Assigned
to NREW AS
PASSED BY COMMITTEE
ARIZONA STATE SENATE
Fifty-Sixth Legislature, First Regular Session
AMENDED
decommissioning; solar and wind; standards
Purpose
Allows a city, town or county to adopt zoning standards, site specific conditions and permitting requirements or procedures for a solar or wind energy power plant (power plant) that is located in the city, town or county. Establishes decommissioning and site restoration standards for power plants.
Background
A county board of supervisors must adopt a long-term comprehensive plan for the development of an area within the jurisdiction that aims to: 1) conserve the natural resources of the county; 2) ensure efficient expenditure of public monies; and 3) promote the health, safety, convenience and general welfare of the public. For counties with a population of 125,000 persons or more, the comprehensive plan must include consideration of air quality and access to incident solar energy for all general categories of land use (A.R.S. § 11-804).
A solar energy device is a system or series of mechanisms designed primarily to provide: 1) heating; 2) cooling; 3) electrical power; 4) mechanical power; 5) solar daylighting; or 6) any combination of the foregoing by means of collecting and transferring solar generated energy into such uses either by active or passive means (A.R.S. § 44-1761).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
Local Government Power Plant Regulations
1. Allows a city, town or county to adopt zoning standards, site specific conditions and permitting requirements or procedures for a power plant that is located in the city, town or county.
2. Requires an applicant for a power plant to comply with the applicable standards, conditions, requirements and procedures for a power plant that are adopted by the city, town or county in which the power plant is to be located.
Transfer or Sale of a Power Plant
3. Prohibits the transfer of a power plant or special use permit or the sale of the entity owning the power plant to occur without written acceptance by the transferee of the transferor's obligations.
4. Stipulates that a transfer or sale does not eliminate the liability or responsibility of a transferor or of any other party under liability or responsibility of an applicant or of any other party for acts or omissions occurring before the transfer or sale except when the transferor and transferee provide for the transfer of liability or responsibility by agreement.
5. Allows the city, town or county, for a transfer of unit ownership, to reassess the amount of any financial assurance required.
6. Requires the power plant project owner or operator to reimburse any reasonable costs incurred by the city, town or county to obtain the reassessment.
Damage or Abandonment of a Power Plant
7. Requires the owner or operator of a power plant to maintain the plant in good condition and repair, and ensure that the plant remains functional and in continuous operation until decommissioning of the plant is initiated.
8. Requires the power plant owner or operator, if a component that is essential to the function of a power plant is damaged or if a power plant violates a permit condition imposed by a city, town or county, to cure any damage or deficiency within 90 days after written notice from the city, town or county.
9. Requires the power plant owner or operator, if it is not reasonably possible for the power plant owner or operator to cure the damage or deficiency within 90 days after receiving the written notice in lieu of curing the damage or deficiency, to provide the city, town or county with a plan to cure the damage or deficiency as soon as reasonably possible.
10. Requires the solar energy power plant owner or operator, if a power plant remains nonfunctional or inoperative for a continuous period of at least 18 months, without any further action by the city, town or county, to remove the system and restore the site at its own expense.
11. Requires the power plant owner or operator in lieu of restoring the solar energy power plant to function or operation, if it is not reasonably possible for a power plant owner or operator to restore the power plant to be functional or operational within 18 months, to provide the city, town or county with a plan to restore the power plant to be functional or operational as soon as reasonably possible.
Decommissioning and Site Restoration Plan (Plan)
12. Requires a power plant owner or operator to provide a city, town or county where the power plant is located with a Plan that is approved by the city, town or county.
13. Requires the Plan as prescribed to state:
a) how the power plant will be decommissioned;
b) how the site will be restored;
c) an estimate of the cost of decommissioning and site restoration, calculated by a person who is qualified to estimate decommissioning and site restoration costs and salvage value for the power plant, net of salvage value;
d) a description of the financial resources that the power plant will use to accomplish decommissioning and restoration; and
e) financial assurances.
Removal of Power Plant
14. Requires a power plant owner or operator to remove a power plant and restore a power plant site as prescribed, unless a city, town or county determines that decommissioning or site restoration is not necessary.
15. Stipulates the prescribed decommissioning and site restoration requirements supersede any city, town or county standard, rule, requirement or ordinance that is related to the decommissioning or restoration of a power plant unless otherwise specified.
16. Requires the removal of a solar energy power plant to include all above ground components, including solar arrays, transformers, battery energy storage systems, above ground collection cables and roles.
17. Requires the removal of a wind energy power plant to include all above ground components, including turbines, blades, nacelles, towers, transformers, above ground collection cables and poles.
18. Requires the removal of a power plant to comply with the following:
a) foundations and buried project components, other than buried collection lines, must be removed to a depth of at least 36 inches, or a lesser depth as prescribed by a city, town or county;
b) buried collection lines must be removed to a depth of at least 36 inches; and
c) removal activities must be completed within 18 months after decommissioning initiation unless otherwise approved by the city, town or county.
