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Senate advances incentive package aimed at growing in‑state aviation fuel production
Summary
The Senate passed a substitute that creates tax refunds and a severance‑tax‑funded grant program to encourage carriers and refineries to expand aviation fuel production in Utah; supporters cited potential annual returns, while critics warned about timing and fiscal message.
Senator Cullimore introduced a first substitute for Senate Bill 255 that targets in-state aviation fuel production to improve local supply and lower carrier costs in Utah.
Under the substitute, an air carrier that partners with an in‑state refinery and invests at least $30 million would be eligible for performance‑based support: refunds of taxes on aviation fuel purchased in excess of 130,000,000 gallons and a grant program that can provide up to $1,000,000 per year for 10 years to projects that produce at least 2,000 barrels of aviation fuel per day. The sponsor said the program would be funded from severance tax and administered by GOED, with audits and post‑performance credits or grants.
"So an air carrier that does this is eligible to receive up to $1,000,000 per year for 10 years," Senator Cullimore said, describing the program requirements and thresholds.
Senator Winterton and other supporters argued the plan could return revenue to the state if production increases; one floor remark cited an estimate of roughly $2.7 million annually on a 3,000‑barrel scenario. Other senators expressed concern about moving a large fiscal incentive late in session and about whether the policy should be refined or combined with broader economic development measures.
The Senate passed the substitute under suspension of the rules (tally read in the transcript) and sent it to the House for consideration.
