HB2676 - 492R

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

Section 1. Section 11-821.01, Arizona Revised Statutes, is amended to read:

START_STATUTE11-821.01. Duty to zone certain area for canneries, fertilizer plants, refineries, commercial feed lots, meat packing plants, energy parks and other like businesses; procedure

A. The county planning and zoning commission shall designate and zone appropriate areas of reasonable size in which there may be established with reasonable permanency canneries, fertilizer plants, refineries, commercial feed lots, meat packing plants, tallow works, energy parks pursuant to title 30, chapter 2, and other like businesses, and the county board of supervisors shall by ordinance shall adopt at least one of any such plans as may be submitted by the commission to the board for the location of such businesses.

B. The zoning provided for in subsection A of this section shall be adopted and amended by the county as part of the county plan pursuant to section 11-821 and in accordance with all procedural requirements of this article. END_STATUTE

Sec. 2. Title 30, Arizona Revised Statutes, is amended by adding chapter 2, to read:

CHAPTER 2

ENERGY PARK AUTHORITY

ARTICLE 1. ADMINISTRATION

START_STATUTE30-401. Definitions

In this chapter, unless the context otherwise requires:

1. "Authority" means the energy park authority.

2. "Board" means the board of directors of the authority.

3. "Energy Park" means at least two renewable or noncarbon-based generation facilities for the generation of at least twenty megawatts of electricity each and the associated transmission lines interconnected together that are codeveloped for the purposes of receiving incentives, increasing financial stability and minimizing costs as determined by the Authority. Carbon-based generation facilities and energy related industries may be included in the Energy Park, but shall not receive any direct incentive or benefit from the Authority.

4. "Facility" or "facilities" means electric generation or transmission facilities.

5. "Generation facility" means a facility for the generation of electricity that is transmitted through a transmission facility to a grid connection with a public or private electric transmission or distribution utility system.

6. "Transmission facility" means real and personal property and improvements used to transmit ELECTRICITY between a generation facility in an energy park and the first connection with a public or private transmission grid. END_STATUTE

START_STATUTE30-402. Energy park authority

A. The energy park authority is established. The authority has jurisdiction to operate throughout this state.

B. The authority is a corporate and political body, separate from the state of Arizona, and, except as otherwise limited, modified or provided by this chapter, has all of the rights, powers and immunities of municipal corporations. The authority is considered to be a public improvement district and a political subdivision for the purposes of article XIII, section 7, Constitution of Arizona.

C. The authority is regarded as performing a governmental function in carrying out the purposes of this chapter. Any property, monies and other assets, including electric energy and power, acquired by the authority is considered to be public property and, as such, is exempt from state and local taxation. If the authority is terminated, all its assets remaining after its obligations and liabilities have been satisfied or discharged shall be ceded and surrendered to this state. END_STATUTE

START_STATUTE30-403. Board of directors

A. The authority is governed by a board of directors consisting of the following members:

1. One member of the senate who is appointed by the president of the senate as a nonvoting ex officio member.

2. One member of the house of representatives who is appointed by the speaker of the house of representatives as a nonvoting ex officio member.

3. One member who represents public electrical utilities that are regulated by the Arizona corporation commission and who is appointed by the governor.

4. One member who represents agricultural improvement and power districts and who is appointed by the president of the senate.

5. One member who has expertise in energy financing, who is not employed by an electrical utility and who is appointed by the governor.

6. One member who has expertise in electrical generation technology, who is not employed by an electrical utility and who is appointed by the governor.

7. One member who has expertise in electrical energy transmission planning and financing and project development, who is not employed by an electrical utility and who is appointed by the speaker of the House of Representatives.

B. To the extent practicable, members shall be appointed to produce a general geographically diverse representation of areas in this state. Appointed members serve at the pleasure of the appointing officer or body.

C. Members of the board are not eligible for compensation, but may be reimbursed from available monies of the authority for actual expenses in performing and attending to authority business as provided by title 38, chapter 4, article 2. END_STATUTE

START_STATUTE30-404. Advisory councils

The board may establish and appoint the membership of permanent or temporary advisory councils, which may include members of the board, to assist and advise the board on issues requiring specific technical expertise or to address specific issues relating to individual projects. After the first energy parks are designated, the board shall prioritize science and employment training councils in community and higher education environments. END_STATUTE

START_STATUTE30-405. Administrative powers and duties

A. The board shall:

1. Determine the organizational structure and procedure of the authority to meet the requirements of this chapter.

2. Appoint from among its members a chairperson, a secretary and any other officers that are necessary to conduct the business of the board.

