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ARIZONA HOUSE OF REPRESENTATIVES57th Legislature, 2nd Regular Session |
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HB 2781: decommissioning; solar energy; standards; fund
Sponsor: Representative Carter N, LD 15
Committee on Natural Resources, Energy & Water
Overview
Authorizes a municipality or county to adopt regulations and requirements for a solar energy power plant (Plant). Establishes the Solar Energy Power Plant Site Remediation Fund (Fund) and conditions and procedures for the decommission and restoration of solar energy power plants and sites.
History
The Arizona Power Authority (APA) manages the allocation of hydroelectric power from the Hoover Dam and serves as an informational resource on electricity utilization. APA cooperates with federal, state and non-governmental agencies to address regulatory and environmental matters that impact electric and water uses of the Colorado River. Currently, APA administers the Arizona Power Authority Fund, the Hoover Uprating Fund and the Interest Income Fund.
The Arizona Corporation Commission (ACC) ensures safe, reliable and affordable utility services. ACC is comprised of eight divisions, including the Utilities Division, which has jurisdiction over the quality of service and rates charged by public service utilities. The Utilities Division responsibilities include researching and developing utility issues and providing information and evidence in ACC proceedings dealing with utility applications.
According to the U.S. Department of Energy, solar technologies convert sunlight into electrical energy through photovoltaic panels or through mirrors that concentrate solar radiation. This energy may be used to generate electricity or may be stored in batteries or thermal storage (ACC)(DOE)(JLBC).
Provisions
1. Allows a municipality or county to adopt zoning standards, site specific conditions and permitting requirements or procedures for a Plant. (Sec. 1)
2. Requires an applicant for a Plant to comply with regulations set by a municipality or county. (Sec. 1)
3. Prohibits the transfer of a Plant or special use permit or sale of the entity owning the Plant without written acceptance by the transferee of the transferor's obligations. (Sec. 1)
4. Stipulates that transfer or sale does not eliminate liability or responsibility of any party. (Sec. 1)
5. Authorizes a municipality or county to reassess the amount of financial assurance required for the Plant project and to have the owner or operator reimburse the municipality or county for any reasonable cost incurred. (Sec. 1)
6. Instructs an owner or operator to remedy damage or permit condition violations within 90 days of written notice from the municipality or county. (Sec. 1)
7. Mandates an applicant or its successors to remove a Plant that is nonfunctional for one continuous year at its own expense with no further action by the municipality or county. (Sec. 1)
8. Allows a municipality or county to provide exceptions for removal or restoration when deemed necessary. (Sec. 1)
9. Requires a Plant owner or operator to provide a municipality or county with a Plant site decommissioning and restoration plan including certain information. (Sec. 1)
10. Outlines Plant removal requirements. (Sec. 1)
11. Lists Plant site restoration conditions. (Sec. 1)
12. Prescribes steps and conditions for the confirmation of removal and remediation, including that the:
a. owner or operator must notify the municipality or county within 30 days after completion; and
b. municipality or county must provide certification to the owner or operator within 30 days after the municipality or county receives notice of completion. (Sec. 1)
13. Instructs an owner or operator, beginning on a date specified by a municipality or county, to maintain financial assurance equal to the cost determined by the municipality or county of decommissioning and restoration. (Sec. 1)
14. Requires an owner or operator to update the cost estimate to account for decommissioning, restoration and equipment value every 10 years. (Sec. 1)
15. Establishes the Fund and the APA Executive Director as its administrator. (Sec. 1)
16. Instructs the municipality or county to deposit any monies collected from a Plant into the Fund. (Sec. 1)
17. Allows the municipality or county to use monies in the Fund for costs associated with decommissioning and remediation of a Plant site. (Sec. 1)
18. Requires a Plant owner who sells the Plant to a public service corporation regulated by the ACC to provide notice of sale to the municipality or county. (Sec. 1)
19. Instructs the county or municipality to except the requirements of the section regarding financial assurance within 15 days of receiving notice of sale of a Plant sold to a public service corporation regulated by the ACC. (Sec. 1)
20. Requires a Plant owner or operator to maintain an insurance policy that includes coverage of reasonable liability of the municipality or county regarding maintenance and construction. (Sec. 1)
21. Stipulates a Plant owner or operator must inform the municipality or county of any updates in insurance. (Sec. 1)
22. Adds an applicability clause. (Sec. 1)
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26. Initials CW/HC HB 2781
27. 2/11/2026 Page 0 Natural Resources, Energy & Water
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