By Brian Somers, Utah Mining Association, President
“Unprecedented” is a word that got a real workout in 2020, but the COVID pandemic truly created unprecedented challenges to public health, the world economy, and, of course, the mining industry. Since the beginning of the pandemic, the Utah Mining Association (UMA) has worked tirelessly to provide input and guidance to various government COVID response committees, advocate for critical infrastructure industry designations and exemptions, advocate for royalty and other financial relief, ensure public health, safety, and testing protocols were consistent and appropriate for heavy industry operations, and much, much more.
The Utah Legislature was called into six special sessions in 2020 to respond to the pandemic, and UMA represented the industry at each one. UMA was also able to get two industry-specific COVID-19 relief bills passed during the special sessions of the Legislature:
- A “regulatory certainty” bill that paused nearly all new rulemakings and fee increases from the Division of Oil, Gas, and Mining, the Division of Air Quality, and the Division of Water Quality until July 2021 in order to allow mine operators to focus on the recovery of their businesses
- A bill which created a $5 million Oil, Gas, and Mining Grant Program to provide direct assistance to small operators and service companies in the extractive industries to offset COVID -related financial losses
UMA also adapted its education and outreach programs in response to the pandemic. UMA hosted Mining Ambassador presentations via Zoom, recorded videos on mining and mineral education topics that teachers and students could access via UMA’s YouTube channel, and adjusted curricula, worksheets, and activity packets to be more easily downloadable and printable remotely.
Advocating for sound public policies which support continued investment in Utah’s mining industry is one of the primary responsibilities of the Utah Mining Association (UMA). During the recently completed 2021 general session of the Utah Legislature, UMA provided full-time representation for the mining industry, tracking and responding to every bill that might have had any potential impact on our member companies.
This year’s session was a bit more challenging given COVID restrictions which limited in-person interactions at the State Capitol. However, during the 45-day legislative session, legislators still passed a $23.45 billion state budget, introduced and debated 774 bills, and ultimately passed 502 of them.
I ended the session with 164 bills on my personal bill tracker, and 97 bills on UMA’s official member bill tracker. The UMA Legislative Committee took public positions on 41 of those bills. All 12 of the bills with a “high-profile support” position from UMA passed and have been signed into law. UMA worked vigorously to defeat bills with a “high-profile oppose” position, and seven of the eight of those bills were defeated. For bills with a “low-profile support position,” 14 passed and four did not, and all three of the bills with a “low-profile oppose” position were defeated.
So, despite the obstacles COVID presented to normal lobbying activities, UMA still had an exceptionally productive session.
UMA also continues to increase its visibility amongst legislators and other stakeholders. This session, I was able to give formal presentations on current issues relevant to the mining industry to the House Majority Caucus, Rural Caucus, Yellowcake Caucus, and various associations of local governments and chambers of commerce.
Here are some of the important bills UMA supported during the session:
Senate Concurrent Resolution 008 – Concurrent Resolution Supporting Utah’s Natural Resources and Energy Industries – Sen. David Hinkins, sponsor
SCR008 recites the innumerable benefits which accrue to the state as a result of its highly developed natural resources and energy industries. It also puts the Legislature and Governor on record calling on the federal government to follow its obligations under the Mineral Leasing Act and Federal Land Policy and Management Act, to consult with the state on federal actions which could impact the state, and asserting Utah’s rights to economic and energy self-determination.
Senate Bill 133 – Severance Tax Revenue Amendments – Sen. David Hinkins, sponsor
SB133 will set aside a small percentage of the severance taxes that oil, gas, and mining companies pay into new restricted accounts that will be used to fund regulatory and other support activities for the oil, gas, and mining industries by the Division of Oil, Gas, and Mining, the Utah 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 misperception and tie division budgets directly to industry revenues, which also provides a useful market signal.
UMA also continues to increase its visibility amongst legislators and other stakeholders.
House Bill 356 – Rural Economic Development 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 storage. 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 carbon 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 government 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 important 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.
