Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 350 (2025GS)

Sponsor

Rep. Peterson, Val L.

Final action

Governor Signed 3/25/2025

Outcome

Became law — signed by Gov. Spencer J. Cox

Summary

What it does

• This bill:
• defines terms;
• modifies provisions regarding heat corporations to address cooling plants;
• adds district energy systems as qualifying energy delivery projects;
• establishes investment thresholds for district energy systems to qualify for high cost infrastructure tax credits; and
• makes technical changes.

Every vote on this bill

Bill text

4
54-2-1
79-6-602
0
District Energy Amendments
2025 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Val L. Peterson
Senate Sponsor: Michael K. McKell
LONG TITLE
General Description:
This bill modifies the High Cost Infrastructure Development Tax Credit Act to include 
district energy systems.
Highlighted Provisions:
This bill:
defines terms;
modifies provisions regarding heat corporations to address cooling plants;
adds district energy systems as qualifying energy delivery projects;
establishes investment thresholds for district energy systems to qualify for high cost 
infrastructure tax credits; and
makes technical changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
54-2-1
, as last amended by Laws of Utah 2022, Chapter 314
79-6-602
, as last amended by Laws of Utah 2024, Chapter 192
Be it enacted by the Legislature of the state of Utah:
Section 1, Section 
54-2-1
 is amended to read:
54-2-1
. Definitions.
As used in this title:
(1)
"Avoided costs" means the incremental costs to an electrical corporation of electric 
energy or capacity or both that, due to the purchase of electric energy or capacity or both 
from small power production or cogeneration facilities, the electrical corporation would 
not have to generate itself or purchase from another electrical corporation.
(2)
"Clean coal technology" means a technology that may be researched, developed, or used 
for reducing emissions or the rate of emissions from a thermal electric generation plant 
that uses coal as a fuel source.
(3)
"Cogeneration facility":
(a)
means a facility that produces:
(i)
electric energy; and
(ii)
steam or forms of useful energy, including heat, that are used for industrial, 
commercial, heating, or cooling purposes; and
(b)
is a qualifying cogeneration facility under federal law.
(4)
"Commission" means the Public Service Commission.
(5)
"Commissioner" means a member of the commission.
(6)
"Cooling plant" means all real estate, fixtures, machinery, appliances, and personal 
property controlled, operated, or managed in connection with or to facilitate the 
production, generation, transmission, delivery, or furnishing of artificial cold.
(6)
(7)
(a)
"Corporation" includes an association and a joint stock company having any 
powers or privileges not possessed by individuals or partnerships.
(b)
"Corporation" does not include towns, cities, counties, conservancy districts, 
improvement districts, or other governmental units created or organized under any 
general or special law of this state.
(7)
(8)
"Department" means the Department of Transportation created in Section 
72-1-201
.
(8)
(9)
"Distribution electrical cooperative" includes an electrical corporation that:
(a)
is a cooperative;
(b)
conducts a business that includes the retail distribution of electricity the cooperative 
purchases or generates for the cooperative's members; and
(c)
is required to allocate or distribute savings in excess of additions to reserves and 
surplus on the basis of patronage to the cooperative's:
(i)
members; or
(ii)
patrons.
(9)
(10)
(a)
"Electrical corporation" includes every corporation, cooperative association, 
and person, their lessees, trustees, and receivers, owning, controlling, operating, or 
managing any electric plant, or in any way furnishing electric power for public 
service or to its consumers or members for domestic, commercial, or industrial use, 
within this state.
(b)
"Electrical corporation" does not include:
(i)
an independent energy producer;
(ii)
where electricity is generated on or distributed by the producer solely for the 
producer's own use, or the use of the producer's tenants, or the use of members of 
an association of unit owners formed under 
Title 57, Chapter 8, Condominium 
Ownership Act
, and not for sale to the public generally;
(iii)
an eligible customer who provides electricity for the eligible customer's own use 
or the use of the eligible customer's tenant or affiliate; or
(iv)
a nonutility energy supplier who sells or provides electricity to:
(A)
an eligible customer who has transferred the eligible customer's service to the 
nonutility energy supplier in accordance with Section 
54-3-32
; or
(B)
the eligible customer's tenant or affiliate.
