SB 254: Extracted Natural Resources Amendments - Utah

Substitute #3 → Substitute #4 · 9 edits

MAJOR

This bill version significantly increases funding for the Critical Minerals Council and adjusts severance tax credit limits to encourage exploration. It also adds a new funding source to the State Reinvestment Restricted Account and clarifies the definition of 'permit' to include various administrative authorizations.

Scope change

The bill now includes a new funding stream from the State Reinvestment Restricted Account to support the Critical Minerals Council, expanding the financial resources available for critical minerals initiatives.

FISCAL

Increased the one-time appropriation for the Critical Minerals Council from $10,000,000 to $11,000,000 and added a new $400,000 operating budget item.

Adjusted the FY 2026 restricted fund transfer from $14,016,200 to $14,016,200 (no change in total, but source description was updated to clarify the transfer mechanism).

Increased the total FY 2027 operating and capital budget appropriation from $11,000,000 to $11,400,000, with $400,000 coming from the General Fund.

Added a new revenue stream to the State Reinvestment Restricted Account derived from taxes on non-critical minerals (metalliferous minerals not covered by the new critical minerals tax).

Reduced the maximum aggregate value for tax credit certificates from $20,000,000 to $10,000,000, while increasing the exception limit for net-import-reliant minerals from $30,000,000 to $15,000,000.

Added a new provision to transfer revenue collected from non-critical minerals (taxes under Section 59-5-202) to the State Reinvestment Restricted Account.

DEFINITION

Expanded the definition of 'permit' in the Critical Minerals Strategic Act to include plans, licenses, approval orders, and other administrative authorizations, not just traditional permits.

REQUIREMENT

Removed the requirement for a person to enter an agreement with the Division of Oil, Gas, and Mining before beginning eligible exploration activities, replacing it with a rule-based process for those with certified expenditures between 2025 and 2026.

TIMELINE

Extended the maximum duration a person may receive a tax credit certificate from five years to 20 years.

Substitute #2 → Substitute #3 · 5 edits

MODERATE

The bill was amended to expand its scope from solely critical minerals to include all natural resources, adding new provisions for mining tax credits and a new State Reinvestment Restricted Account. The total appropriated funding increased from $11 million to $22 million, with $11 million for the Critical Minerals Council and $11 million for new restricted fund transfers. The effective date was changed from May 6, 2026, to July 1, 2026, and the bill now includes retrospective operation for certain tax provisions.

Scope change

The bill's scope was broadened from focusing exclusively on critical minerals to addressing natural resources in general, while retaining all original critical minerals provisions.

SCOPE

The bill title and description were changed to address 'natural resources' rather than just 'critical minerals,' and new provisions for mining exploration tax credits were added.

FISCAL

New appropriations of $11,000,000 were added for restricted fund transfers to a State Reinvestment Restricted Account, increasing the total funding from $11 million to $22 million.

The total money appropriated in the bill was updated to reflect the new $11 million restricted fund transfer in addition to the existing $11 million operating budget.

TIMELINE

The effective date was moved from May 6, 2026, to July 1, 2026, and the bill now includes retrospective operation for tax provisions.

REQUIREMENT

New requirements were added to modify tax credits for mining exploration and establish a State Reinvestment Restricted Account to divert severance tax income.

Substitute #1 → Substitute #2 · 4 edits

MODERATE

The bill text was updated from a previous version (Substitute #1) to a new version (Substitute #2), primarily to reflect the House sponsor's name change and incorporate formatting adjustments. The substantive policy content, including the creation of the Critical Minerals Council, the establishment of critical minerals zones, and the allocation of funding, remains identical between the two versions.

Scope change

The scope and applicability of the bill's policies have not changed; only the bill's metadata and formatting were updated.

TECHNICAL

The House Sponsor's name was updated from 'David Shallenberger' to 'David Shallenberger' (no change in name, but the line was reformatted to match the new substitute style).

The 'Highlighted Provisions' section was reformatted to use bullet points (▸) and adjusted line breaks for readability.

The 'Utah Code Sections Affected' list was reformatted to remove the 'Partially Repealed' status indicators for some sections that were present in the previous version.

The 'Be it enacted' section and subsequent text were re-indented and renumbered to align with the new substitute bill format.

Amended 3/5/2026 16:03:696 → Substitute #1 · 4 edits

MODERATE

This bill replaces the original version with a streamlined substitute that refines the fiscal details and clarifies the bill's focus on critical minerals. The primary substantive change involves adjusting the appropriation timeline and amounts, shifting a $10 million transfer from fiscal year 2026 to fiscal year 2027, while removing a previously listed repeal of a severance tax section.

Scope change

The bill's scope remains focused on establishing a Critical Minerals Council, creating tax incentives for exploration, and defining critical minerals zones, but the specific fiscal year for certain fund transfers has been updated.

