HB2223 - 571R

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

Section 1. Section 11-254.07, Arizona Revised Statutes, is amended to read:

START_STATUTE11-254.07. Renewable energy incentive districts; definition

A. The board of supervisors may designate a renewable energy incentive district in any unincorporated area of the county if all of the following apply:

1. The proposed district consists of a vacant or underused parcel or parcels of property, or any other parcel or parcels of property the board of supervisors deems suitable for renewable energy and storage equipment, that are appropriate sizes for the construction and operation of renewable energy and storage equipment. The board of supervisors may designate large portions of unincorporated county land or noncontiguous portions of land as a renewable energy incentive district or districts.

2. The proposed district is located within an area of the county so that the construction and operation of renewable energy and storage equipment would not be incompatible with other uses of property in the area considering factors relating to the construction and operation of renewable energy and storage equipment, including:

(a) The ability to adequately buffer the district from surrounding incompatible uses.

(b) The noise level emanating from the district alone and in relation to ambient noise levels at the perimeter of the property falling within the proposed district and relative to other adjacent lands.

(c) The extent to which the district would be located in proximity to existing transportation and electrical transmission corridors.

(d) Compatibility with commercial and military air space requirements.

3. The board of supervisors has evaluated the extent to which the proposed district is consistent with the existing county comprehensive plan and has determined that the proposed district does not conflict with the plan. The board of supervisors may determine that the district is not a major amendment to the county comprehensive plan pursuant to section 11-805.

B. Before establishing a renewable energy incentive district, the board of supervisors shall:

1. Identify the boundaries of the proposed district.

2. Notify the owners of private property in the proposed district, property managers of federal and state land in the proposed district and adjacent property owners by first class mail sent to the addresses on the most recent tax roll. The notice shall be mailed at least fifteen days before the hearing held to adopt the energy incentive plan.

C. If the board of supervisors establishes a renewable energy incentive district, it shall adopt a renewable energy incentive plan to encourage the construction and operation of renewable energy and storage equipment in the district. The plan may include:

1. Expedited zoning or rezoning procedures.

2. Expedited processing of plans, proposals and permits.

3. Waivers or abatement of county zoning fees, processing fees, and county improvement district fees and assessments for development activities.

4. Waiver or abatement of development standards and procedural requirements.

D. A wind farm as defined in section 30-301 that is developed within a renewable energy incentive DISTRICT shall comply with the requirements of title 30, chapter 2.

D. E. For the purposes of this section, "renewable energy and storage equipment" has the same meaning prescribed in section 42-14155. END_STATUTE

Sec. 2. Title 11, chapter 6, Arizona Revised Statutes, is amended by adding article 7, to read:

ARTICLE 7. WIND FARMS

START_STATUTE11-881. Definitions

In this article, unless the context otherwise requires:

1. "Owner" has the same meaning prescribed in section 30-301.

2. "wind farm" has the same meaning prescribed in section 30-301. END_STATUTE

START_STATUTE11-882. Wind farms; construction and conditional use permits; hearing; notice; costs

A. THE county PLANNING AND ZONING COMMISSION SHALL hold a public hearing to consider AND ACT ON an APPLICATION FOR a permit for construction and CONDITIONAL USE of a wind farm within NINETY days after the county planning and zoning commission deems the application complete.

b. The county planning and zoning commission shall provide notice of the time, location and purpose of the public hearing to consider the application for a permit for construction and conditional use of a wind farm by doing all of the following:

1. Publishing the notice at least thirty days before the hearing in a newspaper of general circulation in the county where the proposed wind farm is located.

2. PoSTING the notice at least THIRTY DAYS BEFORE THE PUBLIC HEARING aT ONE-HALF MILE INTERVALS along THE PERIMETER OF THE proposed WIND FARM location AND at one-half mile intervals ALONG ANY PUBLIC ROAD located along the PERIMETER OF THE proposed WIND FARM location.

3. Mailing the notice by CERTIFIED MAIL, RETURN RECEIPT REQUESTED, TO ALL ADJOINING LANDOWNERS and all PROPERTY OWNERS WITHIN SIX MILES OF THE boundary of the proposed wind farm. The certified mail SHALL BE POSTMARKED at least THIRTY CALENDAR DAYS BEFORE THE DATE OF THE PUBLIC HEARING.

4. By regular FIRST-CLASS MAIling the notice TO ALL INTERESTED PERSONS WHO HAVE REQUESTED NOTICE OF a PUBLIC HEARING BEFORE THE county PLANNING AND ZONING COMMISSION. The regular first-class mail shall be POSTMARKED at least THIRTY CALENDAR DAYS BEFORE THE DATE OF THE PUBLIC HEARING.

