SB 254 — Extracted Natural Resources Amendments

(d)(d)(i) (i) "Claimant" means a person that:

(e)- "Eligible5 claimant"- meansS.B. a claimant or a person to which a claimant assigns a tax credit in accordance with Subsections (4)(a)(vi)[ and] , (7), and (11).

254 Enrolled Copy (e) "Eligible claimant" means a claimant or a person to which a claimant assigns a tax credit in accordance with Subsections (4)(a)(vi)[ and] , (7), and (11).

- 6 - SB0254 compared with SB0254S04 (iii) recovering a mineral not under production from a secondary source at the time the activity begins, including tails, slag, waste dumps, or another similar secondary source, whether in solution or otherwise;

(3)- (a)6 Except- asEnrolled providedCopy inS.B. Subsection (3)(b), a person shall enter into an agreement with the division before beginning eligible exploration activities.

254 (3)(a) Except as provided in Subsection (3)(b), a person shall enter into an agreement with the division before beginning eligible exploration activities.

(4)(4)(a) (a) The agreement shall provide:

- 7 - SB0254 compared with SB0254S04 (i) the eligible exploration activities for which the person may incur certified expenditures eligible to receive a tax credit certificate, which may include certified expenditures from a taxable year beginning on or after January 1, 2025, and beginning before January 1, 2027;

and (v) the requirements for reporting certified expenditures and production of minerals as a direct result of eligible exploration activity, including:

(c)(c)(i) (i) The division shall approve certified expenditures upon receiving a report of a certified expenditure unless the division determines that the expenditure does not meet- the7 definition- ofS.B. certified expenditure.

254 Enrolled Copy meet the definition of certified expenditure.

(5)(5)(a) (a) A person with an agreement may apply for a tax credit certificate:

- 8 - SB0254 compared with SB0254S04 (i) upon becoming an eligible claimant;

(6)(6)(a) (a) After the division receives an application for a tax credit certificate, the division shall:

(c)(c)(i) (i) The division may not issue a tax credit certificate if the aggregate value of tax credit certificates issued for certified expenditures related to eligible exploration activities at the same mine exceeds [$20,000,000] $10,000,000.

(ii) Notwithstanding Subsection (6)(c)(i), the division may issue a tax credit certificate up to an aggregate value of [$30,000,000] $15,000,000 for certified expenditures related to eligible exploration activities at the same mine if the certified expenditures that exceed [$20,000,000] $10,000,000 are for eligible exploration- activities8 undertaken- toEnrolled produceCopy aS.B. mineral for which the United States is greater than 50% net import reliant, as provided in the Mineral Commodity Summaries published by the United States Geological Survey, in the calendar year in which an eligible exploration activity commences.

-254 9exploration -activities SB0254undertaken comparedto withproduce SB0254S04a (7)mineral (a)for Ifwhich the claimantUnited meetsStates theis requirementsgreater ofthan Subsection50% (4)(a)(vi),net theimport divisionreliant, shallas issueprovided anin assignedthe taxMineral creditCommodity certificateSummaries topublished by the personUnited identifiedStates byGeological Survey, in the claimantcalendar year in which an amounteligible equalexploration toactivity thecommences. lesser of:

(7)(a) If the claimant meets the requirements of Subsection (4)(a)(vi), the division shall issue an assigned tax credit certificate to the person identified by the claimant in an amount equal to the lesser of:

(11) A claimant may assign a tax credit certificate in accordance with Subsections (4)(a)(vi) and (7) only to either a new owner or operator of the same mining operations in the state that- engaged9 in- theS.B. eligible exploration activity that gives rise to the claimant's tax credit certificate.

254 Enrolled Copy that engaged in the eligible exploration activity that gives rise to the claimant's tax credit certificate.

- 10 - SB0254 compared with SB0254S04 [(10)] (12) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the division may make rules governing the administration of the agreement and tax credit certificate process described in this section.

Section 340-8-5.5 is enacted to read:

40-8-5.5.40-8-5.5 (Effective 05/06/26).

(2)(2)(a) (a) The division shall prioritize division resources to process a permit that is:

51-9-202.51-9-202 (Effective 07/01/26).

