HB2061 - 551R - Senate Fact Sheet

Purpose

Requires the Governor to appoint a State Permitting Director (Director) and requires the Director to establish an online permitting dashboard that displays the progress of state authorizations for participating projects. Outlines requirements for eligible projects, the permitting dashboard and dispute resolution.

Background

Statute prescribes requirements for various permits that a person may be required to obtain in order to commence an infrastructure construction project. Permit requirements vary based on the type of project and are administered by the respective state agencies. The Governor's Regulatory Review Council (GRRC) is comprised of six members appointed by the Governor and the Director of the Department of Administration, who serves as an ex-officio member and chairperson (A.R.S. § 41-1051).

The Joint Legislative Budget Committee (JLBC) prepared a fiscal note for H.B. 2543, which contains identical requirements relating to the state permitting dashboard. The fiscal note estimates that the bill would result in ongoing operating costs between $300,000 and $2 million, depending on the organization of the office, and one-time information technology development costs of $500,000 to $5 million for the automated dashboard (JLBC fiscal note).

Provisions

1. Allows the project sponsor of an eligible project to submit a notice to the Director stating that the project sponsor is initiating a proposed project and that includes:

a) a statement of the purposes and objectives of the proposed project;

b) a concise description, including the general location of the proposed project and a summary of geospatial information, if available;

c) a statement regarding the technical and financial ability of the project sponsor to construct the proposed project;

d) a list of agencies that may require authorizations for completion of the proposed project;

e) a statement of any authorization anticipated to be required to complete the proposed project; and

f) an assessment that the proposed project meets the definition of an eligible project and a statement of reasons supporting that assessment.

2. Requires the Director, within 30 days of receiving the notice, to determine whether the proposed project qualifies as an eligible project and whether to include the proposed project as a participating project in the permitting dashboard.

3. Requires each agency identified by the project sponsor, within 45 days of the determination by the Director that the project qualifies as an eligible project, to submit all anticipated authorizations required for each participating project to the Director, including the:

a) steps required by the project sponsor and the agency to complete each authorization; and

b) target completion date for each step.

4. Requires an agency, if the agency requires authorization for completion of a participating project that was not included in the notice to the Director, to provide the Director with a written statement of cause for each additional authorization.

5. Requires an agency identified by the project sponsor to submit any decision made that materially affects the status of a participating project and any significant document associated with the decision to the Director.

6. Defines an eligible project as an activity that requires authorization by an agency and that involves infrastructure construction for renewable or conventional energy production, electricity transmission, mining, land revitalization, surface transportation, aviation, water resource projects, wastewater projects, broadband, pipelines or manufacturing or any other activity determined by the Director and that is both:

a) subject to applicable state environmental laws, permitting regulations and other relevant government authorizations, the size and complexity of which, as determined by the Director, make the eligible project likely to benefit from enhanced oversight and coordination; and

b) likely to require a total construction investment of more than $25,000,000 or is under $25,000,000 and the Director finds that other factors make the project likely to benefit from the enhanced oversight and coordination.

7. Requires the Director to establish and maintain an online permitting dashboard that displays the progress to completion for state authorizations for participating projects.

8. Requires the permitting dashboard to include a visual interface that tracks the status of each authorization required for participating projects.

9. Requires the Director to coordinate with any agency that requires authorization for a participating project.

10. Allows the Director, for each participating project that is added to the permitting dashboard and consistent with applicable statutory requirements, to display the following on the permitting dashboard:

a) the notice submitted by the project sponsor of the eligible project;

b) the application and supporting documents, if applicable, that have been submitted by a project sponsor for any required authorization or a notice explaining how the public may obtain access to documents not available on the website;

c) a description of any decision made that materially affects the status of a participating project;

d) a list of roles and responsibilities for entities with authorization responsibility for the participating project;

e) a permitting timetable that sets forth a comprehensive schedule of dates by which all authorizations and state permits, reviews and approvals, to the maximum extent practicable, will be made; and

f) the completion status of the authorization included in the permitting timetable.

11. Prohibits an agency from requiring an eligible project to participate in the permitting dashboard.

12. Requires each agency, to the maximum extent possible, to carry out the obligations of the agency with respect to a participating project under any other statutory requirement concurrently and in conjunction with other authorizations being conducted by other agencies or local and tribal governments, unless it is determined that doing so would impair the ability of the agency to carry out statutory obligations.

13. Requires the Director, as necessary and in conjunction with the project sponsor and relevant agency, to mediate any dispute related to the permitting timetable.

14. Requires the Director, if no resolution is reached, to notify GRRC and review the dispute with the Director of the relevant agency.

15. Requires GRRC, within 30 days after notification by the Director, to recommend a course of action to the Director regarding the dispute.

16. Allows the Director to require agency action to resolve a dispute.

17. Allows GRRC to adopt rules relating to dispute resolution.

18. Requires the Governor to appoint the Director.

19. Requires the Director to appear before the Joint Legislative Budget Committee, at the request of the Chair, to report on findings from administering the permitting dashboard.

20. Requires the Director, by December 1, 2022, to submit a report of findings from administering the permitting dashboard to the:

a) Governor;

b) President of the Senate;

c) Speaker of the House of Representatives;

d) Chair of the Senate Natural Resources, Energy and Water Committee, or a successor committee; and

e) Chair of the House of Representatives Natural Resources, Energy and Water Committee, or a successor committee.

21. Requires the report submitted by the Director to include:

a) authorization completion times by agency;

b) permitting completion times for participating projects; and

c) frequency of statements of cause for additional authorizations.

22. Requires a copy of the report to be submitted to the Secretary of State.

23. Defines agency, authorization, director, participating project, permitting dashboard and project sponsor.

24. Contains a delayed repeal date of December 31, 2028.

25. Becomes effective on the general effective date.