3. Provide for a system of accounting for the assets and monies of the authority.

4. Provide for the necessary records of the authority, and maintain a complete and accurate record of all of the proceedings of the board. The board is a public body for purposes of title 38, chapter 3, article 3.1 and title 39, chapter 1.

5. Provide directors and officers insurance and defend the board members against claims lawfully carried out in the normal course of authority duties.

6. Develop and deliver a construction work in progress policy to the Arizona corporation commission for noncarbon‑based generation and transmission that requires performance bonds.

B. The board may:

1. Adopt and use a corporate seal.

2. Sue and be sued.

3. Enter into contracts, including intergovernmental agreements under title 11, chapter 7, article 3, as necessary to carry out the purposes and requirements of this chapter.

4. Adopt, amend and rescind administrative and substantive rules of procedure and operation. Rules adopted by the board are exempt from title 41, chapter 6, except that the board shall:

(a) Submit the rules for publication, and the secretary of state shall publish the rules in the Arizona administrative register.

(b) Provide thirty days for interested persons to comment on the proposed rules before adoption and after publication.

5. Retain legal counsel and other consultants as necessary to carry out the purposes of the authority.

6. Negotiate and enter into intergovernmental agreements, pursuant to title 11, chapter 7, article 3, with any special taxing district established pursuant to title 48, other than a multi‑county water conservation district established pursuant to title 48, chapter 22, with a book value of at least one billion dollars, to provide to the authority meeting and office space and staff support at no cost to the authority. END_STATUTE

START_STATUTE30-406. Executive director; duties

A. The board shall employ an executive director of the authority and prescribe the terms and conditions of employment.

B. The executive director is responsible for managing, administering and supervising the activities of the authority.

C. The executive director shall negotiate, make, execute, acknowledge and perform contracts and other agreements in the interest of the authority or to carry out or accomplish the purposes of this chapter. The board may prescribe that execution or performance of specific contracts require further approval by the board.

D. The board may authorize the executive director to employ clerical, administrative and professional employees, define their duties and prescribe the terms and conditions of employment. All employment positions must be filled on nonpartisan and merit-based considerations. Employees of the authority are considered to be public employees for the purposes of title 38.

E. The executive director shall:

1. Employ a treasurer or designate a fiscal agent to deposit, hold, invest and disburse the authority's monies.

2. Recommend to the board the retention of outside legal, technical, financial and fiscal advisors, agents, consultants and aides.

3. Direct the activities of outside consultants. END_STATUTE

START_STATUTE30-407. Functional powers and duties

A. The board shall:

1. Administer this chapter to support, diversify and expand the Arizona energy economy through the development of electric generation facilities and the improvement and expansion of transmission facilities and related supporting infrastructure.

2. Establish procedures to obtain and retain technical data for public access pursuant to title 39, chapter 1, article 2.

3. By July 1, 2011, adopt a ten-year, twenty-five-year and fifty-year comprehensive state energy strategy and make periodic revisions to reflect changing circumstances. The board shall consult, coordinate and include in the reports consideration of any water management plans under the department of water resources and a multi-county water conservation district. The board shall submit these reports to the legislature as provided by section 41-1178.

4. By December 31, 2011, adopt a plan to expedite and maximize the efficiency and timeliness of the siting and construction of generation facilities and transmission facilities. to the extent practicable, the plan shall include provisions for no more than ninety days in order to receive a preliminary approval for further action from any governmental entity. The board shall revise and update the plan every five years and submit each revision of the plan to the legislature as provided by section 41-1178.

5. By July 1, 2011, adopt a map identifying transmission corridors and energy parks that advance an adopted state energy strategy and provide for optimal use of available renewable resources and local initiatives.

6. Adopt a standardized procedure for approving facilities in energy parks for classification and valuation for property tax purposes pursuant to section 42-12010 and title 42, chapter 14, article 11 that must include the following considerations and criteria for approval:

(a) The maximum use of available water conservation design criteria that include the use of maximum required safety standards.

(b) On-site safety features included in the project giving greater consideration to projects using the best available safety features for the particular technology or technologies being used.

(c) REcycling programs for spent or obsolescent materials and other environmental protection programs THAT would be implemented as part of the project.

(d) Potential carbon emissions from the project.

(e) At least fifty-one per cent of the net new full-time employment positions at the project pay a wage that equals or exceeds one hundred twenty-five per cent of the median annual wage in this state as determined by the most recent annual department of commerce occupational wage and employment estimates. at least twenty-five per cent of the number or value of full-time employment positions and materials shall be locally and regionally sourced for the construction and development of energy parks.