(1) Until July 1, 2003, 50% of all funds of every kind that are received by the state that are related to the settlement agreement that the state entered into with leading tobacco manufacturers on November - 1110 - SB0254Enrolled comparedCopy withS.B. SB0254S04 23, 1998, shall be deposited into the permanent state trust fund created by and operated under Utah Constitution, Article XXII, Section 4.

254 related to the settlement agreement that the state entered into with leading tobacco manufacturers on November 23, 1998, shall be deposited into the permanent state trust fund created by and operated under Utah Constitution, Article XXII, Section 4.

(7)(7)(a) (a) In accordance with Utah Constitution, Article XXII, Section 4, the interest and dividends earned annually from the permanent state trust fund shall be deposited in the General Fund.

- 12 - SB0254 compared with SB0254S04 (8) This section does not apply to funds deposited under [Chapter 9, Part 3, Infrastructure and- Economic11 Diversification- InvestmentS.B. Account and Deposit or Credit of Certain Severance Taxes Act] Part 3, Deposit or Credit of Certain Severance Taxes and Interest and Dividends, into the permanent state trust fund.

254 Enrolled Copy and Economic Diversification Investment Account and Deposit or Credit of Certain Severance Taxes Act] Part 3, Deposit or Credit of Certain Severance Taxes and Interest and Dividends, into the permanent state trust fund.

Deposit or Credit of Certain Severance Taxes and Interest and Dividends 51-9-302.51-9-302 (Effective 07/01/26).

51-9-305.51-9-305 (Effective 07/01/26).

(5)(5)(a) (a) In accordance with Utah Constitution, Article XXII, Section 4, the interest and dividends earned annually on revenue from severance taxes that are credited to the permanent state trust fund shall be credited to the General Fund.

- 13 - SB0254 compared with SB0254S04 (b) Interest and dividends earned on revenue from severance taxes that are credited to the General Fund [pursuant to] in accordance with Subsection (5)(a) shall be credited to- the12 [Infrastructure- andEnrolled EconomicCopy DiversificationS.B. Investment Account created in Section 51-9-303] State Reinvestment Restricted Account created in Section 51-9-1002.

254 to the [Infrastructure and Economic Diversification Investment Account created in Section 51-9-303] State Reinvestment Restricted Account created in Section 51-9-1002.

Section 751-9-1001 is enacted to read:

State Reinvestment Restricted Account 51-9-1001.51-9-1001 (Effective 07/01/26).

Section 851-9-1002 is enacted to read:

51-9-1002.51-9-1002 (Effective 07/01/26).

Section 951-9-1003 is enacted to read:

51-9-1003.51-9-1003 (Effective 07/01/26).

- 14 - SB0254 compared with SB0254S04 (a) income tax relief;

(c)- facilitating13 preservation- ofS.B. the Great Salt Lake watershed, as described in Title 73, Chapter 10g, Part 4, Great Salt Lake Watershed Integrated Water Assessment;

254 Enrolled Copy (c) facilitating preservation of the Great Salt Lake watershed, as described in Title 73, Chapter 10g, Part 4, Great Salt Lake Watershed Integrated Water Assessment;

59-2-924.59-2-924 (Effective 05/06/26) (Applies beginning 01/01/26).

{(EffectiveDefinitions 05/06/26)}(Effective 05/06/26) (Applies beginning 01/01/26)Definitions -- Report of valuation of property to county auditor and commission -- Transmittal by auditor to governing bodies -- Calculation of certified tax rate -- Rulemaking authority -- Adoption of tentative budget -- Notice provided by the commission.

(a)(a)(i) (i) "Ad valorem property tax revenue" means revenue collected in accordance with this chapter.

- 15 - SB0254 compared with SB0254S04 (ii) "Ad valorem property tax revenue" does not include:

(A)- interest;14 - Enrolled Copy S.B.

254 (A) interest;

(c)(c)(i) (i) "Aggregate taxable value of all property taxed" means:

- 16 - SB0254 compared with SB0254S04 (v) for an authority created under Section 63H-1-201, the same as that term is defined in Section 63H-1-102;

(vi) for a host local government, the same as that term is defined in Section 63N-2-502;- 15 - S.B.

