All Roll Calls
Yes: 158 • No: 20
UtahH.B. 5142026 General SessionHouse
Utah Energy Council Amendments
Sponsored By: R. Neil Walter (Republican)
Signed by Governor
Public Funds and AccountsPublic BondsElectricityEnergyPublic Utilities and TechnologyLimited Purpose Local Government EntitiesPolitical Subdivisions (Local Issues)Local Government Infrastructure and UtilitiesEnergy Storage
Personalized for You
How does this bill affect your finances?
Personalize government policy and PRIA will tell you what this bill means for your household, plus every other piece of legislation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.
Bill Overview
Analyzed Economic Effects
10 provisions identified: 4 benefits, 2 costs, 4 mixed.
Energy projects gain revenue-backed bond financing
Beginning May 6, 2026, the district can issue revenue bonds for energy facilities, but not general obligation bonds. The State Finance Review Commission must review and approve bonds before issuance; final terms must stay within approved limits. Repayment uses only pledged district revenues, not general state or local government backing; Utah's constitutional debt limits do not apply. The board must maintain an Energy Infrastructure Enterprise Fund for bond proceeds, operating-contract payments, power purchase payments, and other revenues. Fund money can serve only district purposes and must follow approved bond contracts.
Utah council gains federal financing access
Beginning May 6, 2026, the Utah Energy Council becomes a state energy financing institution eligible to seek federal financing. This includes programs under federal energy loan rules, but does not award money or guarantee project financing. The council grows from five to seven members; its director chairs until the co-chair transition begins July 1, 2026. It leads energy planning, coordinates state lands, designates zones, manages the investment fund, and oversees retired assets and related contracts. By October 31 each year, it must report activities, zones, infrastructure needs, tax-sharing recommendations, investments, and asset and contract status. Reports go to designated legislative interim committees and Legislative Management.
Local energy revenue must support housing
Beginning May 6, 2026, local shares of energy-zone tax revenue must support housing and address local development impacts. Municipalities must use at least 10% of their total distribution for affordable housing programs. Counties must put at least 10% into a registered housing nonprofit serving an association representing 10 or more counties. Remaining local money must address impacts from energy development. These spending rules do not guarantee payments or housing eligibility for individual households.
Energy district assets receive tax exemption
Beginning May 6, 2026, district-owned property and assets are tax-exempt under Utah's special-district law. This lowers the district's property tax bill. The exemption does not give households a property tax reduction. The law states no dollar value for the exemption or resulting changes to local taxes or services.
Energy district cannot serve retail customers
Beginning May 6, 2026, the district cannot sell, distribute, or deliver electricity directly to retail customers. It is not an electric service provider. Neither the district nor its board can provide electric service in another authorized provider's service territory. This preserves territories authorized by the Public Service Commission, a municipality, or state law.
Energy facility operators face privilege taxes
Beginning May 6, 2026, operators using district-owned facilities must pay Utah's state privilege tax. The district can also levy a privilege tax within its service area for operating and maintenance expenses. That district tax rate cannot exceed 0.0023, or 0.23%. The board can agree to payments in place of taxes at its discretion. The law does not state the state tax rate, the district tax base, or any operator's actual bill.
Energy operators gain contracts with payment rules
Beginning May 6, 2026, the district can build, own, maintain, improve, and sell energy facilities within its service area. It can make power purchase agreements, acquire property rights, accept government help, hire staff, and charge service fees. Operator contracts cannot exceed 40 years; payments must cover the facility's debt payments and operating costs. Contracts must preserve district ownership, return control when they end, require legal and industry standards, and include insurance and appropriate financial security. Contract penalties require written terms, and federally tax-exempt bonds can require federal management-contract tax compliance. Projects occupying city or town streets or highways also need consent from the local authorities controlling them.
Energy zones open with local incentive limits
Beginning May 6, 2026, counties, cities, and state land authorities can apply for electrical energy development zones. Applications need boundaries, infrastructure assessments, development plans, local coordination information, and projected economic benefits. Approval requires suitable resources, transmission and transportation access, enough land, state-policy alignment, realistic milestones, and identified infrastructure improvements. State land authorities must also show land-use compliance; the council must decide within 60 days and approve qualifying applications. Counties and cities cannot offer financial incentives for baseload power projects outside designated zones. Exceptions cover municipal power projects, projects using only intermittent resources, and project area plans approved before July 1, 2026.
