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ARIZONA STATE SENATE
Fifty-Seventh Legislature, Second Regular Session
AMENDED
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. Requires the construction and operation of a thermal or nonthermal electric generating unit to comply with all air quality standards and with all decommissioning, site restoration, financial assurance and liability insurance requirements.
3. Allows the owner or operator of a proposed nonthermal electric generating unit that is not subject to the requirements of the Power Plant and Transmission Line Siting Committee to voluntarily apply for a Certificate, if the proposed nonthermal electric generating unit will be located on:
a) private land that is located in a county with a population between 400,001 persons and 599,999 persons; or
b) state trust lands that are located in a groundwater transportation basin.
4. Stipulates that, if the outlined private land is former state trust lands, the owner or operator of the proposed nonthermal electric generating unit must have acquired the former state trust lands at a public auction that was open to all eligible bidders from all industries and commercial land uses.
6. 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.
7. Makes technical and conforming changes
8. Becomes effective on the general effective date.
Amendments Adopted by Committee of the Whole
2. Allows the owner or operator of a proposed nonthermal electric generating unit that is not subject to the requirements of the Power Plant and Transmission Line Siting Committee to voluntarily apply for a Certificate, as outlined.
3. Stipulates that, if the outlined private land is former state trust lands, the owner or operator of the proposed nonthermal electric generating unit must have acquired the former state trust lands at a public auction that was open to all eligible bidders from all industries and commercial land uses.
4. Prohibits the Commissioner of the ASLD, if the owner or operator of the proposed nonthermal electric generating unit acquired the former state trust land at an auction as outlined, from having taken, at any point during the public auction or before the public auction, any action, including imposing any restrictions or qualifications on eligible bidders or imposing any requirements or minimums on appraisals, that had the effect of increasing the probability of a bidder from one industry or commercial land use winning the public auction instead of a bidder from another industry or commercial land use.
5. Makes technical and conforming changes.
House Action Senate Action
NREW 2/3/26 DP 6-4-0-0 NR 3/17/26 DP 4-3-1
3rd Read 2/25/26 31-22-7
Prepared by Senate Research
June 10, 2026
SB/NRG/hk