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ARIZONA STATE SENATE
Fifty-Seventh Legislature, Second Regular Session
corporation commission; small modular reactors
Purpose
Allows a utility, after providing 30 days written notice to the Arizona Corporation Commission (ACC), to construct a small modular reactor (SMR) in Arizona without filing an application or receiving a certificate of environmental compatibility if the new SMR is co-located with a large industrial energy user.
Background
Any utility that plans to construct a plant, transmission line or both in Arizona must first file with the ACC an application for a certificate of environmental compatibility. The application must be in a form prescribed by the ACC and must be accompanied by information with respect to the proposed type of facilities and description of the site, including the areas of jurisdiction affected and the estimated cost of the proposed facilities and site. A utility may not construct a plant or transmission line within Arizona until it has received a certificate of environmental compatibility from the Power Plant and Line Siting Committee with respect to the proposed site, affirmed and approved by an order of the ACC which must be issued not less than 30 days or more than 60 days after the certificate of environmental compatibility is issued by the Power Plant and Line Siting Committee (A.R.S. §§ 40-360.03 and 40-360.07).
In 1969, the
Legislature adopted the Western Interstate Nuclear Compact (Compact). The
Compact states that party states of the Compact recognize that the proper
employment of scientific and technological discoveries and advances in nuclear
and related fields and direct and collateral application and adaptation of
process and techniques, properly correlated with the other resources of the
region, can assist substantially in the industrial progress of the west and the
further development of the economy of the region. The Compact also states that
it is the policy of the party states to undertake such cooperation on a
continuing basis and that it is the purpose of the Compact to provide the
instruments and framework for such a cooperative effort in nuclear and related
fields, to enhance the economy of the west and contribute to the individual and
community
well-being of the region's people (A.R.S.
§ 30-701).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Allows a utility, after providing 30 days written notice to the ACC, to construct a new SMR in Arizona without filing an application or receiving a certificate of environmental compatibility if the new SMR is co-located with a large industrial energy user.
2. Allows a utility, after providing 30 days written notice to the ACC, to replace an existing thermal electric generating unit with a replacement SMR or construct a new SMR without seeking a new certificate of environmental compatibility and without holding a hearing if the new or replacement SMR is located on or immediately adjacent to the site of a plant that previously received a certificate of environmental compatibility or that was in use or authorized before August 13, 1971.
3. Prohibits any statutorily outlined ordinance, except in a county with 500,000 people or more, from preventing, restricting or otherwise regulating the use or occupation of land or improvements for the construction and operation of an SMR, if the SMR is co-located with a large industrial energy user that received all applicable zoning entitlements.
4. Requires a new SMR to comply with all applicable federal, state and local laws and requirements.
5. Deems that the outlined regulations relating to new SMRs only apply to counties with a population of fewer than 500,000 people.
6. Requires the ACC to adopt rules to implement the outlined requirements relating to SMRs.
7. Requires the ACC's rules to include the ACC's definition for each of the following terms:
a) co-located with;
b) large industrial energy user; and
c) SMR.
8. Requires the ACC's definition for co-located with to specify one or both of the following:
a) the distance in feet or parcels between the site of a large industrial energy user and the site of an SMR; and
b) the quality or nature of the electrical interconnection between the large industrial energy user and the SMR.
9. Stipulates that the ACC's definition for large industrial energy user:
a) must specify the peak or average annual or monthly energy demand of the user that is measured in megawatts or megawatt hours; and
b) may not discriminate between different:
i. industries, sectors or end users, the owners or operators of such end users or the proposed location of end users; or
ii. end users in any other capacity beyond the use of energy demand and other electrical-related operating needs or characteristics.
10. Stipulates that the ACC's definition for SMR:
a) must establish a maximum eligible nameplate rating for each SMR;
b) may discriminate between different reactor types or classifications or reactors that include or are otherwise manufactured with certain minimum built-in safety features or redundancies, if such discrimination is reasonable and consistent with the types or classifications that are adopted or recognized by the U.S. Nuclear Regulatory Commission; and
c) may not contain a maximum eligible nameplate rating of less than 200 megawatts.
11. Requires the ACC, for the purposes of defining an SMR, to treat each separate generating unit and the nameplate rating associated with each separate generating unit as a separate SMR, consistent with the statutorily prescribed definition of plant.
12. Allows the ACC to adopt definitions for other terms the ACC deems reasonable or necessary to carry out the outlined requirements relating to SMRs.
13. Modifies the definition of plant to include each separate thermal or nonthermal electric, nuclear or hydroelectric generating unit or an SMR with a nameplate rating of 200 megawatts, rather than 100 megawatts or more for which expenditures or financial commitments for land acquisition, materials, construction or engineering exceeding $50,000 have not been made before August 13, 1971.
14. Makes technical changes.
15. Becomes effective on the general effective date.
Prepared by Senate Research
February 6, 2026
SB/NRG/hk