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HB2340 • 2026

certificate; environmental compatibility; factors

HB2340 - certificate; environmental compatibility; factors

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Ralph Heap, David Marshall, Sr.
Last action
2026-03-09
Official status
Senate second read
Effective date
Not listed

Plain English Breakdown

The official source material does not provide specific details on the enforcement of environmental standards, nor does it address potential conflicts between state regulations and local ordinances.

Certificate for Environmental Compatibility; Factors

HB2340 allows the Power Plant and Transmission Line Siting Committee to consider factors related to electric generating units when evaluating applications for proposed transmission lines.

What This Bill Does

  • Allows the committee to evaluate an application for a proposed transmission line if it relates to or will be connected with an electric generating unit.
  • Requires the committee to consider specific environmental and technical factors when reviewing applications, such as existing plans of state and local governments, noise levels, and impact on wildlife.

Who It Names or Affects

  • Utilities planning to construct power plants or transmission lines
  • The Power Plant and Transmission Line Siting Committee

Terms To Know

Certificate of Environmental Compatibility (CEC)
A document issued by the Arizona Corporation Commission that evaluates if a proposed power plant or transmission line is environmentally sound.
Power Plant and Transmission Line Siting Committee
The committee responsible for evaluating applications related to new power plants and transmission lines in Arizona.

Limits and Unknowns

  • Does not specify the effective date of the bill.
  • Does not provide details on how compliance with environmental standards will be enforced.
  • Does not address potential conflicts between state regulations and local ordinances.

Bill History

  1. 2026-03-09 Senate

    Senate second read

  2. 2026-03-05 Senate

    Senate Rules: None

  3. 2026-03-05 Senate

    Senate Natural Resources: None

  4. 2026-03-05 Senate

    Senate first read

  5. 2026-02-26 Senate

    Transmitted to Senate

  6. 2026-02-25 House

    House third read passed

  7. 2026-02-24 House

    House committee of the whole

  8. 2026-02-10 House

    House minority caucus

  9. 2026-02-10 House

    House majority caucus

  10. 2026-02-09 House

    House consent calendar

  11. 2026-01-21 House

    House second read

  12. 2026-01-20 House

    House Rules: C&P

  13. 2026-01-20 House

    House Natural Resources, Energy & Water: DP

  14. 2026-01-20 House

    House first read

Official Summary Text

HB2340 - 572R - House Bill Summary

ARIZONA HOUSE OF REPRESENTATIVES

57th
Legislature, 2nd Regular Session

Majority Research Staff

House:
NREW DP 5-4-0-1

HB
2340
: certificate; environmental compatibility; factors

Sponsor:
Representative Heap, LD 10

Caucus
& COW

Overview

Allows
the Power Plant and Transmission Line Siting Committee to evaluate an
application for a proposed transmission line by considering all referenced
factors if the factors pertain to an electric generating unit that is related
to the proposed transmission line.

History

Each utility that plans to construct a plant or transmission
line, both defined by statute, in this state must first file an application for
a Certificate of Environmental Compatibility (CEC) with the Arizona Corporation
Commission which will be referred to the Chairman of the Power Plant and
Transmission Line Siting Committee (Committee).

The Committee may evaluate an application for a CEC and may
impose reasonable conditions on its issuance. The CEC's evaluation must
consider certain conditions including:

1)

existing
plans of this state, local government and private entities for other
developments in the vicinity of the proposed site;

2)

noise
emission levels and interference with communication signals; and

3)

the
total environment of the area (A.R.S. � �
40-360
,
40-360.03

and
40-360.06
).

Provisions

1.

Authorizes the
Committee to evaluate an application for a proposed transmission line if the
factors pertain to an electric generating unit that is related to or will be
interconnected with the proposed transmission line. (Sec. 1)

2.

Makes
technical and conforming changes. (Sec. 1)

3.

4.

5.

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FOOTER ---------

6.

Initials CW/HC�������������� HB
2340

7.

2/4/2026��� Page 0 Caucus
& COW

8.

9.

