UtahH.B. 5752026 General SessionHouseWALLET

Fuel Tax and Supply Amendments

Sponsored By: Calvin Roberts (Republican)

Signed by Governor

Economic DevelopmentEnergyEnvironmentDepartment of Environmental QualityNatural ResourcesOil and GasAdministrative Rulemaking and ProceduresMotor Fuel and Special Fuel TaxesState Tax CommissionRevenue and TaxationTransportationFossil FuelsGovernor's Office of Economic OpportunityTransportation FundingNew Rulemaking AuthorityOffice of Energy Development

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Bill Overview

Analyzed Economic Effects

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

Utah local roads get more funding

Utah provides an additional $11.9039 million in one-time General Fund money for the B and C Roads program. The funding goes through the transportation department's pass-through program for fiscal year 2027. That year runs from July 1, 2026, through June 30, 2027. The money supports road programs, not direct household payments.

More storage projects qualify for business credits

Beginning May 6, 2026, Utah expands business tax-credit eligibility to projects that increase refined hydrocarbon storage. Covered projects also include pipelines and related equipment carrying refined hydrocarbons to solution-mined underground salt caverns. Businesses must operate in Utah and sign a qualifying agreement with the Office of Energy Development. General investment minimums are $50 million in first- or second-class counties and $25 million in third- through sixth-class counties. The $25 million threshold also covers municipalities with 10,000 or fewer residents in second-class counties. Certain storage or production facility construction projects have a $10 million minimum. Projects must also meet construction requirements, with infrastructure costs exceeding either 10% of total project costs or $10 million. The supplied text does not state the credit amount.

Alternative fuel drivers get capped tax rates

Beginning January 1, 2026, Utah taxes highway-use compressed natural gas, liquefied natural gas, and hydrogen at 21.2 cents per gallon equivalent. Compressed natural gas and hydrogen use gasoline gallon equivalents; liquefied natural gas uses diesel gallon equivalents. Beginning January 1, 2027, rates rise annually only when the prior fiscal year's actual inflation rate is positive. Rates are rounded to the nearest tenth of a cent and cannot exceed 22.5 cents per gallon equivalent.

Temporary fuel tax rates for Utah drivers

From July 1 through December 31, 2026, Utah taxes covered motor fuel at 31.9 cents per gallon. This replaces the usual calculation of 14.2% of the statewide average rack price, a wholesale fuel price. During those same dates, special fuel, mainly diesel, stays at its January 1, 2026 tax rate. The supplied text does not give that special fuel rate. Fuel taxes can be higher or lower than otherwise scheduled; the law does not set pump prices.

Energy builders get deadlines and permit requirements

Utah environmental divisions review required permits for covered facilities that process, store, or transport petroleum between extraction and end use. They coordinate with the Governor's Office of Economic Opportunity. Applicants must provide project details, legally required safety and environmental assessments, and proof of financial capacity; divisions can charge review fees. Directors must approve or deny complete applications within 120 days. Extraordinary circumstances allow 30 extra days with written reasons; longer extensions require the applicant's agreement. The law preserves the Board of Oil, Gas, and Mining's authority and excludes facilities already under its specified rules. Utah's transportation department must also help finished-product pipeline builders plan and negotiate crossings of state or federal highways.

Refinery reports required but kept confidential

Beginning July 1, 2026, refiners must file quarterly production reports with Utah's Office of Energy Development. Reports cover crude refined, products produced, and finished petroleum products entering and leaving refineries or terminals. Agencies must protect identifying and private business information, keep only what is needed, and destroy unneeded data. Public releases must use combined statistics that prevent identification. Sharing with state agencies or local governments requires written confidentiality agreements; federal sharing requires federal law and written confidentiality assurances. Agencies can use the data for allowed statistics and energy planning, not price regulation or investigations except to enforce reporting. Knowing unlawful disclosure is a class A misdemeanor, and reporting businesses can sue for relief.

Sponsors & Cosponsors

Sponsor

Calvin Roberts
Republican • House

Cosponsors

Brady Brammer
Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 118 • No: 5

Senate vote • 3/4/2026

Senate Comm - Favorable Recommendation

Yes: 6 • No: 0

Senate vote • 3/4/2026

Senate/ passed 2nd & 3rd readings/ suspension

Yes: 24 • No: 1

Senate vote • 3/2/2026

Senate Comm - Motion to Recommend Failed

Yes: 1 • No: 2

House vote • 2/24/2026

House/ passed 3rd reading

Yes: 67 • No: 2

House vote • 2/18/2026

House Comm - Substitute Recommendation

Yes: 10 • No: 0