254 Enrolled Copy 63N-2-502;

(x) for a major sporting event venue zone created under Title 63N, Chapter 3, Part 17, Major Sporting Event Venue Zone Act, a property's taxable value as shown upon the assessment roll last equalized during the property tax base year, as that term is defined in Section 63N-3-1701;[ {[} or] (xi) for an electrical energy development zone created under Section 79-6-1104, the value of the property within an electrical energy development zone, as shown on the assessment roll last equalized before the creation of the electrical development zone, as that term is defined in Section 79-6-1104[.] ;

or (xii) for a critical minerals zone created under Title 79, Chapter 10, Part 4, Critical Minerals Zone, the value of the property within a critical minerals zone, as shown on the assessment {rule } roll last equalized before the creation of the critical minerals zone, as that term is defined in Section 79-10-101.

or - 17 - SB0254 compared with SB0254S04 (iii) a change in value as a result of a change in the method of apportioning the value prescribed by the Legislature, a court, or the commission in an administrative rule or- administrative16 order.- Enrolled Copy S.B.

254 or administrative order.

(g)(g)(i) (i) "Centrally assessed new growth" means the greater of:

- 18 - SB0254 compared with SB0254S04 (ii) "Centrally assessed new growth" does not include a change in value for a centrally assessed industry as a result of a change in the method of apportioning the value prescribed by the Legislature, a court, or the commission in an administrative rule or administrative order.

(h) "Certified tax rate" means a tax rate that will provide the same ad valorem property tax- revenue17 for- aS.B. taxing entity as was budgeted by that taxing entity for the prior year.

254 Enrolled Copy tax revenue for a taxing entity as was budgeted by that taxing entity for the prior year.

- 19 - SB0254 compared with SB0254S04 (A) the difference between the taxable value for the current year and the base taxable- value18 of- theEnrolled propertyCopy thatS.B. is located within a project area;

254 taxable value of the property that is located within a project area;

(viii) for a home ownership promotion zone created under Title 10, Chapter 21, Part 5, Home Ownership Promotion Zone for Municipalities, or Title 17, Chapter 80, Part- 5,19 Home- OwnershipS.B. Promotion Zone, an amount calculated by multiplying:

-254 20Enrolled -Copy SB0254Part compared5, withHome SB0254S04Ownership (A)Promotion theZone, differencean betweenamount thecalculated taxableby valuemultiplying: and the base taxable value of the property that is located within a home ownership promotion zone and on which tax increment is collected;

(A) the difference between the taxable value and the base taxable value of the property that is located within a home ownership promotion zone and on which tax increment is collected;

and (B) the number that represents the percentage of tax increment that is paid to the major sporting event venue zone, as approved by a major sporting event venue zone committee described in Section 63N-1a-1706;[ {[} or] (xi) for an electrical energy development zone created under Section 79-6-1104, the amount calculated by multiplying:

and (B) the number that represents the percentage of the tax increment that is paid to a community- reinvestment20 agency- orEnrolled aCopy stateS.B. land use authority, as defined in Section 79-10-401, and the Critical Minerals Development Account created in Section 79-10-701.

-254 21community -reinvestment SB0254agency comparedor witha SB0254S04state (p)land (i)use "Locallyauthority, assessedas newdefined growth"in meansSection 79-10-401, and the greaterCritical of:Minerals Development Account created in Section 79-10-701.

(p)(i) "Locally assessed new growth" means the greater of:

(vi) for a home ownership promotion zone created under Title 10, Chapter 21, Part 5, Home Ownership Promotion Zone for Municipalities, or Title 17, Chapter 80, Part 5,- Home21 Ownership- PromotionS.B. Zone, the same as that term is defined in Section 10-21-101 or Section 17-80-101;

-254 22Enrolled -Copy SB02545, compared with SB0254S04 (vii) for a first home investment zone created under Title 63N, Chapter 3, Part 16, First Home InvestmentOwnership ZonePromotion Act,Zone, the same as that term is defined in Section 63N-3-1601;10-21-101 or Section 17-80-101;

(vii) for a first home investment zone created under Title 63N, Chapter 3, Part 16, First Home Investment Zone Act, the same as that term is defined in Section 63N-3-1601;

(viii) for a first home investment zone created under Title 63N, Chapter 3, Part 16, First- Home22 Investment- ZoneEnrolled Act,Copy anS.B. amount equal to the incremental value that is no longer provided to a first home investment zone as tax increment;

254 First Home Investment Zone Act, an amount equal to the incremental value that is no longer provided to a first home investment zone as tax increment;

- 23 - SB0254 compared with SB0254S04 (s) "Project area incremental revenue" means the same as that term is defined in Section 17C-1-1001.

and (b) a statement containing the taxable value of all personal property a county assessor assesses- in23 accordance- withS.B. Part 3, County Assessment, from the prior year end values.