C. THE COUNTY SHALL REQUIRE THE WIND FARM OWNER TO PAY THE COSTS OF Providing the NOTICE as REQUIRED by THIS SECTION. END_STATUTE

START_STATUTE11-883. Indemnification; financial surety; decommissioning; cleanup

A. A cOUNTy SHALL ADOPT THE FOLLOWING REQUIREMENTS IN ISSUING a PERMIT FOR THE construction and conditional use OF a wind farm ON PUBLIC or PRIVATE LAND:

1. THE wind farm OWNER must SUBMIT TO THE COUNTY AN INDEMNITY BOND OR OTHER ASSURANCE APPROVED BY THE COUNTY that does all of the following:

(a) INDEMNIFies AND HOLDs HARMLESS THE COUNTY and ITS ELECTED AND APPOINTED OFFICERS, AGENTS AND EMPLOYEES FROM AND AGAINST ALL CLAIMS, DEMANDS OR CAUSES OF ACTION AND THE RESULTING LOSSES, COSTS, EXPENSES, ATTORNEY FEES, LIABILITIES, DAMAGES, ORDERS, JUDGMENTS OR DECREES SUSTAINED BY THE COUNTY OR ANY THIRD PARTY ARISING OUT OF OR RESULTING FROM THE OWNER'S OPERATION OF THE WIND FARM THAT RESULTs IN ANY CLAIM FOR DAMAGES, INCLUDING BODILY INJURY, DEATH OR ANY INJURY TO OR DESTRUCTION OF PROPERTY, INCLUDING ANY LOSS OF USE of the property THAT IS CAUSED IN WHOLE OR IN PART BY THE OWNER OR ANYONE DIRECTLY EMPLOYED BY THE OWNER.

(b) DEFENds, INDEMNIFies AND HOLDs THE COUNTY HARMLESS FROM AND AGAINST ALL CLAIMS, CAUSES OF ACTION, DEMANDS AND LIABILITY, INCLUDING DAMAGES, COSTS, EXPENSES, ASSESSMENTS, PENALTIES, FINES, LOSSES, JUDGMENTS

AND ATTORNEY FEES THAT THE COUNTY MAY incur DUE TO THE EXISTENCE OR DISCOVERY OF ANY HAZARDOUS SUBSTANCES ON THE PROPERTY where the wind farm is located OR THE MIGRATION OF ANY HAZARDOUS SUBSTANCES TO OTHER PROPERTIES OR RELEASED INTO THE ENVIRONMENT, TO THE EXTENT the CLAIMS OR DAMAGES ARE DIRECTLY ATTRIBUTABLE TO THE OWNER'S ACTIVITIES ON THE WIND FARM.

(c) PROVIDEs THAT THE ASSURANCES, COVENANTS AND REPRESENTATIONS RELATING TO THE INDEMNIFICATION SHALL BE KEPT IN FULL FORCE AND EFFECT DURING THE TERM OF THE AGREEMENT WITH THE COUNTY FOR THE construction and CONDITIONAL USE OF THE WIND FARM AND THAT THE indemnification WILL BE BINDING ON ALL SUCCESSORS AND ASSIGNS OF THE OWNER.

2. THE OWNER OF THE WIND FARM must PROVIDE FINANCIAL SURETY IN A FORM AND AMOUNT SATISFACTORY TO THE COUNTY and the United States bureau of land management IF THE WIND FARM IS ON PUBLIC LANd. The financial surety shall be sufficient to COVER THE COSTS OF CLEANUP AND MITIGATION IN THE EVENT OF A CASUALTY EVENT, PLUS A TEN PERCENT CONTINGENCY. THE FINANCIAL SURETY AMOUNT SHALL BE BASED ON A maximum WORST-CASE SCENARIO OF EXTREME DAMAGE OF ONE WIND TURBINE BY A CASUALTY EVENT ON THE PROJECT SITE AND ADJACENT LAND or waterways, DEATH AND OTHER ADVERSE HEALTH CONSEQUENCES TO PERSONS.

3. That any indemnity bond, FINANCIAL surety or other assurance required pursuant to paragraphs 1 and 2 of this subsection INCLUDE a PROVISION FOR RELEASING THE monieS TO THE COUNTY IN THE EVENT CLEANUP AND MITIGATION ARE NOT COMPLETED IN A TIMELY MANNER.

4. That any indemnity bond, financial surety or other assurance required pursuant to paragraphs 1 and 2 of this subsection BE MAINTAINED FOR THE LIFE OF THE PROJECT. PROOF OF RECERTIFICATION OF THE indemnity bond, FINANCIAL SURETY or other assurance INSTRUMENT MUST BE SUBMITTED TO THE COUNTY ANNUALLY.

5. DECOMMISSIONING OF A WIND FARM must INCLUDE AT A MINIMUM all of the following:

(a) REMOVAL OF ALL PROJECT MATERIALS, REGARDLESS OF THEIR DEPTH BELOW THE SURFACE, INCLUDING TURBINES, SUBSTATIONS, TOWER FOUNDATIONS, BURIED CABLES, TRANSMISSION LINES, ROADWAY PAVING AND ANY OTHER NONNATIVE MATERIALS, AND THE REMOVAL OR REMEDIATION OF CONTAMINATED SOIL, REGARDLESS OF ITS DEPTH BELOW the SURFACE.

(b) PROHIBIT during the removal and remediation of the wind farm THE DISPOSAL, INCINERATION OR BURIAL ON-SITE OR ON ANY LAND WITHIN THE COUNTY all project materials.

