Utah Gov. Spencer Cox has called a special session for 4 p.m. Wednesday in part to deal with a controversial energy bill that could pave the way for new ownership of the Intermountain Power Agency’s Delta power plant.
Cox made the announcement Friday, which also details the intent to discuss “federal overreach” on public lands in the state and what action or strategies might be deployed.
The top item in his proclamation is centered on SB161, which passed during the general session, called the Energy Security Amendments sponsored by Sen. Derrin Owens, R-Fountain Green, with Rep. Carl Albrecht, R-Richfield, as House sponsor.
There has been mounting tension among GOP lawmakers in Utah and the operators of the Intermountain Power Plant, which delivers energy to Southern California.
The plant is poised to switch to natural gas and is abandoning coal resources. During the session, lawmakers complained that the large power plant intends to take its natural gas from outside Utah.
Additionally, a legislative audit found the plant operates with little Utah government oversight, despite being set up decades ago as a political subdivision of the state. Of particular angst to some lawmakers is the fact that California receives 98% of the power but IPA is using Utah water and stopped using Utah coal to run its 1,900-megawatt plant. When it transitions to natural gas as mandated by California’s clean energy standards, it also plans to purchase that fuel from Wyoming.
Auditors added the Intermountain Power Agency has been reaping substantial public benefit and contributes to Millard County’s tax base, but not without excessive disputes. The auditor pointed out the plant has appealed its county tax assessment 26 of 38 years. The plant is operated by the agency via the Los Angeles Department of Water and Power.
SB161 would establish a decommissioning authority to give Utah leaders the opportunity to purchase the assets at the Delta plant, including water rights, before the coal units are shelved.
Democratic leaders and clean energy advocates were in fierce opposition to the law and Cox did hint some fixes might be necessary in a special session.
Critics said the law moves the state in the wrong trajectory amid the push to move to a clean energy landscape. They were also skeptical that the state could even acquire the necessary air quality permits for the plant to continue to burn coal.
The Cox agenda for Wednesday also includes discussions about “federal overreach” on public lands and in other regulatory arenas, including delays in the federal leasing process or project approvals.
While Wednesday is the federal Juneteenth holiday, the governor’s office said that the state will commemorate Juneteenth on Monday.
The special session will also include several items dealing with education issues.