HB 514 — Utah Energy Council Amendments

(5) The board shall adopt bylaws governing the conduct of board meetings, quorum requirements, and other procedural matters consistent with this part and Chapter 1.1, Provisions Applicable to All Special Districts.

(6)(6)(a) - 5 - HB0514 compared with HB0514S02 (a) When acting in the capacity of a board member, a council member's fiduciary obligation runs to the district.

Section 517B-2a-1405 is enacted to read:

17B-2a-1405.17B-2a-1405 .

Section 617B-2a-1406 is enacted to read:

17B-2a-1406.17B-2a-1406 .

(1)- Notwithstanding5 Subsection- 17B-1-103(4)H.B. and Section 17B-1-202, and in addition to the powers conferred on a special district under Section 17B-1-103, the district may:

514 Enrolled Copy (1) Notwithstanding Subsection 17B-1-103(4) and Section 17B-1-202, and in addition to the powers conferred on a special district under Section 17B-1-103, the district may:

- 6 - HB0514 compared with HB0514S02 (g) accept grants, gifts, loans, and other financial assistance from federal, state, and local governmental entities;

(3)(3)(a) (a) The district is not an electric service provider and may not sell, distribute, or deliver electricity directly to retail customers.

(b) Neither the district nor the board may provide electric service within the certificated service territory of any entity that has been authorized to provide retail electric service- in6 that- territoryEnrolled pursuantCopy to:H.B.

514 service in that territory pursuant to:

Section 717B-2a-1407 is enacted to read:

17B-2a-1407.17B-2a-1407 .

(2)(2)(a) (a) Revenue bonds issued under this section:

- 7 - HB0514 compared with HB0514S02 (i) are limited obligations of the district payable solely from revenues deposited into the enterprise fund described in Section 17B-2a-1408;

(3)(3)(a) (a) The commission shall review and may approve a bond before the district may issue a bond.

(i) may not change before issuing the bond the terms of the bond that were reviewed by the commission if the change is outside the approved parameters and intended purposes;- 7 - H.B.

514 Enrolled Copy purposes;

- 8 - HB0514 compared with HB0514S02 (7) Notwithstanding Chapter 1, Part 11, Special District Bonds, the district may not issue general obligation bonds.

Section 817B-2a-1408 is enacted to read:

17B-2a-1408.17B-2a-1408 .

Section 917B-2a-1409 is enacted to read:

17B-2a-1409.- 8 - Enrolled Copy H.B.

514 17B-2a-1409 .

- 9 - HB0514 compared with HB0514S02 (a) is a service agreement;

Section 1017B-2a-1410 is enacted to read:

17B-2a-1410.17B-2a-1410 .

(4) Notwithstanding this section, nothing prohibits the district from agreeing to a payment in- lieu9 of- taxesH.B. in the board's sole discretion.

514 Enrolled Copy in lieu of taxes in the board's sole discretion.

Section 1117B-2a-1411 is enacted to read:

17B-2a-1411.17B-2a-1411 .

79-6-1101.79-6-1101 .

- 10 - HB0514 compared with HB0514S02 (1) As used in this part:

(f){(g)}(g) "State energy financing institution" means the same as that term is defined in 10 C.F.R.

(3)- The10 purpose- ofEnrolled theCopy councilH.B. is to facilitate the development of electrical energy generation and transmission projects within the state, including:

514 (3) The purpose of the council is to facilitate the development of electrical energy generation and transmission projects within the state, including:

79-6-1102.79-6-1102 .