(c) THE OWNER OF THE WIND FARM TO PROVIDE FINANCIAL SURETY IN A FORM AND AMOUNT SATISFACTORY TO COVER THE COST OF cleanup, decommissioning and RESTORING THE SITE TO ITS ORIGINAL CONDITION ON TERMINATION OF THE PROJECT OR DECOMMISSIONING AFTER THE LIFE OF THE PROJECT. DECOMMISSIONING monies SHALL BE AN AMOUNT EQUAL TO THE TOTAL COSTS FOR DECOMMISSIONING THE SITE, PLUS A TEN PERCENT CONTINGENCY. DECOMMISSIONING monies SHALL BE MAINTAINED IN THE FORM OF A PERFORMANCE BOND, SURETY BOND, BANK LETTER OF CREDIT, STABLE PARENT COMPANY GUARANTEE OR OTHER FORM OF FINANCIAL ASSURANCE AS APPROVED BY THE COUNTY. FINANCIAL SURETY SHALL BE MAINTAINED FOR THE LIFE OF THE PROJECT. PROOF OF RECERTIFICATION OF THE FINANCIAL SURETY INSTRUMENT shall BE SUBMITTED TO THE COUNTY ANNUALLY.

(d) THE FINANCIAL SURETY required pursuant to subdivision (c) of this paragraph shall ensure THAT the CLEANUP, MITIGATION, REMOVAL AND DECOMMISSIONING WILL BE UNDERTAKEN AND COMPLETED WITHOUT REGARD TO THE THEN EXISTING OWNERSHIP OF OR TITLE TO the wind farm FACILITY AND THE property where the wind farm is located. The financial surety SHALL BE BINDING ON ALL SUCCESSORS AND ASSIGNS OF THE OWNER OF THE WIND FARM PROJECT. THE financial surety SHALL BE STRUCTURED TO SURVIVE any BANKRUPTCY, DISSOLUTION, INSOLVENCY OR OTHER TERMINATION OF THE WIND FARM OWNERship AS A LEGAL ENTITY.

(e) The amount of the FINANCIAL SURETY required pursuant to subdivision (c) of this paragraph BE ADJUSTED ANNUALLY FOR INFLATION BASED ON THE CONSUMER PRICE INDEX of the United States department of labor, bureau of labor statistics.

(f) ANY FINANCIAL DOCUMENT EVIDENCING THE MAINTENANCE OF THE cleanup, DECOMMISSIONING and restoring monieS required pursuant to subdivision (c) of this paragraph SHALL INCLUDE PROVISIONS FOR RELEASING THE monieS TO THE COUNTY IN THE EVENT DECOMMISSIONING, restoring and cleanup are NOT COMPLETED IN A TIMELY MANNER.

B. EVERY THREE YEARS, THE OWNER OF THE WIND FARM SHALL RETAIN AN INDEPENDENT ENGINEER registered pursuant to title 32, chapter 1 and APPROVED BY THE COUNTY TO REESTIMATE THE TOTAL COST OF cleanup, DECOMMISSIONING and restoring the wind farm and property. The engineer shall ATTEST THAT THE VALUE OF THE FINANCIAL SURETY INSTRUMENT required pursuant to subsection A, paragraph 5, subdivision (c) of this section IS APPROPRIATE. THe engineer's REPORT SHALL BE FILED WITH THE COUNTY AND SHALL INCORPORATE ANY NEW INDUSTRY INFORMATION the wind farm owner has obtained SINCE THE LAST COST DETERMINATION. END_STATUTE

START_STATUTE11-884. Ownership change; county approval; notification

A. The county board of supervisors shall approve any CONVEYANCE, TRANSFER, ASSIGNMENT OR OTHER DIVESTITURE OF ownership of a WIND FARM before the transfer of ownership. THE BOARD'S APPROVAL SHALL BE contingent ON AN ASSESSMENT OF THE potential BUYER'S FINANCIAL, TECHNICAL, LEGAL AND CHARACTER QUALIFICATIONS.

B. the owner of a wind farm shall provide WRITTEN NOTICE TO THE COUNTY board of supervisors IMMEDIATELY OF a planned CONVEYANCE, TRANSFER, ASSIGNMENT OR OTHER DIVESTITURE of the ownership of the wind farm. The notice shall be provided to the county NOt LATER THAN TWENTY DAYS before THE proposed EFFECTIVE DATE OF the CONVEYANCE, TRANSFER, ASSIGNMENT OR OTHER DIVESTITURE. END_STATUTE

START_STATUTE11-885. Impact on private property; diminution in value; compensation

A. IF THE ISSUANCE OF A construction or conditional use PERMIT FOR A WIND FARM reduces any EXISTING RIGHTS TO USE, DIVIDE, SELL OR POSSESS PRIVATE REAL PROPERTY OR if the construction or conditional use of the wind farm REDUCES THE FAIR MARKET VALUE OF THE real PROPERTY, THE PROPERTY OWNER IS ENTITLED TO JUST COMPENSATION FROM THE COUNTY.

b. IF the county claims the construction or conditional use PERMIT ISSUED IS exempt pursuant to SECTION 12-1134, SUBSECTION B, the burden is on the county to demonstrate the basis of the exemption.

C. ON THE ISSUANCE OF A construction or CONDITIONAL USE PERMIT for a WIND FARM, a real PROPERTY OWNER whose existing rights are reduced or whose fair market value of the real property is reduced HAS A CAUSE OF ACTION FOR JUST COMPENSATION IN A COURT IN THE COUNTY IN WHICH THE real PROPERTY IS LOCATED. AN ACTION FOR JUST COMPENSATION BASED ON DIMINUTION IN VALUE OR USE shall be asserted WITHIN THREE YEARS after THE EFFECTIVE DATE OF ISSUANCE OF THE construction or conditional use PERMIT OR after THE FIRST DATE that THE REDUCTION OF THE EXISTING RIGHTS TO USE, DIVIDE, SELL OR POSSESS the real PROPERTY APPLIES TO THE real property, WHICHEVER IS LATER. THE COUNTY AND PROPERTY OWNER may REACH AN AGREEMENT ON THE AMOUNT OF JUST COMPENSATION TO BE PAID before commencement of a formal cause of action.