254 Enrolled Copy assesses in accordance with Part 3, County Assessment, from the prior year end values.

(4)(4)(a) - 24 - SB0254 compared with SB0254S04 (a) Except as otherwise provided in this section, the certified tax rate shall be calculated by dividing the ad valorem property tax revenue that a taxing entity budgeted for the prior year by the amount calculated under Subsection (4)(b).

(5) A certified tax rate for a taxing entity described in this Subsection (5) shall be calculated as- follows:24 - Enrolled Copy S.B.

254 as follows:

(c) for a community reinvestment agency that received all or a portion of a taxing entity's project area incremental revenue in the prior year under Title 17C, Chapter 1, Part 10, Agency Taxing Authority, - 25 - SB0254 compared with SB0254S04 the certified tax rate is calculated as described in Subsection (4) except that the commission shall treat the total revenue transferred to the community reinvestment agency as ad valorem property tax revenue that the taxing entity budgeted for the prior year;

(6)(6)(a) (a) A taxing entity may impose a judgment levy under Section 59-2-1328 or 59-2-1330 at a rate that is sufficient to generate only the revenue required to satisfy one or more eligible judgments.

(7)(7)(a) (a) For the purpose of calculating the certified tax rate, the county auditor shall use:

(A)- a25 county- assessorS.B. assesses in accordance with Part 3, County Assessment;

254 Enrolled Copy (A) a county assessor assesses in accordance with Part 3, County Assessment;

(8)(8)(a) (a) On or before June 30 of each year, a taxing entity shall adopt a tentative budget.

- 26 - SB0254 compared with SB0254S04 (c) The county auditor shall notify property owners of any intent to levy a tax rate that exceeds the certified tax rate in accordance with Sections 59-2-919 and 59-2-919.1.

(9)(9)(a) (a) Subject to Subsection (9)(d), the commission shall provide notice, through electronic means on or before July 31, to a taxing entity and the Revenue and Taxation Interim Committee if:

(c) For purposes of Subsection (9)(a)(ii), the commission shall calculate an amount by subtracting the total taxable value of real and personal property of a taxpayer the commission assesses in accordance with Part 2, Assessment of Property, for the current year, from the total year end taxable value of the real and personal property of a taxpayer the commission assesses in accordance with Part 2, Assessment of Property,- for26 the- previousEnrolled year.Copy S.B.

254 Property, for the previous year.

59-5-115.59-5-115 (Effective 05/06/26) (Applies beginning 01/01/26).

- 27 - SB0254 compared with SB0254S04 (2) Except as provided in Section 51-9-305, 51-9-306, [51-9-307,] 51-9-1002, 59-5-116, 59-5-119, or 59-5-121, a tax imposed and collected under Section 59-5-102 shall be paid to the commission, promptly remitted to the state treasurer, and credited to the General Fund.

59-5-116.59-5-116 (Effective 05/06/26) (Applies beginning 01/01/26).

(A)- held27 in- trustS.B. by the United States for the Tribe and [its] the Tribe's members;

254 Enrolled Copy (A) held in trust by the United States for the Tribe and [its] the Tribe's members;

(2)(2)(a) (a) The maximum amount deposited in the Uintah Basin Revitalization Fund may not exceed:

- 28 - SB0254 compared with SB0254S04 (ii) $5,000,000 in fiscal year 2006-07;

(b)(b)(i) (i) The commission shall increase or decrease the dollar amount described in Subsection (2)(a)(iii) by a percentage equal to the percentage difference between the consumer price index for the preceding calendar year and the consumer price index for calendar year 2008;

59-5-119.59-5-119 (Effective 05/06/26) (Applies beginning 01/01/26).

