House passes renewable‑energy financing bill allowing third‑party ownership for government and nonprofits

The Utah House on March 2, 2010, passed second substitute House Bill 145, a measure intended to expand renewable‑energy deployment by allowing third‑party developers to own systems installed on government and nonprofit properties and sell the power to the property owner under contract.

Representative Brad Last (sponsor) said the change helps nonprofits and government entities that cannot claim tax credits by enabling third‑party developers to own systems and pass tax‑credit benefits through savings in the contract price. The bill expressly limits eligible property owners to government entities and nonprofits to avoid unintended market consequences (Representative Last).

Why it matters: Sponsors said third‑party ownership will facilitate renewable installations on schools, churches and other tax‑exempt properties that otherwise cannot use federal tax credits. The floor record shows sustained questions about whether utilities would shift fixed costs to remaining customers if load migrates; sponsors and the utilities agreed to continue working on safeguards and noted the Public Service Commission remains available to address rate shifts.

Key floor points: Representatives asked whether the program is a pilot, what reporting (if any) utilities should provide, and whether the utility could recover peak or backup costs through rate proceedings; the sponsor said the bill is not a pilot and that notification provisions and existing rate processes address utility concerns. Representatives also discussed potential consumer protection and notification language for prospective participants.

Outcome: Second substitute HB 145 passed on the floor by a recorded vote of 72 yes and 0 no and will be transmitted to the Senate.