D. THE CLAIM FOR JUST COMPENSATION SHALL BE BASED ON A DETERMINATION OF LOSS IN VALUE OR USE ISSUED BY AN APPRAISER LICENSED pursuant to title 32, chAPTER 36, ARTICLE 2.

E. THE REMEDY CREATED BY THIS SECTION IS IN ADDITION TO ANY OTHER REMEDY THAT IS PROVIDED BY THE LAWS AND CONSTITUTION OF THIS STATE OR THE UNITED STATES AND IS NOT INTENDED TO MODIFY OR REPLACE ANY OTHER REMEDY.

F. THIS SECTION does not PROHIBIT THE COUNTY FROM REACHING AN AGREEMENT WITH A real PROPERTY OWNER TO WAIVE A CLAIM FOR DIMINUTION IN VALUE OR USE based on the issuance of a wind farm construction or conditional use permit. END_STATUTE

Sec. 3. Title 19, chapter 1, article 4, Arizona Revised Statutes, is amended by adding section 19-144, to read:

START_STATUTE19-144. Wind farms; referendum petition again county action

A. ON THE APPROVAL by the board of supervisors OF THE issuance of a construction or conditional use permit for a wind farm, A PERSON OR ORGANIZATION MAY FILE A REFERENDUM PETITION AGAINST THE ISSUANCE of the wind farm construction or CONDITIONAL USE PERMIt.

B. A REFERENDUM PETITION AND ELECTION AGAINST A construction or conditional use PERMIT MAY BE LIMITED TO THE SUPERVISORY DISTRICT IN WHICH THE PROPOSED WIND FARM IS LOCATED.

C. THE WHOLE NUMBER OF VOTES CAST AT THE ELECTION AT WHICH A COUNTY SUPERVISOR WAS CHOSEN LAST PRECEDING THE SUBMISSION OF THE APPLICATION FOR A PETITION AGAINST A wind farm construction or conditional use permit SHALL BE THE BASIS ON WHICH THE NUMBER OF ELECTORS OF THE DISTRICT REQUIRED TO FILE A REFERENDUM PETITION SHALL BE COMPUTED.

D. THE referendum PETITION SHALL BE FILED WITH THE COUNTY CLERK WITHIN SIXTY DAYS after the board of supervisors APPROVes THE wind farm construction or conditional use PERMIT. END_STATUTE

Sec. 4. Title 30, Arizona Revised Statutes, is amended by adding chapter 2, to read:

CHAPTER 2

WIND FARMS

ARTICLE 1. GENERAL PROVISIONS

START_STATUTE30-301. Definitions

In this chapter, unless the context otherwise requires:

1. "OWNER" MEANS THE PERSON, CORPORATION, ASSOCIATION OR OTHER FIRM that OWNS A MAJORITY INTEREST IN THE WIND FARm PROJECT OR wind farm PROJECT SITE AND has authority to do both of the following:

(a) MAKE DECISIONS AFFECTING THE PROJECT OR PROJECT SITE.

(b) BIND THE wind farm PROJECT TO THE REQUIREMENTS OF ANY CONTRACT, LEASE, STATUTE, ORDINANCE, PERMIT OR OTHER AGREEMENT RELATED TO THE WIND FARM PROJECT OR PROJECT SITE.

2. "WIND FARM":

(a) Includes UTILITY-SCALE WIND TURBINES AND ASSOCIATED FACILITIES THAT HAVE AN INTERCONNECTION TO THE ELECTRICAL GRID AND THAT ARE DESIGNED FOR OR CAPABLE OF OPERATION AT AN AGGREGATE CAPACITY OF FIVE OR MORE MEGAWATTS.

(b) DOES NOT INCLUDE ONE OR MORE WIND TURBINES AND ASSOCIATED FACILITIES THAT ARE PRIMARILY DEDICATED TO PROVIDING ELECTRICITY TO A SINGLE CUSTOMER AT A SINGLE LOCATION. END_STATUTE

START_STATUTE30-302. Location; consent; prohibition

A. NOTWITHSTANDING ANY OTHER LAW and except as provided in subsection B of this section, A WIND FARM MAY NOT BE LOCATED WITHIN SIX MILES OF ANY PROPERTY OWNED BY ANOTHER PERSON UNLESS THE PROPERTY OWNER CONSENTS TO THE LOCATION OF THE WIND FARM IN WRITING.

B. A WIND farm MAY NOT BE LOCATED WITHIN TWELVE MILES OF ANY PROPERTY THAT IS ZONED for RESIDENTIAL use. END_STATUTE

START_STATUTE30-303. Public notice

A. Within ten days after the occurrence, THE OWNER OF A WIND FARM SHALL NOTIFY THE GOVERNING BODY OF any POLITICAL SUBDIVISION OF THIS STATE WITHIN A TWENTY-FIVE MILE RADIUS OF THE OUTER PERIMETER OF A PROPOSED WIND FARM WHEN either of the following occurs:

1. A PERMIT OR OTHER AUTHORIZATION TO INSTALL WIND OR OTHER METEoROLOGIcAL MONITORING DEVICES OR TO BEGIN NATURAL RESOURCE SURVEYS, WHICHEVER OCCURS FIRST, HAS BEEN GRANTED BY A FEDERAL AGENCy, THis STATE OR ANY POLITICAL SUBDIVISION OF THIS STATE.

