public utilities; plant construction; colocation

Plain English Breakdown

The official source does not define the term 'extra high load factor customer,' so readers must look up other state laws for that definition.

HB2457: Rules for Building Power Plants Next to Large Customers

This bill allows certain utilities in Arizona to build new large power plants without a special environmental certificate if the plant is built next to an extra high load factor customer who has zoning approval, provided public notice rules are followed.

What This Bill Does

• Creates an exception that allows some utilities to skip filing for or receiving a certificate of environmental compatibility before building a new plant.
• Requires the utility to give written notice to the Arizona Corporation Commission at least 30 days before starting construction.
• Mandates that the utility hold at least one public comment session in the county where the new plant will be located.
• Limits this exception only to plants built next to an extra high load factor customer who has received all applicable zoning entitlements.

Who It Names or Affects

• Public service corporations and public power entities doing business in Arizona.
• Extra high load factor customers whose facilities are located at the same site as the new plant construction.
• The Arizona Corporation Commission, which receives notice of these projects but does not issue a certificate for them under this exception.

Terms To Know

Certificate of environmental compatibility

A formal approval from the Power Plant and Line Siting Committee that is usually required before building large power plants or transmission lines in Arizona.

Extra high load factor customer

A specific type of electricity user defined by state law, often a large industrial facility with consistent energy needs.

Colocated

Built at the same location or site as another facility, in this case next to an extra high load factor customer.

Limits and Unknowns

• The bill does not define what specific characteristics make a customer an 'extra high load factor' user.
• This rule only applies if the utility is already doing business as a public service corporation or public power entity in Arizona.
• The text states the law becomes effective on the general effective date but does not specify that exact calendar date.

Official Summary Text

HB2457 - 572R - Senate Fact Sheet

Assigned to
RAGE����������������������������������������������������������������������������������������������������������������� FOR
COMMITTEE

ARIZONA STATE SENATE

Fifty-Seventh
Legislature, Second Regular Session

FACT SHEET FOR
H.B. 2457

public
utilities; plant construction; colocation

Purpose

Outlines the conditions that allow a utility to construct a new plant
without filing for or receiving a certificate of environmental compatibility
(certificate).

Background

Any utility that plans to construct a
plant, transmission line or both in Arizona must first file an application for
a certificate with the Arizona Corporation Commission (ACC). The application
must be in a form prescribed by the ACC and 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 no 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
).

A utility
is defined as any person engaged in the generation or
transmission of electric energy. A
plant
is defined as each separate
thermal electric, nuclear or hydroelectric generating unit with a nameplate
rating of 100 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 (
A.R.S.
� 40-360
).

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

Provisions

1.

Allows a utility, after providing 30 days' written notice to the ACC and
holding at least one public comment session in the county where the relevant
plant is located, to construct a new plant without filing for or receiving a certificate
for the new plant if:

a)

the
new plant is co-located with an extra high load factor customer and the extra
high load factor customer has received all applicable zoning entitlements; and

b)

the utility is a public service corporation or public power entity doing
business in Arizona.

2.

Becomes
effective on the general effective date.

House Action

AII����������������� 2/12/26����� DPA��� 4-3-0-0

3
rd

Read ��������� 2/25/26����������������� 28-26-6

3
rd

Read*������� 3/3/26������������������� 32-22-5-0-1

*
on reconsideration

Prepared by Senate Research

March 16, 2026

JT/NRG/ci

Current Bill Text

HB2457 - 572R - H Ver

House Engrossed

public utilities;
plant construction; colocation

State of Arizona

House of Representatives

Fifty-seventh Legislature

Second Regular Session

2026

HOUSE BILL 2457

AN
ACT

amending title 40, chapter 2, article
6.2, arizona revised statutes, by adding section 40-360.14; 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.
1. Title
40, chapter 2, article 6.2, Arizona Revised Statutes, is amended by adding
section 40-360.14, to read:

START_STATUTE
40-360.14.

Exemption; new
plants colocated with extra high load factor customers

Notwithstanding sections 40-360.03 and 40-360.07,
a utility, after providing thirty days' written notice to the commission and
holding at least one public comment session in the county where the relevant
plant is located, may construct a new plant without filing for or receiving a
certificate of environmental compatibility for the new plant if all of the
following conditions are met:

1. The new plant is colocated with
an extra high load factor customer and the
extra
high load factor customer has received all applicable zoning entitlements.

2. The utility is a public service
corporation or public power entity doing business in this state.
END_STATUTE