(i)- for28 which- productionEnrolled beganCopy onS.B. or before June 30, 1996;

254 (i) for which production began on or before June 30, 1996;

(2)(2)(a) (a) The maximum amount deposited in the Navajo Revitalization Fund may not exceed:

- 29 - SB0254 compared with SB0254S04 (b) Any amounts in excess of the maximum described in Subsection (2)(a) shall be credited as provided in Sections 51-9-305, 51-9-306, [51-9-307] 51-9-1002, and 59-5-115.

59-5-215.59-5-215 (Effective 05/06/26) (Applies beginning 01/01/26).

{(EffectiveDisposition 05/06/26)}(Effective 05/06/26) (Applies beginning 01/01/26)Disposition of taxes collected -- Credit to General Fund -- {Transfers for critical minerals} Transfer to State Reinvestment Restricted Account.

{(1)(1) As used in this section, "above-trend revenue" means the amount by which the actual revenue from the severance tax deposited into the General Fund under Subsection (2) exceeds the long-term trend of mineral severance tax revenue to the General Fund as determined by the Office of the Legislative Fiscal Analyst and the Governor's Office of Planning and Budget.} (2){(1)} Except as provided in Section 51-9-305, 51-9-306, or [51-9-307] 51-9-1002, or Subsection 59-5-202(5), a tax imposed and collected under Section 59-5-202 shall be paid to the commission, promptly remitted to the state treasurer, and credited to the General Fund.

(3){(2)}(2) {The } For a fiscal year beginning on or after July 1, 2026, the Division of Finance shall transfer {above-trend revenue up to $20,000,000 } from the General Fund {into } to the {Critical Minerals Development } State Reinvestment Restricted Account{,Account } created in Section {79-10-701, each year beginning in the fiscal year beginning July 1, 2026} 51-9-1002 the amount credited to the General Fund under Subsection (1) that exceeds $11,526,000.

63J-1-602.2.63J-1-602.2 (Effective 05/06/26) (Partially Repealed 07/01/29).

(3)- The29 Rangeland- ImprovementS.B. Act created in Section 4-20-101.

254 Enrolled Copy (3) The Rangeland Improvement Act created in Section 4-20-101.

- 30 - SB0254 compared with SB0254S04 (8) The Wildlife Land and Water Acquisition Program created in Section 23A-6-205.

(24) Innovation grants under Section 53G-10-608, except as provided in Subsection 53G-10-608(3).- 30 - Enrolled Copy S.B.

254 53G-10-608(3).

- 31 - SB0254 compared with SB0254S04 (29) The Colorado River Authority of Utah, created in Title 63M, Chapter 14, Colorado River Authority of Utah Act.

(44)- Indigent31 defense- asS.B. provided in Title 78B, Chapter 22, Part 4, Utah Indigent Defense Commission.

254 Enrolled Copy (44) Indigent defense as provided in Title 78B, Chapter 22, Part 4, Utah Indigent Defense Commission.

- 32 - SB0254 compared with SB0254S04 (48) The Critical Minerals Council created by Section 79-10-301.

79-2-201.79-2-201 (Effective 05/06/26) (Partially Repealed 07/01/29).

(p)(p)(i) (i) an advisory council that includes in the advisory council's duties advising on state boating policy, authorized by Section 73-18-3.5;

or (ii) an advisory council that includes in the advisory council's duties advising on off-highway- vehicle32 use,- authorizedEnrolled byCopy SectionS.B. 41-22-10;

254 off-highway vehicle use, authorized by Section 41-22-10;

and - 33 - SB0254 compared with SB0254S04 (v) the Critical Minerals Council, created in Section 79-10-301.

Section 1779-10-101 is enacted to read:

79-10-101.CHAPTER 10.

Critical Minerals Strategic Act Part 1.

General Provisions 79-10-101 (Effective 05/06/26).

10.As used in this chapter:

Critical Minerals Strategic Act 1.

General Provisions As used in this chapter:

Section 1879-10-201 is enacted to read:

79-10-201.Part 2.

State Critical Minerals Objectives and Policy 79-10-201 (Effective 05/06/26).