(c)
"Electrical corporation" does not include an entity that sells electric vehicle battery 
charging services:
(i)
if the entity obtains the electricity for the electric vehicle battery charging service, 
including any electricity from an electricity storage device:
(A)
from an electrical corporation in whose service area the electric vehicle 
battery charging service is located; and
(B)
under an established tariff for rates, charges, and conditions of service; and
(ii)
unless the entity conducts another activity in the state that subjects the entity to 
the jurisdiction and regulation of the commission as an electrical corporation.
(10)
(11)
"Electric plant" includes all real estate, fixtures, and personal property owned, 
controlled, operated, or managed in connection with or to facilitate the production, 
generation, transmission, delivery, or furnishing of electricity for light, heat, or power, 
and all conduits, ducts, or other devices, materials, apparatus, or property for containing, 
holding, or carrying conductors used or to be used for the transmission of electricity for 
light, heat, or power.
(11)
(12)
"Eligible customer" means a person who:
(a)
on December 31, 2013:
(i)
was a customer of a public utility that, on December 31, 2013, had more than 
200,000 retail customers in this state; and
(ii)
owned an electric plant that is an electric generation plant that, on December 31, 
2013, had a generation name plate capacity of greater than 150 megawatts; and
(b)
produces electricity:
(i)
from a qualifying power production facility for sale to a public utility in this state;
(ii)
primarily for the eligible customer's own use; or
(iii)
for the use of the eligible customer's tenant or affiliate.
(12)
(13)
"Eligible customer's tenant or affiliate" means one or more tenants or affiliates:
(a)
of an eligible customer; and
(b)
who are primarily engaged in an activity:
(i)
related to the eligible customer's core mining or industrial businesses; and
(ii)
performed on real property that is:
(A)
within a 25-mile radius of the electric plant described in Subsection 
(11)
(a)(ii); 
(12)(a)(ii); 
and
(B)
owned by, controlled by, or under common control with, the eligible customer.
(13)
(14)
"Gas corporation" includes every corporation and person, their lessees, trustees, 
and receivers, owning, controlling, operating, or managing any gas plant for public 
service within this state or for the selling or furnishing of natural gas to any consumer or 
consumers within the state for domestic, commercial, or industrial use, except in the 
situation that:
(a)
gas is made or produced on, and distributed by the maker or producer through, 
private property:
(i)
solely for the maker's or producer's own use or the use of the maker's or producer's 
tenants; and
(ii)
not for sale to others;
(b)
gas is compressed on private property solely for the owner's own use or the use of 
the owner's employees as a motor vehicle fuel; or
(c)
gas is compressed by a retailer of motor vehicle fuel on the retailer's property solely 
for sale as a motor vehicle fuel.
(14)
(15)
"Gas plant" includes all real estate, fixtures, and personal property owned, 
controlled, operated, or managed in connection with or to facilitate the production, 
generation, transmission, delivery, or furnishing of gas, natural or manufactured, for 
light, heat, or power.
(16)
(a)
"Heat corporation" means a corporation or person, including the corporation's or 
person's lessees, trustees, and receivers, that owns, controls, operates, or manages for 
public service within the state:
(i)
a heating plant; or
(ii)
a heating plant and cooling plant operated in combination.
(b)
"Heat corporation" does not include a corporation or person, including the 
corporation's or person's lessees, trustees, and receivers, that owns, controls, operates, 
or manages a cooling plant that is not operated in combination with a heating plant.
(15)
"Heat corporation" includes every corporation and person, their lessees, trustees, and 
receivers, owning, controlling, operating, or managing any heating plant for public 
service within this state.
(16)
(17)
(a)
"Heating plant" includes all real estate, fixtures, machinery, appliances, 
and personal property controlled, operated, or managed in connection with or to 
facilitate the production, generation, transmission, delivery, or furnishing of artificial 
heat.
(b)
"Heating plant" does not include either small power production facilities or 
cogeneration facilities.
(17)
(18)
"Independent energy producer" means every electrical corporation, person, 
corporation, or government entity, their lessees, trustees, or receivers, that own, operate, 
control, or manage an independent power production or cogeneration facility.
