Adjusted retail electric sales: means the total kilowatt-hours of retail electric sales of a municipal electric utility to customers in this state in a calendar year, reduced by:
(a)
the amount of those kilowatt-hours attributable to electricity generated or purchased in that calendar year from qualifying zero carbon emissions generation and qualifying carbon sequestration generation;
(b)
the amount of those kilowatt-hours attributable to electricity generated or purchased in that calendar year from generation located within the geographic boundary of the Western Electricity Coordinating Council that derives its energy from one or more of the following but that does not satisfy the definition of a renewable energy source or that otherwise has not been used to satisfy Subsection 10-19-201(1):
(i)
wind energy;
(ii)
solar photovoltaic and solar thermal energy;
(iii)
wave, tidal, and ocean thermal energy;
(iv)
except for combustion of wood that has been treated with chemical preservatives such as creosote, pentachlorophenol or chromated copper arsenate, biomass and biomass byproducts, including:
(A)
organic waste;
(B)
forest or rangeland woody debris from harvesting or thinning conducted to improve forest or rangeland ecological health and to reduce wildfire risk;
(C)
agricultural residues;
(D)
dedicated energy crops; and
(E)
landfill gas or biogas produced from organic matter, wastewater, anaerobic digesters, or municipal solid waste;
(v)
geothermal energy;
(vi)
hydro-electric energy; or
(vii)
waste gas and waste heat capture or recovery; and
(c)
the number of kilowatt-hours attributable to reductions in retail sales in that calendar year from activities or programs promoting electric energy efficiency or conservation or more efficient management of electric energy load. See Utah Code 10-19-102
Banked renewable energy certificate: means a bundled or unbundled renewable energy certificate that is:
(a)
not used in a calendar year to comply with this part or with a renewable energy program in another state; and
Contract: A legal written agreement that becomes binding when signed.
Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
Municipal: means of or relating to a municipality. See Utah Code 10-1-104
Municipal electric utility: means any municipality that owns, operates, controls, or manages a facility that provides electric power for a retail customer, whether domestic, commercial, industrial, or otherwise. See Utah Code 10-19-102
Municipality: means :
(a)
a city of the first class, city of the second class, city of the third class, city of the fourth class, city of the fifth class;
a metro township as that term is defined in Section 10-2a-403 unless the term is used in the context of authorizing, governing, or otherwise regulating the provision of municipal services. See Utah Code 10-1-104
Qualifying electricity: means electricity generated on or after January 1, 1995 from a renewable energy source if:
(a)
(i)
the renewable energy source is located within the geographic boundary of the Western Electricity Coordinating Council; or
(ii)
the qualifying electricity is delivered to the transmission system of a municipal electric utility or a delivery point designated by the municipal electric utility for the purpose of subsequent delivery to the municipal electric utility; and
(b)
the renewable energy attributes of the electricity are not traded, sold, transferred, or otherwise used to satisfy another state's renewable energy program. See Utah Code 10-19-102
Renewable energy certificate: means a certificate issued in accordance with the requirements of Sections 10-19-202 and 54-17-603. See Utah Code 10-19-102
Renewable energy source: means :
(a)
an electric generation facility or generation capability or upgrade that becomes operational on or after January 1, 1995 that derives its energy from one or more of the following:
(i)
wind energy;
(ii)
solar photovoltaic and solar thermal energy;
(iii)
wave, tidal, and ocean thermal energy;
(iv)
except for combustion of wood that has been treated with chemical preservatives such as creosote, pentachlorophenol or chromated copper arsenate, biomass and biomass byproducts, including:
(A)
organic waste;
(B)
forest or rangeland woody debris from harvesting or thinning conducted to improve forest or rangeland ecological health and to reduce wildfire risk;
(C)
agricultural residues;
(D)
dedicated energy crops; and
(E)
landfill gas or biogas produced from organic matter, wastewater, anaerobic digesters, or municipal solid waste;
(v)
geothermal energy located outside the state;
(vi)
waste gas and waste heat capture or recovery whether or not it is renewable, including methane gas from:
(A)
an abandoned coal mine; or
(B)
a coal degassing operation associated with a state-approved mine permit;
(vii)
efficiency upgrades to a hydroelectric facility, without regard to the date upon which the facility became operational, if the upgrades become operational on or after January 1, 1995;
(viii)
a compressed air energy storage process, if:
(A)
the process used to compress the air is a renewable energy source and the associated renewable energy certificates are retired for the purpose of the compressed air energy storage process; or
(B)
equivalent renewable energy certificates are obtained and retired for the purpose of the compressed air energy storage process; or
(ix)
municipal solid waste;
(b)
any of the following:
(i)
up to 50 average megawatts of electricity per year per municipal electric utility from a certified low-impact hydroelectric facility, without regard to the date upon which the facility becomes operational, if the facility is certified as a low-impact hydroelectric facility on or after January 1, 1995, by a national certification organization;
(ii)
geothermal energy if located within the state, without regard to the date upon which the facility becomes operational; and
(iii)
hydroelectric energy if located within the state, without regard to the date upon which the facility becomes operational;
(c)
hydrogen gas derived from any source of energy described in Subsection (11)(a) or (b);
(d)
if an electric generation facility employs multiple energy sources, that portion of the electricity generated that is attributable to energy sources described in Subsections (11)(a) through (c); and
(e)
any of the following located in the state and owned by a user of energy:
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
(a)
To the extent that it is cost-effective to do so, beginning in 2025 the annual retail electric sales in this state of each municipal electric utility shall consist of qualifying electricity or renewable energy certificates in an amount equal to at least 20% of adjusted retail electric sales.
(b)
The amount under Subsection (1)(a) is computed based upon adjusted retail sales for the calendar year commencing 36 months before the first day of the year for which the target calculated under Subsection (1)(a) applies.
(c)
Notwithstanding Subsections (1)(a) and (b) an increase in the annual target from one year to the next is limited to the greater of:
(i)
17,500 megawatt-hours; or
(ii)
20% of the prior year’s amount under Subsections (1)(a) and (b).
(2)
Cost-effectiveness under Subsection (1) is determined using any criteria applicable to the municipal electric utility‘s acquisition of a significant energy resource established by the municipality‘s legislative body.
(3)
This section does not require a municipal electric utility to:
(a)
substitute qualifying electricity for electricity from a generation source owned or contractually committed, or from a contractual commitment for a power purchase;
(b)
enter into any additional electric sales commitment or any other arrangement for the sale or other disposition of electricity that is not already, or would not be, entered into by the municipal electric utility; or
(c)
acquire qualifying electricity in excess of its adjusted retail electric sales.
(4)
A municipal electrical corporation may combine the following to meet Subsection (1):
(a)
qualifying electricity from a renewable energy source owned by the municipal electric utility;
(b)
qualifying electricity acquired by the municipal electric utility through trade, power purchase, or other transfer; and
(c)
a bundled or unbundled renewable energy certificate, including a banked renewable energy certificate.
(5)
To meet Subsection (1), a municipal electric utility may also count:
(a)
qualifying electricity generated or acquired or renewable energy certificates acquired for a program permitting the municipal electric utility’s customers to voluntarily contribute to a renewable energy source; and
(b)
electricity allocated to this state that is produced by a hydroelectric facility becoming operational after December 31, 2007 if the hydroelectric facility is located in any state in which the municipal electric utility, or the interlocal entity with which the municipal electric utility has a contract, provides electric service.
