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REFERENCE TITLE: electric service providers; energy reliability |
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State of Arizona House of Representatives Fifty-seventh Legislature Second Regular Session 2026
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HB 2331 |
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Introduced by Representatives Marshall: Heap
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AN ACT
amending title 30, chapter 6, arizona revised statutes, by adding article 2; amending title 40, chapter 2, article 1, arizona revised statutes, by adding section 40-207; relating to energy reliability.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Heading change
A. The chapter heading of title 30, chapter 6, Arizona Revised Statutes, is changed from "ELECTRIC ENERGY RELIABILITY" to "ENERGY RELIABILITY".
B. The article heading of title 30, chapter 6, article 1, Arizona Revised Statutes, is changed from "GENERAL PROVISIONS" to "ELECTRIC ENERGY".
Sec. 2. Title 30, chapter 6, Arizona Revised Statutes, is amended by adding article 2, to read:
ARTICLE 2. CLEAN ENERGY
30-821. Public power entities; governing bodies; clean energy; definitions
A. A public power entity shall:
1. Use a fuel source that is primarily produced domestically.
2. Minimize reliance on foreign nations for critical materials or manufacturing when delivering energy to customers.
B. If adopting a rule or regulation relating to the governing body of a public power entity's internal resource planning and procurement decisions, the governing body shall consider whether an energy resource is affordable resource energy and a reliable energy source and whether the energy that is generated is clean energy.
C. For the purposes of this section:
1. "Affordable resource energy":
(a) Means an energy resource that:
(i) Has a stable and predictable cost.
(ii) Provides a cost-effective means of heating, cooling and generating electricity.
(iii) Delivers substantial savings to homes and businesses compared to other resources based on the average cost per unit of energy output for the past five years.
(iv) Is readily available at all times.
(b) Includes energy that is generated by hydrocarbons as a resource.
2. "Clean energy":
(a) Means energy that is generated by using a reliable energy source in which the emissions are equivalent to the standards set by the North American energy standards board for pipeline quality and natural gas.
(b) Includes a reliable energy source that:
(i) Releases reduced air pollutants.
(ii) Is generated by nuclear reactors.
(iii) Is generated by using natural gas as a resource.
3. "Reliable energy source":
(a) Means an energy resource that meets all of the following criteria:
(i) Is readily available to meet energy demands at all times with minimal interruptions during high usage periods.
(ii) When used for power generation, has a minimum capacity factor of fifty percent, has electricity output that is dispatchable at all times and has the capability to ramp electricity generation up or down within one hour to stabilize the electrical grid.
(iii) Has the ability to complement and provide backup energy during periods of low availability.
(b) Includes Energy that is generated by hydrocarbons as a resource.
Sec. 3. Title 40, chapter 2, article 1, Arizona Revised Statutes, is amended by adding section 40-207, to read:
40-207. Public service corporations; clean energy; definitions
A. A public service corporation shall:
1. Use a fuel source that is primarily produced domestically.
2. Minimize reliance on foreign nations for critical materials or manufacturing when delivering energy to customers.
B. If adopting a rule or regulation relating to the public service corporation's internal resource planning and procurement decisions, the public service corporation shall consider whether an energy resource is affordable resource energy and a reliable energy source and whether the energy that is generated is clean energy.
C. For the purposes of this section:
1. "Affordable resource energy":
(a) Means an energy resource that:
(i) Has a stable and predictable cost.
(ii) Provides a cost-effective means of heating, cooling and generating electricity.
(iii) Delivers substantial savings to homes and businesses compared to other resources based on the average cost per unit of energy output for the past five years.
(iv) Is readily available at all times.
(b) Includes energy that is generated by hydrocarbons as a resource.
2. "Clean energy":
(a) Means energy that is generated by using a reliable energy source in which the emissions are equivalent to the standards set by the North American energy standards board for pipeline quality and natural gas.
(b) Includes a reliable energy source that:
(i) Releases reduced air pollutants.
(ii) Is generated by nuclear reactors.
(iii) Is generated by using natural gas as a resource.
3. "Reliable energy source":
(a) Means an energy resource that meets all of the following criteria:
(i) Is readily available to meet energy demands at all times with minimal interruptions during high usage periods.
(ii) When used for power generation, has a minimum capacity factor of fifty percent, has electricity output that is dispatchable at all times and has the capability to ramp electricity generation up or down within one hour to stabilize the electrical grid.
(iii) Has the ability to complement and provide backup energy during periods of low availability.
(b) Includes Energy that is generated by hydrocarbons as a resource.
Sec. 4. Legislative intent and findings
A. The legislature intends that this act:
1. Protect the health and safety of the public.
2. Preserve the health, convenience, comfort and safety of patrons of public service corporations in this state pursuant to article XV, section 3, Constitution of Arizona.
B. The legislature finds that:
1. Reliance on domestic fuel sources is necessary to protect the health, safety and welfare of the public.
2. Reducing reliance on foreign nations for critical materials or manufacturing is necessary to protect the health, safety and welfare of the public.