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ARIZONA HOUSE OF REPRESENTATIVESFifty-sixth Legislature First Regular Session |
House: NREW DP 6-2-1-1 | 3rd Read 31-28-1-0Senate: NREW DPA 4-3-0-0 | 3rd Read 16-13-1-0 |
HB 2618: decommissioning; solar and wind; standards
Sponsor: Representative Griffin, LD 19
Senate Engrossed
Overview
Requires county approval for permits to install solar or wind energy power plants and outlines requirements for the plant's location, site preparation, financial assurances, liability insurance, repairing damage to the plant, decommissioning the plant and transferring or selling the plant.
History
Counties may form planning and zoning commissions to plan for land uses within the county. Districts may be zoned for various classes of residential, business and industrial uses. Additionally, county zoning ordinances must take into account access to incident solar energy (A.R.S. § 11-811).
A county board of supervisors may adopt a comprehensive plan to guide and coordinate development within the county. For counties with more than 125,000 people, these plans must include consideration for access to incident solar energy for all general categories of land uses. The comprehensive plans for counties with fewer than 125,000 people are not required to include this consideration (A.R.S. § 11-804).
A county building permit is required for any major construction or additions that occur outside of the boundaries of municipalities with building permit ordinances. In particular, counties must adopt certain standards for issuing permits to build solar panel systems that will connect to a utility system. These standards require:
1) The system's location to be indicated on the construction plans, including the roof plan and elevation;
2) The panel mounting details be included in the installation plans;
3) Electrical diagrams with one-line and three-line diagrams; and
4) A cutsheet and listing for inverters when conversions from direct current to alternating current occur.
A county may not require a professional engineer's stamp for a solar panel system unless the county deems it necessary (A.R.S. §§ 11-321 and 11-323).
Provisions
Local Government Requirements (Sec. 1)
1. Authorizes a county, city or town to adopt zoning standards, site specific conditions and permitting requirements and procedures for solar energy power plants and wind energy power plants within its jurisdiction.
2. Directs an applicant for a solar energy power plant or wind energy power plant to comply with the procedures adopted by the county, city or town where the plant will be located.
Transfer and Sale (Sec. 1)
3. Prohibits the transfer of a solar or wind energy power plant or special use permit or the sale of the entity owning the plant without written acceptance by the transferee of the obligations required under this act.
4. Specifies that the transfer or sale does not eliminate the applicant's liability or responsibility (or that of any other party) for acts or omissions occurring before transfer or sale.
5. Authorizes a city, town or county to reassess the amount of financial assurance required when a transfer of unit ownership occurs and directs the plant owner or operator to reimburse any reasonable costs incurred by the city, town or county to obtain the reassessment.
Curing Damage and Cessation of Use (Sec. 1)
6. Directs the solar or wind energy power plant owner or operator to cure any damage or deficiency within 90 days of written notice from the city, town or county if any part of the plant is damaged or violates a permit condition.
7. Requires, if it is not possible for the owner or operator to cure the damage or deficiency within 90 days of receiving the notice, to provide the city, town or county with a plan to cure the damage or deficiency as soon as reasonably possible.
8. Instructs the applicant or any successors or assigns to remove the solar or wind energy power plant and restore the site at its own expense (consistent with a decommissioning and site restoration plan) if the plant remains continuously nonfunctional or inoperative of over a year.
9. Requires, if it is not possible for the owner or operator to restore the plant to operation within a year, to provide the city, town or county with a plan to restore the plant as soon as reasonably possible.
10. States that these requirements apply to a solar or wind energy power plant that began commercial operations before, on or after this act's effective date.
Decommissioning and Site Restoration Plan (Sec. 1)
11. Requires a solar or wind energy power plant owner or operator to include a decommissioning and site restoration plan.
12. Mandates the decommissioning and site restoration plan indicate how the solar or wind energy power plant will be decommissioned and include:
a) An estimate of the decommissioning and restoration costs, net salvage value;
b) Financial resources that will be used for the decommissioning and restoration and
c) Appropriate financial assurances.
13. Directs a solar or wind energy power plant owner or operator to remove the plant and restore the site as prescribed by this act unless the city, town or county determines that a required provision is unnecessary.
14. Requires the removal of a solar or wind energy power plant include all above ground components and comply with certain criteria, including that the removal must be completed within 18 months unless otherwise approved by the city, town or county.
15. Prescribes requirements for site restoration including:
a) Minimizing ground disturbance and restoring the original ground contours, if possible;
b) Reasonably restoring and re-establishing disturbed on-site soils and vegetation using native seed mix and appropriate soil nutrients;
c) Restoring paved roads to their original condition;
d) Allowing access roads, fencing, drainage improvements and other minor improvements to remain with the landowner's consent; and
e) Removing and remediating any hazardous materials.
16. Authorizes the county to enter the site after providing reasonable notice to the property owner to complete the decommissioning plan.
17. Requires, after the solar or wind energy power plant owner or operator completes decommissioning and site restoration:
a) The owner or operator to notify the city, town or county within 30 days after the date when the decommissioning and restoration is complete and
b) The city, town or county to certify to the owner or operator that decommissioning and site restoration is complete within 30 days after receiving this notice.
18. States that after a city, town or county certifies that decommissioning and site restoration are complete:
a) The owner or operator is released from any obligation prescribed by this act and
b) The city, town or county must return or release any remaining financial assurance.
19. Clarifies that these decommissioning and site restoration requirements apply to a solar or wind energy power plant that began commercial operations before, on or after this act's effective date.