2. A PRIVATE LANDOWNER HAS GRANTED ACCESS TO THE LANDOWNER'S PROPERTY TO INSTALL WIND OR OTHER METEOROLOGICAL MONITORING DEVICES OR TO BEGIN NATURAL RESOURCE SURVEYS.

B. WITHIN sixty DAYS after Receipt of notice made PURSUANT TO SUBSECTION A of this section, the governing body of the political subdivision of this state SHALL NOTIFY RESIDENTS of receipt of the notice By PROMINENTLY posting the notice ON THE official WEBSITE of the political subdivision of this state AND BY PLACING THE ITEM FOR DISCUSSION ON THE AGENDA OF THE political subdivision's GOVERNING BODY'S next PUBLIC MEETING. END_STATUTE

START_STATUTE30-304. Approvals; state agencies; annual consultation

A. Before THE APPLICATION FOR ANY LEASE OR CONDITIONAL USE PERMIT TO A FEDERAL AGENCY, THis STATE OR POLITICAL SUBDIVISION OF THIS STATE, OR THE EXECUTION OF A LEASE WITH A PRIVATE LANDOWNER, THE OWNER OF A WIND FARM SHALL OBTAIN THE APpROVAL OF all of the following:

1. THE state historic preservation office. The state historic preservation office shall issue an approval after review of ALL Potential GROUND DISTURBANCES AND PROPOSED MITIGATIONS, INCLUDING AN ASSESSMENT OF ANY ADVERSE EFFECT OR IMPACT TO CULTURAL PROPERTIES, NATIONAL REGISTERED HISTORIC DISTRICTS, ARCHAEOLOGICAL SITES AND UNMARKED BURIAL SITES associated with the proposed wind farm project.

2. THE ARIZONA GAME AND FISH DEPARTMENT. The Arizona game and fish department shall issue an approval after review and assessment of the IMPACTS of the proposed wind farm project ON WILDLIFE. THE WILDLIFE IMPACT review and ASSESSMENT SHALL INCLUDE A DETERMINATION OF WHETHER THE WIND FARM PROJECT WILL impact any of the following:

(a) ANY ENDANGERED, THREATENED OR OTHER SPECIAL STATUS SPECIES POPULATION OR THEIR HABITATs, INCLUDING RIPARIAN AREAS AND SIGNIFICANT TOPOGRAPHIC FEATURES.

(b) MIGRATORY BIRD AND MAMMALIAN SPECIES WHOSE MIGRATORY ROUTES TRAVERSE THE PROJECT AREA, INCLUDING ANY ADVERSE IMPACTS ON IMPORTANT BIRD

AREAS.

(d) HUNTING, FISHING AND WILDLIFE VIEWING OPPORTUNITIES, INCLUDING THE HABITAT, LIFE CYCLES, PREY AND FOOD CHAIN OF THE WILDLIFE, FISH AND BIRDS COMMONLY HUNTED IN THE areas WITHIN AND ADJACENT TO THE WIND FARM.

3. THE ARIZONA GEOLOGICAL SURVEY. The Arizona geological survey approval of the proposed wind farm project shall be based on AN ASSESSMENT OF KNOWN AND POTENTIAL GEOLOGIC HAZARDS, KNOWN AREAS OF EARTH FISSURES, BEDROCK INSTABILITY AND ANY LIMIT TO LAND USE, DISTURBANCE AND MANAGEMENT OF THE WIND FARM PROJECT.

4. THE FEDERAL AVIATION ADMINISTRATION. The federal aviation administration's approval shall be based on a review and DETERMINE IF THE PROPOSED WIND FARM project IS WITHIN A Federal Aviation Administration-DESIGNATED CIVILIAN AIRPORT RUNWAY CLEAR ZONE OR RUNWAY PROTECTION ZONE OR A MILITARY AIRFIELD CLEAR ZONE OR ACCIDENT POTENTIAL ZONE.

B. THE OWNER OF A WIND FARM SHALL ANNUALLY CONSULT WITH A SUPERVISOR OF THE NATURAL RESOURCE CONSERVATION district IN WHICH THE WIND FARM IS LOCATED. The consultation shall inCLUDe all of THE FOLLOWING:

1. PREVENTION AND CONTROL OF SOIL EROSION BY WATER AND WIND.

2. ERADICATION OF NOXIOUS GROWTHS AND INVASIVE VEGETATION.

3. RESEEDING OF ERADICATED AREAS.

4. IMPLEMENTATION OF SOIL HEALTH PRACTICES TO IMPROVE SOIL ORGANIC MATTER, sOIL STRUCTURE AND ITS WATER-HOLDING AND NUTRIENT-HOLDING CAPACITY.