2.(1) The state's long-term objectives related to critical minerals are:

State- Critical33 Minerals- ObjectivesS.B. and Policy (1) The state's long-term objectives related to critical minerals are:

254 Enrolled Copy (a) to capture 20% to 25% of United States domestic critical minerals demand;

and - 34 - SB0254 compared with SB0254S04 (e) to secure federal designation of an entity within the state as a United States critical minerals national laboratory.

Section 1979-10-202 is enacted to read:

79-10-202.79-10-202 (Effective 05/06/26).

The Natural Resources, Agriculture, and Environment Interim Committee shall annually review- the34 state's- criticalEnrolled mineralCopy objectivesS.B. and policy under Section 79-10-201 and propose any changes to the Legislature.

254 review the state's critical mineral objectives and policy under Section 79-10-201 and propose any changes to the Legislature.

Section 2079-10-301 is enacted to read:

79-10-301.Part 3.

Critical Minerals Coordinating Council 79-10-301 (Effective 05/06/26).

3.(1) There is created within the Department of Natural Resources a mixed purpose board known as the "Critical Minerals Council." (2) The council consists of the following 11 members:

Critical Minerals Coordinating Council - 35 - SB0254 compared with SB0254S04 (1) There is created within the Department of Natural Resources a mixed purpose board known as the "Critical Minerals Council." (2) The council consists of the following 11 members:

(g) {a representative from } the president of an association representing {the } Utah's mining industry, including hardrock operators, industrial mineral operators, coal operators, mineral processing operations, and mining services companies, appointed by the governor;

and (j) two at-large members {representing } who represent a relevant industryindustry, {or } , represent a state research center, or have expertise in environmental regulation, appointed by the members of the council described in Subsections (2)(a) through (i).

(3)(3)(a)(i) (a) (i) The director of the Office of Energy Development, or the director's designee, is the co-chair of the council.

and - 3635 - SB0254S.B. compared with SB0254S04 (ii) the individual appointed under Subsection {(1)(c)} (2)(c).

(4)254 (a)Enrolled TheCopy majority(ii) of the membersindividual constitutesappointed aunder quorumSubsection of(2)(c). the council.

(4)(a) The majority of the members constitutes a quorum of the council.

(6)(6)(a) (a) A member appointed under Subsections (2)(g) through (j) shall serve a term of four years.

(c) Notwithstanding Subsection (6)(a), the council shall, at the time of appointment or reappointment, adjust the length of terms to ensure that the terms of the members appointed under Subsections (2)(2)(g) (g) through (j) are staggered so that approximately half of the members appointed under Subsections (2)(g) through (j) are appointed every two years.

(7)(7)(a) (a) A vacancy that occurs on the council for any reason shall be filled in the same manner as the original appointment.

(9)(9)(a) (a) A council member who has, will have, or later acquires an interest, direct or indirect, in a transaction with the council shall immediately disclose the nature and extent of that interest in writing to the council as soon as the council member has knowledge of the actual or prospective interest.

- 37 - SB0254 compared with SB0254S04 (c) Upon disclosure, that council member may participate in an action by the council authorizing the transaction.

(10)- The36 Department- ofEnrolled NaturalCopy ResourcesS.B. shall provide staff support to the council.

254 (10) The Department of Natural Resources shall provide staff support to the council.

Section 2179-10-302 is enacted to read:

79-10-302.79-10-302 (Effective 05/06/26).

{and} (l) identify transportation and logistics needs and strategic investments to facilitate high-capacity, efficient handling of critical minerals;

and (l){(m)}(m) advise the Legislature about the need, if any, for legislative action.

- 38 - SB0254 compared with SB0254S04 (3) The council may make rules, in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, creating a dispute resolution process to resolve conflicts between agencies or private entities represented by a member of the council.

(4)- (a)37 The- councilS.B. may organize standing or ad hoc committees that operate in accordance with guidelines established by the council, regarding specific state and industry needs related to critical minerals development, including:

254 Enrolled Copy (4)(a) The council may organize standing or ad hoc committees that operate in accordance with guidelines established by the council, regarding specific state and industry needs related to critical minerals development, including:

(iv){(v)}(v) logistics and infrastructure;

(v){(vi)}(vi) international trade;

or (vi){(vii)}(vii) other needs related to critical minerals development.

