Utah Energy Infrastructure Service District

Utah Code tit. 17B, ch. 17B-2a, pt. 17B-2a-P14

in effect

Utah Code § 17B-2a-1401 Definitions.

17B-2a-1401. Definitions. (1) "Board" means the board of trustees of the Utah Energy Infrastructure Service District. (2) "Commission" means the State Finance Review Commission created in Section 63C-25-201. (3) "Council" means the Utah Energy Council created under Section 79-6-1101. (4) "District" means the Utah Energy Infrastructure Service District created under Section 17B-2a-1403. (5) "Electrical Energy Development Investment Fund" means the fund created under Section 79-6-1105. (6) "Electrical energy development zone" means the same as that term is defined in Section 79-6-102. (7) "Energy infrastructure facility" means any real or personal property, including land, structures, equipment, water rights, transmission lines, generation assets, storage facilities, and associated improvements, used or useful for the generation, transmission, storage, or delivery of energy, including electricity and natural gas. (8) "Enterprise fund" means the Energy Infrastructure Enterprise Fund created under Section 17B-2a-1408. (9) "Operating contract" means a contract between the district and an operator for the management, operation, and maintenance of an energy infrastructure facility owned by the district. (10) "Operator" means an entity that enters into an operating contract with the district. (11) "Power purchase agreement" means a contract for the sale of electricity or other energy produced by or transmitted through an energy infrastructure facility controlled or owned by the district. (12) "Project entity" means the same as that term is defined in Section 11-13-103. (13) "Project entity asset" means the same as that term is defined in Section 11-13-318. (14) "Retired project entity asset" means a project entity asset that has been removed from active service before May 6, 2026, by a project entity that the project entity has no intent to return to service. (15) "Retired project entity asset area" means the land upon which a retired project entity asset is located, together with adjacent land necessary for the operation of that asset. (16) "Service area" means a geographic area designated by the board under Section 17B-2a-1405 within which the district owns or proposes to facilitate the acquisition or construction of an energy infrastructure facility. Enacted by Chapter 474, 2026 General Session

Utah Code § 17B-2a-1402 Applicability and conflict.

17B-2a-1402. Applicability and conflict. (1) The district is governed by and has the powers stated in: (a) this part; and (b) Chapter 1, Provisions Applicable to All Special Districts, except as otherwise provided in this part. (2) This part applies only to the district. (3) The district is not subject to the provisions of any other part of this chapter. (4) If there is a conflict between a provision in Chapter 1, Provisions Applicable to All Special Districts, and a provision in this part, the provisions in this part govern. (5) If there is a conflict between a provision of this part and a provision of Title 10, Utah Municipal Code, or Title 54, Public Utilities, Title 10, Utah Municipal Code, or Title 54, Public Utilities, as applicable, shall govern. Enacted by Chapter 474, 2026 General Session

Utah Code § 17B-2a-1403 Creation and status.

17B-2a-1403. Creation and status. (1) The council may create the Utah Energy Infrastructure Service District by adopting a resolution that: (a) declares the council's intent to create the district; (b) describes the service area, including the geographic boundaries of the area within which the district will operate; and (c) identifies the type of energy infrastructure facility proposed or located within the service area. (2) No later than 30 days after adopting a resolution under Subsection (1), the council shall file with the lieutenant governor: (a) a copy of a notice of an impending boundary action, as defined in Section 67-1a-6.5, that meets the requirements of Section 67-1a-6.5; and (b) a copy of an approved final local entity plat, as defined in Section 67-1a-6.5, depicting the service area boundary. (3) The district is created and exists as a legal entity upon the lieutenant governor's issuance of a certificate of incorporation under Section 67-1a-6.5. (4) Upon creation, the district: (a) is a body politic and corporate with perpetual succession; (b) is a political subdivision of the state; (c) is separate and distinct from the state and from any other political subdivision of the state; and (d) may sue and be sued. (5) The debts, obligations, and liabilities of the district: (a) are the debts, obligations, and liabilities of the district alone; and (b) are not the debts, obligations, or liabilities of the state or any other political subdivision of the state. (6) Notwithstanding Chapter 1, Part 2, Creation of a Special District, the district: (a) may only be created as provided in this section; and (b) is not subject to the petition and creation requirements of Sections 17B-1-203 through 17B-1-214. (7) Following the issuance of a certificate of incorporation under Subsection (3), the board shall annually register the district with the lieutenant governor in accordance with Section 67-1a-15. Enacted by Chapter 474, 2026 General Session

Utah Code § 17B-2a-1404 Board of trustees.

