Utah Code 79-6-407. Decommissioned Asset Disposition Authority
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(1) As used in this section:
Terms Used In Utah Code 79-6-407
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Contract: A legal written agreement that becomes binding when signed.
- Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
- Executive director: means the executive director of the department who is appointed under Section
79-2-202 . See Utah Code 79-1-102 - Fair market value: The price at which an asset would change hands in a transaction between a willing, informed buyer and a willing, informed seller.
- Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
- Office: means the Office of Energy Development created in Section
79-6-401 . See Utah Code 79-6-102 - Process: means a writ or summons issued in the course of a judicial proceeding. See Utah Code 68-3-12.5
- State: when applied to the different parts of the United States, includes a state, district, or territory of the United States. See Utah Code 68-3-12.5
(1)(a) “Asset intended for decommissioning” means an electrical generation facility owned by a project entity that is intended to be removed from active service.
(1)(b) “Authority” means the Decommissioned Asset Disposition Authority created in this section.
(1)(c) “Fair market value” means the value of an electrical generation facility considering both the assets and liabilities of the facility, including the value of water rights necessary to operate the existing electrical generation facility at full capacity.
(1)(d) “Highest and best purchase offer” means the purchase offer for the asset intended for decommissioning that the authority determines to be in the overall best interest of the state, considering:
(1)(d)(i) the purchase price offer amount;
(1)(d)(ii) the potential purchaser’s:
(1)(d)(ii)(A) commitment to utilize the best available control technology;
(1)(d)(ii)(B) intent to use state resources to the maximum extent feasible;
(1)(d)(ii)(C) commitment to provide jobs and other economic benefits to the state;
(1)(d)(ii)(D) intent to promote the interests of state residents and ratepayers; and
(1)(d)(ii)(E) financial capability; and
(1)(d)(iii) any other factors the authority considers relevant.
(1)(e) “Project entity” means the same as that term is defined in Section 11-13-103 .
(2) There is established within the office the Decommissioned Asset Disposition Authority.
(3)
(3)(a) The authority shall be composed of:
(3)(a)(i) the executive director of the office;
(3)(a)(ii) two members appointed by the governor;
(3)(a)(iii) two members appointed by the president of the Senate; and
(3)(a)(iv) two members appointed by the speaker of the House of Representatives.
(3)(b) The office shall provide staff and support to the authority.
(4) The authority shall:
(4)(a) provide recommendations to the governor and Legislature regarding the state exercising an option to purchase an asset intended for decommissioning;
(4)(b) if the state exercises an option to purchase the asset intended for decommissioning under Section 11-13-318 :
(4)(b)(i) enter into contracts and agreements related to the decommissioned asset;
(4)(b)(ii) govern the disposition of assets intended for decommissioning as outlined in Subsection (6); and
(4)(b)(iii) take any other action necessary for governance of a decommissioned asset purchased by the state;
(4)(c) contract with independent professionals that have expertise in emissions modeling, air quality impact assessments, regulatory compliance, and any other discipline necessary for the preparation and submission of a complete alternative air permit application, including:
(4)(c)(i) conducting emissions modeling, air quality impact assessments, and gathering any other information necessary for inclusion in a complete alternative air permit application;
(4)(c)(ii) preparing the full application with all necessary information included, as would be required for an application submitted by the owner of the electrical generation facility; and
(4)(c)(iii) submitting the full permit application to the Division of Air Quality; and
(4)(d) submit a complete alternative air permit application to the division on or before December 31, 2024, unless the authority determines that it is not feasible to submit a complete application on or before that date.
(5) If the authority determines under Subsection (4)(d) that it is not feasible to submit a complete application on or before December 31, 2024, the authority shall:
(5)(a) submit a written report to the Legislative Management Committee on or before December 15, 2024, explaining the reasons for the delay and providing an estimated time line for submitting the complete application; and
(5)(b) submit the complete application to the division as soon as practicable after December 31, 2024.
(6) If the state exercises an option to purchase or otherwise take control of the asset intended for decommissioning under Section 11-13-318 , the authority may, no sooner than July 2, 2025:
(6)(a) hold a public hearing to receive comment and evidence regarding:
(6)(a)(i) the fair market value of the asset, including the valuation study conducted by the authority under Section 79-6-408 ; and
(6)(a)(ii) the proposed disposition of the decommissioned asset;
(6)(b) establish procedures and timelines for potential purchasers to submit binding purchase offers;
(6)(c) evaluate all purchase offers to determine the highest and best purchase offer;
(6)(d) approve the sale of the decommissioned asset to the purchaser that has submitted the highest and best purchase offer; and
(6)(e) take any other action necessary to govern the disposition of the decommissioned asset in accordance with this section.
(7) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the authority shall make rules that establish:
(7)(a) procedures and associated timelines for potential purchasers to submit binding purchase offers for a decommissioned asset;
(7)(b) objective criteria and a process to evaluate all purchase offers submitted for a decommissioned asset and determine which purchase offer is the highest and best offer; and
(7)(c) a process for the authority to approve the sale of a decommissioned asset to the purchaser that has submitted the highest and best purchase offer.