- 11 - HB0514 compared with HB0514S02 (b) two individuals appointed by the governor;

{(e)(e) {thetwo executiveindividuals directorappointed ofby the Governor'smembers Officedescribed in Subsections (1)(a) through (d), each of Economicwhom Opportunityhave experience in one or themore executiveof director'sthe designee;following:

and} } (f){(e)} {one individual jointly } two individuals appointed by the {co-chairs } members described in {Subsection (4)(b) who has } Subsections (1)(a) through (d), each of whom have experience inone or more of the following:

(i){(ii)}(ii) public utilities, including utility operations, management, regulation, or policy;

(ii){(iii)}(iii) bonding or public financing, including municipal bond issuance, project finance, or public-public-private private partnerships;

or (iii){(iv)}(iv) relevant legal matters, including energy law, public finance law, utility regulation, or securities law.

(2)(2)(a) (a) Except as provided in Subsection (2)(b), a council member appointed under Subsection (1):

(ii)- one11 member- appointedH.B. by the governor under Subsection (1)(b) shall serve a three-year term;

514 Enrolled Copy (ii) one member appointed by the governor under Subsection (1)(b) shall serve a three-year term;

(c) A member appointed under Subsection {(1)(f) } (1)(e) may be removed by {joint action } majority vote of the {co-chairs} council members appointed under Subsections (1)(a) through (1)(d).

-(4)(a) 12 - HB0514 compared with HB0514S02 (4) (a) Until July 1, 2026, the director, or the director's designee, shall serve as chair of the council.

and (ii) the president of the Senate and the speaker of the House of Representatives shall jointly designate one member of the council described in Subsections (1)(b) through {(f) } (1)(e) to serve as a co-co-chair chair of the council.

(c) The co-chair designated under Subsection (4)(b)(ii){:}(4)(b)(ii) may be removed as co-chair and replaced by joint designation of the president of the Senate and the speaker of the House of Representatives.

[(4)] (5)(5)(a) (a)A {shallmajority serveof ascouncil co-chairmembers forconstitutes a termquorum determinedfor byconducting thecouncil presidentbusiness. of the Senate and the speaker of the House of Representatives;

and} {(ii)} { may be removed as co-chair and replaced by joint designation of the president of the Senate and the speaker of the House of Representatives.} {[(4)] (5)} {(a)} A majority of council members constitutes a quorum for conducting council business.

[(6)] (7)(7)(a) (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:

(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.- 12 - Enrolled Copy H.B.

514 Expenses.

(9)(9)(a) - 13 - HB0514 compared with HB0514S02 (a) Each member of the council serves concurrently as a member of the board of trustees of the district by virtue of the member's appointment to the council.

79-6-1103.79-6-1103 .

(f)- administer13 the- ElectricalH.B. Energy Development Investment Fund created in Section 79-6-1105;

-514 14Enrolled -Copy HB0514(f) comparedadminister withthe HB0514S02Electrical (g)Energy makeDevelopment recommendationsInvestment regardingFund electricalcreated energyin policySection to79-6-1105; state and local governments;

(g) make recommendations regarding electrical energy policy to state and local governments;

(iii)- status14 of- theEnrolled operatorCopy contract;H.B.

514 (iii) status of the operator contract;

- 15 - HB0514 compared with HB0514S02 (2) The council may create the Utah Energy Infrastructure Service District as provided in Section 17B-2a-1403.

[(4)] (5)(5)(a) (a) The portion of the property tax differential that is distributed to the municipality shall be used for:

79-6-1104.79-6-1104 .

(a) "Base taxable value" means the value of property within an electrical energy development- zone,15 as- shownH.B. on the assessment roll last equalized before the creation of the electrical energy development zone.

514 Enrolled Copy development zone, as shown on the assessment roll last equalized before the creation of the electrical energy development zone.

- 16 - HB0514 compared with HB0514S02 (c) "Community reinvestment project area" means the same as that term is defined in Section 17C-1-102.

(2)(2)(a) (a) Except as provided in Subsection (2)(b), a county or municipality may not offer financial incentives for a baseload electrical energy project that is not located within a designated electrical energy development zone.