17B-2a-1404. Board of trustees. (1) Notwithstanding Chapter 1, Part 3, Board of Trustees, the board of trustees of the district consists of the members of the council appointed under Section 79-6-1102. (2) (a) A person serves as a member of the board by virtue of that person's appointment to the council. (b) Service on the board is concurrent with and coterminous with service on the council. (3) The co-chairs of the council serve as co-chairs of the board. (4) A vacancy on the board is filled in the same manner as a vacancy on the council under Section 79-6-1102. (5) The board shall adopt bylaws governing the conduct of board meetings, quorum requirements, and other procedural matters consistent with this part and Chapter 1, Provisions Applicable to All Special Districts. (6) (a) When acting in the capacity of a board member, a council member's fiduciary obligation runs to the district. (b) Nothing in this section limits a council member's obligations to the council when acting in the capacity of a council member. Enacted by Chapter 474, 2026 General Session

Utah Code § 17B-2a-1405 Single service area authorized.

17B-2a-1405. Single service area authorized. (1) The district's service area consists of: (a) the service area established under Section 17B-2a-1403; and (b) a retired project entity asset area. (2) The district may own and operate energy infrastructure facilities only within a designated service area. (3) Once the service area is established, the district may not: (a) annex any new land into the service area; or (b) establish a new service area. Enacted by Chapter 474, 2026 General Session

Utah Code § 17B-2a-1406 Powers of the district.

17B-2a-1406. Powers of the district. (1) Notwithstanding Subsection 17B-1-103(4) and Section 17B-1-202, and in addition to the powers conferred on a special district under Section 17B-1-103, the district may: (a) acquire by purchase, construction, gift, or any combination of these methods, and own, operate, maintain, improve, and dispose of energy infrastructure facilities within a designated service area; (b) enter into operating contracts with operators for the management, operation, and maintenance of district-owned energy infrastructure facilities in accordance with Section 17B-2a-1409; (c) enter into power purchase agreements for the sale of electricity or other energy produced by or transmitted through district-owned facilities; (d) issue revenue bonds in accordance with Section 17B-2a-1407 and Chapter 1, Part 11, Special District Bonds; (e) enter into contracts, agreements, and other instruments necessary or convenient to carry out the purposes of the district; (f) acquire water rights, air rights, and other real and personal property rights necessary or convenient to the ownership or operation of energy infrastructure facilities within the service area; (g) accept grants, gifts, loans, and other financial assistance from federal, state, and local governmental entities; (h) employ staff and engage financial advisors, engineers, and other professional services necessary to carry out the purposes of the district; (i) impose fees and charges for services provided by the district in accordance with Chapter 1, Part 9, Collection of Service Fees and Charges; (j) impose penalties on an operator for non-compliance with the terms of an operating contract, as specified in the operating contract; and (k) do all other things necessary or convenient to carry out the purposes of this part. (2) Before constructing or operating an energy infrastructure facility within the boundaries of a city or town, the district shall obtain the consent of the local authorities who have control of any street or highway proposed to be occupied by the facility, in accordance with Utah Constitution, Article XI, Section 9. (3) (a) The district is not an electric service provider and may not sell, distribute, or deliver electricity directly to retail customers. (b) Neither the district nor the board may provide electric service within the certificated service territory of any entity that has been authorized to provide retail electric service in that territory pursuant to: (i) a certificate of public convenience and necessity issued by the Public Service Commission under Title 54, Public Utilities; (ii) a franchise, ordinance, or other authorization granted under Title 10, Utah Municipal Code; or (iii) any other provision of state law authorizing an entity to provide retail electric service within a defined geographic area. (c) Nothing in this part shall be construed to limit, diminish, or otherwise affect the certificated service territory of an entity that has been authorized to provide retail electric service in the state. Enacted by Chapter 474, 2026 General Session

Utah Code § 17B-2a-1407 Revenue bonds -- Commission review and approval.

