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Committee backs transfer framework for Intermountain Power Agency assets to new state entity
Summary
Senators advanced second substitute House Bill 70 to authorize transferring two coal-fired units from the Intermountain Power Agency (an interlocal political subdivision) to a new Utah Energy Council and to outline contracting and sunset procedures for the asset transition.
The committee voted to send the second substitute of House Bill 70, Decommissioned Asset Disposition Amendments, to the Senate floor with a favorable recommendation after the sponsor described a plan to move coal-fired units from the Intermountain Power Agency (IP A) to a newly created Utah Energy Council.
Representative Walter, the sponsor, said the Intermountain Power Agency was created by 23 Utah municipalities and operates two coal-fired units in Delta. Under HB70, the coal units would be transferred from the Intermountain Power Agency — which the sponsor described as a political subdivision created by an interlocal agreement — to the Utah Energy Council, itself established as a state political subdivision. The council would not directly operate the units but would run an RFP process to contract third parties for operation and maintenance.
Representative Walter said the bill aims to preserve service contracts for the 23 Utah municipalities and the Los Angeles Department of Water and Power while making assets accessible for future contracting. He told the committee the bill also sunsets the data process created last year and includes conditions under which the state entity could contract for operation, maintenance and investment.
Senators discussed fiscal notes and staffing for the Utah Energy Council; the sponsor and staff said a nominal general-fund fiscal note reflects startup staffing. The committee adopted a house amendment and then voted to send the second substitute to the floor. The committee vote was 5 to 1 in favor with one senator recorded as opposed.
Votes at a glance: Second substitute House Bill 70 — favorable recommendation as amended (5–1).
The bill will proceed to the full Senate for consideration; sponsor materials say the council would run competitive procurements for future operation and that the transfer is intended to protect existing utility contracts.
