UtahUtah energy council may form district to own and finance facilities
The signed measure lets the Utah Energy Council form a district that can finance and manage energy facilities, subject to local approvals and bond review.
What it does
The council may form one energy infrastructure district to own, operate, and finance facilities within a designated area, but it may not serve retail electricity customers.
Seven council members would also govern the district, with the director and a legislatively designated member sharing council and board leadership beginning July 1, 2026.
Local governments and state land authorities may seek energy development zones, while some baseload projects must be inside a zone to receive local financial incentives.
Argument forA district could give Utah a single way to finance and manage energy facilities, including through revenue bonds and private operating contracts.
Argument againstThe district could commit future facility revenues to long-term bonds and operating contracts, while its facilities remain limited to one service area.
More detail
The Utah Energy Council may form an energy infrastructure service district, which may own, operate, and finance energy facilities. The district may work only within one designated service area and may handle facilities used to generate, transmit, store, or deliver energy. The council must adopt a resolution describing the district, its boundaries, and the proposed facility type. The district exists only after the lieutenant governor issues a certificate of incorporation. Before building or operating a facility in a city or town, the district must obtain required local consent for use of streets or highways. The district may not sell or deliver electricity directly to retail customers or provide service in another provider's certificated territory. The bill takes effect May 6, 2026. The district begins to exist when the lieutenant governor issues its certificate of incorporation.
The council has seven members, uses two co-chairs, and also serves as the district's board of trustees. The council includes the director or designee, governor appointees, legislative leaders' appointees, and two members selected by the other council members with specified energy, finance, utility, or legal experience. The director or designee is one co-chair. The Senate president and House speaker jointly designate the other co-chair from eligible council members. Council members serve on the district board because of their council appointments, without a separate appointment or additional compensation. The director or designee serves as the sole chair until July 1, 2026. Beginning July 1, 2026, the council uses the two-co-chair structure.
Counties, cities, and state land authorities may apply to the council for energy development zones, and the council must decide complete applications within 60 days. The rules cover proposed zones for electrical energy development and the property-tax increase above the area's pre-zone taxable value. Applications must include boundaries, infrastructure information, a development plan, and evidence of local support or land-use consistency. The council must approve an application only when the land and development plan meet stated energy, infrastructure, timing, and economic criteria. Counties and cities generally may not offer financial incentives for baseload energy projects outside a designated zone, with exceptions for municipal projects, intermittent-resource projects, and certain plans approved before July 1, 2026. At least 10% of specified county or city distributions must support affordable housing. The council must decide an application within 60 days after submission. County auditors and treasurers handle the property-tax differential each year after a zone is designated.
Where do you stand?
Choose your position
Tell your reps
Take a position to see your representatives and ways to contact them.
Where it stands
- Introduced
- Passed House
- Passed Senate
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Mar 26Governor Spencer Cox SignedBecame Law
- Mar 17House/ to GovernorTo Governor
- Mar 17House/ received enrolled bill from PrintingMinor
- Mar 12House/ enrolled bill to Printing
- Mar 12Enrolled Bill Returned to House or SenateMinor
- Mar 7Draft of Enrolled Bill Prepared
- Mar 7Bill Received from House for EnrollingMinor
- Mar 6House/ signed by Speaker/ sent for enrollingMajor
- Vote recorded House/ concurs with Senate amendment. Result: pass.Lower
- Vote recorded Senate/ passed 2nd & 3rd readings/ suspension. Result: pass.Upper
- Mar 6House/ received from SenateMinor
- Mar 6Senate/ to House
- Mar 6Senate/ signed by President/ returned to HouseMajor
- Mar 6Senate/ received from HouseMinor
- Mar 6House/ to Senate
- Mar 6House/ concurs with Senate amendmentMajor
- Mar 6House/ placed on Concurrence Calendar
- Mar 6House/ received from SenateMinor
- Mar 6Senate/ to House with amendments
- Mar 6Senate/ passed 2nd & 3rd readings/ suspensionPassed Senate
- Mar 6Senate/ substituted
- Mar 6Senate/ 2nd & 3rd readings/ suspensionMinor
- Mar 5Senate/ Rules to 2nd Reading Calendar
- Mar 5LFA/ fiscal note publicly available for HB0514S02
- Mar 5LFA/ fiscal note sent to sponsor for HB0514S02
- Mar 5Senate/ 2nd Reading Calendar to Rules [Senate Rules Committee]Minor
- Mar 4LFA/ bill sent to agencies for fiscal input for HB0514S02
- Mar 4LFA/ bill assigned to staff for fiscal analysis for HB0514S02
- Mar 2LFA/ fiscal note publicly available for HB0514S01
- Mar 2LFA/ fiscal note sent to sponsor for HB0514S01
- Mar 2Senate/ placed on 2nd Reading Calendar
- Mar 2Senate/ committee report favorable [Senate Revenue and Taxation Committee]Minor
- Mar 2Senate Comm - Favorable Recommendation [Senate Revenue and Taxation Committee]Minor
- Feb 27Senate/ to standing committee [Senate Revenue and Taxation Committee]Minor
- Vote recorded House/ passed 3rd reading. Result: pass.Lower
- Feb 27Senate/ 1st reading (Introduced)Minor
- Feb 27Senate/ received from HouseMinor
- Feb 27House/ to Senate
- Feb 27House/ passed 3rd readingPassed House
- Feb 27House/ floor amendment
- Feb 27House/ substituted
- Feb 27House/ uncircled
- Feb 25LFA/ bill sent to agencies for fiscal input for HB0514S01
- Feb 25LFA/ bill assigned to staff for fiscal analysis for HB0514S01
- Feb 25House/ circled
- Feb 25House/ 3rd readingMinor
- Feb 24House/ received fiscal note from Fiscal AnalystMinor
- Feb 20House/ 2nd readingMinor
- Feb 20House/ committee report favorable [House Public Utilities and Energy Committee]Minor
- Feb 20House Comm - Favorable Recommendation [House Public Utilities and Energy Committee]Minor
- Feb 18House/ to standing committee [House Public Utilities and Energy Committee]Minor
- Feb 13LFA/ fiscal note publicly available for HB0514
- Feb 12LFA/ fiscal note sent to sponsor for HB0514
- Feb 9House/ 1st reading (Introduced)Minor
- Feb 9House/ received bill from Legislative ResearchMinor
- Feb 9LFA/ bill sent to agencies for fiscal input for HB0514
- Feb 9LFA/ bill assigned to staff for fiscal analysis for HB0514
- Feb 9Numbered Bill Publicly Distributed
- Feb 9Bill Numbered but not DistributedIntroduced
Environment & EnergyGovernment & EthicsTaxes & Budget