
authority
 in accordance with Subsection 
79-6-407
(4)(c), the division shall 
conduct a full evaluation as if the application had been prepared and submitted by a 
project entity to determine whether the alternative air permit would be issued if 
applied for by the project entity.
(b)
The division shall provide the results of any evaluation conducted under Subsection 
(5)(a) to the 
authority
 within 30 days after the date that the division receives the 
application described in Subsection (5)(a), unless the division provides written notice 
to the 
authority
 that additional time is needed to complete the evaluation.
(c)
If the division concludes after evaluation that an alternative permit would likely be 
issued to a project entity, the 
authority
 shall, within 30 days after the 
authority
receives the results of the evaluation, submit recommendations to the Legislative 
Management Committee regarding options for the state to continue to authorize 
construction of the project entity's new electrical generation facility that do not 
require the closure of all of the project entity's existing electrical generating facilities.
(6)
(5)
The division shall evaluate an application for an alternative permit independently 
from any pre-existing permit or transition permit based on updated assumptions, 
modeling, and requirements established in rule by the division and may rely upon the 
reduction of capacity of the existing electrical generation facility only as necessary to 
ensure that emissions of the new 
generating
electrical generation
 facility do not exceed 
thresholds established by federal law which would necessitate new source review as a 
major modification.
(6)
If an administrative or judicial challenge to the alternative permit succeeds in 
invalidating:
(a)
a portion of the alternative permit, the remaining conditions of the alternative permit 
shall remain valid and in force; or
(b)
the primary operating scenario of the alternative permit or the entire alternative 
permit, the transition permit shall remain in force with respect to the conditions 
governing the construction and operation of the new electrical generation facility.
Section 4, Section 
79-6-1101
 is enacted to read:
11. Utah Energy Council
79-6-1101
Effective 
upon governor's approval
. Utah Energy Council -- 
Creation and purpose.
(1)
As used in this part:
(a)
"Council" means the Utah Energy Council created in Section 
79-6-1101
.
(b)
"Decommissioned asset" means a project entity asset that:
(i)
has been removed from active service by a project entity;
(ii)
has been transferred to the council, including:
(A)
transfer of legal title; and
(B)
transfer of operational responsibility; and
(iii)
will be operated and managed under the direction of the council.
(c)
"Operator" means an entity that:
(i)
manages and maintains the daily operations of an electrical generation facility;
(ii)
employs the workforce necessary to run the facility;
(iii)
procures fuel and other necessary supplies;
(iv)
ensures compliance with all applicable regulations; and
(v)
maintains the reliability of power generation.
(d)
"Project entity" means the same as that term is defined in Section 
11-13-103
.
(e)
"Project entity asset" means the same as that term is defined in Section 
11-13-318
.
(2)
There is created within the office the Utah Energy Council.
(3)
The purpose of the council is to facilitate the development of electrical energy 
generation and transmission projects within the state, including:
(a)
power plants;
(b)
transmission lines;
(c)
energy storage facilities; and
(d)
related infrastructure.
Section 5, Section 
79-6-1102
 is enacted to read:
79-6-1102
Effective 
upon governor's approval
. Council composition -- 
Appointment -- Terms -- Staffing.
(1)
The council shall be composed of:
(a)
the director or the director's designee, who shall serve as chair of the council;
(b)
two individuals appointed by the governor;
(c)
one individual appointed by the president of the Senate; and
(d)
one individual appointed by the speaker of the House of Representatives.
(2)
(a)
Except as provided in Subsection (2)(b), a council member appointed under 
Subsection (1):
(i)
shall serve a four-year term;
(ii)
may be removed by the appointing authority;
(iii)
may be reappointed; and
(iv)
continues to serve until the member's successor is appointed and qualified.
(b)
Initial terms for the appointed council members shall be staggered as follows:
(i)
one member appointed by the governor under Subsection (1)(b) shall serve a 
two-year term;
(ii)
one member appointed by the governor under Subsection (1)(b) shall serve a 
three-year term;
(iii)
the member appointed by the president of the Senate under Subsection (1)(c) 
shall serve a four-year term; and
(iv)
the member appointed by the speaker of the House of Representatives under 
Subsection (1)(d) shall serve a two-year term.
(3)
When a vacancy occurs in the membership for any reason, the replacement shall be 
appointed by the relevant appointing authority for the unexpired term.
(4)
(a)
A majority of council members constitutes a quorum for conducting council 
business.
(b)
A majority vote of the quorum present is required for any action taken by the council.
(5)
The council shall meet:
(a)
at least quarterly; and
(b)
at the call of the chair or a majority of the council members.
(6)
(a)
A council member who is not a legislator may not receive compensation or 
benefits for the member's service but may receive per diem and travel expenses in 
accordance with:
(i)
Section 
63A-3-106
;
(ii)
Section 
63A-3-107
; and
(iii)
rules made by the Division of Finance under Sections 
63A-3-106
 and 
63A-3-107
.
