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ARIZONA HOUSE OF REPRESENTATIVES57th Legislature, 2nd Regular Session |
House: NREW DPA 6-4-0-0 |
HB 2781: decommissioning; solar energy; standards; fund
Sponsor: Representative Carter N, LD 15
House Engrossed
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 decommissioning standards 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. Outlines exemptions and applicability of this legislation. (Sec. 1)
4. 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)
5. Stipulates that transfer or sale does not eliminate liability or responsibility of any party. (Sec. 1)
6. Authorizes a municipality or county to assess the amount of financial assurance required for the Plant project. (Sec. 1)
7. 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)
8. Mandates an applicant or its successors to remove a Plant that is nonfunctional for one continuous year, excluding the initial construction, at its own expense with no further action by the municipality or county. (Sec. 1)
9. Allows a municipality or county to provide exceptions for removal, repowering or restoration when deemed necessary. (Sec. 1)
10. Requires a Plant owner or operator to provide a municipality or county with a Plant site decommissioning and restoration or repowering plan including certain information. (Sec. 1)
11. Outlines Plant removal requirements. (Sec. 1)
12. Lists Plant site restoration or repowering conditions. (Sec. 1)
13. 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)
14. Instructs an owner or operator, in accordance with the prescribed schedule, to maintain financial assurance equal to the cost determined by the municipality or county of decommissioning and restoration. (Sec. 1)
15. Prescribes a schedule for the initial, intermediary and final posting of decommissioning costs. (Sec. 1)
16. Requires an owner or operator to update the cost estimate to account for decommissioning, restoration and equipment value every five years. (Sec. 1)
17. Stipulates that an owner or operator is not required to provide duplicative financial assurance. (Sec. 1)
18. Outlines exemptions from financial assurance requirements. (Sec. 1)
19. Establishes the Fund and the APA Executive Director as its administrator. (Sec. 1)
20. Instructs the municipality or county to deposit any monies collected from a Plant into the Fund. (Sec. 1)
21. Allows the municipality or county to use monies in the Fund for costs associated with decommissioning and remediation of a Plant site. (Sec. 1)
22. Requires a Plant owner who sells the Plant to a public service corporation, utility or another solar energy power plant owner to provide notice of sale to the municipality or county. (Sec. 1)
23. 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)
24. Requires a successor owner or operator, after transfer of ownership, post financial assurance in an amount and form at least equal to that currently held by the municipality or county from the previous owner. (Sec. 1)
25. Prohibits a municipality or county from releasing or returning the previous owner's financial assurance until the successor owner has fully replaced the assurance value. (Sec. 1)
26. Directs the successor owner to assume the decommissioning schedule if the transferor on completion of the replacement. (Sec. 1)
27. Requires a Plant owner or operator to maintain an insurance policy that includes coverage, with a limit of $1,000,000 per occurrence and $2,000,000 in the aggregate, of reasonable liability of the municipality or county regarding maintenance and construction. (Sec. 1)
28. Stipulates a Plant owner or operator must inform the municipality or county of any updates in insurance. (Sec. 1)
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32. Initials CW/HC HB 2781
33. 3/11/2026 Page 0 House Engrossed
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