(18)
(19)
"Independent power production facility" means a facility that:
(a)
produces electric energy solely by the use, as a primary energy source, of biomass, 
waste, a renewable resource, a geothermal resource, or any combination of the 
preceding sources; or
(b)
is a qualifying power production facility.
(19)
(20)
"Large-scale electric utility" means a public utility that provides retail electric 
service to more than 200,000 retail customers in the state.
(20)
(21)
"Large-scale natural gas utility" means a public utility that provides retail natural 
gas service to more than 200,000 retail customers in the state.
(21)
(22)
"Nonutility energy supplier" means a person that:
(a)
has received market-based rate authority from the Federal Energy Regulatory 
Commission in accordance with 16 U.S.C. Sec. 824d, 18 C.F.R. 
Part 35
, Filing of 
Rate Schedules and Tariffs, or applicable Federal Energy Regulatory Commission 
orders; or
(b)
owns, leases, operates, or manages an electric plant that is an electric generation 
plant that:
(i)
has a capacity of greater than 100 megawatts; and
(ii)
is hosted on the site of an eligible customer that consumes the output of the 
electric plant, in whole or in part, for the eligible customer's own use or the use of 
the eligible customer's tenant or affiliate.
(22)
(23)
"Private telecommunications system" includes all facilities for the transmission 
of signs, signals, writing, images, sounds, messages, data, or other information of any 
nature by wire, radio, lightwaves, or other electromagnetic means, excluding mobile 
radio facilities, that are owned, controlled, operated, or managed by a corporation or 
person, including their lessees, trustees, receivers, or trustees appointed by any court, for 
the use of that corporation or person and not for the shared use with or resale to any 
other corporation or person on a regular basis.
(23)
(24)
(a)
"Public utility" includes every railroad corporation, gas corporation, 
electrical corporation, distribution electrical cooperative, wholesale electrical 
cooperative, telephone corporation, telegraph corporation, water corporation, 
sewerage corporation, heat corporation, and independent energy producer not 
described in Section 
54-2-201
 where the service is performed for, or the commodity 
delivered to, the public generally, or in the case of a gas corporation or electrical 
corporation where the gas or electricity is sold or furnished to any member or 
consumers within the state for domestic, commercial, or industrial use.
(b)
(i)
If any railroad corporation, gas corporation, electrical corporation, telephone 
corporation, telegraph corporation, water corporation, sewerage corporation, heat 
corporation, or independent energy producer not described in Section 
54-2-201
, 
performs a service for or delivers a commodity to the public, it is considered to be 
a public utility, subject to the jurisdiction and regulation of the commission and 
this title.
(ii)
If a gas corporation, independent energy producer not described in Section 
54-2-201
, or electrical corporation sells or furnishes gas or electricity to any 
member or consumers within the state, for domestic, commercial, or industrial 
use, for which any compensation or payment is received, it is considered to be a 
public utility, subject to the jurisdiction and regulation of the commission and this 
title.
(c)
Any corporation or person not engaged in business exclusively as a public utility as 
defined in this section is governed by this title in respect only to the public utility 
owned, controlled, operated, or managed by the corporation or person, and not in 
respect to any other business or pursuit.
(d)
Any person or corporation defined as an electrical corporation or public utility under 
this section may continue to serve its existing customers subject to any order or 
future determination of the commission in reference to the right to serve those 
customers.
(e)
(i)
"Public utility" does not include any person that is otherwise considered a 
public utility under this Subsection 
(23)
(24)
 solely because of that person's 
ownership of an interest in an electric plant, cogeneration facility, or small power 
production facility in this state if all of the following conditions are met:
(A)
the ownership interest in the electric plant, cogeneration facility, or small 
power production facility is leased to:
(I)
a public utility, and that lease has been approved by the commission;
(II)
a person or government entity that is exempt from commission regulation 
as a public utility; or
(III)
a combination of Subsections 
(23)
(e)(i)(A)(I)
(24)(e)(i)(A)(I)
 and (II);
(B)
the lessor of the ownership interest identified in Subsection 
(23)
(e)(i)(A)
(24)(e)(i)(A)
 is:
(I)
primarily engaged in a business other than the business of a public utility; or
(II)
a person whose total equity or beneficial ownership is held directly or 
indirectly by another person engaged in a business other than the business 
of a public utility; and
(C)
the rent reserved under the lease does not include any amount based on or 
determined by revenues or income of the lessee.