5. REVIEW OF THE LAND, SOIL, WATER, PLANT COVER AND OTHER NATURAL RESOURCES WITHIN THE PERIMETER OF THE WIND FARM FOR THE PURPOSES OF MAINTAINING THE LAND IN A HEALTHY STATUS FOR EVENTUAL RESTORATION TO ITS ORIGINAL CONDITION. END_STATUTE

Sec. 5. Section 37-281.02, Arizona Revised Statutes, is amended to read:

START_STATUTE37-281.02. Leasing state lands for commercial purposes for more than ten years

A. All state lands are subject to lease as provided in this article for a term in excess of ten years, but not more than ninety-nine years, for commercial purposes to the highest and best bidder at public auction. The auction shall be conducted at the place, in the manner, and after the notice by publication provided for sales of such lands except as otherwise provided in this section. For commercial leases of state land more than three miles outside the boundaries of incorporated cities and towns having a population of ten thousand persons or less or more than five miles outside the boundaries of incorporated cities and towns having a population in excess of ten thousand persons, the department shall cooperate with the county or counties in which the land to be leased is located in considering the intended uses. if the proposed lease is for the construction and conditional use of a wind farm as defined in section 30-301, the department shall cooperate with the cities and towns that are within twenty-five miles of the outer perimeter of the land to be leased in considering the intended uses. The leases shall be granted in accordance with the Constitution of Arizona, state laws and the rules of the department.

B. If the department determines that leasing of the land is in the best interest of the state, the tract or tracts shall be offered for lease to the highest and best bidder.

C. Each offer for lease shall reserve the right in the department to reject any and all bids and to again offer the tract or tracts for lease if the bids received are not acceptable to the department.

D. Upon On announcement of the successful bidder, the first year's annual rental shall be paid by cashier's check. The successful bidder shall also pay the cost of the publication and reasonable expenses of the sale, and such funds monies shall be subject to the provisions of section 37-107. If there are bids exceeding the minimum bid accepted at the auction, the successful bidder has until 5:00 p.m. of the fifth business day following the date of the auction to deposit a cashier's check with the department for the amount exceeding the minimum bid for the first year's rent. The failure to pay the first year's rent at the time of the auction or to pay the amount exceeding the minimum bid by 5:00 p.m. on the fifth business day after the auction results in forfeiture of the lease and all monies paid. In the event of forfeiture, the commissioner may declare that the bid placed before the final bid accepted is the highest bid, and that bidder has five business days after notification by the department to pay by cashier's check all amounts due under this section and section 37-107.

E. Before acceptance of any bid for a lease under this section, the department shall establish to its satisfaction the responsibility of the bidder.

F. Each lease shall be for a term in excess of ten years, but not more than ninety-nine years, as determined by the department, and shall provide for an annual rental of not less than the appraised fair market rental value of the land. The department shall establish a rental adjustment formula by which the rental provided for in the lease is subject to adjustment after periods of time specified in the lease. A period of time shall not exceed five years. The department shall include a rental adjustment formula in each lease. The rental for the first five-year period and the rental adjustment formula for that lease shall be established by the department prior to before the call for bids. The department shall publish in the call for bids the rental for the first period and the rental adjustment formula for that lease.

G. A lease issued under this section may include an amortization schedule to be used to determine the value of improvements when the lease is terminated.

H. All provisions of this title applicable to state lands and the lease thereof, not in conflict with the provisions of this section, shall apply to leasing and leases issued under this section.

I. The department shall require an applicant to pay a deposit before beginning to process an application to lease state trust lands if the applicant did not bid at an auction where the applicant initiated the process. The deposit shall be based on the approximate first year rental plus administrative expenses and shall be deposited in a noninterest bearing account. Monies must be deposited at the time of filing an application or at a time determined by the commissioner. If the applicant is not the successful bidder at public auction, the department shall refund the deposit to the applicant. If the applicant is the successful bidder, the department shall apply the deposit to the rental price at auction. If there are no bids at the time of the auction, the department shall transfer the deposit made by the applicant to the appropriate trust beneficiary. END_STATUTE

Sec. 6. Section 37-286, Arizona Revised Statutes, is amended to read:

START_STATUTE37-286. Execution of leases by department; covenants; assignment of lease by lessee

A. Leases shall be signed by the commissioner and sealed with the seal of the state land department, and shall contain covenants that the lessee will not permit allow any loss, cause any waste in or upon on the land, or cut, waste or allow to be cut or wasted, any timber or standing trees thereon without written consent of the department, except for fuel for domestic uses, or for necessary improvements on the land, and that the lessee will surrender peaceable possession of the lands at the expiration of the lease. Nothing in This section shall be construed to permit does not allow the cutting of saw timber for any purpose without the written consent of the department.

b. IF THE LESSEE IS THE OWNER OF A WIND FARM as defined in section 30-301, both of the following apply:

1. THE STATE LAND LEASE OR RIGHT-OF-WAY LEASE SHALL INCORPORATE BY REFERENCE ALL REQUIREMENTS SET FORTH IN THE construction and CONDITIONAL USE PERMITs ISSUED BY THE COUNTY IN WHICH THE WIND FARM IS LOCATED.

2. IN ADDITION TO THE REQUIREMENTS of section 11-882, THE LEase SHALL include a RESTORATION SECURITY INSTRUMENT APPROVED BY THE DEPARtMENT SUFFICIENT TO COVER THE COSTS OF REGRADING, REVEGETATION AND LABOR TO FULLY RESTORE THE leased LAND TO ITS ORIGINAL CONDITION, INCLUDING MEASURES NECESSARY TO ADDRESS ECOLOGICAL AND VISUAL IMPACTS. THE RESTORATION SECURITY INSTRUMENT SHALL SPECIFY HOW STATE LANDS WILL BE RESTORED AND REVEGETATED. PROOF OF RECERTIFICATION OF THE SECURITY INSTRUMENT required by this paragraph SHALL BE SUBMITTED TO THE department ANNUALLY FOR THE LIFE OF THE WIND FARM.

