Read the full stored bill text
HB2341 - 572R - H Ver
House Engrossed
line siting; factors;
offtakers
State of Arizona
House of Representatives
Fifty-seventh Legislature
Second Regular Session
2026
HOUSE BILL 2341
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 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. The SPECULATIVENESS of the
proposed transmission line or plant as identified by the existence of known
offtakers.� For the purposes of this paragraph:
(
a
) "Known
offtakers" means
:
(
i
) For a
proposed transmission line, specific, identified buyers that have entered into
legally binding, long-term contracts to purchase a portion of
the future output of any electric generating unit that is related to
or will be interconnected with the proposed transmission line.
(
ii
) For a
proposed plant, specific, identified buyers that have entered into legally
binding, long-term contracts to purchase a portion of the plant's future
output.
(
b
) "Speculativeness"
means the level of risk or uncertainty that is associated with
the proposed transmission line's or plant's financial success.
(
c
) If the
applicant for the proposed transmission line or plant is a public service
corporation or public power entity doing business in this state, the public
service corporation's or public power entity's customers shall serve as the
existence of known offtakers, the identification of specific buyers and legally
binding long-term contracts are not required and the proposed
transmission line or plant may not be deemed speculative.
9.
10.
Any
additional factors that require consideration under applicable federal and
state laws pertaining to any such site.
B. 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. 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. 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
an
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