Senate passes Energy Security Amendments after debate on plant decommissioning and local impact
February 06, 2024 | 2024 Utah Legislature, Utah Legislature, Utah Legislative Branch, Utah
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The Utah Senate on day 22 approved second substitute Senate Bill 161, titled "Energy Security Amendments," after an extended floor debate about energy reliability, local economic impacts and governance of a project entity that operates a generation facility.
Senator Owens, the bill sponsor, described SB 161 as four years in the making. He said the substitute removes certain time constraints, establishes a process for a project entity intending to decommission an electrical generation facility to offer the facility for sale at fair market value and allows an alternative permitting pathway to keep one or more generating units operating during a transition. "If the state desires to maintain this generation capacity, that would be up to the state of Utah," Senator Owens said.
The sponsor also cited an audit and alleged that the project entity had withheld five years of minutes and restricted auditors from speaking privately with employees, and said the changes are intended to preserve Utah jobs, royalties for local schools and energy security. "When we create a monopoly ... we have to put oversight on this," he said.
Several senators pressed on reliability and transmission issues. Senator Bluhlen asked whether the bill addresses the large southbound transmission lines that now send most of the plant’s output out of state; Senator Owens responded that decommissioning the plant would close off options for the future and that transmission could be addressed later. Other senators said building new transmission could take a decade and cautioned about socializing costs for Utah ratepayers.
After debate the Senate voted by roll call: second substitute SB 161 received 17 yay votes, 10 nay votes and 2 absent and was ordered read for a third time.
The bill’s sponsor said the legislation aims to protect the state’s energy and economic interests while opening potential pathways for new owners or technologies to operate existing capacity.
Senator Owens, the bill sponsor, described SB 161 as four years in the making. He said the substitute removes certain time constraints, establishes a process for a project entity intending to decommission an electrical generation facility to offer the facility for sale at fair market value and allows an alternative permitting pathway to keep one or more generating units operating during a transition. "If the state desires to maintain this generation capacity, that would be up to the state of Utah," Senator Owens said.
The sponsor also cited an audit and alleged that the project entity had withheld five years of minutes and restricted auditors from speaking privately with employees, and said the changes are intended to preserve Utah jobs, royalties for local schools and energy security. "When we create a monopoly ... we have to put oversight on this," he said.
Several senators pressed on reliability and transmission issues. Senator Bluhlen asked whether the bill addresses the large southbound transmission lines that now send most of the plant’s output out of state; Senator Owens responded that decommissioning the plant would close off options for the future and that transmission could be addressed later. Other senators said building new transmission could take a decade and cautioned about socializing costs for Utah ratepayers.
After debate the Senate voted by roll call: second substitute SB 161 received 17 yay votes, 10 nay votes and 2 absent and was ordered read for a third time.
The bill’s sponsor said the legislation aims to protect the state’s energy and economic interests while opening potential pathways for new owners or technologies to operate existing capacity.
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