11-13-301. Project entity and generation output requirements.
(1)
Each project entity:
Terms Used In Utah Code 11-13-301
Additional project capacity: means electric generating capacity provided by a generating unit that first produces electricity on or after May 6, 2002, and that is constructed or installed at or adjacent to the site of a project that first produced electricity before May 6, 2002, regardless of whether:
(i)
the owners of the new generating unit are the same as or different from the owner of the project; and
(ii)
the purchasers of electricity from the new generating unit are the same as or different from the purchasers of electricity from the project. See Utah Code 11-13-103
Estimated electric requirements: when used with respect to a qualified energy services interlocal entity, includes any of the following that meets the requirements of Subsection (8)(b):
Facilities providing replacement project capacity: includes facilities that have been, are being, or are proposed to be constructed, reconstructed, converted, repowered, acquired, leased, used, or installed:
(i)
to support and facilitate the construction, reconstruction, conversion, repowering, installation, financing, operation, management, or use of replacement project capacity; or
(ii)
for the distribution of power generated from existing capacity or replacement project capacity to facilities located on real property in which the project entity that owns the project has an ownership, leasehold, right-of-way, or permitted interest. See Utah Code 11-13-103
Project: includes a project entity's ownership interest in:
(i)
facilities that provide additional project capacity;
Replacement project capacity: means electric generating capacity or transmission capacity that:
(a)
replaces all or a portion of the existing electric generating or transmission capacity of a project; and
(b)
is provided by a facility that is on, adjacent to, in proximity to, or interconnected with the site of a project, regardless of whether:
(i)
the capacity replacing existing capacity is less than or exceeds the generating or transmission capacity of the project existing before installation of the capacity replacing existing capacity;
(ii)
the capacity replacing existing capacity is owned by the project entity that is the owner of the project, a segment established by the project entity, or a person with whom the project entity or a segment established by the project entity has contracted; or
(iii)
the facility that provides the capacity replacing existing capacity is constructed, reconstructed, converted, repowered, acquired, leased, used, or installed before or after any actual or anticipated reduction or modification to existing capacity of the project. See Utah Code 11-13-103
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)
shall:
(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;
(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
under a long-term arrangement that may be an undivided ownership interest, a participation interest, a power sales agreement, or otherwise; and
(B)
to one or more power purchasers in the state that supply electric energy at wholesale or retail; and
(b)
may undertake construction of facilities providing replacement project capacity for its project.
(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.
(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:
(A)
made available as needed to meet the estimated electric requirements of entities or consumers within the state; and
(B)
owned, purchased, or consumed by entities or consumers within the state.
(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.
(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.