B. c. A lessee of state lands who is not in default in rent, and who has kept and performed all the conditions of his the lessee's lease, may, with the written consent of the department, may assign the lease, but a lessee who assigns a holding lease shall pay to the department one-half of the consideration received for the assignment. END_STATUTE

Sec. 7. Section 37-301, Arizona Revised Statutes, is amended to read:

START_STATUTE37-301. Procedure for protesting auctions

A. Any person who desires to protest any of the terms of a proposed auction for the sale of state land, the lease of state land, or the sale of natural products of state land shall file a written protest with the department within thirty days after the first day of publication of the terms of the proposed auction. All protests shall state specifically the term or terms of the auction to which objection is made and state specifically the reasons for each objection. An objection not specifically stated or timely made is deemed to be waived.

B. At his the commissioner's discretion, the commissioner, on ten days' notice, may order a hearing on any protest. Whether or not a hearing is held, the commissioner, not less than seven days before the auction date, shall enter a final order determining the validity of the protests. If the commissioner determines that a protest is correct, the pending auction shall be cancelled. If the commissioner determines that the grounds of protest are incorrect, the auction shall proceed at the time and place for which it was noticed.

C. Notwithstanding section 37-133, the commissioner's order granting or denying a protest is subject to review only through a special action to the court of appeals or supreme court, served on the department within twenty days after the commissioner's order is entered. Notwithstanding any law or rule applicable to other orders of the commissioner, no a motion for rehearing is not required before seeking review of an order of the commissioner rejecting a protest to the terms of an auction. Any rehearing motion shall be filed within ten days of after the entry of the commissioner's order. Unless otherwise ordered by the commissioner, the filing of a motion for rehearing does not extend the time for seeking review of the commissioner's order granting or denying a protest. Unless the commissioner orders a rehearing within five days after the rehearing motion is filed, the rehearing motion is deemed denied. If a special action review is not sought within twenty days after the commissioner enters his the commissioner's order granting or denying a protest, or if the commissioner's order is sustained on special action review and the decision becomes final, no further action contesting the legality of the terms of the auction may not be brought.

d. any person who resides within twelve miles of a proposed auction of state land for the construction and conditional use of a wind farm as defined in section 30-301 has standing to protest the proposed auction. END_STATUTE

Sec. 8. Heading change

The article heading of title 37, chapter 2, article 10, Arizona Revised Statutes, is changed from "RIGHTS OF WAY AND SITES FOR PUBLIC USES" to "RIGHTS-OF-WAY AND SITES FOR PUBLIC USES".

Sec. 9. Section 37-461, Arizona Revised Statutes, is amended to read:

START_STATUTE37-461. Grants of rights-of-way and sites for public uses

A. The department may grant rights-of-way for any purpose it deems necessary, and sites for reservoirs, dams and power or irrigation plants, or other purposes, on and over state lands, subject to terms and conditions the department imposes. The department may make rules respecting the granting and maintenance of such rights-of-way and sites.

B. The department may grant rights-of-way for transportation purposes to federal agencies, state agencies or political subdivisions of this state for nonexclusive uses for a term exceeding ten years without a public auction. If a grant of a right-of-way or site to any other entity amounts to the disposition of or conveys a perpetual right to use the surface of the land, the department shall grant the right-of-way or site at public auction to the highest and best bidder. if the grant of a right-of-way or site is for the construction and conditional use of a wind farm as defined in section 30-301, the department shall grant the rights-of-way or site at public auction to the highest and best bidder.

C. The department may grant rights-of-way to any person for nonexclusive uses for a term of not more than fifty years without a public auction. END_STATUTE

Sec. 10. Section 40-360.06, Arizona Revised Statutes, is amended to read:

START_STATUTE40-360.06. Factors to be considered in issuing a certificate of environmental compatibility

A. The committee may approve or deny an application and may impose reasonable conditions on the issuance of a certificate of environmental compatibility. and In so, THE COMMITTEE doing shall consider the following factors as a basis for its action with respect to the suitability of either plant or transmission line siting plans:

1. Existing plans of this state, a local government and private entities for other developments at or in the vicinity of the proposed site.

2. Fish, wildlife and plant life and associated forms of life on which they are dependent.

3. Noise emission levels and interference with communication signals.

4. The proposed availability of the site to the public for recreational purposes, consistent with safety considerations and regulations.

5. Existing scenic areas, historic sites and structures or archaeological sites at or in the vicinity of the proposed site.

6. The total environment of the area.

7. The technical practicability of achieving a proposed objective and the previous experience with equipment and methods available for achieving a proposed objective.

8. The estimated cost of the facilities and site as proposed by the applicant and the estimated cost of the facilities and site as recommended by the committee, recognizing that any significant increase in costs represents a potential increase in the cost of electric energy to the customers or the applicant.

9. Any additional factors that require consideration under applicable federal and state laws pertaining to any such site.

B. The committee shall give special consideration to the protection of areas THAT ARE unique because of biological wealth or because they are habitats for rare and endangered species.

c. If the application is for the construction AND conditional use of a wind farm as defined in section 30-301, the committee shall consider the impact of the wind farm on the visual and aesthetic character of the area. The committee shall have the objective of preserving and protecting the natural qualities of the existing scenic areas, historic sites and districts of historical significance and structures and unique geologic features.

