Pub 9 2021 Issue 1

Geological Survey, the Division of Air Quality, and the Division of Water Quality. These divisions have been receiving pressure to increase fees in order to have industry “pay for itself” with regards to the cost of providing regulatory and support activities, not recognizing that industry does pay for itself through direct severance taxes to the state with tens of millions of dollars in remainder. SB133 will correct this misper- ception and tie division budgets directly to industry revenues, which also provides a useful market signal. House Bill 356 – Rural Economic Develop- ment Tax Increment Financing – Rep. Carl Albrecht, sponsor HB356 makes the state’s post-performance economic development tax credits for new capital investment and incremental job creation available to mining operations for the first time. It also makes other changes which will greatly expand eligibility in rural Utah. House Bill 388 – State Energy Policy Amendments – Rep. Carl Albrecht, sponsor HB388 updates the state’s energy policy to include the promotion of advanced energy technologies like hydrogen and pumped stor- age. It also requires the state to ensure that adequate supplies of dispatchable energy are always available to meet grid demand, which will protect both fuel suppliers and industrial power users. UMA also advocated for a number of energy bills which were problematic for the industry to be tabled or defeated (HB145, HCR5, HB123, HB263, HB89), and worked extensively to ensure that new incentives for hydrogen production in HB223 applied to all feedstocks (including coal and natural gas.) HB346, HB368, HB348 – State Agency Bills UMA supported a number of bills which make changes to state agencies in which interact with the mining industry. HB346 and HB368 place the Office of Energy Development (OED) and the Public Lands Policy Coordinating Office (PLPCO) under the Department of Natural Resources, while maintaining their direct advisory roles to the Governor. HB348 makes changes to the Governor’s Office of Economic Development (GOED). UMA advocated to insert language which will require the new state economic development commission the bill creates to consult with industry associations. Appropriations — Interstate Commerce Litigation & Economic Impact Study UMA worked with appropriators to secure $2 million for the Attorney General’s Office to file litigation regarding California’s interference with interstate commerce related to its car- bon tax on power generated from fossil fuels. UMA also worked to secure $100,000 for the Department of Natural Resources to contract with an outside analyst/economist to conduct a comprehensive study on the economic impact of Utah’s natural resources and energy industries. Although we know mining and other natural resources and energy industries are major contributors to the state’s economy, we do not have accurate data regarding GPD contributions, number of direct/indirect jobs, tax revenue estimates, etc. This economic impact study will provide that data to inform policy makers and other stakeholders. As we’ve seen from recent actions taken by other state governments and the federal gov- ernment which have had an adverse effect on the mining industry, we must always be vigilant to ensure Utah remains a great place to produce and invest. As you know, Utah’s operating environment can change dramatically with even a single piece of unfavorable legislation. You have no doubt witnessed many of the actions taken by surrounding states in the last few years — and by a new federal administration in the last few months — that have made the climate for mining more hostile. That is why UMA vows to work tirelessly on your behalf to ensure a business climate in which you can succeed and maintain your social license to operate. The strong support of UMA’s member companies enables us to aggressively and effectively promote, protect, and advance the interests of Utah's mining industry, which is key in support of the lifestyles we all enjoy. This issue of our magazine highlights some of the products that make an impact on our day-to-day lives which are a direct result of our local mining industry. We are proud of our members and the import- ant work you do. We look forward to working with you to advance the industry, recover from the disruptions of 2020, build on the successes of the 2021 legislative session, and help you prosper in the coming year. X UMA also continues to increase its visibility amongst legislators and other stakeholders. Sincerely, Brian Somers, UMA President FOCUS 7