(ii)
Any person that is exempt from classification as a public utility under Subsection 
(23)
(e)(i) 
(24)(e)(i) 
shall continue to be so exempt from classification following 
termination of the lessee's right to possession or use of the electric plant for so 
long as the former lessor does not operate the electric plant or sell electricity from 
the electric plant. If the former lessor operates the electric plant or sells electricity, 
the former lessor shall continue to be so exempt for a period of 90 days following 
termination, or for a longer period that is ordered by the commission. This period 
may not exceed one year. A change in rates that would otherwise require 
commission approval may not be effective during the 90-day or extended period 
without commission approval.
(f)
"Public utility" does not include any person that provides financing for, but has no 
ownership interest in an electric plant, small power production facility, or 
cogeneration facility. In the event of a foreclosure in which an ownership interest in 
an electric plant, small power production facility, or cogeneration facility is 
transferred to a third-party financer of an electric plant, small power production 
facility, or cogeneration facility, then that third-party financer is exempt from 
classification as a public utility for 90 days following the foreclosure, or for a longer 
period that is ordered by the commission. This period may not exceed one year.
(g)
(i)
The distribution or transportation of natural gas for use as a motor vehicle fuel 
does not cause the distributor or transporter to be a "public utility," unless the 
commission, after notice and a public hearing, determines by rule that it is in the 
public interest to regulate the distributers or transporters, but the retail sale alone 
of compressed natural gas as a motor vehicle fuel may not cause the seller to be a 
"public utility."
(ii)
In determining whether it is in the public interest to regulate the distributors or 
transporters, the commission shall consider, among other things, the impact of the 
regulation on the availability and price of natural gas for use as a motor fuel.
(h)
"Public utility" does not include:
(i)
an eligible customer who provides electricity for the eligible customer's own use 
or the use of the eligible customer's tenant or affiliate; or
(ii)
a nonutility energy supplier that sells or provides electricity to:
(A)
an eligible customer who has transferred the eligible customer's service to the 
nonutility energy supplier in accordance with Section 
54-3-32
; or
(B)
the eligible customer's tenant or affiliate.
(i)
"Public utility" does not include an entity that sells electric vehicle battery charging 
services:
(i)
if the entity obtains the electricity for the electric vehicle battery charging service, 
including any electricity from an electricity storage device:
(A)
from a large-scale electric utility or an electrical corporation in whose service 
area the electric vehicle battery charging service is located; and
(B)
under an established tariff for rates, charges, and conditions of service; and
(ii)
unless the entity conducts another activity in the state that subjects the entity to 
the jurisdiction and regulation of the commission as a public utility.
(j)
"Public utility" does not include an independent energy producer that is not subject to 
regulation by the commission as a public utility under Section 
54-2-201
.
(24)
(25)
"Purchasing utility" means any electrical corporation that is required to purchase 
electricity from small power production or cogeneration facilities pursuant to the Public 
Utility Regulatory Policies Act, 16 U.S.C. Sec. 824a-3.
(25)
(26)
"Qualifying power producer" means a corporation, cooperative association, or 
person, or the lessee, trustee, and receiver of the corporation, cooperative association, or 
person, who owns, controls, operates, or manages any qualifying power production 
facility or cogeneration facility.
(26)
(27)
"Qualifying power production facility" means a facility that:
(a)
produces electrical energy solely by the use, as a primary energy source, of biomass, 
waste, a renewable resource, a geothermal resource, or any combination of the 
preceding sources;
(b)
has a power production capacity that, together with any other facilities located at the 
same site, is no greater than 80 megawatts; and
(c)
is a qualifying small power production facility under federal law.
(27)
(28)
"Railroad" includes every commercial, interurban, and other railway, other than a 
street railway, and each branch or extension of a railway, by any power operated, 
together with all tracks, bridges, trestles, rights-of-way, subways, tunnels, stations, 
depots, union depots, yards, grounds, terminals, terminal facilities, structures, and 
equipment, and all other real estate, fixtures, and personal property of every kind used in 
connection with a railway owned, controlled, operated, or managed for public service in 
the transportation of persons or property.