(5)(5)(a) (a) The council shall report annually by no later than October 1 to the Natural Resources, Agriculture, and Environment Interim Committee.

(a) interfere with or impair with the statutory authority of a state agency to issue a permit;

Section 2279-10-303 is enacted to read:

79-10-303.79-10-303 (Effective 05/06/26).

- 39 - SB0254 compared with SB0254S04 (1) Council members are designated as area leads as provided in this section.

(3)(3)(a) (3){(a)} The director of the Division of Oil, Gas, and Mining, or the director's designee, shall address regulation and permitting and coordinate with state agencies related toto: {permitting and information gathering for extraction or reclamation projects, including coordinating with the Department of Environmental Quality and the Utah Geological Survey.} :

and (ii)- information38 gathering- forEnrolled extractionCopy orS.B. reclamation projects.

254 (ii) information gathering for extraction or reclamation projects.

(4)(4)(a) (a) The council member appointed under Subsection 79-10-301(2)(c) shall address incentives and critical minerals zones and coordinate:

{and} (iv) accessing federal appropriations and other federal funding sources{.}sources; ;

(5)(5)(a) - 40 - SB0254 compared with SB0254S04 (a) The council member representing the University of Utah shall coordinate issues related to innovation including:

{and} (iii) an association representing Utah's mining industry, including hardrock operators, industrial mineral operators, coal operators, mineral processing operations, and mining services companies;

and (iii){(iv)}(iv) {an association representing } the {mining } aerospace and defense industry.

Section 2379-10-401 is enacted to read:

79-10-401.Part 4.

Critical Minerals Zone 79-10-401 (Effective 05/06/26).

4.- 39 - S.B.

Critical254 MineralsEnrolled ZoneCopy As used in this part:

- 41 - SB0254 compared with SB0254S04 (c) the School and Institutional Trust Lands Administration created in Section 53C-1-201;

Section 2479-10-402 is enacted to read:

79-10-402.79-10-402 (Effective 05/06/26).

(d) report annually by October 1 to the Natural Resources, Agriculture, and Environment Interim- Committee40 regarding:- Enrolled Copy S.B.

254 Interim Committee regarding:

Section 2579-10-403 is enacted to read:

79-10-403.79-10-403 (Effective 05/06/26).

(1)(1)(a) (a) Except as provided in Subsection (1)(b), a county or municipality may not offer financial incentives for a critical minerals extraction or processing project that is not located within a designated critical minerals zone.

- 42 - SB0254 compared with SB0254S04 (2) A county or municipality may:

(iv) if the applicant is a municipality, evidence of coordination with the county in which- the41 proposed- criticalS.B. minerals zone is located, including any interlocal agreement entered into between the county or municipality and the council, as applicable;

254 Enrolled Copy which the proposed critical minerals zone is located, including any interlocal agreement entered into between the county or municipality and the council, as applicable;

and - 43 - SB0254 compared with SB0254S04 (C) projected economic benefits;

(b)- make42 a- determinationEnrolled onCopy anS.B. application within 60 days of submission;

254 (b) make a determination on an application within 60 days of submission;

and - 44 - SB0254 compared with SB0254S04 (b) the county shall transmit to the council copies of the property tax assessment rolls for the property within the critical minerals zone.

(6)(6)(a) (a) Each year, the county auditor shall:

(d) For property tax differential not subject to Subsection (4)(d) or (4)(e), the council may enter into agreements with taxing entities regarding the allocation of the property- tax43 differential.- S.B.

254 Enrolled Copy property tax differential.

Section 2679-10-501 is enacted to read:

79-10-501.Part 5.

Critical Minerals Atlas 79-10-501 (Effective 05/06/26).

5.(1)(a) The Division of Oil, Gas, and Mining shall lead a joint effort with the Utah Geological Survey and Office of Energy Development to organize and maintain a clearinghouse of geological data related to critical minerals known as the "Critical Minerals Atlas." (b) The purpose of the atlas is to:

Critical Minerals Atlas (1) (a) The Division of Oil, Gas, and Mining shall lead a joint effort with the Utah Geological Survey and Office of Energy Development to organize and maintain a clearinghouse of geological data related to critical minerals known as the "Critical Minerals Atlas." (b) The purpose of the atlas is to:

and - 45 - SB0254 compared with SB0254S04 (ii) reconcile differences in the data submitted to the atlas.