(b)
Compensation and expenses of a council member who is a legislator are governed by 
Section 
36-2-2
 and Legislative Joint Rules, Title 5, Legislative Compensation and 
Expenses.
(7)
The office shall provide staff support to the council.
Section 6, Section 
79-6-1103
 is enacted to read:
79-6-1103
Effective 
upon governor's approval
. Council powers and duties.
(1)
The council shall:
(a)
create and implement a strategic plan for a decommissioned asset, taking into 
consideration:
(i)
the state energy policy, as provided in Section 
79-6-301
;
(ii)
reliability of electrical generation; and
(iii)
economic viability;
(b)
make recommendations regarding electrical energy policy to state and local 
governments;
(c)
identify and recommend solutions to barriers affecting electrical energy development;
(d)
assess and address potential public health impacts of electrical energy development 
zones;
(e)
enter into contracts necessary to fulfill the council's duties;
(f)
report annually by October 31 to the Public Utilities, Energy, and Technology 
Interim Committee and the Natural Resources, Agriculture, and Environment Interim 
Committee regarding:
(i)
the council's activities;
(ii)
energy development opportunities;
(iii)
infrastructure needs;
(iv)
the status of designated electrical energy development zones;
(v)
investment decisions made by the council;
(vi)
recommended policy changes; and
(vii)
approve budgets and expenditures;
(g)
establish policies and procedures for the management of a decommissioned asset;
(h)
administer contracts for the management and operations of a decommissioned asset;
(i)
enter into contracts necessary for the operation and management of a 
decommissioned asset;
(j)
acquire, hold, and dispose of property related to a decommissioned asset;
(k)
select an operator for a decommissioned asset as provided in Section 
79-6-1104
; and
(l)
report annually to the Legislative Management Committee regarding:
(i)
the status and progress of the asset transfer;
(ii)
operational and financial status of the asset under council control;
(iii)
status of the operator contract;
(iv)
environmental compliance status; and
(v)
recommendations for legislation.
(2)
The council may:
(a)
make rules, in accordance with Title 63G, Chapter 3, Utah Administrative 
Rulemaking Act, to fulfill the council's duties under this part; and
(b)
take other actions necessary to fulfill the council's purposes and duties as provided in 
this part.
(3)
If the council acquires a project entity asset under Section 
11-13-318
, the council shall 
enter into an agreement with the project entity that:
(a)
provides for the transfer, disposition, and future operation of the asset; and
(b)
ensures the transfer, disposition, and future operation does not interfere with the 
project entity's ownership or operation of electrical generation facilities powered by 
natural gas, hydrogen, or a combination of natural gas and hydrogen.
Section 7, Section 
79-6-1104
 is enacted to read:
79-6-1104
Effective 
upon governor's approval
. Selection of facility operator.
(1)
The council shall initiate the selection of an operator for a decommissioned asset by:
(a)
issuing a request for proposals; and
(b)
publishing the request for proposals on the Utah Public Notice Website created under 
Section 
63A-16-601
.
(2)
The request for proposals shall specify that an entity must demonstrate:
(a)
at least 10 years of experience operating coal-fired electrical generation facilities;
(b)
a commitment to maintaining substantial operations within the state;
(c)
financial capability to operate and maintain the facility;
(d)
experience with similar coal types and specifications;
(e)
proven capability to comply with state and federal environmental requirements;
(f)
existing relationships with regional transmission organizations;
(g)
ability to maintain reliable baseload power generation;
(h)
experience with western coal markets and transportation;
(i)
capability to retain the existing skilled workforce; and
(j)
ability to integrate operations with existing transmission infrastructure.
(3)
The council shall:
(a)
allow at least 60 days for the submission of proposals; and
(b)
establish or contract with a technical review committee to evaluate proposals.
(4)
In evaluating proposals, the council shall consider:
(a)
operational efficiency metrics from similar facilities;
(b)
proposed operational cost structure;
(c)
economic considerations;
(d)
reliability and availability guarantees;
(e)
environmental compliance history and plans;
(f)
workplace safety record and plans;
(g)
local economic benefit commitments; and
(h)
proposed timeline for assuming operations.
(5)
Nothing in this section:
(a)
requires the council to select any proposal; or
(b)
prevents the council from:
(i)
rejecting all proposals; or
(ii)
terminating the request for proposals process.
Section 8, 
Repealer.
Effective 
upon governor's approval
Decommissioned Asset 
Disposition Authority.
Effective 
upon governor's approval
Study of project entity asset 
intended for decommissioning.
Section 9. 
Effective Date.
This bill takes effect:
(1)
except as provided in Subsection (2), 
May 7, 2025
; or
(2)
if approved by two-thirds of all members elected to each house:
(a)
upon approval by the governor;
(b)
without the governor's signature, the day following the constitutional time limit of 
Utah Constitution, Article VII, Section 8; or
(c)
in the case of a veto, the date of veto override.
3-12-25 10:26 AM