(f) All net new full-time employment positions at the project include health insurance coverage for which the project applicant pays at least fifty per cent of the premium or membership cost, or an equivalent percentage of the cost for alternative health benefit models that offer standard comprehensive coverage.

(g) An evaluation of the project's contribution TOWARDS an adopted state energy strategy.

(h) An evaluation of the project's inclusion in an energy park.

(i) An evaluation of the financial capacity and security of investors in the project.

B. The energy park developer shall include site accommodations for nuclear medical isotope production, fast reactor research and development, solar panel recycling and MoX fuel recycling.

C. The authority, through the board, may:

1. Provide financial assistance for the construction, development, acquisition, operation and maintenance of transmission facilities and related infrastructure in this state.

2. Provide financial assistance for the development of energy parks.

3. Provide financial assistance to state agencies to expedite and improve the efficiency and timeliness of government actions relating to siting generation and transmission facilities.

4. Apply for, accept and administer grants and other financial assistance from the United States government and from other public and private sources.

5. Contract and incur obligations as reasonably necessary or desirable within the general scope of the authority's activities and operations to allow the authority to adequately perform its duties under this chapter.

6. Establish, assess and collect fees and charges for the use of the facilities owned by the authority. Fees and charges may include financial assistance origination fees, annual fees, rentals and other charges. Any monies collected pursuant to this paragraph constitute governmental revenue and may be used for any purpose consistent with the mission and objectives of the authority under this chapter.

7. enter into contracts with any person or entity for the management and operation of its projects.

8. Enter into partnerships with public or private entities.

9. Own projects by itself or jointly with other owners and develop operational and joint ownership protocols.

10. Plan, finance, construct, develop, acquire, own, maintain and operate within and outside this state, property, structures, equipment, facilities and works of public improvement necessary or useful to accomplish the purposes for which the authority was established, including obtaining permits and acquiring rights-of-way.

11. Acquire by any lawful means and operate, maintain, encumber and dispose of real and personal property, improvements to real property and interests in property within and outside this state.

12. Provide for the use, maintenance and operation of the properties, interests and other assets owned or controlled by the authority.

13. Offer naming rights to applicants and energy companies as project sponsors for consideration to the authority.

D. The board shall limit the authority's ownership of transmission and generation capacity for a limited period of time.

E. The board shall not provide funding for construction of an approved project until the project is approved by the Arizona corporation commission as required by law. END_STATUTE

START_STATUTE30-408. Annual report

No later than March 1 of each year, the board shall make a report of the authority's activities under this chapter for the preceding calendar year, including a copy of the annual audit, to the governor, the president of the senate and the speaker of the house of representatives. END_STATUTE

START_STATUTE30-409. Decennial review by joint legislative budget committee

Beginning in 2015 and at least every tenth year thereafter, the joint legislative budget committee shall review the operation, performance and finances of the authority. At the request of the chairperson of the joint legislative budget committee, the executive director of the authority shall appear before the joint legislative budget committee to review and report on any aspect of the authority's operation, including the financial performance and solvency of the authority and the continuing need for ad valorem property tax revenues received pursuant to section 42-14554. END_STATUTE

START_STATUTE30-410. Effect on Arizona corporation commission

Nothing in this chapter diminishes the authority or jurisdiction of the Arizona corporation commission as provided by article XV, Constitution of Arizona. END_STATUTE

ARTICLE 2. FINANCIAL PROVISIONS

START_STATUTE30-451. Annual budget

A. On or before June 30 of each year, the board shall hold a public hearing to adopt a budget for the following fiscal year that includes:

1. Receipts, by source, during the past fiscal year.

2. Expenditures during the past fiscal year.

3. Estimates of amounts necessary for expenses during the following fiscal year, including amounts proposed for:

(a) Costs of planning, constructing, financing, maintaining, operating and managing the authority's facilities.

(b) Administrative costs of the authority.

