Claims vs Record disc-035
unresolvedfunding Governor: the deal would cost Utah 'virtually nothing'; the state later approved up to $106.7 million in tax credits
What was said
- Gov. Spencer Cox, as KUTV reported it (2025-05): The deal will cost the state "virtually nothing"; Utah is "just providing the space and infrastructure".Utah's new 'advanced' nuclear reactor for research, won't produce energy (Brian Mullahy) (KUTV 2News, 2025-05-28)
- Answer recorded at Emery County's April 2026 hearing (minutes) (2026-04-07): Asked what incentives the county had given Valar: "The answer is None." A commissioner added Valar had "not even asked" for a tax incentive.Emery County Commission Meeting Minutes, April 7, 2026 (public hearing on sale of parcel 04-0019-0030) (Emery County Commission (Utah Public Notice Website), 2026-04-07)
What the record shows
- On 9 July 2026 the state economic development board approved a post-performance tax credit for Valar Atomics Inc. of up to $106,737,499 (half of new state tax revenue for 10 years), paid only after the revenue comes in, and conditioned on a local incentive; the public agenda posted beforehand did not name Valar.GOED Public Board Materials, July 9, 2026 (Valar Atomics Inc. executive summary) (Board of the Governor's Office of Economic Development (Utah Public Notice Website), 2026-07-09)
- The space and infrastructure is a lab the public paid for: about $15 million in grants built and equipped it, per the county in 2022.What is the San Rafael Energy Research Center? (Scottie Kraync) (ETV News, 2022-05-11)
- The state appropriated $2,000,000 one-time to buy the lab (2024 H.B. 410 fiscal note).Fiscal Note, H.B. 410 5th Sub., Utah San Rafael State Energy Lab (2024) (Utah Office of the Legislative Fiscal Analyst, 2024-02-27)
- Emery County approved selling the lab to the state for $2,111,444.Emery County Commission Meeting Minutes, November 19, 2024 (Emery County Commission (Utah Public Notice Website), 2024-11-19)
- The terms on which Valar uses the state's lab (rent, reimbursement, restoration bond) are not public (fund-015); the state's MOU has OED provide the site, infrastructure and shared facilities.Memorandum of Understanding between the Office of Energy Development and Valar Atomics, dated May 16, 2025 (signatures omitted) (Utah Office of Energy Development, 2025-05-16)
The gap: In May 2025 the governor described the state's cost as virtually nothing beyond space and infrastructure, describing the MOU as it then stood. The record shows that the space is a publicly funded lab whose use terms are not public, and that in July 2026 the state approved up to $106.7 million in post-performance tax credits for Valar, paid only out of new state tax revenue the project generates, and conditioned on a local incentive the county said in April it had not been asked for. Whether a credit paid from new revenue is a 'cost' is a matter of definition.
In plain termsWhen the deal was announced, Utah's governor said it would cost the state 'virtually nothing,' since Utah was only providing space. That space is a research lab the public paid about $15 million to build and $2 million to buy. In July 2026 a state board approved up to $106.7 million in tax credits for Valar over ten years. Those credits are paid only out of new tax money the company generates, so they are not a check written from existing funds; reasonable people can argue whether that is a 'cost.' But the state's financial commitment grew far beyond 'space,' and the vote was taken before the public agenda named the company.
Why it matters: Taxpayers are entitled to know what the state gives in exchange; the lab-use terms remain unpublished.
What would settle it: GRAMA to the Governor's Office of Economic Opportunity for Valar's incentive application and agreement; GRAMA to the Utah Office of Energy Development for the lab-use agreement and payments; search Transparent Utah for payments to or from Valar.