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House Engrossed
decommissioning; solar and wind; standards |
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State of Arizona House of Representatives Fifty-sixth Legislature First Regular Session 2023
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HOUSE BILL 2618 |
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An Act
amending title 30, Arizona Revised Statutes, by adding chapters 7 and 8; relating to power.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Title 30, Arizona Revised Statutes, is amended by adding chapters 7 and 8, to read:
CHAPTER 7
SOLAR ENERGY POWER PLANTS
ARTICLE 1. GENERAL PROVISIONS
30-901. Local government; requirements; procedures
A. A city, town or county may adopt zoning standards, site specific conditions and permitting requirements or procedures for a solar energy power plant that is located in the city, town or county.
B. An applicant for a solar energy power plant shall comply with the requirements or procedures for a solar energy power plant that are adopted by the city, town or COUNTY in which the solar energy power plant is to be located.
30-902. Transfer or sale
A. The transfer of a Solar Energy Power Plant or Special Use Permit or the sale of the entity owning the solar energy power plant may not occur without written acceptance by the transferee of the transferor's obligations under this chapter. A transfer or sale does not eliminate the liability or responsibility of an applicant or of any other party under this chapter for acts or omissions occurring before the transfer or sale.
B. For a transfer of unit ownership, the city, town or county may reassess the amount of any financial assurance required under section 30-905 and the solar energy power plant project owner or operator shall reimburse any reasonable costs incurred by the city, town or county to obtain the reassessment.
30-903. Cessation of use; abandonment; damage; applicability
A. If a part of a Solar Energy Power Plant is damaged or if a Solar Energy Power Plant violates a permit condition imposed by a city, town or county, the solar energy power plant owner or operator shall cure any damage or deficiency within ninety days after written notice from the city, town or county. If it is not reasonably possible for the solar energy power plant owner or operator to cure the damage or deficiency within ninety days after receiving the written notice, the solar energy power plant owner or operator shall provide the city, town or county with a plan to cure the damage or deficiency as soon as reasonably possible.
B. If a Solar Energy Power Plant remains nonfunctional or inoperative for a continuous period of at least one year, the applicant or its successors or assigns, without any further action by the city, town or county, shall remove the system and restore the site at its own expense as prescribed in section 30-904. If it is not reasonably possible for a solar energy power plant owner or operator to restore the solar energy power plant to be functional or operational within one year, the solar energy power plant owner or operator shall provide the city, town or county with a plan to restore the solar energy power plant to be functional or operational as soon as reasonably possible.
C. THIS section applies to a solar energy power plant that begins commercial operations before, on and after the effective date of this section.
30-904. Decommissioning and site restoration; applicability
A. A solar energy power plant owner or operator shall provide a city, town or county where the solar energy power plant is located with a decommissioning and site restoration plan as prescribed in this section.
B. The Decommissioning and site restoration Plan shall state how the solar energy power plant will be decommissioned and the site will be restored and shall include all of the following:
1. An estimate of the cost of decommissioning and restoration, net of salvage value. The estimate shall be made by a person who is qualified to estimate decommissioning and site restoration costs and SALVAGE value for the solar energy power plant.
2. The financial resources that the solar energy power plant will use to accomplish decommissioning and restoration.
3. Financial assurances that comply with section 30-905.
C. A solar energy power plant owner or operator shall remove a solar energy power plant and restore a solar energy power plant site as prescribed in this section unless a city, town or county determines that a provision of this section relating to restoration is not necessary.
D. The removal of a solar energy power plant shall:
1. Include all above ground components, including Solar arrays, transformers, battery energy storage systems, above ground collection cables and poles and fencing.
2. Comply with the following:
(a) Foundations and buried project components, other than buried collection lines, must be removed to a depth of at least thirty-six inches or as prescribed by a city, town or county.
(b) Buried collection lines must be removed to a depth of at least thirty-six inches. Collection lines below a depth of thirty-six inches may remain in place unless otherwise prescribed by a city, town or county.
(c) Removal activities must be completed within eighteen months after decommissioning initiation unless otherwise approved by the city, town or county.
E. The restoration of each site shall include:
1. Minimizing ground disturbance and restoring the site to its original ground contours, if possible, or coordinating with the landowner to restore the site.
2. Reasonably restoring and reestablishing disturbed on-site soils and vegetation by using native seed mix and proper soil nutrients, including fertilizer and lime, if necessary, to provide and sustain growth or in coordination with the landowner to allow desired vegetation to be planted or returning the on-site soils and vegetation to their original conditions.
3. Adequately restoring paved roads to their original condition following decommissioning activities OR LEAVING IMPROVEMENTS in place with the landowner's consent.
4. Allowing access roads, fencing, associated drainage improvements and any other residual minor improvements to remain with the landowner's written consent.