4. Anticipated revenue to the authority, by source, in the following fiscal year.

5. A complete asset and liability statement.

6. Cash on hand as of the date the budget is adopted and the anticipated balance at the end of the current fiscal year.

7. An itemized statement of commitments, reserves and anticipated obligations for the following fiscal year.

B. The board may amend the budget on a finding of good cause. END_STATUTE

START_STATUTE30-452. Energy authority general fund

A. The energy authority general fund is established to be maintained in perpetuity consisting of:

1. Monies received from the United States government, including capitalization grants.

2. Monies received from the issuance and sale of obligations and notes under this chapter.

3. Interest and other income received from investing monies in the fund, including the investment of surplus revenues.

4. Ad valorem property tax revenues received pursuant to section 42‑14554.

5. Monies appropriated by the legislature.

6. Monies received by the authority from rents, fees, charges, contracts and other payments.

7. Gifts, grants and donations received from any public or private source.

B. The fund shall include separate accounts for the purpose of:

1. Decommissioning generation facilities.

2. Funding the manufacturing, distribution, storage, handling and containment of radiation treatment isotopes.

C. The fiscal agent of the authority shall manage the monies in the fund as directed by the board.

D. Monies in the fund may be used for any purpose of the authority under this chapter, except that monies segregated in specific accounts and subaccounts may be used only for the specific objective of the account or subaccount.

E. Monies in the fund and its accounts and subaccounts are continuously appropriated and are exempt from the provisions of section 35‑190 relating to lapsing of appropriations. END_STATUTE

START_STATUTE30-453. Investments

A. The fiscal agent may invest any unexpended monies of the fund and of any account or subaccount as provided in title 35, chapter 2. Interest and other income from investments shall be credited to that account except as otherwise provided by law.

B. The authority's investments must mature when the assets of the fund, account or subaccount will be required for the purposes of this chapter. If the liquid assets in the fund or any account or subaccount become insufficient to meet the statutory obligations, the board shall direct the fiscal agent to liquidate sufficient securities to meet all of the current obligations and immediately notify the auditor general of the insufficiency. The auditor general shall investigate and audit the circumstances surrounding the depletion of the fund, account or subaccount and report the findings to the board of directors. END_STATUTE

START_STATUTE30-454. Annual audit

A. The board shall cause an annual audit to be made of any fund administered by the authority and all bond issues under this chapter. The audit shall be conducted by an independent certified public accountant within one hundred twenty days after the end of the fiscal year. The certified public accountant and the firm the certified PUBLIC accountant is affiliated with may not regularly PERFORM services for the authority. The authority shall immediately file a certified copy of the audit with the auditor general.

B. The auditor general may make any further audits and examinations as necessary and may take appropriate action relating to the audit or examination pursuant to title 41, chapter 7, article 10.1. If the auditor general takes no official action within twenty days after the audit is filed, the audit is considered to be sufficient.

C. The authority shall pay any fees and costs of the certified public accountant and auditor general under this section from the funds administered by the board under this chapter. END_STATUTE

Sec. 3. Section 42-12001, Arizona Revised Statutes, is amended to read:

START_STATUTE42-12001. Class one property

For purposes of taxation, class one is established consisting of the following subclasses:

1. Producing mines and mining claims, personal property used on mines and mining claims, improvements to mines and mining claims and mills and smelters operated in conjunction with mines and mining claims that are valued at full cash value pursuant to section 42‑14053.

2. Standing timber that is valued at full cash value.

3. Real and personal property of gas distribution companies, electric transmission companies, electric distribution companies, combination gas and electric transmission and distribution companies, companies engaged in the generation of electricity and electric cooperatives, other than property that is specifically included in class ten, that are valued at full cash value pursuant to section 42‑14151.

4. Real and personal property of airport fuel delivery companies that are valued pursuant to section 42‑14503.

5. Real and personal property that is used by producing oil, gas and geothermal resource interests that are valued at full cash value pursuant to section 42‑14102.

6. Real and personal property of water, sewer and wastewater utility companies that are valued at full cash value pursuant to section 42‑14151.

7. Real and personal property of pipeline companies that are valued at full cash value pursuant to section 42‑14201.

8. Real and personal property of shopping centers that are valued at full cash value or pursuant to chapter 13, article 5 of this title, as applicable, other than property that is included in class nine.

9. Real and personal property of golf courses that are valued at full cash value or pursuant to chapter 13, article 4 of this title.

10. All property, both real and personal, of manufacturers, assemblers or fabricators, other than property that is specifically included in another class described in this article, that are is valued under this title.

11. Real and personal property that is used in communications transmission facilities and that provides public telephone or telecommunications exchange or interexchange access for compensation to effect two‑way communication to, from, through or within this state.

12. Real property and improvements that are devoted to any other commercial or industrial use, other than property that is specifically included in another class described in this article, and that are valued at full cash value.