(28)
(29)
"Railroad corporation" includes every corporation and person, their lessees, 
trustees, and receivers, owning, controlling, operating, or managing any railroad for 
public service within this state.
(29)
(30)
(a)
"Sewerage corporation" includes every corporation and person, their 
lessees, trustees, and receivers, owning, controlling, operating, or managing any 
sewerage system for public service within this state.
(b)
"Sewerage corporation" does not include private sewerage companies engaged in 
disposing of sewage only for their stockholders, or towns, cities, counties, 
conservancy districts, improvement districts, or other governmental units created or 
organized under any general or special law of this state.
(30)
(31)
"Telegraph corporation" includes every corporation and person, their lessees, 
trustees, and receivers, owning, controlling, operating, or managing any telegraph line 
for public service within this state.
(31)
(32)
"Telegraph line" includes all conduits, ducts, poles, wires, cables, instruments, 
and appliances, and all other real estate, fixtures, and personal property owned, 
controlled, operated, or managed in connection with or to facilitate communication by 
telegraph, whether that communication be had with or without the use of transmission 
wires.
(32)
(33)
"Telephone cooperative" means a telephone corporation that:
(a)
is a cooperative; and
(b)
is organized for the purpose of providing telecommunications service to the 
telephone corporation's members and the public at cost plus a reasonable rate of 
return.
(33)
(34)
(a)
"Telephone corporation" means any corporation or person, and their 
lessees, trustee, receivers, or trustees appointed by any court, who owns, controls, 
operates, manages, or resells a public telecommunications service as defined in 
Section 
54-8b-2
.
(b)
"Telephone corporation" does not mean a corporation, partnership, or firm providing:
(i)
intrastate telephone service offered by a provider of cellular, personal 
communication systems (PCS), or other commercial mobile radio service as 
defined in 47 U.S.C. Sec. 332 that has been issued a covering license by the 
Federal Communications Commission;
(ii)
Internet service; or
(iii)
resold intrastate toll service.
(34)
(35)
"Telephone line" includes all conduits, ducts, poles, wires, cables, instruments, 
and appliances, and all other real estate, fixtures, and personal property owned, 
controlled, operated, or managed in connection with or to facilitate communication by 
telephone whether that communication is had with or without the use of transmission 
wires.
(35)
(36)
"Transportation of persons" includes every service in connection with or 
incidental to the safety, comfort, or convenience of the person transported, and the 
receipt, carriage, and delivery of that person and that person's baggage.
(36)
(37)
"Transportation of property" includes every service in connection with or 
incidental to the transportation of property, including in particular its receipt, delivery, 
elevation, transfer, switching, carriage, ventilation, refrigeration, icing, dunnage, 
storage, and hauling, and the transmission of credit by express companies.
(37)
(38)
"Utility-owned vehicle charging infrastructure" means all facilities, equipment, 
and electrical systems owned and installed by a large-scale electric utility:
(a)
on the customer's side or the large-scale electric utility's side of the electricity 
metering equipment; and
(b)
to facilitate utility vehicle charging service or other electric vehicle battery charging 
service.
(38)
(39)
"Utility vehicle charging service" means the furnishing of electricity:
(a)
to an electric vehicle battery charging station;
(b)
by a public utility in whose service area the charging station is located; and
(c)
pursuant to a duly established tariff for rates, charges, and conditions of service for 
the electricity.
(39)
(40)
"Water corporation" includes every corporation and person, their lessees, 
trustees, and receivers, owning, controlling, operating, or managing any water system 
for public service within this state. It does not include private irrigation companies 
engaged in distributing water only to their stockholders, or towns, cities, counties, water 
conservancy districts, improvement districts, or other governmental units created or 
organized under any general or special law of this state.
(40)
(41)
(a)
"Water system" includes all reservoirs, tunnels, shafts, dams, dikes, 
headgates, pipes, flumes, canals, structures, and appliances, and all other real estate, 
fixtures, and personal property owned, controlled, operated, or managed in 
connection with or to facilitate the diversion, development, storage, supply, 
distribution, sale, furnishing, carriage, appointment, apportionment, or measurement 
of water for power, fire protection, irrigation, reclamation, or manufacturing, or for 
municipal, domestic, or other beneficial use.
(b)
"Water system" does not include private irrigation companies engaged in distributing 
water only to their stockholders.
