Questions arise over Huntsman energy post

A new energy post created by Gov. Jon Huntsman Jr. does not fall within state statute, leaving questions about the authority and funding of the position, according to a legislative interim committee that met Wednesday.

The questions involve Laura Nelson, who was named Utah energy director by Huntsman in late July. Huntsman created the position within his office after legislation earlier this year eliminated the Utah Energy Office.

Rep. David Ure, R-Kamas, said he does not know whether Nelson is an adviser to the governor or works for the Governor's Office of Economic Development.

In addition, Ure said, $1.3 million in so-called "petroleum violation excise funds" that were appropriated to the governor for energy programs could be in violation of federal guidelines.

If Nelson is an adviser to the governor, Ure said, her salary should come out of the governor's administrative budget. However, if Nelson works for the department, then the Legislature has control of her budget.

"There isn't any statutory authority to back her up that she has authority to do something," Ure said. "We don't know where she is. She says that she reports directly to the governor, but if she is in the economic development department, then Chris Roybal (senior economic adviser to Huntsman) is her boss. So which is it? Let's clarify it so she doesn't have to walk a tight line."

Rep. Sheryl Allen, R-Bountiful and co-chairwoman of the Public Utilities and Technology Interim Committee, agreed with Ure that Nelson's authority is not defined.

"In my opinion that needs to be clarified in the 2006 session at the latest," Allen said. "Certainly with Utah's energy sector growth she's got to have some jurisdiction and input over that. There's no statutory authority, and we really must define that."

Kevin Knight, Huntsman's energy policy coordinator, said part of the confusion may lie in Nelson's physical office being located within the economic development department. But Knight said Nelson reports directly to the governor.

"We don't see codification as necessary for us to fulfill our function at all, because Laura is just like any other adviser to the governor," Knight said. "The governor felt that energy policy was so key to economic development that he wanted his person on energy policy to be on his staff."

Darin Underwood, a performance audit manager for the state, said as part of an audit of the office of economic development, he will examine how Nelson's office is funded. The audit is expected to be released in November.

"I haven't been able to see where in the statute (Nelson's position) was created," Underwood said. "The Legislature did appropriate funding for her salary from general funds."

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