Leaders announce commitment to improve refining and protect water, fuel resources
In an effort to boost the state’s fuel supply and water resources and reduce the state gas tax, state leaders and industry partners came together Feb. 23 at the Utah Capitol to sign agreements that would streamline the process.
The state is also working with Idaho to find ways to provide a sustainable water supply on the Bear River system.
“We’re at a critical crossroads in Utah’s energy and water future and we are choosing an abundance mindset over managing scarcity,” Gov. Spencer J. Cox said at the agreement press conference. “An abundance mindset means innovation, investment in technology and investment in people.”
It is the cornerstone of Operation Gigawatt, said Cox. “Our ambitious plan to double Utah’s power production over the next few years. It means working together with industry partners to find shared solutions. Today we’re excited to announce a partnership with the petroleum industry that will help ensure affordable fuel for Utahns and will increase production and benefit our neighbors who rely on Utah’s oil and gas industry to meet their needs.”
Cox said the state’s industry partners have committed to the goal of increasing refinery production by 23,500 barrels per day within the next five years. “We are investing in refinery capacity and expanding upgrades to ensure Utah grown energy stays right here in Utah. We’re investing in fuel storage developments to increase our seasonal supply and support our residents during peak demand.”
Cox also announced a commitment with Idaho to collaborate on the future of the Bear River water system. “This agreement reaffirms our commitment to the Bear River Compact and Bear River Settlement Agreements.”
Infrastructure and sound policy are truly the path to affordable prices, he said. “We are supporting pipelines and basin infrastructure to increase local fuel supply and production capacity at our refineries.”
“Nearly a year ago, we started out with one clear goal and that was reducing gas prices at the pump for Utahns,” said House Speaker Mike Shultz, R-Hooper. “When gas prices go up, everything goes up. Groceries cost more, running a small business costs more, driving your kids to and from school, from practice, from church. It all costs more and Utah families are feeling that pressure.”
Gas prices are driven by supply and demand, said Shultz. “If we want lower prices, we have to increase supply. It is simple economics.”
Utah is taking action, he said. “We’re increasing the supply of the state through expanded production right here at the refineries, to working to bring in new pipelines here to the state of Utah and strategic storage investments that allow our refineries to operate at a full capacity year-round, bringing millions and millions of additional gallons of gasoline into our market every day.”
Families don’t just live in the long term, Shultz said. “They live here and now. That’s why we’re also providing immediate relief at the pump. Beginning July 1, Utah’s gas tax will be reduced by 15 percent, putting money back into the pockets of hard-working Utahns every time they fill up.”
“Just like we talked about energy, that’s only half of the equation,” said Joel Ferry, executive director of the Utah Department of Natural Resources. “Just like we must secure our fuel, the fuel that moves our economy, we also must secure the water that sustains our lives. Water, like energy, doesn’t recognize state boundaries.”
It doesn’t recognize that when it crosses that line, it’s in a different state, he said. “Today we’re proving the boundaries are not barriers to solutions. So I want to talk about the kind of agreement that we’ve reached with Idaho. Two neighbors — two joined-at-the-hip states — to stop reacting to the Bear River challenges and start managing its future together.”
Utah is reaffirming its commitment to the Bear River Compact, Ferry said. “If you rely on the Bear River today, this agreement is designed to protect your water security for tomorrow. We’re doubling down on our joint investment in things like cloud seeding.”
This is all about the abundance mindset, he said — “using technology to actually increase the amount of water available to agriculture, to municipal and industry users.”
Whether it’s the flow of fuel through the refineries or the flow of water down the Bear River, Utah is choosing to lead, said Ferry. “So I want to give a big shout-out to our partners in Idaho as well, because they’re thinking outside the box to help us come up with creative solutions and help us navigate through some of these challenges. By creating bold and innovative solutions with the petroleum industry and our neighbors in Idaho, we are ensuring Utah remains the best place to live, work and raise a family.”