FISCAL

The appropriation for restricted fund transfers was reduced from $14,016,200 in fiscal year 2026 to $10,000,000 in fiscal year 2027, while the operating budget for the Critical Minerals Council remains at $11,000,000 for fiscal year 2027.

The specific repeal of Section 51-9-301, which governed the deposit of tobacco settlement funds, was removed from the list of repealed sections.

TECHNICAL

The 'Money Appropriated in this Bill' section was updated to reflect the new fiscal year allocations and removed references to fiscal year 2026 transfers.

Minor formatting and text cleanup was performed on the highlighted provisions and long title to ensure consistency in the bill text.

Amended Excerpts 3/5/2026 16:03:696 → Amended 3/5/2026 16:03:696 · 5 edits

MODERATE

The bill was reformatted from a House amendment document into a complete legislative substitute bill, introducing a comprehensive framework for critical minerals in Utah. Key substantive changes include establishing a Critical Minerals Council, creating new funding accounts for reinvestment, and setting up a data clearinghouse known as the Critical Minerals Atlas. The legislation also modifies tax credit rules for mining exploration and adjusts reporting requirements for mineral severance taxes.

Scope change

The bill's scope expanded significantly to include the creation of new state entities (Critical Minerals Council and Minerals for Industrial, National, and Economic Security Center), new funding mechanisms, and a formalized policy framework for critical minerals that was not present in the previous amendment excerpts.

SCOPE

Established the Critical Minerals Council with defined operations, powers, and duties to oversee critical minerals policy.

FISCAL

Created the State Reinvestment Restricted Account and the Critical Minerals Development Account to divert severance tax revenues.

REQUIREMENT

Mandated the creation of the Critical Minerals Atlas as a data clearinghouse and required additional reporting on mineral severance taxes.

ELIGIBILITY

Modified the tax credit for mining exploration and adjusted the criteria for determining minerals that are greater than 50% net import reliant.

TIMELINE

Set specific effective dates for various sections, with some provisions applying retroactively to January 1, 2026.

Enrolled → Amended Excerpts 3/5/2026 16:03:696 · 4 edits

MODERATE

This amendment clarifies reporting requirements for mining severance taxes and adjusts the timeline for transferring excess revenue to the State Reinvestment Restricted Account. It also updates the definition of 'net import reliant' minerals to reference a specific future date (December 15) rather than the current calendar year, ensuring the state can accurately assess import reliance before determining tax credits or revenue transfers.

Scope change

The bill's scope regarding revenue transfer timing and the criteria for identifying critical minerals has been expanded to include future-dated assessments and specific reporting deadlines.

TIMELINE

The deadline for transferring excess severance tax revenue to the State Reinvestment Restricted Account was changed from an immediate action to a specific date of December 31 of each subsequent year.

DEFINITION

The definition of 'net import reliant' minerals was updated to reference Mineral Commodity Summaries published by December 15 of the year preceding the tax collection, rather than the current calendar year.

REQUIREMENT

New requirements were added for the Division of Oil, Gas, and Mining to publish and submit electronic lists of minerals meeting the net import reliance criteria to the State Tax Commission and Division of Finance.

TECHNICAL

Minor formatting and line number adjustments were made to align the text with the legislative document structure.

Introduced → Enrolled · 7 edits · Mar 26, 2026

MODERATE

The bill was updated from a focused critical minerals initiative to a broader natural resources package that includes new funding appropriations and a tax credit modification. The scope expanded to explicitly coordinate with higher education innovation grants and divert specific severance tax streams into a new State Reinvestment Restricted Account. Key changes include the addition of $400,000 in operating budgets and $14+ million in restricted fund transfers for 2026, the repeal of three tax sections to modify mining exploration credits, and the inclusion of a retrospective effective date.

Scope change

The bill's scope broadened from solely addressing critical minerals to encompassing general natural resources, including a specific coordination clause linking critical minerals projects to higher education research grants.

FISCAL

Added specific appropriations of $400,000 in operating budgets and $14,016,200 in restricted fund transfers for fiscal year 2026.

Added specific appropriations of $11,400,000 in operating and capital budgets for fiscal year 2027.

DEFINITION

Added a highlighted provision to coordinate with H.B. 373 to include critical minerals projects in eligible research areas for state grants.

ELIGIBILITY

Modified the tax credit for mining exploration by repealing and reenacting sections 51-9-301, 51-9-303, and 51-9-307.

REQUIREMENT

Added a requirement to divert various streams of income related to severance taxes into the newly created State Reinvestment Restricted Account.

TIMELINE

Added a special effective date provision and a clause allowing for retrospective operation.

TECHNICAL

Updated the Long Title General Description to reflect natural resources broadly rather than just critical minerals.

Extracted Natural Resources Amendments

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