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Yahoo
06-03-2025
- Business
- Yahoo
Opinion: SB337 would take us further down the road to a state-controlled economy
Last year at this time, our Republican legislature's leaders proclaimed their belief that small government and free markets promote individual freedom. Senate President Stuart Adams recently affirmed the party's allegiance to Ronald Reagon's philosophy that 'Government is not the solution to our [economic] problem; government is the problem." How quickly they forget. It is astonishing how far Utah's Republican supermajority has strayed from its spiritual roots. Conservatively, its various development authorities have already used nearly $5 billion in government subsidies to steer over $15 billion in capital investment away from free-market outcomes. This reduces efficiency, misallocates resources and increases prices. In the current legislature session, the supermajority proposes a radical escalation of its campaign to remake our state's commercial real estate and energy markets. If it succeeds, those markets will be shaped more by legislative fiat than by the 'invisible hand' of competition. When our Republican supermajority and governor pursue non-market outcomes, they work through various development 'authorities.' These authorities create zones called Project Areas within which developers receive tax subsidies. Within Project Areas, subzones are created called Public Infrastructure Districts. PIDs issue bonds and obtain government loans, both at below-market-rates because they are backed by local tax revenue. Utah has over 138 PIDs and counting. Unfortunately, authority decisions to distribute these financial gifts to specific developers and specific projects are not made objectively by the 'invisible hand' of free markets, where all the needed information is open and public. Their decisions are unavoidably political. Legislators (or their proxies) sit on authority boards to influence where development zones will be established, which private developers and which projects will benefit from tax subsidies, and which will obtain below-market-rate loans. Typically, these decisions are being made by non-experts behind closed doors, heavily influenced by developers whose private interests are at stake. What could possibly go wrong with such a process? The governor and legislative leaders now propose creating yet another authority to intervene in Utah's energy markets. HB249 would create a Utah Energy Council dominated by the Legislature's appointees. The council would formulate state energy policy, create 'electric energy investment zones,' and oversee an Electric Energy Development Investment Fund. Through this fund, legislators would influence which transmission lines, energy storage facilities and related infrastructure get subsidies. HB249 has other important anti-market features. It would establish a consortium overseen by the Office of Economic Development to promote nuclear power over renewables, despite the high costs, technological uncertainty and decades-long lead times that plague nuclear projects. This statutory bias against renewables would reinforce another one adopted in 2024 which arbitrarily pressures Rocky Mountain power to choose coal over renewables. Compare this government-dominated approach with competitive markets for grid-scale power generation. There, 90% of buyers choose renewables paired with battery storage because this combination provides more reliable base load power than aging coal plants, has much shorter lead times than nuclear, costs less than either and protects our health and our climate. Monday of the last week of the session, our legislative leaders filed substitute SB337. It comes close to abandoning free markets altogether. It proposes to create what amounts to an 'authority of authorities.' This bill would establish an Economic Opportunity Coordinating Council that would function as an unconstitutional standing legislature with broad powers to choose which growth path that Utah's economy will take, what economic sectors Utah's taxes will subsidize, what technology a given sector should adopt, what firms will be chosen to build out that technology and where those buildouts will be located. To implement the Council's policy, its Chief Executive Officer could decide which of Utah's geographic zones will be spared and which will be covered with asphalt and concrete using just a map and a magic marker. He could then order the proposed new Beehive Development Authority to reach into its bag of tax subsidies and make it happen. SB337 is a 147-page bill that alters over 100 provisions of current law that took months to draft. It is inappropriate to spring a bill granting such sweeping powers to new government agencies in the last week of the legislative session, rushing it through under suspended rules. SB337 is not ready for decision. It should be withdrawn and resubmitted in the next legislative session, early enough to receive the close scrutiny it deserves. Our Republican state leaders insist on expanding state control over our economy despite their professed 'small government' beliefs. They seem happy to abandon the bedrock conservative principle that an 'invisible hand' guides free markets to an optimal result. The development authorities they have created are becoming arbitrary and secretive shadow governments. Their reliance on subsidies leads to an oversupply in the areas subsidized, reduced efficiency, higher costs and a more polluted environment. Ask your legislator to listen again to Ronald Reagan, reread Adam Smith and oppose both HB249 and SB337.
