Utah Renewable Energy Bill Stalls in House

Posted: 03/11/2014  browse the blog archive
Utah Renewable Energy Bill Stalls in House

A bill allowing municipalities and counties in Utah to make bulk purchases of renewable energy power stalled in the House, reported The Salt Lake Tribune in February.  HB110 expands upon legislation passed in 2012 that enabled large electricity customers to purchase power from renewable sources as long as they bought at least two megawatts (enough to power 2,000 homes).

HB110 enables “community choice aggregation” (CCA), a system in which cities and counties may aggregate the buying power of individuals to obtain alternative energy on a community-wide basis.  CCA has been legalized in six states: California, Massachusetts, Rhode Island, Illinois, Ohio, and New Jersey. 

Although Summit County and Salt Lake City leaders praised the bill, utility company Rocky Mountain Power opposed the bill due to the potential increase in cost for consumers.  After listening to testimony expressing concerns that the bill could raise power costs and create logistical problems, the House Political Subdivisions Committee voted not to act on the bill and recommended it for interim study to work out operational issues before the 2015 legislative session.    

Representatives from counties with a legacy of coal mining were unenthused about the bill; House Committee member Jerry Anderson said the bill aims to put “the coal business out of business,” and proclaimed that the atmosphere could use more carbon dioxide, which is released by coal burning.  A University of Utah engineering professor responded that there was scientific consensus that such emissions are warming the planet.

The Chanler Group is actively engaged in the review and analysis of incentive-based renewable energy programs to determine potential benefits to our clients.  Global energy consumption continues to increase each year and, with this increase, the demand for safe, clean, and unlimited energy is on the rise.  The Federal and State governments promote this interest through a variety of financially-beneficial incentives.  Our understanding of these laws allows us to guide homeowners, businesses, and/or developers through the various ways to take advantage of these incentive-based benefits.  With the appreciation that renewable energy laws and regulations are constantly changing, The Chanler Group is committed to investing in its understanding and practice of this area of law.