Utah governor signs some coal bills into law

Market: Coal, Electricity
14/03/24

Utah governor Spencer Cox (R) signed two bills into law this week that are aimed at supporting the state's coal industry, and three other measures are awaiting his review after passing the state legislature.

House Bill 191 and House Bill 48 will take effect on 1 May.

The measures are part of a slate of legislation in Utah this year intended to prop up the state's coal industry, including by possibly slowing down coal-fired power plant retirements. More than half of the coal produced in Utah is shipped to power plants in the state, federal government data show. Utilities have plans to close four of the six coal plants in Utah by 2032.

House Bill 191 instructs the Utah Public Service Commission (PSC) to consider a number of factors including reliability, dispatchability and affordability before ruling on utility proposals that include the "early" retirement of electricity plants. The other measure signed into law by Cox puts the Utah Office of Energy Development in charge of developing strategies for engaging with federal entities on state energy interests and overseeing legal strategy "on federal overreach and permitting delays."

The same day Cox signed those bills, the legislature sent him Senate Bill 224, which establishes parameters for some utilities to pass on to ratepayers costs associated with acquiring, operating and maintaining "proven dispatchable resources" in the state. The measure also would allow large-scale electric utilities to establish a separate fund for paying damages from fires.

The legislature also sent House bill 374 and Senate bill 161 to Cox on 12 March. Bill 374 directs Utah's Office of Energy Development to devise a state energy plan prioritizing reliable and dispatchable resources including coal and natural gas, and supports "efficient utilization and development" of both renewable and nonrenewable energy resources. Bill 161 would require the state Office of Development to establish a fair market value for power plants that are intended to be shut down, and gives the state the option of purchasing the plants. The last bill is thought to be aimed at possibly keeping the Intermountain Power Project (IPP) running on coal after operator Intermountain Power Agency completes construction of an 840MW natural gas and hydrogen plant in 2025, though the bill does not mention IPP by name.

Cox has 20 days from the time he receives the bills to review them.

The goals of House bills 374 and 48 "is to ensure Utah is taking prudent, measured approaches to its energy policy; this includes ensuring energy stays affordable and reliable," Utah's Office of Energy Development said. "These bills put the tools in place to ensure our office and industry are unified in our approach to energy development across the state."

PacifiCorp, which operates two coal-fired power plants and three natural gas plants in Utah, did not immediately respond to a request for comment. The utility is expected to issue its 2023 Integrated Resource Plan by April.

By Elena Vasilyeva

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