(41)
(42)
"Wholesale electrical cooperative" includes every electrical corporation that is:
(a)
in the business of the wholesale distribution of electricity it has purchased or 
generated to its members and the public; and
(b)
required to distribute or allocate savings in excess of additions to reserves and 
surplus to members or patrons on the basis of patronage.
Section 2, Section 
79-6-602
 is amended to read:
79-6-602
. Definitions.
As used in this part:
(1)
"Applicant" means a person that conducts business in the state and that applies for a tax 
credit under this part.
(2)
(a)
"District energy system" means equipment and facilities that:
(i)
use one or more thermal energy sources to provide:
(A)
space heating;
(B)
hot water; or
(C)
space cooling; and
(ii)
deliver services through a distribution system.
(b)
"District energy system" includes:
(i)
plants;
(ii)
equipment;
(iii)
distribution piping;
(iv)
apparatus; and
(v)
other facilities used to provide space heating, hot water, or space cooling.
(2)
(3)
(a)
"Energy delivery project" means a project that is designed to:
(i)
increase the capacity for the delivery of energy to a user of energy inside or 
outside the state; 
(ii)
increase the capability of an existing energy delivery system or related facility to 
deliver energy to a user of energy inside or outside the state;
 or
(iii)
increase the production and delivery of geothermal energy through horizontal 
drilling to create injection and production wells
.
; or
(iv)
increase the capacity for recovery of thermal energy for a heating or cooling 
system through a district energy system.
(b)
"Energy delivery project" includes:
(i)
a hydroelectric energy storage system;
(ii)
a utility-scale battery storage system;
 or
(iii)
a nuclear power generation system
.
; or
(iv)
a district energy system.
(3)
(4)
"Emissions reduction project" means a project that is designed to reduce the 
emissions of an existing electrical generation facility, refinery, smelter, kiln, mineral 
processing facility, manufacturing facility, oil or gas production facility, or other 
industrial facility, by utilizing selective catalytic reduction technology, carbon capture 
utilization and sequestration technology, or any other emissions reduction technology or 
equipment.
(4)
(5)
"Fuel standard compliance project" means a project designed to retrofit a fuel 
refinery in order to make the refinery capable of producing fuel that complies with the 
United States Environmental Protection Agency's Tier 3 gasoline sulfur standard 
described in 40 C.F.R. Sec. 79.54.
(5)
(6)
"High cost infrastructure project" means: 
(a)
for an energy delivery project, fuel standard compliance project, mineral processing 
project, or underground mine infrastructure project, a project:
(i)
(A)
that expands or creates new industrial, mining, manufacturing, or 
agriculture activity in the state, not including a retail business;
(B)
that involves new investment of at least $50,000,000 made by an existing 
industrial, mining, manufacturing, or agriculture entity located within a county 
of the first or second class;
(C)
that involves new investment of at least $25,000,000 made by an existing 
industrial, mining, manufacturing, or agriculture entity located within a county 
of the third, fourth, fifth, or sixth class, or a municipality with a population of 
10,000 or less located within a county of the second class;
 or
(D)
that involves new investment of at least $10,000,000 for the construction of a 
plant or facility for thermal energy production of heating or cooling used in a 
district energy system; or
(D)
(E)
for the construction of a plant or other facility for the storage or 
production of fuel used for transportation, electricity generation, or industrial 
use;
(ii)
that requires or is directly facilitated by infrastructure construction; and
(iii)
for which the cost of infrastructure construction to the entity creating the project 
is greater than:
(A)
10% of the total cost of the project; or
(B)
$10,000,000; and
(b)
for an emissions reduction project, water purification project, or water resource 
forecasting project, a project:
(i)
that involves:
(A)
new investment of at least $50,000,000 made by an existing industrial, 
mining, manufacturing, or agriculture entity located within a county of the first 
or second class; or
(B)
new investment of at least $25,000,000 made by an existing industrial, 
mining, manufacturing, or agriculture entity located within a county of the 
third, fourth, fifth, or sixth class, or a municipality with a population of 10,000 
or less located within a county of the second class; and
(ii)
that requires or is directly facilitated by infrastructure construction.