C. d. Notwithstanding any other provision of this article, the committee shall require in all certificates of environmental compatibility for facilities that the applicant comply with all applicable nuclear radiation standards and air and water pollution control standards and regulations, but shall not require either of the following:

1. Compliance with performance standards other than those established by the agency having primary jurisdiction over a particular pollution source.

2. That a contractor, subcontractor, material supplier or other person that is engaged in the construction, maintenance, repair or improvement of any project subject to approval of the commission negotiate, execute or otherwise become a party to any project labor agreement, neutrality agreement as defined in section 34-321, apprenticeship program participation or contribution agreement or other agreement with employees, employees' representatives or any labor organization as a condition of or a factor in the commission's approval of the project. This paragraph does not:

(a) Prohibit private parties from entering into individual collective bargaining relationships.

(b) Regulate or interfere with activity that is protected by law, including the national labor relations act.

D. e. Any certificate of environmental COMPATIBILITY that is granted by the committee shall be conditioned on compliance by the applicant with all applicable ordinances, master plans and regulations of the this state, a county or an incorporated city or town, except that the committee may grant a certificate of environmental COMPATIBILITY notwithstanding any such ordinance, master plan or regulation, exclusive of franchises, if the committee finds as a fact that compliance with such an ordinance, master plan or regulation is unreasonably restrictive and compliance therewith is not feasible in view of technology available. When If it becomes apparent to the chairman of the committee or to the hearing officer that an issue exists with respect to whether such an ordinance, master plan or regulation is unreasonably restrictive and compliance therewith is not feasible in view of technology available, the chairman or hearing officer shall promptly serve notice of such that fact by certified mail on the chief executive officer of the area of jurisdiction affected and, notwithstanding any provision of this article to the contrary, shall make such that area of jurisdiction a party to the proceedings on its request and shall give it an opportunity to respond on such that issue. END_STATUTE

Sec. 11. Wind farm health impacts study committee; membership; duties; report; delayed repeal

A. The wind farm health impacts study committee is established consisting of the following members:

1. Three members of the senate who are appointed by the president of the senate. Not more than two of the senate members may be members of the same political party. The president of the senate shall designate one of these members to serve as cochairperson of the committee.

2. Three members of the house of representatives who are appointed by the speaker of the house of representatives. Not more than two of the house of representatives members may be members of the same political party. The speaker of the house of representatives shall designate one of these members to serve as cochairperson of the committee.

3. The director of the department of health services or the director's designee.

4. The director of the department of environmental quality or the director's designee.

5. One faculty member from a medical research center of a university under the jurisdiction of the Arizona board of regents who is appointed by the president of the senate.

6. One licensed audiologist, physician or researcher who has experience or knowledge in infrasound and who is appointed by the speaker of the house of representatives.

7. One licensed physician, neurologist or mental health professional who has experience or knowledge in disorders of the brain and nervous system and who is appointed by the president of the senate.

8. One licensed endocrinologist, medical professional or researcher who has experience or knowledge in the health impacts of hormone imbalances and who is appointed by the speaker of the house of representatives.

9. One licensed cardiologist who is appointed by the president of the senate.

10. One engineer, scientist, acoustician or researcher who has experience or knowledge in sound waves, radio frequencies, vibrations and other impacts on human health that is caused by the transmission of sound and who is appointed by the speaker of the house of representatives.

B. Members of the wind farm health impacts study committee are not eligible to receive compensation.

C. The wind farm health impacts study committee shall study the following areas:

1. Reported impacts on the human body and human health from infrasound vibrations generated by wind turbines and their foundations through air, bedrock, soils, buildings and furnishings and their impact on the inner ear, nervous system, circulatory system, sleep patterns and other adverse health impacts.

2. Reported impacts on the human body and human health from electromagnetic frequency waves from towers, underground power lines and overhead transmission lines and other sources of waves, sounds, air turbulence and ground vibrations.

3. Other reported sources of health impacts, such as pressure wave effects, shadow ﬂicker phenomenon, blinking tower lights and audible noise effects of wind turbines.

4. The reported health and environmental impacts of the deterioration of wind turbine blades and other components, including:

(a) Air, water and soil contamination that can result from epoxies, ﬁberglass, glass microﬁbers and other materials released from weather-degraded, burning or decomposing or shredded wind turbine blades, including Bisphenol A and other toxins.

(b) The human health impact of Bisphenol A, petroleum products and other toxins leaching into the aquifers and groundwater of this state due to the disposal of wind turbine components, including their burial.

(c) The human health impact of contamination by Bisphenol A and other toxins to water, soil and plants on lands that provide food sources for human consumption.

(d) The human health impact of toxins released from burning blades, oils, greases and other components of wind turbines.

(e) The human health impact of toxins released from construction blasting residues on the air, soil and water supplies.

D. On or before November 15, 2025, the wind farm health impacts study committee shall submit a ﬁnal report regarding the committee's activities, ﬁndings and recommendations for legislation to the governor, the president of the senate and the speaker of the house of representatives and provide a copy of this report to the secretary of state.

E. This section is repealed from and after September 30, 2026.

Sec. 12. Retroactivity

This act applies retroactively to from and after December 31, 2024.