Yahoo
18-02-2025
- Business
- Yahoo
Legislative committee focused on plotting Utah's nuclear path
The effort to form the Utah Energy Council, create energy development zones and create a nuclear energy consortium passed on a unanimous vote from the Senate Public Utilities, Energy and Technology Committee on Thursday. HB249 by Rep. Carl Albrecht, R-Richfield, is a measure with a lot of moving parts with areas that will likely need to be tweaked in the years to come. Albrecht has insisted, however, it is a solid start to give Utah's energy portfolio a more diverse and solid future. It is a bill that to position the state to meet growing residential. industrial and commercial demand. The Legislature this session is flush with energy bills, with leadership identifying energy as a top priority and one of the most pressing issues in Utah. The bill by Albrecht does not mean advanced nuclear technology will pop up immediately in the state, but the consortium is tasked with making decisions based on science and what is most appropriate in Utah. House Speaker Mike Schultz, R-Hooper, spoke favorably about the bill during a recent media availability. 'Nuclear is so much safer now. We are running into energy crisis in our nation. It's seen as most efficient and clean for our future,' he said. 'If we're not going to go to nuclear, what are we going to go to?' He added: 'We have more requests for data centers in Utah than energy we use as a state. Whoever controls AI controls the world. We need more energy. We have an energy shortage. I'm glad the rest of the nation has come on board where Utah has been.' Utah has been identified as a 'first mover' state — only one of a handful — by the Idaho National Laboratory's Frontier Project. That designation means Utah is positioned well to embrace nuclear, not only from a carbon free standpoint but as a way to stimulate economic development. Utah was on the cusp of bringing a small modular reactor to life to serve independent power systems run by municipalities. Named the Carbon Free Power Project, the reactors would have been manufactured off-site and then trucked to the Idaho National Laboratory. The project pushed by the Utah Associated Municipal Power Systems went through a laborious permitting process through the U.S. Nuclear Regulatory Commission. It was the first small modular reactor in the country to receive a stamp of approval on its design. But the delays and the escalating costs associated with the energy production eventually led to shelving the project, but UAMPS officials have said it is not totally off the table if costs come down. Congress is in the midst of tackling the permitting process and passed the ADVANCE Act to streamline the licensing process by the NRC. At a conference last year in Park City, the dedication for the transformation to nuclear energy was clear among top political leaders in Utah. The Rep. John Curtis, R-Utah, and state Senate President Stuart Adams, R-Layton, both said that the state has to aggressively pursue next generation nuclear technology if it is going to cut carbon emissions and meet energy demands. 'We want this to come to Utah,' Curtis, now Utah's junior senator, said at the time. 'We want to be a big part of this. We're ready for nuclear facilities here in our state, and we have communities who would welcome that. We have a lot of people in traditional energy sources that this would be very beneficial to them, and we're excited about that.'
Yahoo
28-01-2025
- Business
- Yahoo
A plan for Utah nuclear energy industry's foundation is taking shape
The Capitol in Salt Lake City is pictured on Tuesday, Jan. 21, 2025. (Photo by Spenser Heaps for Utah News Dispatch) Can Utah become the energy capital of the country? The Legislature is willing to explore that, aiming to become pioneers in nuclear energy developments, creating a set of governing bodies that are expected to oversee energy development zones and, overall, setting a foundation for the future of nuclear power in Utah. HB249, or Nuclear Power Amendments, a big bill sponsored by Rep. Carl Albretch, R-Richfield, creates the Nuclear Energy Consortium and the Utah Energy Council, which would lead the way to designate energy development zones throughout the state. The House Public Utilities and Energy Committee voted unanimously to recommend the bill for the full House's consideration. It may take awhile before nuclear energy is powering electricity-hungry data centers across the state. But, Albrecht said on Monday, this is a starter for the nuclear industry in the state — and other resources in Utah's energy mix. SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX 'Anybody that knows anything about energy will tell you that unless the new administration on the federal level loosens up regulation for nuclear, we're still 10, 12-plus years down the road to have a fully operating nuclear plant in the state of Utah,' he said. 'However, there are SMRs that have been developed, small modular reactors. They can be put on the back of a truck as big as this room and placed somewhere.' In line with Republican leadership's main goals for this legislative session to allow the construction of small nuclear reactors in Utah, the council would oversee site identification — including state lands — permitting, financial plans for the projects, and other strategies for energy development. During the committee hearing Albrecht praised nuclear power as being clean and plentiful. And while most data centers have expressed a desire to have 'green-washed' power, as he described it, meaning mostly wind and solar, those resources are intermittent. 