ARIZONA HOUSE OF REPRESENTATIVES

Fifty-sixth Legislature

Second Regular Session

House: NREW DP 5-4-0-0

HB 2281: solar royalties fund; county residents

Sponsor: Representative Biasiucci, LD 30

House Engrossed

Overview

Requires each county Board of Supervisors (BOS) to establish a County Solar Royalties Fund (Fund).

History

Counties are required to adopt the standards for issuing permits for the use of certain solar energy devices. Various specifications must be met depending on if the solar energy device is used for: 1) construction with solar photovoltaic systems that are intended to connect to a utility system; or 2) solar water heating systems (A.R.S. § 11-323).

Provisions

1. Requires the BOS of each county to establish a Fund to be administered by the county treasurer. (Sec. 1)

2. States that the Fund will be funded by each owner or operator of a solar panel in that county whose solar panel:

a) is located in the relevant county; and

b) is not owned by an eligible entity or subject wholly to an exclusive power purchase agreement with an eligible entity. (Sec. 1)

3. Specifies that if a solar panel is part of a facility in which only a portion of the output is subject to a power purchase agreement with an eligible entity, then the owner or operator must calculate the number of solar panels subject wholly to a power purchase agreement by:

a) dividing the output of the solar facility subject to a power purchase agreement with an eligible entity by the total output of the solar facility; and

b) multiplying the above quotient by the total number of solar panels in the solar facility. (Sec. 1)

4. Requires the owner or operator of a solar panel to notify the county that the solar panel meets outlined requirements at least 30 days before the operational date of the solar panel. (Sec. 1)

5. Instructs, on the first of each month after the operational date of the solar panel, the owner or operator to:

a) provide the county with a written report that indicates the total kilowatt-hours generated by the solar panel and the revenues received in the preceding month from the sale of the kilowatt-hour; and

b) pay the county in which the solar panel is located 12.5% of every $1 that is received in revenues from the sale of kilowatt-hours from the solar panel. (Sec. 1)

6. Specifies the county must deposit the monies in the Fund. (Sec. 1)

7. Allows the county assessor to use 10% of Fund monies for administrative costs. (Sec. 1)

8. Requires Fund monies to be used to pay property taxes within the county. (Sec. 1)

9. Specifies that if all property taxes within the county are paid by Fund monies, the county BOS can elect to distribute any monies remaining in the Fund for:

a) funding for law enforcement or fire departments located within the county;

b) funding for road or infrastructure improvements within the county; or

c) direct payments to county residents. (Sec. 1)

10. Allows direct payments made to county residents to be made as either a single payment or installment payments. (Sec. 1)

11. Requires the county treasurer, if the county BOS elects to provide direct payments to county residents, to determine the total amount of monies available in the Fund that the county BOS has elected to disburse for direct payments and the total number of qualified individuals who live in the county. (Sec. 1)

12. Allows the county treasurer to use up to 10% of Fund monies for administrative costs. (Sec. 1)

13. Requires the county treasurer to pay to each qualified county resident an equal distribution of the total amount of Fund monies that the county BOS has elected to make available for direct payments.

14. Requires the payments to be made by check. (Sec. 1)

15. States that the requirements of the Fund do not apply to solar panels that:

a) produce power for only on-site use by a commercial or industrial user;

b) does not export power to the grid; or

c) is a rooftop solar power system, regardless of whether the system exports power to the grid. (Sec. 1)

16. Defines eligible entity as:

a) a public service corporation that is regulated by the Arizona Corporation Commission;

b) a public power entity that has service territory in Arizona; or

c) a political subdivision of Arizona that operates a federal reclamation project. (Sec. 1)

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g) HB 2281

h) Initials EB Page 0 House Engrossed

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