UtahH.B. 1852026 General SessionHouse

Carbon Credit Amendments

Sponsored By: Troy Shelley (Republican)

Signed by Governor

EnergyAir QualityEmissions ControlEnvironmentNatural ResourcesAttorney GeneralState Auditor

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 1 benefits, 0 costs, 2 mixed.

Utah creates carbon credit lawsuit fund

Beginning May 6, 2026, Utah creates the Carbon Credit Litigation Fund. It receives covered lawsuit judgments and settlements after reimbursing the Attorney General's related litigation costs. Legislative funding and earnings from State Treasurer investments also go into the fund; the law provides no new appropriation. The Attorney General or a designee authorizes spending, including recovering credits or profits from fraudulent sales. Money can also prevent or defend against federal climate requirements or claims, including emissions reporting, cap-and-trade, and climate-remediation programs. General office costs are barred unless directly tied to an authorized purpose. Fund activity reports are due to the natural-resources appropriations subcommittee by November 30 each year.

State agencies keep credits, report sales

Beginning May 6, 2026, Utah state entities keep control of carbon credits they create or buy. This replaces proportional state ownership based on state funding and state-treasurer management. Before selling or exchanging credits, entities must get a digital ID from a governmental or accredited verification or registration body. They must report the ID, offset description and source, and negotiated transaction terms to the State Auditor in an approved format. The auditor maintains a transaction list and reports revenue and transaction summaries to the natural-resources appropriations subcommittee before November 30 annually.

Utah defines which carbon credits count

Beginning May 6, 2026, carbon credits include payments, payment offers, and other financial benefits for carbon-emission offsets. They include natural asset credits for preserving natural and biological processes on land or company activities covered by Section 63L-13-203. Carbon credits exclude payments for regulated-pollutant rights and industrial or commercial uses of liquefied carbon dioxide. Natural asset credits exclude commercial extraction, production, or sale of natural or agricultural resources, and water-use or appropriation rights. These definitions set which transactions Utah's carbon-credit rules cover.

Sponsors & Cosponsors

Sponsor

  • Troy Shelley

    Republican • House

Cosponsors

  • Derrin R. Owens

    Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 128 • No: 9

Senate vote • 3/4/2026

Senate Comm - Favorable Recommendation

Yes: 4 • No: 0

Senate vote • 3/4/2026

Senate/ passed 2nd & 3rd readings/ suspension

Yes: 19 • No: 6

House vote • 3/2/2026

House/ passed 3rd reading

Yes: 70 • No: 0

House vote • 3/2/2026

House/ substituted

Yes: 0 • No: 0

House vote • 2/27/2026

House Comm - Substitute Recommendation

Yes: 11 • No: 0

House vote • 2/27/2026

House Comm - Favorable Recommendation

Yes: 8 • No: 3

House vote • 2/12/2026

House Comm - Held

Yes: 9 • No: 0

House vote • 2/12/2026

House Comm - Amendment Recommendation

Yes: 7 • No: 0

Actions Timeline

  1. Governor Signed

    3/25/2026
  2. House/ to Governor

    3/12/2026House
  3. House/ received enrolled bill from Printing

    3/12/2026House
  4. House/ enrolled bill to Printing

    3/11/2026House
  5. Enrolled Bill Returned to House or Senate

    3/11/2026
  6. Draft of Enrolled Bill Prepared

    3/6/2026
  7. Bill Received from House for Enrolling

    3/6/2026
  8. House/ signed by Speaker/ sent for enrolling

    3/5/2026House
  9. House/ received from Senate

    3/5/2026House
  10. Senate/ to House

    3/4/2026Senate
  11. Senate/ signed by President/ returned to House

    3/4/2026Senate
  12. Senate/ passed 2nd & 3rd readings/ suspension

    3/4/2026Senate
  13. Senate/ 2nd & 3rd readings/ suspension

    3/4/2026Senate
  14. Senate/ Rules to 2nd Reading Calendar

    3/4/2026Senate
  15. Senate/ 2nd Reading Calendar to Rules

    3/4/2026Senate
  16. Senate/ placed on 2nd Reading Calendar

    3/4/2026Senate
  17. Senate/ committee report favorable

    3/4/2026Senate
  18. Senate Comm - Favorable Recommendation

    3/4/2026
  19. Senate/ to standing committee

    3/3/2026Senate
  20. Senate/ 1st reading (Introduced)

    3/3/2026Senate
  21. Senate/ received from House

    3/2/2026Senate
  22. House/ to Senate

    3/2/2026House
  23. House/ passed 3rd reading

    3/2/2026House
  24. House/ substituted

    3/2/2026House
  25. House/ 3rd reading

    3/2/2026House

Bill Text

  • Enrolled

    3/11/2026

  • Substitute #4

    3/2/2026

  • Substitute #3

    2/26/2026

  • Substitute #2

    2/9/2026

  • Substitute #1

    1/27/2026

  • Introduced

    1/7/2026

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