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House Engrossed
decommissioning; solar energy; standards; fund |
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State of Arizona House of Representatives Fifty-seventh Legislature Second Regular Session 2026
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HOUSE BILL 2781 |
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AN ACT
amending title 30, arizona revised statutes, by adding chapter 9; relating to solar energy power plants.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Title 30, Arizona Revised Statutes, is amended by adding chapter 9, to read:
CHAPTER 9
SOLAR ENERGY POWER PLANTS
ARTICLE 1. GENERAL PROVISIONS
30-1101. Local government; requirements; procedures; applicability
A. A city, town or county may adopt decommissioning standards for a solar energy power plant that is located in the city, town or county.
B. An applicant for a solar energy power plant shall comply with the requirements or procedures for a solar energy power plant that are adopted by the city, town or COUNTY in which the solar energy power plant is to be located.
C. This chapter does not apply to a solar energy power plant if the city, town or county in which the solar energy power plant is located has adopted a local decommissioning and site restoration standard or has approved a decommissioning plan for a facility before the commencement of the solar energy power plant's operation.
D. This chapter does not apply to a distributed energy generation system or a solar energy power plant that before the effective date of this section:
1. Was constructed or installed or in operation.
2. Has submitted or received a permit from a city, town or county.
3. Has advanced to the facilities study stage of an interconnection process.
30-1102. Transfer or sale
A. The transfer of a Solar Energy Power Plant or Special Use Permit or the sale of the entity owning the solar energy power plant may not occur without written acceptance by the transferee of the transferor's obligations under this chapter. A transfer or sale does not eliminate the liability or responsibility of an applicant or of any other party under this chapter for acts or omissions occurring before the transfer or sale.
B. For a transfer of unit ownership, the city, town or county may assess the amount of any financial assurance required under section 30-1105.
30-1103. Curing damaged or deficient plant; restoring nonfunctional or inoperative plant
A. If a part of a Solar Energy Power Plant is damaged or if a Solar Energy Power Plant violates a permit condition imposed by a city, town or county, the solar energy power plant owner or operator shall cure any damage or deficiency within ninety days after written notice from the city, town or county. If it is not reasonably possible for the solar energy power plant owner or operator to cure the damage or deficiency within ninety days after receiving the written notice, the solar energy power plant owner or operator shall provide the city, town or county with a plan to cure the damage or deficiency as soon as reasonably possible.
B. If a Solar Energy Power Plant remains nonfunctional or inoperative for a continuous period of at least one year, excluding the initial construction, the applicant or its successors or assigns, without any further action by the city, town or county, shall remove the system and restore the site at its own expense as prescribed in section 30-1104. If it is not reasonably possible for a solar energy power plant owner or operator to repower or restore the solar energy power plant to be functional or operational within one year, the solar energy power plant owner or operator shall provide the city, town or county with a plan to restore the solar energy power plant to be functional or operational as soon as reasonably possible.
30-1104. Decommissioning and site restoration
A. A solar energy power plant owner or operator shall provide a city, town or county where the solar energy power plant is located with a decommissioning and site restoration plan.
B. The Decommissioning and site restoration Plan shall state how the solar energy power plant will be decommissioned and the site will be repowered or restored and shall include all of the following:
1. An estimate of the cost of decommissioning the solar energy power plant and repowering or restoring the site, net of salvage value. An individual who is qualified to estimate decommissioning and site restoration or repowering costs and SALVAGE value for the solar energy power plant shall make the estimate. An individual is qualified to conduct the estimate pursuant to this paragraph if the individual:
(a) Is a registered professional engineer who is independent from the solar energy power plant owner and the city, town or county.
(b) as agreed to by the solar energy power plant owner and the city, town or county, has other experience in decommissioning solar energy power plants of the type in question and that experience is suitable to the solar energy power plant owner and the city, town or county.
2. The financial resources that the solar energy power plant will use to accomplish decommissioning and restoration.
3. A timeline for the decommissioning and the site restoration or repowering.
C. A solar energy power plant owner or operator shall remove a solar energy power plant and restore a solar energy power plant site as prescribed in this section unless the landowner or a city, town or county determines that a provision of this section relating to restoration is not necessary.
D. A solar energy power plant owner may petition a permitting county to amend a decommissioning plan. A county shall allow a solar energy power plant owner to amend a decommissioning plan as necessary to account for any of the following:
1. Advancements in available technology.
2. Advancements in decommissioning, salvaging or repowering processes or procedures.
3. The best interest of the city, town or county, the landowner or the solar energy power plant owner.
E. The removal of a solar energy power plant shall:
1. Include all above ground components, including Solar arrays, transformers, above ground collection cables and poles and fencing.
2. Comply with the following:
(a) Foundations and buried project components, other than buried collection lines, must be removed to a depth of at least thirty-six inches or as prescribed by the city, town or county or as negotiated with the landowner.
(b) Buried collection lines must be removed to a depth of thirty-six inches. Collection lines below a depth of thirty-six inches may remain in place.