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FOOTER ---------

Current Bill Text

Read the full stored bill text
HB2340 - 572R - H Ver

House Engrossed

certificate;
environmental compatibility; factors

State of Arizona

House of Representatives

Fifty-seventh Legislature

Second Regular Session

2026

HOUSE BILL 2340

AN
ACT

amending section 40-360.06, arizona
revised statutes; relating to the power plant and transmission line siting
committee.

(TEXT OF BILL BEGINS ON NEXT PAGE)

Be it
enacted by the Legislature of the State of Arizona:

Section 1. Section 40-360.06, Arizona Revised
Statutes, is amended to read:

START_STATUTE
40-360.06.

Factors to be considered in issuing a certificate of
environmental compatibility

A. The committee may approve or deny an application
and may impose reasonable conditions on the issuance of a certificate of
environmental compatibility
.

and

In so doing
, the committee
shall consider the following
factors as a basis for its action with respect to the suitability of either
plant or transmission line siting plans:

1. Existing plans of this state,
a
local
government and private entities for other developments at or in the vicinity of
the proposed site.

2. Fish, wildlife and plant life and associated
forms of life on which they are dependent.

3. Noise emission levels and interference with
communication signals.

4. The proposed availability of the site to the
public for recreational purposes, consistent with safety considerations and
regulations.

5. Existing scenic areas, historic sites and
structures or archaeological sites at or in the vicinity of the proposed site.

6. The total environment of the area.

7. The technical practicability of achieving a
proposed objective and the previous experience with equipment and methods
available for achieving a proposed objective.

8. The estimated cost of the facilities and site as
proposed by the applicant and the estimated cost of the facilities and site as
recommended by the committee, recognizing that any significant increase in
costs represents a potential increase in the cost of electric energy to the
customers or the applicant.

9. Any additional factors that require consideration
under applicable federal and state laws pertaining to any such site.

B. The committee may also EVALUATE an
application for a proposed transmission line by considering all the factors
listed in subsection A of this section if the factors pertain to an electric
generating unit that is related to or will be interconnected with the proposed
transmission line.

B.

c.
The
committee shall give special consideration to the protection of areas
that are
unique because of biological wealth or because they
are habitats for rare and endangered species.

C.

d.
Notwithstanding
any other provision of this article, the committee shall require in all
certificates for facilities that the applicant comply with all applicable
nuclear radiation standards and air and water pollution control standards and
regulations
,
but shall not require either of the
following:

1. Compliance with performance standards other than
those established by the agency having primary jurisdiction over a particular
pollution source.

2. That a contractor, subcontractor, material
supplier or other person
that is
engaged in the
construction, maintenance, repair or improvement of any project subject to
approval of the commission negotiate, execute or otherwise become a party to
any project labor agreement, neutrality agreement as defined in section 34-321,
apprenticeship program participation or contribution agreement or other
agreement with employees, employees' representatives or any labor organization
as a condition of or a factor in the commission's approval of the project.�
This paragraph does not:

(a) Prohibit private parties from entering into
individual collective bargaining relationships.

(b) Regulate or interfere with activity
that is
protected by law, including the national labor
relations act
.

D.

e.
Any
certificate
that is
granted by the committee shall be
conditioned on compliance by the applicant with all applicable ordinances,
master plans and regulations of
the

this
state,
a county or an incorporated city or town, except that the committee may grant a
certificate notwithstanding any such ordinance, master plan or regulation,
exclusive of franchises, if the committee finds as a fact that compliance with
such ordinance, master plan or regulation is unreasonably restrictive and
compliance therewith is not feasible in view of technology available.
When

If
it becomes apparent to the
chairman of the committee or to the hearing officer that an issue exists with
respect to whether such an ordinance, master plan or regulation is unreasonably
restrictive and compliance therewith is not feasible in view of technology
available, the chairman or hearing officer shall promptly serve notice of such
fact by certified mail on the chief executive officer of the area of
jurisdiction affected and, notwithstanding any provision of this article to the
contrary, shall make such area of jurisdiction a party to the proceedings on
its request and shall give it an opportunity to respond on such issue.
END_STATUTE