17B-2a-1407. Revenue bonds -- Commission review and approval. (1) The district may issue revenue bonds to finance the acquisition, construction, improvement, or equipping of energy infrastructure facilities within a designated service area. (2) (a) Revenue bonds issued under this section: (i) are limited obligations of the district payable solely from revenues deposited into the enterprise fund described in Section 17B-2a-1408; (ii) do not constitute a general obligation or liability of, or a charge against the general credit or taxing power of, the state or any political subdivision of the state; (iii) are not subject to the debt limitations of Utah Constitution, Article XIV; and (iv) shall state on the face of each bond the limitation described in Subsection (2)(a)(ii). (b) Notwithstanding the requirements in Subsection (2)(a)(iv), the failure to state on the face on the bond the limitation described in (2)(a)(ii) does not have any impact on the limited obligation described in this section. (3) (a) The commission shall review and may approve a bond before the district may issue a bond. (b) The commission may not approve issuance of a bond described in Subsection (3)(a) unless the execution and terms of the bond comply with state law. (c) If, after review, the commission approves a bond described in Subsection (3)(a), the district: (i) may not change before issuing the bond the terms of the bond that were reviewed by the commission if the change is outside the approved parameters and intended purposes; and (ii) is under no obligation to issue the bond. (d) A member of the commission who approves a bond under Subsection (3)(a) is not personally liable on the bond. (e) The approval of a bond under Subsection (3)(a): (i) is not an obligation of the state; and (ii) is not an act that: (A) lends the state's credit; or (B) constitutes indebtedness within the meaning of any constitutional or statutory debt limitation. (4) The district may pledge to the payment of revenue bonds any legally available revenues of the district. (5) The district may establish reserve funds, debt service funds, and other funds as required by bond indentures or trust agreements securing revenue bonds issued under this section. (6) The district may issue refunding bonds to refund outstanding revenue bonds issued under this section. (7) Notwithstanding Chapter 1, Part 11, Special District Bonds, the district may not issue general obligation bonds. Enacted by Chapter 474, 2026 General Session

Utah Code § 17B-2a-1408 Energy Infrastructure Enterprise Fund.

17B-2a-1408. Energy Infrastructure Enterprise Fund. (1) In addition to the requirements of Chapter 1, Part 6, Fiscal Procedures for Special Districts, the board shall establish and maintain an enterprise fund known as the Energy Infrastructure Enterprise Fund. (2) The following shall be deposited into the enterprise fund: (a) proceeds of revenue bonds issued under Section 17B-2a-1407, pending application to authorized purposes including a bond project fund to ensure the appropriate use of such proceeds; (b) payments received by the district under operating contracts; (c) payments received by the district under power purchase agreements; and (d) any other revenues received by or pledged to the district. (3) Revenues in the enterprise fund shall be used solely for the purposes of the district and applied in the order prescribed by the district and in compliance with any bond contract approved by the district. Enacted by Chapter 474, 2026 General Session

Utah Code § 17B-2a-1409 Operating contracts.

17B-2a-1409. Operating contracts. (1) The district may enter into operating contracts with operators for the management, operation, and maintenance of district-owned energy infrastructure facilities within the service area described in Section 17B-2a-1405. (2) An operating contract shall: (a) require the operator to manage, operate, and maintain the facility in accordance with applicable law and prudent industry standards; (b) specify the payments the operator shall make to the district, which shall be structured to cover, at minimum, the district's debt service obligations and operating costs attributable to the facility; (c) specify the term of the contract, which may not exceed 40 years; (d) provide that upon expiration or termination of the contract full operational control of the facility returns to the district free of any claim of the operator; and (e) specify the conditions under which the contract may be terminated or renewed. (3) An operating contract entered into under this section: (a) is a service agreement; and (b) does not convey a leasehold interest, ownership interest, or any other property interest in the facility to the operator. (4) The district shall require each operator to maintain: (a) adequate insurance coverage as determined by the board; and (b) where appropriate, performance bonds or other financial security acceptable to the board to protect the district's interests under the operating contract. (5) The board shall structure each operating contract to ensure that each operating contract complies with applicable federal tax law governing qualified management contracts as may be required by a federally tax-exempt revenue bond. Enacted by Chapter 474, 2026 General Session

Utah Code § 17B-2a-1410 Property taxes and privilege tax.

17B-2a-1410. Property taxes and privilege tax. (1) All property and assets of the district are exempt from taxation as provided in Section 17B-1-116. (2) An operator using district-owned facilities is subject to the privilege tax imposed under Title 59, Chapter 4, Privilege Tax. (3) The district may levy a privilege tax within the service area for district operations and maintenance expenses at a rate not to exceed 0.0023. (4) Notwithstanding this section, nothing prohibits the district from agreeing to a payment in lieu of taxes in the board's sole discretion. Enacted by Chapter 474, 2026 General Session

Utah Code § 17B-2a-1411 Dissolution.

17B-2a-1411. Dissolution. (1) The board may adopt a dissolution resolution if: (a) the district has ceased operations in the service area; and (b) the district has no outstanding debt or other obligations. (2) The Legislature may dissolve the district by joint resolution. (3) Upon dissolution of the district: (a) all outstanding revenue bonds shall be defeased or retired in accordance with their terms before dissolution is effective; and (b) all remaining assets of the district shall be transferred to the state. Enacted by Chapter 474, 2026 General Session

Source: Utah Office of Legislative Research and General Counsel (le.utah.gov)URL: https://le.utah.gov/xcode/Title17B/Chapter2A/17B-2a-P14.html?v=C17B-2a-P14_2026050620260506Fetched: 10/26/2026