Financial Assurance (Sec. 1)
20. Requires the plant owner or operator to continuously maintain financial assurance, which includes a bond or parent guarantee, starting on a date determined by a city, town or county.
21. Specifies that the amount of this financial assurance must be equal to the cost to decommission and restore the site of a solar or wind energy power plant, net salvage value, as determined by the city, town or county.
22. Instructs the owner or operator to update this cost estimate every 10 years.
23. Allows the county to use the financial assurance for the costs of correcting other acts of noncompliance associated with this act's requirements.
24. Requires, if the solar or wind energy power plant is sold to a public service corporation, the plant's owner to notify the city, town or county.
25. Directs the city, town or county, within 15 days of receiving this notice, to waive the financial assurance requirements and return or release any financial assurance provided back to the plant owner.
26. Specifies that these financial assurance requirements apply to a solar or wind energy power plant that began commercial operations before, on or after this act's effective date.
Liability Insurance (Sec. 1)
27. Requires the solar or wind energy power plant owner or operator to maintain an insurance policy that includes coverage of any reasonable liability of the city, town or county where the plant is located related to the plant's construction or operation.
28. Requires the solar or wind energy power plant owner or operator to immediately provide written notice of any change in the insurance policy to the city, town or county.
29. States that these liability insurance requirements apply to a solar or wind energy power plant that began commercial operations before, on or after this act's effective date.
Senate Amendments
1. Modifies the obligations required for the transfer of a solar or wind energy power plant or special use permit or sale of an entity owning the plant.
2. Stipulates a transfer or sale does not eliminate a party's liability or responsibility for acts or omissions occurring before the transfer or sale, except when the transferee and transferor provide for the transfer of liability or responsibility by agreement.
3. Allows a city, town or county to establish a procedure for:
a) receiving notice of a sale and transfer of obligations of a solar or wind energy power plant; and
b) approving a sale and transfer of obligations.
4. Outlines requirements for a solar energy power plant owner and a city, town or county if the solar energy power plant is sold to prescribed entities.
5. Authorizes a city, town or county to adopt a procedure for waiving the financial assurance if the owner or operator of the planned solar or wind energy power plant submits outlined documentation with its application.
6. Requires the owner or operator of a solar or wind energy power plant to:
a) maintain the plant in good conditions and repair; and
b) ensure that the plant remains functional and operational until decommissioning is initiated, except as otherwise specified.
7. Authorizes a city, town or county to adopt reasonable:
a) timelines and requirements for the cure, repair or defects of a solar or wind energy power plant as outlined;
b) penalties and procedures for the violation of or noncompliance with any prescribed requirements;
c) procedures for determining when a power plant has been abandoned;
d) timelines and procedures for the decommissioning and site restoration for a power plant that has been abandoned or whose owner has filed for bankruptcy or is insolvent.
8. Prohibits a solar or wind energy power plant owner or operator from abandoning a power plant for any reason and details procedures if the owner files for bankruptcy or becomes insolvent.
9. Outlines notice requirements a city, town or county must follow before decommissioning or restoring a site that has been abandoned.
10. Allows a city, town or county to adopt procedures for reviewing and approving a decommissioning and site restoration plan that a solar or wind energy power plant owner or operator submits.
11. Permits a city, town or county to establish the minimum components of a decommissioning and site restoration plan for a solar or wind energy power plant and modifies the minimum components that must be included.
12. Authorizes a city, town or county to adopt and enforce minimum standards and procedures for the decommissioning or restoration of a solar or wind energy power plant site that is subject to a land use or zoning permit and details what these standards and procedures must cover.
13. Directs a city, town or county to adopt procedures, rather than a statewide procedure, for:
a) certifying when decommissioning and site restoration activities have been completed and receiving notification; and
b) releasing a solar or wind energy power plant owner's or operator's financial assurance.
14. Establishes procedures that must occur within 90 days after written notice from a solar or wind energy power plant owner or operator completes all decommissioning and site restoration activities.
15. Modifies the financial assurance amount that must be continuously maintained by a solar or wind energy power plant owner or operator.
16. Allows a city, town or county to:
a) require a solar or wind energy power plant owner or operator to update the cost estimate or adopt procedures for the owner or operator to submit updated cost estimates as outlined; and
b) reassess the required financial assurance amount and modifies or adjusts the amount based on the most recent cost estimate received.
17. Authorizes a city, town or county to:
a) adopt procedures for an owner or operator of a solar or wind energy power plant to submit with the cost estimate, for considering during the calculation of financial assurance, the estimated salvage value of power plant equipment at the time decommissioning; and
b) waive the required financial assurance if certain criteria are met.
18. Specifies that a solar or wind energy power plant that is owned by a city, town, county or a public service corporation may demonstrate financial capability of meeting decommissioning and restoration costs by submitting certain documentation in lieu of maintaining the required financial assurance.
19. Allows a city, town or county to use the required financial assurance to cover the cost of initiating or completing decommissioning or site restoration if the solar or wind energy power plant owner or operator fails to complete decommissioning and site restoration.
20. Requires a solar or wind energy power plant owner or operator to maintain a commercial general liability insurance policy as outlined.
21. Details liability or responsibility exemptions for a city, town or county that approves a permit, standard, condition requirement or decommissioning and site restoration plan.
22. Details the application of prescribed regulations and requirements to solar and wind energy power plants.
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HB 2618
Initials PAB Page 0 Senate Engrossed
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