Salt Lake Chamber unveils vision for Utah’s energy future

Estimated read time: 5-6 minutes

SALT LAKE CITY — Utah has ambitions to become the nation’s leader in energy transition and it plans to enlist the help of the state’s business community along the way.

The Salt Lake Chamber, Kem C. Gardner Policy Institute and energy producers on Wednesday released a business vision for the state’s energy future — one that places Utah at the center of the nation’s energy transition while also prioritizing a low-carbon (and low-cost) energy future in the face of unprecedented population growth.

“Because Utah’s growing at a remarkable rate, we have increasing energy demands. At the same time that the demands for energy are increasing, we see the demand for more sustainable, greener energy increasing — and rightfully so,” said Derek Miller, president and CEO of the Salt Lake Chamber.

The “Business Vision” is the outcome of 11 focus groups with college and university students, members of the Utah Legislature, and business representatives from the following sectors: agriculture and food, banking, energy and minerals, health care, hospitality and tourism, real estate and construction, technology and transportation.

The focus group discussions were on how Utah’s transitioning energy industry will affect various Utah business sectors.

Business in the energy future

So, what role does the business community play in Utah accomplishing its vision for the energy future? Miller said it’s an “important” one.

Scott Anderson, president and CEO of Zions Bank, said it’s clear that Utahns want their elected officials to address issues such as water conservation, air quality and economic prosperity. With this in mind, he’s noticed a problem regarding climate discussions.

“Most of the climate discussions today have been with government officials and regulatory agencies alone, and the voice of business has been largely absent from these proceedings,” Anderson said. “But business needs to be on the table. Businesses must be involved in the discussions and drafting of policies.”

Businesses must be involved in the discussions and drafting of policies.

–Scott Anderson, Zions Bank president and CEO

The report, prepared by the Salt Lake Chamber with assistance from the Kem C. Gardner Policy Institute and energy producers, said the transition should be “market-driven,” “pragmatic” and emphasize incentives for businesses instead of top-down, governmental regulations to “catalyze the transition.”

An example of this is Utah offering a tax credit for renewable energy generating systems for residential and commercial installations.

From 2015 to 2019, more than 25,000 residential tax credits for solar photovoltaic systems were issued, according to the report.

“To my knowledge, we are the only state in the nation right now who’s releasing a plan that’s been guided by the business community but with consultation from stakeholders and government officials and regulatory agencies that builds a bridge to a sustainable energy future,” Anderson said.

Utah’s ‘unique position’

The report paints a picture that shows Utah as being in a “unique position” to lead the nation’s energy transition.

But how?

The state has “many advantages” that will help it lead when it comes to energy, environmental and economic progress, the report says. One of the most significant advantages is its diverse energy portfolio, which includes supplies of oil and gas, coal, wind, solar, geothermal, renewable natural gas, hydrogen and more.

Additionally, Utah leads the Intermountain West in refining capacity with its five refineries currently running at 90% capacity or greater.

Perhaps more significant is the fact that Utah’s refineries are also producing Tier 3 motor fuels, a cleaner alternative that reduces vehicle emissions by 80% when used in Tier 3 vehicles.

The Salt Lake Chamber, with assistance from the @KemGardnerInst and @rrpartners, has released a business vision for the state’s energy future.

Report shows Utah is poised to be an innovative leader as energy demands grow and change.https://t.co/TAQBqgcZpg#utahenergyfuture

— Salt Lake Chamber (@saltlakechamber) October 12, 2022

“In Utah’s energy transition to lower carbon fuels, Utah refiners may consider production of sustainable aviation fuels and renewable diesel,” the report says. “These two fuels merit consideration because Salt Lake City is both an aviation hub and an inland port.”

Over the next decade, three coal-fired power plants in Utah will close, increasing the need for renewable energy production.

As of 2019, traditional energy resources such as coal, natural gas and crude oil make up more than 94% of Utah’s total energy production.

Among the renewable energy initiatives listed in the report is the Utah Associated Municipal Power Systems nuclear plant in Idaho and a PacifiCorp nuclear plant in Wyoming that will collectively generate 800 megawatts to serve Utah consumers.

Additionally, the Intermountain Power Plant will switch fuel in 2025 from 100% coal to a 30% green hydrogen and 70% natural gas mix, generating 840 megawatts with eventual plans to convert to 100% hydrogen.

In response to the impending doom of fossil fuels and other traditional energy resources, the state has four “major renewable/low-carbon energy projects on the horizon,” the report says.

The reality is that we stand at an inflection point — one that requires bold leadership around our energy future. What we are proposing is a vision that protects our climate and our environment and a vision that is built around a concerted effort.

–Derek Miller, Salt Lake Chamber president and CEO

“Today, we have a challenge before us to continue to provide safe, reliable and affordable power as well as increasingly clean, or green power,” said Gary Hoogeveen, president and CEO of Rocky Mountain Power. “We expect to rise to this challenge together.”

Hoogeveen said Rocky Mountain Power is currently building a $2 billion transmission line running from eastern Wyoming to central Utah.

“We’re doing all of this for our customers to maintain low-cost, reliable and affordable electricity,” Hoogeveen said.

Rocky Mountain Power is also building the world’s first advanced nuclear plant in Kemmerer, Wyoming, Hoogeveen said.

“We expect that to be online in 2029, maybe 2030 depending on timescales for projects. That power will be 100% carbon-free and it will be dispatchable and baseload,” Hoogeveen said. “That’s the piece that fills in that last bit between building as much wind and solar as you can and having done something that’s dispatchable and reliable in the end.”

After the announcement, Utah Clean Energy responded, signaling its approval of the vision.

“Utah Clean Energy appreciates the work of the Salt Lake Chamber to make addressing the changing climate and air quality a central theme of the chamber’s energy strategy. An energy transition that is well-planned, rapid, and affordable is essential to reducing climate risk and embracing the opportunities for Utah from the new energy economy. We look forward to working with Utah’s business community and Utah policymakers to realize this vision,” said Josh Craft, government and corporate relations manager at Utah Clean Energy.

Miller said he sees the vision as an opportunity.

“The reality is that we stand at an inflection point — one that requires bold leadership around our energy future,” Miller said. “What we are proposing is a vision that protects our climate and our environment and a vision that is built around a concerted effort.

“This is one outcome we cannot leave to chance,” he said.

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