5. Removing and remediating any hazardous materials and waste.
F. After providing reasonable notice to the property owner, the city, town or county may enter the site to effect or complete decommissioning pursuant to the Decommissioning Plan.
G. After the solar energy power plant owner or operator completes the decommissioning of a solar energy power plant and restoration of the solar energy power plant site as prescribed in this section:
1. The solar energy power plant owner or operator shall notify the city, town or county within thirty days after the date on which the owner or operator completes decommissioning and restoration.
2. The city, town or county shall certify to the solar energy power plant owner or operator that decommissioning and restoration is complete within thirty days after the date on which the city, town or county receives notice from the solar energy power plant owner or operator.
H. After the city, town or county certifies that decommissioning and restoration is complete:
1. The solar energy power plant owner or operator is released from any obligation prescribed in this chapter.
2. The city, town or county shall return or release any remaining financial assurance required under section 30-905.
I. THIS section applies to a solar energy power plant that begins commercial operations before, on and after the effective date of this section.
30-905. Financial assurance; applicability
A. Beginning on a date determined by the city, town or county where a solar energy power plant is located, A solar energy power plant owner or operator shall continuously maintain financial assurance, including in the form of a bond or parent guarantee, in an amount equal to the cost to decommission the solar energy power plant and restore the solar energy power plant site as prescribed in section 30-904, net salvage value, as determined by the city, town or county where the solar energy power plant is located. The solar energy power plant owner or operator shall update the cost estimate every ten years to ensure an accurate estimation of costs associated with decommissioning, equipment value and site restoration, adjusted for inflation.
B. The city, town or county may use the financial assurance for the costs of correcting any other acts of noncompliance with this chapter.
C. If a solar energy power plant owner sells the solar energy power plant to a public service corporation regulated by the corporation commission, the solar energy power plant owner shall provide a notice of the sale to the city, town or county. Within fifteen days after receiving the notice, the city, town or county shall waive the requirements of this section and return or release any financial assurance provided to the city, town or county to the solar energy power plant owner.
D. THIS section applies to a solar energy power plant that begins commercial operations before, on and after the effective date of this section.
30-906. Liability insurance required; applicability
a. A solar energy power plant owner or operator shall maintain an insurance policy that includes coverage of any reasonable liability of the city, town or county where the solar energy power plant is located related to the construction and operation of the solar energy power plant.
B. A solar energy power plant OWNER or operator shall immediately provide written notice of any change in the insurance policy described in subsection A of this section to the city, town or county where the solar energy power plant is located.
C. THIS section applies to an owner or operator of a solar energy power plant that begins commercial operations before, on and after the effective date of this section.
CHAPTER 8
WIND ENERGY POWER PLANTS
ARTICLE 1. GENERAL PROVISIONS
30-1001. Local government; requirements; procedures
A. A city, town or county may adopt zoning standards, site specific conditions and permitting requirements or procedures for a wind energy power plant that is located in the city, town or county.
B. An applicant for a wind energy power plant shall comply with the REQUIREMENTS or procedures for a wind energy power plant that are adopted by the city, town or county in which the wind energy power plant is to be located.
30-1002. Transfer or sale
A. The transfer of a Wind Energy power plant or Special Use Permit or the sale of the entity owning the wind energy power plant may not occur without written acceptance by the transferee of the transferor's obligations under this chapter. A transfer or sale may not eliminate the liability or responsibility of an applicant or of any other party under this chapter for acts or omissions occurring before the transfer or sale.
B. For a transfer of unit ownership, the city, town or county may reassess the amount of any financial assurance required under section 30-1005 and the wind energy power plant owner or operator shall reimburse any reasonable costs incurred by the city, town or county to obtain the reassessment.
30-1003. Cessation of use; abandonment; damage; applicability
A. If a part of a Wind energy power plant is damaged or if a Wind energy power plant violates a permit condition imposed by a city, town or county, the wind energy power plant owner or operator shall cure any damage or deficiency within ninety days after written notice from the city, town or county. If it is not reasonably possible for the wind energy power plant owner or operator to cure the damage or deficiency within ninety days after receiving the written notice, the wind energy power plant owner or operator shall provide the city, town or county with a plan to cure the damage or deficiency as soon as reasonably possible.
B. If a Wind energy power plant remains nonfunctional or inoperative for a continuous period of at least one year, the applicant or its successors or assigns, without any further action by the city, town or county, shall remove the wind energy power plant and restore the site at its own expense as prescribed in section 30-1004. If it is not reasonably possible for a wind energy power plant owner or operator to restore the wind energy power plant to be functional or operational within one year, the wind energy power plant owner or operator shall provide the city, town or county with a plan to restore the wind energy power plant to be functional or operational as soon as reasonably possible.
C. THIS section applies to a wind energy power plant that begins commercial operations before, on and after the effective date of this section.
