2011 Legislative Wrap-UP
Utah 2011 Legislative Wrap-Up
Compiled by Sara Baldwin, Senior Policy & Regulatory Associate, Utah Clean Energy
The 2011 Utah Legislative Session was relatively mellow on the clean energy front, and many of the key issues and bills considered are being deferred to the 2011 summer interim session and likely to the 2012 legislative session. While Utah Clean Energy certainly would have liked to see more activity and progress on the clean energy front this session, we are happy to report that clean energy was mostly held harmless during a session that saw significant budget cuts and no shortage of controversial issues. Below is a brief summary of the legislative session’s highs, middles, and lows for renewable energy, energy efficiency, and climate change. If you would like more details on any of the legislation please visit Utah Clean Energy’s2011 Legislative Archive or contact Sara Baldwin at sbaldwin@utahcleanenergy.org.
Governor Appoints new Energy Advisor – A Positive Asset to Utah’s Clean Energy Policy Arena
In the midst of the legislative session, Utah’s Governor Herbert appointed a new Energy Advisor, following Dr. Dianne Nielson’s announced retirement. Amanda Smith, the Director of the Department of Environmental Quality (DEQ) and former Advisor to Governor Jon Huntsman Jr., is the new Energy Advisor; she will continue to serve as the Director of DEQ for the time being. Utah Clean Energy has worked closely with Amanda Smith over the years and is encouraged by her appointment to this influential position. Amanda has a solid understanding of energy policy and regulatory issues and will be an asset to Utah’s energy policy discussions.
Governor’s 10-Year Energy Plan Weak on Renewable Energy, Strong on Energy Efficiency
Following the legislative session, Governor Herbert released his 10-Year Energy Initiative. Despite the input, reports, and time provided by numerous renewable energy stakeholders and advocates invited to serve on the Subcommittees for the Initiative, the plan is quite weak on renewable energy and makes inaccurate and unsubstantiated statements about the viability and costs of renewable energy. The report, however, contradicts itself later in the document, stating that “[t]o build the clean energy economy, gain more energy independence and promote development and jobs, Utah will need to develop its own large-scale renewable energy projects” (pg 34) and repeatedly sites the need to diversify Utah’s energy portfolio. The report acknowledges that it is provides a starting point for more discussions, which is a hopeful indication that there will be continued opportunities to educate the Governor and the Task Force about the legitimate and substantial value of renewable energy development in Utah. The plan includes a recommendation to establish an Advisory Committee within the newly created Energy Office (see below) to oversee the implementation of the Governor’s Energy Plan. Utah Clean Energy has issued requests to be involved in subsequent efforts pertaining to the plan to ensure there is a clean energy voice at the table.
- Read the 10-year Initiative
- Read Utah Clean Energy’s Press Release Response to the Initiative
Creation of Utah Office of Energy Development
At the request of the Governor, Utah’s legislature passed HB 475 – State Energy Amendments, sponsored by Rep. Barrus, which shifts the current State Energy Program (an office that focuses solely on renewable energy and energy efficiency) to a newly created Office of Energy Development, which will function under the jurisdiction of the Governor’s Energy Advisor. The director of this Office will be appointed by the Governor’s Energy Advisor.
Renewable Energy Legislation Delayed for Next Year, but No Harm Done
Several renewable energy bill files were opened during the 2011 legislative session that never moved forward because of lack of time and inability to come to a consensus on some key issues. The discussions surrounding SB 166 - Energy Amendments centered on ways to enable large end-users to purchase renewable energy from remote projects, utilizing the utility distribution lines to facilitate the transaction. SB 190 - Energy Cost Recovery and Renewable Energy Provisions would have addressed issues surrounding cost-recovery of renewable energy and would have given large solar projects a mechanism to compete on a more level playing field in the utility RFP process. Following a good deal of negotiation and discussion among the interested parties, it was decided to continue exploring these options over the next year for possible consideration during the 2011 Interim and 2012 legislative session.