(b)- enter16 into- anEnrolled interlocalCopy agreementH.B. with the council outlining each parties' responsibilities relating to an energy development zone;

514 (b) enter into an interlocal agreement with the council outlining each parties' responsibilities relating to an energy development zone;

- 17 - HB0514 compared with HB0514S02 (ii) an assessment of existing electrical energy infrastructure within and proximate to the proposed electrical energy development zone;

and (C)- projected17 economic- benefits;H.B.

514 Enrolled Copy (C) projected economic benefits;

- 18 - HB0514 compared with HB0514S02 (i) the proposed electrical energy development zone includes land suitable for electrical energy development based on:

(a) the county auditor shall certify to the council the base taxable value of property within- the18 electrical- energyEnrolled developmentCopy zone;H.B.

514 within the electrical energy development zone;

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

- 19 - HB0514 compared with HB0514S02 (i) determine the amount of the property tax differential for the electrical energy development zone by comparing:

Section 3.

Section 3 is enacted to read:

79-6-1108.

Bond authority -- Energy development zone bonds.

(1) As used in this section:

(a) "Bond" means any evidence or contract of indebtedness that is issued or authorized by a public body, including, without limitation, bonds, refunding bonds, advance refunding bonds, bond anticipation notes, tax anticipation notes, notes, certificates of indebtedness, warrants, commercial paper, contracts, and leases, whether they are general obligations of the issuing public body or are payable solely from a specified source, including annual appropriations by the public body.

(b) "Bond proceeds" means the proceeds from the sale of bonds, including any premium, but excluding accrued interest.

(c) "Project" means electrical energy infrastructure within a designated energy development zone, including transmission lines, distribution facilities, pipeline infrastructure, energy storage facilities, generation facilities, substations, interconnection facilities, and related infrastructure.

(2) The council may issue bonds to finance the cost of a project if:

- 20 - HB0514 compared with HB0514S02 (a) the project is located within an electrical energy development zone designated under Section 79-6-1104;

(b) the council determines the project will:

(i) facilitate electrical energy development within the zone;

(ii) provide a public benefit;

and (iii) align with state energy policy under Section 79-6-301;

and (c) the project will be operated by an entity with sufficient creditworthiness to support the bond issuance based solely on project revenues.

(3) Before issuing bonds under this section, the council shall:

(a) adopt a resolution authorizing the issuance of bonds that specifies:

(i) the purpose for which the bonds are issued;

(ii) the principal amount of the bonds;

(iii) the maximum interest rate or rates;

(iv) the maturity date or dates;

(v) the sources of payment and security for the bonds;

and (vi) any other terms and conditions the council determines necessary or appropriate;

and (b) consult with the State Bonding Commission created in Section 63B-1-201 and the state treasurer.

(4) The council may secure bonds issued under this section only by pledging revenues generated by the project for which the bonds are issued.

(5) Bonds issued under this section:

(a) shall mature not more than 30 years from the date of issuance;

(b) may be sold at public or private sale;

(c) may be issued in one or more series;

and (d) shall contain terms the council determines necessary or appropriate.

(6) Bonds issued under this section are:

(a) not general obligations of the state or any political subdivision;

(b) not a debt or liability of the state or any political subdivision;

and (c) payable solely from the revenues pledged for bond payment.

(7) Each bond shall include a statement that the bond:

(a) is not a general obligation of the state or any political subdivision;

and (b) is payable solely from pledged revenues.

- 21 - HB0514 compared with HB0514S02 (8) Notwithstanding any other provision of law:

(a) a bond holder has no recourse against the state or any political subdivision for payment of the bond;

and (b) the council may not pledge or encumber any state revenue source other than revenues generated by the specific project for which the bonds are issued.

(9) The council may charge an administrative fee for issuing bonds under this section and may use revenue from the administrative fee for:

(a) operational expenses of the council;

or (b) deposit into the Electrical Energy Development Investment Fund created in Section 79-6-1105.

Effective date.

3-4-26 10:00 AM - 2219 -