HB 514: Utah Energy Council Amendments - Utah

Substitute #1 → Substitute #2 · 4 edits

MODERATE

This version of the bill introduces a new State Finance Review Commission requirement to approve all district revenue bonds before they are issued, renaming the funding vehicle from 'Revenue Fund' to 'Enterprise Fund,' and adds specific definitions for 'retired project entity assets.' These changes aim to strengthen financial oversight and clarify the legal status of decommissioned energy assets.

Scope change

The bill's scope now explicitly requires external financial review by the State Finance Review Commission for all district bond issuances, adding a layer of state-level fiscal oversight to the district's financing activities.

REQUIREMENT

Added a mandatory requirement that the State Finance Review Commission must review and approve all district revenue bonds before they can be issued.

DEFINITION

Renamed the 'Energy Infrastructure Revenue Fund' to 'Energy Infrastructure Enterprise Fund' and added new definitions for 'Enterprise fund,' 'Retired project entity asset,' and 'Retired project entity asset area.'

Added a new definition for 'Commission' referring to the State Finance Review Commission.

Removed the previous definition for 'Revenue fund' which is now obsolete due to the name change.

Amended 2/27/2026 09:02:805 → Substitute #1 · 7 edits

MODERATE

This bill introduces a new Utah Energy Infrastructure Service District to own and operate energy facilities, while simultaneously expanding the Utah Energy Council from five to seven members and establishing a new co-chair leadership structure. The changes matter because they create a new legal entity capable of issuing debt-free revenue bonds to fund infrastructure projects and allow the council to include private sector experts in its decision-making process.

Scope change

The bill's scope expands significantly by creating a new political subdivision (the District) with powers to own, operate, and finance energy infrastructure, in addition to modifying the existing Utah Energy Council's composition and duties.

SCOPE

Created a new Utah Energy Infrastructure Service District as a political subdivision of the state, distinct from but overseen by the Utah Energy Council.

FISCAL

Authorized the new District to issue revenue bonds that are not subject to the state's constitutional debt limitations, payable only from district revenues.

DEFINITION

Defined new terms including 'Energy infrastructure facility' and 'Operating contract' to govern the relationship between the District and private operators.

REQUIREMENT

Expanded the Utah Energy Council membership from five to seven members, adding two new seats for individuals with expertise in economic development, public utilities, and finance.

Established a co-chair leadership structure for the Council, with the Director serving as one co-chair and the Senate President and House Speaker jointly designating the other.

Created the Energy Infrastructure Revenue Fund to hold proceeds from bonds and payments received from operators.

ENFORCEMENT

Granted the District authority to enter into operating contracts with private entities to manage and maintain district-owned facilities.

Amended Excerpts 2/27/2026 09:02:805 → Amended 2/27/2026 09:02:805 · 3 edits

MINOR

The bill was reorganized to establish a new Utah Energy Infrastructure Service District and expand the Utah Energy Council from five to seven members. It clarifies that the new district cannot sell electricity directly to customers and must operate within areas not already served by existing utility providers. The text also adds a conflict resolution clause to determine which laws take precedence if the new district's rules clash with state municipal or public utility codes.

Scope change

The bill's scope expanded to create a new political subdivision (the Service District) and modify the membership and leadership structure of the existing Utah Energy Council.

DEFINITION

Added a new conflict resolution rule stating that if the new district's provisions conflict with Title 10 (Municipal Code) or Title 54 (Public Utilities), those other titles will govern.

REQUIREMENT

Added a specific prohibition preventing the new district from selling electricity directly to retail customers or operating in areas already served by authorized utilities.

SCOPE

Reorganized the bill structure to formally define the new Service District and its relationship to the Utah Energy Council.

Enrolled → Amended Excerpts 2/27/2026 09:02:805 · 3 edits

MINOR

This amendment clarifies the legal authority of the new Utah Energy Infrastructure Service District by explicitly stating which laws govern it when conflicts arise, and it strictly prohibits the district from acting as an electric utility or selling power directly to retail customers. These changes ensure the district operates as a financing and infrastructure owner rather than a traditional utility provider, preventing regulatory conflicts and maintaining the distinction between the district and existing public utility companies.

Scope change

The bill's scope was clarified to explicitly define its relationship with other state laws (Municipal Code and Public Utilities) and to strictly limit the district's operational role to infrastructure ownership and financing, excluding direct retail electricity sales.

REQUIREMENT

Added a specific conflict-of-law clause to clarify that the district's rules override general special district provisions and that the district's rules override Municipal Code and Public Utilities laws when they conflict.

ELIGIBILITY

Added explicit prohibitions preventing the district from selling, distributing, or delivering electricity to retail customers or operating within the service territories of existing certified electric providers.

TECHNICAL

Corrected formatting and line breaks in the text of the conflict-of-law and non-utility provider sections to ensure legal clarity.

Introduced → Enrolled · 7 edits · Mar 26, 2026

MODERATE

The bill was significantly expanded to create a new 'Utah Energy Infrastructure Service District' as a political subdivision, replacing the previous focus solely on the Utah Energy Council. This change establishes a new legal entity capable of owning, operating, and financing energy infrastructure projects through revenue bonds, while also creating a new Enterprise Fund and defining specific terms for operators and service areas.

Scope change

The bill's scope expanded from modifying the Utah Energy Council to creating an entirely new Utah Energy Infrastructure Service District and adding new code sections (17B-2a-1401 through 17B-2a-1411) to govern this new district.

SCOPE

Created a new 'Utah Energy Infrastructure Service District' as a political subdivision of the state, which did not exist in the original version.

Created the 'Energy Infrastructure Enterprise Fund' to manage financial transactions related to the district's operations.

FISCAL

Authorized the new district to issue revenue bonds payable solely from district revenues, exempting them from state constitutional debt limitations.

DEFINITION

Added new definitions for 'Energy infrastructure facility', 'Operating contract', 'Operator', 'Power purchase agreement', 'Retired project entity asset', and 'Service area'.

REQUIREMENT

Established a requirement for the State Finance Review Commission to review and approve all district revenue bonds before they are issued.

ENFORCEMENT

Provided mechanisms for the district to enter into operating contracts with private entities and exempted district property from taxation.

ELIGIBILITY

Updated the highlighted provisions to reflect that council members now serve concurrently as the board of trustees for the new district.

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