Fortunately, Utah’s legislators made no attempts to undermine Utah’s Strong Net Metering Policies (improved 2008-2009) or other foundational renewable energy policies. Thanks to Utah Clean Energy’s outreach and education on the importance and value of net metering, net metering was held harmless this year. In addition, Utah has earned national recognition for our net metering policies and we are now at the head of the class nationally in the Freeing the Grid Report as one of only two states to receive As for both net metering and interconnection (up from two Fs in 2007)!
Smart Energy Efficiency Bills Shut Down For Now
Utah’s legislature squandered yet another opportunity to adopt the most updated Residential Energy Codes for new home construction by failing to make a minor amendment to a comprehensive building code bill, HB 203 - Codification of State Construction and Fire Codes. The most updated energy code (2009 IECC) was studied and analyzed intently throughout 2010 by an Ad Hoc Committee, following a request from the legislature that the issue received additional study. The Ad Hoc Committee provided their information to the State’s Uniform Building Code Commission, which recommended adoption of the 2009 IECC, with some minor changes. However, the House went out of its way to insert two lines in the legislation — HB203 — that would mandate a throwback to the standards of the 2006 energy code. The issue of the 2009 codes will continue during the 2011 Interim Session and will likely come forward again in 2012.
Another energy efficiency bill, SB 182 - Construction Trades Licensing Amendments would have created a licensing requirement for individual residential HVAC Air System Technicians (similar to electricians and plumbers) and would have required HVAC contractors to receive fuel and electricity efficiency education. Poorly designed and installed HVAC systems can use 65% more electricity than those that are properly sized using code-required energy calculations. Correctly designed and installed HVAC systems operate efficiently, reduce excess demand on our utility infrastructure; this helps keep utility rates low. Despite broad industry support for this bill and a strong sponsor, this bill didn’t move anywhere this session and will be considered by involved stakeholders during the 2011 Interim Session.
Attempts to Limit Climate Change Regulation and Oversight
Utah’s legislature never fails to take aim at the issue of climate change and regulation of greenhouse gases, and this year was no exception. Utah Clean Energy provided information to numerous legislators and stakeholders regarding our concerns with two bills that the potential to negatively impact Utah’s ability to diversity our energy portfolio, keep pace and flourish in the global clean-energy economy, and protect Utah citizens and businesses from growing risks and uncertainties surrounding global climate change.
HJR 19 - Joint Resolution Opposing the EPA's Regulation of Greenhouse Gases, calls on the U.S. Congress to adopt legislation prohibiting the Environmental Protection Agency (EPA) from regulating greenhouse gas (GHG) emissions without Congressional approval including, if necessary, not funding EPA greenhouse gas regulatory activities. The bill also calls on Congress to impose a moratorium on the promulgation of any new GHG regulation by the EPA for a period of at least two years, except to directly address an imminent health or environmental emergency. This Joint Resolution passed out of the House and Senate (though not unanimously) and has been enrolled (luckily, though, resolutions are more like message bills with no teeth. Despite the message, Utah will not be directly impacted by passage of this resolution).
HB 399 - Environmental Litigation Bond requires a plaintiff requesting a preliminary injunction or an administrative stay to post a bond; requires an unsuccessful plaintiff to pay damages to defendants who are harmed by a preliminary injunction or administrative stay; and provides for an immediate appeal of a court's or agency's refusal to require the bond. Similar legislation was introduced in 2006 (vetoed by Governor Huntsman) and in 2009 (died in Senate Rules Committee). Requiring a plaintiff to post a bond would have the effect of prohibiting certain groups and/or citizens from accessing the judicial system, deterring organizations, no matter how compelling the case. Unfortunately, this bill passed out of the house and senate and was signed into law by Governor Herbert. On the bright side, though, the provisions of the bill pertaining to the jurisdiction of the Department of Environmental Quality (charged with implementing U.S. EPA Clean Air Act regulations) were removed because of concerns regarding constitutionality surrounding the ability of Utah to comply with federal law.
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