19. Requires the restoration of each site to include:
a) minimizing ground disturbance and restoring the site to its original ground contours, except when restoring the site to its original ground contours would be unduly burdensome or impossible, or coordinating with the landowner to restore the site to an alternate contour;
b) reasonably restoring and reestablishing disturbed on-site soils and vegetation to:
i. a condition that is consistent with the natural condition of the site;
ii. a condition that reasonably approximates the condition of the site before construction of the power plant; or
iii. an alternate condition on agreement with the landowner;
c) adequately restoring paved roads on the site to their original condition or on agreement with the landowner, retaining roads installed by the power plant owner or operator;
d) retaining, on agreement with the landowner, access roads, fencing, associated drainage improvements and any other residual minor improvements;
e) removing and remediating any hazardous materials and waste; and
f) completing site restoration activities within 18 months after decommissioning completion unless otherwise approved by the city, town or county.
20. Allows a city, town or county, if a power plant owner or operator fails to complete decommissioning and site restoration within the time prescribed after providing reasonable notice to the landowner, to enter the site to initiate or complete decommissioning or site restoration pursuant to the Plan.
21. Requires, after the power plant owner or operator completes the decommissioning of a power plant and restoration of the power plant site:
a) the power plant owner to notify the city, town or county within thirty days after the date on which the owner or operator completes decommissioning and restoration; and
b) the city, town or county to certify to the power plant owner or operator that decommissioning and restoration is complete within 30 days after the date on which the city, town or county receives notice from the power plant owner or operator.
22. Releases the power plant owner or operator from any obligation after the city, town or county certifies that decommissioning and restoration is complete.
23. Requires the city, town or county, after certification that decommissioning and restoration is complete, to return or release any remaining financial assurance.
Financial Assurance
24. Requires a power plant owner or operator, beginning on a date determined by the city, town or county where a power plant is located, to continuously maintain financial assurance, including in the form of a bond or parent guarantee, in an amount equal to the cost to decommission the power plant and restore the power plant site, net salvage value, as determined by the city, town or county where the power plant is located and that is reasonably based on the estimate provided in the Plan.
25. Requires the power plant owner or operator to update the cost estimate every 10 years to ensure an accurate estimation of costs associated with decommissioning, equipment value and site restoration, adjusted for inflation.
26. Allows the city, town or county to use the financial assurance to cover the costs of:
a) initiating or completing decommissioning or site restoration as described in the Plan; or
b) restoring a power plant to function or operation, if the power plant owner or operator violates a permit condition.
27. Requires the power plant owner, if a power plant owner sells the power plant to a public service corporation regulated by the Arizona Corporation Commission, to provide a notice of the sale to the city, town or county.
28. Requires the city, town or county, within 15 days of receiving the notice, to waive the requirements and return or release any financial assurance provided to the city, town or county to the power plant owner.
29. Applies the financial assurance requirements to a power plant that begins commercial operations before, on and after the general effective date.
Liability Insurance for a Power Plant
30. Requires a power plant owner or operator to maintain an insurance policy or other indemnification agreement that results in coverage of any reasonable liability of the city, town or county where the power plant is located arising from the power plant owner's or operator's actions or negligence related to the construction, operation or decommissioning of the power plant or restoration of the site.
31. Requires a power plant owner or operator to immediately provide written notice of any change in the insurance policy or other indemnification agreement to the city, town or county where the power plant is located.
Miscellaneous
32. Applies the solar energy power plant regulations to a solar energy power plant that is the subject of a permit application that is submitted to a city, town or county on the effective date.
33. Stipulates the solar energy power plant regulations do not apply to a small-scale solar energy power plant that is mounted on a residential, commercial or industrial roof or structure, that is used primarily for on-site power and that results in only residual power returning to the grid.
34. Becomes effective on the general effective date.
Amendment Adopted by Committee
1. Requires the owner or operator of a power plant to maintain the plant in good condition and repair and to ensure that the plant remains functional and in continuous operation until decommissioning of the plant is initiated.
2. Stipulates that the prescribed decommissioning and site restoration requirements supersede any city, town or county standard, rule, requirement or ordinance that is related to the decommissioning or restoration of a power plant unless otherwise specified.
3. Modifies the requirements for site restoration.
4. Specifies the site must be restored within 18 months of the completion of decommissioning.
5. Applies the prescribed regulations to a solar energy power plant that is the subject of a permit application that is submitted to a city, town or county on the effective date.
6. Stipulates that the regulations do not apply to small scale solar energy power plants that are mounted on residential, commercial or industrial structures and that are used primarily for on-site power.
7. Makes technical and conforming changes.
House Action Senate Action
NREW 2/14/23 DP 6-2-1-1 NREW 3/30/23 DPA 4-3-0
3rd Read 3/1/23 31-28-1
Prepared by Senate Research
March 30, 2023
RA/slp