(6)
(7)
"Infrastructure" means:
(a)
an energy delivery project;
(b)
a railroad as defined in Section 
54-2-1
;
(c)
a fuel standard compliance project;
(d)
a road improvement project;
(e)
a water self-supply project;
(f)
a water removal system project;
(g)
a solution-mined subsurface salt cavern;
(h)
a project that is designed to:
(i)
increase the capacity for water delivery to a water user in the state; or
(ii)
increase the capability of an existing water delivery system or related facility to 
deliver water to a water user in the state; 
(i)
an underground mine infrastructure project;
(j)
an emissions reduction project;
(k)
a mineral processing project;
(l)
a district energy system project;
(l)
(m)
a water purification project; or
(m)
(n)
a water resource forecasting project.
(7)
(8)
(a)
"Infrastructure cost-burdened entity" means an applicant that enters into an 
agreement with the office that qualifies the applicant to receive a tax credit as 
provided in this part.
(b)
"Infrastructure cost-burdened entity" includes a pass-through entity taxpayer, as 
defined in Section 
59-10-1402
, of a person described in Subsection 
(7)(a)
(8)(a)
.
(8)
(9)
"Infrastructure-related revenue" means an amount of tax revenue, for an entity 
creating a high cost infrastructure project, in a taxable year, that is directly attributable to 
a high cost infrastructure project, under:
(a)
Subsection 
59-24-103.5
(2)(e);
(b)
Title 59, Chapter 5, Part 1, Oil and Gas Severance Tax;
(c)
Title 59, Chapter 5, Part 2, Mining Severance Tax;
(d)
Title 59, Chapter 7, Corporate Franchise and Income Taxes;
(e)
Title 59, Chapter 10, Individual Income Tax Act; and
(f)
Title 59, Chapter 12, Sales and Use Tax Act.
(9)
(10)
"Mineral processing project" means a project that is designed to:
(a)
process, smelt, refine, convert, separate, or otherwise beneficiate metalliferous 
minerals as defined in Section 
59-5-201
 or a metalliferous compound as defined in 
Section 
59-5-202
;
(b)
calcine limestone or manufacture cement;
(c)
process, refine, or otherwise beneficiate chloride compounds, salts, potash, gypsum, 
sulfur or sulfuric acid, ammonium nitrate, phosphate, or uintaite; or
(d)
convert or gasify coal to recover chemical compounds, gases, or minerals.
(10)
(11)
"Office" means the Office of Energy Development created in Section 
79-6-401
.
(11)
(12)
"Tax credit" means a tax credit under Section 
59-7-619
 or 
59-10-1034
.
(12)
(13)
"Tax credit certificate" means a certificate issued by the office to an 
infrastructure cost-burdened entity that:
(a)
lists the name of the infrastructure cost-burdened entity;
(b)
lists the infrastructure cost-burdened entity's taxpayer identification number;
(c)
lists, for a taxable year, the amount of the tax credit authorized for the infrastructure 
cost-burdened entity under this part; and
(d)
includes other information as determined by the office.
(13)
(14)
(a)
"Underground mine infrastructure project" means a project that:
(i)
is designed to create permanent underground infrastructure to facilitate 
underground mining operations; and
(ii)
services multiple levels or areas of an underground mine or multiple underground 
mines.
(b)
"Underground mine infrastructure project" includes:
(i)
an underground access or a haulage road, entry, ramp, or decline;
(ii)
a vertical or incline mine shaft;
(iii)
a ventilation shaft or an air course; or
(iv)
a conveyor or a truck haulageway.
(14)
(15)
"Water purification project" means a project that, in order to meet applicable 
quality standards established under Title 19, Chapter 5, Water Quality Act, is designed 
to reduce the existing total dissolved solids or other naturally existing impurities 
contained in water sources:
(a)
located at a distance of not less than 2,000 feet below the surface;
(b)
associated with existing mineral operations; or
(c)
associated with deep water mining operations designed primarily for the 
revitalization of the Great Salt Lake.
(15)
(16)
"Water resource forecasting project" means a project that includes a network of 
permanent physical data collection systems designed to improve forecasting for the 
availability of seasonal water flows within the state, including flash flooding and other 
event-driven water flows resulting from localized severe weather events.
Section 3. 
Effective Date.
This bill takes effect on 
May 7, 2025
.
3-11-25 1:42 PM