Utah can create a limited energy district
Beginning May 6, 2026, the Utah Energy Council can create the Utah Energy Infrastructure Service District. Its resolution must describe the service boundaries and facility type; incorporation requires a lieutenant governor's certificate. The service area includes qualifying retired-asset land, but cannot later expand or gain another service area. Those assets must have left active service before May 6, 2026, with no intent to return. The district alone owes its debts; its board can dissolve it only after operations stop and all obligations end. The Legislature can also dissolve it, but bonds must first be settled under their terms; remaining assets go to Utah.
Zone tax growth funds energy investment
Beginning May 6, 2026, energy zones redirect a property tax revenue difference toward the Electrical Energy Development Investment Fund. The difference compares current-year revenue from all taxing entities with revenue calculated using the zone's certified base taxable value. County auditors must certify that base and provide tax rolls within 30 days after designation. County treasurers transfer the difference annually to the council, subject to tax-sharing agreements. Required agreements divide revenue where zones overlap reinvestment areas designated as of May 7, 2025, or inland port projects. The council can also negotiate shares with taxing entities; this mechanism does not directly change a household's property tax liability.
Sponsors & Cosponsors
Sponsor
R. Neil Walter
Republican • House
Cosponsors
Ann Millner
Republican • Senate
Roll Call Votes
House vote • 3/6/2026
House/ concurs with Senate amendment
Yes: 53 • No: 14
Senate vote • 3/5/2026
Senate/ passed 2nd & 3rd readings/ suspension
Yes: 22 • No: 5
Senate vote • 3/5/2026
Senate/ substituted
Yes: 0 • No: 0
Senate vote • 3/2/2026
Senate Comm - Favorable Recommendation
Yes: 5 • No: 0
House vote • 2/26/2026
House/ uncircled
Yes: 0 • No: 0
House vote • 2/26/2026
House/ floor amendment
Yes: 0 • No: 0
House vote • 2/26/2026
House/ substituted
Yes: 0 • No: 0
House vote • 2/26/2026
House/ passed 3rd reading
Yes: 68 • No: 1
House vote • 2/25/2026
House/ circled
Yes: 0 • No: 0
House vote • 2/19/2026
House Comm - Favorable Recommendation
Yes: 10 • No: 0
Actions Timeline
Governor Signed
3/26/2026House/ to Governor
3/17/2026HouseHouse/ received enrolled bill from Printing
3/17/2026HouseHouse/ enrolled bill to Printing
3/12/2026HouseEnrolled Bill Returned to House or Senate
3/12/2026Draft of Enrolled Bill Prepared
3/7/2026Bill Received from House for Enrolling
3/7/2026House/ signed by Speaker/ sent for enrolling
3/6/2026HouseHouse/ received from Senate
3/6/2026HouseSenate/ to House
3/6/2026SenateSenate/ signed by President/ returned to House
3/6/2026SenateSenate/ received from House
3/6/2026SenateHouse/ to Senate
3/6/2026HouseHouse/ concurs with Senate amendment
3/6/2026HouseHouse/ placed on Concurrence Calendar
3/5/2026HouseHouse/ received from Senate
3/5/2026HouseSenate/ to House with amendments
3/5/2026SenateSenate/ passed 2nd & 3rd readings/ suspension
3/5/2026SenateSenate/ substituted
3/5/2026SenateSenate/ 2nd & 3rd readings/ suspension
3/5/2026SenateSenate/ Rules to 2nd Reading Calendar
3/5/2026SenateSenate/ 2nd Reading Calendar to Rules
3/4/2026SenateSenate/ placed on 2nd Reading Calendar
3/2/2026SenateSenate/ committee report favorable
3/2/2026SenateSenate Comm - Favorable Recommendation
3/2/2026
Bill Text
Enrolled
3/12/2026
Substitute #2
3/4/2026
Amended 2/27/2026 09:02:805
2/27/2026
Substitute #1
2/25/2026
Introduced
2/9/2026