HB2341 - Line siting; factors; offtakers

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