ARIZONA HOUSE OF REPRESENTATIVES

57th Legislature, 2nd Regular Session

Majority Research Staff

House: NREW DPA 6-3-0-1

☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note

HB 2341: line siting; factors; offtakers

Sponsor: Representative Heap, LD 10

Caucus & COW

Overview

Expands determining factors for issuing a Certificate of Environmental Compatibility (CEC) to include the speculativeness of the proposed transmission line or plant as identified by the existence of known offtakers.

History

Each utility that plans to construct a plant or transmission line, both defined by statute, in this state must first file an application for a CEC with the Arizona Corporation Commission which will be referred to the Chairman of the Power Plant and Transmission Line Siting Committee (Committee). The Committee may evaluate an application for a CEC and may impose reasonable conditions on its issuance. The CEC's evaluation must consider certain conditions including:

1)   existing plans of this state, local government and private entities for other developments in the vicinity of the proposed site;

2)   noise emission levels and interference with communication signals; and

3)   the total environment of the area (A.R.S. §§ 40-360, 40-360.03 and 40-360.06).

Provisions

1.   Adds the speculativeness of the proposed transmission line or plant as identified by the existence of known offtakers as a factor for considering applications for a CEC regarding the suitability of a plant or transmission line siting plan. (Sec. 1)

2.   Defines known offtakers as specific, identified buyers that have entered into legally binding, long-term contracts to purchase a substantial portion of a project's future output. (Sec. 1)

3.   Defines speculativeness as the level of risk or uncertainty that is associated with a project's financial success. (Sec. 1)

4.   Makes technical and conforming changes. (Sec. 1)

Amendments

Committee on Natural Resources, Energy & Water

1.   Specifies identified buyers under known offtakers:

a.   for a proposed transmission line, as a buyer contracted to purchase a portion of the future output of any electrical generating unit that is related to or will be interconnected with the proposed transmission line; and

b.   for a proposed plant, specific, identified buyers that have entered into legally binding, long-term contracts to purchase a portion of the plant's future output.

2.   Stipulates that speculativeness is to apply to the proposed transmission line's or plant's financial success.

3.   States that an applicant who is a public service corporation or public power entity doing business in this state:

a.   will consider the public service corporation's or public power entity's customers as known offtakers;

b.   is exempt from requiring the identification of specific buyers and legally binding long-term contracts; and

c. cannot consider a proposed transmission line or plan as speculative.

4.   Makes technical and conforming changes.

 

 

 

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Initials CW/HC                     HB 2341

2/18/2026        Page 0 Caucus & COW

 

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