13. Personal property that is devoted to any other commercial or industrial use, other than property that is specifically included in another class described in this article, and that is valued at full cash value. END_STATUTE

Sec. 4. Renumber

Section 42-12010, Arizona Revised Statutes, is renumbered as section 42-12011.

Sec. 5. Title 42, chapter 12, article 1, Arizona Revised Statutes, is amended by adding a new section 42-12010, to read:

START_STATUTE42-12010. Class ten property

A. Subject to subsection E of this section, for the purposes of taxation, class ten is established consisting of personal property and improvements consisting of:

1. Facilities that are valued pursuant to chapter 14, article 11 of this title for the generation of electricity that is transmitted through a transmission facility to a grid connection with a public or private electric transmission or distribution utility system that is not owned by a multi‑county water conservation district established pursuant to title 48, chapter 22.

2. On site administrative and operational improvements that are necessary and ancillary to the generation and transmission process.

B. Real property used for any purpose shall not be classified under this section.

C. Property may not be classified under this section for more than twenty years, except that any new addition or improvement to property already classified under this section qualifies separately for classification under this section for not more than twenty years.

D. Property that is originally classified under this section shall not thereafter be classified as class six under any paragraph of section 42‑12006.

E. No property may be classified in class ten until the valuation year in which the first noncarbon-based generation facility that receives financial assistance from the energy park authority pursuant to title 30, chapter 2 produces and transmits electricity in commercial amounts to a grid connection. END_STATUTE

Sec. 6. Section 42-14151, Arizona Revised Statutes, is amended to read:

START_STATUTE42-14151. Annual determination of valuation; definition

A. The department shall annually determine the valuation, in the manner prescribed by this article, of all property, owned or leased, and used by taxpayers in the following businesses:

1. Operation of a natural gas distribution system.

2. Operation of a water utility system.

3. Operation of a sewer system or wastewater treatment facility.

4. Operation of an electric generation facility, except for facilities that are classified as class ten property and subject to valuation and taxation under article 11 of this chapter.

5. Operation of an electric transmission or distribution system.

B. For the purposes of this article, "generation of electricity" means the process of taking a source of energy, including coal, natural gas, oil, nuclear fuel or renewable sources and converting the energy into electricity to be delivered to customers through a transmission and distribution system. END_STATUTE

Sec. 7. Title 42, chapter 14, Arizona Revised Statutes, is amended by adding article 11, to read:

ARTICLE 11. VALUATION AND TAXATION OF

ELECTRIC GENERATION FACILITIES

START_STATUTE42-14551. Annual determination of valuation; definitions

A. The department shall annually determine, as prescribed by this article, the valuation of personal property and improvements that are used for generating ELECTRICITY and classified as class ten property pursuant to section 42-12010. Real property used for any purpose shall not be valued or subject to taxation under this article.

B. For the purposes of this article:

1. "Business entity" means an owner of an electric generation facility regardless of the form of the owner's ownership interest.

2. "Generation facility" means a facility for the generation of electricity that is transmitted through a transmission facility to a grid connection with a public or private electric transmission or distribution utility system. Generation facility does not include any device or system for the production of electricity primarily for on-site consumption. END_STATUTE

START_STATUTE42-14552. Annual report for purposes of determining valuation; failure to file; penalty; forfeiture of appeal rights

A. on or before April 1 of each year, a business entity that operates aN ELECTRIC generation facility classified as class ten property pursuant to section 42-12010 and that is valued pursuant to this article shall file a report with the department, under oath, stating the information that the department requires to enable it to make a valuation of the property. On or before February 1 of each year, the department shall mail to the business entity the forms for filing the report. On written request and for good cause shown, the director may extend the time for filing the report required by this section.

B. If a business entity fails to file the report on or before April 1 of the valuation year, or the extended due date if an extension is granted, the department shall both:

1. Estimate the value of the property based on one hundred five per cent of the preceding year's valuation or on any information that is available to the department.

2. Assess a penalty in the amount of the lesser of:

(a) One‑half of one per cent of the value that is estimated by the department.

(b) One hundred dollars per day for each day the business entity fails to file the report beyond the due date.

C. If the report is not filed on or before May 20 of the valuation year, the business entity forfeits its right to appeal the valuation and classification pursuant to section 42‑14005. END_STATUTE

START_STATUTE42-14553. Valuation of electric generation facilities; definitions

A. The department shall determine the valuation of generation facilities for the purposes of this article in the manner prescribed by this section.

B. The valuation of personal property and real property improvements that are used in a generation facility is twenty per cent of the depreciated cost of the property. In addition, the business entity may submit documentation showing the need for, and the department shall consider, an additional adjustment to recognize obsolescence using standard appraisal methods and techniques.