(c) Removal activities must be completed in accordance with the timeline in the decommissioning plan.
F. The restoration of each site shall include:
1. Minimizing ground disturbance and using commercially reasonable efforts to restore the site to its original ground contours, if possible, or coordinating with the landowner to restore the site.
2. Reasonably restoring and reestablishing disturbed on-site soils and vegetation by using native seed mix and proper soil nutrients, including fertilizer and lime, if necessary, to provide and sustain growth or in coordination with the landowner to allow desired vegetation to be planted or returning the on-site soils and vegetation to their original conditions.
3. After the decommissioning of the site is complete:
(a) Restoring paved roads that existed before the PROJECt was constructed to the original condition of the paved roads.
(b) Leaving roads or other improvements in place with the landowner's consent.
4. Allowing access roads, fencing, associated drainage improvements and any other residual minor improvements to remain with the landowner's written consent.
5. Removing and remediating any hazardous materials and waste.
G. After providing reasonable notice to the property owner and project owner, the city, town or county may enter the site to effect or complete decommissioning pursuant to the Decommissioning Plan.
H. After the solar energy power plant owner or operator completes the decommissioning of a solar energy power plant and restoration of the solar energy power plant site:
1. The solar energy power plant owner or operator shall notify the city, town or county within thirty days after the date on which the owner or operator completes decommissioning and restoration.
2. The city, town or county shall certify to the solar energy power plant owner or operator that decommissioning and restoration is complete within thirty days after the date on which the city, town or county receives notice from the solar energy power plant owner or operator.
I. After the city, town or county certifies that decommissioning and restoration is complete:
1. The solar energy power plant owner or operator is released from any obligation prescribed in this chapter.
2. The city, town or county shall return or release any remaining financial assurance required under section 30-1105.
30-1105. Financial assurance
A. In accordance with the following schedule, A solar energy power plant owner or operator shall maintain financial assurance, including in the form of a bond, parent guarantee or irrevocable letter of credit, in an amount equal to the cost to decommission the solar energy power plant and restore the solar energy power plant site as prescribed in section 30-1104, net salvage value:
1. An initial posting by the current owner or operator on or before ten years after the commercial operation date of the solar energy power plant and not more than twenty-five percent of the entire decommissioning cost calculated under section 30-1104.
2. Intermediary postings occurring not less frequently than one posting every five years after the date of the initial posting.
3. A final posting on or before twenty-five years after the commercial operation date of the solar energy power plant, such that the total amount posted is equal to the entire decommissioning cost calculated under section 30-1104.
B. The solar energy power plant owner or operator shall update the cost estimate every five years to ensure an accurate estimation of costs associated with decommissioning, equipment value and site restoration, adjusted for inflation.
C. A solar energy power plant owner or operator is not required to provide duplicative financial assurance for decommissioning and site restoration. If the owner or operator has provided financial assurance for decommissioning and site restoration pursuant to a lease agreement with a landowner or in agreement with another state or federal agency or a city, town or county, the owner or operator is exempt from the financial assurance requirements as prescribed in this section to the extent that the assurance covers estimated costs that are calculated under section 30-1104.
D. The city, town or county shall deposit any monies that are collected from a solar energy power plant in the solar energy power plant site remediation fund established by section 30-1107. A city, town or county may use the monies deposited in the solar energy power plant site remediation fund for the costs associated with decommissioning and remediation of a solar energy power plant site.
E. If a solar energy power plant owner sells the solar energy power plant to a public service corporation, utility or another solar energy power plant owner, the solar energy power plant owner shall provide a notice of the sale to the city, town or county. Within fifteen days after receiving the notice, the city, town or county shall waive the requirements of this section and return or release any financial assurance provided to the city, town or county to the solar energy power plant owner. After a transfer of ownership, the successor owner or operator, as a condition of the transfer, shall post financial assurance that is in an amount and form at least equal to the financial assurance currently held by the city, town or county from the previous owner. The city, town or county may not release or return the previous owner's financial assurance until the successor owner has fully replaced the assurance value. On completion of this replacement, the successor owner shall assume the decommissioning schedule of the transferor.
30-1106. Liability insurance required
a. A solar energy power plant owner or operator shall maintain an insurance policy that includes coverage, with a limit of $1,000,000 per occurrence and $2,000,000 in the aggregate, of any reasonable liability of the city, town or county where the solar energy power plant is located related to the construction and operation of the solar energy power plant.
B. A solar energy power plant OWNER or operator shall immediately provide written notice of any change in the insurance policy described in subsection A of this section to the city, town or county where the solar energy power plant is located.
30-1107. Solar energy power plant site remediation fund; exemption
The solar energy power plant site remediation fund is established consisting of monies collected pursuant to section 30-1105. The executive director shall administer the fund. Monies in the solar energy power plant site remediation fund are continuously appropriated and are exempt from the provision of section 35-190 relating to lapsing of appropriations.