30-1004. Decommissioning and site restoration; applicability
A. A wind energy power plant owner or operator shall provide a city, town or county where the wind energy power plant is located with a decommissioning and site restoration plan as prescribed in this section.
B. The Decommissioning and site restoration Plan shall state how the wind energy power plant will be decommissioned and the site will be restored and shall include all of the following:
1. An estimate of the cost of decommissioning and restoration, net of salvage value. The estimate shall be made by a person who is qualified to estimate decommissioning and site restoration costs and SALVAGE value for the wind energy power plant.
2. The financial resources that the wind energy power plant will use to accomplish decommissioning and restoration.
3. Financial assurances that comply with section 30-1005.
C. A wind energy power plant owner or operator shall remove a wind energy power plant and restore a wind energy power plant site as prescribed in this section unless a city, town or county determines that a provision of this section relating to restoration is not necessary.
D. The removal of a wind energy power plant shall:
1. Include all above ground components, including turbines, blades, nacelles, towers, transformers, above ground collection cables and poles and fencing.
2. Comply with the following:
(a) Foundations and buried project components, other than buried collection lines, must be removed to a depth of at least thirty-six inches or as prescribed by a city, town or county.
(b) Buried collection lines must be removed to a depth of at least thirty-six inches. Collection lines below a depth of thirty-six inches may remain in place unless otherwise prescribed by a city, town or county.
(c) Removal activities must be completed within eighteen months after decommissioning initiation unless otherwise approved by the city, town or county.
E. The restoration of each site shall include:
1. Minimizing ground disturbance and restoring the site to its original ground contours, if possible, or coordinating with the landowner to restore the site.
2. Reasonably restoring and reestablishing on-site soils and vegetation by using native seed mix and proper soil nutrients, including fertilizer and lime, if necessary, to provide and sustain growth or in coordination with the landowner to allow desired vegetation to be planted or returning the on-site soils and vegetation to their original conditions.
3. Adequately restoring paved roads to their original condition following decommissioning activities or leaving improvements in place with the landowner's consent.
4. Allowing access roads, fencing, associated drainage improvements and any other residual minor improvements to remain with the landowner's written consent.
5. Removing and remediating any hazardous materials and waste.
F. After providing reasonable notice to the property owner, the city, town or county may enter the site to effect or complete decommissioning pursuant to the Decommissioning Plan.
G. After the wind energy power plant owner or operator completes the decommissioning of a wind energy power plant and restoration of the wind energy power plant site as prescribed in this section:
1. The wind energy power plant owner or operator shall notify the city, town or county within thirty days after the date on which the owner or operator completes decommissioning and restoration.
2. The city, town or county shall certify to the wind energy power plant owner or operator that decommissioning and restoration is complete within thirty days after the date on which the city, town or county receives notice from the wind energy power plant owner or operator.
H. After the city, town or county certifies that decommissioning and restoration is complete:
1. The wind energy power plant owner or operator is released from any obligation prescribed in this chapter.
2. The city, town or county shall return or release any remaining financial assurance required under section 30-1005.
I. THIS section applies to a wind energy power plant that begins commercial operations before, on and after the effective date of this section.
30-1005. Financial assurance; applicability
A. Beginning on a date determined by the city, town or county where a wind energy power plant is located, A wind energy power plant owner or operator shall continuously maintain financial assurance, including in the form of a bond or parent guarantee, in an amount equal to the cost to decommission the wind energy power plant and restore the wind energy power plant site as prescribed in section 30-1004, net salvage value, as determined by the city, town or county where the wind energy power plant is located. The wind energy power plant owner or operator shall update the cost estimate every five years to ensure an accurate estimation of costs associated with decommissioning, equipment value and site restoration, adjusted for inflation.
B. The city, town or COUNTY may use the financial assurance for the costs of correcting any other acts of noncompliance with this chapter.
C. If a wind energy power plant owner sells the wind energy power plant to a public service corporation regulated by the corporation commission, the wind energy power plant owner shall provide a notice of the sale to the city, town or county. Within fifteen days after receiving the notice, the city, town or county shall waive the requirements of this section and return or release any financial assurance provided to the city, town or county to the wind energy power plant owner.
D. THIS section applies to a wind energy power plant that begins commercial operations before, on and after the effective date of this section.
30-1006. Liability insurance required; applicability
a. A WIND energy power plant owner or operator shall maintain an insurance policy that includes coverage for any WIND energy power plant related liability of the city, town or county where the WIND energy power plant is located.
B. A WIND energy power plant OWNER or operator shall immediately provide written notice of any change in the insurance policy described in subsection A of this section to the city, town or county where the WIND energy power plant is located.
C. THIS section applies to an owner or operator of a WIND energy power plant that begins commercial operations before, on and after the effective date of this section.