Editors Note: This article was originally published in the Jan. 31, 2024 issue of the Chronicle Progress. Some information may be outdated.
With the 2024 Utah legislative session underway, one area of local concern is how the legislature will be treating the county’s largest taxpayer—Intermountain Power—this year.
So far three pieces of legislation have been introduced that could impact the future of both Intermountain Power Agency and its future gas and green hydrogen project, IPP Renewed, which is now under construction.
The following is a brief summary of the legislation introduced so far this session that could directly impact Intermountain Power. Included in the description is the name of the bill’ssponsor or sponsors and where in the legislative process the bill currently resides.
SB161 Energy Security
Amendments
Sponsored by Sen. Derrin Owens, District 27 Republican
This piece of legislation is part of an effort to potentially extend the life of the Intermountain Power Plant’s existing coal units, slated to be decommissioned about the time IPP Renewed goes online sometime in 2025.
Key provisions of this bill include:
—Requires a project entity (IPP) to provide notice to the Public Service Commission before any electrical generation facility can be decommissioned
—Outlines a process for determining the fair market value of an electrical generation facility before decommissioning
—Requires a project entity to offer for sale an electrical generation facility for sale at fair market value before decommissioning
—Allows the state the option to purchase an electrical generation facility intended for decommissioning if no buyer purchases it at fair market value
—Amends provisions related to air quality permitting and allows a project entity to apply for an alternative permit to keep one or more existing generating units in operation even if a transition permit requires the closure of all units
The legislation has not yet been officially introduced by the Senate but was received, numbered and publicly distributed on Monday, Jan. 29. No hearings or floor debate have yet been scheduled.
If signed into law, the bill would become effective May 1.
SB120 IPA
Modifications
Sponsored by Sen. Scott Sandall, District 1 Republican
This bill would change the governing board having oversight responsibilities over Intermountain Power.
Key provisions of this bill include:
—Establishing a seven-member governing board for a project entity (IPP) as well as establishing its duties
—Provides for the appointment of governing board members—two members of the House, two from the Senate, two members voted into office by a collective vote of the municipal members that utilize electricity from IPP, and one member appointed by the governor
—Repeals the Project Entity Oversight Committee and ends a project entity’s ability to receive impact alleviation credits
This bill was introduced in the Senate on Jan. 19, where it received a first reading. No hearings or floor debate have been scheduled to date.
If signed into law, the legislation would take effect on May 1.
SB114 Project Entity
Amendments
Sponsored by Sen. Scott Sandall, District 1 Republican
This bill seems to target IPA’s ability to issue municipal bonds, which the financing mechanism currently being used to fund construction of IPP Renewed.
Key provisions of this bill include:
—Provides that a project entity may only issue municipal bonds with a maturity date prior to Dec. 31, 2045.
This bill was introduced on first reading in the Senate on Jan. 19. No hearings or floor debate have yet been scheduled.
If signed into law, the legislation becomes effective May 1.
Previous to the 2024 legislative session, multiple pieces of legislation impacting IPP and IPA became law.
These include SB2002, which stripped IPA of certain benefits previously conferred on to it by the state legislature. This bill passed during the second special session in 2021. It provided for legislative audits of IPA, stripped it of eminent domain powers, eliminated its segmentation privileges and ended a special perk whereby the project entity was exempted from certain state laws, including open meeting rules, that didn’t specifically apply to it by name.
During the 2022 session, legislators passed SB92 and HB215. SB92 forced IPA to comply with the state’s procurement code and later was amended to force the entity to comply with state open records and meetings laws.
HB215 subjected IPA to Public Service Commission oversight.
In 2023, HB425 passed by an overwhelming majority. It effectively set the stage for the current SB161 by authorizing a deep dive study by the state into keeping IPP’s existing coal units operating past the deadline for them to close.