(2)(2)(a) (a) The agencies described in Subsection (1)(a) shall:

(i) develop a process by which a state agency, state institution of higher education, or private entityentity, , including a nonprofit entity, may submit information to the atlas;

Section 2779-10-601 is enacted to read:

79-10-601.Part 6.

Minerals for Industrial, National, and Economic Security Center process79-10-601 for(Effective creation05/06/26). -- Governance.

6.Minerals for Industrial, National, and Economic - 44 - Enrolled Copy S.B.

Minerals254 for Industrial, National, and Economic Security Center (1)process There is created under the general supervision of the council a center known as the "Minerals for Industrial,creation National,-- andGovernance. Economic Security Center," to serve the objectives described in Section 79-10-602.

(1) There is created under the general supervision of the council a center known as the "Minerals for Industrial, National, and Economic Security Center," to serve the objectives described in Section 79-10-602.

and - 46 - SB0254 compared with SB0254S04 (b) the Natural Resources, Agriculture, and Environment Interim Committee by no later than the 2026 October interim meeting of the Natural Resources, Agriculture, and Environment Interim Committee.

Section 2879-10-602 is enacted to read:

79-10-602.79-10-602 (Effective 05/06/26).

and (4)- lay45 groundwork- forS.B. securing federal designation of an entity within the state as a United States critical minerals national laboratory.

254 Enrolled Copy (4) lay groundwork for securing federal designation of an entity within the state as a United States critical minerals national laboratory.

Section 2979-10-701 is enacted to read:

79-10-701.Part 7.

Fiscal Matters 79-10-701 (Effective 05/06/26).

7.(1) There is created within the General Fund a restricted account known as the "Critical Minerals Development Account." (2) Subject to appropriation, the council shall administer the Critical Minerals Development Account for the purposes described in Subsection (5).

Fiscal Matters (1) There is created within the General Fund a restricted account known as the "Critical Minerals Development Account." (2) Subject to appropriation, the council shall administer the Critical Minerals Development Account for the purposes described in Subsection (5).

{(a)(a) {revenue deposited into the Critical Minerals Development Account under Section 59-5-215;} } - 47 - SB0254 compared with SB0254S04 (b){(a)} revenue deposited into the Critical Minerals Development Account under Section 79-10-403;

(c){(b)}(b) money appropriated by the Legislature;

(d){(c)}(c) federal money;

(e){(d)}(d) donations or grants from public or private entities;

and (f){(e)}(e) interest and other earnings earned on money in the Critical Minerals Development Account.

(4)(4)(a) (a) The Critical Minerals Development Account shall earn interest.

(5) Subject to appropriation, the council may use {fund } account money to:

Section- 30.46 - Enrolled Copy S.B.

254 Section 30.

This Bill Repeals:

Section .31.

The following sums of money are appropriated for the fiscal year beginning July 1, - 48 - SB0254 compared with SB0254S04 2025, and ending June 30, 2026.

ITEM 2 To General Fund Restricted - State Reinvestment Restricted Account From Infrastructure and Economic Diversification Investment Account, One-e4,016,200One-time 14,016,200 Schedule of Programs:

State Reinvestment Restricted Account 14,016,200 The Legislature intends that the Division of Finance transfer any balances remaining in the Infrastructure- and47 Economic- DiversificationS.B. Investment Account after fiscal year 2026 closeout to the State Reinvestment Restricted Account.

Section254 .Enrolled Copy Infrastructure and Economic Diversification Investment Account after fiscal year 2026 closeout to the State Reinvestment Restricted Account.

Section 32.

These are additions to amounts previously appropriated for - 49 - SB0254 compared with SB0254S04 fiscal year 2027.

Effective date.

{This(1) } Except as provided in Subsection (2), this bill takes effect {on } May 6, 2026.

(g)- Section48 51-9-1001- (EffectiveEnrolled 07/01/26);Copy S.B.

254 (g) Section 51-9-1001 (Effective 07/01/26);

and - 50 - SB0254 compared with SB0254S04 (i) Section 51-9-1003 (Effective 07/01/26).

Retrospective Operation.operation.

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