'I think we need to be on the cutting edge in the state of Utah, as we are on a lot of things, and start down this nuclear path,' he said. But, some Utahns, looking at a long history of nuclear disasters, remained skeptical of the state's plans. The bill has 25 pages, which Albrecht said is oddly long for him. However, there are many moving parts in it. The Utah Energy Council, for example, will have appointees from legislative leadership, the governor's office and the Office of Energy Development. With this bill, the state is also expected to work alongside counties, cities and towns in the process of establishing 'energy development zones.' These areas will only go to the municipalities that want and approve them, Albrecht said, and will be evaluated according to their suitability in hosting energy infrastructure projects, which includes factors such as access to energy resources and proximity to existing transmission lines. Nuclear development and electricity rates to dominate energy discussion this legislative session The legislation calls for public incentives restrictions to avoid 'pitting one county against the other in a bidding process.' Tax increment from the energy zones will be allocated to the Energy Development Investment Fund for the council to administer for energy infrastructure development. But, the council is required to consult with municipalities to determine a tax sharing plan. The fund can also be used to match funds from federal grants, Albrecht said, which lawmakers are already counting on. 'If the Trump administration decides we're going to move forward on energy and 'drill, baby, drill,' then there probably will be some federal energy grants,' he said. If the bill passes, there would also be an energy research boost, since Utah would also form a research board with representatives from The University of Utah, Utah State University, the Commissioner of Higher Education, and the Idaho National Laboratory, among others. The committee's public comment period saw a mix of approval and concern over the unintended consequences of hosting a nuclear reactor. The bill has the support of the executive branch, some officials said on Monday. It's building momentum and advancing on past state efforts, such as the San Rafael Energy Lab, Joel Ferry, executive director of the Utah Department of Natural Resources, told the committee. But, the bill was also presented during the National Day of Remembrance for American Downwinders, which commemorates those who died from cancer or other diseases caused by nuclear radiation exposure from U.S. weapons testing, a big reminder of what could go wrong if the resources are mishandled. Sen. Hawley blasts rumors of expanding payments for Utah downwinders only 'The government representatives had so much enthusiasm for the very legitimate positive benefits of nuclear that they failed to grasp and account for the very severe dangers associated with it,' Mike Maxwell, who identified himself as a former employee of a nuclear power producer, said. 'Nuclear energy is powerful; it can also be incredibly dangerous to all the living things on this planet.' Maxwell asked lawmakers to keep working on the bill, since it lacks an oversight process for health and environmental issues in the application of energy zones. Ava Curtis, who's pursuing a career in environmental studies, said that while she understands the need to opt for low-carbon energy sources, her family's health history is a constant reminder of why she believes nuclear isn't the way to go. 'My mom worked at the uranium labs. She used to look out the window of her office to see the river below her office glowing, something her boss told her happens all the time and with no cause for concern,' she said. 'Cancer and genetic disorders are incredibly high in the community, including in my own family.' She urged that those who have been the most impacted by nuclear energy have a voice in the energy council, including indigenous communities that have been at the center of the uranium industry. Albrecht, however, defended his bill, arguing that nuclear electricity generation is different from what caused those health problems throughout history. 'Our cemeteries are full of people who were affected by the downwind, but that was the government lying to us, as somebody said, and that was caused by above-ground test blasts,' he said. 'It was not caused by the generation of electric power.' The technology keeps improving, Albrecht said, getting to a point where it's safer and waste could be processed again. The bill is still a work in progress and 'probably does need some work on health and safety,' but it's a start, he said. Now, how much will it cost? 'There'll be some great shock,' Albrecht said about the price. 'But this will not be a plant tomorrow or the next day or the next year. This plant generation is going to be 10, 15 years down the road, and hopefully technology improves and we regenerate power with zero carbon.' SUPPORT: YOU MAKE OUR WORK POSSIBLE
Yahoo
28-01-2025
- Business
- Yahoo
Will Utah become a nuclear powerhouse some day?