C. The department shall not value personal property construction work in progress until the property is first placed in commercial service. For the purposes of this subsection, "commercial service" means:

1. For machinery and equipment used in the generation of electricity being valued and placed on the tax roll for the first time, the official assumption of operation and ownership of the machinery and equipment from the contractor by the plant operator.

2. For machinery and equipment added to existing generation facilities, that the construction work has progressed to a sufficient degree for the machinery and equipment to be useful for the purpose for which it is being constructed.

3. For machinery and equipment related to self‑constructed facilities, that the construction work has progressed to a sufficient degree for the machinery and equipment to be useful for the purpose for which it is being constructed.

D. For the purposes of this section:

1. "Personal property" includes all tangible property except for land and real property improvements. Personal property includes foundations or supports for the machinery or apparatus for which they are provided, including water cooling towers.

2. "Real property improvements" includes buildings, including administration buildings, maintenance warehouses and guard shacks, water retention ponds, sewage treatment ponds, reservoirs, sidewalks, drives, curbs, parking lots, tunnels, duct banks, canals, fencing and landscaping. END_STATUTE

START_STATUTE42-14554. Assessment, levy and collection of tax; debt; lien

A. The department shall annually:

1. Enter in its records the valuation of electric generation facilities as determined under section 42-14553.

2. Determine the assessed valuation of the property as provided by sections 42‑12010 and 42‑15010.

3. Levy a tax against the assessed valuation at a rate that equals the average of the rates for primary and secondary property taxes in all taxing jurisdictions in this state for the current tax year.

4. Collect the taxes according to the schedules prescribed by section 42‑18052.

5. Through December 31, 2039, transmit twenty per cent of the tax revenues to the energy park authority for deposit in the energy authority general fund established by section 30‑452, subsection A. Revenues attributable to new construction of, or additions to, property collected in the first tax year shall be credited to the decommissioning account in the general fund. Beginning January 1, 2040, the department shall transmit all tax revenues to the treasurers of the respective counties in which electric generation facilities are located for credit to the taxing jurisdictions in which the facilities are located in proportion to their respective tax levies.

6. Transmit the remainder of the tax revenues to the treasurers of the respective counties in which the electric generation facilities are located for credit to the taxing jurisdictions in which the facilities are located in proportion to their respective tax levies.

B. The tax imposed by this section is in lieu of all other ad valorem taxes on personal property and improvements constituting electric generation facilities that are classified as class ten pursuant to section 42‑12010. Property that is subject to tax under this section is not subject to the levy of tax by any county, city, town, community college district, school district, special taxing district or other taxing jurisdiction in this state.

C. Delinquent taxes under this section bear interest at the rate determined pursuant to section 42‑1123.

D. The valuations that are used for tax purposes pursuant to this article are a matter of public record and are not confidential information under chapter 2, article 1 of this title.

E. The tax imposed by this article:

1. Is a debt of the business entity that owns the generation facility.

2. May be collected by an action instituted and prosecuted by the attorney general on the director's request.

3. Is a lien pursuant to section 42‑17154 against the assessed generation facility. END_STATUTE

Sec. 8. Renumber

Section 42-15010, Arizona Revised Statutes, is renumbered as section 42-15011.

Sec. 9. Title 42, chapter 15, article 1, Arizona Revised Statutes, is amended by adding a new section 42-15010, to read:

START_STATUTE42-15010. Assessed valuation of class ten property

A. For tax years through December 31, 2012, the assessed valuation of class ten property is the same percentage of full cash value or limited valuation as prescribed by section 42-15001.

B. For each tax year beginning from and after December 31, 2012, the department shall annually adjust the assessment percentage of class ten property, rounded to one-tenth of one per cent, to maintain the same aggregate statewide assessed valuation of all property in class ten as in the preceding valuation year plus forty per cent of the assessed valuation attributable to any new construction of, or additions to, class ten property during the preceding valuation year. END_STATUTE

Sec. 10. Legislative findings

The legislature finds that:

1. There are extensive reserves of energy in this state and insufficient facilities to warrant the timely development and marketing of those reserves.

2. Timely development of energy sources in this state will stabilize and increase revenue to the state.

3. New infrastructure will increase development of energy sources in this state.

4. It is in the public interest of the citizens of this state to promote the economic welfare of the state and its residents by increasing employment, stimulating economic activity, augmenting sources of tax revenue, fostering economic stability and improving the balance of the state's economy.