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Utah House passes bill limiting local bans on energy choices; debate centers on local control and regulated utilities

Utah House of Representatives · February 3, 2021
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Summary

House Bill 17, sponsored by Representative Steve Handy, passed after floor debate in which proponents said the bill preserves customer choice and opponents warned it would reduce municipal authority to set energy or environmental standards and questioned whether customers truly have market choices under regulated utility monopolies.

Representative Steve Handy, sponsor of House Bill 17, described the bill as a "preventative measure" to preserve customers' ability to choose energy sources and to rely on market‑based decisions rather than local ordinances that could effectively ban particular energy types. "The market should decide, not government at any level," Handy said, urging that municipalities not be allowed to enact ordinances that have the effect of prohibiting customer choice.

Questioners pressed the sponsor on practical effects. Representative Dailey‑Provost asked to what extent consumers can influence utility company decisions; Handy replied that rate and resource decisions are governed by the Public Service Commission and that public comment is allowed in those dockets. Representative Dailey‑Provost and others warned that regulated utilities function as monopolies in many areas, limiting true consumer choice; Representative Daley–Provost (Dailey‑Provost) argued that the bill would not give consumers more practical influence over utility resource decisions.

Representative Owens raised concerns about language prohibiting ordinances that "have the effect of prohibiting," asking whether safety rules or connection‑fee adjustments that raise costs could be interpreted as prohibited; Handy said legal review and stakeholder negotiation informed the language and he believed it would stand up.

Other lawmakers emphasized local control and environmental goals. Representative Koehler said local governments sometimes take principled stands on environmental issues and opposed the bill for that reason. Representative Lund spoke in support after consulting local county and city officials who he said supported the bill.

On the floor the House adopted the first substitute and passed HB17 by recorded vote: 51 yes, 18 no. The bill will be transmitted to the Senate.