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Senate passes substitute SB 102 offering tax credits to spur refinery upgrades to Tier 3 fuels
Summary
The Utah Senate approved a second substitute to Senate Bill 102, a tax‑credit incentive designed to encourage refinery investment to produce cleaner Tier 3 fuels; supporters said it would improve air quality and create jobs, while several senators pressed for clarity on the bill's long‑term fiscal effect.
The Utah Senate on the floor approved a second substitute to Senate Bill 102, a high‑cost infrastructure tax‑credit measure aimed at encouraging refineries to invest in upgrades needed to produce cleaner Tier 3 fuels. The sponsor described the change as an incentive tied to post‑investment production and job creation and said credits would be issued only after companies completed eligible improvements.
"This allows a tax [credit] to them to be able to do the ... improvements in the refineries that are needed to go to Tier 3," the bill sponsor said, arguing the measure is an incentive, not a reward. The sponsor also said adopting Tier 3 production by three of the state's refineries would substantially reduce air pollution and characterized the bill's fiscal note as neutral because anticipated new economic activity and resulting revenue would offset credits.
Senators pressed the sponsor on the bill's fiscal scope. Senator Dabakis challenged the change in funding estimates: "The original bill was $8,000,000 ongoing. The new one is $14,000,000 ongoing. Is that correct?" He also said an analyst had told him the program could amount to about $14 million per year beginning in 2021 over multiple years. In response the sponsor said the exact amount of credits will depend on future applications and that current language limits credits to post‑investment claims; the sponsor said, "we just don't know until we see what the applications are."
Questions also focused on whether credits could be applied against existing tax liabilities or only against new growth. One senator summarized the sponsor's explanation: tax credits would be issued only for future applications and could not be applied to current tax liabilities.
After debate the Senate called the roll. The clerk announced the result and directed that the bill, having passed the Senate on final reading, be sent to the House for its consideration.
The bill's next procedural step is consideration by the House; the sponsor said oversight and an administering board would be established to review applications for credits.
Provenance: transcript discussion and debate on SB 102 appear beginning at SEG 289 (introduction of the second substitute) through SEG 541 (roll call and announcement of passage).
