§ 79-6-1104 — Electrical energy development zones -- Property tax differential.

(1) As used in this section:
(1)(a) "Base taxable value" means the value of property within an electrical energy development zone, as shown on the assessment roll last equalized before the creation of the electrical energy development zone.
(1)(b) "Community reinvestment agency" means the same as that term is defined in Section 17C-1-102.
(1)(c) "Community reinvestment project area" means the same as that term is defined in Section 17C-1-102.
(1)(d) "Municipal power project" means an electrical energy project that:
(1)(d)(i) is operated by or on behalf of a municipality; and
(1)(d)(ii) exclusively serves customers within that municipality's jurisdictional boundaries.
(1)(e) "Property tax differential" means the difference between:
(1)(e)(i) the amount of property tax revenues generated each tax year by all taxing entities from an electrical energy development zone, using the current assessed value of the property; and
(1)(e)(ii) the amount of property tax revenues that would be generated from that same area using the base taxable value of the property.
(1)(f) "State land use authority" means:
(1)(f)(i) the Utah Inland Port Authority created in Section 11-58-201;
(1)(f)(ii) the Military Installation Development Authority created in Section 63H-1-201;
(1)(f)(iii) the School and Institutional Trust Lands Administration created in Section 53C-1-201; or
(1)(f)(iv) any other land use authority created by the state that has jurisdiction over state lands.
(2) (2)(a) Except as provided in Subsection (2)(b), a county or municipality may not offer financial incentives for a baseload electrical energy project that is not located within a designated electrical energy development zone.
(2)(b) Subsection (2)(a) does not apply to:
(2)(b)(i) financial incentives offered for:
(2)(b)(i)(A) a municipal power project; or
(2)(b)(i)(B) an electrical energy project that exclusively utilizes intermittent resources; or
(2)(b)(ii) an electrical energy project for which a project area plan has been approved before July 1, 2026.
(3) A county or municipality may:
(3)(a) pass a resolution declaring an intent to establish within the county or municipality boundaries an energy development zone;
(3)(b) enter into an interlocal agreement with the council outlining each parties' responsibilities relating to an energy development zone; and
(3)(c) apply to the council for the designation of an electrical energy development zone by submitting:
(3)(c)(i) a description of the proposed boundaries of the electrical energy development zone;
(3)(c)(ii) an assessment of existing electrical energy infrastructure within and proximate to the proposed electrical energy development zone;
(3)(c)(iii) a development plan that includes:
(3)(c)(iii)(A) proposed electrical energy development projects;
(3)(c)(iii)(B) anticipated infrastructure improvements;
(3)(c)(iii)(C) projected economic benefits to the county; and
(3)(c)(iii)(D) evidence of local support including any interlocal agreement entered into between the county or municipality and the council, as applicable;
(3)(c)(iv) if the applicant is a municipality, evidence of coordination with the county in which the proposed electrical energy development zone is located, including any interlocal agreement entered into between the county or municipality and the council, as applicable;
(3)(c)(v) if the applicant is a county and any portion of the proposed electrical energy development zone is within the boundaries of a municipality, evidence of an agreement with the municipality regarding the establishment of the electrical energy development zone; and
(3)(c)(vi) any other information required by the council.
(4) A state land use authority may:
(4)(a) propose an electrical energy development zone within lands under its jurisdiction; and
(4)(b) apply to the council for the designation of an electrical energy development zone by submitting:
(4)(b)(i) a description of the proposed boundaries of the electrical energy development zone;
(4)(b)(ii) an assessment of existing electrical energy infrastructure within and proximate to the proposed electrical energy development zone;
(4)(b)(iii) a development plan that includes:
(4)(b)(iii)(A) proposed electrical energy development projects;
(4)(b)(iii)(B) anticipated infrastructure improvements; and
(4)(b)(iii)(C) projected economic benefits;
(4)(b)(iv) evidence that the proposed zone is consistent with applicable land use plans and regulations; and
(4)(b)(v) any other information required by the council.
(5) The council shall:
(5)(a) approve an application for electrical energy development zone designation if the application demonstrates:
(5)(a)(i) the proposed electrical energy development zone includes land suitable for electrical energy development based on:
(5)(a)(i)(A) access to electrical energy resources;
(5)(a)(i)(B) proximity to existing or planned transmission infrastructure;
(5)(a)(i)(C) adequate transportation access; and
(5)(a)(i)(D) sufficient land area for proposed development; and
(5)(a)(ii) the development plan:
(5)(a)(ii)(A) aligns with state energy policy under Section 79-6-301;
(5)(a)(ii)(B) includes realistic timelines and milestones;
(5)(a)(ii)(C) identifies specific infrastructure improvements; and
(5)(a)(ii)(D) quantifies projected economic benefits;
(5)(b) make a determination on an application within 60 days of submission;
(5)(c) provide written notice to the county or municipality explaining the basis for approval or denial;
(5)(d) if an electrical energy development zone overlaps with an area designated by a community reinvestment agency as a community reinvestment project area as of May 7, 2025, enter into an agreement with the community reinvestment agency to determine the percentage division of the property tax differential between:
(5)(d)(i) the Electrical Energy Development Investment Fund; and
(5)(d)(ii) the community reinvestment agency; and
(5)(e) if an electrical energy development zone overlaps with an inland port project, enter into an agreement with the Utah Inland Port Authority to determine the percentage division of the property tax differential between:
(5)(e)(i) the Electrical Energy Development Investment Fund; and
(5)(e)(ii) the Utah Inland Port Authority created in Section 11-58-201.
(6) Within 30 days after the council designates an electrical energy development zone:
(6)(a) the county auditor shall certify to the council the base taxable value of property within the electrical energy development zone; and
(6)(b) the county shall transmit to the council copies of the property tax assessment rolls for all property within the electrical energy development zone.
(7) (7)(a) Each year, the county auditor shall:
(7)(a)(i) determine the amount of the property tax differential for the electrical energy development zone by comparing:
(7)(a)(i)(A) the current assessed value of property within the electrical energy development zone; and
(7)(a)(i)(B) the base taxable value of property within the electrical energy development zone;
(7)(a)(ii) inform the county treasurer of the property tax differential amount; and
(7)(a)(iii) provide notice to the council of the amount calculated under this Subsection (7)(a).
(7)(b) The county treasurer shall transfer the property tax differential to the council for deposit into the Electrical Energy Development Investment Fund created in Section 79-6-1105, subject to any agreements entered into under Subsections (5)(d) and (5)(e).
(7)(c) The county treasurer shall make distributions required under this section:
(7)(c)(i) at the same time as regular annual property tax distributions; and
(7)(c)(ii) using the same method as other property tax distributions.
(8) For property tax differential not subject to Subsection (5)(d) the council may enter into agreements with taxing entities regarding the allocation of the property tax differential.

Legislative History

Enacted by Chapter 375, 2025 General Session