replacement units; certificates; environmental compatibility

Plain English Breakdown

The official summary and text do not provide specific details on how public comment sessions should be conducted or who can participate.

Rules for Replacing Power Plants

HB2389 allows utilities to replace or build new power plants near existing ones without getting a new certificate of environmental compatibility under certain conditions.

What This Bill Does

• Allows a utility company to replace an old power plant with a new one nearby without needing a new certificate if the total power output stays the same or increases.
• Requires the utility to give the Arizona Corporation Commission (ACC) written notice and hold a public meeting in the county where the existing plant is located before replacing or building a new plant.
• Specifies that the replacement or new plant must be on the same site as an old plant that already has a certificate of environmental compatibility or was operating before 1971.

Who It Names or Affects

• Utility companies planning to replace or build power plants in Arizona.
• The Arizona Corporation Commission (ACC) which reviews and issues certificates for new power plants.

Terms To Know

Certificate of Environmental Compatibility

A document issued by the ACC that confirms a proposed power plant or transmission line meets environmental standards.

Aggregate nameplate rating

The total amount of electricity a group of power plants can produce at full capacity, measured in megawatts.

Limits and Unknowns

• Does not specify what happens if the conditions for replacing or building new plants are not met.
• Does not provide details on how public comment sessions should be conducted or who can participate.
• The bill does not address situations where a plant is being replaced but its total power output decreases.

Official Summary Text

HB2389 - 572R - House Bill Summary

ARIZONA HOUSE OF REPRESENTATIVES

57th
Legislature, 2nd Regular Session

Majority Research Staff

House:
APPROP DP 11-5-0-2

HB
2389
: replacement units; certificates; environmental compatibility

Sponsor:
Representative Martinez, LD 16

House
Engrossed

Overview

Authorizes
a utility to replace an existing electrical generating plant or construct a new
plant without a new certificate of environmental compatibility under certain
conditions.

History

Plant
means each separate thermal electric,
nuclear or hydroelectric generating unit with a nameplate rating of one hundred
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.

Utility
means any person engaged in the
generation or transmission of electric energy (
A.R.S. � 40-360
).

The
Arizona Corporation Commission (ACC)'s Power Plant and Transmission Line Siting
Committee has jurisdiction over proposed electrical generating plants and above
ground transmission lines that meet certain criteria. When a utility plans to
build one of these facilities it must apply for a Certificate of Environmental
Compatibility (CEC) and after review, public hearings and a vote by the
Committee the utility may be granted the CEC for their proposed facility (
A.R.S.
Title 40, Chapter 2, article 6.2
).

Provisions

1.

Allows a
utility to replace an existing plant or construct a new plant immediately
adjacent to an existing plant without a new CEC for the new or replacement
plant if:

a.

the utility
provides the ACC 30 days' written notice;

b.

holds at
least one public comment session in the county where the existing plant is
located;

c.

the new or
replacement plant is located on or immediately adjacent to the site of a plant
that:

i.

previously
received a CEC; or

ii.

was in use
or authorized before August 13, 1971;

d.

the
aggregate nameplate rating of all plants that will be located on or adjacent to
the site, after construction, will be equal to or greater than the aggregate
nameplate rating of all existing plants located on or adjacent to the site before
construction. (Sec. 1)

2.

Makes
conforming change. (Sec. 1)

3.

4.

5.

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FOOTER ---------

6.

Initials CW��������������������� HB
2389

7.

4/8/2026��� Page 0 House
Engrossed

8.

9.

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FOOTER ---------

Current Bill Text

HB2389 - 572R - H Ver

House Engrossed

replacement units;
certificates; environmental compatibility

State of Arizona

House of Representatives

Fifty-seventh Legislature

Second Regular Session

2026

HOUSE BILL 2389

AN
ACT

amending section 40-360.03, arizona
revised statutes; relating to the power plant and transmission line sitting
committee.

(TEXT OF BILL BEGINS ON NEXT PAGE)

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

Section 1. Section 40-360.03, Arizona Revised
Statutes, is amended to read:

START_STATUTE
40-360.03
.
Application
for certificate of environmental compatibility before construction of
facilities; electronic format; rules; exception

A. Except
as provided in
subsection

subsections
B

and c
of this section, every utility that plans to
construct a plant or transmission line, or both, in this state shall first file
with the commission an application for a certificate of environmental
compatibility. The application shall be in a form prescribed by the
commission and shall 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. The application shall also be accompanied by a receipt that
evidences payment of the appropriate fee required by section 40-360.09.
The commission shall promptly refer the application and accompanying
information to the chairman of the committee for the committee's review and
decision. The application and accompanying information may be
submitted to the commission in an electronic format.� The commission may adopt
rules to accept electronic filings under this section and to ensure that proper
notice is provided electronically to interested parties.

B. A utility may replace a conductor or wire on a
transmission line or may replace an existing transmission line structure or
structures with a new transmission line structure or structures without seeking
a new certificate of environmental compatibility and without holding a hearing
under this article if the replacement is on a transmission line that previously
received a certificate of environmental compatibility or that was in use or
authorized before August 13, 1971. All replacement conductors or
structures shall comply with the terms and conditions of the applicable
existing certificate of environmental compatibility.

C. A utility may 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 of
environmental compatibility for the new or replacement plant if all of the
following conditions are met:

1. The utility provides to the
commission thirty days' written notice and holds at least one public comment
session in the county where the existing plant is located.

2. The new or replacement plant is
located on or immediately adjacent to the site of a plant that has previously
received a certificate of environmental compatibility pursuant to this article
or that was in use or authorized before August 13, 1971.

3. 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.
END_STATUTE