Assigned to NR                                                                                                                       FOR COMMITTEE

 


 

 

 


ARIZONA STATE SENATE

Fifty-Seventh Legislature, Second Regular Session

 

FACT SHEET FOR H.B. 2494

 

certificate; environmental compatibility; zoning; exemption

Purpose

Prohibits counties from preventing, restricting or regulating the use of land or improvements for the construction or operation of electric generating units that have received a Certificate of Environmental Compatibility (Certificate) from the Arizona Corporation Commission (ACC) and allows utilities to replace existing plants or construct new plants adjacent to current sites without a new Certificate if outlined conditions are met.

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. 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 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 is issued by the Power Plant and Line Siting Committee (A.R.S. §§ 40-360.03 and 40-360.07).

There is no anticipated fiscal impact to the state General Fund associated with this legislation.

Provisions

1.   Prohibits a county ordinance from preventing, restricting or otherwise regulating the use or occupation of land or improvements for the construction and operation of a thermal or nonthermal electric generating unit if the owner or operator of the electric generating unit has applied for and received a Certificate for the proposed electric generating unit that is affirmed and approved by the ACC.

2.   Allows the owner or operator of a nonthermal electric generating unit to voluntarily apply for a Certificate.

3.   Allows a utility to replace an existing plant with a replacement plant or construct a new plant immediately adjacent to an existing plant without filing for or receiving a new Certificate for the new or replacement plant if:

a)   the utility provides to the commission 30 days' written notice and holds at least one public comment session in the county where the existing plant is located;

b)   the new or replacement plant is located on or immediately adjacent to the site of a plant that has previously received a Certificate or that was in use or authorized before August 13, 1971; and

c)   the aggregate nameplate rating of all plants that will be located on and immediately adjacent to the site after construction will be equal to or greater than the aggregate nameplate rating of all existing plants located on and immediately adjacent to the site before construction.

4.   Makes technical changes

5.   Becomes effective on the general effective date.

House Action

NREW            2/3/26        DP       6-4-0-0

3rd Read          2/25/26                  31-22-7

Prepared by Senate Research

March 13, 2026

SB/NRG/hk