A legislative bill to establish the Utah Energy Council, energy development zones and a nuclear energy consortium unanimously passed Monday out of the House Public Utilities and Energy Committee. The bill, HB249 by Rep. Carl Albrecht, R-Richfield, aims to position Utah as a player in energy innovation and foster plans for the future for microreactors or small modular reactor technology. 'We've got to start somewhere,' Albrecht told the committee. 'This will not be a plant tomorrow or the next day or the next year. This plant generation is going to be 10 to 15 years down the road, and hopefully technology improves and we generate power with zero carbon.' Utah has been identified by the IdIdaho National Laboratory as a 'first mover' state in the arena of advanced nuclear technology deployment — just one of a handful. That designation means Utah, with its research universities and all of the above energy approach is an ideal candidate to deploy nuclear to not only tamp emissions but to aid in economic development. The Frontiers Project has been working closely with Utah's congressional delegation and state representatives, as well as Utah's office of Energy Development. The state Legislature is serious about using that advantage and has taken out the notebooks and done some research. Lawmakers toured the facility west of Idaho Falls and also made a trip to the White Mesa processing mill in San Juan County. Albrecht was blunt when it came to meeting Utah's future energy needs, asserting multiple data centers want to locate here but Rocky Mountain Power lacks the capacity to meet their demand. Their solution is to get natural gas plants up and running to power their facilities, but in the long run, Albrecht said nuclear has to be part of the equation. 'So as you well know, energy production and security and reliability is a statewide issue. Utah is trying to get ahead of this. As you well know, we've got a lot of data centers that want to come to Utah. We're talking anywhere from 50 megawatts on up to 500 megawatts of power.' Albrecht conceded the bill has a lot of moving parts and is a work in progress but he was adamant. 'We have to start somewhere.' He surmised it will be tweaked and changed and evolve over the years, likely long after he has left the legislature. 'Politicians are like diapers. They need to be changed once in awhile.' He also conceded the failure of the NuScale small modular reactor planned at Idaho National Laboratory but later shelved due to costs for ratepayers of participating cities and districts. He received support, however, from the Utah Associated Municipal Power Systems which pursued the Carbon Free Power Project. 'Through the process of this, of our development of the project, we realized a number of the commercial considerations related to developing new nuclear in the state,' said Michael Suarez, government affairs director for UAMPS. 'You know at UAMPS we had many municipalities lead out on this issue. You know that with Utah's pioneering spirit, we can get this done, and we can get anything done as Utahns if we're collaborating and working together. ' The bill received other praise. 'We can move forward with a stronger, more reliable and sustainable energy future, specifically on nuclear. The nuclear consortium is created here will give us a leg up, bringing together the best minds. This bill is how Utah goes nuclear,' said Joel Ferry, executive director of the Utah Department of Natural Resources which oversees the state's energy development office. Several critics, however, brought up health and safety concerns, recalling the fate of 'Utah downwinders' who suffered and died from above ground nuclear testing in Nevada. Ava Curtis gave a detailed presentation about the rampage cancer has caused in her family and the serious danger posed by exposure to nuclear radiation. 'What I'm asking from the members of this committee is to take the time to fully understand the risks of nuclear energy and to make sure that those who have been impacted by nuclear energy are voiced in this new committee, this new group that's studying this, including members of the mountain Ute tribe from white Mesa who are affected, members of the Navajo Nation, and those who've been impacted by nuclear energy and uranium refinement, such as my own family. Our voices should be heard when making energy decisions for a community.' Albrecht had his own story to tell, sympathizing with her about uranium mining during the Cold War era when his family worked in the uranium mines. 'I'm pretty close to nuclear and uranium because during the '50s and '60s, my dad had uranium mines on the San Rafael Swell. I was just a little, but I can remember going down to those mines. I had two brothers working in them, and some other relatives and people who worked for my dad, and he shipped that uranium, which was low grade uranium, to Grand Junction, Shiprock, and sold it to the U.S. government to build bombs with to end the Cold War,' Albrecht said. 'I had a brother die from cancer. Now I don't know if that was from working in the uranium mine, hauling the uranium in a truck, or from downwinders, and nobody will know to this day, but the cemeteries in southern Utah has already been alluded and they are full of people who died from cancer, all forms of cancer, because the government lied to us when they did the testing in Nevada. But we have comes a long way since then.' Utah, he added, needs to be positioned to take the leap if nuclear promises carbon free power, safety and reliability. This he stressed, is a first exploratory step.
