§ 11-13-301 — Project entity and generation output requirements.

Utah § 11-13-301

• Jurisdiction: Utah
• Title 11: Cities, Counties, and Local Taxing Units
• Ch. 11-13: Interlocal Cooperation Act
• Part 11-13-3: Project Entity Provisions

Text

(1) Each project entity:

(1)(a) shall:
(1)(a)(i) except for construction of facilities providing replacement project capacity, before undertaking the construction of a project and before undertaking the construction of facilities to provide additional project capacity, offer to sell or make available at least 50% of the generation output of or electric energy produced by the project or additional project capacity, respectively;
(1)(a)(ii) establish rules and procedures for an offer under Subsection (1)(a)(i) that provide at least 60 days for a prospective power purchaser to accept the offer before the offer is considered rejected; and
(1)(a)(iii) make each offer under Subsection (1)(a)(i):

(1)(a)(iii)(A) under a long-term arrangement that may be an undivided ownership interest, a participation interest, a power sales agreement, or otherwise; and
(1)(a)(iii)(B) to one or more power purchasers in the state that supply electric energy at wholesale or retail; and
(1)(b) may undertake construction of facilities providing replacement project capacity for its project.
(2) (2)(a) The generation output or electric energy production available to power purchasers in the state from a project shall be at least 5% of the total generation output or electric energy production of the project.
(2)(b) (2)(b)(i) Subject to Subsection (2)(b)(ii)(B), at least a majority of the generation capacity, generation output, or electric energy production facilities providing additional project capacity shall be:

(2)(b)(i)(A) made available as needed to meet the estimated electric requirements of entities or consumers within the state; and
(2)(b)(i)(B) owned, purchased, or consumed by entities or consumers within the state.
(2)(b)(ii) (2)(b)(ii)(A) As used in this Subsection (2)(b)(ii), "default provision" means a provision authorizing a nondefaulting party to succeed to or require the disposition of the rights and interests of a defaulting party.
(2)(b)(ii)(B) The requirements of Subsection (2)(b)(i) do not apply to the extent that those requirements are not met due to the operation of a default provision in an agreement providing for ownership or other interests in facilities providing additional project capacity.

Legislative History

Amended by Chapter 382, 2016 General Session